SIERRA READYMIX (PVT.) LTD. MARKETING STRATEGY FOR THE NEW DESIGN & PROJECT MANAGEMENT WING
1.0 Introduction
Sierra Readymix (Pvt.) Ltd. (SRL) is a subsidiary company of Sierra Construction group of companies aimed at providing specialized ready mix concrete (RMC) to the Sierra group & to Sri Lankan Colombo-Gampaha-Kaluthara based projects in construction sector. SRL performed well and sustained an exponential growth since inception in 2005 becoming a dominant player in ready mix concrete industry. With 15 competitors springing up in western province, scarcity of materials such as ¾” metal, river sand & constant material price increments due to high demand by Colombo port expansion project & Southern Highway outer circular project, bottom line of the company began to get affected. As to overcome the anticipated materials price shock & competitive low margined market SRL is expecting to diversify into area of construction design development & project management where soft skills would be much stressed upon.

2.0 SITUATIONAL ANALYSIS
2.1 Diversification is required due to :
• Price competition due to 15 competitors with much low overheads.
• Price hikes of essential raw materials ¾” metal, river sand due to large scale projects such as Colombo port expansion project & Southern Highway outer circular project.
• Shrinking bottom line due to above stated reasons.
• Company’s product – RMC supply can only cover a limited geographical area in Colombo-Kaluthara-Gampaha districts (geographical constraints due to transportation time)
• Main internal buyers – Sierra Construction (Pvt.) Ltd., Sierra Piling (Pvt.) Ltd., Sierra Water (Pvt.) Ltd., Sierra Global (Pvt.) Ltd. Sierra Roads (Pvt.) Ltd. etc. moving to project based mini mobile RMC mixing plants where SRL would have to emphasize on external clientele.
• Seasonal fluctuations in construction industry where