international marketing final pres

Séraqua Uniquely Attractive

Group Members Erika Vasiliauskyt� Aist� Žil�nait�, Neo Shi Jun

Marvin Schuster

EXPORT MARKETING PLAN

Li Yuefei Miguel Angel Exposito Aranda

Séraqua

PRESENTATION AGENDA

COMPANY OVERVIEW

ENVIRONMENTAL ANALYSIS

INDUSTRY/MARKET

ANALYSIS

COMPETITOR ANALYSIS

BRAND/ BRANDING

STRATEGIES

MARKET ENTRY STRATEGIES

FINANCIAL CONCERNS

IMPLEMENTATION TIMELINE

QUESTIONS & ANSWERS

BRAZIL PRODUCT, PLACE, PRICE & PROMOTION

COMPANY BACKGROUND

Séraqua

CREATIVE TILING

OVERVIEW

Specialized in custom-made and pre-fabricated ceramic tile mosaics

Operate from Riga, Latvia from Spring 2016.

Market relatively small but potentially very profitable

Strong competition in the industry

Competitive advantage: new robotic technology

Increase speed of production, quality and productivity

Lower production costs and proportion of defective products

KEY INFORMATION

COMPANY BACKGROUND

VISION

MISSION

CREATIVE TILING

To be the market leader for niche ceramic tile offering within south America and Baltic states

To deliver exclusive ceramic customized products for upscale corporations and individuals who value uniqueness, quality and good design

Séraqua

COMPANY BACKGROUND

COMPANY GOALS CREATIVE TILING

Financial strategic goalS To be financially stable and profitable as a business within the first 3 years of operation

To increase net profit by 5% annually

To reduce expenses by 5% annually

To achieve and maintain an outstanding customer service with below 5% complaints rate

CUSTOMER SERVICE strategic goalS

Introduce customer database and data management system to optimize operations,

reducing lag by 15% annually

Provide products and services globally and to cover beyond 5 markets within 5 years

of operation

Séraqua

COMPANY BACKGROUND

Séraqua

COMPANY GOALS CREATIVE TILING

OPERATIONAL strategic goalS To increase efficiency of business by 15% annually

on key operation metrics

To increase quality through new robotic technology and attach analytics metrics for

optimization within 12 months of operations

PRODUCT & MARKETING MANAGEMENT GOALS To introduce and apply excellence standards for all

products and gained key industry certifications within the first year of operations

To develop and implement a consistent promotional plan and optimize the promotional mix for the wealthy and upscale target markets and gained

niche market share in this market within the first 3 years of operation

Séraqua Séraqua

BRAND

Séraqua (Abstract & Descriptive)

CONSTRUCTION

VALUES Prestige, Quality, Aesthetics, Customization, Exclusivity & High Status

Uniquely Attractive ELEMENTS

Spanish, Turkey & Italian association, clean, sleek, blue tones denoting the brand value of fluidity and customization of the brand; features a vector heart shape with the construction of tile elements; signals customisation of needs, diversity of needs and different layers of consumer needs. *Protectable.

THE ENVIRONMENT

PESTLE ANALYSIS POLITICAL

ECONOMIC

SOCIAL

TECHNOLOGICAL

LEGAL

ENVIRONMENTAL

Séraqua

•  Challenged by widespread corruption scandal involving both the president and her key ministers

•  Current account stood at a deficit of 3.88% of GDP in 2014, increasing from 3.40% of GDP in 2013

•  Fall in export earnings and lower commodity prices also contributed to the widening

•  Political impasse over the passing of important bills

•  Total external debt stood at 15.0% of GDP in 2013, up marginally from 14.1% in 2012,

•  Total external debt was low compared to most emerging economies

•  Approximately 23.75% of Brazil's population is below 14 years of age and around 7.56% is above 65 years of age

•  Relatively young country, with a median age of 30.7 years in 2014

•  Proportion of people with secondary education and tertiary education has witnessed a sharp rise during 2003-12.

•  Mobile penetration stood at 138.19 per 100 people in 2014, with total subscribers at 275.67 million

•  Launched the BRL32.9 billion ($14.84 billion) Inova Empresa plan to boost productivity –ICT, agriculture and agribusiness, energy, oil and gas, defense, environmental sustainability, and health

•  Not performed well in product market regulation

•  Overall, Brazil is regulated to a greater extent than Colombia, Peru, South Africa and Russia

•  Country's pledge to check corruption under the OECD's anti-bribery convention - law imposes fines up to 20% of their turnover, or BRL 60m ($27.07 million)

•  Over 75% of Brazil's electricity comes from hydropower, making the nation one of the world's largest producers of hydroelectricity

•  CO2 emissions rose to 489.9 million metric tons in 2012, up from 475.4 in 2011

•  Rising CO2 emission is likely to hamper the country's efforts to reduce its carbon footprint

SWOT ANALYSIS

Séraqua

STRENGTHS WEAKNESSES

THREATS OPPORTUNITIES

•  New technology•  Fast production•  Higher quality •  Cheaper customization and production costs

•  Not daily product, has specific clients.•  Bigger marketing expenses•  High costs of technology•  Big costs of designing •  Expensive transportation •  Pixel-like structure of the final image, not very

clear lines

•  Not very competitive market•  Business to business and business to

consumer •  Huge market•  Full customization

•  Hard to reach target market •  Sensitive to economic downfalls •  Influenced by design trends *High

customization cost •  Non-possibility to demonstrate all designs in

full at the point of sale •  Narrow niche of the product

THE MARKET

BARRIERS TO ENTRY

Moderately High •  Reducing due to the development of high tech

products and greater ease of entry due to reduced corporate bureaucracy

•  Incumbents posed strong barriers – huge variety of products and strong brand presence both online and offline.

•  Considerable startup costs – cost of high tech equipment, building and raw materials

•  Lack of relative economies of scale and experience

•  High switching costs for the consumers

PORTER’S FIVE FORCES

SOUTH AMERICA’S Furniture and Floor coverings

Highly fragmented with a wide variety of retailers, ranging from small independent retailers

to large chain-stores.

Compound annual growth rate (CAGR) of 6% in recent years; this high growth may encourage new

entrants to the market and decrease competition.



NEW ENTRANTS 1 THREAT OF SUBSTITUTES

2 A lack of brand strength towards both retailers

and manufacturers means that it is relatively easy for new players

Established diversified retailers, such as supermarkets and department stores General

branding and the existing customer base of the retailer drive sales.

Little government regulation, which tends to focus mainly on health and safety issues regarding

materials and design.

MODERATELY STRONG

Go directly to manufacturers, where substantial savings can be made, thus attracting buyers

Second-hand products posed another threat

Networks such as the freecycle network, with over 9 million members worldwide, are also valid

substitutes.

MODERATE



BUYER POWER 3 SUPPLIER POWER 4 Substantially lowered as individual consumers

have little financial muscle and their large number means that retailers’ sales are hardly

affected by the loss of any individual consumer.

Buyers are more likely to shop around for the best deal, with a focus on price and quality

rather than brand loyalty.

Experiencing reduced demand and therefore harsh trading conditions.

Buyer power is further strengthened by negligible switching costs

MODERATE

Expertise required, backward integration by retailers into manufacturing is not common

Branding tends to be relatively unimportant to end-consumers, who are generally more concerned with

the quality, price and design of the product.

Lack of brand strength restricts the ability of manufacturers to dominate the market

STRONG



DEGREE OF RIVALRY 5 Many players within the market are diversified

retailers, such as department stores or supermarkets, which are not critically reliant upon furniture and

floor coverings sales, thus easing rivalry.

Such larger retailers benefit from scale economies that enable them to negotiate better deals with suppliers

and therefore allow them to compete more heavily on price

High degree of product diversity in this market eases competition.

Exit barriers are relatively low

Rivalry is eased to a certain extent by good market growth that allows players to

increase their revenues without encroaching on other players’ market share

MODERATE

THE COMPETITION

KEY LOCAL COMPETITOR PORTOBELLO

Engaged in the manufacture and supply of ceramic and porcelain products.

Unglazed porcelain, glazed porcelain, floor, wall, mosaic tiles and special pieces.

Supplementary services for construction works material industry in and outside Brazil

Operates 16 production lines and exports its products to 60 countries in Europe, Asia, North

America, Oceania, the Middle East and Africa

The company recorded revenues of BRL834 million (approximately $388.8 million) in the fiscal

year ended December 2013

1

2

3

4

5

ProductsUnglazed tiles | Glazed

porcelain tiles | Floor tiles |Wall tiles |Mosaic tiles Séraqua

KEY LOCAL COMPETITOR PORTOBELLO

Tradeshows & CatalogsDigital marketing, New Media & Social Media

High tech products for market expansion Use of sales force equipped with high technology

products and selling methods

PROMOTION METHODS

DISTRIBUTED IN Portobello shop Multi-brand resale Engineering

1 2 3 4

1 2 3

Séraqua

THE BRANDING STRATEGY

THE CUSTOMERS

Séraqua TARGET CUSTOMERS

B2C FINAL CONSUMERS

1

Rich, Wealthy, Famous & The Powerful

B2B FINAL CONSUMERS Business for the rich,

powerful, famous customers such as

restaurants, spas, saunas, beauty and cosmetics etc

B2B INTERMEDIARIES Interior designing

houses, advertising and media agencies and

event planning agencies

2 3

THE CUSTOMERS

Séraqua

TARGET CUSTOMERS TARGET MARKET OBJECTIVES

To gain 0.53% market share for mosaic tiles (Séraqua) within Brazil by 2018

Increase the number of people who make a purchase while browsing our online store by 20%

Increase company sales by 20% by 2018

Increase the percentage of customers who rate service as "excellent" from 80% to 85% within 18 months

BRAND POSITIONING UNIQUE/KEY VALUE PROPOSITION

Séraqua

Cheaper and faster customization

POSITIONED AS Premium product for a premium price

Promoted as a niche product with selective distribution to increase the exclusiveness

Symbolic positioning- object of ego identification and self-image enhancement

1 2 3

BRANDING STRATEGIES Séraqua

Create key associations with other luxury products such as cars, condominiums, mansions, high fashion and certain celebrities.

CO- BRANDING Feature products in trade shows, furniture expos, celebrity

talkshows set and demo showcases

CELEBRITY ENDORSEMENT Celebrity-designed tiles up for auction and at the same time

showcase the unique customisation feature

CORPORATE SOCIAL RESPONSIBILITY Use of Brazil’s sports celebrities in soccer

Use high profile celebrities for charity auctions to increase the brand’s profile and gain brand positivity

THE PRODUCT

E N T R Y S T R AT E G Y

PRODUCT

P1. Large custom mosaics P2. Small custom mosaics

P3. Large pre-designed mosaics P4. Small pre-designed and pre-manufactured mosaic

UNIQUE VALUE PROPOSITIONS Higher Quality

Cheaper Customisation & Production Costs

Full Customisation

Universal Use

EXTRA PRODUCTS Light System & Special Lamps That Highlights Mosaic Pattern And Complements It

1 2 3 4

THE PRICE


$40/sf for 1" sintered glass to $100/sf for 3/8" Vitreous Glass, plus $50/sf for

panelization for backlighting

PRICE

Premium pricing strategySkimming pricing strategy

B2C

Promotional discount



PRICE


B2B

Quantity discountCumulative quantity discount



PRICE


B2B (INTERMEDIARIES)

Cash discountTrade discount

THE PLACE


PLACE exclusive and selective form of distribution

Will rely on only a few intermediaries for exclusive distribution

Set up on own stores in several of the major city center such as Brasilia and Sao Paolo for selective distribution in these channels for brand

building and to keep the exclusivity of the brand

CONSIDERED COMPANIES Fernanda Marques Architects

Studio Arthur Casas

João Mansur Architecture Design Art

1 2 3

CONTENT STRATEGY Ideas of prestige, power, status

PROMOTION

Advertise in conjunction sports celebrities and powerful business figures or business figures, with personal planes, high-end automobiles and high-end designer houses

Key influencers in art, media and entertainment

Feature customisation and celebrate individuality messages.

1

2

3 4

PROMOTIONAL APPROACHES

PROMOTION

State of the Art Showcase Room-Séraqua

Television Commercials

Interactive Digital Site

In-store Ipad Visualisers

Expo & Tradeshows Exclusive Lucky Draws

Loyalty Reward Programs/ Referral Membership Program

Sales Force Motivation – Commission And Monthly Recognition

Public Relations Media Stunt/ Sponsorship Programs (For Artists/ Exhibition)

Email Marketing/ SEO/ Google Display

1 2 3 4 5 6 7 8 9

AFTER SALES & SERVICE PROCESSES

PROMOTION

Showrooms And Sales Force

State Of The Art Decoration

Catalogues In Digital Formats And Visualization

Early Bird Promotion And Free Delivery

INSTALLATION , WARRANTY AND AFTER SALES 7 Years Warranty 1

1 2 3 4

THE FINANCES

THE FINANCES

Total Operating Costs for Year 1: 6,148,000 Total Operating Costs for Year 2:6,,332,440Total Operating Costs for Year 2: 6,522,413

EXPECTED COSTS

Total Revenue for Year 1: 13,960,000 Total Revenue for Year 2:14, 310, 000Total Revenue for Year 2: 14, 670,000

EXPECTED REVENUE

***Based on our three- year financial projection, we will be increasing our profit from $7,812,000 in 2016 to $8,147,587 in 2018, with a ROI of 30%

in Y1, 30% in Y2 and 20% in Y3..

THE FINANCES

BREAKEVEN POINT

THE SCHEDULE

TIMELINE – ENTRY YEAR

TRADE SHOWS AND EXPOS

TVC

In Store SALES FORCE WITH IPADS VISUALIZERS

CELEB ENDORSEMENT/ PR STUNT

REFERRAL PROGRAMS

Web Banners

Google Display Ads / SEO

Period 1 2 3 4

EMAIL MARKETING/ DIRECT SALES

INTERACTIVE WEBSITE

SALES FORCE MOTIVATION REWARDS

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