Daaboul Industrial Group: Adoption and Integrated Marketing Communication

Executive Summary

Integrated Marketing Communication (IMC) is a concept of management which is developed to make all different aspects of marketing tools like personal selling, advertising, sales promotion, public relations, and direct marketing act together as a single unified force instead of making them to work in isolation to each other. IMC involves the consistency of the message throughout the different media and thus can be regarded as more than just the coordination of what the company wishes to convey through different media.

IMC comprises an aggressive market plan which gathers and makes use of the customer information to a large extent in formulating and implementing marketing strategy. The possible objectives of sales promotion is the creation of awareness, stimulation of demand, identification of prospects, retaining the customers and combating the competition. Irrespective of the objective the promotional effort should capture the attention of the customers, create an interest in the product and the organization, generate a desire to buy the product and define an action to satisfy that desire (known as AIDA Model).

This is what IMC attempts to accomplish. With this background this paper envisages presenting a report on the introduction of integrated marketing communication techniques into Daaboul Industrial Group focusing on different aspects the IMC.

Introduction

Integrated Marketing Communication covers the outlook of the customers as how they perceive the whole process of marketing. IMC includes a perfect coordination of all the marketing activities both online and offline to result in a clear, unified, consistent and compelling customer-focused message about the organization and its products. In the process of gathering information, databases, internet, and other sources have provided the facility of gathering abundant information that is powerful rather very swiftly with a possible orientation more towards the segments than the mass market. “Instead of dividing communications into several overlapping departments, organizations use one strategy for everything, making every communication consistent with one message and one strategy.” (Paul Paquet)

4 Ps versus 4 Cs of Marketing

The concept of marketing has shifted form the traditionally advocated 4 Ps to four Cs from the customer perspective over the period.

• The first P is the ‘product’ which relates itself mainly to the ‘customer’. This implies the consideration of the needs and wants of the customer. A careful assessment of the features of the product or service and the extent to which they can satisfy the customer’s needs and wants. The gap in the fulfillment of the needs of the customer also needs an assessment for a possible improvement.
• The second P is the ‘price’ which relates more to the Cost to the customer – the perception of the customer with regard to the value of the product and the amount which they are willing to spend on the product.
• The third P is the ‘place’ or the distribution location which has shifted to more of ‘convenience’ to the customer. The point at which the products will be sold, the availability of distribution channels and the process of distribution need a careful study.
• The fourth P is the ‘promotion’ which implies the marketing communication to the customers. This requires a careful understanding of the customers and their perspectives. This also involves considering a series of communication mediums and their effectiveness in achieving the marketing goals of the organization. (Raul Danny Vargas)

Managing the Marketing Communication Process

The implementation of IMC involves the following steps to make it more effective:

Identification of Target Audience

The first important step involved in the implementation of the IMC is the identification of the target audience for the product. The involves a process of well-set marketing segmentation and targeting which again needs the conducting of an extensive primary and secondary market research. Market segments can be defined as those segments of the market or submarkets which expect the similar benefits from product usage and consist of consumers who are alike based on some characteristics. The target markets are those segments of markets, whose needs and demands an organization strives to serve and satisfy the customers therein.

Determination of the Objectives of Communications

The organization has to determine the broad objectives of communication which range from creation of an awareness to retaining the customer or combating the competition. This process also includes assessing the purchase intentions, attitude, beliefs and knowledge and awareness.

The determination of the communication objectives includes informing, persuading and reminding of the customers.

Designing the Content of the Message

This step forms the basis for making the marketing communication effective and therefore is an absolutely critical component in the process of implementing the technique of IMC. The effectiveness of messaging can either make the promotional effort a success or a failure. The AIDA model specifies attracting the attention, holding the interest, arousing the desire and obtaining the action of the customers. The following are some of the issues that are relevant are as follows:

• Content or Structure of Message – includes appeal, theme, idea or unique selling proposition that cover rational appeal, moral appeal and emotional appeal
• Format of Message – covering layout, wording and quality
• Source of Message – identifying who is delivering the message(Brian Rutherford)

In designing the message the principle of congruity needs to be applied in which the communicators use their good image to reduce the negative feelings towards a brand. This may result in loss of some esteem of the communicators in the process.

Selection of the Means of Communication

It is vitally important that the organization selects the particular kind of the medium of communication relevant to the segment and to the target customers. A wrong choice of means of communication may not produce the desired result. There are different options of means of communication available from which an appropriate one can be selected after considering the pros and cons of each one and its suitability.

Selection of the communication channels may revolve around personal communication channels and non-personal communication channels.

Defining the Marketing Media Mix, budget and Marketing Priorities

In the process of implementation of the IMC technique, defining the proper mix of the different media available plays an important role. Similarly the IMC should take into account the marketing budget and the priorities of marketing.

The marketing budget may be a top-down budgeting where the senior management decides the quantum of budget to be allocated to different segments or bottom–up budgeting where the managers of the subunits arrive at their requirements of budget amounts. Usually a combination of these budgeting methods is generally involved. There are the following different methods of budgeting:

• Affordable Method – based on the amounts that can be afforded
• Percentage of Sales Method – arrived as a percentage of sales
• Competitive – parity Method – aligning the parity of the amount of budget with the customers
• Objective- and- Task Method – defining the objectives and determining the tasks that should be undertaken to achieve the objectives

The communication methods involve the following mediums:

• Personal Selling – including sales presentations, sales meetings, incentive programs, samples, fairs and trade shows
• Advertising – is a means of non-personal communication the cost of which is put forth by an identified sponsor. Advertising involves either mass communication using newspapers, magazines, radio, television and other media or direct-to-consumer communication via direct mail. Advertising is done through print and broadcast ads, brochures, billboards, signs, point-of-purchase displays and symbols and logos.
• Public Relations – deals with non-customers including labor, public interest groups, stockholders and the government. Public relations include press kits, charitable donations, sponsorships, community relations, and events.
• Publicity – is another non-personal communication to mass audience but the public is not being directly sponsored by or paid for by the organization that enjoys the fruits of the publicity.
• Sales Promotion – consists of marketing actions that intend to lure the customers to make quick buying actions taken with a view to promoting immediate sales of a product. Sales promotion consists of contests, games, sweepstakes, sampling, fairs, trade shows, exhibits, coupons, and rebates.
• Direct Marketing – covers the direct communication between a seller and customer using any method of sales promotion other than face-face personal selling. Direct marketing includes catalogs, mailings, telemarketing, electronic shopping, TV shopping and Email.

Measurement of the Effectiveness of the Marketing Efforts

Unless a proper measurement of the marketing efforts taken is done the efficiency and effectiveness of the IC may not be assessed. This is important to make the necessary amends to the existing plans wherever deficiencies are found to make them more effective. The measurement of the marketing efforts should be an ongoing process. The criteria for measurement include:

• Product Revenues
• Marketing Expenses
• Resultant Customer response
• Outcome of the Marketing Efforts
• Market standing prior to and after implementation
• Reevaluation of the process starting from the initial step
• The possible changes in product life cycle
• The possible changes in the process of adoption by consumers and
• Push and Pull Strategies of marketing

Factors influencing the Selection of Communication Methods

The selection of a proper mix of communication methods is subject to a wide range of factors which include:

• Nature of the Market covering the market size, the geographical area and type of customers
• Nature of the Product being dealt with the organization including the complexity of the product
• The particular stage in the product life cycle
• Price range of the product as to whether the price is high or low
• The provision of funds available for sales promotional efforts

Adopting Integrated Marketing Communication in Daaboul Industrial Group

The adoption of an Integrated Marketing Communication technique in Daaboul Industrial Group takes the following process:

Daaboul Industrial Group – A Background

Daaboul Industrial Group (D.I.G.) is located in the suburb of Damascus, Syria. It occupies 250,000 sqm of a beautiful landscape with over 1500 employees. It is considered one of the largest private industrial groups in Syria. DIG is acutely interested in achieving high-quality products in aluminum & glass industrial fields, along with maintaining environmentally friendly industrial conditions.

Milestones

• 1975 DIG Started industrial and commercial activities, mainly in fabrication of aluminum architectural
• Products, under the name of “General Aluminum company “
• 1985 Foundation of Madar plant for producing aluminum-colored rolling shutters & strip ceilings. Later the factory was expanded to contain aluminum accessories, shower cabins, over bath screens, & ladders.
• 1993 Foundation of ” Madar Aluminum plant ” for extrusion, anodizing & powder coating, with 6000 to capacity that serves manufacturers of doors, windows and buildings fronts.
• 1997 Foundation of “Universal Tempered Glass co. (UTG) “for the processes of glass and production of double glazing units
• 2003 Foundation of “Madar Industries “, for producing extruded, anodized, & coated aluminum profiles and in addition, producing coated profiles with wood effect. The plant production capacity is 9000 tpy.
• 2005 Foundation of “Madar Coil Coating “plant for pre-painting coils. Production capacity is 33,000 tpy of aluminum or 70,000 tpy of Gisele, along with paint production plant, automated paint mixing System, coil slitting & embossing line, and cut to length line.
• 2006 Foundation of Madar Aluminum for decorative profiles with the production capacity of 3500 tpy
• The Group has advanced sections for die manufacturing & correction, a plant for machinery construction and spare parts fabrication
• Madar aluminum produces TECHNAL architectural systems under license from TECHNAL France, Madar aluminum is also the exclusive agent for ALUCOBOND composite panels produced by ALCAN Germany & (ALPOLIC Sheets – Japan) from Mitsubishi Chem Co., which are used in interior / exterior facades.
• In 1998 “Madar Aluminum” was the first Syrian company to be awarded the ISO 9001 certificate in the field of aluminum industries.

This paper focuses on the implementation of integrated marketing communication with respect to the three companies of Daaboul Group – Madar Aluminum, Universal Tempered Glass, and Sama Fabricating Company.

Madar Aluminum

This Plant is one of the largest and most important sections of the group.

Products: It produces aluminum profiles that are used in various architectural and industrial applications.

The process of the production starts with heating aluminum billets, imported by the group from the most prestigious companies in the field of primary aluminum production. The billets are then extruded in large press through dies that are designed and manufactured at Madar’s die shop. This results in producing profiles with different shapes as requested by the customers.

Currently, Madar contains more than 1300 different dies so as to meet the continuously increasing needs of the local and foreign markets.

The profiles coming out of the press are subjected to cooling, pulling, stretching, and sawing operation. Hence they are contained within an aging furnace to be provided with suitable hardness, homogeneity and electrical conductivity. All these processes are computerized.

It is worth mentioning that the profile designing section can execute whatever design the client needs.

Though most of the extruded profiles are still commonly used in building projects- doors, windows, show windows, curtain walls, etc. yet, a substantial fraction of them is used in many other industrial fields in the country as accessories, office desks, demonstration cabinets, separation walls, lighting systems, transport vehicles, ladders, lifts, shower cabins, refrigerators, deep freezers, etc.

• The volume of sales are 6000 TPY from the first line and 9000 TPY from the second line and 40% of the total production export to the many regional, European and African countries
• who is their customers: most of the Madar’s customer are fabricators and it reaches more than 80% from the total sales and the other 20% are deferent activities such as home appliances producers, decorative material or private uses
• How do they sell (selling technique):
  • For the common profiles they do have an agent around the Syrian cities and many distributors in Damascus
  • They have their own offices in the factory and in the showroom
• For the private profiles the direct sales are the common way to sell Competitions: There are competitors from regional market and domestic market
  • Awad Amoura
  • Massouh
  • Almouayad for Aluminum Extrusion
  • Aljarah for Aluminum Extrusion
  • Siral Aluminum
  • Mahjoub PVC
  • Arab Producers for Aluminum and PVC
• Employees & laborers: Madar has more than 500 workers and employees
• Managers and Organization: it is family business and the organization belongs to the centralized and bureaucratic concept and most of the designs makers and managers are from the Daaboul family
• Advertise: the advertising policy is as follows:
  • Signage at the locations of agents, distributors and fabricators
  • Billboard
  • Annual campaign at the beginning of the year consists of agendas, calendars and branding materials
  • Special Events for new products
  • Buildex fairs
• Technologies: latest technology in its field from most famous European companies

Universal Tempered Glass – UTG

Universal Tempered Glass “UTG” our case study in the Daaboul Industrial Group was established in 1997 in Double Glazing Units and in 1999 the tempering line with main goal to produce to its customers the quality products with realistic prices.

To meet its set target, UTG has selected state-of-the-art technologies and equipment and has employed professional technical and administrative staff, specially trained at the manufacturer’s facilities to ensure quality products and to be always close to the latest advances in their field.

Since glass is playing an increasingly important role in our everyday life, UTG produces all types of glass required in architectural applications, while maintaining a competitive position in the Middle East market in terms of international standard quality, safety, prices and customer satisfaction.

UTG Mission

Since glass is playing an increasingly important role in all fields in our everyday life, UTG took upon itself producing safety Tempered Glass that ensures a strong and continuing competitive position in the markets of the Middle East in terms of prices, safety, environmental, quality standards and customer relation.

In order to achieve these goals, UTG used the best equipment, best raw materials and employed excellent technical and administrative staff, which place a high value on providing customers and consumers with high-quality products and services. It is understood that this cannot be achieved unless UTG’s workforce is provided with ongoing training and development .

UTG’s Goals

Having acquired and mastered the modern equipment and up-to-date technology, to produce the best safety tempered glass in the region; we can summarize UTG’s goals as follows:

• To understand our customers’ requirements that could not be met prior to establishing our company, and provide them with cost-effective products and services of consistent quality, these measures are to be in line with regularly providing people with information, regarding the advantages of these kinds of glass over the ordinary commonly used glass.
• To continuously strive for excellence in product design, and promote the experience, skill, and inventiveness of all UTG’s employees and technicians.
• To meet most of the needs of the Syrian market for tempered and heat-treated glass, in order to minimize imports of these kinds of glass from foreign markets, and export a portion of our products to the neighboring markets.
• To become a leading company in the Middle East in the field of safety tempered glass and heat-treated glass.

SAMA Fabricating and installing Company

Being a newly created division, the function of this division covers the fabrication and installing of custom-made systems covering all kinds of aluminum fabrications. The division undertakes tig welding, Mig welding, Seam welding, Spot welding and stand-alone installations of doors, frames, roofing, ladders and all other aluminum installations, office desks, demonstration cabinets, separation walls, lighting systems, transport vehicles, lifts, shower cabins, refrigerators, deep freezers

Problem Statement and Current Issues by DIG

Daaboul Industrial Group has been working at full capacity with no competition, neither from internal producers nor from external products. It has been able to monopolize the market and fix prices as it desires.

Recently Daaboul Industrial Group started to face threats from new internal producers and from regional producers from countries with which the Syrian Government has signed free trade agreements, such as Arab countries, Turkey and Iran. Because of new competition, DIG requires efficient marketing to accompany its efficient production. IMC would be an effective marketing technique to adopt.

IMC Process

The process of implementation of IMC in Daaboul takes the following steps:

Identification of Target Market and Customers

The target audience of Daaboul Industrial Group (DIG) includes fabricators and it reaches more than 80% of the total sales, and the other 20% are deferent activities such as home appliances producers, decorative material, or private uses. Hence the target customer can be identified as:

• Building Contractors
• Wholesalers in Aluminum products like aluminum frames and rods
• Retailers dealing indoors, frames, glass panels and other aluminum fabrications
• Home appliances manufacturers
• Roofing manufacturers
• Interior decorators
• Other aluminum-based products manufacturers
• Decorative material manufacturers
• Private parties using aluminum fabrications for various purposes like doors, window Frames, office partitions and the like.

The market segments can be identified as:

• Regional and global Industrial manufacturers
• Regional and global Construction companies
• Regional wholesalers
• Regional Retailers and
• Private parties

Determination of the Objectives of Communications

DIG has so far been enjoying a virtual monopoly in the market. But quite recently there has been the emergence of some competitors in some of the regions where the Group was having an arrangement of free trade facility. Hence the broad objective for the group is to

• Mainly to combat the competition
• Increase the awareness of the products of DIG among the existing as well as new customers
• Soliciting new customers in those regions where the Group faces some competition
• Integrating the marketing communication for all the divisions of the group

Designing the Content of the Message

The important aspect of the whole process of integrating the marketing communication lies in the designing an effective content for the message that the Group wants to convey to the customers. It must be designed in such a way that it is not only appealing and attractive to the customers but also carries the message of the superiority of the products of the Group. The content may be drafted effectively in English and translated in Arabic, the majority of the market and the customers being Arab.

The content should convey the message that the Group is the pioneer one in the products it is manufacturing and distributing. The message should also convey that the company can cater to the all the interconnected activities relating to the fabrication and installation of various aluminum products because the group has all the divisions dealing with the various activities of covering the entire life cycle of the end products. The message should be drafted in such a way the financial strength of the company is exhibited in the content.

This content can be used in both offline and online media to convey to the customers the message that the company can integrate a host of activities in Aluminum manufacture from the ingot stage till the installation stage. This is conveyed by the message ‘Destination for all your Aluminum Needs’

The suggested content may take the following form:

Destination for all your Aluminum Needs

Daaboul Industrial Group

We, are the pioneers of aluminum-based products with our industrial and commercial activities started since 1975 in Syria catering to the industrial manufactures, construction companies, interior decorators, wholesalers and retailers using aluminum-based products.

Our Group consists of the following divisions:

Madar Aluminum

– An ISO 9001 certified company having an appreciable technical excellence in aluminum-based products – manufacturing of aluminum profiles from the aluminum billets. Currently the company is holding around 2000 different profiles meeting the increased needs of the local and foreign markets. Aluminum Extrusion is our specialty and though most of the extruded profiles are commonly used in building projects doors, windows, show rooms, curtain walls, etc. Yet, a substantial fraction of them is used in many other industrial fields as accessories, office desks, demonstration cabinets, separation walls, lighting systems, transport vehicles, ladders, lifts, shower cabins, refrigerators, deep freezers, etc., Still, there are so many other fields where aluminum profiles can be used

Universal Tempered Glass (UTG)

UTG is a pioneer company in Syria in the field of architectural and industrial applications. The company started in the year 1997, with the activity of manufacturing double glazing glass added tempered glass manufacturing in the year 1999. The activity of the company is complementary to aluminum extrusion activity being carried out by ‘Madar Aluminum’. Products of the company include Glass types used in manufacturing like Clear Glass, Colored Glass, Reflective Glass, Laminated Glass, and Sound insulating Laminated Glass. We also cater specific requirements of customers like Tempered Glass, Spider Systems, Double Glazing Glass, and a variety of other products.

SAMA Fabricating and Installing Company

SAMA is our brand new division dealing in Fabrication and Installation. This activity of the group completes the complete cycle of the product of Aluminum. Now with this division we can execute composite orders were aluminum and glass partition works that are involved in high rise constructions and other interior works. We are geared to execute all other kinds of fabrication and installation works to meet specific requirements of customers.

Selection of Communication Medium and Marketing Mix

Based on the current customer base the company is following the marketing technique of advertising through

• Signage at the locations of agents, distributors and fabricators.
• Billboard.
• Annual campaign at the beginning of the year consists of agendas, calendars and branding materials.
• Special Events for new products.
• Buildex fairs.

But to make an aggressive integrated marketing communication the company needs to add more communication media both online and offline.

Offline Marketing Techniques

The Group can adopt an integrated marketing plan, by resorting to the following offline marketing techniques.

1. In the offline media, the company should promote lot of ‘publicity’ through various methods. In all the offline publicities, the message designed above can be communicated by handbills distributed in contests, games, sweepstakes, conducted in fairs, exhibitions and trade shows. These kinds of promotional activities will have a large reach to the potential customers.
2. The ‘public relations’ is another offline method that the Group can use by having informal meetings with the CEO s and other senior-level managers of the large industrial undertakings, construction companies and interior decorators.
3. Personal Selling is another method that can be adopted and this can be accomplished by sending the sales representatives to wholesalers, retailers, and other private parties.
4. Advertising on offline media like newspapers, technical magazines and other trade publications about the group activities
5. Offline Direct Marketing includes telemarketing, TV shopping, Catalogs and mailing.

Online Marketing Techniques

The online marketing techniques that the group can make use of include:

1. As an online direct marketing technique, the Group may send direct Emails to the purchase executives of different industrial houses and large construction companies by collecting the database from the internet or yellow pages directory. This Emails may be made in the personal name of any of the senior managers of the Group in the Vice – President level addressed in person to the respective purchase executives which may carry additional weight in the sales promotion
2. By making attractive texts with keywords, the group may subscribe to the paid listing of the search engines like Google, Yahoo!, MSN with the keywords leading to the companies website
3. By preparing and hosting an attractive Website of the Group the complete information about the group activities may be incorporated into this website.

Integration of Offline and Online Marketing Techniques

The integration of the above offline and online marketing techniques necessitates the inclusion of the designed content drafted above in all the marketing communications. The theme of the message is that

• The Group is the pioneer in the Aluminum products in Syria
• The Group combines the activities making the aluminum profiles and frames from billets, conversion of frames into doors, windows and other aluminum structures and in addition exceptional glass works can be done through the UTG divisions of the Group.
• The Group excellence can be seen from the ISO 9001 certification obtained. In this way the company could be able to present a uniform message to all the customer classes. The message contains the integrated facilities for a full product life cycle in various aluminum products. The IMC has the following features:
• The use of various online and offline marketing techniques would reach a larger customer base and this enhances the aggressiveness of the marketing.
• This aggressive marketing technique is sure to bring in more inquiries that will educate the company to know the customer needs and wants and the company can change the production plans according to the customers’ needs.
• This way of reaching more customers eliminates the need for the individual companies of the group to have different advertising and sales promotion budgets and the sales promotion of the company can be integrated into one marketing plan that serves the needs of all the companies in the group.
• The integrated marketing techniques have the advantage of coordinating the targeted audience for all the group companies.
• The Single message of ‘Destination for all your Aluminum needs’ can be used in all these marketing techniques with the Group logo.
• The IMC can improve the brand positioning of the group to a large extent.

Measurement of the Components of the Promotional Mix

The factors like

• Product Revenues
• Marketing Expenses
• Resultant Customer response

can be used in measuring the effectiveness of the different promotional mediums. The measurement can be accomplished by establishing the monetary standards for each of the media and actual revenues from them. The customer responses can be identified by gathering the data on the number of inquiries received based on each medium of communication.

Conclusion

Thus the Integrated Marketing Communication has several advantages that could enhance the effectiveness of the marketing resulting in improved sales growth. However, it is vitally important that the company uses all mediums of communication with the common message it has adopted for IMC. It is also important that the Group should allow sufficient time for the marketing techniques to take effect. Any expectation to have an immediate response on the basis of IMC may not be fulfilled, as it will take several weeks before the Group can expect the results of IMC.

References

Brian Rutherford ‘What is Integrated Marketing Communications: Introduction to Marketing Communications L3’. Web.

Daaboul Industrial Group. Web.

Paul Paquet ‘Integrated Marketing Communications: Breakthrough, Buzzword, or Great Failure’. Web.

Raul Danny Vargas ‘Integrated Marketing Communications – An Effective, Comprehensive Approach’. Web.