Report on nature of marketing and the marketing decisions

Assessment Title
Qualification Module Code and title

Advanced Diploma in Business HP6N 47: Marketing: An Introduction

Student ID Assessor’s Name

02000539 Mr. Chrishan Smith

Cohort Date Issued Submission Deadline

01st May 2020 04th June 2020

No. Learning Outcomes Task no

L01 Explain the nature of marketing and its importance in organisations

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L02 Explain marketing decisions for a product based and a service organisation

Learner Declaration

I certify that the work submitted for this Assessment is my own and research sources are
fully acknowledge.

Student Signature:………………………………… Date:02/06/2020

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Executive Summary

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Actually in the beginning of the report it explains the about the company (vision, Mission, Values of
the Products, Key characteristics of the marketing concept). The next task explains the company’s
micro and macro environment. The 3rd task explains why market research is important for the
organisation and how qualitative and quantitative data is collected. The 4 th task explain how the
organization is using the marketing mix theory (7Ps of marketing) within the organization. And the 5 th
task explains how the company is surviving during the covid 19 pandemic.

Content

1. Brief information about the organisation

2. Organisation’s micro and macro environment

3. Why market research is important for the organization

4. importance and benefits of market segmentation and targeting to the organisation and the

process that the organisation may use to segment and target the market

5. explanation of marketing theory

 product mix decisions

 channels of distribution
 pricing methods
 promotional mix
 the importance of people, process and physical evidence in the marketing of services

6. how the marketing mix responds to changing market conditions

Task 1

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 - An introduction that provides some brief information about the organisation you have chosen
and the key characteristics of the marketing concept

About Royal Ceramics Lanka PLC (Rocell)

Royal Ceramics Lanka PLC (Rocell), is a pioneer in the tile industry and is known as a trendsetter.
Rocell has now built world-class facilities for the manufacture of tiles and bathware, starting
operations in 1990, and has transformed itself into a holding company with interests extending its
presence along the value chain and in the plant, packaging, aluminium and finance industries.

Rocell Has been awarded a Bronze Award and Top Ten award in extra-large category of CNCI
Achievers’ award in 2018 and Gold award in the manufacturing sector for turnover above Rs. 5 Bn at
the Annual Report Awards Competition 2018. (Royal Ceramics Lanka PLC, 2019)

Vision of Rocell

To continue to be the leader in the surfacing industry locally and to enter and impact the global
market. (Royal Ceramics Lanka PLC, 2019)

Mission of Rocell

To offer state of the art surfacing solutions to both the home and commercial builders with products
and services that transcend the highest quality, ensuring customer satisfaction by matching all
expectations, growing the market by way of product innovation, thereby enhancing shareholder
wealth, developing our human resources to excelling latitudes such that Royal Ceramics exudes a
stance of excellence (Royal Ceramics Lanka PLC, 2019)

Values of the Products

 Style - Rocell is a brand which, across a range of inspirational products and concepts, defines
timeless beauty, elegance and functionality..
 Qulity – Rocells Production Process is endorsed under the ISO 9001:2015 Quality
Management System and ISO 14001:2015 Environmental standards for its continuous green
initiatives.
 Value – Costumers receives a quality product and receives a good after Service where most
of the other Bathwere companies do not provide.

Key characteristics of the marketing concept in Rocell

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  Innovate designs, textures and styles.
 Create products to meet consumer preferences
 Source high quality raw material from selective suppliers and own mining lands.
 Manufacture tiles and sanitary ware in 8 facilities.
 Drive product quality by conforming to best practices and stringent product testing.
 Products delivered though wide network of showrooms, dealers, distributors and franchisees.
 Engage with customers to understand needs and develop relationships.

(Royal Ceramics Lanka PLC, 2019)

Task 2

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 - An explanation of the organisation’s micro and macro environment

Macro Environment

The macro world has a big effect on our results. Several macro variables such as economic activity,
inflation, interest rates and Political policies affect both demand and profitability. We constantly track
shifts in our macro environment to evaluate potential risks and emerging opportunities.

Political environment Government Policies

 Interest rates and reserve ratios were
revised since April 2018 when the
standard lending rate (SLR) was
reduced to 8.5%.
 Average Weighted Lending Rate
(AWLR) continued to increase
throughout the year.
 Headline inflation (NCPI) declined to
0.4% in December 2018 compared to
7.1% in December 2017.
 Profitability was impacted by the
increase in corporate tax rate on export
revenue to 28% in 2018 from 12% last
year.

Economic Environment  Demand for tiles declined in local and

export markets.
 Consumers in local markets preferred
low-priced tiles imported from regional
counterparts.
 The US / China trade wars increased
opportunities in our key export markets.
 Exchange rate depreciation

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 Environmental Environment The environmental impacts of our
manufacturing processors include emissions,
effluents, solid waste and noise. These affect the
communities around their facilities. Several
measures are implemented to effectively
manage these adverse impacts to reduce
environmental risks and maintain harmonious
relationships with communities. Few initiatives
 Recycle and reuse solid waste
 Purification of water

Legal Environment  Report on other legal and regulatory

requirements
As required by section 163 (2) of the
Companies Act No. 07 of 2007, They
have obtained all the information and
explanations that were required for the
audit and, as far as appears from our
examination, proper accounting records
have been kept by the Company.

Technology Environment  They are constantly looking in to

integrate technology solutions in to
traditional agro practices. As a result of
that electronic weighing was introduced
to all our factories during the last year.

(Royal Ceramics Lanka PLC, 2019)

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 Micro Environment

Stakeholder Method of engagement Concerns Managing Concerns

Costomers • Our own retail stores  Aesthetic appeal  Product quality

• Visits to large • Product quality certification
customers • Price  Product quality
• Trade Exhibitions & • Availability assurance
Fairs • Accessibility  processes
• Customer feedback  Driving cost efficiencies
 Managing price and
volume
 growth
 Island-wide presence
Influencers  Ongoing  Aesthetic appeal  Presence at trade
engagement  Range exhibitions and fairs
 with Sri Lanka  Product information  Discounts for registered
Institute of  Product quality architects and tile club
Architects  Price members
 Register of  Availability  Developing new designs
architects catering to design trends
 Tilers clubs  Product quality
 Discounts to certification and
architects and tilers assurance processes
 Managing price and
volume growth
 Island-wide presence

Franchisees,  Dedicated teams to  Incentives & Rewards  Advertising and

handle distribution  Customer demand marketing
Distributors &
networks  Marketing communications to
Dealers
 Regular communications create demand
assessments on  Logistics  Product innovation to
performance and  Support for growth drive customer demand
feedback  Dedicated teams to
 Annual support availability and
conferences product information

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  Capacity building
support
Investors  Quarterly Financial  Earnings & Dividends  Defended market
Statements  Growth prospects leadership
 Press Releases  Environment & Social  Implementation of
 Annual Report impact strategy

 Annual General  Governance  Enhanced manufacturing

Meeting  Share price and capacity

 CSE liquidity  Corporate governance

Announcements  Risk management

Employees  An open-door  Remuneration  Benchmarked

policy  Employee benefits remuneration and
 Formal  Conducive workplace benefits to industry
performance  Training & standards
appraisals, Development  Fair and transparent
 Regular meetings  Career progression performance appraisal
with unions system
 Communication of  Collective agreement
company renewals
performance  Employee engagement
initiatives
Suppliers  Supplier  Increased business  Established procurement
assessment and  Transparent processes
feedback procurement  Quality assurance
 Managing processes processes to provide
relationships  Timely payments constructive feedback
 Visits  Constructive feedback  Ensured timely
 Meetings payments

Regulators  Filing returns  Compliance with  Ongoing processes to

 Facilitating visits regulations ensure regulatory
 Timely filing of compliance
returns  Engaging with regulators
 Timely payments to seek clarification
 Providing feedback on
new regulations

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  Recruit from local  Employment  Recruit from
Community
communities where opportunities localcommunities where
skills are available  Socio economic possible
 Entertain progress  Provide opportunities for
grievances from  Environment related local entrepreneurs
community issues where possible
 Strategic  Support for  Managing environmental
philanthropy community needs impacts in compliance
with CEA requirements
 Engage in strategic
philanthropy
(Royal Ceramics Lanka PLC, 2019)

Task 3

- An explanation of why market research is important for the organisation, and two examples of
how the organisation could collect and use market research. The examples must include one
qualitative and one quantitative technique

Why market research is important for the organization

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Market research is important because it will help the organization to analyze the data of customers,
competitors, business environment, the latest market trends, economic shits and consumer buying
behavior. Even in rocell we can identify that they have done a market research.

Qualitative Data is collected through focus groups, in-depth interviews, and small scale surveys.

In Rocell:

 Customer satisfaction measured through surveys

 Sponsorships for flagship events (Architects mainly). This will help to generate leads and also
will help to promote the products among the architects
 Conducting training programmes to Aluminium Fabricators. This helps to promote the
products among the Aluminium Fabricators.

Quantitative Data is collected through focus large scale surveys, sales figures, and government
statistics.

In Rocell:

 Investing Rs. 76.5 mn in research and development.

 Launching a call centre enables customers to request a home visit by our showroom staff to
better understand their requirements. Through this the organization can identify the consumer
behavior.
 With 7.2 mn internet subscribers as at the end of 2018, they would look to deliver more
solutions to customers through innovative empowering solutions which complement their
network of showrooms and dealers.
 Empowering customers with mobile apps, allowing customers to generate digital images using
their selections with the app available on Android, iOS and Windows platforms

(Royal Ceramics Lanka PLC, 2019)

Task 4

- An explanation of the importance and benefits of market segmentation and targeting to the
organisation and the process that the organisation may use to segment and target the market.

Importance of market segmentation

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Companies will not survive if the marketing strategy is dependent upon targeting an entire mass
market. The importance of market segmentation is that it allows a business to precisely reach a
consumer with specific needs and wants. In the long run, this benefits the company because they are
able to use their corporate resources more effectively and make better strategic marketing decisions.
(Lombardo, n.d.)

According to research which I did online I found out that there are only two companies which
manufacture sanitary ware in Sri Lanka they are Rocell and OTTO Bathware. Which means rocell has
only one competitor. But OTTO Bathware is only manufacturing Budget sanitary ware and Rocell
Bath ware is manufacturing Luxury sanitary ware. But Rocell do have international competitors
(sanitary ware which are been imported) such as American Standards, Grohe, etc. But most of the
customers prefer buying Rocell Sanitary ware because they have a good customer care, easy to find
parts, and also a good after sales.

Benifits of market segmentation

 Better matching of customer needs

 Enhanced profits for business
 Better opportunities for growth
 Retain more customers
 Target marketing communications
 Gain share of the market segment

There are 4 Segmentation Variables they are

1. Geographic segmentation
2. Demographic segmentation
3. Psychographic segmentation
4. Behavioral segmentation

(Riley, 2010)

In Rocell:

Geographic segmentation  Rocell has (Local Market)

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 ▪ 58 Showrooms
▪ 58 Franchise showrooms
▪ 15 Factory outlets
▪ 8 Facilities
▪ 375 Dealers & Distributors
▪ 12 Consignment agents
 Rocell exports there products to 13
countries

Demographic segmentation  Mostly there products are for high-end

Commercial and residential perposes
 Rocell mainly targets the luxury
construction projects (small and large
scaled projects)

Psychographic segmentation  Producing high quality tiles and sanitary

ware catering to both the local market
and foreign market.
 Rocells product portfolio is upgraded
from time to time to meet the latest
consumer trends.
 Changes in designs, styles, and colours
are orchestrated by a team of designers
to enhance the aesthetic appeal of their
products.

Behavioral segmentation  Driving customer loyalty by providing

innovative and high -quality products
that suit latest consumer trends.
 Tilers training programmes (Organized
by Tilers clubs) Loyalty points
convertible into cash when purchasing
Rocell products.
 Discounts for registered architects
(Royal Ceramics Lanka PLC, 2019)

Target Market
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Identifying a target market helps your company develop effective marketing communication
strategies. A target market is a set of individuals sharing similar needs or characteristics that your
company hopes to serve. These individuals are usually the end users most likely to purchase your
product. (Hubbard, 2019)

In Rocell we can see that there main target market is Building constructors, Architects, people who
are building their own house, etc.

Task 5

- An explanation of marketing theory, supported by examples of the following:

A) Product mix decisions that the organisation has taken

 Rocell is a brand that defines timeless beauty, elegance and functionality, through a range of
inspiring products and concepts.
 Rocell has a 4 types of product types such as Bathware, Bathroom Accesaries, Tiles, and
Kitchen Accsaries. With over 100 designs.

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  After purchasing the clients get a good qulity product as well as a good after sale. And also
the do have verious tutorials how to Install their products and parts on there youtube
channel.

 Rocells product portfolio is upgraded from time to time to meet the latest consumer trends.
 Call Centre operated to provide customer support and handle customer complaints.

B) Place — how the organisation makes the product or service available to the customer, eg
channels of distribution

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  The launch of their call centre enabling customers to request a home visit by our showroom
staff to better understand their requirements is one example.
 They have a Design Hub (Concept Stores) ware it provides digital design facilities which
enable customers to visualize their design concepts prior to purchase.
 Rocell has 526 Distributional channels Island wide such as 58 Showrooms 58 Franchise
showrooms, 15 Factory outlets, 8 Facilities, 375 Dealers & Distributors, Consignment agents.
 Rocell exports there products to 13 countries.
 Customers could meet their Marketing staff in Exhibitions & Fairs.

(Royal Ceramics Lanka PLC, 2019)

C) The pricing methods used by the organization

 There are 2 pricing strategies that Rocell use, they are:

 Market Based Pricing strategy
 Cost based pricing strategy.
 The management of the company performs regular industry trend analyses to ensure that the
Company’s pricing structure is in line with the market and to ensure that projected harvest
volumes are consistent with the expected demand.
 The Company uses various valuation methodologies that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, maximizing
the use of relevant observable inputs and minimizing the use of unobservable inputs. (Royal
Ceramics Lanka PLC, 2019)

D) The organisation’s promotional mix

There are various ways that Rocell Promotes there products to the market. They are,

 They Mainly advertise on:

1. Print Media: - Newspapers and Magazines.

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2. Outdoor Advertising: - LED Screen Advertising and General Bill Boards

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3. Online advertising: - Website, SEO, Social Media
 Rocell uses Lots of social media Such as Facebook, Instagram, Linkdin and
Pinterest. Their Engagement on Social Media

Few E Advertisements are:

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 4. TV and Radio advertisements
5. Personal selling –
 Visits to large customers
 Participating in Trade Exhibitions & Fairs
6. Public Relationship

Rocell as use this method to promote their product as well as to build a good name in the
Society few examples are

 Fostering community relationships by initiating CSR projects

 Sponsoring Architects flagship events

E) The importance to the organisation of the role of people, process and physical evidence in
the marketing of products or services.

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Using these three intangible elements Rocell has efficiently value added to its tangible product. Rocell
a dynamic and multi-skilled team is instrumental in creating value and retaining their competitive
edge across six diverse sectors. Their manufacturing capabilities are driven by a team of 2,751
employees focused on developing innovative and high-quality products. These products are delivered
to customers through widespread and diverse retail channels supported by 742 employees. Given the
prominent role of employees in our value chain, nurturing and growing our talent pool enables value
creation. The strengths of their brand is quality and innovative designs. Their products have an
extreme aesthetic appeal designed by renowned architects in Italy. This is complemented with high
standards of quality and functionality. Our product portfolio is upgraded from time to time to meet the
latest consumer trends. Changes in designs, styles, and colors’ are orchestrated by a team of designers
to enhance the aesthetic appeal of our products. Rocell increased the range of complementary
products at the showroom to include sinks, kitchen cabinets, lights, laminated flooring, grout and
mortar to ensure that customers could find items that complemented our tiles, easing the pain of
having to mix and match from different stores providing a one-stop solution. (Royal Ceramics
Lanka PLC, 2019)

Task 6

- How the organisation’s marketing mix responds to changing market conditions

Actually the current Covid 19 Pandemic has affected the economy of Sri Lanka as well as the world.
But most of the organization are thriving to survive in the business world. Even Rocell is somehow
thriving this situation. Few examples are:

Price

 Rocell offered a huge discount for Rocell Tiles, Bathware & Accessories during the pandemic
Period

Place

 Most of the businesses sold their products by delivering their products to the door step after a
online purchase. But products like sanitary ware and tiles cannot be ordered online because the
products should checked, seen and approved by the customer before purchasing the product at
the store itself. Because of that they opened the outlets island wide when the curfew was lifted.

Promotion

 During the lockdown the main way of advertising is on social because most of the people were
at home because of that most of the people were active on social media. Even rocell mostly

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 advertise their products and promotions on Social media. Other than Social media they ran a
Radio campaign during the pandemic period

Product

 Actually the product quality and after sales were the same though the products were sold on a
low price.

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References
 Royal Ceramics Lanka PLC. (2019) Annual Report 2018/2019. Available at:
https://storage.googleapis.com/rocell_customer_web/report/annual_report/annual_report_201
8_2019.pdf (Accessed: 28 May 2020).
 Lombardo, J., n.d. [online] Study.com. Available at:
<https://study.com/academy/lesson/market-segmentation-why-market-segments-are-
important-to-marketers.html> [Accessed 27 May 2020].
 Hubbard, L., 2019. Why Is Identifying The Target Market So Important To A Company?.
[online] Small Business - Chron.com. Available at:
<https://smallbusiness.chron.com/identifying-target-market-important-company-76792.html>
[Accessed 27 May 2020].
 Riley, J., 2010. Q&A - Outline The Main Business Benefits From Market Segmentation |
Business | Tutor2u. [online] tutor2u. Available at: <https://www.tutor2u.net/business/blog/qa-
outline-the-main-business-benefits-from-market-segmentation> [Accessed 27 May 2020].

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