Marketing Review and Analysis for Lava Contracting Company, Muscat

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This report provides a detailed marketing analysis of Lava Contracting Company (LCC), based in Muscat, focusing on their business model involving water-sensitive tiles imported from India. The study covers product analysis, pricing, industrial analysis (SWOT, PESTEL), segmentation, targeting, positioning, and the marketing mix. It examines the product launch program, pre- and post-launch marketing plans, and the significance of the Omani-Indian trade relationship. The report also explores the growth of the Indian tile industry, market drivers for ceramic tiles, regional analysis, and the impact of factors like urbanization, construction industry growth, and government policies on the demand for ceramic tiles in Muscat and India. It also touches on the global ceramic tile market, market drivers, and potential challenges like environmental regulations and carbon emissions.
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Table of Contents
Chapter 1 Introduction 1
Type chapter title (level 2) 2
Type chapter title (level 3) 3
Chapter 2 Analysis & contemporary theory 4
Type chapter title (level 2) 5
Type chapter title (level 3) 6
Chapter 3 Literature Review 4
Chapter 4 Conclusion and Recommendations 4
References 4
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Executive Summary
This study offers a detailed marketing review on the hypothetical business models of the Lava
Contracting organization based of Muscat with a layer of clear, hydro sensitive compound 'hydro
chrome' that is used as finished quality water-sensitive tiles to protect people from being harmed
by water sources. Lava contracting company importing the tiles from the top-rated Indian
companies for their business. The study contains an extensively specified product interview,
pricing policy, industrial analysis (SWOT, PETLEL), segmentation, targeting and positioning
techniques, marketing mix including (product, price, expenditure, promotion), product launch
programme of Lava contracting company, including pre-and after launch marketing plans. In
order to realize the enormous potential for trade and social cooperation between two nations,
Muscat and India reaffirmed their pledge to broaden trade relations and enable companies to
invest each other in one region. International relations among India and Muscat rose by 8.5% in
the year ended 31 March in the same year as in the previous year to 5.93 milliards US dollars,
according to the press statement released by the Indian consulate in Muscat. Exports to Moscow
from India is worth US$2.26b.
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Chapter 1
Introduction
LCC (Lava Contracting Company) is a prominent ceramic and porcelain firm, agents for big
corporations, internationally owned labels for ceramics, sanitation and glue products, best
manufactured worldwide, and also provides versatile and ease-friendly solutions to satisfy the
needs of our consumers. Besides meeting criteria in all areas of the Sultanate of Oman for the big
city and retail industries
LCC (Lava Contracting Company) has begun 2018 with a feeling of careful hope, and a deep
commitment to our Value Building Strategy continued. Our approach involves rebranding,
specification, product differentiation and organizational and development performance, and we
have managed to produce satisfactory results. While we still face difficulties on the regional
market and high price uncertainty, our core business growth has been steady, backed by sales in
Most of the world and India, as well as growth in our tableware and faucets.
Lava contracting company has made significant progress in improving our import tile sector
from India, and we are proud to report that we plan to invest in a state-of-the-art production
facility in Muscat. Because of the increased building and real property activities and the
favourable cost advantages for development due to competitive energy prices, we are hopeful for
further growth in Muscat. In India, the whole Indian industry continues to face pressure as a
result of the post-demonetization downturn, GST and RERA impacts. Our tableware division,
backed by profitable growth in Muscat markets, has shown strong demand and increased gross
profit. We have hit a forever high gross profit margin as our focus continued to be on cost
control and operating performance.
Several internal and external macro factors are looking forward to 2019 that will continue to
impact our sector. However, we concentrate on improving our brand and optimizing our Group-
wide operations while maintaining our large Muscat market share and importing tiles from India
to extend our LCC activities.
The Indian tile industry has seen a steady growth of 15% each year. In terms of the overall
output of tiles in countries of the world, India has been ranked on the top 3 list. The production
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of tiles from India is consistently rising annually due to so many developments in the Indian tile
industry. 4 of 10 companies come from India as defined in 2019 The Daily Records' list of the
Top 10 Best Floor Tile Companies in the world. In India, several tile factories export tiles to
different parts of the world because of an exclusive range of ceramic, vitrified tiles and other
typical tiles. In recent years India has become a very favoured destination for carton exporters
around the world because of the spate of growth. Lava contracts import tiles from leading Indian
companies for its business.
The Lava contracting company is of significance from documenting and establishing political
and trade ties among the Omani Indians since India represents a primary trade partner for Oman
and a strategic dimension for both countries' shared economic and investment interests. The
introduction of Islam, as Omanis contributed towards the propagation of Islam in India,
enhanced strong ties between the two countries. Ties between the two countries have long been
indicative of peace and stability. Recent history has improved these ties as India, and the Gulf
countries have fallen under European dominance, which has shared much between the two
regions and faced the same British policies that have promoted Omani-Indian contact and
smooth flow of trade and human movement between them.
The paper is divided into the following two themes: one deals with the relationship between the
princes of western Indian coastline Ahmad Bin Said Al-Bu Said, founder of al-Bu Said, from the
mid-18th century, when unique business, military and political collaboration marked the
relations. The second issue focusses on the trade and exchange of investment between the two
States showing the types of exchange of goods, services and products and the essence of the
investments during the Omani Renaissance, and also the contribution of Indian experience and
skills in economic and construction growth in the Omani region. The paper ends by suggesting
that economic and political relations between both countries be improved.
India's trading partnership with Muscat is one of the world's most developing markets for
ceramic tiles. The government's demand for residence and sanitation is driving the Indian
ceramic tile market, introducing planned products and service taxes and a favourable
demographic profile. The transition from large numbers of people to urban workplaces and
increased living standards fuels demand the country's construction industry. The market for
ceramic tiles is expected to grow, thus raising the demand for ceramic tiles. Strong demand for
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residential/non-residential ceramic tiles in India is projected to deliver market growth
opportunities. Due to the anti-slip and scratch resistance provided by the product, the rising
housing sector in India would trigger demand for the product.
In regions particularly India and Muscat, rapid growth in the construction industry will drive
demand for ceramic tiles over the projected period. The key drivers driving product use in the
area are government policies and infrastructure projects and demographics in the Asia Pacific
countries. Robust flooring market development is measured in order to ensure a beneficial
impact on product demand across the period. In the flooring industry, the commodity is
commonly used, primarily because of its strength, longevity and added-value aesthetic. It
reduces the cost of paints and coatings in walls efficiently. It also provides nominal after-
installation repair charges.
In the market, technical advances have launched high-quality goods with a close look. Various
makers of ceramic tiles now use inkjet manufacturing to satisfy customers' demand for aesthetic
tiles. However, with strict environmental restrictions and rising product prices, the global
demand for ceramic tiles could be hampered by 2025. by 2025. Furthermore, during the
processing process of the product carbon dioxide emissions are likely to impede the market for
the product. In regions such as Indian and Muscat, emissions of carbon dioxide from the
processing sector have declined because of the increased perception of global warming.
The flooring company in Muscat and India is expected to experience modest growth in recent
years because of tight government regulations and saturation in the construction industry. The
economic situation improving, the broader manufacturing base and the availability of services
are expected to retain a larger segment of the flooring industry over the projected timeframe in
the Asia Pacific. Ses factors are, however, projected to fuel ceramic tile demand during the
forecast period.
Increased use of marble, timber, stone and porcelain in residential buildings would likely pose a
danger to the market for goods in the coming years. The high prices of these floors are now
reducing and will begin to reduce the market's replacement hazard over the next years.
Ceramic Market Overview
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In 2020, the world's demand for ceramic tiles hit US$ 76 trillion. Ceramic tiles are manufactured
mostly of natural minerals, such as clay, silica powder, feldspar and dolomite. These tiles are
robust, give a high-temperature tolerance and can stand up to acidic or caustic chemicals
exposures. These tiles have been created as an alternative to hardwood, and other floor materials,
such as marble, concrete, etc. because of their aesthetic appearance and availability in different
patterns, textures, colours, types and sizes. These tiles are chosen for use in hospitals, hotels,
laboratory experiments, and medical institutions with the most outstanding value, along with
their lightweight anti-skid, anti-cereal properties. These qualities make them a necessity for
hygiene. IMARC Group expects modest growth in the global ceramic tile industry between 2020
and 2020.
Besides, low maintenance and high longevity lead to business growth. Floor carvings are the
world industry leader and will continue to dominate the prediction era. The floors are projected
to be the second-largest segment in 2016 and are expected to continue the same pattern over the
forecast years, whilst the floor tiles segment will be significant CAGR. The residential category
is expected to continue to rise over the review period across the different applications. The
increasing construction of residential infrastructure worldwide would dramatically contribute to
the segment's progress.
A tile is a substance manufactured specifically for the use of floors, towers, walls, showers and
other items. Tiles consist of glass, ceramics, metal and stones. Sand, clay and natural goods are
composed of tiles of ceramic. These carrels are made by moulding and then heating the raw
material in a stove at high temperatures according to wishes and type. The growth of the tiles
industry can be attributed, for example, because of their longevity and lower costs, to the rising
use of residential houses, hospital and laboratories. In emerging regions around the world, the
increasing industrialization and urbanization will improve the demand in the predicted
timeframe. During the forecast period, the global ceramic tile market should expand at a
promising CAGR. Moreover, the increased investments in infrastructural development
worldwide are projected to have a significant effect on market growth.
Besides, low maintenance and high longevity lead to business growth. Floor carvings are the
world industry leader and will continue to dominate the prediction era. The floors are projected
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to be the second-largest segment in 2016 and are expected to continue the same pattern over the
forecast years, whilst the floor tiles segment will be significant CAGR. The residential category
is expected to continue to rise over the review period across the different applications. The
increasing construction of residential infrastructure worldwide would dramatically contribute to
the segment's progress.
Ceramic Tiles Market Drivers
The Lava contracting company importing the tiles from India and such tiles has the
possible market drivers
1. Ceramic tiles are accessible in diverse glaze types from traditional to western. Ceramic
tiles are available. Their demand in recent years has been rising dramatically with
customers searching for trendy and cheaper flooring alternatives.
2. The creation of those tiles is an environmentally friendly operation since they are mostly
composed of natural minerals. Nevertheless, technical innovation recently allowed
factories during the manufacturing phase to further mitigate carbon emissions and other
hazardous gases.
3. New methods have been developed to allow manufacturers to create and distribute
Ceramic Tiles in various shapes, sizes or Textures, such as integrate spray dryers,
pressings and tile firings. And the advanced collection, storage, or control equipment.
4. Rapid industrialization and urbanization and inflating sales per capita, in particular in
developing economies like China, India, Brazil, and Russia, have led to a rise in the
market for high-quality flooring goods and expanded building operations in residential,
industrial and commercial areas.
Reginal analysis
The ceramic tiles market is divided into five areas, including India and Muscat, while Asia
Pacific is primarily involved and is projected to dominate the market, with a stimulating CAGR
over the forecast period. The rapid development of manufacturing and urbanization drives
ceramic tile growth in Asian Pacific developing countries. Besides, promoting public policy such
as tax rewards and subsidies in the region has brought many actors to the Asia Pacific, a lucrative
sector, in turn, boosting the market growth. Moreover, the presence of the most populous
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countries, such as Muscat and India, has boosted the construction industry, driving the market for
ceramic tiles in the petroleum and gas industries substantially.
In the ceramics tile industry, India is another dominant area. The rising construction industry in
the area contributes significantly to the market for ceramic tiles. The Muscat and Indian ceramic
tile industry are projected to see steady growth over the predicted years. In the forecast year, the
rising EU greenhouse emissions control policy led the market to sluggish expansion.
Segmentation analysis
The global demand for ceramic tiles is categorized into goods, raw materials and applications.
The industry is categorized into feldspar, kaolin, bentonite, silica powder, etc. based on raw
materials. The worldwide tile industry is categorized into ceramic wall tiles, ceramic floors, etc.,
based on the commodity. The global demand for ceramic tiles can be further segmented based on
the use in industrial, residential and other applications.
Challenges to the Tiles Market
Trafficking is not straightforward worldwide. If it is, it would be made by more individuals. As
the company go through this process, errors are likely to occur; however, to prevent a couple of
mistakes, do some research long before Lava contracting company starts importing from India.
Below the highlight several places with the most turbulence for foreign traders. Concentrate on
those trouble points and set about what we all long for — a bug-free experience in foreign
trading.
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Geography and transportation
The gap is one of the first import obstacles the Lava contracting company would have to
encounter. If the LCC intend on exporting Indian tiles products to a far-off country, the process
can be a little complicated. Primarily if the nation is situated on another continent and thus
another method can be used. Moreover, the longer the interval is, the more complicated the
movement is.
Lava Contracting company can also review the laws in these countries if Indian tiles products
have to transport or ship to many other countries to meet their destination. It helps prevent
difficulties and delays in delivery. Further, Indian tiles manufacturer may need to take a
substitute transport, for instance, a ship, instead of an aircraft, as the goods fly over the water or
the ocean. Prices also vary for various delivery methods.
Payment methods
The form of payment in foreign trade is significant. Some nations do not share the importer
country with the same tax structure. Moreover, when trading with these countries, the lava
contracting company will need support and assistance. There are also some foreign payment
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styles covering certain cases, but in all countries, they must be present. One such form of
payment can be reached in many forms, and the company LCC company can classify it with
sufficient examination. It would help if the LCC company also made a reasonable decision by
the accountant.
Remember the numerous currencies and the likely loss of capital along the way, so the manager
of the company should not waste the Lava contractor company money. Primarily if the trad
between Muscat and India based that not using euro or USD! It is significant! Note that exchange
rates adjust regularly, so when making a payment time is an essential consideration. Well-
connected with a trusted importer would make LCC and Indian tiles manufacturing work even
more straightforward and save the Lava contracting company from unforeseen problems.
Different legal norms
The legal systems (Indian and Muscat business) are critical when it comes to potential problems
with exporting products. It also means a particular country's security structure with which our
Lava contracting company choose to negotiate. It would help if the company LCC were kept
aware of government regulations on the protection of commodities, mainly when exporting food.
Any regulations can slow the process of export-import and cause problems for LCC and the local
importer. The biggest problems with imports and exports occur in one region or another from an
inadequate legal framework. For importing the tiles from India, the LCC company can only have
to advertise the products (the company of tiles manufacturing of India) or the amount you wish
to export. An excellent foreign trade lawyer will help the LCC company to solve these
challenges and build a good company.
Some nations have a complicated regulatory structure involving several papers and approvals. If
the Indian tiles manufacturing company sell for the first time to those countries, LCC company
will have to receive individual licences and permits. Although the bulk of these is a one-off
contract, some must be renovated. All depends on the structure the destination country has. The
Indian tiles manufacturing companies would need some export paperwork to get the goods to
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Muscat LCC company and be able to import them to another country apart from the
documentation the company need. All those papers will slow and even obstruct the export-import
process if the LCC company are unaware of the legal regulations. Therefore it would be essential
to get an expert.
Language barriers
When selling abroad, language differences can be a severe challenge. It may be lost in the
translation if the importer does not talk in the same language. In English, it is possible to use the
primary exchange language. However, several countries have no English as their national
language, which enables the importers to interact with the company via numerous translation
services. As long as the company LCC keep the words plain as standard as possible, the
company LCC still can make a bargain. When it comes to contact issues, finding an interpreter
will save the company from much trouble. Moreover, it is worth saving because when the
importer LCC company have much money, nobody wants confusion between importer which is
LCC and exporter India
The exporter and the importer company should employ an interpreter who knows the country of
residence's local language. However, still, with a nation using a particular language, the company
can find a more straightforward way to answer all this after this post, so importer and exporter
can keep reading! Nobody claims that foreign trading challenges are easy to solve, but they are
deserving of the excellent result LCC business in Muscat that has gained through this trade.
Experienced importers, though, know how to use English so that the company does not have any
difficulties. Moreover, if one of the company LCC importers, has a big concern, it could be a red
flag alone!
Finding the right exporter and importer
Visiting the right exporter and importer is probably most critical as a foreign trader. Company
essential companion will be a blessing or a curse for Company in the whole process. Be vigilant
always anytime Company plan to negotiate with an importer or someone else and do Compnayr
best to escape potential local scams. There is a chance of scams, but the Company can also deter
scams from happening in any country. A company lawyer will also support Company by
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