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Belotserkovych Alena

Belotserkovych Alena

Teaching and Research Institute "Graduate School of Economy and Management"
Faculty: Economic
Department: Economic and Marketing
Specialty: Economy of the enterprise (Marketing)

Theme of my master's work:

"Improvement of marketing activities on enterprises of basic industries"

My supervisor: Yarim-Agaev Alexander


About author

(Summary of research and developments)

Improvement of marketing activities on enterprises of basic industries

Currently, many enterprises actively use marketing, which allows better meet the needs of customers, more effectively implement the products and increase profit. Marketing experts consider marketing as a business philosophy and as a method of management of industrial and economic activities of different organizations. Modern marketing it’s the business, focused on the meeting the needs of the market and earning of profit in a competitive environment [1].
In Ukraine, the marketing is just beginning to develop, so the experience of marketing activities of domestic enterprises is very limited. Enterprises often guide by the principle "to sell, that they take, and at any price. " This certainly contradicts the idea of marketing [3].
The object of research in my master's work is a private joint stock company "Dokuchaevsky flux-dolomite combine. "Dokuchaevsky flux-dolomite combine" – one of the largest mining and processing enterprises of Ukraine for the extraction and processing of flux limestone and dolomite . The combine was founded in 1912. The subject of the master's work is a marketing activity "Dokuchaevsky flux-dolomite combine”. The combine doesn’t have a marketing department, but the company has its own “sale and foreign economic activity” department, which performs some functions of the marketing department.
Methods of investigation are: general science (observation, group, analysis, classification), expert estimates, mathematical modeling, graphical modeling, economic and statistical analysis.
The combine is an industrial enterprise, it’s produce products for industrial use, the company operates in the industrial market. Therefore, in the theoretical part of the master's work it will be disclosed characteristics, essence and nature of industrial markets, the theoretical aspects of industrial marketing, marketing strategy for industrial enterprises, feature of organization of marketing activities in industrial enterprises [4].
Industrial market it is a set of relationships between market actors (producers, intermediaries, consumers, banks, government, agents, brokers, etc., companies offering services, etc.), which are carried out within a certain area at a certain time.
Industrial marketing it’s an activity in the sphere of material production and industrial services, which are directed on meeting the needs of enterprises, institutions and organizations in raw materials, components, equipment and services, through an exchange and activity which are directed to increase the efficiency of production and to sale of industrial goods through researching and meeting the demand on industrial products and industrial services [5].
The essence of industrial marketing is to create customer value of goods and services for customers, that addressed on the meeting needs of organizations and achieve their aims. This idea is the concept of industrial marketing.
Marketing service can be arranged in four main versions of the structure - functional structure, structure that oriented on products or on markets and regional structure. The choice of a structure is mediated by features of the production and marketing activities of the company, product range, location of clients and companies, etc.
In the practical section of my master's work it will analyzed activity of "Dokuchaevsky flux-dolomite combine", state of the market flux and dolomite in Ukraine and in the world and a place of the "Dokuchaevsky flux-dolomite combine" in the market of flux products.
Limestone - inorganic substances which are added to the ore in the smelting of metals to reduce the melting point and easier to separate the metal from the gangue.
Dolomite is used in most cases for the same purpose as the limestone. In addition, he serves as one of the sources of magnesium metal and is used in steel production, mainly in open-hearth furnaces (as raw material for refractories and flux) [6].
Limestone is found on all continents except Australia.
The largest consumers of limestone and dolomite is USA (30%), Russia (17%), Japan (15%), Germany (10%). The largest volumes of dolomite mining abroad is in Britain, Canada, Japan, Belgium, USA, Spain and India. The need in this type of mineral is stable and has a tendency to increase.
The main producers in the market of flux production in Ukraine are - "Dokuchaevsky flux-dolomіtny combine”, “Komsomolsk Mine Group”, “Novotroitskoye Mine Group”, “Balaklava Mine Group", "Saki Construction Materials Plant", " Evpatoria Construction Materials Plant”, joint-stock company "Vidis”, joint-stock company “Seversky dolomite” [7].
Market structure by major manufacturers is shown in Figure 1.



Figure 1 - Structure of flux production market in Ukraine by the manufacturers

Ukraine has excess capacity of the limestone production , but output exceeds domestic needs. 60-70% of produced limestone are used in metallurgy, about 11% - in the sugar industry, the last - in the chemical and glass industries. Currently, the consumption of limestone in the Ukrainian Mining and Metallurgical Complex is 15-17 million tons per year [8].
"Dokuchaevsky flux-dolomite combine" - one of the largest ore-mining enterprises for the extraction and processing of limestone and dolomite flux in Ukraine. And it’s the only company in Ukraine which produce powders for converter refractories. The company has a production capacity of about 12 500 .ton per year. The share of "Dokuchaevsky flux-dolomite combine" on limestones and dolomites market of Ukraine is shown in Table 2.


Table 2 - Share of "DFDK" on the limestones and dolomites market of Ukraine


As we can see "Dokuchaevsky flux-dolomite combine" stably occupies one third of a flux and dolomite Ukraine market. Thus, we have shown that the Dokuchaevsky flux-dolomite combine is a major producer of flux and dolomite in the Ukraine. The company has a stable market share of around 33%. But the capacity are not used in full, which is particularly exacerbated in 2009, under the influence of the economic crisis, which led to a significant reduction in production volumes. In a situation of limited domestic market the company should strengthen marketing activities aimed at foreign markets. If you can not enhance the export performance is necessary to reduce production capacity.


Literatyre

  1. Совершенствование маркетинговой деятельности средних предприятий базовых отраслей промышленности. Автор: Куроедова Л.А., Ярым-Агаев А.Н. http://masters.donntu.ru/2009/fem/kuroedova/diss/index.htm
  2. Кужилева О.В Использование инструментов маркетинга на предприятии http://www.grtc.com.ua/stati/62-ispolzovanie-instrumentov-marketinga-na.html
  3. Маркетинговые принципы управления предприятием. Крутова Елена Алексеевна http://nbene.narod.ru/market/fmarket8.htm
  4. Официальный сайт ЧАО «Докучаевский флюсо-долмитный комбинат». http://www.dfdk.com.ua
  5. Котлер Ф., Армстронг Г., Сондерс Д., Вонг В. Основы маркетинга: Пер. с англ.-2-е европ.изд.- К.;М.;СПб.: Издат.дом. «Вильямс», 1998.-105с.
  6. Вапняк. Матеріал з Вікіпедії — вільної енциклопедії. . – URL: http://uk.wikipedia.org/wiki/%D0%92%D0%B0%D0%BF%D0%BD%D1%8F%D0%BA
  7. Cмида. На сайте представлена финансовая отчетнесть акционерных обществ Украины. http://smida.gov.ua/db/emitent/00191856
  8. Рынок известняка Украины. – URL: http://metallurgy.at.ua/news/2008-06-13-256

Note:

When was writing this abstract, the master’s qualification work is not completed. Date of final completion of work: December, 2010. Full text of the work and materials on a work theme can be received from the author or her scientific supervisor after that date.