potvorszki trans main

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Table of content1. Introduction 3

2. Brief history of construction and transportation 7

3. Current situation of the construction industry in Hungary8

4. Vision and Mission 10

4.1. Vision 10

4.2. Mission 10

5. ’Plazastop’ 13

6. Potvorszki Trans 15

7. Analyses 18

7.1. SWOT 18

7.2. BCG matrix 22

7.3. Ansoff 24

7.4. STP 27

7.4.1. Segmentation 27

7.4.2. Targeting 31

7.4.3. Positioning 32

7.5. Marketing mix 33

7.5.1. Product 33

7.5.2. Price 33

7.5.3. Place 33

7.5.4. Promotion 34

7.5.5. People 34

7.5.6. Process 34

7.5.7. Physical Evidence 35

7.6. Competitor analysis 36

7.7. STEEP 37

7.7.1. Social factors 37

7.7.1.1. Types of houses 37

7.7.2. Economic factors43

7.7.2.1. In general43

7.7.2.2. Non-residentials 45

7.7.2.3. Infrastructural 47

7.7.2.4. Pipes, telecommunication, electronic networks 48

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7.7.2.5. Summary 49

7.3. Political and environmental factors 52

7.3.1. Restrictions 52

7.4. Technological factors 53

7.5. Effects on transportation 54

7.6. Summary of negative effects 55

7.7. Summary 56

8. Strategies 57

8.1. Strategy Number 1 57

9. Strategy number 2 59

9.1. Construma 62

9.2. Financials62

9.3. Seasons 65

9.4. Future acts 67

9.4.1. Time management 68

9.5. Offline communication 70

9.5.1. Outdoor 70

9.5.2. Local newspaper 70

9.5.3. Business cards 71

9.6. Online communication 73

9.6.1. E-business cards 74

9.6.2. Webpage 75

9.6.2.1. Financials75

9.6.2.2. Design 76

9.6.3. LinkedIn 78

9.6.4. Facebook 81

9.6.5. AdWords 83

9.6.6. Budget planning 88

10. Summary 89

11. References 92

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1. Introduction

My thesis is going to be about the enterprise Potvorszki Trans dealing

with transporting and other work around the constructions from the basis of a house

to the garden and facing with many problems in this field. The entrepreneur is called

Attila Potvorszki with 3 employers.

This topic is included in a greater group of topics that nobody likes to

talk about. It seems that no one can find a solution to the problems of the small

entrepreneurs that causes silence about them. I would like to break this and find

something that might help and people will not feel embarrassing about it.

The reasons beside the above mentioned is my curiosity for the

Hungarian economy and that I want to make a simple business more profitable and

get through the problems like the price of the fuel what is just increasing while the

money for the work is decreasing. Plus the terms of payment what is usually for 2

months, but the entrepreneur has to pay the employers in time with all the other costs

like the fuel, the maintenance, reparation and other collateral costs.

After the change of the system many people created their own business. Almost all of

them were lorry drivers that time and the only way seemed to be to become

enterprisers in the field of transporting. Most of them lost everything during the

decades while others could not develop but only keep their vehicles.

Potvorszki Trans has almost nothing in marketing activities, only a little outdoor

marketing what is only in the village of the warehouse, where 2 boards represent the

enterprise itself with the relevant information. This way he cannot beat the

competitors who are working at the same price level and all of them try to lower their

prices to the minimum, but no one of them has an added value, what is going to be

presented in the thesis in the chapter of the marketing strategy.

The challenge is about to make a strategy plan to the enterprise with the

communication plan. As a third year college student I can experience the

consequences of my steps in the marketing world by working on a communication

plan with an entrepreneur and turn the plans into actions to see the results and learn

more in practice.

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At first I am going to write about the company’s vision and mission and

give an insight to the company’s activities.

After the vision and mission I will define the STP model for the enterprise. I will

analyze the segments and the possible targets to choose. Then I will position the

company concentrating on the strengths and pay attention to the weaknesses.

Then I am going to analyze the current situation in Hungary according to the

constructions and then see how things changed during the last few years in the part of

the STEEP analysis.

I will gather information about the subcontractors that were cheated and their actions

towards the prime contractor.

People foresee another crisis for 2013 because of the high prices of the

food, that has no good consequences and has an effect on the industry in Hungary

also. I will investigate the prophecies and see if there is any chance to run a business

in such a situation.

In the STEEP I will analyze the external effects, like the social,

technological, economic, environmental and political ones to avoid the strategic

surprises and to find the opportunities hiding and to make changes according to their

effects. I will search for the taxes related to this type of business to be more aware of

the threats and for a clearer understanding of the situation. Beside the taxes there are

the laws that can cause several restrictions to the running of the enterprise considered

as a gap or a fence that can be jumped over by the income earned. I will look them

up and gather them to know the threats all and be aware of every feature of the

business.

I will make a lot of researches with the help of the Hungarian Central Statistical

Office according to the construction statistics. Such as how many houses were built

during the last few years, how the crisis affected the Hungarian economy, and which

segment of the constructions had the smallest relapse and that would be the best

choice to make the business run and direct the enterprise to those or that segment. If

we target the most ‘popular’ segment with the most money invested in we can make

the business more profitable.

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Then I am going to make the SWOT analyses to know exactly the strengths,

weaknesses, opportunities and threats of the enterprise and draw a conclusion of

them.

I will make the marketing analyses starting with the BCG matrix to get to

know which service is the most profitable on the market, and which one should be

avoided. I will include all the services provided by the entrepreneur from the stars

through the question marks and the cash cows to the dying dogs.

After the Boston Consulting Group matrix I am going to make the Ansoff

matrix. At first I will analyze the condition of the market and then figure out a cure

to get on the road of growth. Using marketing activities to enhance the growth of

selling the services, make changes in order to satisfy the clients on the market or in

case of targeting new segments like in other parts of the country, making the changes

to fit to the clients’ expectations and needs.

I will study the data I gather and make a decision whether it is worth

to invest in new auto trucks or the change of the old and less used ones to vehicles

that might be stars. I will use the matrixes to help me decide which ones are more

efficient or the one that is the most efficient.

Depending on my previous researches and information, in Hungary there

is not seem to be any small enterprises that provide complex services , their activity

is focused on a single kind of service. This is why I thought I will work out a

strategy about the ability of the enterprise to specialize in a different way using all

the vehicles it has. If the enterprise communicates that it is different from the others

and can make more out of the work than the others. It says that the enterprise will

make the work from A to B, from digging the fund to a house to landscaping. So the

clients do not have to hire 3 different enterprises but only one.

I will analyze the possibilities of the mentioned strategy and compare it with the

strategy about targeting the less damaged branches of construction with analyzing the

connections and social capital.

Included in the strategy plan I will make a bypass to the field of

communication and develop the current one with more basic advertising tools that

are needed to get known by people.

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I am planning to make a Webpage, a Facebook page and use Google

AdWords to advertise and let people be aware of the business, and to expand the

territory and the market share. And naturally place more boards not only near to the

site, but in different locations in the neighborhood. There will be more outdoor

advertising not only where the vehicles are, but in more cities and towns to attract the

attention of more people and bigger companies. Beside the boards there will be a

need for online advertising with the use of Google AdWords, a Webpage with

relevant information, a short film about the enterprise and pictures of the work plus a

Facebook page.

These are under the umbrella of the online marketing, but the printed media can help

also to get the message to the people with the relevant magazines and newspapers.

When the plan is clear I will draw a conclusion about the actions so far of

the enterprise and the actions of the newly made strategy of the Potvorszki Trans.

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2. Brief history of constructions and transportation

The history of constructions goes back to Sándor Wekerle in 1908. In the

law of XXIX in 1908 he declared to help the interests and the welfare of the people.

He accomplished to liven the large-scale industry, firms were built and many

institutions were founded such as military, educational, economic, and cultural and

many more.

At the end of the XIX. century the population of Budapest duplicated, people from

the countryside and from other towns moved to the capital that claimed for place and

hands of blue collar workers. In the fall of the year 1908 the work had begun on the

constructions. [1.]

70% of the houses were one-storey buildings and the rest beard the tier-building

name.

Special technical and technological changes happened in the industry and until the

city had its image finally.

One of the most important parts of the constructions is the transportation. This key

action makes it possible to have the needed materials. The pace of the constructions

become faster and this required more transportation activities and the flexibility plus

the speed of them, thus different vehicles appeared in the market and later they

spread around.

The entrepreneurs and enterprises were the engines of this rapid development.

This action started in the antiquity when the merchant men spent packages on their

own risk and cost. [2.]

But the definition transporter appeared only in the middle age with the merchants

then they had the brandings of the transporters. An essential improvement happened

in the XIX. century with the appearance of the new inventions (steam-engine). Then

the railway had the main role and gained more transportation. This way more

companies came to life and this unit started to develop and this competition is

continuing nowadays.

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3. The current situation of the construction industry in Hungary

Figure 1: Development of the industrial and constructional production, of the foreign trade merchandise and the DGP

Source:http://hvg.hu/ingatlan/Vajon_egesz_Europaban_zuhan_az_epitoipar_va_BJ717P

[read: 2013.01.04.]

The diagram shows the data according to the European construction industry.

Poland and the Scandinavian countries become better but Ireland, Spain and Portugal

are falling.

On the International Construction Conference in Finland the statement was that the

average annual increase in Europe is 4,5-5 %. [5.]

In the EU Hungary has the highest decrease in this industrial field.

Compared to the datas in 2005, the production of the Hungarian construction

industry decreased to 65% while the Romanian was 138, the Polish was 174, the

Slovakian was 111 and the Slovenian was 85% in 2011. [5.]

From the year 2000 the Hungarian construction industry had its ups and downs. The

most powerful year was 2005 when the data in average reached the highest point.

Until then the industry was developing and almost in every year the rates were higher

http://hvg.hu/ingatlan/Vajon_egesz_Europaban_zuhan_az_epitoipar_va_BJ717P

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and higher. In 2005 the construction of the roads had the highest value during the

year, this had a huge effect on this field. From 2005 the average fell but some units

became higher like the building of railways, bridges and water management

facilities. These units became stronger after 2005 and all of them decreased from

2006 to 2007. From his year the setback was unstoppable. There was only one year

to the crisis that changed the things and worsened the facts.

From this time the economy and not only the construction industry rolled down the

slope but all the others were touched by it too. [3.]

In 2012 the chances were not low enough for the entrepreneurs to

survive; a new decree has been added to that called the plazastop. The data in 2012

according to the decreasing number of companies can be blamed on this new

restriction. In the third quarter of 2012 the number of the liquidation decreased, the

number of the companies was 1255 in the second quarter and 1076 in the third. This

was better than in the last 2 years. But it did not have a long duration. In this field the

numbers are changing constantly and in the last few years there is no progressive

tendency, only for just ‘5 minutes’. If an increase is observed and bring an illusion

alive it destroys it in seconds and do not let the faith in the economic improvement

flower. [4.]

So the last two years (2010-2011) were after the crisis and that time the economy

was about to revive. But the last quarter in 2012 the dice has turned and 1677

company closed in three months. Plus the foundation of new companies was far

behind the numbers of the previous years.

In the first 9 months of 2012 the production of the houses decreased by 20% and the

number of permissions were 12% less than in the previous year. In Budapest this

value became 58% less. This is only the house that has not been touched by the

plazastop but constantly decreasing. [7.]

The whole construction production fell by 5,3 % the buildings were less by 10% but

some other civil engineering divisions increased a little (about 1%).

For the next year according to the data from GKI the national investment

is about to grow by 2% that would mean better circumstances to the constructions.

[8.]

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4. Vision and Mission4.1. Vision

The vision of the Potvorszki Trans is about a profitable business that

everyone wants at the beginning of some kind of business. At the beginning it seems

obvious but as time passes by it becomes harder in such a situation and the

enterprises are satisfied with the minimal profit they can reach and get the work done

as they got used to it.

The vision of the enterprise was the satisfied client that can become ‘regular

customers’ and help the enterprise.

This is one of the most successful tools to keep the clients close and make them

loyal. That is why the vision starts with making them satisfy and loyal so that they

can be took for granted that can lead to magnetizing more clients via the word of

mouth tool and become more well-known in the area. The more clients opens the

door for more work and can help to run a more successful business that will lead to a

condition that afford to get through the fences easier ( law, decree, restrictions).

4.2. Mission

To reach the goals plans are needed. The strategy is going to be based on

previous researches and analyses that will take the features that the market requires

into consideration.

Based on the researches I made, a plan will be created about the future strategy that

will include the targets the enterprise should concentrate on to reach the goals.

The employees are qualified men that are in the profession for years and can make

the work the way it should be. This is the ingredient that cannot be left out or missed

from the business. Enthusiasm and dedication are the key features of the people

working for the entrepreneur so this way it is not the hardest thing to win the hearts

of the potential and give them what they want. Not only the qualification of the

workers is important but their personality also, that depends on the entrepreneur who

chooses them.

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Photo 1.: Scania 124C of Potvorszki Trans

Edited by Timea Potvorszki

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‘Armies (like businesses or any organization) are only as strong as the morale of

those who work within them.’ ( Terry Leahy: Management in 10 Words)[9.]

‘Morale is a state of mind.’ ( Marshall Viscount Slim: Defeat into Victory)[10.]

The channels of communication will be used to attract the attention of the clients and

let them know every detail they need to be sure about the enterprise and to trust in

what they see and hear. And later get to know all the advantages of this small

business.

There is going to be printed advertising in special newspapers and online

communication with the help of a webpage, the very popular Facebook and Google

AdWords as well.

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5. ’Plazastop’

In January 2012 a new decree comes alive called ‘Plazastop’ by the Hungarian

Parliament. This forbids the building of >300 m2 malls in Hungary until 2014. [13.]

In September 2012 the www.hvg.hu wrote about the results of this restriction. 108

requests for exemption from different industrial units (such as food, clothing,

catering) were the result but 51 of them were dismissed and 16 of them were waiting

for the answer. This showed that this decree is related to rather the food based units

and not only the international ones but the too big national companies also cannot get

the permissions. [11.]

Here are some exceptions also according to the nationality and the size of the newly

build malls but the real problem that it can cause many difficulties to the Hungarian

economy.

On one side there are the causes that called this decree alive that are the protection of

the environment, with only the smaller sizes and to save the clean areas. The other

cause is the protection of the retailers that can sell more if the big shopping centers

do not appear and steal the costumers from them. This must have been based on

researches that about the shopping habits of the people. [11.]

But on the other hand there are the disadvantages that have an effect on the whole

country and the infrastructure. For example there is the fact that these centers have

many employees in only one building and if they keep on building in Hungary it can

have a positive effect on the unemployment rate because more people could get a job

that would help Hungary. It would not be a step further but in this case that the

opposite thing is going to be accomplished, it is a step backwards that puts the

country deeper in the recession. The building of shopping malls, these employment

factories could improve the economic life of the country and stop Hungary from a

worse situation. [12.] [13.]

The other huge problem connects to the constructions in which the

Potvorszki Trans plays a role and the most related to my thesis. The constructions are

a very important factor of a country that tells a lot about it. It determines the

economic situation and gives work to the people not only inside of the buildings but

outside of them before it is ready to open its doors. It provides work and money to

different entrepreneurs from the beginning to the final inner works. The Potvorszki

http://www.hvg.hu/

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Trans worked for prime-contractors (e.g.the Asian Centre), so this stop has an effect

on his business.

The www.hir24.hu wrote at 17:44 on 21.11.2011. that the consequences are equal to

the situation in which all the flats would be stopped to build. In the same article they

wrote that for 2012 the decrease in the construction industry would be 10%. [12.]

This rate was different in 2012, to take a look at the whole year it is -7,6% in case of

the buildings and the edifices decreased by 4% according to the datas from the

www.ksh.hu. [14.]

This proves that the forecasts are not always right and that it is impossible to tell

what the future has in store exactly.

http://www.ksh.hu/

http://www.hir24.hu/

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6. Potvorszki Trans

The role of the Potvorszki Trans takes place in the construction industry

as an enterprise that works in the transportation sector.

Potvorszki Attila started his business with a Russian Kamaz in 1995 in

Domonyvölgy.

The features of the environment and the economy made it possible to buy another

next to the owned one and he bought his second Kamaz in 1997. I will bypass to the

statistics later on and show the reasons that that time there were more constructions

and more entrepreneurs also but the business men could live from that work.

Then when it came to millennium he sold both the vehicles and bought

an earthmover the so called JCB 4CX that was 8 years old that time. From the

income of the trucks he could cover the cost of the new comer and save a part of the

money for later. This earthmover was successful in the area and had made profit, far

more than the old Russian autotrucks.

After 4 years – in 2004 – the entrepreneur had bought a new MAN

27.343 from the money that the JCB earned and then in 2006 he bought a Scania

124P (with the weight of 24 tons). That time the economy made the best of it for an

entrepreneur such as Attila Potvorszki so that he could buy new vehicles in a shorter

period compared to the current situation. And the top of all these in one year after the

first MAN he bought another MAN but it was only a smaller brother of the previous

one.

That time he had a JCB 4CX, a Scania 124 P and two MAN vehicles at the same

time.

The reason why he bought the second MAN 8.163, the tent truck, was that he was

about to have some work at a Hungarian subsidiary (Hungaro-SLR) of the German

SLR Group. They offered him a part-time work that was about to make the profit and

earn much more than the price of the vehicle. After the contract had been made the

entrepreneur knew that it would have been worth the money he was going to invest.

The 90 % of the works on this smaller MAN was the work it was employed at the

company and the rest 10% was from removals.

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The business worked well that time and was the most successful in its life but then

came the crisis that almost made it collapsed.

In 2008 the entrepreneur had to buy a Volkswagen Caddy to carry the people to the

places where the vehicles worked to save their condition and it has a function of

carrying the fuel to the trucks so that they do not have to move from the workplace

and get to a station only stay where the work must be done.

When the work is far from the site, and the traveling would take hours with a JCB

that can go at the speed of 50 km/h the VW gets the people to the place and the

vehicle can overnight there. This is less costly because the Caddy consumes less than

the bigger and more weighted trucks. This car was also good for carrying the parts of

the trucks or to bring the wheels or any necessary parts that went wrong or new ones

are needed.

In 2009 he had to sell the small MAN because the work at the German subsidiary

was over and the removals were not the most popular movements of the humanity in

the middle of the crisis.

But the VW Caddy is a subsidiary tool in some ways. It also works for the German

company sometimes and takes care of the work that could have been given to the

MAN.

The entrepreneur changed the JCB to a newer one from the same type, but the new

was made in 2000 that is a very important feature of the vehicles according to the

problems that appear with the time. The newer the auto the less the problem that

prevents the added costs of repairing them.

Later in (January) 2011 the other MAN has been exiled because of the

costs of its maintenance. From the money of the sold MAN the enterprise became

richer with a Bobcat in the spring of 2012 that has no maintenance costs and it still

makes no losses when it just stands at the site with no work to do. The bright side of

this vehicle is that it has no additional costs like the autotrucks but can work when its

time comes and makes more profit compared to the other types from the proportion

point of view.

Still in 2012 the entrepreneur bought a Kamaz on a very cheap price. It is supposed

to do the ork in the kind of places where the Scania is too expensive for amortization

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and the Kamaz could not get hurt that easily or its repair is not that costly as in the

case of a newer and better vehicle.

Now, looking at the current situation the Potvorszki Trans has a Scania

124 P, a JCB 4CX, a Bobcat, two Kamaz and a Caddy.

Photo 2.: Machine Park of Potvorszki Trans


Every of them are good for other works that makes the business broader and can get

almost any kind of work with the devices.

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7. Analyses 7.1. SWOT analysis

STRENGTHS:quality of vehiclesemployersplaceexperiencecontactswell-knownwell-organizedthe strong middle

WEAKNESSES:number of vehicles seasonalitymarketing activities

OPPORTUNITIES: expansiongrowth

THREATS:no payment or only latertax systemjurisdiction

Figure 2. : Edited by Timea Potvorszki

Potvorszki Trans has a lot of advantages from its organization and how

the employee built it up.

Potvorszki Attila started his transferring career with the old Kamazes,

like everybody else in the 90’s beside the brand IFA and how the years passed he

started to buy the newer and more modern machines to take place in his business.

Now he has a Scania 124P with 24 tons with trailer, the so called Queen of the Road,

one of the best brands in lorries and trucks which is in very good condition. Plus a

JCB from the earthmover category, a Bobcat and a Volkswagen Caddy. These are

all quite new vehicles which can keep the business running.

And also the fact that the competitors have no quality trucks or nowadays their trucks

cannot be called working gears, because of their age. In the neighborhood there is

only one competitor who has better machines and a lot more in the same category,

but he is rather specified to transferring and not the sequences or landscaping, like

Potvorszki Attila does.

Potvorszki Attila has 3 employers, who are qualified and work on the different

machines, dependent on their qualification. These people are well chosen, they are

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enthusiastic and trustworthy and they always do what they are told to do and always

in time. The entrepreneur has almost only advantages out of its employers, except

only some rare cases. But if something goes wrong according to the trucks, it is not

always the fault of the human, but most times the machine itself as time passes.

Another factor is the location, the place where the entrepreneur keeps its lorries, and

the place of the site, what is near to his home, and he does not have to travel to reach

the vehicles, and so the employers live more or less near to the site what makes the

situation easier, and they do not have to travel 30 minutes to get to the place of the

gear to start the working day, and they do not have to be paid for the fuel. Another

thing comes from the location what is a part of the contacts, because the place of the

site is the place of the current town and the place of the childhood what leads to that,

that the entrepreneur has a lot of acquaintance from his past and a part of his work

comes from these connections and they are in the near for example in the

surrounding towns. Because he is one of the bests in the near and the one who has

the most relationships. Beside this there are the Lázár Brothers who offer a lot of

work, and keep the entrepreneur hired there.

During the years of the business, what started in 1988, Potvorszki Attila had time to

get experience in this field, and with working all over Hungary get more

acquaintances that can offer him to others, and use the word of mouth technique of

marketing what helps the most. Thus he can become more well-known and get more

opportunities to work.

The enterprise itself is well-organized, the entrepreneur makes his business the most

the way he can manage everything. He manages the phone calls, goes after the work,

and then when he has the plans and he places to go, he divides the work and inform

the others who has to go where by which vehicle and tries to split it the way it fits the

most to the people, and harmonize the machines with each other due to their

functions. (Some of them cannot work without another in some cases.)

These factors make the entrepreneur a player in the strong central field, which counts

good on the countryside especially in Gödöllő and in the surrounding towns.

On the other side there are the weaknesses, like the marketing activities.

The enterprise has only boards in Domonyvölgy, nowhere else, while it has work in

other towns and settlements, but increasing the number if the marketing vehicles

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would just increase the number of clients. Potvorszki Trans has the phone number on

its vehicles as an advertisement, but it is still not enough to be more popular.

There are some situations where the number of the machines is not the appropriate. It

happens when in winter they do not work, sometimes none of them, but sometimes 1

of them does (JCB) in case of snowfall. It is way too expensive to keep the machines

when they are not working, the most expensive vehicle is that one which has nothing

to do, it does not earn money but it has costs at the same time. So there are problem

when there are too much machine gears that are not working bot the collateral cost

has to be paid after them.

On the other side there is the other part of the problem, when the number of the

vehicles is not enough. This problem is sometimes guest in the summer, when in the

spring, all the people start something new and they need masters to build real estate

or any kind of building. It sounds good in itself, all the machines have a place to go

and work there, all the employees are working, but sometimes one vehicle has to be

present in two or more different places. In this case the employer has to organize

them, but most of the cases the clients are not flexible at all, and if the entrepreneur

does not spend the workers in time, then they will never have to go there again. The

clients have the possibility to choose from many, but the entrepreneur has only two

or three possibilities, and has to manage the problem.

The opportunities are to put the emphasis on the marketing activities, this

way the business can grow, at first it can have more clients then it can make more

profit and after it the entrepreneur can buy more vehicles, with more functions, to be

able to make more types of work. Or they could go the way of specialization and

broaden the machinery. After it the enterprise can expand through the country, and

get to more people, or it could undertake more work at the same time.

Or it can buy different vehicles and target different segments broaden the customer

group.

The threats are more dangerous than the weaknesses, because the

entrepreneur has nothing to do against them, and these functions do not seem to

change in the future, or in the next 10 years.

It starts with the tax system in Hungary where the transfer enterprises and companies

are the number one victims, because of the many restrictions.

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The National Transport Authority declared that if a lorry wants to go to some parts of

the capital, it has to claim permission for retortion what is about 3 days to arrange,

but the work has to be done in time and if the entrepreneur is called the day before

work (what is usual) he has no time to arrange the permission and from that moment

the possibility is gone.

Beside this the drivers has restrictions according to the hours of driving, they can

drive 4,5 hours for once then they have to stop for 30 minutes to have some rest after

it they can drive 4,5 hours again, but here it ends due to the 8 hours long rest, what is

from one point of view understandable, if people keep it, but on the other hand, if

someone carries asphalt, it has an expiration time, after what it cannot be used, and

the driver cannot get there in time, then the enterprise will be replaced.

Police means the other main problem; they are focused on the lorries and camions,

and rather on dumps. They punish the drivers if they have axle overweight what

means 300 000 < 1 000 000 HUF. But the drivers cannot always be aware of the

weight they carry because at some constructions there are no scales thus they cannot

measure the cargo and they can easily be punished.

Plus the freightages are low, they almost only cover the costs, because the prices

should be kept low and the price of the fuel is increasing continuously, the collateral

costs are coming plus the employees have to be paid in time even if the employer

does not get the money in the next two months or not at all.

Some of the entrusting companies report bankruptcy so that they do not have to pay

after all, and let the subcontractor die at the battlefield or they simply do not pay, the

money cannot get to the lower level of the pyramid, but the subcontractor has to

undertake the work and take the risk, otherwise there is no way to carry on the

business.

Due to the tax system and governmental issues there are less and less constructions

and people do not willing to build anything, thus the entrepreneur has no work, no

possibilities and no money to get further.

22

7.2. BCG matrix

STAR

Scania

Kamaz

QUESTION MARK

CASH COW

JCB CSX

DYING DOG

Bobcat

Figure 3. : Edited by Timea Potvorszki

In the business there are six vehicles, the Bobcat, the Scania (with a

trailer), the JCB CSX, the VW Caddy and the 2 Kamaz.

The usage of them depends on the seasons of the year and the restrictions according

to them.

In the ‘dying dog’ region there is the Bobcat. Its price was over 4 million

Hungarian forints but it has made no profit during the last year. However the reason

behind the purchase was not the money it can make within the shortest period. The

conception started when the entrepreneur sold the MAN autotruck and bought

instead the Bobcat with many advantages that the lorries do not own.

The Bobcat gains neither compulsory insurance nor weight tax, if it stands for a year

it only stands and consumes nothing (even the place is in own hands so there is no

fee for that). Even if it works two months per year it is worth it counter to the trucks

that always have something to pay after such as taxes that is usually a huge amount

plus all the other payments. This ‘product’ deserves a destiny that it will not be

harvested from the market due to its minimal collateral expenses.

This vehicle is used for smaller works where the JCB CSX cannot get to or so big

that it would cause more damage than benefit. It is also used for landscaping and

handing out rocks.

23

In this field there is another vehicle, this is a newcomer, another Kamaz,

but the difference between this and the owned one is that the new is younger, this is a

made in 2005 and a lot bigger one. This truck is a four axed and it owns a trailer like

the Scania.

Knowing that it is a fresh one and the entrepreneur bought it in February 2013, it had

no chance to prove its efficiency.

The ‘Star products’ are the autotrucks, the Scania and the 2 Kamaz

because they are the most profitable vehicles in the business from March until

November. These earn the most money but on the other hand there are the collateral

payments that change the balance. They can move to the star side but the restrictions

do not help to make it possible and worsen the situation. In the summer they can

reach the highest level when the business works harder and faster.

The facts tell that if the entrepreneur could buy a new vehicle, then this type is

getting better and gets more work, so they can make more profit if he invests in them

that shows that its way is growing.

But after November until spring these are like the ‘dying dogs’ because they also

bear the payments but they do not get paid at all. Sometimes there can be work but

they are so rare and not for a greater amount of money. This is the drawback of the

seasonal work and business.

The ‘cash cow’ is the JCB CSX that works a lot in the high season and

also in winter if the weather makes it possible. This type of vehicle is so similar to

the mentioned Bobcat. The common things in them are that they do not gain much

and do not eat up the money if they do not work but if they work they make money.

The JCB and the Bobcat do not demand technical test and taxes after their weight

and the top of all these they are not that expensive in case of compulsory insurance.

This machine will keep its position as long as it can, because of its low expenses.

24

7.3. Ansoff matrix

Market penetrationfunctions of:JCBScania - trailerVW CaddyBobcat2 Kamaz

Product development1 Kamaz 2 Kamaz

Market developmentfunctions of:JCBScania - trailerVW CaddyBobcat2 Kamaz

Diversification-

Figure 4.: Edited by Timea Potvorszki

Potvorszki Trans can decide whether to step into a new market with

something new or just stay in the current position without any modification.

The enterprise stays in the current position and chooses the way of

market penetration. It has its machines and their functions that are profitable in a way

and it is the easiest and safest way to stay on the ground. It can be supported by

marketing activities that may enhance the demand for them, like I mentioned in the

introductory part, like some online activities and more outdoor advertising. It can be

helped by a complete, well-designed and reliable webpage with the relevant

information showing the quality of work to attract the attention of the people and get

them hiring the entrepreneur.

The entrepreneur has the possibility to enter a new market with its own

machines; it could expand geographically and conquer the settlements around the

border of Hungary. He does not plan to expand his business outside the country, but

only within the borders of Hungary. The enterprise can make its own footsteps with

its existing vehicles, because they are almost all that he needs and uses in his

business. Every machine gear has different function except the Kamaz and Scania,

the Scania is capable to do all that the Kamaz can do but there is a need for work in

worse places where there is no asphalt or concrete or they are too old and in a bad

condition then not the Scania is spent, but the Kamaz what is undemanding and

cannot be hurt easily. But this expansion is possible with more vehicles only, because

25

if the automobile work far from the site, it cannot be driven home, but has to spend

more days at different location, this way they are out of the main area. Months ago

this was said by the entrepreneur as a reason not to expand geographically.

But now this problem was skipped by buying a new Kamaz in 2013 that can go

further and then 2 others can stay if new work comes and there will be no need to

borrow anything from the colleagues or having a dilemma about sending the vehicle

or not and this way losing some possibilities.

Before this year the entrepreneur and most of the colleges were planning

to buy new ones, but after the crisis all of them gave up on this idea and concentrated

on the available machines they had. The fact that the constructions ‘stopped’ after the

crisis really has an effect on all the enterprises in Hungary especially on this field.

And the other reason why it is not worth to invest in new machines is that when the

entrepreneur has its vehicles are busy or needs a vehicle with a different function like

an earthmover with a drill, ha can recommend a colleague and vice versa if the

colleague will need something, he will call the entrepreneur who helped him gave

him work. Thus without some specific machines the entrepreneur does not lose the

work, ha can count on the other colleges.

This is the situation with the product development; it would not worth to

buy new machines when they can count on others.

There is a hidden possibility that could help the enterprises that are near to each

other. They could make a guild to be more profitable. The usage of the vehicles

would be better; they could support each other and lend the machines if it is

necessary and the ‘members’ would earn more. This reduces the rate of not getting a

job because of the lack of the trucks; this way they can live with the advantage of

‘owning’ more machines and have a greater market share with the power of the

organization.

But there are some exceptions as the situations that gain some risk like

another enterprise is sinking because of some problem (that can be financial or even

private) they supply the machines on a cheaper price that would be a mistake to miss.

If an enterprise sells the vehicles they can easily eaten up by the wolves of this

market and buy them far lower the normal price. This is the time when nobody plans

to buy anything to develop the products but will develop that if the chance comes.

26

The diversification is a too big step for any of the small enterprises in the

near that are the competitors of the Potvorszki Trans, because it can easily fall and

that would mean the end of the enterprise. No one has the needed amount of money

that could start a diversification or if yes, and this step turns to failure that would be

too risky. [15.]

27

7.4. STP

7.4.1. Segmentation

As I mentioned before the enterprise did not deal with any kind of

marketing, it did not consider the target groups, the potentials or to whom to send the

message. It just existed through the word of mouth form and did not care about the

other ways of communication with the clients or the potential clients.

The current groups of clients are the bigger companies and private

people.

The companies are aware of the enterprise by other companies or by contacts, like a

friend of a family member.

These companies are Hungarian and international as well, like the German

engineering Ltd., the H-SLR who gives only transfer possibilities, but most of the

other companies are dealing with greater investments such as drain aging and road

constructions.

The most common partners in drain aging are the Fémszerkezet Ltd. and

the Alterra Építőipari Ltd. and in road construction the partners are Swietelski and

the Magyar Aszfalt Ltd. The other part of the work comes from the contacts like the

Lázár Horse Park in Domonyvölgy where the entrepreneur has his site and the

Mayor’s office in Domony what lays right next to Domonyvölgy.

The other group is the group of private people who are rather from the neighborhood

of the entrepreneur and are at the age of 30-50, those who have money to build their

own house like the 30 years old people.

They are aware of the enterprise and its quality of work from the neighbors who

recommend Potvorszki Attila to others.

In case of segmentation the most important groups remain the same;

these will be the companies and private people as well.

There are different segments to choose as the target market. The most important

thing is that they have to be involved in the construction activities and those who are

willing to or about to build.

28

One of the main activities is the transporting that can target not only those who are

close to build but those who have anything to be transferred to somewhere, such as

parts or rubble.

The different activities or functions can target different people.

The first group is the companies and enterprises who deal with constructions. This

contain more different groups, such as those who work in the field of road

construction, then those who work with building constructions and those who deal

with channeling.

There are some crossovers in case of the activities of these businesses; they can work

with almost the same vehicles.

The road construction is the business that fits the most to the Potvorszki

Trans according to its activities. At a road construction all the vehicles of the

entrepreneur can be used from the Scania and its trailer what can carry 13,14 tons of

material per one freight what makes the work faster. Here can be the best advantage

taken of the carry. Then the earthmover what has the main function in fixing the

ground as the base for the road itself. Here the Kamaz can be used for carrying the

rough material taken away.

At the constructions of buildings like big shopping malls, also the Scania,

the earthmover, the Kama3 can be used, for the same goals, but here there is work

with landscaping around the buildings for what the most efficient is the JCB itself, so

here the earthmover has the main role.

In case of constructions more or less the same functions are needed and the same

vehicles, because at the beginning the pre-works are so similar, they always start

from the ground and the base. [16.]

ROAD AND RAILWAY CONSTRUCTIONS

In the case of the road works the most common task is the earth transport

that can be done by the Scania and the Kamaz, these two vehicles have the majority

of the work. The JCB and the Bobcat are for landscaping that prevents the mentioned

work.

29

CHANNELING

On this field the work is done by the Scania, Kamaz and the JCB. The

trucks bear the work of transportation of any king of good and the JCB is for the

works around the working place.

SHOPPING MALLS

In case of this kind of constructions the role of the smaller landscaping

machines is bigger than at the previous ones, but still the Scania and the Kamaz have

their own shares and are the empires on the constructions. The JCB is good at

working on the land before it is used for the construction and the work after that

when the environment must be done.

Everywhere the construction starts with the transportation of the needed products that

cannot be neglected. The most common function of the enterprise is the carry of

goods that needs the Scania and the Kamaz (the trucks) and the landscaping requires

the JCB and the smaller brother, the Bobcat that is quite small for this bigger works.

The next segment in the group of those companies who make B2B activities and

want someone to carry the parts or some material to their partner whether it is in

Hungary or abroad (in Europe).

HUMAN POWER

This work requires, at first, good drivers. People, who drive auto trucks

have to be better than the usual people owning driving license (the appropriate

category) but they have to face the physical consequences of carrying the goods

across miles and their effect on the trucks. Any kind of problem can occur such as a

flat tire that can cause many damages not only to the vehicle but to the carried

material.

The employees have to be circumspect and enthusiastic but above them he has to be

conscientious. He has to do the work responsibly because the quality of his work is

the core for the building and if the ground is instable that can cause serious accidents.

Several types of companies are working on different constructions, some

of them are building railways, others roads, others pipes or telecommunication and

electronic networks or some of them work on public buildings. But in a case of a

small enterprise this is not a problem due to the fact that the entrepreneur is not

30

responsible for the work that needs experience and professionals because he does the

job he is supposed and fulfills the orders given by the experts. So here there are

different segments according to the type of work but from the real work’s point of

view it is negligible, because the employees of the Potvorszki Trans do the same

working processes everywhere. [16.]

POSSIBILITY IN PRIVATE MARKET

Then comes the private people, who have surplus things and want to get

rid of them, these are like infield or gravel after a construction. These people can

have a need for all the machines or functions of them, from the very beginning; from

the digging the base and landscaping. So on this field the earthmover is the most

popular or the Bobcat for smaller places and gardens.

These people are rather between 30-55 who have the money to build their own

houses and have their own residence and not the type of ‘moving to a flat’ people.

[16.]

31

7.4.2. Targeting

The companies in the field of constructions are a good choice because of the use of

the vehicles, that are utilized the most here. The entrepreneur can take the advantage

of his machines, because two of them have a lot to do with this business and the

others are useful here. Here out of 5 vehicles are least 3 can be used for

transportation and two others can be used for landscaping (one is in general and the

other is for smaller spaces).

The group of private people contains people who are about to build and those to

whom the look of the garden and the land is important, and enjoy the nature. They

need reliable people that they can trust, and they care about the quality of the work

and they seem to build more and some extras around the house like a garage. Here

also a great percent of the functions can be used completely what makes it worth to

invest in this group. [16.]

POSSIBILITIES

In case of the B2B companies, they need the VW Caddy to carry the different parts,

or the Scania and Kama3 for the freight of other kind of material like asphalt or

gravel. Here more vehicles can be used but for a smaller works. They are an efficient

target group because three out of five machines can be used there.

The group of private people is not worth to invest in because according to the data I

used in during the analyses the dwelling constructions do not go the way that leads to

a richer future, they are getting lower and if the forecasts are trustworthy then in

2013 this situation is barely going to get better. This group is out of the consideration

region.

The civil engineering constructions are in a bit better situation, in 2010 they got

lower but from the second half of that year it keeps a standard position. The non-

residential buildings did not damage too much and they have the biggest share in that

industry. But adding up every unit, except the residential buildings, form a greater

possibility to target, because they showed a better tendency during the years.

32

7.4.3. Positioning

This service providing enterprise has started in 1994 in Domonyvölgy

with a Kama3 (80’) and only the entrepreneur. He was doing the business for three

years alone then his brother joined the enterprise and he bought another Kama3 for

the employer to work with in 1997. Than in 2001 Potvorszki Attila has started to

work on the development of the business, he bought his first JCB 4CX and in 2003

he sold the older Kama3 and in the same year he bought a MAN 6*6 (6 drive wheel)

in good condition and in 2005 the other Kama3 has been sold and the Scania was the

new comer and the younger Kama3 left the business. In 2007 Potvorszki Attila

bought a another MAN tent truck with a contract to a company (H-SLR) for 2 years

what expired in 2010 and he sold it because there was no work ad demand for the

vehicle. After it in 2008 the JCB was changed to another JCB the same type but 9

years younger. A VW Caddy came in 2009 with ½ tons capacity. In 2010 December

due to the less working possibilities he sold the MAN and in the same year he bought

a Bobcat. In 2011 he expanded with a trailer and in 2011 he bought another Kama3.

In 1997 the brother of Potvorszki Attila joined the enterprise and got an

own vehicle and after it has been sold he worked on the big MAN and after the MAN

he worked on the Scania. In 2007 Juhász Ferenc joined the business on the MAN

ponyvás and after he had the Scania before Potvorszki Tamás.

33

7.5. Marketing mix7.5.1. Product (business activities)

The quality is strong compared to the others’ and its value counts on the

market. The entrepreneur has better vehicles that go along with the chance to do a

better work.

The range of the services is broad, it includes the following activities:

Transportation of goods in bulk, roadbed stone, stone, aggregate filler, soil, filling of

land, sand, concrete, concrete rubble, gravel, decorative stones.

Furthermore: mechanical excavation, basement lift blocks, road mirror preparation,

loading, landscaping, demolition.

7.5.2. Price

The business started with the competitor-based pricing strategy and keeps

using it until nowadays that is the most affective. In this field the prices cannot be

more than the average when everyone is fighting for survival and try everything to

get the work and the clients. As all the others Potvorszki Trans tries to build up the

prices to be the lowest possible but to earn profit also.

7.5.3. Place

The enterprise functions where it has work. It can be within the borders

of Hungary or next to the frontiers outside of the country. The enterprise is

everywhere in the country and sells the services all over it, there are no exceptions or

left out towns or villages. The work must be done anywhere it is, and the enterprise

goes to the predetermined place. It has no sites everywhere to make the work with

distance easier but that would need more vehicles from the same category but the

distance is paid also but it is not attractive for the clients.

The most realistic solution is that the enterprise targets the nearest places and not

those that are far away from the site, because it is irrelevant and makes loss and time.

34

7.5.4. Promotion

TODAY

The enterprise does not have many things to do with advertising. It has 2

boards in the village of the site on the countryside that no one sees but the population

of the village who are aware of the business and know it from years.

FUTURE

It is better to advertise in the region that is about to be the target and that seems the

more effective and flowering place, but not so far from the site. There were examples

of appearance in newspapers but it seemed too expensive to spend on it, so it stopped

but a restart with reconsideration can help the enterprise to grow and gain more

clients.

In case of print media the enterprise needs improvement and according to other kinds

of media vehicles it needs a fresh start.

7.5.5. People (human-factor)

The employees of the enterprise know their job and are qualified in their

field of work. They are one of the most important ingredients of a business, the

clients decide upon their experiences in connection with the workers. If this work is

not done well, the costumers will not ask for them anymore and the business will go

the way of depression. Not only the quality of job is important but the personality of

the employees that get in touch with the contractors and they better have a positive

effect. Anyone can do a job right but the personality counts also and it can tighten the

circle of the potential enterprises. According to this factor the enterprise is in a good

position compared to some of the competitors.

7.5.6. Process

The process of service delivery depends on the service. Sometime it is

slower but the client does not feel it only the entrepreneur when it comes to the time

of an earthmover, its pace is slower and the way seems longer to the working place.

The trucks arrive in time always, they count with the traffic jams and with the many

years of experiences they know the features of time and ways.

35

7.5.7. Physical evidence

Mostly the impression is dependent on the look of the vehicle that

appears and works at a construction. Everyone wants a good looking machine to

work for them because that gives a little bit more elite look to them and attracts the

attention of people. In the Potvorszki Trans there are good looking and attractive

vehicles that are new and have a brand except only one Kamaz that is older but it has

its own functions. [15.]

36

7.6. Competitor analysis

The competitors are rather those who started their business in the near

and did not but had the possibility to develop. In the surrounding settlements there

are ‘competitors’ like Mészáros István, who is really weak in the case of the vehicles,

he has only 2 machines, one is a Bobcat what can be a competitor in itself, because it

can spin in 360 degree, while Potvorszki Attila’s machine bears only 180. But on the

other the other machine he has is a Liaz, a very old one in bad condition and he has

no carriage license, and this is the reason why he can go below the minimum price

level and is employed by some potential clients.

In Kartal there is the Lados Trans, one of those who survived and developed during

the years. He has a MAN with 4 axles, a Volvo and an Iveco that are quality

vehicles. He works rather on the same price level but he advertises himself on

apronet.hu.

In Gödöllő there is another competitor that is the Kele Trans, the entrepreneur works

with his sons on the same price as Potvorszki Trans. They have a truck, type: MAN

and a Kama3 like Potvorszki Trans, but MAN truck of Kele Trans is older than the

Scania of Potvorszki Trans, the two trucks has the same function. He has a

Caterpillar earthmover on the other side of the scale competing with the JCB.

But these competitors has only 2 functions or less, not like the Potvorszki Trans, but

they all work with the same prices.

According to the vehicles, they are in very good conditions, not like the

others (except the Lados Trans who works only with trucks no earthmover of other

machine) and they can do different things due to their functions. The Potvorszki

Trans undertakes transporting of gravel, infield, asphalt and rocks. It undertakes

landscaping with 2 vehicles, channeling, plumbing digging, basement digging, stats,

transporting of iron parts, base band digging and so on. This enterprise is developed

than all the others in the area but if it comes to broaden the boarders to the direction

of the city it becomes harder because of the big companies. [16.]

37

7.7. STEEP

7.7.1. Social factors

The social factors are rather the human beings and their habits according

to the constructions what keep the business of the transfer enterprises and companies

going. Some of them are bounded by their income and financial issues not only their

personality, and they may want to move and build but they do not have the financial

fund for that. But this can be blamed on the economic factors too, that the situation in

Hungary barely let people create their own residence. [15.]

The youngsters are more willing to follow their own notion and to live the way they

imagined and for that they need a house they imagined to live in. People prefer to

live in detached houses with gardens and not with many other people in one block.

But the problem starts with their income, if they cannot built up an own house, they

move to a flat or they live with someone else like a family member or a friend.

Young generations have the willingness to move, some of them leave the country

and some of them are too mobile to invest in a house, to rent a flat is worth more

than to build or buy an own one. If they build that supports the industry but if they

only just buy a used one, it has no positive effect according to the constructions.

A typical example is the Hotel Mama, those who are able to buy or build a new

house and have their salary is more than enough, rather live comfortable than

independently or support the economic situation or the situation of the construction

industry. [17.]

Social factor can be the style, if people enjoy the nature or natural outlook of the

garden they spend more money on that and invest more to get what they want what

would boost the business of the enterprises such as the Potvorszki Trans.

This action is specific to the older generations with own life who have earned the

money that can be invested.

7.7.1.1. Types of houses

The following diagrams show the habits but rather the possibilities and

the affordable types of houses that people build. This shows the value of the

production of the constructions in Hungary during the last decade.

38

Taking the three most common types of the houses – these are the one apartment

type, the two or more apartments type and the community houses.

The early 2000s:

In 2000 the amount of money spent on the construction of residential

buildings was close to 60 000, but in 2001 this amount doubled but according to the

rates of the different types, they changed the following way. The amount spent on

the community building became 3times greater but the two others did not grow this

much, they grew by less than 50%. Looking at the proportions the community

buildings own a greater share than in the last year in 2000, by numbers it was 15% in

2000 and 21% in 2001.

The community buildings started to develop and run on the market at a higher speed

than the two other type, but those also grew.

Figure 5.: Residential buildings in 2000

14031;24%

36461;61%

9 202;1

5%

Single buildingsTwo or more apartmentCommunity buildings

Edited by Timea Potvorszki Edited by Timea Potvorszki

This time the Potvorszki Trans had work, the market was in the spotlight

that is shown by the change from 2000 to 2001 in numbers. There was no need to

search for the market, because there was enough place for the Potvorszki Trans and

its fellows to survive.

23835;19

%

74716;60%

26016;21

%

Single buildingsKét- és annál több lakásos épületekKözösségi lakóépületek


39

The crisis:

In 2008 the community buildings dropped and lost their empire plus the focus was

placed on the residential parks that was worth too invest in. During the crisis that

started in 2008 and the economy indicated it in 2009, and the type that was very

favorable, set back but it still had the greatest share in among the residential

buildings.

The family houses also had a higher amount of money but this growth is at a slower

pace until 2008 and in 2009 it also had less investment. [18.]


32,175

113,780

11,785


Edited by Timea Potvorszki Edited by Timea Potvorszki

During the crisis everyone had difficulties due to the changes in the

investments and the constructions all over Hungary and the increasing number of

entrepreneurs. The number of the players grew thus the shares fell back and that was

worsen by the fact that the economy was in a bad condition. The Potvorszki Trans

survived this and kept on doing the business with less or different vehicles that

seemed less costly and profitable in some ways.


30,379

92,998

11,164


40

The present:

Figure 9: Residential buildings in 2011

26,874

52,933

15,001



After the crisis in 2011 the community houses kept on growing but at a

lower speed and the single houses started to follow this example and grew by 19,3 %

after a depression of -26 %.

Between the two types the buildings decreased but on a lower level, that can lead to

growth later.

The single houses had a depression until the end of 2010 and started to revive in

2011.

In the case of the community buildings a scale can be observed, that comes from the

top, has a deepest point but goes upper again. Not like the buildings with more flats,

they decrease constantly from 2007.

In 2012 the tendencies did not change much, the things kept on going like in the

previous years, the production decreased. On the battlefield of the houses the

situation is not favorable according to the first 3 quarters of the year 2012. The

number of the houses built was 20% less than in the previous year, even the permits

decreased by 12% . [20.]

In 2012, divided by the types of building the production formed the following.

The family houses decreased by 13% . From 2009 to 2010 it dropped by about 26%

but the following year it increased by 15% (2010-2011) and then it had a 13% loss

for 2012.

41

The multi-storey buildings also dropped by 45 % that is one of the most extreme

changes during the past years but this type was increasing until 2011 from 2008.

[18.]

The residential parks increased by 16% that showed deterioration from 2004 but in

2012 according to the data from the www.ksh.hu. [19.]

The Potvorszki Trans did not get well after the crisis, its mandates did not increased

during the last years and its communication also did not developed. This small

enterprise clearly reflects the situation of the economy with the decreases also in the

possibilities and the increase in the costs. This does not seem to change in the future

(according to the forecasts) that claims some communication activities that let the

target know about the Potvorszki Trans.

SUMMARIZED

Figure 10.: Summary of the residential buildings 2000-2011

20002002

20042006

20082010

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Single buildingsTwo or more apartmentCommunity build-ings


Source: http://www.ksh.hu/docs/hun/xstadat/xstadat_eves/i_oe003b.html

This scale shows the investment in the houses built in one picture. It

shows that the most popular was the building with two or more parts but on the other

hand it had the greatest depression from 2006.

As the red line started to go down the other two went up.

The other two types were not that popular during the years but they started to

increase in the last three years.

http://www.ksh.hu/

42

The single apartments show a more aggressive increase than the community

buildings but the community buildings is slower, longer and can be more certain.

The residential buildings dropped in 2012 so the social factors do not

make the entrepreneurs hope for the improvement. The residential buildings are a

great part of the construction industry and if they do not develop, it causes many

problems to the companies dealing with this kind of activities and the enterprises that

work for them. The small enterprises will suffer if there is no demand, because their

number is more than the amount that the companies can supply thus they will not

have enough work to do. [20.]

The construction industry writes the future and present of the sub-contractors, it has

to develop to feed those who are in the business. The industry provide work to the

bigger companies that have their profit, but on the lower level of the ladder the

smaller ones get fewer from the industry because it has to get through the upper

levels. The worse the condition, the more the big companies cheat. They can use the

smaller ones as a shield in the hard times as they worn out and then throw them away

when it is time to pay for their work.

But in the early 2000 there were more investment in this field and the small

enterprises gained more profit, but still far less than those who were above them, but

this time the business was smoother. That times things went better and it could be

seen on the SMEs too.

The dwelling constructions in Hungary do not perform so well compared to the civil

engineering. But the civil engineering has more sub-groups that require different

types of companies and their experience according to the work. But in case of small

entrepreneurs it is not a point of view because they can be hired by several big

companies because the experience requiring work is not their business but the

companies’, they just follow the orders and ‘participate’.

43

7.7.2. Economic factors

7.7.2.1. In general

The economy in Hungary experienced the crisis too in 2008 and 2009. The effects

can be observed in case of the statistics that the values decreased from 2009 when the

citizens realized the importance of what they had before and knew that it can be more

in the future.

The following is a chart about the investments in national economy that shows how

the crisis bended the curve and destroyed the upward situation.

1985 1990 1995 2000 2005 2010 20150.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

Figure 11.: Investments in national economy (billions of HUF)

Editd by Timea Potvorszki


From 1990 the percentage of investments were increasing until 2008

until the year of the crisis and then in 2009 it started to decrease and a lot less were

invested in the economy what had an effect on the enterprises and companies as well.

In 2012 the values of constructions had reached their lowest numbers they were 5,9%

less than the previous year’s values. But in December this started to work, this time

the decrease was 3,1% which is about the half of the annual data.

In the following chart it is clearly seen that the civil engineering unit started to grow

during the last year as the buildings decreased again. From the fourth quarter of 2010

the civil engineering goes on a consistent path and do not show great setback while

the other type does.

44

Source: www.ksh.hu, Gyorstájékoztató, Az építőipari termelés augusztusban 5,3%-kal csökkent (Építőipar, 2012. augusztus) Közzététel: 2012. október 15., Sorszám: 160, Read: 2013.02.05. [40.]

BUILDINGS

The following chart shows how the industry performed in 2012.

1 2 30.0

5.0

10.0

15.0

20.0

25.0

30.0

20082009201020112012

Figure 12.Edited by Timea PotvorszkiSource: http://www.ksh.hu/docs/hun/xstadat/xstadat_eves/i_oe003b.html

http://www.ksh.hu/

45

This diagram shows the first three quarters of the last five years from 2008 to 2012.

The years are represented by colors; the y axe tells about the values in billions of

HUF and the axe x shows the quarters of the years. The tendencies within the years

are changing. In 2008 the seasonality can be seen that in the summer and springtime

the business is more active, but from 2009 the crisis had its traces on Hungary but

then in 2010 the production was almost equal in every quarter. In 2011 the

springtime was more effective than the summertime and both were less productive

than the wintertime.

All in one number this is an almost 20% decrease that is almost the same as in the

case of the permits issued from 2011 to 2012. They are directly proportional (change

in permits and houses) so the two setbacks has an effect on the future constructions,

the permits show that only less of them will be issued in the future that restrict the

constructions and the houses that are going to be used is going to be less again.

These changes had a huge effect on the Potvorszki Trans, the business experienced

the same path, and got less work and money. These features made the business less

successful that resulted in the development of the machine park. There was no

example of buying new machines, only used ones, but this did not count considering

the technological issues. (Still in a good condition.)

7.7.2.2. Non-residentials

In the building industry there are several branches that can be potentials

for enterprises such as the Potvorszki Trans and can be targeted if they seem to be

more profitable than the others.

Here is the analysis of the different fields that are the hotels and hostels

and all the building that provide accommodation to people, the magisterial buildings,

the wholesale and retail buildings, infrastructural and news release buildings,

industrial building and warehouses, buildings that meant to be for entertaining,

education and medical science and the last type is for other civil engineering.

From the types of the buildings the industrial buildings and warehouses

had the highest values in this, which is why I have made a chart for this type, so that

the changes can be seen in a clearer view.

46

2,0002,001

2,0022,003

2,0042,005

2,0062,007

2,0082,009

2,0102,011

0

50,000

100,000

150,000

200,000

250,000

industrial buildings

buildings

Figure 13.



This is the field that brought some profit to the Potvorszki Trans and

made the business more profitable during the past years unless when it was not at the

top of the industrial activities. During 2000 this field was about to grow but still it

did not create much work for the entrepreneurs, but this time the Potvorszki Trans

was only a very young pupil with only a newly bought earthmover until 2004.

This kind of constructions gain the earthmover, and the Potvorszki Trans has two of

them, different types (a smaller and a great one) that can show that this time it was a

target that made the entrepreneur buy the most needed machines that most of the

truck owners do not have. This was one of the main ingredients of the plans on the

future actions.

47

7.7.2.3. Infrastructural

The next branch is about the infrastructure from 2000 to 2011. Again, the

first column includes the types and the values stand for the money spent on the built

ones.

2 000 2 001 2 002 2 003 2 004 2 005

Roads 79 458 104 282 183 702 162 816 218 390364 918

Railways 26 177 18 734 19 493 29 837 22 364 23 860Airport runways 131 514 2 180 4 315 1 406 970Bridges, underpasses, tunnels, overpass 15 514 16 262 26 681 28 980 37 448 75 842Harbours, water passes, dams, water management facilities 16 624 21 795 21 857 18 874 13 475 14 837

Infrastucture total 137 904 161 587 253 914 244 822 293 082480 426

Figure 14.


2 006 2 007 2 008 2 009 2 010 2 011

Roads 320 912 189 447 160 646 247 896 176 928140 726

Railways 43 103 40 619 50 453 65 373 48 300 64 240Airport runways 1 534 316 357 723 199 29Bridges, underpasses, tunnels, overpass 89 657 70 971 62 502 84 494 30 122 39 513Harbours, water passes, dams, water management facilities 19 999 19 790 13 234 15 937 22 055 37 456

Infrastucture total 475 205 321 143 287 192 414 423 277 604281 965

Figure 15.


In the early 2000, this field was not on the top and that can be seen on the enterprise

that that time it had so many things to improve in the business. But the infrastructural

constructions started to develop and this helped and pushed the enterprise towards

the future.

In 2005 and 2006 the infrastructural constructions had the best time and it can be

seen on the Potvorszki Trans that bought a new vehicle this time, the ‘breakthrough’,

the Scania 124P that is the most expensive machine on the site. These kinds of work

48

helped to develop the machine park that led to further development and save the

business in tough times. In 2006 the enterprise was in a really good condition

because of the work this field provided in 2005 and 2006, that is proved by the

Scania. It is true that the more the work is, the more the money the smaller partners

get. The main clients worked in this field and could give possibilities to the

Potvorszki Trans to grow and be profitable. This can be seen on the equipment that

were bought this time and the reason why they were purchased.

The Airport runways had the smallest share among the types and it is not

going to develop taking the Hungarian situation according to the Hungarian and

MALÉV flights into consideration. The second from the back is the harbors and

everything that is connected to the water transportation and those kinds of buildings.

These do not seem to increase in the future, so these are not worth to invest in.

The best place belongs to the roads in every year and on average too however this

field is getting lower. The railways are getting better from 2009 however the tunnels

and underpasses had a greater average during the years it shows a better increase

from 2009 and before the crisis it was in a less favorable situation. The tunnels had

increase and decrease sometimes and it was always changing thus it is not the most

reliable type.

7.7.2.4. Pipes, telecommunication, electronic networks

The last part of the buildings is the pipes and the electronic networks split

into two groups, the local and long-distance ones.

2000 2007 2011Long-distance pipes, telekommunictaions and electronic networks 20 898 54 571 47 899

Local pipes, telekommunictaions and electronic networks 80 481 107 998 131 907

Pipes, telekommunictaions and electronic networks in total 101 379 162 569 179 806

Figure 16.


49

For the first sight it can be seen that the local pipes are far more than the long-

distance partners and compared to the total number it is about 1:4. But from 2006 to

2007 the long-distance pipes had a greater growth and in that time the local ones

started to decrease.

The pipes and networks barely had an effect on the Potvorszki Trans, this did not live

its best in the early 2000s when the enterprise built up the business and bought most

of the machines. This field could be profitable in 2010 but in 2011 the MAN had to

be exiled because of the costs and a new machine came in exchange, a lower valued

Bobcat.

7.7.2.5. Summary

The next table will show the sub-branches of these buildings and give the

information about which group is the leader. It contains the residential and non-

residential buildings, the infrastructural buildings and the pipes.

2000 2001 2002 2003 2004 2005 2006

residential buildings

59 694 124 566 141 325 159 697 185 474 170 266 192 017

non-residential buildings

337 415 346 563 409 343 436 157 444 822 499 348 559 804

infrastructural buildings

137 904 161 587 253 914 244 822 293 082 480 426 475 205

pipes 101 379 132 422 134 199 130 310 137 794 139 578 150 794

others 281 495 342 017 438 491 463 502 523 605 721 117 783 534

total 678 603 813 147 989 159 1 059 356 1 153 900 1 390 731 1 535 355

Figure 17.


50

2007 2008 2009 2010 2011residential buildings

183 171 157 740 134 541 101 158 94 808

non-residential buildings

569 071 638 398 492 736 490 073 501 427

infrastructural buildings

321 143 287 192 414 423 277 604 281 965

pipes 162 569 171 304 156 832 180 233 179 806

others 617 292 604 773 149 361 583 374 606 512

total 1 369 534 1 400 910 1 347 893 1 174 607 1 202 747

Figure 18.


This table has all the data in groups and shows which one of them was

the most successful during the years.

The most successful group is the non-residential buildings that did start to increase

after the crisis and it has the greatest share compared to all the others. It takes almost

the half of the total buildings and rises also, so the combination of these two factors

makes it worth to work for. And within this the industrial buildings were had the

greatest numbers that is all of the above.

In 2012 in case of the buildings versus civil engineering, the buildings fell by 7,6 %

and the rest only by 4%. [21.]

In October the buildings fell by 0,3 % compared to the same month the year before

but the others (roads, railways, wires) increased by 2,7% according to the article of

the Gazdasági Rádió online. [23.]

There is no data available according to the units of the civil engineering yet.

2008 was the best year in according to the investments in national

economy when the investments reached the amount of an almost 6000 billion of

HUF. This time the economy flowered and gave work to the contractors from the

beginning to the end. This time the Potvorszki Trans had a favorable situation and

worked on many constructions that were provided by the state. The flowering was

observed in case of the industrial buildings that helped to be profitable for the

partners. The amount of work was more and it could be easily split up between them

http://www.ksh.hu/docs/hun/xstadat/xstadat_eves/i_oe003b.html

51

and most of them could make profit out of the constructions. This year was the

beginning of the crisis that made the good time really hard and the work became less

that had sealed the destiny of the companies and the SMEs. [19.]

52

7.3. Political and environmental factors

7.3.1. Restrictions according to the safety and controlling of transporting

Beside the above mentioned factors there are the political issues, what are strict, and

declare taxes what can be barely paid. The permissions and restrictions to the weight

that can be carried are not changeable, so the driver has to bend his head in front of

the law.

TOLL

In the early times there was only one toll for the motorways, but things

have changed and costs become greater and they multiplied.

According to the regulation in 2007 ( 36/2007 GKM decree, 37/2007 GKM decree)

toll was prescribed for roads and highways also for the type of D2, D3 and D4

vehicles. [25.] [26.]

From March 1, 2008 another toll was prescribed for the vehicles that

drive in the capital of Hungary. The only gate to the work in Budapest is asking for

permission to drive in. These are to protect the environment from the smog and voice

that shared by the lorries and the ‘pure’ city from the poisoning gas. [24.]

In 2013 there is going to be a new toll for the future that will pour salt to the wound

and get more entrepreneur off the market. This usage-based toll will be from July 1,

2013 and gains 65 HUF per km on any kind of road outside the populated area.

ADMINISTRATION FEES

In the 261/2011 decree is about a compulsory professional management

that tells that the entrepreneur has to take part at a course and passes the exam about

law, accounting, marketing and so on.

53

7.4. Technological factors

From May 1, 2007 there is a decree related to the tachograph that says that the manual one has to be changed for the digital tachograph that has a higher cost and has to be built in those vehicles that are issued after 2006. [29.]

The supporting activities sheet is about counting the hours worked and the time spent

with rest, or had days off (what he was doing) and tells about the time spent between

two tachographs. [28.]

The control over the drivers can be shown by the 28+1=29 that gains the information

about the past driving hours back to the last 29 days to check. The tachographs

should be saved for one year and be carried with the driver for 29 days. [26.]

THE FINE LINE

This can be imposed because of overspeed or exceeding the time of the

allowed hours of driving that can be 400 000 HUF on place. The total weight of the

vehicle can be exceeded easily and like the weight of the axes that can be controlled

at some point such as Lajosmizse or Solt.

Furthermore, there are restrictions according to the overtaking of the

other vehicles - between 6am and 10pm. , over 7,5 tons on the motorways – is

forbidden. After this there is a rule for the trucks that over 7,5 tons they cannot be on

the road (every kind) (190/2008 decree) on Sundays and Holidays during the year

except in the summer when it is Saturday and Sunday.

There are different towns (Győr, Szeged, Debrecen…) in Hungary that do not allow

the trucks to use their streets thus the vehicles are banned. [26.]

54

7.5. Effects on transporting

There are some technological issues such as the fire extinguisher, first aid

box, blind spot mirror and table about the size of the truck and so on, they have to be

changed after a few years to be sure about its guarantee. Plus there are engines that

has the title of Euro 3, 4, 5, 6 and so on, only they are allowed to use. [29.]

To get the permission to the Budapest area takes days and further costs

that may be greater than the profit on the work. Registration is needed personally

then the clients can order the permission via internet. The needed information

includes the proper address, the carried product, for how many days they want to

spend there or ‘use the city’. The price is changing, it depends on the weight of the

and it also depends on the counties. If the drivers want a faster administration it is

more expensive and has a higher cost that is 4000HUF. It is usually arrives that day,

but is normally it is the next day that can waste precious time from the working

hours. [30.]

If the driver uses a road that is a subject to charges or violates any decree

he can easily get caught and obliged to pay. Some roads that are shorter and faster

may not be used and get the driver to choose the longer one, that will be worse when

the regulation according to the road fee (that time more roads can be ‘locked’ and

longer ones can remain open to them to win more money from the entrepreneurs).

55

7.6. Summary of negative effects

Every action requires money so there are so many cuts on the profit

The first factor is the growing number of the enterpreneurs of road transport within

the borders of Hungary plays an important role in the demand and supply that causes

the decrease of the cartage. Everyone should lower the prices if they want to get out

alive at the end of the day and have hope to survive the next with the prices that

might be enough for coverage plus a little profit.

The costs of the compulsory professional management training are over

110 000 HUF plus the GKI course is 80 000 HUF. This amount of money is

dangerous to most of the small entrepreneurs who are in a bad situation with vehicles

that are not in good condition and they rather spend the price of this course to the

machines and their repair. Some of them do not get the required knowledge over the

age of 40 because the small entrepreneurs concentrate on their work (that they

experienced) and not on a knowledge that they could live without for more years.

The values of the fees also grew during the last years plus they got

stricter. There is a point in this area that can lead to the break off of the business.

Most of the workers in the transportation industry try to do their best breaking the

rules according to the overtaking. The prescribed rules may prevent the act of

gaining more profit with the weights that can be carried, but a little overbalance can

bring more money and at the same time it will not harm anyone around. But the fine

can be more harming and can get someone’s business to death. [30.]

56

7.7. Summary

It can be seen clearly that the burdens that stress the small enterprises

makes those who want to stay alive want to improve their business and make

innovations. The way leading out of the darkness of this industry for the small

enterprises is to find the segments that grant possibilities to move and to get to more

profit. The necessary steps include the marketing activities, the implementation of

the communication and its improvement.

During the analysis of the PotvorszkI Trans I marked those areas where the presence

can be important and profitable. The results can be fresh commissions and - despite

the hard times and consequences – the development of the business.

According to the researches I have made on the constructions in Hungary

there are different options to choose to go on with the Potvorszki Trans.

The first way to go connects to the core concept of marketing; it is about to satisfy

the clients with providing something new to the customers, something unique that

they will appreciate and in what they can see the opportunity to get profit from the

business.

57

8. Strategies8.1. Strategy Nr 1.

The work around a construction must be done from the base to the

gardening and everything concerning the pre- and post-work, not only the building.

The first job is to make the ground fit to the building and to the environment to make

it possible to build on it, and not be disturbed by anything such as the unstable

swamp and prevent the house or the building from sinking in.

This can be built into reality the following way; the Potvorszki Trans has the

machines to do the work from the beginning with the earthmovers that are used for

the post-works in the garden too. A project such as the constructions always starts

with a big earthmover and then it comes to the details that require a smaller, a more

exact machine to paint the final strokes as strict as it can be. The work between these

two movements is about carrying (in case of the Potvorszki Trans) the goods to the

place of the construction such as the material for the building and for the ground.

[32.]

Considering that the Potvorszki Trans is a small enterprise, the most

efficient way to use its skills according to these linear activities enroots in the

building of the smaller projects like residential, mostly private residential, smaller

buildings. It does not have more from one machine only one or two and is not able to

undertake a greater project because of the lack of working power. But according to

the researches, these constructions are not on the way of success and will make the

Potvorszki Trans profitable neither in the short run, nor in the long run. The amount

of the money invested and the number of the buildings tells the same about them, so

in the future, when most of the human beings talk about the next wave of the crisis, it

is not worth to orient to this field.

The investments fell in the case of the family buildings (2011-2012) by

13% that could be the target of this strategy but the share of these kinds of buildings

are not represented by a huge number; they make the smallest part of the residential

cake.

But for 2011 the money invested in these kinds of buildings, the family houses

stagnated from 2009 more than the other two kinds of houses. Two of them

58

decreased but the one that owned a smaller part of the cake diagram lowered less

than the residential park that fell back almost by the half of its total.

Only the community buildings increased for 2011 but they are out of the

consideration region. The reason why they are not in the business is that they do not

need the work concerning the garden, or this is just a little part of the work. They are

more about the buildings and the goods in bulk. Goods in bulk is good for the

enterprise but it would be only a part of the activities if this strategy will be chosen,

and that will barely let the entrepreneur have higher living standards.

The residential parks are not going to be popular during the crisis in the future and

the increase in 2012 can be just a occasionally data, that might not remain and

building on something so unsure is far from boldness but closer to an unconsidered

strategy to come through.

Plus as another reason on the other side is that there are other small enterprises

whose number just grows, some of them fail, but newcomers always find a way at

the beginning and worsen the situation and the competitiveness here.

The facts of the past and the forecasts for the future are not so favorable

so this strategy must be rejected unless the Potvorszki Trans has its clients to count

with and if they are enough to keep the business alive. But it is not this easy, because

the clients do not have that number that would be enough to run the business and get

more followers in the future.

59

9. Strategy Nr 2.

The strategy is created upon the damages, losses and the shares of the

different types of constructions. And it is about the orientation towards a special

construction branch that is in a better condition.

Looking at the statistics according to the constructions in Hungary in the field of the

civil engineering; they are in a better condition compared to the houses and other

kinds of buildings.

The ‘plazastop’ has a huge effect on the constructions in the buildings

and pushes the other buildings in front of it. The fact that the huge buildings will

decrease because of the restrictions, will provide less possibilities to those who work

in the construction industry and they will deprive the enterprises from the work it can

supply. The shopping malls have parking lots that require landscaping that can be

done by the earthmovers that means that this is a huge loss on the side of the

Potvorszki Trans. This is a proof to that the other buildings are not worth to invest

and to target because it will not change until 2014 and during the next year the

enterprise has to develop to succeed later.

The houses decreased thus they do not provide work for the small

enterprises not even when they are capable for a broader line of activities. All of

them decreased and the will keep on decreasing in the next year according to the data

from the GKI and it would equal to a suicide on the market to invest in a business

that is slipping down.

The strategy of the Potvorszki Trans is about the civil engineering branch

that had the lowest damage during the past years. They include more types of

buildings that can be targeted at the same time, because they do not require

professionals outside the engineering work, only employers that can do their job they

are experienced in. These buildings are the different in their types but they can be

involved under the infrastructural types of buildings.

The infrastructural buildings are the roads, bridges, railways, but the roads are the

most popular ones among them. The Potvorszki Trans had many contracts with those

60

kinds of companies that were for road buildings and this line can be continued with a

straight strategy.

These civil engineering are in the best situation, because they did not lower that

much as the others and they own the biggest share in these kinds of buildings. Plus

the development is shown by the infrastructural constructions in a country.

The changes in this field are variable from year to year, there were seasons when it

lived its best like every other branch, and they reached their highest value in 2005-

2006 and get a similar huge value in 2009. But from 2008 the numbers did not go

through any particular change, it stayed around an average value.

These kinds of civil engineering are far better than the other types such as the pipes

or the residential-, non-residential buildings and the others. The companies are

working on the unit they are focused on but in case of a small enterprise it is possible

to be open to more companies and not only in a certain type. The enterprises can

work for corporates that are in the road construction business or those who are

dealing with bridges because they need the enterprise for the carrying of the goods.

The actions and the communication must happen towards this strategy to have the

results that satisfy the enterprise and help it to reach the goals.

One of the goals of the Potvorszki Trans is that it will be greater than

now, and get totally different competitors in the future. If the competitors are in a

good condition, it means that the enterprise is in that too, otherwise they would not

compete with each other. Now the most common competitor is the Lados Trans that

is only a small enterprise but it has seven vehicles in the same category (autotrucks)

and bares the title that the Potvorszki Trans wants to get later but in a greater size

with different clients.

If the strategy is successful, that creates a new reason to buy new vehicles or there is

a way to change the earthmovers but to keep them to support the work of the

autotrucks (to load them) on the constructions.

The strategy lead to more work and to new clients, but most of all, to

keep the existing ones, and get new ones in the near future and keep those ones for a

long lasting relationship. This will lead to buying new vehicles in the autotruck

category and then distribute the business. Later on the distribution of the enterprise

will change too, this is the other goal; the spreading around the country and found

more sites where the work usually is. It will be profitable the way that it gives the

61

possibility to save on fuel, not like in the current situation when works are on the

countryside and the vehicles have to travel more miles and meanwhile they are

getting worn out.

The strategy is about the conscious spreading, orientation and targeting. The business

has to communicate this way.

This can lead to the possibility to be the only enterprise that deals with carrying

goods in bulk because there is no such big company focusing on this only (according

to the MKFE), and Potvorszki Trans can be that if it leaves the Lados Trans and be

the one bigger enterprise in the country in the B2B business.

This plan is accepted to go through because of the statistics that show that the other

businesses, with other words, the business partners or potentials in the infrastructural

industry have more work than players in other branches. And a plus positive feature

is the relationship and the common past that they had with the Potvorszki Trans,

because they provided the most work to this small enterprise. Without relations there

is no way to get to the business circle, this relation might be not enough, that

enhances risk (risk must be taken, courage must be used) but this will be supported

by the communication.

The Potvorszki Trans had a specialty that it had clients from the private

people and companies also. But this strategy writes that the future strategy will built

around the companies and not private people. One of the reasons is that the

companies deal with the kind of activity that seems to be more profitable in the

future according to the statistics. B2C strategy is not acceptable because the

companies provide more work with the help of the connections between the

Potvorszki Trans and the infrastructural companies and the relations that are present

between the clients and the enterprise is not going to make it a healthy wealthy

business.

To target the companies bears more risk because of the increasing number of the

bankruptcy declared by the companies but every strategy and every business gains

smaller or larger risk, and the greater the risk, the greater the profit could be. This

risk must be taken and the courage must be used, otherwise the enterprise will stay in

the same place. This strategy is a step forward that is quite big and it has to break up

some relations with its past, but it has a bigger chance to keep going.

62

9.1. Construma

This exhibition is an exhibition about the construction activities that is

organized every year and in 2013 it is from 10-14. April. This is the most prestigious

exhibition in Hungary.

According to the follow-up from 2012, the number of the construction enterprises

and companies of the visitors was 6 108 that meant they had the highest percent of

the visitors.

On the one hand there is a way that leads to the potential partners and

bears personal contact with them which is one of the best tools in building trust.

This personal way of communication and apparel can generate trust and further

relationship that will mean power and sympathy on the side of the enterprise and that

will give some advantages against the competitors.

An attracting apparel and confident look in a face-to-face discussion where the

Potvorszki Trans can present itself with the activities, the quality and the tools of the

enterprise can lead to trust from the side of the industrial companies. The trust and

the personal experience have an effect on the relationships between the people and if

this step is taken then the door is open in front of the enterprise to walk in and get the

job or get some in the first time. After the trust is present the more the chance to get

job at the construction and once the quality is experienced then it can became a

constant present at the workplace that means business in the future.

The goals can be reached when people are willing to go after them and after what

they need. In the case of the Potvorszki Trans it was different because the employer

went after the companies and people he knew but never opened to new possibilities

and never looked for the unknown potentials. It tried to rely on the acquaintances to

help him with the indirect partners but it barely lead to success.

This step is the first in the offline world that will lead to something; it has

a cost about 1300-1500 HUF but it is worth to try whether it is successful or not. If

so, then it is suitable for getting forward and if not, it is worth a try because it is

experience and experiment with things that were not tried that keeps the entrepreneur

on the board.

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This expo is a good place to spread the news about the Potvorszki Trans and ‘sell’

the business cards to the potential and present the enterprise. [32.]

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9.2. Financials

Depends on the financial issues, the problems will not disappear if there

is no any kind of sacrifice for getting partners and keep them with the

communication. If there is no communication, there will be no clients that would just

worsen the situation. Costs must be present on this side also, not only on the side of

the vehicles, such as taxes and repair work.

Considering the taxes, they have a usual amount at the end of every year that can be

lowered by investing into a new tool in the business that will be more favorable to

the business. This amount is a specified percent of profit, that can be calculated and

the money spent on the communication can be determined. The return on investment

will be calculated depending on the data from the previous year and help to give a

clearer picture about the future profits. But for this, the results of the communication

will be added, that will enhance the final result.

The budget for the marketing actions is HUF 100,000 that has to be used the most

efficient way to bring the most from it. The emphasis will be on the online marketing

actions, the own webpage and the Google AdWords that has a cost, and an official

Facebook page that is costless. These are the most common used social networks

used by the Hungarians and these are paid attention too. Considering that a lot of

people obtain information from the Facebook, this is a good way to get the attention

of them and to be more B2B LinkedIn will be the other free social media tool in the

business to reach the clients.

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Months 2011 profit 2012 profit

April 1929590 316569

May 1306423 -279016

June 2313271 708139

July 1597272 793957

Augustus 1722952 64912

September 2961845 2720168

October 3890235 3269467

November 4429263 4073189

December 2549262 1257272

January 0 -343017

February 2888687 819194

March 2267142 -63281

Figure 19.


9.3. Seasons

The profit changed from 2011 to 2012, it lowered but the changes in

strategy will cause further changes in the incomes and costs.

The most powerful season was the fall, but rather the October and

November that show that the work that must have been done during the year had

some issues in time management but it has to be completed anyway. But usually the

work starts in the spring when the weather gives the opportunity and this way there is

time to finish and to perform the best.

The communication and its intensity will be determined by the seasons

and the logic in the working morale that is described above.

The profits do not indicate the meaning of the seasons and the months in the spring,

but this is the time when the construction industries wake up from the winter sleep

and get to work. This is the time when the Potvorszki Trans has the opportunity to

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get in the circle and get the job and the work that brings the goal closer and this is the

time when it must be advertised and delivered to the potential.

The most powerful season should be the spring, and the information delivers must be

started before the companies start the construction and before they have the

employees for the work. This time the Potvorszki Trans can hunt for the chances

with the proper communication and a dumping before the season and during it to

keep the rate.

These works start in March and the information should be in the hands of the

construction companies to know whom to hire that time. The advertisement starts in

the winter months, more precisely from February for a month when the companies

look for the clients and then this communication continues in the spring but at a

lower rate. This is for keeping it on the level and not letting it sink but in the spring

the goal is not to get known but rather to keep it in the partners’ minds and in the

consideration region plus not letting them forget the Potvorszki Trans.

Through the spring it is going on at the same level and in the fall another dumping

starts when the companies are in the need for the workers to complete the work.

In the wintertime these companies stop for a while because the consequences that do

not allow the activities at the constructions.

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9.4. Future acts

If the enterprise is doing well with the help of the communication then

the steps of the plan can be completed during the next year and on the side of the

machines some improvement would come through.

The improvement means a new machine that have the same function as one of the

current ones as a substitution for that. The goal is the expansion to the countryside

that provides the most work and that would be a huge loss to miss the opportunity to

work for a company further.

The type of the machine will be the earthmover, because there are 3 autotrucks (2

Kamaz, 1 Scania) and one big earthmover (JCB) and a small one (Bobcat) and the

next would be an earthmover with a similar caliber as the JCB 4CX. This is for

balancing the machines to have so called spare ones that can be relocated to another

site for work far from the current location of them. There can be another site founded

with the same functions and later on it can be developed with more machines and

autotrucks to gain more profit and more work. These two machines go together they

support each other with their work and they do not need other machines to get the

work done with perfect results.

The price of a machine like this when it is new it can be 25 million and when it is an

older for instance 20 years old its price can be lower than 3 million of HUF.

Considering that a 5 years old machine’s cost is over the fall of the price and will not

get much lower, and they are in a good condition. This time the price is around HUF

12,000 – 14,000 plus VAT and they do not need repair. [30.]

It is better to have more of this, because their keeping is not costly.

The place of the new site will depend on the new clients, who offer work and sent the

autos to places that are more expensive to travel to and cut the income more than

some costs.

In case of a new site there are costs that can be predetermined such as the labour

costs and the operational costs, the cost of borrowing the place for the trucks.

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There is a strict price of the safeguard who watches over the place and at

least two of them are needed then they can change each other. The best option is to

invest in a site that is connected to a friend or an acquaintance and this way it can be

cheaper or to borrow a site with more others and the borrowing cost plus the labour

cost would be split up between more people / entrepreneurs being aim oriented with

a lower amount of money. For completing this mission colleges are needed and the

future facts about the works so the personal connections can be created after them.

There will be costs according to the kilometers travelled on the roads that ensure the

importance of the new site because not only the fuel and the usage of the trucks (flat

tire, road fees) will be present but it will gain more money from the enterprise during

the transportation.

If the site is on the countryside it has the work in Somogy county and Heves county,

and the km fee is going to be around 70 HUF /km. Considering that Somogy is

further from Pest county, it is going to be a better choice to have a site there

according to the km fees. Heves is relatively in the near (in the neighbourhood) so it

would be a waste to move out there with vehicles.

From the original site the distance would be 198 and the km fee is moving around

13,860 ( added at least twice because of the return that means 27,720 but if there is

no place where the vehicles can have rest it is more) multiplied by the number of

vehicles. Plus the risks and the road fees that must be paid and the resting time. But

the borrowing costs would be very costly plus the labour costs. [33.]

When the machines work further the subcontractor provides sites and

places for resting for free, and this way the other site would be too expensive for the

enterprise and would not worth the investment and the personnel costs. This happens

in most cases, and the fees are not exceeding this amount of money that a new site

means, so this idea is dead.

9.4.1. Timetimetime

These actions have to be made by the end of the spring 2013 to be prepared for one

of the best seasons, for the summer.

The goals will be achieved by the communication strategy that will use the tactics

concerning rather the online possibilities.

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The number one action is the webpage that has to be made before all the others to

lead the visitors to somewhere that can provide information and give an image about

the enterprise so that they can have the feeling that they are familiar with it that help

to improve the picture in the client’s minds.

After the webpage, the usage of the Google Adwords comes to make it known and

get to the potential visitors to spread the enterprise with the relevant information.

The Google AdWords is followed by the Facebook page that will be formed as a

B2B business can make profit out of it and then another social network called

LinkedIn to get the professionals’ attention. These two are totally free, so these do

not have to be calculated in the budget, and their popularity in the world and in

Hungary can provide help to the enterprise absolutely costless.

These pages will be created to show an image that speaks about and describes the

positive features of the Potvorszki Trans and give them a brand.

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9.5. Offline communication

9.5.1. Outdoor

There is a need for some outdoor marketing to be right in front of the

eyes of the potentials. Boards are in the current location of the site and the machines

but that place is not the best choice for advertising the business, because they have

no traffic rather by its citizens. In the neighborhood there are more busy towns that

are good for the advertisement and more people can be attained there.

One of the towns would be Gödöllő, which has traffic because of its castle and

location, and this is a place where people hive from the towns nearby. This is close to

the capital that makes it more popular and it has many building material trading

businesses that are a good place to advertise the business. The most known one of

them is the Eveland Bt. that is in the center of the town where a lot of people turn

and not only the clients of the building material trading business.

These boards will look like the newly made business cards, showing the green color

and a design that reflects the quality of the work. If the way of communication is

demanding, then it makes the people think the same about the company too.

9.5.2. Local newspaper

One of the most efficient ways to promote the business and its activities

to the neighbourhood and the people living nearby is to be present in the newspaper

that is the first thing in the morning to look through. This is the object that appears

on the table next to the breakfast bread and fruits so it hardly can get out of sight.

Everyone is interested in the life of the town he lives in and the programs, the news

and the sales that might be represented in the news.

The place of the article will be on the right side of the news telling paper

and on the upper side of the page to get the attention of the readers the most

effectively. The article will include the business card in paper form, that gives every

information about the enterprise and the webpage that gives more information if

needed but in the first row it gives the cell phone number and the e-mail address.

This newspaper is the Gödöllői Szolgálat, that gets to every single household in the

town that enhances its importance. The ad will be on the right side of the paper and

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can be on the upper part of the paper. The prices of the ads vary depending on their

size. 1/32 page has the size of 67×46 mm and its cost is 6740 Ft+VAT (1820)=8 560.

[34.]

The enterprise is in Domonyvölgy but this small village’s population in not famous

for its plans for the future constructions, so it would be inappropriate to use the local

paper of the village.

9.5.3. Business card

The brand needs development to have a place in the partners’ minds that

can be achieved by the advertisement. The business card had an orange color that can

be connected to the previous ages when the main vehicle was a Kamaz that had the

typical orange color and it was represented by the cards with the information. Later

the business cards had the image of the Kamaz and the JCB CSX on it. But now the

hierarchy is changed from the time when the Scania was purchased and this is a key

element of the business, this can be a key element of the image too.

The most important and with the best reputation the Scania is worth to be showed on

the cards that also represents the Potvorszki Trans and do not give confusing

information to the clients. If the cards stay the same and do not fit in the environment

of the other tools of the communication it can easily be distracted and mixed up with

other enterprises that means no good in any cases.

The card will have a green color that has a picture of a Scania. This color fit more to

the enterprise the way that it symbolizes the power and this color is used in the army

too that reminds the people the strength of the human and machine cooperation and

the power of the human that can do anything he wants even if it is to take control

over a weight of tons iron beast.

The business card will be lighter green with the image of the green Scania but in a

darker tone to show its power with black contour. The name of the enterprise will be

at the top of the card with black and under it there will be the name of the owner with

black also. Under them there are the availability, the location, the e-mail address and

the phone number. The Scania image will be on the right side at the bottom to give a

clue about the business for the first sight and it will ‘carry’ the activities to symbolize

the work of the enterprise. On the right side at the bottom too there will be an

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earthmover lifting the website of the Potvorszki Trans to show that they can get more

with the business electronically. Its color will be the original yellow that these

machines have and these two colors are not against each other so they can be used

together without making it unpleasing.

The light colors and the dark tones will give a contrast that make it more exciting and

attracts the attention and grabs the eyes showing the power and the conscientiousness

of the Potvorszki Trans.

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9.6. Online communication

The fastest way of communication is the World Wide Web that takes part

in every business and does offer the possibility to search for something even if it is a

small thing. People want to be aware of what they buy and usually if they need

something they gather information about the expected product or in this case the

service.

The internet is the number one tool to get knowledge and the most comfortable too

that causes its popularity. This is why the enterprise needs to be found on the internet

otherwise the trust and the level of fakeness will appear in the potentials’ heads. This

indicates the importance of the online search and the indispensability of giving

information.

The most basic tool related to the online world is a page that contains

every information and that works as a queen to which every road leads that improve

the traffic. This page must include every relevant information about the Potvorszki

Trans and cannot disturb the visitors with non-relevant information. This will

provide the things that are claimed by the clients and show the quality of the work

such as pictures and the employees, the machines, their places and the entrepreneur

of the Potvorszki Trans.

The other tool is that brings the traffic to the previous mentioned

webpage, and this is the Google AdWords that is very popular and useful nowadays.

This will let the inquiry arrive to its final point to have more information that can be

found on the website.

There are other online activities that can be used and are popular among

the people. These gained ground in the reality of the private people but they can be

used for advertising as well and not only in the B2C world but in the world of

Business to Business too. One of them is the network called LinkedIn, that is a

professional page where companies can take place as well private people and can

spread their business. The other one is less professional and among the private

people it is for delight or inquiry but there are some cases when it is good for the

business. These are for free, and it gives a plus meaning to the action; the business

can be advertised for no money and these networks work as news lorries and

sometimes the most basics of the information search.

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The two most efficient ways of the communication are the online and the

personal to give the information and show the image of the enterprise.

The first step is to divide the actions and build them into a frame

symbolizing the time.

The enterprise has a budget for the communication and it will be calculated by the

experiences of the previous years. There was no specified amount of money for this,

because there was no communication before, only a once at a time, that was the

outdoor years ago, and did not cost much, only two boards, one on the site, and

another on a friend’s enterprise that has no fee.

9.6.1. E-business card

The business card will be available electronically too because of the

distances. The online business cards will look like the normal business cards; they

will just spread in the virtual world. This will be good in such cases when someone

do not meet the entrepreneur personally but may needs something different from a

webpage (that contains everything) or a social network page and wants the most

important information in one place that looks professional and give the first

impression to decide upon the hiring. These cards are going to be sent via e-mail and

they can be viewed on the mobile phones that make the process easier and faster. So

it reduces the chances of the others to steal the potentials during the early times that

can be copied as any tool in a business.

The business cards will be created by the program called Photoshop and

printed in the Nebulo paper store where all the previous cards were made. For the

first time only 50 pieces will be purchased that will cost 5 000 HUF that is calculated

in the budget. It is calculated in the budget, because this is not new to the enterprise,

but an often recurring task that has the specified amount three-four times a week. By

the time the webpage will step into life.

The average amount on the business cards is about 30 pieces annually,

the enterprise is known by the clients and there is no need to buy much more, but

now, that the Potvorszki Trans will go on another way and open to new clients this

needs to change in the numbers too. Before the new strategy the cost of these kinds

of information was about 3 000 – 3 500 HUF this will increase and for the first time

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it will count 5 000 HUF to get to know that how many of them will be ‘sold’.

Anytime there is a chance to get a new pack of them, and this is why there is no need

to buy more of them. In the early times more will be shipped to new clients to spread

the news around and this amount will be given to the potential partners when the

situation demands it.

9.6.2. Webpage

One of the most important tools is the online information gathering in the

XXI. century. Everyone who wants to get something the first and the most

comfortable and fastest way is the internet. It can be traditionally via the computer or

via the cell phone. The webpage of the Potvorszki Trans must be the reflection of the

work and the number one aim that is the quality of the work it does. It must contain

every information that is useful and the clients are interested in.

The page is created on the webnode.hu that is a webpage creator for the Hungarian

people. This is an easy to use application; it provides different samples and different

packs to purchase and they depend on the data traffic of the page.

The creation of the webpage is a number one tool because this is the place to where

every other online marketing tool guides the potentials to have a better and more

special picture about the business. This must be made before the social networks and

the Google Ads also.

9.6.2.1. Financials

The creation of the page is free for a month, and forever if the user is

satisfied with the basic content of the page and do not want to develop and make it

more demanding.

For a year it is 14 388 HUF but if it is purchased for two or more years then it has a

discount that is 20% for two years.

The two years would be a good option to choose but there are some reasons on the

other hand too. The discount does not mean that much if it is compared to the other

costs. And the other reason is that is more difficult to change to webpage if this

webnode.hu loses its image and another, a better webpage creator can be purchased

and the URL can be changed to the previous one (it is possible if it is the package to

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define the link) and for more money it gives more possibilities and a better layout.

However the packages can be leveled up any time with only the difference in the

price, but for the first time it is worth to experiment with the cheapest one.

These are the reasons why the enterprise purchases the package for one year, a basic

pack that provides enough place and data plus some extra applications. It is called the

Mini package and contains 500 MB storage, 3GB bandwidth, 3 P.O.B and samples

for the design.

The other package supply greater storage, bigger bandwidth more mailboxes and

different languages that is not worth the more than 1500 HUF difference in the price

per month, at least not at the beginning.

9.6.2.2. Design

The color of the page will be the good old green that is represented by the

business card too, so that if the partners are given the card and check the webpage

they will be lead on a straight way and they can see for the first sight where they

actually are.

On the top of the page there is a picture of the vehicles to make it clear about the

working tools that tell about the work it does and tell about the quality, the look and

the somehow the age of the machines. They say without words that they are for the

kind of work that lead the visitor to the page.

The vehicles are well organized to impress the visitor and symbolize also the quality

of the work.

The opening page is at the domain of http://potvorszki-trans.webnode.hu.

The webpage will contain photos and it will have the landing place from Google

AdWords greating the visitors with the following:

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Photo 3.: Webpage


Under the link called ‘Connection’ there will be all the availabilities of

the enterprise and a link that leads to the Facebook page to generate the likes and the

followers. Those who like the webpage and have the impression that it is great then

they will push on the like button. It will contain a map that shows the streets and the

location of the site with the help of Google Map.

The Webnode.hu provides possibilities to such as pictures what

impresses most of the people visually so that they can decide upon the business. This

is supported by the ‘About us’ part that gives the possibility to share the positive

features about the Potvorszki Trans. There will be a list in under the ‘Services’ about

those works that are done by the enterprise and they will be detailed.

The website will have some links on it that belong to acquaintances and they can

easily be convinced to do the same with the Potvorszki Trans, so that those who visit

their webpage and if they check on the links they have, they will meet the Povorszki

Trans. The placement of the links is for free with the Webnode.hu so the links to the

other pages will look like rather a friendly gesture with the benefits of free

advertising. There is a special feature called Favicon (favorite icon) that appears in

the address bar and it gives a little plus and quality look to the page.

There are webmaster tools that help to follow and check the visibility of the page in

the Google and Google Analytics that helps to measure the statistics of the traffic of

the page in a detailed form in the basic program that is for free.

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9.6.3. LinkedIn

The social network called LinkedIn was launched in May 2003 and it is

becoming more popular among the professionals in the world with more than 200

million members that is growing at a rapid pace. Companies are present there such as

Apple, amazon.com or E-bay and these are the most represented in the network of

LinkedIn. According to the infographics from Hub Spot the largest sector is the

services and this is followed by the finance and the high-tech. [35.] [36.]

The ‘population’ of LinkedIn contains people and companies also. Related to an

infographic more than 2,600,000 companies are on LinkedIn and 60% of the users

clicked on ads on this site, but more of the users are aware of the ads. 76,9% of the

users stated that this network is useful in searching people and companies and almost

70% of them reconnect with business associates from their past. [37.]

For the first time people may not type the searched word in the social networks,

especially when it is not a person but a business. But the search engine can bring up

pages such as LinkedIn or Twitter or even Pinterest and if these appear during the

search, the client can experience the business more often and can gather information

from different pages and the more pages with relevant information they find, the

more trustworthy the business is in their eyes.

The Potvorszki Trans will be added to the network of LinkedIn in the end

of March of 2013 to build social network with different professional people and

companies. This will be used to have connections with those who will bring the

business further and those who are deemed to give working opportunities.

Through LinkedIn the Potvorszki Trans can connect to bigger and smaller companies

that provide the chance to break out from the unknown cocoon and get in touch with

the large ones. This is helpful to link to the 2nd and 3rd rate users via the direct

connections.

The first step on the highway of LinkedIn is the information that will be

given to the audience about the company; here the same can be used as on the

Facebook page and many pictures about the working tools and works done by the

enterprise. A well-chosen picture can enhance the traffic and give some effort to the

user to stay for longer and check on the page.

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Much information is needed on this site, because LinkedIn is not a network for fun

and building relationship in the friend zone and the private life, but rather about the

profile and image of the business that has to be professional. The detailed the

business the more people will familiar with that and will have be aware of the

activities of the Potvorszki Trans that is useful to have their trust.

There is no wall on LinkedIn but the user can share anything about the business and

get followers as well. After the information and building up the profile part is

finished and ready to published, it can be done. On the page of the Potvorszki Trans

there will be quotes by the partners, and the current partners will be asked to say

something positive about the business that will be presented on the page to attract the

attention of the others. These quotes make the visitor and the potential business

partners think that the Potvorszki Trans makes something right if the clients are

satisfied and they have willingness to post it somewhere.

On LinkedIn there are smaller enterprises that need help and they get together in one

group and can discuss the actual problems, or trying to give advices, share their

experiences even they are bad or good, that can be useful. Special groups can be

searched and joined whenever that is a huge step in the relation making and in

creating the social capital. These members of the groups can form an alliance and

help each other with their connections, and these are the places where friendships can

start that later will be advantageous in building the business. If the relationship is

good between them it can lead to the situation when these fresh friends can

recommend another business for a type of work or for a company they work for, but

the tasks are too much.

These relations also have a darker side that means that the competitors can be

informed about the activities, sometimes the plans and so on, but it can be turned

backwards and the Potvorszki Trans can ‘spy’ on the competitors with keeping them

close and connecting to them to know with whom it is dealing with.

These groups are not for advertising and self-promotion but to share the ideas and to

stay up-to-date about the current situation in the country and in the business life.

The text on this social network will be in English with the number of the

employers and the website of the Potvorszki Trans.

The LinkedIn page is not going to be a result because this social network

requires a special domain in the e-mail address that means money and further costs.

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This way the creation of this page is not free anymore because it has additional

expenses that are not worth the existence of the LinkedIn company page.

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9.6.4. Facebook

The second most popular social network in the world is Facebook where

people can share their opinions and everything that happened to them. Profiles have

walls that are used for communication on the internet and it can be connected to

other social networks. Facebook was born in February 2004 and has more than 800

million active users. Spending time on Facebook is very common activity nowadays

and people gather information on this site about almost everything. [38.]

However Facebook is rather for spending free time this has a similar function as the

page LinkedIn in the strategy, if the Potvorszki Trans is on this site too, it enhances

the probability to appear in the SEOs more often.

Plus the Facebook page shows an insight to the activities over 30 likes that can help

with monitoring the traffic on the site. [39.]

The outlook of the page will have the same features as the LinkedIn page

with the information and the link of the webpage but with more pictures to show

what it is about. The Facebook page will have a link to the LinkedIn page that will

increase the traffic on the professional site and allow more contacts and another

check on the business.

Facebook will be present on the official webpage of the Potvorszki Trans that allows

sharing the content on the social network that will add color to the page and not only

posting and sharing photos will be the routine. The publication of the content will not

be more than two per day because users may lose interest if they run into Potvorszki

Trans everywhere without significant reason. The pictures of the works are going to

be posted to show how it works and the usual popular form saying before and after

that tells about the changes this enterprise can make.

On this page there will be connections to the main autotruck companies,

such as the Scania and JCB companies that belong to the image of the enterprise. It

will connect to the Vad Quad in Domonyvölgy and the Domonyvölgy and Gödöllő

pages to increase the popularity. They will be liked by each other that will show up

in the numbers.

The Facebook page will not be for selling but rather to give information and awake

trust in the people by posting the news and keep them close by being personal. It is

for posting videos about the constructions and works that show the best of the

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business and enhances its credibility and for making people know about the positive

news that happen to the company. Those kinds of that make people think or smile or

feel good, so that it will always good to see the Potvorszki Trans on the wall.

The profile picture would show the name of the company and it will be the part of

the cover picture so that if people check the page, they will see one picture but the

profile picture part can be seen as a single picture and it gets a different meaning (in

full) with the cover photo.

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9.6.5. Google AdWords

Google AdWords was launched in 2000 and it is perfect and made for

bringing traffic to the website of a company or any kind of business by using relevant

keywords in the campaign. Once this ad is created it appears in the Google search

and is indicated either on the top of the page or on the side. [40.]

The usage of the Google AdWords in the case of the Potvorszki Trans is different,

because here is a B2B enterprise and the efficiency of the Google is popular in the

private people sphere. But the first few weeks will show how it works and how the

other businesses or companies find the ad of the Potvorszki Trans and then it can be

reconsidered and different steps can be taken.

The payments can follow the CPC strategy that means that the Potvorszki

Trans has to pay after every click that leads the potential to the webpage. Here the

importance of the design of the landing page is coming alive and makes its one of the

most important job, to attract the people. There is a possibility to limit this CPC rate

and make savings that would be seen on the budget and this will be used in the case

of the business. But the problem is that there is no proof that other businesses (those

who are potential to generate profit) will click on the site and that pulls more costs.

And too much clicks would be costly, but there must be enough to have an

appropriate rate from the other companies.

The other variation is the CPA (cost per acquisition) where the enterprise pays only

after those clicks that lead to some further activities on the webpage. This method

tighten the possibility of non-potentials on the webpage of Potvorszki Trans and

those who visit the page they will see that it is B2B and will not act so that spare the

business from the cost.

This is good for the enterprise because it has to pay after the traffic that means

‘information attack’ against the visitor that is not pointless. They business will be

known by them and they can spread it through the word of mouth.

According to the geographical factors, the ad of the business will be

advertised in Pest county and in Nógrád county (what is at the second place on the

ladder from the work point of view) and the neighbor counties to avoid the clicks

from all over the country, thus preventing the unnecessary payments when people

from miles away click on the ad to check but the Potvorszki Trans is out of their

84

consideration region because of the distances and the business would not be worth to

work there.

This will help to determine the place of the other site that depends on the amount of

work at a given region that is further from the current site.

The Potvorszki Trans will have ads that get the clients with the right

words. These words will not be from the most expensive ones, but rather from the

less costly ones. The phrases used in the ads will not be only single words because

they are the most expensive choices but they will be built up from two words or more

to concentrate the attention. There will be words that the Google AdWords do not

have yet, because they are costless and they can be used also, and if they have no

price they are perfect for experiment.

After the statistics are available and can be studied, there will be checks to exile

those keywords that do not make profit and those that proved to be superfluous to

prevent the clicks that are mistaken and cut the budget of the Potvorszki Trans for

nothing.

There are different groups in one Ad that help to differentiate them from each other

and there can be categorized keywords that ling to one word or service. In the case of

the Potvorszki Trans there will be more groups relating to the different kinds of

services it provides and the machines it has.

Keywords such as quality will not be used because of their popularity, and price and

these kinds of words are too common and not specified at all. They would attract

absolutely irrelevant people and other businesses that would affect the budget. The

perfect balance has to be found between keywords and the click-through-rate. The It

would be a bigger problem in case of using CPC instead of CPA, but here also has to

work for effort and the words have to concentrate on road and railway construction

or civil engineering and avoid words that are searched by private people, to get those

companies on the hook.

In the first group the focus is on the fieldwork and the machines that are

attached to this kind of activity.

The keywords are related to the work and the vehicles such as the Bobcat, the JCB

4CX, Scania, and the work they are doing like way mirror making, basement roadbed

digging and so on. As time passes the keywords will show their priority and the

85

popularity that will help to filter them or drop some of them and which ones to keep

in line to earn profit.

In Google AdWords, the value of the competition, the number of searches and the

price are indicated when a word is searched. These factors show how effective a

word can be, and help to make the ad more profitable.

The common keywords are expansive and their competition is relatively high, that is

why in the case of the Potvorszki Trans they are considered to use, because it is not

worth to pay more but face a big competition, fight with the other ads and get only

fewer visitors. The keywords that seem right are going to be longer, to be specific

and to be cheaper, and of course gain visitors. The perfect balance between the price

and the simplicity of the words must be found, and this can be attained through

experience and experiment.

The starters are some words with bigger competition rate, but they will

show their worthiness after a month and they will be re-discussed to be kept or

dropped.

Photo 4. Print Sreen of the Google Adwords


86

In the first group some words are going to be the followings:

Photo 5.: Print Screen of Google Adwords keywords


In the first time more kinds of keywords are going to be used to be sure about their

effectiveness, and later it can generate a more precise decision.

The enterprise will be about to use mostly those kinds of keywords that has no price

indicated because they are cheaper but on the other hand they are not so popular but

they are worth a try, because of the payment, therefore it is dependent on the clicks.

The second group concentrates on the transportation and uses words that describes

the material it carries and the vehicles the enterprise uses and words according to the

quality of the work.

Photo 6.: Print Sceen of Google Adwords ads


87

Here are some keywords that are used with the same strategy that the previous group

follows.

Photo 7.: Print Sreen of Googleadwords keywords


Instead of the words bearing a value of HUF 200 a longer word is going to be used

that is concentrated geographically and does not have that high cost.

88

9.6.6. Budget

Months 2013 Tasks 2013

Communication

costs

by the start of

April

Fresh start:

webpage, Google

AdWords,

Facebook,

LinkedIn

Offline adv.

(outdoor & local

newspaper)

14 400 HUF

3 000 HUF

0 HUF

0 HUF

8 560 HUF

12 000 huf

May Online

development,

outdoor

4 000 HUF

June Online 2 500

July Online 3 000

Augustus Online 3 000

September Online 4 000

October New clients 4 000

November 3 500

December New JCB 500

January Continuous

checking on the

online and profit

-

February Start a new

campaign

4 000

March 4 000

70 460 HUF

Figure 20.: Budget for the next year


89

10. Summary

General summary

The Potvorszki Trans is a small enterprise that is about to decide to stay

on the ground or follow with those who did not succeeded in the long run of this fast

paced world of many types of restrictions and costs of having an enterprise in the

construction industry dealing with transportation.

The success of the Potvorszki Trans can be supported by the

communication and the information it gives to the target audience.

Everything has a cost, but in most of the cases it is worth to invest in things to get

better results in the future and it is worth to give sacrifices in order to achieve

something bigger later. The communication and the money spent on it are like the

same because the amount of money given for the advertising will generate more than

is invested in it. If the money spent on the communication is calculated on the budget

as the less costly but carefully profitable then there is no big place to fail and as the

results show off the financial questions can be rethought and can be enhanced.

After the online and offline ways of communication the facts will show

the further activities according to the investments in the future and the tasks in

relation with them to make the work smoother and more efficient with the

distribution.

Summary

In the world of the industries and constructions the Potvorszki Trans is a

small player just like all the other small-entrepreneurs that fight against those

restrictions and hurdles that are set up for stopping them from making profit. Thus

the situation in Hungary is not on the top and it does not seem to change in the

future, the SMEs have to use all their resources and energy to stay alive.

The searches show the past of this field with its present that helps to analyze the

overall situation and to create a successful strategy for the business.

In Hungary the situation was getting worse during the past years and the

prophecies do not promise such an increase for 2013 but the businesses got used to

this so this will not surprise them. The changes in the development are not huge, it

90

shows the tendencies of the years passed and with a strategy that is based on the

researches they can get further.

In the frame of the STEEP the data was collected mostly from the

www.ksh.hu and the whirlabout of the numbers were ordered to line and formed into

an answer.

Information about the residential buildings, the non-residential buildings such as the

industrial ones, the pipes, the channels and so on was available that supported the

research and the segmentation process. The data provided the information to form the

condition of the Hungarian development from 2000 until nowadays, only the year

2012 did not give enough of itself because their time consuming collection.

I have made an STP model to figure out how to build up the strategy at

first and to have the relevant information according to the market. The targeting

turned out that if the enterprise communicates to and targets the other businesses is

more profitable and not only because that there are many players on the court that

can employ the Potvorszki Trans but the amount of money invested in the industrial

buildings is still greater than the amount that is spent by the private people that build

residential buildings mostly.

The Potvorszki Trans has to take place in the minds as a B2B provider that owns all

the qualified human power and the quality tools that are necessary for the further

possibilities in Hungary. This is supported by the communication of the business that

shows the people that they get what they dreamt for a normal price.

SWOT, BCG, Ansoff matrixes were created for the business that showed

the possibilities what to do with the different machines and how effectively they can

be used to maximize the profit and minimize the costs.

I was writing about the purchase of a new machine or autotruck and

investigated about the prices and the usage of the vehicles and their operational and

owner costs. It resulted in an idea of a new machine that seems to be the best option

because the consequences and the work that it can do. It strongly attached to the idea

of a new site that played a major role in the decision making, but depending on the

fees and the additional costs, this idea was judged as a wrong one despite the road

fees.

91

I started a strategy that placed the working process in the centre and make the

business special so that it can be more easily recognized, but this was not successful

not only because of the size of the Potvorszki Trans on the market but the researches

showe a different world than the one that would favor for the business. The planned

target markets are not in a good position that kills the strategy, the liability and

profitability of the organization.

The second plan targets the branch that is in the best position from the

development point of view that gives a better advantage than the previous one. The

researches provided a positive answer and supported the strategy with the values.

The plan of the clear strategy made it possible to create a communication plan that

works in accordance and make the communication targeted.

The offline communication does not require any permission only money, but this

does not cost much, just the previous activities had to be dressed in a new coat. The

outdoor communication is developed more up-to-date, not like the previous faded

one, and the place in the local newspaper is for sure.

The online communication was not that lucky because of the social network pages.

The Facebook was successfully made but the LinkedIn did not work for the reason of

not having an acceptable e-mail address, which means that it is not for free anymore,

and is not worth the money.

The webpage was made for the minimal amount of money that could be used and

provides the possibilities to make it esthetic and stylish. It connects to the Google

AdWords that helps to gain visitors and get the attention that is necessary for the

page to appear in the SE. The Google provided a bonus values HUF 15 000 after an

amount of HUF 5 000 paid on their account.

The strategy is about to work and the further analyzes will show how

they make profit with the combination of the online analytics and the referrals that

will hopefully increase until a greater expansion can be made without another wave

of the crisis.

92

11. References:

1. http://wekerletelep.hu/epites_tortenet (Read: 2013.01.29.)2. A külkereskedelem technikája, I. – IV., Dr. Constantinovits Milán , Dr.

Mádi Csaba - KOTK Kft., Eger3. http://hvg.hu/gazdasag/

20130215_KSH_31_szazalekkal_csokkent_az_epitoipari (Read:2013.01.29.)

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http://hvg.hu/gazdasag/20130215_KSH_31_szazalekkal_csokkent_az_epitoipari

93

21. www.ksh.hu , Az építőipari termelés augusztusban 5,3%-kal csökkent,

Építőipar, 2012. augusztus

22. http://gazdasagiradio.hu/cikk/85288/ , Egyharmaddal bővültek az új

építőipari szerződések, MTI, Gazdasági Rádió, 2012. december 17. 10:36

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építőiparban, Gazdasági Rádió, 2012. november 19. 09:22

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2013.03.18.)

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docid=142267.577458 (Read: 2013.03.18.)

28. Personal communication-Pastyik Piusz

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about-linkedin-infographic/(Read: 2013.04.25.)

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http://net.jogtar.hu/jr/gen/hjegy_doc.cgi?docid=A0700036.GKM

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http://www.ksh.hu/

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40. www.ksh.hu , Gyorstájékoztató, Az építőipari termelés augusztusban

5,3%-kal csökkent (Építőipar, 2012. augusztus) Közzététel: 2012. október

15., Sorszám: 160

http://www.ksh.hu/

potvorszki trans main

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