AG stone mart market entry and growth case study

Case study on market entry and growth for AG stone mart in UAE

1. AG Stone Mart
Comprehensive strategy for Market establishment
1

2. 1
2
3
Market Overview
Key players & requirements
for market entry 5
6
7
8
Table of contents
Opportunities & Market Expansion
Current gaps & potential in the UAE
Market
Customer profile and journey
Client acquisition, conversion &
onboarding journey
Operational Excellence
Efficient supply chain and
delivery management
Financial Performance
Ensuring financial
profitability and stability
Product differentiation & sustainability
Offering value through product variety and
sustainable practices
Competitor case studies
Taking a look at what current
players are doing4
Customer Acquisition,
Retention & Referral
Channels and means
2

3. Key players and requirements for market entry?
Market Overview
Current market leaders: Key requirements for establishing market presence:
●Market Research and Analysis to identify specific customer
segments, competitor analysis, and prevailing trends.
●Quality Assurance ensuring that products meet or exceed
international standards for quality and safety with certifications
(e.g., ISO, LEED).
●Customization and Tailoring: designing services to cater to specific
customer preferences and design requirements.
●Strategic Showroom location with high visibility and ease of reach.
●Digital Marketing and social media engagement for awareness.
●Excellent pre & post-sale customer service including delivery,
installation, after-sales support and installation services.
●Competitive Pricing Strategy while considering factors like quality,
brand positioning, and market demand.
●Compliance with Regulations, including import/export procedures,
labeling requirements, and health and safety standards.
●Networking and Relationship Building, including attending industry
events, conferences, and exhibitions to network with potential
customers, suppliers, and partners.
●Efficient and optimised processes, continuous feedback and
standard SOPs.
•SANIPEX GROUP
•GLAZE Granite & Marble
•Graniti Building Materials LLC
•CasaMia
•RAK Ceramics
•Marble studio,
•Emirates tiles
•Kajaria
•Jaquar Middle East LLC
•Porcellan Co. Llc
•Sarieddine Trading Establishment
•AL MAHA CERAMICS SAOG
•Emirates Ceramic
•Emirates Marble
•Royal ceramics general trading
3

4. Opportunities and Market Expansion
Current gaps and potential in the UAE Market
•Absence of logistics support.
No delivery service is
provided.
•Inefficient traditional business
practices, lack of
standardization and
optimisation.
•Non-uniform presentation
and practices.
•Unavailability of design
services, 3D renders or VR
applications.
•Lack of payment plans,
loyalty or referral program
•Inconvenient store/
warehouse locations


Gaps/opportunity areas UAE market expansion
Emirate-Specific Strategies:

●Dubai: Focus on high-end residential and commercial
projects, catering to the demand for luxurious finishes
and innovative designs.

●Abu Dhabi: Target government projects, hospitality,
and institutional buildings, emphasizing quality,
durability, and sustainability.

●Sharjah: Explore opportunities in the cultural and
heritage sectors, offering traditional and contemporary
stone products.

●Ajman: Focus on mid-range residential & commercial
projects, providing a balance of quality & affordability.

●Ras Al Khaimah: Target tourism & hospitality projects,
products complementing the emirate's natural beauty.

●Fujairah: Explore opportunities in the construction and
infrastructure sectors, catering to the growing demand
for building materials.

●Umm Al Quwain: Focus on local residential and
commercial projects, offering a variety of products to
meet diverse needs.

Preferred
due to higher
volume of high
net worth
residents and
homeowners
4

5. RetentionActivation ReferralConversionAcquisition
Customer profile and journey
Client acquisition, conversion & onboarding journey
Lead Gen Lead Conversion Post Sale
Customer
Profiles
●Home owners
●Contractors
●Interior designers
●House flippers
●Residential
Developers
●Commercial
Developers
●Architects
●Store Design and layout: Clear Signage, product placement, visual
appeal and optimised customer flow, cleanliness and comfort.
●Product variety and superior quality
●Impeccable product presentation, clear labeling, smart product
demonstrations and concise explanation with well trained staff.
●Customised experience with 3D views, VR and in-store design.
●Payment options and loyalty & referral program
●Limited time offers and promotions for high volume orders.
●Interactive displays, mobile app, website and self checkout.
●Minimum wait times and efficient feedback processes.
●Customer testimonials and reviews
●Delivery, warranty and installation services.
5

6. ● Pay per click (PPC)
Advertising – Google Ads
●Facebook & Instagram ads,
Pinterest promoted pins
●Display ads on websites
●Partnership with National
housing loan, Sheikh Zayed
housing program, banks
providing home loans, etc.
●Retargeting/ remarketing
website visitors
●Affiliate Marketing
●Sponsored content
●Local Advertising
●Newsletters & Subscriptions
●Influencer collaborations
●Sponsored events
Customer Acquisition, Retention and Referral
Channels and means
Promotions (Internal):
● Curated Marketing content
distributed by employees
Promotions (External):
●Pay Content Marketing –
blog posts, videos, e-books
and guides
●On page, local &
backlinking SEO
●Instagram, Pinterest,
Facebook, SM content
●Word of mouth & referral
●In-store events
●Community involvement –
workshops/ exclusive
showcases, online forums
Organic Paid
Lead Generation/ Activation Retention Referral
Central Data system (CDS) for unified data management and data-driven decision making
CRM Integration: Reporting, Channel performance,Lead generation analytics, Buyer personas
In-house Marketing team, analytics & agency (outsourcing)Dependency
Infrastructure
requirements
Celebrating
customer milestones
Track and optimise
rewards as per
customer needs
Community building
and involvement
Optimized online
experience
Exclusive discounts
for loyalty Program
Quality products,
service & assurance
Combining referral
program with
promotions
Personalised touch &
regular reminders
Simplified referral
process with perks
Testimonials and
customer generated
content, reviews, etc
Customised partner
program for
contractors, interior
designers & referral
6

7. Operational Excellence
Efficient supply chain and delivery management
Timely Delivery

●Lean Manufacturing: eliminate
waste, reduce lead times,
and improve overall
efficiency. Techniques such as
just-in-time (JIT) inventory and
continuous improvement can
be highly effective.
●Demand Sensing: Capture
real-time demand signals
●Collaborative Planning,
Forecasting, and
Replenishment (CPFR):
develop collaborative
forecasts and replenishment
plans, improving supply chain
visibility and responsiveness.
●Last-Mile Delivery
Optimization: Route
optimization software and
consolidating deliveries

Inventory Management

●ABC Analysis: Categorize on
high-value, high-demand
items for tighter control.
●Safety Stock: mitigate risks of
stockouts due to unexpected
demand fluctuations or supply
chain disruptions.
●Reorder Point: trigger
replenishment orders when
inventory levels decline.
●Vendor Managed Inventory
●Inventory Turnover: Monitor
and identify slow-moving or
obsolete items.
●Warehouse Optimization:
Reduce handling time and
maximise storage with factors
such as product size, weight,
and frequency of access.
●Inventory Risk Management:
mitigate risks of obsolescence,
damage & theft.
Technology Integration

●Enterprise Resource Planning
(ERP) System will provide
real-time visibility and enable
data-driven decision-making.
●Warehouse Management
System (WMS) to automate
inventory tracking, putaway,
picking, & shipping processes.
●Transportation Management
System (TMS) to optimize
transportation planning,
routing & carrier selection.
●Internet of Things (IoT) to track
inventory, monitor equipment
performance
●Artificial Intelligence (AI) for
predictive maintenance,
demand forecasting, and
inventory optimization.
●Cloud Computing & Data
Analytics for accuracy
7

8. Financial Performance
Ensuring financial profitability and stability
Financial Planning
and Forecasting

●Detailed Budgeting including production costs, marketing expenses, sales revenue & overhead costs.
●Financial Forecasting: Develop accurate financial forecasts to predict revenue, expenses profitability.
●Scenario Planning to assess impact of different economic conditions, market trends, and risk factors.
Cost Control and
Efficiency

●Cost-Benefit Analysis: Evaluate the costs & benefits to ensure alignment with financial objectives.
●Operational Efficiency, optimizing production processes, reducing waste and negotiations
●Expense Management: Monitor and control expenses for cost reduction maintaining quality.
Financial
Performance Analysis

●Key Performance Indicators (KPIs), return on investment, debt-to-equity ratio & inventory turnover.
●Financial Ratios to assess the company's financial health and identify areas for improvement.
●Variance Analysis: Compare actual results to budgeted figures to identify variances
Risk Management

●Risk Identification, such as economic downturns, market fluctuations, and supply chain disruptions.
●Risk Assessment: Evaluate the likelihood and impact of each risk, use tools wherever necessary
●Risk Mitigation or manage identified risks, such as insurance, contingency planning, and diversification
Financial Reporting
and Compliance

●Accurate Record keeping and up-to-date financial records, including invoices and bank statements.
●Financial Reporting, including income statements, balance sheets, and cash flow statements.
●Compliance with all relevant financial regulations, accounting standards, and tax laws.
Financial Technology

●Accounting Software to streamline financial processes, automate tasks & generate accurate reports.
●Financial Analytics tools to gain insights into financial performance, identify trends, and make
data-driven decisions.
8

9. Product differentiation & sustainability
Offering value through product variety and sustainable practices
Product variety Sustainable practices
A few examples of the products that
are in demand in the UAE Market
●Marble
●Granite
●Onyx
●Quartzite
●Precious stones
●Travertine
●Limestone
●Ceramic tiles
●Porcelain floor tiles
●Vanities
●Ice slab tiles
●Outdoor tiles
●Bookmatch tiles, etc

●Ethical Sourcing adhering to ethical labor practices &
regulations. Check for Fair Trade or Chain of Custody
(CoC) certification.
●Sustainable Quarrying methods that minimize
environmental impact, such as reducing waste and
restoring the land after extraction.
●Energy Efficiency practices in production, such as using
LED lighting, upgrading equipment & optimizing
manufacturing processes.
●Water Conservation during production by using efficient
equipment, recycling water & implementing rainwater
harvesting systems.
●Waste Reduction by optimizing production processes,
recycling materials, and composting organic waste.
●Low-VOC Products like adhesives, sealants, and other
products to reduce air pollution.
●Certifications such as LEED (Leadership in Energy and
Environmental Design) or FSC (Forest Stewardship
Council) to demonstrate commitment to sustainability.
9

10. Competitor Case Studies
Taking a look at what current players are doing
SWOT Analysis
●Diverse product range
●Manpower, architecture
& design resources
●20 year experience, good
product knowledge &
trained staff
●Materials imported from
West
●High end clientele
●Ready-made catalogue
Strengths
●No Installation services
●Traditional business
practices
●Lack of process
uniformity
●No delivery services
●No design services
●Lack of 3D/ VR tech
●Selection can be done
only in Sharjah factory
Weaknesses
●Logistics support
●Payment plan options
●Loyalty and referral
program
●Vanity customisation
options and plans
Opportunities
●Competitive pressure
●Supply chain
disruptions
●Time and monetary
losses due to
inefficiencies
●Catering to changing
customer preferences
Threats
Glaze
Points to consider:
●20 yo company dealing mostly with marble, granite,
quartz, travertine, onyx, limestone and precious
stones.
●Glaze has, on an average, 70-80 options in each
product category. Most of their slabs are from Italy,
Spain, Greece, Portugal, Brazil, Turkey and India.
●3 branches in UAE Sharjah, Dubai and Abu Dhabi
and the Dubai showroom on Sheikh Zayed road is
4000 sq ft.
●The Showroom has 2-3 staff members with a monthly
target of 2 Mn dhs and quarterly incentives. On
achievement of target they receive an incentive of
10% which is divided among each division
●No commissions for B2B clients, upon request they
can add 15% to the customers’ total bill which is
considered as their commission.
●Glaze does not have delivery and fixing of slabs,
except for kitchen countertops
●No warranty offered for products or responsibility
taken once customer collects the slabs.
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11. Competitor Case Studies
Taking a look at what current players are doing
Glaze
A look through the showroom
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12. Competitor Case Studies
Taking a look at what current players are doing
SWOT Analysis
●Diverse product range
●Manpower, architecture
& design resources
●High tech design services
●Big ticket clientele
●No minimum order value
and free delivery services
●Luxurious designer brand
collabs
●Large inventory spaces
Strengths
●No loyalty program
●Does not cater to
budget/ mid market
clientele
●Dependency on the
Luxury Market
Weaknesses
●E-commerce Expansion
●Regional expansion
●Sustainable products
●Partnerships and
collaborations
Opportunities
●Economic Downturns
●Changing customer
preferences
●Competitive pressure
●Supply chain
disruptions
Threats
Casa Mia
Points to consider:
●Showroom size: 50,000+100,000 sq ft (warehouse + slab
studio 12mm) Sheikh Zayed road, Dubai.
●Products/ category - Tiles, Sanitary ware, furniture and
lighting, wood parquet flooring
●Brands – Falper, Fima, Flamina, Geberit, Gentry home,
Glass design Italy, Gessi, Jacuzzi, Kreoo, Milldue, MOAB80,
Mr. steam, Rapsel, Scarabeo, Sbordoni, Valdama, Ascot,
Diesel, Versace ceramics, Wow etc.
●Customers- high end customers, residential, hospitality,
commercial, architects and interior design, only Italian or
brand products.
●Gratification – Average 10% (5-15% for all interior designers)
●3 working day delivery if available in warehouse or as per
shipment arrival. No minimum order value for free delivery.
●Holds huge inventory approx. 200 million
●No limitation for exchange to gain customer loyalty
●3D design service for all customers for minimum AED 5,000
charged only using their materials. They use advanced
technology for renders. Approx. CPU price is AED 100,000.
●Marketing- Website, social media and collaborations with
designers and brands 12

13. Competitor Case Studies
Taking a look at what current players are doing
Casa Mia
A look through the showroom
13

14. Competitor Case Studies
Taking a look at what current players are doing
Casa Mia
A look through the warehouse
14

15. Thank You
Any Questions?
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