Muhammad Abrar Naeem
ID # 081134-061
Marketing Plan of Maple Leaf Cement
The Kohinoor Maple Leaf is a reputable and leading manufacturer of textiles and cement. KMLG comprises of Kohinoor Textile Mills Limited (KTML) and Maple Leaf Cement Factory Limited (MLCF). Both companies are incorporated in Pakistan and are listed on three stock exchanges if the country.
Maple Leaf Cement is the third largest cement factory in Pakistan. It was setup in 1956 as a joint collaboration between the West Pakistan Industrial Development Corporation and the government of Canada. It is strategically located at Daudkhel (District Mianwali), which is an area rich in raw materials required for the production of cement. Kohinoor acquired the ownership and management of maple Leaf Cement under the privatization policy of the government of Pakistan in 1992. Presently Kohinoor Textile Mills is the holding company for Maple Leaf Cement.
A. The Marketing Environment
There are almost 27 cement Manufacturers in the market , some of them are Askari Cement , Bestway Cement , Cherat Cement , Dandot Cement ,Dewan Hattar Cement , DG Khan Cement , Fauji Cement , Fecto Cement , Gharibwal Cement , Kohat Cement , Lucky Cement , Mustehkum Cement , Pakistan Cement , Pioneer Cement , Zaman Cement , Rohri Cement , Al-Abbas Cement , Attock Cement, Dewan Cement , Javedan Cement , Thatta cement , Zeal Pak Cement .
The major competitors of Maple Leaf Cement are Lucky Cement, Askari Cement, Bestway Cement, DG Cement and Pioneer Cement. The Strength of Lucky Cement is its largest capacity and better coverage because of its two plants; one is Pezu and the other in Karachi. It is the largest manufacturer and exporter in Pakistan. It is the only competitor of Maple Leaf in terms of production capacity. Low quality is its major weakness and it has not many product types as compare to maple leaf cement and cannot cover the maximum market. Askari cement has most coverage in the Punjab and NWFP; it is only available in the northern part of Pakistan. Bestway Cement has latest technologies for its quality assurance and most of its product is exported to India. It has fewer products as compare to maple leaf cement. DG cement has maximum market at southern Punjab and
northern sindh and is mostly used in these areas. It has also very few products. The competitors are trying to compete in the market by increasing their production capacity, and Lucky Cement is the main competitor in terms of Production Capacity. As we change the marketing mix, or increase the marketing mix, our major competitors will also try to compete with us. There will be effect on the price, if we change the price of our product, the competitors will also change their prices according to us. Maple leaf has a strong brand name due to its quality products, so there is no problem in the promotion and place for the market mix.
Pakistan, with a population of about 16 million people has undergone a remarkable macro economic growth during the last few years but the main and the core problems of the economy are still unsolved. Inflation is one of the core problems. The inflation in the year 2008 has recorded to be the highest according to the Federal Bureau of Statistic. In April 2008, the Pakistan inflation accelerated at its fast pace and the inflation is still increasing. The consumers are mostly pessimistic about the economic conditions of the country as the economy is going in downward direction these days. As the prices of the cement of all competitors remain almost the same with a very minor difference, so the consumers will prefer for the quality of the products.
Market for cement in Pakistan exists in two main dimensions: 1. Product type
2. Geographic area
Since cement is a specialized product, it...