Infrastructure

Market bulk building materials is gaining momentum, recovering from the crisis. This kind of materials is used in the zero cycle of construction works, and the growing number of construction projects starting plus the start of projects delayed because of the crisis gives a lot of potential for work.

Beginning in may of this year, all production every 2 months increase the price of the material that tells about a planned, stable growth of demand (the seasonal factor, the pent-up demand). The industry consists of manufacturers of materials (quarries in the Leningrad region), suppliers, carriers and customers (builders). Suppliers purchasing material for production and supply to construction sites through its own equipment or leased equipment. In the previous 20 years, the market had stable growth trend with the exception of the 2 dips in 2008 and in 2013. After stagnating in 2013, the volume of demand ceased rapidly growing trend, but suppliers and manufacturer continued to buy basic tools such as: a license for the extraction of minerals, transport means to transport materials, construction equipment for mining, loading-unloading works and delivery of equipment for rent. Gradually increasing competition, the market began to become more civilized shape in mind the desire of vendors to protect their customers and acquire new ones, at the same time from this market has left inefficient organization that can't provide the necessary level of service to its customers. Also on the market increased requirements for suppliers to log on to large objects with a constant cash flow, high volumes and reduced seasonal factor.

The average monthly turnover supplier of inert construction materials: 5 000 – 7 000 Tr this figure is typical for most companies in the industry. Those who have a level of working capital from 2 000 000 to 5 000 000 R have an average monthly turnover of about 10 000 – 15 000 Tr, the average level of margins in the industry, and 7-9% for suppliers of material without working capital or small amount vs 10-12% with a volume of working capital from 1 500 Tr

Potential competitors become suppliers with own transport, with a large amount of working capital and the producers of the material.

The business is based on the purchase of materials in industries (quarries), the formation of a proper logistics plan and delivery on the consumer object.

A company's competitive advantage, increasing working capital, will be implemented in the form of increased volume of supplied materials, regular working capital turnover, reducing variable costs, attracting new strategic customers.

Revenues generated by outgoing calls the sales Department and incoming calls received with contextual advertising.

The primary tool calls and meetings with sales staff.

Consumers:

1. Construction company: use the company has purchased material for production work at their facilities. The builders are divided into several segments by the type of work undertaken:

· Replacement of external engineering communications

· Construction of roads for motor transport, Railways, air links, etc.

· Construction of residential structures and arrays

· Construction of industrial facilities

· Residential construction

· Construction of the oil loading stations

· Construction of ports

· All types of excavation and construction works

· And other types of construction works associated with the zero cycle (excavation)

2. Manufacturers of cementitious mixes such as concrete and asphalt concrete, This segment is more stable and less prone to seasonal decline but it is also less cost-effective than the construction company.

Sales:

Sales are made through phone calls and meetings with sales staff

Marketing:

Configured contextual advertising in Yandex and Google and on Craigslist. The conversion rate of 5-7 %, conversion of leads into deals 15-20% in the first 2-3 weeks, another 40% 1-2 months, 20% during the year.