Granite addresses the market through three business segments: industrial products, consumer products, and textile chemicals. Granite is a highly technical niche player who has developed strong alliances with distributors who have powerful channel relationships but lack manufacturing or product development capabilities.
The marketing strategy assumes that Granite will serve these distributors in three ways:
- Toll Manufacturers, customer provides the raw materials and the formulation and we mix to their specifications.
- Custom Manufacturers, customers may provide materials but Granite provides the formulation and the processes.
- Trade Supplier, Granite develops and sells their own lines of products based on industry and customer needs.
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Granite Industries' mission is to provide the highest quality, lowest cost specialty chemicals for the chemical industry. We exist to attract and maintain customers. With the strict adherence to this maxim and scrutinized financial controls, success will be ensured. Our products will exceed the expectations of our customers.
- Maintain, steady, sustainable growth each quarter.
- Continue to increase market penetration by 1.5% per quarter.
- Increase brand awareness of Granite and its superior products and service.
- Never decrease research and development relative to sales levels.
- Continue to generate manufacturing efficiencies, helping expand the profit margin.
- Attempt to decrease overhead costs as a percentage of revenue.
Our market is divided into three segments:
- Industrial Products: In this segment our customers include Customer B, Customer D and Distributor A.
- Consumer Products: Handled primarily through distributors.
- Textile Products: Customers are: Customer E, Customer C, Customer F and Customer G.
- Customer E. This family of companies are manufacturers and distributors of textile specialty chemicals. Sales to them are estimated to grow to $250,000.
- Customer A. A marketing and chemical broker company. Granite provides product and process development and manufacturing services. They are the agent for Creatine Monohydrate, Kelate CU, and Melasyn 100. The potential here is over $2 million in sales.
- Broker A. A marketing company and chemical broker. We process ion exchange resins and purified Flavoring Product A for them. Granite can anticipate $200 to $300,000 in sales to them per year.
- Distributor A. A marketing company. They specialize in cosmetic and personal care products. They are the distributors of Kelate Cu, Melasyn 100, and Provitamin B-5, all of which Granite produces for them.
- Customer B. Granite produces corrosion inhibitors for this manufacturer.
- Customer C. The world's largest supplier of industrial buffing pads. Granite has developed special coatings for them which have been approved and recommended to their worldwide subsidiaries.
- Customer D. Manufacturers and distributors of ion exchange resins. Granite provides both custom and toll manufacturing processes for them. Custom and toll manufacturers are two types of distributors that Granite serves. A custom manufacturer may provide the materials for Granite to use the formula and processes on. A toll manufacturer provides their own materials and formulation for Granite to mix the product.
Note: Other company names and financial information has been removed from this sample plan to protect confidential and proprietary information.
Granite Industries will position themselves as a premier niche chemical manufacturer for the chemical industry. This positioning will be achieved by leveraging Granite's competitive edge is in the formulations and manufacturing processes that has been developed for the production of the seven specialized products. This has created a sustainable competitive advantage relative to the other industry participants.
The single objective that Granite faces is to position themselves as the premier niche chemical supplier, continually increasing market share. The market strategy will seek to generate brand awareness and build the customer base.
The message that Granite Industries will seek to communicate is that they are the highest quality, most customer service orientated specialty chemical supplier in the industry. This message will be communicated through several methods:
- Advertisements- They will be placed in trade journals.
- Networking/ Lobbying- It takes significant effort and contacts to generate large, long term contracts.
- Trade show participation- These activities could be grouped under the networking/lobbying, however they will be separated in order to more accurately highlight the expenses.
Granite Industries' marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service.
- Pricing- The pricing structures are totally flexible, ranging from per unit costs, to developmental costs, to futures.
- Distribution- Granite's products can be distributed anywhere.
- Advertising and Promotion- Several different strategies will be undertaken to accomplish the advertising and promotion goals.
- Customer Service- Superior customer service is imperative. Several non-industry companies, such as L.L. Bean, Northstroms, and Siemens will be benchmarked to achieve this lofty but necessary goal.
Throughout Granite Industries existence, there has been an ongoing campaign to collect market research. Granite has dedicated one full time employee and three graduate student interns to collect valuable market research.
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