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NAKASSAJJA CERAMICS AND TILES LTD.
Nakassajja Tiles and Ceramics Ltd. (NCTL), a fairly young firm in Jinja Uganda, faces rapidly changing markets and increasing competition, Jinja is famous for its hand-painted tiles, mostly in different shades of blue. The region’s special clay has enabled to produce long-lasting quality tiles over the centuries.
Modern methods of production are new to the industry in Jinja. NCTL, is regarded as the largest and most modern domestic producer. However, as a manufacturer for the international market, it is considered to be in its infancy and in need of technical and management knowhow.
Current production comprises ceramic tiles for walls, flooring and decorative purposes. The company is considering entry into the export trade and diversifying into sanitary ware and tableware. Its managing director is an experienced retailer of tiles and sanitary ware. Tableware, a product line unrelated to the construction industry, will require separate construction channels.
NCTL holds 30 per cent of the domestic market for the ceramic tiles and is facing significant challenges from its closest competitors, BCD and EGF, which have a combined share of 65 per cent. Considering that both these companies were established many years earlier, NCTL has been exceptionally successful. The remaining 5 per cent of the market is supplied by imports, mainly from Italy and Germany.
Demand for high-quality, high-priced imports carrying prestigious brand names is increasing as income is rising significantly in certain sections of the population. NCTL’s production costs are rising with the costs of imported raw materials, a situation exacerbated by the imposition of an import duty of 40 – 120 per cent on such items as dyes, moulds and chemicals. The company’s profit margins are shrinking and the impending entry of another domestic supplier is so worrying
Q.4.
- Draw a model /representation of the strengths and weaknesses, and the current, opportunities and threats of NCTL
- Recommend the suitable marketing mix strategies adaptable in the context of NCTL.
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