Brief Ytong Advertising Jan 2011

8/12/2019 Brief Ytong Advertising Jan 2011

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Marius DragneMarketing Manager

Xella RO SRL

Briefing

Ytong 2011

Integrated concept 2011

UPS headline

Layout design

Media channels

Promotional mechanism


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Marius Dragne Xella RO Jan-11 2

CONFIDENTIAL DOCUMENT!


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Contents

1. General Overview

1.1 Xella International at a glance

1.2 Xella in Romania

1.3Ytong brand positioning

1.4Ytong in Romania

2. Current situation

3. Project plan3.1 Communication focus

3.2Goals

3.3Objectives

3.4Target

4. Campaign mix5. Requirements

6. Expectations

7. Resources and timing


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Xella RO SRL

1. General overview


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1.1 Xella International at a glance

Xella International is a leading manufacturer and provider of building materials and raw materials.

Owners of Xella Group since 2008 are PAI Partners & Goldman Sachs

As the world's largest manufacturer of autoclaved aerated concrete (AAC) and calcium silicateunits (CSU), the company stands for innovation and premium quality in products and services.

The company has around 7,900 employees in more than 30 countries (Europe, China, US, Mexico)


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Aircrete

Calcium silicateblocks

Prefab aircretecomponents

Mineral insulationboards

Gypsum fibre boards

Fire protection boards

Cement-bondeddrywall panels

BUILDINGMATERIALS

DRY-LININGSYSTEMS

LIME

Lime

Limestone

The business units


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Strong brands for strong products

The Xella brands stand for high-quality,

customer-oriented solutions and superior products.


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1.2. Xella in Romania

The most modern AAC production facilityin Eastern Europe;

Greenfield investment: 32 million Euro;

Production capacity: ~ 400.000 m3

2009: 30 employees in Xella RO;

2010: 70 employees in Xella RO.

Ytong production facility - Paulesti, Prahova


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Ytong brand stand for high-quality, customer-oriented solutions and superior products.

Ytong IS THE INVENTOR

AND

PIONEER IN AAC.


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1.3. Ytong brand positioning

The power of saving energy

We are the worlds leadingmanufacturer of autoclavedaerated concrete and calciumsilicate units. We set the

benchmarks for energy-efficientconstruction and providesolutions that simply and reliablylead our customers to success.

Farsightedness*

We identify the central challenges forour industry and providecomprehensive and sustainableanswers to the demands for energyefficiency, ecology and innovation

Reliability

As a reliable provider we takeresponsibility for the quality of ourproducts and services

Simplicity

With a profound understanding of the

central needs of our customers, weenable target-oriented processes andsimple processing and application ofour products

* Addressing of topics with focus on farsightedness (e.g. climate,energy, ecology/environmental protection/sustainability,demography, communication, economic vitality and globalization)


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The best AAC quality on the market

Key message

Ytong building system is the modern way of building! Ytong AAC is the essence of building! Ytong building system makes the difference! Ytong is everywhere when something is built up!

Reasons why Ytong

Energy efficient building Building system Easy to achieve desired forms Very good heat insulation No need of additional heat insulation Complete solution with thin bed mortar. Fast&easy&cheap to build

Well known international brand International prove of quality


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Premium Quality Products

Thermal insulation

Fire resistance

Compressive strength

Dimensional accuracy

Light weight

Tongue and groove

Grip hold

Yellow ecological folio package

NO NEED FOR ADDITIONAL INSULATION!Xella is member of Energy Efficiency Export Initiative

1.4. Ytong in Romania


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exterior walls

Blocks for exterior walls

Monolithic walls: 300x200x600 / 375x200x600 (cm) Multilayer walls: 200x200x600 / 250x200x600 (cm)

Blocks for interior walls

100x200x600 / 125x200x600 / 150x200x600 / 175x200x600 (cm)

Block for renovation 50x200x600 / 75x200x600 (cm)

Wide product range

interior walls renovation


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Ytong Building Systems

Thin bed layer mortar

Professional tools

Technical support

Professional tools Mortar Technical support


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Residential buildings Commercial buildings Renovation

Ytong - main reference in construction, for over 80 years


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Xella RO SRL

2. Current situation


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LACK of education about quality inconstruction

Poor construction CULTURE, focused oncheap building materials

superior qualitycustomer-oriented solutions

international know-how

The

context

The

brand

Ytong in Romania is a product with limitedbrand AWARENESS!

Private Consumers skip the opportunity

to use Ytong and persist in buying localcheap AAC or BRICKS!

Ytong higher prices on m3

compared with allother competitors (aac and bricks)

Lack of tradition comparing with clay bricks

Constructors promote additional insulation tohouses, although better solutions exists

Very aggressive competitors, using only the

low price argument

Private consumers choose the low price,

without considering quality or long term cost

Dealers or bricklayers influence negative thebuyers, as possible motivation is receivedfrom other producers

Consumers are choosing construction materialwithout considering quality or long term cost

Additional insulation = additional income forconstructors + insulation covers low qualitymasonry execution

Bad rumors on regular AAC products [Ytongbelonging to AAC category]

Unreal image of Ytong, as poor quality,unhelthy, water absorbant, radioactive material


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SWOT analysis

Strengths

Premium quality products Well known international brand with

modern and reliable image Dimension accuracy Fire protection A1 Ecologic product Superior thermal properties

Lighter construction material Thin bed layer mortar Simple and fast handling Education program for bricklayers Right tools for the right products Technical and Sales support Product availability all over the country

Weaknesses

Lack of tradition in SFH comparing with

clay bricks Lower compressive strength then clay

bricks Less direct contact with the private

investors Monolithic wall new solution on the

market with low awareness


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SWOT analysis

Opportunities

Segment SFH will develop more in the next

period and is less affected by economicalcrisis

Obvious tendency to premium buildingmaterial

DIY market is growing Low quality of blocks from competitors.

Increasing demand of energy savingproducts

Growing energy prices

Threats

Global economic crisis Private investors compare price by m3 not

by finish wall Decrease of family income Less building permits Low quality building culture Large price discounts for masonry on the

market Bad execution because of not enough

skilled workers Cheaper and faster alternative house

constructions Wrong application (thin blocks for internal

wall) Additional options in the market for

renovation


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Locations Xella and competitors

Legend:

Ytong plant

AAC plant

Claybrick plant

VERBLOCK CELCO

ECOBLOCK

PREFAB

SOMACO

MACON SIMCOR

ELPRECO

SOCERAM

Ytong

SOCERAM

BRIKSTON

SICERAM

CARS

MACOFIL

WIENERBERGER

WIENERBERGER)

KRONBERGER

EUROPOROTON)

JIMBOLIAMACON SIMCOR

CEMACON

WIENERBERGER


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Trends Building Industry

Construction has been hit hard by economic crisis, registering a significant backdrop in 2009-2010

In 2009 construction materials market fell by 27%. The year 2010 is shaping a new overall decrease of ~25% but much pronounced in products used for structures and less at finishing and renovation products.

Main focus of EU / IMF funded investments is in civil engineering and infrastructure rather than building

construction

Constructions are expected to register a comeback after the economic crisis, as there is a real need forquality constructions in all sectors and a big demand for residential building units, but no sooner than

year 2012

Increasing interest by government in energy efficiency (requirements by EU) priority decree beginning

of 2009 to push forward terminal refurbishment of all apartment blocks

Building Industry

ResidentialConstruction

Lack of big residential projects in 2010, due to restrictive credits conditions and missing private capital

Financial restriction always leads to drop on the construction market and decrease in residentialconstructions will not cease in 2010-2011 either.

Black market will still develop

At the end of 2009 we recorded a dwelling stock of approx. 8.38 units. Approx. 55% of current housingstock is 33-70 years old, and 6% almost 70 years old.

Around 97 % of the housing stock is in private property. Housing stock is in a bad state of repair, a large

proportion is in need of renovation.

Reduction of average area of flats from 100 to less then 60 m

From autumn 2008 there is a lack of open sites for large projects

Most large projects are dependent on bank financing are and are in stand-by

Investors have begun to renegotiate contract terms with banks, builders and beneficiaries, as well asreviewing drafts of projects.

The residential market became the buyers market and not sellers and intermediaries and the price is

essential in negotiations.

Reducing costs is the key word. This will conduct to reduction / exclusion of intermediaries in theprocess, lower prices in construction, profits smaller than in the past.


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Overview of the product-market segments

1+ 2 family Multi family Residential

dwellings dwellings type

AAC 5 - 7,5 cm (thin blocks)

AAC 10 - 17,5 cm (inner wall)

AAC 20 - 25 cm (outer wall)

AAC 30 - 37,5 cm (monolithic wall)

Additional products (lintels, U shape, L s

Thin bed mortar & tools III

Renovation

Non-residential constructionMarket segment

Products Industrial

Residential construction

I-a

I-b

III

II

II

PMS Definition

I-aSingle family house (interior walls and multi-layer exterior walls)

I-bEnergy efficient Single family house (monolithic exterior walls)

IIBig projects (Apartment Building, Hotel, Commercial Building etc.)

IIIRenovation

1+ 2 family Multi family Residential

dwellings dwellings type

AAC 5 - 7,5 cm (thin blocks)

AAC 10 - 17,5 cm (inner wall)

AAC 20 - 25 cm (outer wall)

AAC 30 - 37,5 cm (monolithic wall)

Additional products (lintels, U shape, L s

Thin bed mortar & tools III

Renovation

Non-residential constructionMarket segment

Products Industrial

Residential construction

I-a

I-b

III

II

II

PMS Definition

I-aSingle family house (interior walls and multi-layer exterior walls)

I-bEnergy efficient Single family house (monolithic exterior walls)

IIBig projects (Apartment Building, Hotel, Commercial Building etc.)

IIIRenovation


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PMS 1Single layer wall in single family houses

Strategy in one sentence

Ytong is the best ready wall solution for single family houses

USP:

Modern solution for extreme energy performance

Benefits for consumers:

Ytong blocks are better insulation materials, for a healthy interior climate and savings ofcosts.

Simple and fast handling save time

Minimum energy consumption, 30% energy cost savings

Excellent fire protection

Very good heat insulation, no need of any additional insulation Complete solution, together with thin bed mortar save money and time

Tailored technical support

Well known international brand

International prove of quality


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Our vision in PMS 1

If you ask someone - Where do you want to live?

I want to live inYtong house!


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Why?

Ytong house gives me sense of warmth.

Energy Ytong Energy Ytong Energy Ytong Energy Ytong Energy Ytong Energy

Ytong Energy Ytong Energy Ytong Energy Ytong Energy Ytong Energy Ytong


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Practice example additional insulation

Damage due to fire on external wall with EPS insulation


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Damage due to humidity on the roofDamage due to humidity on a

wall with EPS insulation

Damage due to humidity on a

wall with mineral wool insulation


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Worm infestation/insect infestation also in expanded polystyrene

Insect infestation under the roof claddingWindow connectionFacade



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Ytong message:

CHEAP COSTS YOU MORE!

Oryou can build it withYtong and spend no extramoney and have no extraworries!

You can build your house with cheap

masonry and then have to:

use extra material to obtain straight

walls;

pay high sums of money for heat,

because the insulation is very poor etc.

In the end, you will see that, with Ytong, your house willactually have cost the same, if not less!


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Ytong goal:

Satisfied Ytong house owners


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Marius DragneMarketing ManagerXella RO SRL

3. Project plan


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Ytong IS THE INVENTOR AND PIONEER IN AAC.

Ytong QUALITY

Fire resistance

Compressive strength

Dimensional accuracy

Thermal insulation

Light weight

NF & GT

Folio & Pallets

Ytong SYSTEM

Thin bed mortar

Professional tools

Technical support

3.1 Communication focus

Energyefficiency

USPShort term

USPLong term


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3.2. Goals

Develop a clear communication action plan (advertising and/or promotionalmix) based on Ytong message, about how we can differentiate ourselves

from the local competitors and influence masonry acquisition process.

Become preferred by Romanian final Consumers!

REVELATION

to people!


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Main objectives

Boost sales of Ytong masonry!

Increase Ytong brand awareness

Establishment of market leadership with regard to energy efficient building envelope.

Gain market share from horizontal and vertical competition

Change habitsuse Ytong instead of a local AAC product

use Ytong instead of clay bricks & insulation

Active guerrilla marketing in relation with our competitors (especially innatural area of the factory)

Be prepared to answer to possible campaigns of competitors

Project objectives

3.3. Objectives


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3.4. Target groups

Type of

building

material

Supplier

Architects 30% 25%

Building material

wholesalers 0% 5%

Building companies 10% 20%

Private Investor 60% 50%

Total 100% 100%

Target group

Influence on the buying

decision in %

Private investorPrivate investor

Private investorPrivate investor


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4. Campaign mix


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As our main field of business is Single-family housesconcentrate the campaign to end-consumers (private person), while maintaining strong direct relations with specialists (architects,building companies).

Create a media mix on the basis of integrated communication be innovative and think out of thebox and the A 4-advertisement-page, according with the following:

Possibility for two communication flights

Possible media channels: print, online, viral marketing

Must have: online communication (big accent in relaunching www.xella.ro)

Because of budget limitation please exclude from proposal media channels like: TV, OOH

Must have

guerrilla marketing approach unconventional marketing activities, with direct target oncompetitors

Educational advertorials in printed magazines.


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5. Requirements


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Our requirements

Communication focused on natural area of Ytong plant

(located near Ploiesti city)

Powerful and creative ideas that build trust

Modern, appealing, with focus on main target segment

Provocative, Educative, Effective

Communication designed in a straight and clear manner

Must have:

Campaign ROI system to be included in final proposal, together with available evaluationtools

Ytong Private InvestorsIntegrate communication

Integrated concept


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Tone of communication

Effective

Provocative

Well balanced


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Requirements for possible layouts

Powerful creative idea that build trust and be simple & reliable for private investors

Modern, eye catching layout with focus on main target segment private investors

Provocative, Educative, Effective

Persuasive and believable: end-user to perceive Ytong as a true alternative in Single Family House

Create buzz and make use of word of mouth

Layout as per corporate design (please ask for CD manual, if not available)


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6. Expectations


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Ytong is becoming a well-known brand on the construction market in RO, therefore we want to:

Change consumers habits instead of buying a local AAC brand or clay bricks, buy Ytong for its recognizedgerman quality - the best AAC quality on the Romanian market; instead of using clay bricks+insulation it is more easy, cheaper and safe to use

Ytong blocks, without additional insulation.

Change attitudes Focus on Energy Efficient Building with Ytong Easy to achieve desired forms Support the products

Boost sales

Develop a modern event concept, appealing for end consumers using Integrate Communication

Consolidate the link between Ytong and opinion leaders (architects and constructors).

Immediate results

Long term results


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7. Resources and timing


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Please consider limited budget allocation, as per current market situation.

Budget limit: ~ 50.000 Euro (without VAT)

Please provide separate fee for:

1. Creative idea;2. Media buying.

Calendar and deadlines

Debriefing: 19-21 of January [please schedule your meeting until Tuesday, 18.01.2011]

Proposal presentation: 01-04 of February [invitation will be made by Xella]

The best proposals will be chosen, considering only the following ratio:

Note: Because of actual market situatie, the marketing budget can be revised during the year, withoutadditional penalties. All the activities already done at the moment of revision are subject of payment byXRO.

Resources and timing

creativity- simplicity - reliability - farsightedness -cost effective


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Thank you!

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Brief Ytong Advertising Jan 2011

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