MARKETING PLAN FOR

LUCKY CEMENT

Submitted by:

Abdur Rehman

Abdus Samad Shah

Submission Date:

December 9, 2019

Submitted To:
Sir Owais Mufti
Contact Person:
Mr. Zafar Ali Khan Marwat (Production manager LCF)

Contact# 03142135343
TABLE OF CONTENT
 Executive Summery
 Organizational History
 Organizational Operating Areas
 Market Analysis
 Current market situation
 Competitor Situation
 Distributors Situation
 Product Situation
 SWOT Analysis
 Goals and Objective of the firm
 Strategies
 Budget
 Feedback & Control System
 Conclusion

1
Executive Summery
The aim of this Marketing plan is to familiar with
the core concept of marketing management that
how business firms can run their business, how they
analyze the market and how they produce such
information which makes the firm well established
and organized. Different concept of Marketing
Management like company mission, market
analysis, goals and objectives and strategies etc. are
practically identified and at the last conclusion has
been derived from this marketing plan as well as
core suggestion is provided to the top management.

2
LUCKY CEMENT FACTORY (HISTORY & INTRODUCTION)

Lucky Cement Factory is incorporated in 1993;

Lucky Cement Limited stands as the flagship
company of Yunus Brothers Group (YBG). Lucky
Cement is one of the largest producers and leading
exporters of quality cement in Pakistan and is
listed on the Pakistan Stock Exchange (PSX). The
company has also issued Global Depository
Receipts (GDRs), listed and traded on the
Professional Securities Market of the London
Stock Exchange.
Over the years, the Company has grown
substantially and is expanding its business operations with production facilities at
strategic locations in Karachi to cater to the Southern regions and Pezu, Khyber
Pakhtunkhwa to furnish the Northern areas of the country. Lucky Cement is Pakistan’s
first company to export sizeable quantities of loose cement being the only cement
manufacturer to have its own loading and storage terminal at Karachi Port.
Lucky Cement strives to remain an efficient and low cost producer and is one of the
pioneers to introduce and install Waste Heat Recovery and
Refuse Derived Fuel (RDF) and Tyre Derived Fuel (TDF)
Plants in Pakistan. It also has self-sufficient Captive power
generation facility of 180 MW and supplies additionally
generated electricity to support the National grid. Lucky
Cement owns a fleet of Bulkers & Trailers, which gives
added advantage in terms of logistics and efficient deliveries
to all types of customers spread across the length and breadth
of the country.

3
 We strive to be a growth oriented company by identifying
opportunities, making the right investments, producing high
quality cement and using innovative technology to achieve cost
competitiveness and customer satisfaction. We endeavor to
harness the best human resources and providing them a level
playing field in achieving long term goals. We aim to deliver
sustained growth and enduring value to our stakeholders. We recognize our obligations
towards environment and corporate social responsibility and seek to mitigate any adverse
effects on our environment.

Ensure sustainable leadership position in Pakistan & increase

global footprint in the cement sector. Identify & capitalize on
diversification opportunities to maximize shareholders’ value
while remaining socially responsive in all spheres of operations.

4
GOALS AND OBJECTIVES

 The company main objective

is to achieve the highest level
of quality and their all
strategies are related with this
objective. The company is
quite successful in achieving
this objective, as they are
known for their quality in the
market.
 Company's second objective
is to increase their revenues
from international Sales.
 Company's another main
objective is product
development. Along with the
product Quality Company
largely emphasizes on the
development of the product.

5
COST OF PRODUCTION
Major costs in the production of our product are
as follow

Almost 49% of the cost consists of imported

coal which majorly influence our price level
company’s expert are always checking price of
coal and foreign currency level.

The company is moderately sensitive to the

foreign currency fluctuations. The management
constantly monitors the international coal prices
and exchange rates and takes necessary and
timely steps to mitigate such impacts.

6
National Market of Lucky Cement Factory

INTERNATIONAL MARKET OF LUCKY CEMENT FACTORY

Lucky Cement has made significant strides. We have acquired OPC-53 Grade
certification from Bureau of Indian Standards (BIS), enabling the Company to offer
additional variety to the Indian market. Further, with a high demand for our brands in
the Sri Lankan market, Lucky Cement recently opened its regional office in Colombo.
East African markets remain the stronghold of our Company and a major source for
foreign exchange earnings for the country.

7
 MARKET SITUATION:

Competitor’s Analysis

Following are the strongest competitors of Lucky cement Factory

 Attock Cement Pakistan

 Bestway Cement Limited
 Cherat Cement Company Limited-
 Fauji Cement Company Limited
 Kohat Cement Company Limited
 Maple Leaf Cement Factory Limited
 D.G.Khan Cement Limited
 Pioneer Cement Limited

Chart shows the production capacity of LCL and its competitors

Production Capacity
Attock Cement Pakistan

9.1% Bestway Cement Limited

15.0%

11.0% Cherat Cement Company

6.2% Limited-
Fauji Cement Company
Limited
8.9%
13.9%
Kohat Cement Company
Limited
Maple Leaf Cement
17.3% 10.5% Factory Limited

8.2% D.G.Khan Cement Limited

Pioneer Cement Limited

8
4 P’S OF MARKETING (MARKETING MIX)

To achieve marketing objective company needs to follow some marketing tools known as
marketing mix or 4 P’s of marketing which are

 Product
 Price
 Place
 Promotion

PRODUCT
Lucky cement factory doesn’t have so many products instead they are dealing with fewer
products includes;

Ordinary Portland cement (OPC),

Sulphate Resistant Cement (SRC)

And clinker

Details of these three products are given below

Ordinary Portland cement (OPC)

OPC has easy workability and lower heat of hydration. We maintain our technical
standard of quality parameter at high level and with high strength at all ages.

Product Specifications

Standard
Brand Compliance Strength Class Availability

1 Raj Cement PS-5313-2014 CEM II / 42,5N Local Market

2 Block Cement PS 5313:2014 CEM II / A-M Local Market

42,5N

9
3 Ordinary Portland PS-232-2008 ( R ) 53 Grade Local Market
Punjab Cement

4 Portland Cement EN 197-1 - CEM I 42,5N Local /Export

Market

5 Ordinary Portland- PS-232-2015 CEM I 42,5N Local /Export

Cement Lucky Star Market

6 Ordinary Portland- ASTM C 150 Type I Local /Export

Cement Market

7 Ordinary Portland- ASTM C 150 Type II Local /Export

Cement Market

8 Ordinary Portland- ASTM C 150 Type III A Local /Export

Cement Market

Sulphate Resistant Cement (SRC)

By maintaining C3A level within the specified limit of 3.5%, our Sulphate Resistant
Cement is more resistant to Sulphate attacks and is suitable for use in foundations near
seashore and canal linings.

Product Specifications

Strength
Brand Standard Compliance Class Market A

1 Sulphate Resistant ASTM C 150 Type V Local Market Cement

10
 2 Portland Cement EN 197-1 - CEM I SR3 42,5 N - SR3 Export Market

3 Sulphate Resistant BS 4027:1996 / PS-612- 42,5 N Local /Export

Cement 2014 Market

4 Sulphate Resistant SANS 50197-1 :2013 CEM I 42,5N Export Market

Cement

Clinker
We also offer clinker to the customers with their own grinding units. Clinker can be
easily handled by ordinary mineral handling equipment and can be stored for several
months without compromising on the quality. Clinker is the primary product in the
cement manufacturing process where limestone, clay and sand are grinded and heated,
before the gypsum is added to produce the final product of cement.

Packaging
Lucky cement factory not only focus on attraction of packaging but also they make the
packaging very strong enough to preserve and protect cement for longer time. Packaging
is made by using strong paper and well processing which increases the life of product
inside it.

11
Brands
Lucky cement factory have also some famous brands including,

 raj cement
 Lucky star
 Lucky Gold
 Block cement

Lucky Star Block Cement

Lucky Gold Raj Cement

12
Price
Due to the lowest cost of production than other competitor LCL prices are very low
therefore we stand second in the cement industry. Following are the price of LCL brands

Serial No. Brand Name Price (pkr)

1 Lucky Star 520

2 Raj Cement 530

3 Block Cement 530

4 Lucky Gold 570

Competitor’s Price
Here we will compare competitor’s price with LCL prices.

Company Name Price (pkr)

Attock Cement Pakistan 510

Bestway Cement Limited 535

Cherat Cement Company Limited- 520

Fauji Cement Company Limited 525

Kohat Cement Company Limited 535

Maple Leaf Cement Factory Limited 540

D.G.Khan Cement Limited 510

13
Promotion
LCL advertised its products through many different ways e.g. printing media, electronic media,
sign boards etc. Through TV, we have seen different advertisements of its products such as
Cement and clinker. LCL also advertise its products by targeting those favorable television
programs, like sports especially Cricket, talk shows etc.

Place
LCL has a very vast distributive teams, which main objective is to make LCL product
available at an arm’s length. Yunus brother is a direct distributor of Pepsi in Lahore and
Karachi.

 Abdul Ghafoor - Faisalabad

 Abdullah - Faisalabad
 Akram Sethi - Faisalabad
 Al Hamd Trading Co. - Karachi
 Athar Agencies - Karachi
 Badah Marketing - Karachi
 Cement House - Karachi
 Concrete Links - Karachi
 Haji Yousuf & Company (pvt.) L - Karachi
 M. Siddique Traders - Karachi
 Sameer Traders - Karachi
 Steel Agencies Corporation - Karachi
 Khawaja Traders - Rawalpindi
 Abdullah & Brothers - Quetta
 Karimi Enterprises (pvt) Ltd. - Peshawar
 Shams Puri Ltd. - Peshawar
 Arsel Enterprises - Lahore
 Bismillah Traders - Lahore
 Lahore Cement Corporation - Lahore

14
SWOT Analysis

STRENGTHS

 Strongest parent Company

LCL is part of Yunus Brother Group which is largest cement producer and
exporter of Pakistan

 Lowest Cost of Production

Due to high production our cost of production is very low compare to the
competitors

 Sharia Compliant Company

Lucky Cement factory is Sharia compliant company registered with Security and
Exchange Commission of Pakistan (SECP)

 Nation Wide Plants

Lucky Cement Factory has plants located in different areas of Pakistan which
gives access to the nationwide market and minimizes risk.
 Effective Distributors
Company has wide range of dealers and distributors in the country i.e. 200 dealers/
distributors
 Transportation system
LCL has its own bulkers and trailer which gives them advantage over competitor
in term of logistic cost and effective deliveries
 Diversity
Company has great diversified workforce from all over the country as well as
foreign experts, such diversity also play an important role in developing the
country
 Eco Friendly
LCL successfully demonstrated that their production doesn’t harms environment
and is ecofriendly machine and Process.

15
WEAKNESSES
Although Lucky Cement is one of the largest cement producer and exporter of Pakistan,
it has limited presence in certain markets. However, with the ongoing mega infrastructure
development projects under CPEC, Government’s planned initiative of providing 5
million low-cost houses and the planned construction of dams, the Company’s existing
plant in KPK province has become strategically located on the ‘western route’ which will
exceptionally improve its accessibility to the province of Punjab and Gilgit Baltistan in
the foreseeable short to medium term future.

OPPORTUNITY

 Outside growth
Neighbor country of Pakistan has largest demand for cement and which is one of the
opportunity for our company to increase export to its current market as well as
developing new market like exporting to Iran, UAE, and Saudi Arabia

 Positive demographic trend

Increasing population

Increasing income level

Increasing Urbanization

 CPEC
China–Pakistan Economic Corridor initiative presents a great opportunity for long-term
growth of the company

 Increasing Govt expenditure

Increasing governmental Expenditure on infrastructure like building dams, roads,
highways, bridges also increase demand for the cement in the country which is one of the
outside opportunity

16
  Favorable market dynamics
Devaluation of Pakistani money would increase the global and regional demand of
cement from Pakistan.

THREATS

 Increasing Input cost

Growing pressure on prices due to rising input costs on account of increase in coal and
other fuel prices coupled with devaluation of PKR versus other foreign currencies will
continue to put pressure on the growth of local sales volumes in the short-term. However,
growing export demand on the back of favorable market dynamics and PKR devaluation
is expected to substitute such slow-down in growth of local sales with growing export
volumes, thereby mitigating such risk.

 New entrance to the industry

Threat of new entrants in the industry may put some pressure on the Company, however
being the pioneer of Cement Industry LCL has a huge social and relationship capital
which significantly minimizes the threat

17
Recommendations:
Lucky Cement Limited is the largest manufacturing and export company in the
cement industry of Pakistan, since it is a market cum industry leader. It is financially
very strong and is owned by a mighty conglomerate cum diversified group of industrial
magnates, Yunus Brothers, having annual turnover of US$1.65 billion. LCL’s total
assets exceeded Pak Rs73 billion in 2015 with turnover exceeding Rs44 billion. It
enjoys the highest export market share and its domestic market share is around one fifth
of the total industry share. It possess the latest technology containing green technology
features, standardization certifications, alternate electricity generation system, its own
transportation, and warehousing facilities at Karachi Port Trust. Its products possess
very high quality, priced smartly through best cost or value strategy, enjoys a
dealership net of two hundred plus dealers across the country, and offers
promotions cum services to its customers, and maintains a bond of relationship
with its customers. It has earned several awards in recognition of its corporate
social responsibility (CSR), green initiatives, and operational excellence. Lucky
Cement is successfully attaining its financial and strategic goals. It is steering its
operations according to its vision and mission.

Apparently looking like a gigantic company, there appear some areas of improvements
for LCL, if it endeavors to overcome some of its weaknesses and menaces, it can perform
even better. It is encountering the menace of unstable regulatory policies and taxation
along with rising cost of doing business, which increase its business risk. Increasing
transportation, general, and administrative cost is another big challenge for it. It has
to re-strategize about its transportation system, since it owns it but it substantially
escalates its cost due to heavy maintenance and depreciation outlays, drivers’
remuneration, etc. It can think of bargaining with private transporters to close a suitable
deal. It is barely able to utilize 75% of its total production capacity; it needs to focus
on its marketing programs for efficient utilization of that surplus capacity. The
major threat faced by LCL is the price assault by its rivals whereas, LCL is
continuously focusing on cost cutting strategy in a bid to transfer this cost to their
customers in terms of offering them the best price. It has to be very conscious about its
rivals and unfair marketing strategies by some of them such as, selling adulterated
cement and offering hanky-panky or off-the-record discounts and deals to
distributors and dealers on the basis of sales tax refund claims or incentives from
the government against fake export claims. It also has to be conscious about indirect
competitors like building blocks manufacturing facilities cum pre-fabricated walls and
18
roofs’ manufacturing concerns. In order to stay as a market leader, it has to keep on
innovating its technologies, operations, processes, and systems, in a bid to bring
differentiation. It has to do extensive market research, garner market intelligence,
and regularly assess its internal and external environment. It needs to understand the
dynamics of consumer behavior; in nexus with its marketing strategy, it can consider
increasing its advertising budget to enhance consumers and customers’ exposure to its
brands. This way, it might be able to build a superior brand image and corporate
reputation for its long-haul sustainable growth, expansion, and maintenance of its
market leadership position. The marketing and business strategist at LCL can consider
critically thinking or answering all these concerns or questions.

19