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Preface

Natural stone has always been valued as a material of great durability, aesthetic and permanence. The use of stones in construction was increasingly appreciated. In ancient Egypt the great pyramids of Giza and nearby Sphinx, were constructed of limestone more than 4,000 years ago. They are among the grandest monuments of humankind, and a testament to the durability of natural stones. Temple building made of natural stone continued through the rise of Roman civilizations, Ancient Greece and Ancient Anatolian civilizations.

During the past two centuries the use of stone in construction was limited to government buildings, large-scale public gathering places, and homes of the wealthy. The reason was that the same labor-intensive natural stone processing techniques used for previous centuries were still being practiced, and it made the use of stone exclusive because of its high cost. Nearly every train station in the urban centers of the world, every state capital in the United States and monuments of major significance, such as The Lincoln Memorial and Washington Monuments, were built of natural stone.

After it remained relatively unchanged for several hundred years, technology has dramatically changed the stone industry in the past 25 years. This technology has enabled producers to process natural stone into thin modules, reducing waste. Through improved delivery systems, they have decreased the cost of a material once considered very expensive to a level that the general public can now afford. Because of the combined advances in fabrication technology and transportation systems, natural stone types are introduced to the market each year. The exportation of new natural stone products from emerging markets such as China, India, and Southeast Asia is giving greater choices to architects, designers, contractors, and homeowners.

In the past few years the preference for marble rather than granite has been a constant in world stone market trends. While this preference is overall, the most popular materials seem to be a number of varieties distinctive for their esthetic features and especially for their color. The natural stone marketplace has been growing in the United States depending upon the growth of construction and renovation projects. After the installation of natural stones, they have to be taken care of by using cleaners to keep them shiny and stain removers to remove stains from the surface of the natural stones.

The natural stone market within the United States is rapidly growing. The import of natural stone amounted to more than $252 million in 1999 and more than $372 million in 2000. This is an increase of almost 48%. The United States is currently importing natural stone products from 52 different countries. Strong players are Italy, India, Brazil, Turkey and China.

I am always amazed at the beauty and luxury of natural stone products, especially marble. As a stone marketing associate, I like the product that I sell every day because it is natural and its beauty is unique and elegant. In the natural stone market place, I have realized construction, architectural and renovation projects are the lungs of natural stone industry. That means any natural stone company can allocate its resources to reach these segments as direct as possible by passing retail channels that can increase profitability. This observation and my expertise encouraged me to prepare this business plan of a natural stone marketing company for young entrepreneurs and direct marketers.

Based on in-depth market research, my objective is to make a detailed business plan to market natural stone products (marble, granite, limestone, slate) in tiles and slabs and natural stone care products to retail showrooms, contractors, fabricators, and architects (B-to-B). You have been reading publications about how to make a business plan. Now it is time to review a real business-to-business (B-to-B) plan. This business plan is a great example for you to prepare your own business plan. I will use direct marketing methods, customer loyalty programs and will implement high-quality customer service along with person-to-person direct selling techniques. The marketing channels will be integrated to give the same consistent message to the audience in order to increase customer retention and acquisition, which should bring high profitability and customer lifetime value.

The company name is Creative Sales & Trading, Inc. (D.B.A. Creative Marble Designs). The business plan will include an introduction, executive summary, detailed information of the products, production process, vision and mission statements, market overview, SWOT analysis, customer analysis, organizational structure, integrated marketing and sales plan, financial sheets, and projections.

There is fierce competition in the natural stone market as in any other marketplace. However, I strongly believe that a well-designed, well-developed, customer- centric business plan, with direct marketing methods, and its implementation can help differentiate the company in the marketplace, which can lead to higher customer lifetime value, better customer satisfaction, loyalty as well as better profitability.

Hasan Kursad Devecioglu

Brooklyn, New York

October 2004

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