IV.

Marketing strategy
Visualisation of sales points
of the network
Implementing the strategy of building a strong brand of the
Group, Shareholders continued in 2006 the process of
change of the hitherto existing marking of their firms,
adopting the model consistent with the guidelines for the
whole network. The aim of this undertaking is to build
a strong Polish nation-wide brand symbolising the trade of
building materials. During the year, another 7 sales points
were granted the Certificate of the Authorised Sales Point of
PSB Group, thus acknowledging the conformity of the new
markers with corporate requirements, and joined the group
of 212 sales points that already had this certificate. This
process of corporate unification is the most advanced in the
following regions: Upper Silesia and Little Poland (86%
companies obtained the certificate), West Pomerania
(67%), Center (80%), Mazowsze and Mazury region (70%)
and Podlasie and Podkarpacie (69%), and West Pomerania
(65%), (chart13).
90
80
70
60
50
40
30
20
10
0
era est
Own publications
In the year 2006 we published a folder presenting the current scope of
our network and the status of contracting suppliers of building
materials. Independently, several various information leaflets were
published in every region, providing information on the regional
activity of Shareholders. Traditionally a very significant publication
project included a catalogue on the program “Buduj dom z PSB” (spring
and autumn issue) along with a free supplement “Poradnik Inwestora”
(“The Investor’s Guide”), which was sold to individual customers in
EMPIK and Kolporter press salons and in PSB warehouses, in the total
issue of 30 thousand copies.
One of the highly appreciated novelties was a folder entitled „Z kim
budować” („Who to build with”). This was issued in spring along with
Murator monthly. This included a number of building advice, house
designs and current legal building regulations.
Fairs
That was the eighth time that the Group participated in the most
important national fairs – BUDMA in Poznań. Our workers participated
in dozens of meetings and talks with the existing and prospective
suppliers, negotiating the terms and conditions of operations for the
next season. Journalists and television teams visited us in great
numbers. Moreover, PSB traders in the course of 2006 together with
manufacturers organised stands at regional fairs. In total, our network
presented itself in approximately 15 local events.

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Chart 13. The percentage of Shareholders with the Certificate

in the regions in 2006 .
Every 2 years there is monitoring of PSB Authorised Sales
Point. The companies that comply with the visualisation
requirements are entitled to a system of bonuses, the total
amount granted for this amounted to PLN 1,476 thousand
last year. Shareholders must appropriate these resources for Photo BUDMA 2007
purchasing branded give-aways, refunding the costs of
training courses organised by Head Office and the selected
individual advertising or PR activities.

Advertising campaigns
In spring and autumn we carried out advertising campaigns
promoting our business network. One of the significant
elements of those proceedings were leaflet promotions. In
the period of March-June over 4 million pieces were
distributed directly to homes. The support for this action was
given through advertising campaigns in regional dailies the
total circulation of which amounted to 2 million copies. Podkarpackie Building Fairs, Interior
Autumn campaign was carried out strictly through and Garden Equipment in Rzeszów – march 2006
publications in regional dailies. Additional support was
provided by broadcasting advertising spots on the radio – in
spring on RMF and in autumn on Radio ZET.
The greatest effects in strengthening the image of the
network brought the spring campaign on television – during
10 weeks we have broadcast over 1700 spots in the
following channels: TVP1, TVP2, TVP3, Polsat, TVN, TVN4,
TVN7, TV Plus, TV5.
Throughout the whole year advertising spots were
broadcast which popularised the program “Buduj dom
z PSB”. We have issued them in nationwide dailies (Gazeta
Wyborcza, Super Expres, Fakt, Dziennik), in industry press
(Murator, Ładny Dom, Mój Dom, Budujemy Dom), sport
press (Skarb Kibica), medical press (Konsyliarz), law press Photo TRADER OF THE YEAR 2006 – BUDMA 2007
(Gazeta Prawna) and catholic press (Ecclesia).
12
Billboards

This is the sixth year when PSB Group uses its own billboards for
campaigns together with manufacturers of building materials. In the
last season on 330 boards (map 1) located in 150 towns it was possible
to watch the whole year round the information campaigns of 20 Group
suppliers. Some of them promoted their products and technologies
several times.

Map 1. Advertising boards of PSB Group in 2006.

The website 4 000 000

3 500 000

The role of the Internet as a source of fast and accurate information on 3 000 000

redecorating and building construction is instantly gaining importance

2 500 000
in Poland. From 2004 onward when PSB SA Group started creating new
internet websites (expanding at the same time the main website), the 2 000 000
number of entries began to rise rapidly. In 2006 the total number of
entries to our bulletins amounted to 3.8 million, the main website 1 500 000
“attracted” 57% visits whereas the site on “Buduj dom z PSB” program
(www.budujdomzpsb.com.pl) 25%. The other bulletins (portals: 1 00 000
Onet.pl and gazeta.pl) had 18% entries (chart 14). On Onet we keep
500 000
Nowy dom (New house) bulletin which consists of the basic
information on PSB and our partners, whereas gazeta.pl consists of a 0
cycle of advice connected with building and redecorating. 2001 2002 2003 2004 2005 2006

Almost half of the searched information concerned columns devoted Gazeta.pl Onet.pl Build your house Main website
with PSB
to particular building materials (products – 30%, certifications – 8%
and partners – 7%), every fourth reason to enter our website was the Chart 14. The number of entries
exuberant advice column concerning application of particular to the PSB Group website in 2001-2006
products and technologies (26%), chart 15.

13 PSB Group SA 2006 Annual Report

 PSB Boutique

The strategy of increasing the presence of PSB in “virtual
reality” results in a significant growth of interest of the
internet users in products, systems and technologies offered
by PSB Suppliers. In the previous year, every month, over
25 thousand users entered the main PSB website every time
devoting to it over 7 minutes.
Aware of the importance of the brand garments, stationary
materials and small give-aways in creating the image of our
network, Shareholders bought in the brand store some polo
shirts, T-shirts, working clothes, polar type jumpers,
computer paper and advertising signboards. In the passing
year the total value of this shopping amounted to
PLN 1.1 million, and was higher by 7% as compared with
the year 2005.

The absolute majority of these purchases was financed by

Shareholders with marketing bonus, amount of which
depended on the value of realised purchases of warehouses
in the year 2005 through PSB Head Office and on holding
30% the Certificate of the Authorised Sales Point.

26%
Promotional campaigns

7% In the previous year we conducted 3 campaigns (two in

spring and one in autumn) and every one of them lasted
from 6 to 8 weeks. At that time we offered special prices to
8% our clients on about 90 products coming from 40
18% manufacturers. About 280 sales points of our network
participated in these campaigns. In result of these actions
11% we noted an increase in sales of PSB SA Group in the year by
approx. PLN 40 million.
30% Products 11% Other
Advice Certifications In addition, throughout the year, several Shareholders
26% 8%
carried out together several dozens of promotional
18% Sales network 7% Partners campaigns. These activities constitute the key element of
the strategy of winning new customers in the sales sector of
Chart 15. Information searched on our website
building materials and will be developed further in PSB SA
Group future.
in 2006 – entries.

“Build your house with PSB” Program

About 130 PSB traders along with a few dozens of Group

partners continued realising “Build your house with PSB”
program which supports individual construction sector in our
country. During that period over 20,000 houses were built
(some of them are still under construction) in about
1,400 spots of Poland.

In the year 2006 the warehouses that took part in the

program attracted the total amount of 2,680 new
customers while the total income on sales within the
program reached the level of 127 mln and were by 41%
higher than before the year 2005. Every year the program
gains more and more recognition in the society. At the
moment the index of the recognition among Polish people
PCMB Rzeszów
amounts to 24%.

14
 The bimonthly magazine “The barometer of building industry”
“Głos PSB” (“PSB Voice”)
This was the sixth year of the publication of our magazine addressed Third year in a row PSB SA Group published a monthly report
mainly to our regular customers – small companies of building concerning the condition of Polish building industry. This
constructing, individual investors and students of building schools. is the fastest and the most comprehensive news bulletin
including the results of PSB warehouses network
In the six issues we presented recent offers and advice of about as well as the statistics of GUS (Central Statistical Office)
40 manufacturers of building materials. Those briefing materials were and materials based on departmental studies and
very often used during Szkoła Dobrego Budowania PSB trainings. We research centres on the condition of the industry in Poland.
have also presented reports on the building market situation; other It is only available for the PSB Partners: Shareholders and
trade magazines also used our bimonthly in preparing their analyses of Suppliers to PSB SA Group.
the economy. Implementing commentaries presenting a wide scope
of particular PSB traders was also a novelty – history of their
development and accomplishments. The bimonthly magazine of the
size of approx. 50 pages was on average issued in approx. 20 thousand
copies. The readership structure at the end of 2006 is presented in
chart 16. The magazine is also available in electronic version
at: www.glospsb.com.pl .

48%

1%
3%

29% 19%

48% Construction companies, 29% Building schools

regular customers of PSB PR
3% Manufacturers, PSB suppliers
19% “Build your house
with PSB” program 1% Municipality Offices Media on us- in the previous year we noted down over 200
customers articles and mentions of us in the press (Chart 17). Once
a month “Rzeczpospolita” journal ran our comments and
Chart 16. The readership structure of „Głos PSB” at the end of the year 2006 data on the economic conditions of the industry based on
“The barometer of PSB building” and executed assessment
of expenses on building an exemplary house on the basis
of current prices of building materials. We have become
the source of wide range of information provided the fastest
in Poland which is used by analysts and persons particularly
interested in this economy sector.

25

20

15

10

0
I II III IV V VI VII VIII IX X XI XII

Chart 17. The number of publications on PSB S.A. Group in 2006.

15 PSB Group SA 2006 Annual Report

 4th PSB SA Group Fairs
In April 2006 Fourth Internal Fairs of PSB Group were held in Kielce.
About 1800 representatives of building trade took part in this closed
event and they acted on behalf of 143 manufacturers and 225
merchant companies. Within two days over 2.5 thousand contracts
were signed of the total value of approximately PLN 54.5 million, which
constituted 7% of the last year’s total income on sale of the building
materials.

The value of an average order was PLN 22 thousand. During this event
minister Piotr Styczeń, Secretary of State in Ministry of Transport and
Construction delivered a speech. It is worth emphasising that our fairs,
as contrasted with many events of that kind, are of a highly business
not exhibitory nature.

4th PSB SA Group Fairs

Banquets and integration activities

of the Group
1st Family Canoeing Rally of PSB Group

In the previous year we organised a lot of banquets and

integration events that were sport, recreational or
educational in nature not only for the PSB employees but
also for their trade Partners.

Traditionally, Giant Slalom Championships of PSB Group

took place in Szklarska Poręba, Sixth Sailing Championship
of PSB Group Lafarge Gypsum Cup and Isover Yellow Ribbon,
an aerial picnic Building Business was held and Mayday
2006. New sporting events appeared as well: First Indoor
Football Tournament of PSB Group – Southern region, First
Family Canoeing Rally of PSB Group, Motorcycle Rally under
the auspices of PSB – Frans-Pol and Cycling Rally
Championships.

In addition, PSB warehouses also organised individual 1st Indoor Football Tournament of PSB Group
banquets and open days for our customers. In total almost – Southern region
40 events of that kind took place around the country.

In the year 2006 we continued the competition for the

warehouses workers under the banner of “U nas kupujesz
– z nami podróżujesz” (“If you buy from our company- you
travel with us”). The warehouses from particular region
participate in this competition. The winners, who at a certain
period bought the biggest amount of materials from a given
manufacturer, go for a trip to a foreign country as a reward.
Last year the Shareholders from Mazowsze – Mazury visited
Amsterdam and London, from Center – London, from Little
Poland and Upper Silesia- Vienna, from Podlasie and
Podkarpacie – Barcelona, from West Pomerania – Bavaria
and from Lower Silesia and Wielkopolska – Egypt.
Picnic with AR. SKŁAD

16
The football team sponsorship
After two years of supporting Polish cycling PSB Group has decided to
change the line. In the previous year we sponsored football European
Cup finals. Over 33 million television audience watched telecasts from
15 matches with the participation of Polish sport clubs. They could see
great hoardings with our logo. The advertising campaign lasted from
July to November. Almost 70 thousand football fans were watching the
matches live on Polish stadiums.
Vistula Cracow – Blackburn Rovers
Other achievements
This was another year PSB SA Group was awarded many prizes and
recognitions, of which the most spectacular are:
• „Laur Świętokrzyski 2006” in the category of „Local polish Company
of the Region” – granted by Świętokrzyski voivode,
• “The Best Distributor of the Year 2006" in the category of
„construction warehouses network” – in the competition organised
by ASM – Centre of Market Research and Analysis,
• „The Leader of Świętokrzyski Region 2006” in the category of „retail
network”,
• „Polish Hercules” – granted for exceptional successes and stable
position in building industry,
• „Gazelles of Business” – honour for 21 warehouses- PSB
shareholders,
• „EuroFIRMA 2006” (EuroCOMPANY) in Świętokrzyski region,
• „Business Oscar” – in the category of big companies granted by
Busko-Zdrój poviat,
• „Polish Trader of the Year 2006” – in the 4th edition of the
competition organised by The Eugeniusz Kwiatkowski Association,
in the group of 15 laureates of the competition from all over the
country there were 6 PSB traders.
• 235 place in the ranking of 500 biggest Polish companies in the year
2006 of “Polityka” weekly magazine and 272 place in the ranking of
„Rzeczpospolita” journal. Both rankings our company advanced by
over 20 places. „Rzeczpospolita” estimated the value of the
company to PLN 430 million.
17 PSB Group SA 2006 Annual Report
Krystyna Jamroz festival patronage
In 2006 PSB SA Group took up the main patronage of The
Krystyna Jamroz 12th Music Festival – famous opera singer
who was born and brought up in Busko-Zdrój. Annually the
festival gathers a whole pleiad of distinguished stars and
bands, world-famous artists, conductors and singers from
our country and from abroad. This cultural event lasting for
many years won a large number of fans and stalwart
listeners of the classical music.
Krystyna Jamroz festival
Summary
The above described advertising activities have been
consistently realised for nine years. According to “Pentor”
analyses of The Institute of Public Opinion and Market
Research in 2006 the so-called assisted recognition of PSB
brand was declared by 31% respondents liable for matters
related to building and renovation investments
in households. The level of recognition was 23%. The
knowledge of “Build your house with PSB” program was
declared by 24% of respondents.
The obtained recognition ratios were many times higher
than the performance of other warehouse networks
in Poland and they were similar to the results of DIY
networks.
Photos of statuettes:
Laur Świętokrzyski 2006
 Burial ground
Early Stone Age – early Bronze Age
5600-4300 years ago
Among the oldest amazing findings
at the graveyard are tombs of string pottery
culture people that were there
about 4500-4400 years ago.
Photo 4. Grave with double burial of string pottery
culture population
A grave of that kind was made of vertical shaft and wide
chamber hollowed out in its partition in which a dead body
was put along with gifts. One of the tombs had double burial
– a man and a woman touching their heads in a very
suggestive way (photo 4). This is an extraordinary finding
and one of a kind because until then double burials of adults
were unknown at the territories where local string pottery
culture people lived (the relics of that culture – photos
5 and 6).
Another amazing discovery was connected with the people
of bell-shaped cups culture. These tribes derive from the
territories of north Africa and Iberian peninsula that in
a short period of time about 4000 years ago scattered all
round Europe. Only 28 graves of that culture are known to
have existed on our territory from over 20 graveyards
(settlements were not found until today). Pełczyska is one of
the rare spots on the map of our country where traces of the
presence of representatives of this mysterious population
can be found. Three skeleton burials may be associated with
it; they were discovered at the same hill as the graves of
older Neolithic age population – three among the 28
known, whereas the latest discoveries of that kind took
place in Poland over 20 years ago!
Another sensational finding was connected with the
population of Mierzanowice culture which developed in
south-eastern Poland in the period of about 4300-3660
years ago. One of the most spectacular discoveries
connected with that culture is the first burial of a whole
animal from the early Bronze Age on Polish territory
(photo 7).
Photo 7. Burial of the whole animal
Photos 5 and 6.
String pottery culture relics
18