Marius Dragne

Marketing Manager
Xella RO SRL
Briefing
Ytong 2011
Integrated concept 2011
UPS headline
Layout design
Media channels
Promotional mechanism
Marius Dragne Xella RO Jan-11 2
CONFIDENTIAL DOCUMENT!
Marius Dragne Xella RO Jan-11 3
Contents
1. General Overview
1.1 Xella International at a glance
1.2 Xella in Romania
1.3 Ytong brand positioning
1.4 Ytong in Romania
2. Current situation
3. Project plan
3.1 Communication focus
3.2 Goals
3.3 Objectives
3.4 Target
4. Campaign mix
5. Requirements
6. Expectations
7. Resources and timing
Marius Dragne
Marketing Manager
Xella RO SRL
1. General overview
Marius Dragne Xella RO Jan-11 5
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 silicate
units (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)
Marius Dragne Xella RO Jan-11 6
Aircrete
Calcium silicate
blocks
Prefab aircrete
components
Mineral insulation
boards
Gypsum fibre boards
Fire protection boards
Cement-bonded
drywall panels
BUILDING
MATERIALS
DRY-LINING
SYSTEMS
LIME
Lime
Limestone
The business units
Marius Dragne Xella RO Jan-11 7
Strong brands for strong products
The Xella brands stand for high-quality,
customer-oriented solutions and superior products.
Marius Dragne Xella RO Jan-11 8
1.2. Xella in Romania
The most modern AAC production facility
in Eastern Europe;
Greenfield investment: 32 million Euro;
Production capacity: ~ 400.000 m
3
2009: 30 employees in Xella RO;
2010: 70 employees in Xella RO.
Ytong production facility - Paulesti, Prahova
Marius Dragne Xella RO Jan-11 9
Ytong brand stand for high-quality, customer-oriented solutions and superior products.
Ytong IS THE INVENTOR
AND
PIONEER IN AAC.
Marius Dragne Xella RO Jan-11 10
1.3. Ytong brand positioning
The power of saving energy
We are the worlds leading
manufacturer of autoclaved
aerated concrete and calcium
silicate units. We set the
benchmarks for energy-efficient
construction and provide
solutions that simply and reliably
lead our customers to success.
Farsightedness*
We identify the central challenges for
our industry and provide
comprehensive and sustainable
answers to the demands for energy
efficiency, ecology and innovation
Reliability
As a reliable provider we take
responsibility for the quality of our
products and services
Simplicity
With a profound understanding of the
central needs of our customers, we
enable target-oriented processes and
simple processing and application of
our products
* Addressing of topics with focus on farsightedness (e.g. climate,
energy, ecology/environmental protection/sustainability,
demography, communication, economic vitality and globalization)
Marius Dragne Xella RO Jan-11 11
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
Marius Dragne Xella RO Jan-11 12
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
Marius Dragne Xella RO Jan-11 13
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
Marius Dragne Xella RO Jan-11 14
Ytong Building Systems
Thin bed layer mortar
Professional tools
Technical support
Professional tools Mortar Technical support
Marius Dragne Xella RO Jan-11 15
Residential buildings Commercial buildings Renovation
Ytong - main reference in construction, for over 80 years
Marius Dragne
Marketing Manager
Xella RO SRL
2. Current situation
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LACK of education about quality in
construction
Poor construction CULTURE, focused on
cheap building materials
superior quality
customer-oriented solutions
international know-how
The
context
The
brand
Ytong in Romania is a product with limited
brand AWARENESS!
Private Consumers skip the opportunity
to use Ytong and persist in buying local
cheap AAC or BRICKS!
Ytong higher prices on m
3
compared with all
other competitors (aac and bricks)
Lack of tradition comparing with clay bricks
Constructors promote additional insulation to
houses, 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 the
buyers, as possible motivation is received
from other producers
Consumers are choosing construction material
without considering quality or long term cost
Additional insulation = additional income for
constructors + insulation covers low quality
masonry execution
Bad rumors on regular AAC products [Ytong
belonging to AAC category]
Unreal image of Ytong, as poor quality,
unhelthy, water absorbant, radioactive material
Marius Dragne Xella RO Jan-11 18
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
Marius Dragne Xella RO Jan-11 19
SWOT analysis
Opportunities
Segment SFH will develop more in the next
period and is less affected by economical
crisis
Obvious tendency to premium building
material
DIY market is growing
Low quality of blocks from competitors.
Increasing demand of energy saving
products
Growing energy prices
Threats
Global economic crisis
Private investors compare price by m
3
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
Marius Dragne Xella RO Jan-11 20
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)
JIMBOLIA
MACON SIMCOR
CEMACON
WIENERBERGER
Marius Dragne Xella RO Jan-11 21
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 for
quality 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
Residential
Construction
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 residential
constructions 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 housing
stock 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 as
reviewing 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 the
process, lower prices in construction, profits smaller than in the past.
Marius Dragne Xella RO Jan-11 22
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 shape)
Thin bed mortar & tools III
Renovation
Non-residential construction
Market segment
Products Industrial
Residential construction
I-a
I-b
III
II
II
PMS Definition
I-a
Single family house (interior walls and multi-layer exterior walls)
I-b
Energy efficient Single family house (monolithic exterior walls)
II
Big projects (Apartment Building, Hotel, Commercial Building etc.)
III
Renovation
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 shape)
Thin bed mortar & tools III
Renovation
Non-residential construction
Market segment
Products Industrial
Residential construction
I-a
I-b
III
II
II
PMS Definition
I-a
Single family house (interior walls and multi-layer exterior walls)
I-b
Energy efficient Single family house (monolithic exterior walls)
II
Big projects (Apartment Building, Hotel, Commercial Building etc.)
III
Renovation
Marius Dragne Xella RO Jan-11 23
PMS 1
Single 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 of
costs.
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
Marius Dragne Xella RO Jan-11 24
Our vision in PMS 1
If you ask someone - Where do you want to live?
I want to live in
Ytong house!
Marius Dragne Xella RO Jan-11 25
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
Marius Dragne Xella RO Jan-11 26
Practice example additional insulation
Damage due to fire on external wall with EPS insulation
Marius Dragne Xella RO Jan-11 27
Practice example additional insulation
Damage due to humidity on the roof
Damage due to humidity on a
wall with EPS insulation
Damage due to humidity on a
wall with mineral wool insulation
Marius Dragne Xella RO Jan-11 28
Worm infestation/insect infestation also in expanded polystyrene
Insect infestation under the roof cladding Window connection Facade
Practice example additional insulation
Marius Dragne Xella RO Jan-11 29
Ytong message:
CHEAP COSTS YOU MORE!
Oryou can build it with
Ytong and spend no extra
money and have no extra
worries!
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 will
actually have cost the same, if not less!
Marius Dragne Xella RO Jan-11 30
Ytong goal:
Satisfied Ytong house owners
Marius Dragne
Marketing Manager
Xella RO SRL
3. Project plan
Marius Dragne Xella RO Jan-11 32
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
Energy
efficiency
USP
Short term
USP
Long term
Marius Dragne Xella RO Jan-11 33
3.2. Goals
Develop a clear communication action plan (advertising and/or promotional
mix) 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!
Marius Dragne Xella RO Jan-11 34
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 habits
use Ytong instead of a local AAC product
use Ytong instead of clay bricks & insulation
Active guerrilla marketing in relation with our competitors (especially in
natural area of the factory)
Be prepared to answer to possible campaigns of competitors
Project objectives
3.3. Objectives
Marius Dragne Xella RO Jan-11 35
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 investor
Private investor
Private investor
Private investor
Marius Dragne
Marketing Manager
Xella RO SRL
4. Campaign mix
Marius Dragne Xella RO Jan-11 37
As our main field of business is Single-family houses concentrate 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 the
box 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 on
competitors
Educational advertorials in printed magazines.
Marius Dragne
Marketing Manager
Xella RO SRL
5. Requirements
Marius Dragne Xella RO Jan-11 39
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 evaluation
tools
Ytong Private Investors
Integrate communication
Integrated concept
Marius Dragne Xella RO Jan-11 40
Tone of communication
Effective
Provocative
Well balanced
Marius Dragne Xella RO Jan-11 41
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)
Marius Dragne
Marketing Manager
Xella RO SRL
6. Expectations
Marius Dragne Xella RO Jan-11 43
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 recognized
german 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
Marius Dragne
Marketing Manager
Xella RO SRL
7. Resources and timing
Marius Dragne Xella RO Jan-11 45
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, without
additional penalties. All the activities already done at the moment of revision are subject of payment by
XRO.
Resources and timing
creativity - simplicity - reliability - farsightedness - cost effective
Marius Dragne
Marketing Manager
Xella RO SRL
Thank you!