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  • 1.1 Introduction of Industrial Goods Marketing
  • 1.2 Problem Statement
  • 1.3 Research Objective
  • 2.1.1 Definitions of Industrial Goods
  • 2.1.2 Definitions of Industrial Marketing
  • 2.3Difference Between Consumer And Industrial Marketing
  • 2.4 Importance Of Industrial Marketing
  • 2.5 Types of Industrial Customers
  • 2.6 Industrial Products And Services
  • 2.7 Industrial Product Lines
  • 2.8 Industrial Product Life Cycle & Strategies
  • 2.9 Marketing Strategies for Industrial Products at different stages of PLC
  • 2.10 Planning Strategies For Industrial Marketing
  • 2.11 Market Strategies For Industrial Marketing
  • 2.12 Positioning Strategies For Industrial Marketing
  • 2.13.1 Market Consequences
  • 2.13.2 Product Consequences
  • 2.13.3 Buyer Behaviour
  • 2.13.4 Service Consequences
  • 2.13.5 Channel Consequences
  • 2.13.6 Promotional Consequences
  • 2.13.7 Pricing Consequences
  • 2.14 The impact of the Internet
  • 2.15 Various Marketing Strategies for Industrial Goods
  • 4.1 Case Study-1
  • 4.5 FINDINGS
  • 4.6 Case Study-2 SAMSUNG







The Study on “A Study on the Consequences Arrived While

Developing Market Strategies for Industrial Goods”. The
reason behind preparing the research report is to get information about the various consequences of market strategies arrived in industrial goods. This research helps in understanding the practical applicability, which is a part from theoretical concept. This is done to find the factors when developing market strategies for industrial goods. Finally the finding & suggestions are complied.



1.1 Introduction of Industrial Goods Marketing.

The fundamentals of consumer marketing are equally applicable to the industrial marketing. The work of the industrial market is exclusively different, as all the forces of market that affect industrial demand. The managers of industrial market must react in a different way to change the markets, develop products to meet these changes, and market them in exclusively different ways to the target and sophisticate customers while maintaining corporate policies. Therefore, industrial marketers face many distinctive marketing situations not normally encountered in the consumer market. Further, the industrial market has been the backbone of the high standard of living enjoyed by consumers in past or since the industrial revolution at global level. It is dynamic and challenging in any nation‘s economic growth and development. As and when the principles, knowledge, and practice of marketing cut across all industries, to market effectively in the industrial market than it becomes compulsory for the policy makers to study the industrial marketing differently and to understand the industrial marketing problems.

Industrial goods are products that companies purchase to make other products, which
they then sell. Some are used directly in the production of the products for resale, and some are used indirectly. Unlike consumer goods, industrial goods are classified on the basis of their use rather than customer buying habits. These goods are divided into five subcategories: installations, accessory equipment, raw materials, fabricated parts and materials, and industrial supplies.Industrial goods also carry designations related to their durability. Durable industrial goods that cost large sums of money are referred to as capital items. Nondurable industrial goods that are used up within a year are called expense items.

Industrial Goods Marketing is also treated as Business-to-Business Marketing, or
Business Marketing, or Organizational Marketing. Industrial marketing/business marketing is to market the products and services to business organizations: manufacturing companies, government undertakings, private sector organisations, educational institutions, hospitals, distributors, and dealers. The business organizations, buy products and services to satisfy many objectives like production of goods and services, making profits, reducing costs, and, so on.


machine tools. and to facilitate the operation of their enterprises. The marketing concept is applicable and important in both the industrial and consumer markets due to the differences in terms of the nature of markets. It is evident that consumer marketers have embraced the marketing concept more fully than their industrial counterparts because Industrial customers like organizations-businesses. there is a risk of ―becoming so charmed with a technical accomplishment or particular product parameters that the necessary 6 . Similarly. Many managers in such firms are promoted out of engineering and research and development departments. giving technical advice (or services) to paint-manufacturers is also doing business marketing. a company manufacturing and marketing precision steel tubes to bicycle. and buying procedures. marketing of products and services to individuals. Generally. industrial marketing consists of all activities involved in the marketing of products and services to organizations that use products and services in the production of consumer or industrial goods and services. and other goods and services to business firms/buying organizations need to understand the buyers‘ needs. availability or delivery on daily or weekly basis. a manufacturer is doing business marketing. Industrial marketer of the precision steel tube company must understand the needs of bicycle manufacturers such as Hero Cycle and Atlas Cycle. Sometimes technical values tend to dominate their decision-making. courier services.In contrary. and households is made in consumer marketing. industrial organizations tend to be technically oriented-much more interested in a particular product and its technical development. The consumers buy products and services for their own consumption. and so on. They have to create value (benefit) for the buying organizations (customers) with products and services and focus on buying organizational needs and objectives. a small and proprietary firm. in terms of their quality requirements. policies. Concept of Industrial Marketing The marketing concept for the business enterprises of industrial buyer is to define the needs of a target market and modify the organization‘s product or service to satisfy those needs more successfully than its competitors. When it happens. For example. Further. The industrial marketing concept involves more than facilitating exchange with these customers because it is based upon the structure of a partnership between buyer and seller for the purpose of achieving the organizational goals of both. The companies/selling organizations that sell steel. applications of tubes. families. computers. purchasing power/resources. and government agencies having unique needs. institutions.

to refine and modify product positioning. customer satisfaction should be dominant in all corporate decision making. Providing customer satisfaction must involve all decision makers and will affect product design. and to approach problems in the modern ways. rather than the physical product. to innovate in distribution and other areas to keep up with changing requirements of industrial customers doing business on a multinational basis. Customer benefits and need satisfaction. 7 . it cannot be the exclusive domain of the marketing department. Further. the understanding of the concept of industrial marketing is compulsory for industrial marketing manger: to provide proper guidance and stimulation for research and development of new products. to define the methods for promoting products to customers considering the major increase in the cost of media advertising and personal selling. and long-range profits of the business-organizations. resource utilization. manufacturing techniques. For marketing effectiveness. to exploit and develop markets for new products. to meet stiff competition through modernized business. so. the product should always be regarded as a variable and should be viewed from the perspective of the customer. should be the center of attention. It is more serious in industrial marketing due to the complexity of the problems customers are attempting to solve. Moreover. demand analysis.flexibility for responding to customer needs in a competitive market place disappears.

There were certain problems. which compelled this topic to be taken as research study. 3) What are the various positioning criteria for Industrial Marketing? 8 . A researcher must find the problem and formulate it so that it becomes susceptible to research.1. 2) How the target was developed and set in Industrial Marketing. DEFINING THE PROBLEM 1) To analyze the variation for better planning in Industrial Goods Marketing.2 Problem Statement In research process the first and the foremost step happens to be that of selecting and properly defining a research problem.

9 . Finding of consequences arrived in Market Strategy for Industrial Marketing.3 Research Objective For the previously problem statement the following will be the objectives:• • • To find out how Planning Strategy is done for Industrial Marketing. Factors involved in developing Positioning Strategy for Industrial Marketing.1.


• Industrial Marketing is the practice of individuals. use them as components in products or services they offer. and attractive commercial terms.1Definitions 2.1. training. technical. Generic products are made differentiable by adding tangible enhanced properties such as product features. 2. styling and quality. maintenance and repair services.1 Definitions of Industrial Goods. timely delivery. 11 . including commercial businesses. Basic properties are included in the generic product. governments and institutions. and personal relationship between the buyer and the seller. with fundamental benefits sought by customers. or organizations.1. enhanced. A product is a combination of basic. The augmented properties include intangible benefits such as technical assistance.2. The product package as expected by the prospective customers should be well understood by the industrial marketer. and augmented properties. Industrial goods are those an industry uses to produce an end product from one or more raw materials. • Industrial marketing (or business to business marketing) is the marketing of goods and services by one business to another. warranties.2 Definitions of Industrial Marketing. legal. or use them to support their operations. facilitating the sale of their products or services to other companies or organizations that in turn resell them. Industrial product is defined as a complex set of economic. available of spare parts.

While consumer marketing is aimed at large groups through mass media and retailers. the negotiation process between the buyer and seller is more personal in Industrial marketing. 12 . offering and freely exchangeable goods and services of value with others”. • According to Philip kotler. • Industrial Marketing is the process of determining industrialists demand for a goods or service. “Industrial Marketing is a societal process by which industrialists obtain what they need and want through creating. anticipating and satisfying industry requirement.• According to American Marketing Association (AMA). communicating and delivering goods to industrialists and managing relationships in the ways that benefits the organization and its stake holders”. According to Hutt and Speh (2004). motivating its sales and distributing it into ultimate consumption at a profit. most business marketers commit only a small part of their promotional budgets to advertising. While that advertising is limited. Marketing to a Industry trying to make a profit (business-to-business marketing) as opposed to an individual for personal use is similar in terms of the fundamental principles of marketing. and that is usually through direct mail efforts and trade journals. • Industrial Marketing is the management process for identifying. Dwyer and Tanner (2006) note that Industrial marketing generally entails shorter and more direct channels of distribution. it often helps the Industrial marketer set up successful sales calls. 2. “Industrial Marketing is an organizational function and a set of processes for creating.3Difference Between Consumer And Industrial Marketing Although on the surface the differences between Industrial and consumer marketing may seem obvious there are more subtle distinctions between the two with substantial ramifications.

organization or firm. especially those business man (one who runs the business) and also the business owner know exactly what they mean when they are into a business.In B2C.  Position and price to align the product or service with its market. A B2C sale is to a "Consumer" i. often an intricate balance. to create profit. but ultimately the sale is to a single person who pays for the transaction. they must pay attention with the return on investment.e. • All of business people including employee. which is to make money. as the important factor. The marketing mix is affected by the B2B uniqueness which includes complexity of business products and services. 13 . and  Communicate and sell it in the fashion that demonstrates its value effectively to the target market. 2.e. diversity of demand and the differing nature of the sales itself (including fewer customers buying larger volumes). B2B sales typically involve multiple decision makers. To make the goals achieved. the marketer must always:  Successfully match the product or service strengths with the needs of a definable target market. Because there are some important subtleties to the B2B sale. they have to manage their industrial marketing. an individual who may be influenced by other factors such as family members or friends. Given the complexity of organizational structure. supplier. They all agree to one purpose. B2B and B2G marketing situations.4 Importance Of Industrial Marketing. But how do they know about what they have been doing? Do they have reached what they aim at the first time they setting up their business? In this case. everyone that engaged into a business. the issues are broken down beyond just the original 4 Ps developed by McCarthy. A B2B sale is to a "Business" i.

General Motors. • In internet business. this industrial marketing helps those internet companies that most of them are being blind about who is their customer. profit-seeking organisations such as IBM. (iii) Institutions. Industrial customers are normally classified into four groups: (i) Commercial Enterprises. i. Commercial Enterprises: Commercial enterprises are private sector. In summary. and (iv) Co-operative Societies.So. 2. So. this industrial marketing program also helpful in building a bridge between themselves and their customer. Computer Land. purchase industrial goods and/or services for purposes other than selling directly to ultimate consumers. Industrial Marketing helps all company to bear the bridge between buyer and seller. since they purchase products for different uses. and Raven Company. However. while also helps those internet companies to know their return on investment. (ii) Governmental Agencies.5 Types of Industrial Customers. it is more useful from a marketing point of view to define them in such a way as to understand their purchasing needs at the time of examination of the varieties of products they purchase 14 .

and how marketing strategy can be developed to meet their needs. 15 .

Cooperative Societies: An association of persons forms a cooperative society. colleges. Cooperative Housing Societies). it is an OEM. the largest purchasers of industrial products are Central and State Government departments.g. and so on. Government Customers: In India. and component parts. Some of these institutions have rigid purchasing rules and others have more flexible rules. Materials and Parts: Goods that enter the product directly consist of raw materials. undertakings. When the same firm purchases sugar for processing the cakes. It can be manufacturing units (e. a) Raw Materials: These are the basic products that enter in the production process with little or no alternations. department of telecommunication. 2. schools. such as railways. They are also the industrial customers. iii. The purchasing company. defense. (ii) Capital items. it is a user customer. 16 . iv. Cooperative Sugar Mills) or non-manufacturing organisations (e.g. They may be marketed as either OEMs or user customer. An industrial marketing person needs to understand the purchasing practice of each institute so as to be effective in marketing the products or services. manufactured materials. when a large bakery purchases natural gas to fire the ovens that are used to produce cakes.6 Industrial Products And Services.ii. state transport undertakings. and universities are termed as institutional customers. Institutions: Public and private institutions such as hospitals. Cooperative Banks. These Government units purchase almost all kind of industrial products and services and they represent a huge market. and agencies. state electricity boards. discussed as follows: i. (iii) Supplies and services. as part of manufacturing cost treats the cost of these items. For instance. The industrial products and services are classified into three broad groups: (i) Materials and parts. Director General of Supplies and Disposal (DGS&D).

The component parts are also sold to the dealers or distributors. These items are shown in the balance sheet as plant and equipment. an aluminum extrusion unit buys aluminum billets to manufacture aluminum-extruded products such as door and window frames. and steel that are the basic ingredients of many manufacturing activities. Capital items: Capital items are used in the production processes and they wear out over certain time frame. aluminum billets are called manufactured materials. small electric motors. and are fixed assets to be depreciated over a period of years if they are absolutely purchased. batteries and instruments can be installed directly into products with little or no additional changes. b) Accessories/Light Equipment: Light equipment and tools which have lower purchase prices and are not considered as part of fixed plant.. office buildings and fixed equipments like machines. When these products be sold to customers who use them in their production processes. These are classified as follows: a) Installations/Heavy Equipment: Installations are major and long-term investment items such as factories. Acids. they are marketed as OEM goods. if these are leased. furnaces. typewriters and computer terminals. and earth moving equipment. Generally they are treated as a depreciation expense by the buying firm or user customers. As the unit purchase price of capital items is high. which is roughly equivalent to the expected life of the fixed assets.g. who resell them to the replacement market. Purchases of accessories are either considered as current expenses with purchase 17 . ii. For example. fuel oil. However. finances these items. jigs. borrowing money for a period of time. MICO spark plugs are sold to a truck or car manufacturer. are power operated hand tools. by using an extrusion press. Thus. generators. turbines. dies. as well as to automotive dealers/distributors throughout India. For example. the purchaser treats the cost for tax purpose as an expense. c) Component Parts: Component parts such as electric motors.b) Manufactured Materials: Manufactured materials include those raw materials that are subjected to some amount of processing before entering the manufacturing process e.

Product lines of industrial firms differ from those of consumer firms. technical services etc.7 Industrial Product Lines. E. soaps. 1. 2. Industrial Services: Here. oils and greases. these items are standardized and marketed to a broad section of industrial users. b) Services: Companies need a broad range of services like building maintenance services. housing. and so on. They do not become a part of the finished product. Proprietary or Catalog Products: These items are offered only in certain configurations and produced in anticipation of orders. Out Sourcing. 4. marketing research services and others. c) Plant and Buildings: These are the real estate property of a business/ organisation. Product line decisions include the addition. 2. plants (factories). auditing services. Custom built Products: These items offered as a set of basic units with numerous accessories and options. the firm provides not an actual product but its capability on area such as maintenance. Internet. a) Supplies: Items such as paints. iii. or they may be considered as fixed assets and therefore. stationery and paper clips come under this category. Industrial Product lines can be categorized in to four types. depreciated over a period of few years. Innovations.prices taken as operating expenses in the year purchased. legal services. For eg. parking lots. 18 . warehouses. courier services. 3. Custom Design Products: These Products are created to meet the requirements of one or a few of customers. It includes the firm‘s offices. Generally.Business. They are treated as operating expenses for the periods in which they are consumed. pencils. The product line decisions in case of such products centre on offering the proper mix of options and accessories. Supplies and Services: Supplies and services sustain the operation of the purchasing organisation. typewriter ribbons. deletion or repositioning of products within the line.

it becomes easy for the competitors to enter the market because of non-availability of the product and high profits due to high prices. changing needs of the customers will have a strong bearing on the behaviour pattern of Product Life Cycle. According to the Product Life Cycle theory. Factors such as changing technology. Improve distribution network to enable the customers‘ easy availability of the product. products tend to go through different cycles of stages that begin when they are launched in the market and ends when they are eliminated from the market. 2. At the dividing line between the growth and the maturity stages the profit curve is at its peak. changing competition.8 Industrial Product Life Cycle & Strategies Like living beings products have life cycle. Hence price should be reduced. As a result of increased volume of production the cost will be lowered. 19 . If these strategies are not implemented by industrial marketers in the growth stage.9 Marketing Strategies for Industrial Products at different stages of PLC Introduction Stage: Depending upon the changes in the users habits some of the industrial products are accepted rapidly after introduction and others are accepted a bit slowly. sales volume continues to increase at a decreasing rate but the profits fall. 1 2 3 1. Growth Stage: During the growth state the marketing strategies of an industrial marketer should focus on three important areas. 3. Improve Product design to offer more benefits 2. In the maturity stage. The Product Life Cycle is depicted by the sales curve of the product since its introduction. the marketing strategies which meet intense competition should be evolved. For products that are accepted fast.2. For slowly accepted industrial products marketing strategies should concentrate on market development efforts.

Marketing planning differs from Strategic market planning in three ways: 20 . To cut production. marketing and other costs to maintain profit margins. The marketing strategies to be adopted for an industrial product in the maturity stage are. As a result of increased competition the profits will be reduced. To find out the ways and means of satisfying the existing customers 3. Under this stage an industrial marketer should adopt the strategy of withdrawing the existing product from the market or introduce a new product as a replacement or reduce marketing or other costs to make some profits.Maturity Stage: In maturity stage the number of competitors entering the market will increase. Decline Stage: This stage is characterized by sever price competition and concurrent decline in sales and profit. Marketing planning involves the selection of a marketing strategy and the tactics of implementing it to reach a defined set of goals.10 Planning Strategies For Industrial Marketing. 2. 1 2 3 1. To enter the new market 2.

 The first is developing a clear sense of the company's mission. objectives and issues. and be managed as independent profit centers. and technologies define a business. direction.  The fourth activity calls for expanding present businesses and developing new ones to fill the strategic-planning gap. and c) Details. threats and opportunities. and functional plans. face specific competitors. A well-developed mission statement provides employees with a shared sense of purpose.  The third activity calls for allocating resources to the various SBUs based on their market attractiveness and company business strengths. current marketing situation. marketing strategies. Its customer groups. 21 . b) Responsibility. Corporate strategic planning involves four planning activities. and opportunity.a) Time Horizon. objectives and goals. business portfolio.  The second activity calls for identifying the company's strategic business units (SBU). SBUs are business units that can benefit from separate planning. action plans and control measures. The components of marketing planning are: • • • • • • • executive summary. customer needs. The strategic planning process consists of developing the company's mission.

For example. Marketing has different roles to play at different hierarchical levels of the firm. willingness and authority to purchase such products (conditions needed for an exchange). Setting the direction for marketing. And at the business and operational level. 2. the firm can gain a competitive advantage by designing the marketing strategy aligned with strategies of other functional areas. It is required at all the levels of the firm from the business operations level to corporate level. we need to develop a target market . After drawing a strong strategy plan. and positions the value proposition of the firm.Developing a target market strategy has three phases: 22 . In business markets. analyzes the market structure.Strategic planning plays a vital role in coordinating and directing the business activities toward organizational goals. it needs the best of strategies. the marketing strategy is concerned with segmenting. Types of markets: • • Consumer Intend to consume or benefit.11 Market Strategies For Industrial Marketing. the marketing strategy supports customer oriented decisions. general daily operations. as individuals or organizations. Strategic Planning involves three main activities:    Setting the objective of a business. at the corporate level. but not to make a profit. Shaping Product and Services. and deciding on marketing mix strategies. Organizational for Resale. targeting. have needs for products in a product class and who have the ability. What is a Market? A market is an aggregate of people who. Developing a Target Market Strategy A Product will not sell by itself. Direct use in production.

1 2 1. Eg.5. Targeting the market(s) • • • Undifferentiated Concentrated Multi-segmented 1. the same consumer may be willing to purchase only 1 Kg if the price is Rs. As marketers we need to aggregate consumers with similar needs. o Clustered Demand. the price of substitute goods. Selecting Target Markets by Analyzing Demand Demand is the quantity of a good that consumers are not only willing to purchase but also have the capacity to buy at the given price. It can also be described mathematically by a demand equation.uniform. For example. However. The main determinants of the quantity one is willing to purchase will typically be the price of the good.00 per Kg. The capacity to buy is sometimes used to characterize demand as being merely an alternate form of supply. We need to identify demand patterns. It can be represented on a graph as a line or curve by plotting the quantity demanded at each price. one's level of income. a consumer may be willing to purchase 2 Kgs of potatoes if the price is Rs. Automobiles:   luxury cheap 23 . they are: o Homogeneous Demand. Identification of demand could be done by asking the following questions and analyzing the same. Do all potential customers have similar needs/desires or are there clusters? What are the demand patterns? A marketer can normally identify 3 demand patterns. everyone demands the product for the same reason(s). and the price of complementary goods.3 per kg. Analyzing consumer demand 2. A demand schedule can be constructed that shows the quantity demanded at each given price. personal tastes.consumer demand classified in 2 or more identifiable clusters.

for any kind of person or cloth one soap. Firms try to modify consumer demand to develop clusters of at least a moderate size. try to make demand more homogeneous. Examples include Staple foods-sugar and salt and farm produce. a. Single Marketing Mix consists of: • • • • 1 Pricing strategy 1 Promotional program aimed at everybody 1 Type of product with little/no variation 1 Distribution system aimed at entire market The elements of the marketing mix do not change for different consumers. 2. This would include 3 approaches in which a marketer can target its consumers. Market Segmentation Approach. b. all elements are developed for all consumers. Homogeneous market or demand is so diffused it is not worthwhile to differentiate.Product differentiation more costly and more difficult to communicate.  Sporty Spacious o Diffused Demand . All consumers have similar needs for a specific kind of product. need to offer hundreds of shades of lipstick. Eg. If this approach is incorporated into an organization it must be able to develop and maintain a single marketing mix. 24 . Cosmetic market. Nirma Detergent soap – for any kind of stain. can identify how the consumers can be targeted. Targeting the Market After analyzing the demand pattern we as marketers. Eg. In this case a Single Marketing Mix for the entire market identified is laid out. Undifferentiated Approach (Total Market Approach) – This approach does not differentiate the market according to any variable.

groups or organizations with one or more characteristics that cause them to have relatively similar product needs. Concentration Strategy: A firm that does targeting of only one segment with a unique marketing mix is referred as concentrated marketing strategy. it may decide to go for concentrated strategy. water proof…. Example: Titanwatches ranging from Rs. They would like the best of products at a very economical price. executive watches to sports watches. There are two Market Segmentation Strategies: i. The purpose is to design a Marketing Mix (s) that more precisely matches the needs of individuals in a selected market segment(s). or organization. there are clusters of needs. 250 to more than a lakh. Here 2 or more segments are sought with a Marketing Mix for each segment. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market. positioning is the technique by which marketers try to create an image or identity in the minds of their target market for its product. brand. Positioning is something (perception) that is done in the minds of the target market. plastic to the hardest of metal. ii. In marketing. 2.Indians are very price conscious people.12 Positioning Strategies For Industrial Marketing. Market segmentation is the process of dividing a total heterogeneous market into market groups consisting of people who have relatively similar product needs. different marketing plan for each segment. A market segment consists of individuals. etc. Well there is another set of people who believe the higher the price better he quality of product. It can be understood that Individuals with diverse product needs have heterogeneous needs. 25 . It the company is small or new to the field. Multi-segment strategy: Here targeting is inclusive of many segments using individual marketing mixes is called differentiated marketing strategy.

Channel Consequences. Price Consequences. Simply. Promotional Consequences. 4. you have a chance at getting their attention.1 Market Consequences. 26 . Both of these conditions are necessary for a good positioning. Positioning is important because you are competing with all the noise out there competing for your potential fans attention. This is considered a benefit by your target market. 2. Product Consequences. 2. positioning is how your target market defines you in relation to your competitors. 5. Market Consequences. Service Consequences. Advertising Sales and Promotion. What makes you unique? 2. A good position is: 1. Positioning is expressed relative to the position of competitors.13 Various consequences arrived while developing Marketing Strategies for Industrial Goods. 2. The term was coined in 1969 by Al Ries and Jack Trout in the paper "Positioning" is a game people play in today’s me-too market place" in the publication Industrial Marketing. 1. If you can stand out with a unique benefit.A product's position is how potential buyers see the product. 6. 7. 3.13. 8. Buyer Behaviour.

Size of the Market: In the case of industrial markets. These oligopsonists‘ reactions to changes in one another's buying practices affects industrial marketing strategy decisions. 2. and 72 percent of all plate glass produced in the United States. For instance. large private and public sector organisations. the Leh Hills. Such concentration occurs mainly because of natural resources and manufacturing processes. only three or four customers may comprise the major portion of a total market. tend to dominate many markets. b. oligopsonistic buying organizations. the geographic location of natural resources explains the concentration patterns of most energyproducing firms. Different Product consequences arrived while developing Marketing Strategies for Industrial Goods: 27 . oligopsonistic buying organisations (very large firms) tend to dominate many markets such as.2 Product Consequences.Thus locations are chosen to facilitate the attraction of intelligent. Geographical Concentration: Industrial customers also tend to be concentrated in specific areas of the India such as Andaman Nikobar. organizations that are very large firms. the small number of large automobile producers in the United States purchase 60 percent of all synthetic rubber. c. For example.13. it is common to find less than 20 companies to represent the total market for an industrial product or service. educated employees. Competitive Nature: There must be an difference between the two markets nature of oligopsonistic buying. For eg. In industrial arena.Different Marketing consequences arrived while developing Marketing Strategies for Industrial Goods: a. In the industrial arena. 60 percent of all lead. large power transformers or high-tension switchgears. who seek both intellectual challenges and physical pleasures. there are limited numbers of customers-mainly State Electricity Boards. In fact.

b. and finance departments.a. Customised: In industrial marketing. such as compliance with product specifications product quality. the purchases are made based on the specifications evolved by the buyers. The relationships between the sellers and buyers are highly valued and they become stable in the long run because of a high degree of interdependence.4 Service Consequences. timely supply. After the initial offer made by a seller. Because of the importance given to the technical aspects of products. the products or services are generally technically complex and not purchased for personal use.13. acceptable payment and other commercial terms cost effectiveness. the products or services are generally customised for personal use. In industrial marketing. commercial/materials. and so on rather than on social and psychological needs. availability. the buying process is more difficult as compared to consumer marketing.3 Buyer Behaviour. The buying decisions generally take a longer time and involve many individuals from technical. 2. They are purchased as components parts of the products and services to be produced or serve the operations of the organisations. Technical Complexity: In industrial marketing. Therefore.13. Different Product consequences arrived while developing Marketing Strategies for Industrial Goods: 28 . 2. The purchase decisions in industrial marketing are based on many factors. there are negotiations and exchange of information between the specialists and representatives from both the buyer and the seller organisations. after-sales service. inter-organisational contacts take place and interpersonal relationships are developed.

delivery or availability of product. transportation and providing related services. Service: Service is defined as an activity that satisfies the customer's wants. industrial customers wants a greater importance on timeliness. Indirect Channel Structures: In indirect channel structures.5 Channel Consequences.a. b. Delivery and Availability: As compared to consumer marketing. jobbers. brokers. Intangibility. inseparability. The various tasks involved in this process are contacting the potential customers. storing the products. commission merchants. the various tasks like contacting the potential customers. Direct Channel Structures: In direct channel structures. Some of the examples of indirect channel are manufacturer‘s representatives (or agents). telemarketing. commission merchants. storing the products. heterogeneity. industrial dealers or distributors. Internet marketing) b. Timely. the entire task necessary to create sales and to deliver the products to industrial customers is performed by the manufacturers themselves. financing and selling. transportation and providing related services is shared both by the manufacturer and the intermediaries. value-added resellers. 2. specialization and technology are important characteristics of industrial services that differentiate them from industrial products. communicating and negotiating with them. Some of the examples of direct channel are direct sales (through the company sales force) and direct marketing (through direct mail. Inventory or stock control is very much important factor in the business organisations therefore the distribution channels are needed more direct from the manufacturer to the customer in industrial marketing. a. communicating and negotiating with them. because any delay in supply will have a significant impact on the production or operations. financing and selling. Indirect distribution is used in industrial 29 . drop shippers. perishability.13.

2. and development of media strategy. electrical wiring materials and supplies. persuade and influence the decision making power of prospective and existing customers. industrial dealers or distributors. technical reports. c. drop shippers. The advertising planning process starts with the setting up of advertising objectives. Middlemen: The industrial middlemen are the intermediaries used by the manufacturers to deliver their products to the end users.chemicals. value-added resellers (VARs). The industrial marketer sets advertising objectives based on the marketing strategy. commission merchants. brokers. sponsorship of events. catalogs. iron and steel products. general industrial machinery. budgets. construction materials.13. It also provides support to channel members like distributors and intermediaries.6 Promotional Consequences. They are categorized based on the number and the extent to which they specialize in the performance of certain functions. This is done through trade shows and fairs.Various consequences involved in this strategy are: a. Promotion strategy is used by the industrial marketers to inform. b. The advertising objectives may be sales-oriented or communication objectives. 30 . Through sales promotion activities. Sales Promotion: Industrial marketers can also go in for sales promotion. Advertising: Industrial advertising plays a crucial role in creating awareness about the marketer's offerings among its target customers and in improving the sales efficiency. and ends with evaluation of the effectiveness of advertising. It also provides an impetus to the sales personnel by increasing the effectiveness of their selling activities. marketers make specific appeals to the target customers. etc. message selection.. jobbers. Different types of industrial middlemen are manufacturer’s representatives (also called agents). The objectives of promotional strategy vary from company to company where some companies use the strategy for capturing selected markets while others use it to increase or stabilize the sales and to give additional information and added value of their products.

The industrial marketers should understand the various aspects of the pricing. When the members of buying committee of a buying firm. trade shows are a prominent method of sales promotions. the total product includes much more than its physical attributes. Their public relation activities are directed at present and prospective customers.13. and promotion strategy are related to pricing strategy. Different strategies such as market segmentation strategy. etc. In the same way the cost of industrial products includes much more than the seller‘s price. etc. and delivery reliability. product quality. a feeling of security and other personal benefits flowing from the buyer-seller relationship are also important. local communities.samples. shareholders. suppliers. gifts. In order to achieve the dual objective such as to meet the company objective and satisfy the market needs. internal skill sets. channel members.7 Pricing Consequences. crisis management. gaining recognition in the marketplace. friendship. nurturing employee morale. since pricing is the most critical part of industrial marketing strategy. product strategy. The bundle of attributes expecting by the buying committee are fall under three categories: (1) Product specific attributes (2) Company related attributes and (3) Sales personal related attributes. Therefore. The degree of outsourcing of the PR activities depends on the organization's size. decisions on pricing and products are inseparable and must be balanced with in the firm‘s market segmentation plan. they are buying a given level of technical service. The other elements such as the reputation of the supplier. employees and trade unions. Public Relations: Industrial marketers also make use of public relations with various objectives such as improving the image. 31 . Hence. Morris has identified seven distinguishing characteristics of Industrial prices. c. In industrial marketing. government and other influential groups. the industrial marketer has to integrate the various strategies. etc. purchase a particular industrial product. 2.

fluctuation in exchange rates etc. trade in allowances etc. Prices can be resolved through negotiation in many a cases. discounts. The real price an industrial customer pays is quite different from the list price. changing the time and place of payment and also in numerous other ways prices can be changed. Hence. change in interest rates. 6. 4. this is because of the factors like delivery and installation cost. 3.14 The impact of the Internet 32 . changing the premiums and discounts that are offered. 2. By changing the quantity of goods & services provided by the seller. industrial pricing is often characterized by an emphasis on fairness.1. This problem is particularly critical for the marketer locked into long term contract with no escalation clause. Industrial prices are affected by several economic factors such as inflation. financing cost. 5. training cost. Compare to product and distribution decisions. The complimentary and substitute product sold by the same company should be considered at the time of deciding price for industrial goods. Industrial buyers who are experienced and able to estimate the vendors‘ approximate production costs expect the increasing price to be justifiable on the basis of either increasing cost or improvement in product. It is intertwined with product promotion and distribution strategies. In most of the cases the industrial prices are established by competitive bidding on a project by project basis. 7. 2. the decision regarding pricing is more flexible. Price is not an independent variable.

in the business marketing world. While this exchange did not stand the test of time. Hutt and Speh (2001) note that such virtual marketplaces enable companies and their suppliers to conduct business in real time as well as simplify purchase processes and cut costs. Infomediaries. two new types of resellers have emerged as byproducts of the Internet: infomediaries and metamediaries. are companies with robust Internet sites that furnish customers with multiproduct. All three companies were pursuing their own initiatives when they realized the economies of scale they could achieve by pooling their efforts. Dwyer and Tanner (2006) note that business marketers not only use the Internet to improve customer service but also to improve opportunities with distributors. a decade ago who would have imagined Ford. With the advent of b-to-b exchanges. According to Anderson and Narus (2004). multivendor and multiservice market space in return for commissions on sales. They charge companies fees to find information on the Web as well as for banner and pop-up ads and search engine optimization services. such as W. For example. General Motors and DaimlerChrysler entering into a joint venture? That's exactly what happened after all three of the Big Three began moving their purchases online in the late 1990s. and its members have combined sales of about $1 trillion. or GNX. including Agentrics. 3 key elements link the organization to its customers:  Information Technology  Micro Marketing  Relationship Marketing 33 . or middlemen. others have. Metamediaries. are search engine companies that also function as brokers.W. LLC. Grainger. with DaimlerChrysler representing the third partner. Thus was born what then was the world's largest Internet business when Ford's Auto-Xchange and GM's Trade exchange merged. which was formed last year with the merger of Worldwide Retail Exchange and GlobalNetXchange. Agentrics serves more 50 retailers around the world and more than 300 customers. the Internet ushered in an enthusiasm for collaboration that never existed before--and in fact might have even seemed ludicrous 10 years ago.The Internet has become an integral component of the customer relationship management strategy for business marketers. such as Google and Yahoo.

just for example When a widget breaks. the engineer doesn't go onto the internet and type in that he is looking for an a widget that does XYZ – he types in the brand name of the widget that's damaged and then tries to find who his closest local supplier of the same widget is. STRATEGY NO-2 If your agency or marketing manager can put a well-presented CASE STUDY OR PRESENTATTION in front of 20 of the right consumers. a lot of focus needs to be placed on reinforcing the BRAND NAME . presented in a format and language that is easy to understand. Sounds simple – but a number of PR and marketing professionals go off on a tangent promoting this benefit or that feature and forget to focus on pushing the strongest feature an industrial product has – its brand name.15 Various Marketing Strategies for Industrial Goods There are some strategies which I would prefer to do marketing for these types of industrial productsSTRATEGY -1 Key things to consider when marketing these products are: • As a marketer for these kinds of industrial applications or products. STRATEGY NO-3 34 . It's not particularly exciting from a marketer's point of view – but imperative if you want the brand to be found.2. you may find your return on investment is better than if it were simply blanket editorial or advertisement in any publication and newspaper which might consider using your article as a space filler.

13. Hiring additional Sales Staff 4. Selling present offerings to New Markets with present distribution channels 5. Changing Trade Promotion Spending 7. channels or offices 6. 2. Changing Advertising Spending 8. Launching a new Advertising Program 11. New Product Development 9. Customers to be contracted are fewer in number. So as per these strategies firm selling industrial products or services like your company tries to find new business opportunities. These activities include1.I know that the links to four marketing strategies mainly are • • • • Market Penetration. Need for providing technical information about the product to salesman & consumer 12. Better use of Capacity 3. various marketing mix activities can serve to limit or enhance the chances for success. Adding New Outlets. Training Existing/New Sales Staff. The channels of distribution involved are shorter & quicker 35 . Competitive Pricing of the product line 10. Product Development. Market Development Diversification.

It is also his duty to provide sample for 'trial running'. STRATEGY NO. STARTEGY NO -5 SOME PROMOTIONAL OFFER • • • • • • • Provision of guarantees Free goodies Increase credit period Quick Transportation System Personal attention After sales service Provide free samples How to do advertising Still. therefore. But in the case of industrial products this method cannot be applied as the 36 . Necessity for a direct contact between producer and user especially for rendering 'presales' and 'after-sales' services.4 Personal Salesmanship is. It is concerned with conveying information about a product or a service. advertising is meaningful as the demand for industrial goods. He should also have the ability to convince the customers of the savings resulting form the purchase of the equipment or material he wants to sell. the services of an efficient a trained salesman are inevitable.14. In the case of consumer products advertisements are given through all the possible media. He must have technical knowledge of his customer's production processes. highly needed in the industrial goods market. and the company producing that product to potential buyers. The nature of the salesman's job is dependent on the buying situation. Whether it is the selling of raw materials or supplies or selling the capital equipments.

Where. the type of media used will depend largely upon the market and the type of media used will depend largely upon the market and the type of product.number of buyers is small. Other mass media such as national and trade press are often effective. radio or television advertising can seldom be justified. In other words. government departments and public authorities are the main product outlets. • In an industrial market environment. Direct mail of high quality product literature would be apt. • • • 37 .

It studies about experiences. Opposite to quantitative 38 research approach.1 RESEARCH DESIGN Qualitative research Qualitative research approach is one of the main approaches of research methodology.CHAPTER-3 Research methodology RESEARCH METHODOLOGY 3. behaviors and attitudes from the respondents. case study. participant observation. content analysis and so on. it does not use . Qualitative methods include interview. ethnography.

However. Due to my research questions asking “Why” and “How”. Case study method involves an in-depth examination of a single event: rather than using large examples and following a rigid protocol to examine a limited number of variables. qualitative research method uses logic to interpret gathered data. 2006). which gives it low reliability. 39 . The borders of the event are not obviously clear at the beginning of the research and no experimental control or management is used (Wikipedia. . The qualitative methods are based on smaller sample sizes and are often not representative of the population. . There is no approach that is more suitable than all others for all purposes. It uses many methods to collect information from one or a few units such as people or organizations. When compared to quantitative research.The complication of the unit is examined seriously. Many researchers have mentioned that each research approach has advantages and disadvantages. Case study: definition A case study is one type of qualitative research method. Moreover. Although qualitative method usually cannot be replicated or repeated. the research is more intensive and more flexible. One or few units are tested.Data are collected by many ways. Case study is particularly suitable for certain kinds of problems. it has weak points which are more expensive and difficult to measure. it can give in-depth detail in some more specific issues than quantitative method. 2006). which makes it difficult to achieve reliability and validity (Wikipedia.Event is observed in a natural setting. These are main characteristics of case studies categorized by Myers and Avison (2003).mathematical and statistical methods. . allowing the researcher to search since he or she has greater latitude to do so. using qualitative methods will be the best solution to define the answers.

The researcher should have an open attitude for exploration. A test is considered reliable if the researcher can get the same result repeatedly and an accurate representation of the total 40 . . classification and hypothesis development phases. This will help to see how knowledge sharing to gain competitive advantage. . I have chosen to analyze the case that represent a part of service industry because it is an example of service company that use knowledge management and the sector is financial sector. a large bank that uses knowledge management to compete with other banks in its service industry. In this thesis.- Case studies are more appropriate for the exploration.The derived outcomes rely on the combined powers of the researcher. .No experimental controls or management are concerned. Case study research is suitable for ‘how’ and ‘why’ questions The researchers want to focus on current events. .The researcher may not identify the set of dependent and independent variables before. the companies manages Reliability and validity Reliability refers to the consistency of a measure. Data collection methods can be changed when the researcher develops new hypothesis.

Validity is not determined by a single statistic. it is important not to seek only for frequencies but to focus on meanings or interpretation as well.population. If all sources from two case studies provide the same findings. the research instrument is considered to be reliable. At the same time. the reliability will gain during the analysis part when those proved information can be interpreted in the consistent manner. . 3. the reliability and validity will be obtained through acquiring and analyzing data from many sources. this study will gain the validity. Yin (1984) gives the ways to find sources of data that work suitably for case research.2 DATA COLLECTION METHODS There are many methods of data collection usually used in case research studies. Data from two or more sources will help to support the research answers. It is vital for a test to be valid in order for the results to be accurately applied and interpreted. Validity is the extent to which a test measures what it claims to measure.Documentation . To measure reliability and validity in qualitative method. Reliability and validity are mostly found from conducting quantitative method. If the results of the study can be reproduced under a similar methodology and will not fail to perform within specified limits in a given time while working in a stated environment.Archival records 41 . but by a body of research that demonstrates the relationship between the test and the behavior it is intended to measure. The data from different sources can help crosschecking the information. In this study.

- Interviews .3 DATA PRESENTATION The main parts of data analysis are important to the outcomes of case research. Most information in this thesis is from secondary data which are collected from textbooks. The reasoning of researchers should be clearly stated and defended in establishing hypotheses. Collected specific data depends on the research questions and the part of analysis. These stages make readers can follow easily. For example. using multiple-case design can help me gather Various information and examples to analyze and compare different companies in service Industry. and to results and conclusions. and documents that related with the research topic. Also. There are many ways to analyze the data including using templates. then to specific data discovered. 3. The richness of data of the research should be presented. to assumptions and design choices. These plans will help researchers when they have to work with other researchers. they should list resources to be gathered such as documentation or they plan for questions to interview.Direct observation Physical artifacts The goal of data collection is to gain rich data that suit for the research. web sites of knowledge management and corporate culture. The researchers should plan what data they will collect. The goals of this stage are to ensure that researchers can collect data that they want and spend time appropriately. The research should begin from purposes and questions. grounded theory and 42 .

from another dataset. Due to my time limitation. Secondary analysis will often involve adding another variable to an existing dataset. The concept of this approach is that the present researcher to use the data that was another researcher for other purposes.discourse analysis. the Hypothesis is been mentioned in the Analysis of the Case. Secondary data analysis is only limited by the researcher's imagination (O'Connor. their own. This variable will be something that the researcher collects on 2006). Secondary data analysis is also one of qualitative data analysis. 43 . or from a common source of information. I have chosen has intended to use the secondary data analysis because originally compiled by this approach is the reanalysis of data. Since I am going to prove my Hypothesis through Case-Study method.

Though HMCL had entered India way back in 1984 by entering into joint ventures with leading two-wheeler companies.4 ANALYSIS AND FINDINGS 4.Honda Motorcycle and Scooters India Limited (HMSI) in October 1999.1 Case Study-1 HONDA MOTORS The case discusses the marketing strategies of Japan-based Honda Motor Company Limited (HMCL) in India. Within a 44 . the company established its wholly owned subsidiary .CHAPTER.

(HMSI). HMSI expected sales of 56. The case describes in detail the product. Ltd. compared to the scooter market. the year when the HMCL joint venture agreement with the Hero 45 .1 launched its first 150cc motorcycle named ‘UNICORN’ Priced at Rs 50.3 bhp engine with five gears. Honda Motorcycle and Scooters India Limited (HMSI). "Its symbol. Japan. Unicorn had a four stroke 13. Still. Unicorn was promoted with the caption "Be a wing rider. conforming to international norms. distribution and promotional strategies of HMSI. the leader with 75 percent market share in that segment. traditionally considered a scooter market. Unicorn looked sportier than all the existing motorcycles in the premium segment and was pitted against Bajaj Pulsar. When HMSI was incorporated in late 1999. a wholly owned subsidiary of Honda Motor Company Ltd." New product launching In September 2004. witnessed a gradual migration towards motorcycles from the 1990's. Delhi). Dio and Eterno. the Wings. It briefs the challenges faced by the company and its recent foray in the motorcycles business in India. pricing. represents the company's unwavering dedication in achieving goals that are unique and above all. HMSI had emerged as the largest scooter company in India. Targeted at youth.043 (ex-showroom price. the wholly owned subsidiary of the Japan-based Honda Motor Company Limited (HMCL).. The new bike was available in five colours and was designed to achieve a speed of 0 to 60 kmph in five seconds. LML's Graptor and Hero Honda's CBZ (Refer Exhibit II for a comparison of leading motorcycle models in India). These wings are here to initiate a change and make a difference in the Indian two-wheeler industry. The Indian two-wheeler industry." (Refer Exhibit I for a visual of Unicorn). the Indian motorcycle market was booming. These wings are now in India as Honda Motorcycle & Scooter India Pvt.couple of years after the launch of its successful products including Activa. The other bikes in this segment were TVS Fiero. SI announced that it would initially concentrate only on the scooter market and would enter the motorcycle market in 2004.000 units of Unicorn in the first year of launch.

a mechanical engineer. when Soichiro Honda. In the early fifties.Group2 was due for revalidation. D-type two stroke 98cc. Dio and Eterno. The American venture started modestly with a staff of six and sales figure barely touching 200 motorcycles. Appreciating the efforts of the company. Honda's first motor cycle. HMCL was incorporated with a capital of one million yen. The idea was to develop and later produce small two-cycle motorbike engines. HMSI emerged as the market leader in the scooters segment. was established in Los Angeles. was produced in 1947. the company started to design and produce lightweight motorcycles. In 1963. said. In 1959. "Honda has stirred the Indian automobile markets in many ways. Veeshal Bakshi. the American Honda Motor Company Inc."3 The history of HMCL could be traced back to 1946. which revolutionized the US motorcycle industry. 46 . an analyst with Financial Express. In 1948. Within three years of commercial operation. the headquarters of the company was shifted from Hamamatsu to Tokyo and the company got listed on the Tokyo Stock Exchange. a leading business daily in India. Honda's first product. The company's scooter models included Activa. established the 'Honda Technical Research Institute' in Hamamatsu. Japan. an A-type 50cc bicycle engine. HMSI was credited for reviving the scooters market in India. at a time when even the likes of Bajaj were unable to prevent the slide in scooter sales. American Honda launched the "You meet the nicest people on a Honda" advertising campaign. Soon. was produced in 1949. Its wholly owned subsidiary Honda Motorcycle and Scooter India (HMSI) single handedly revived the twowheeler scooter market.

000 units. Malaysia and cumulative motorcycle production reached 10 mn units by 1968. UK.. novel promotional campaigns and developing an extensive distribution network. HMCL entered the Philippines.. 'Honda' was already a household name in India. out board motors. The company made an initial investment of Rs 3 bn to establish a plant with an annual production capacity of 200. compact cars. A 102 cc scooter.. During the 1960s. Honda established motorcycle assembly plants in Germany and Belgium. power generators and several new models of motorcycles and motor scooters. 47 .. Activa was specially designed keeping in view the needs and preferences of Indian consumers who expressed that the conventional Indian scooter was too big and difficult to handle and that the scooterette was too small and similar to a moped. During the 1970s. HMSI's marketing strategy emphasized on offering innovative products at competitive prices. In October 1999.. Honda Activa was the first scooter model of HMSI for the Indian market.. New production units were started in Thailand. HMCL expanded its product line by introducing light trucks. Indonesia and Brazil. The Marketing Strategy Thanks to the success of its joint venture with Hero Group and KEL. Hence. in a major strategic initiative. The Product Launch After coming out of the joint venture with KEL..A few years later. HMCL established HMSI... rather than putting major efforts into brand building. Dio Dio was launched in 2002 as the first motoscooter in the Indian market. Activa Launched in 2001.. HMCL planned to introduce its own twowheelers in the market.

48 .. Confirming this. • Compare and contrast the marketing strategy of Honda with other leading players in the Indian two-wheeler industry including Bajaj Auto and Hero Honda Motors. Yukihiro Aoshima. HMSI announced plans to introduce a 135cc motorcycle in 2005. • Examine and analyze the marketing mix of Honda Motors.. 4.We do not want to restrict ourselves to any specific category. The case includes a brief note on the Indian two-wheeler industry describing the leading players and their marketing strategies. • Study the entry strategies of two-wheeler manufacturers in India.. We would like to have full line-up covering right from the entry level low-cost motorcycle to a motorcycle for people with strong taste and fun elements into it." With plans to launch its own motorcycles in India. There is in India there are big competitor for two wheelers are BAJAJ. Issues: The case is structured in a way so as to enable us to: • Understand the competitive landscape in the Indian two-wheeler industry and study the marketing strategies of Honda in particular.Looking Ahead After the launch of Unicorn. HERO HONDA. and YAMAHA etc. COO and MD.2 PROBLEM STATEMENT • • • The problem in this case is the new launching of new product in Indian Industrial Market.. TVS. HMSI said. "The Unicorn is just the beginning. The pricing policy of the competitor. analysts feared that HMCL may not renew its ties with the Hero Group.

ETERNO and DIO is the successful product of the Honda Company. The leading two wheeler manufacturing companies HERO HONDA.4. The product of Honda ACTIVA. Unicorn can satisfy the all customer group. WEAKNESS • • Honda was the new company for the Indian market. The pricing strategy of Honda was good according to the product quality. THREAT 4. Alternative Hypothesis (Ha): 49 . CBZ was the big competitor of the unicorn. TVS are having good marketing policy and product. OPPORTUNITY • • • • Now a day with the help of good product quality HONDA has made a good brand in Indian market. BAJAJ. Pulsar. New product development and good marketing policy for success in the Indian market.4 HYPOTHESIS Null Hypothesis (Ho): There is no significance consequences arrived on developing marketing strategy for Industrial Goods.3 SWOT ANALYSIS STRENGTH • • • The Honda was merged with hero group so there is not high demand for branding.

There is an significance consequences arrived on developing marketing strategy for Industrial Goods. pricing. 4. The case examines Samsung's approach to product.5 FINDINGS With the help the analysis the case it is find that • • • • The HIMS is having good marketing policy. 4. Issues: 50 . The Honda is having good brand. There are significance consequences in developing for product of HMIS. The case also provides insights into the future prospects of the company in light of the increasing competition and the slowdown in the consumer electronics market. It provides a detailed account of Samsung's marketing strategies to garner more market share.6 Case Study-2 SAMSUNG The case examines the marketing strategy of Samsung in India. market targeting and market positioning. For launching the Unicorn HMIS has made good market segmentation. distribution and promotion.

India's leading consumer electronics player.S. (Samsung) announced the signing on of seven celebrity cricketers .'' According to Samsung's former vice-president marketing. Samsung's ad agency. Samsung India Electronics Ltd. Aggressive marketing had clearly contributed to Samsung's success. S. arising from ICC's agreement with some other companies. with a concentrated burst in the first quarter to coincide with the World Cup. In December 2002. India First' campaign all over the country in December 2002. Said Arun Mahajan of Mudra. However. 'With Team Samsung. Lee: "The Team Samsung theme will be leveraged right through the year.'Team Samsung. It's India First. and increase awareness of its brand. The "Team Samsung India First" Campaign In August 2002. Samsung launched its . as its brand ambassadors. 51 . "The focus has been to evolve concepts to do with the players. • Analyze the role of the four Ps in Samsung's marketing mix.''3 Analysts felt that the ad campaign would enable Samsung to effectively leverage the cricket craze in the country. In doing this. to promote the cause of cricket and patriotism. In place of the ads featuring the cricketers. it aimed to cash in on the popularity of cricket in India. Samsung reported a sales turnover of Rs 30 billion with a growth rate of 20% (Refer Table I).'' The copy of the print ad read.• The marketing strategies adopted by Samsung to gain market share in the highly competitive Indian consumer electronics market. the company's hopes of celebrity endorsement received a setback due to anti-ambush marketing clauses2.'Team Samsung'.

which contributed more than 60% of its revenues. instituted by the Department of Information Technology. the FIPB4 cleared Samsung's proposal to buy RCSPL's remaining (23%) stake. In 1998. Samsung won the First Prize in the Consumer Electronics category at the Annual 'Awards for Excellence in Electronics'. In 2000. the company had a presence all over the country. This center became Samsung's regional hub catering to the design requirements in India. information technology products. Samsung announced profits of Rs. aggressive advertising and a tightly-run administration. Uttar Pradesh. washing machines and air conditioners at Noida. 52 . In September 2002. Electrolux Kelvinator Ltd. "Samsung's success is the result of a variety of factors such as competitive pricing. it became a wholly-owned subsidiary of its South Korean parent company. Samsung set up an R&D center for the manufacture of CTVs at Noida (Uttar Pradesh) with a total investment of US$5 million. microwave ovens. 5. RCSPL diluted its stake in Samsung to 26% and in November 2002. In 2002. owned by Venugopal Dhoot of the Videocon group. With Samsung buying the total stake of RCSPL." Background Note Samsung entered India in December 1995 as a 51:49 joint venture with Reasonable Computer Solutions Pvt Ltd (RCSPL).50 million on a turnover of Rs. and then slowly expanded its operations. Samsung's flagship businesses were consumer electronics and home appliances. Middle East and South East Asia. Samsung launched is operations in North India. By January 1998. Initially. mobile phones and home appliances. Samsung established manufacturing facilities for colour televisions. Government of India.40 billion for the calendar year 1998. chairman and managing director.Said Rajeev Karwal. It also had a presence in consumer electronics.

and its home appliances division grew by 21%.. said..170 million with 26% growth over the previous year. audio and video products. Its consumer electronics business grew by 29% and contributed 60% to the total sales. "It is indeed an honor to receive this Award and I am happy that our efforts to make Samsung a top electronics company in India have been recognized and appreciated. mobile phones and home appliances (Refer Exhibit I).S. Managing Director. Samsung. Analysts felt that the wide product range of Samsung was one of main reasons for its success in the Indian market. Its product range covered all the categories in the consumer electronics and home appliances. Samsung reported sales of Rs. consumer friendly features. PROBLEM • • • • • The problem of marketing mix The problem of competitor policy The problem of new product demand in the market Market capturing The distribution system of the company. Pricing Pricing also seemed to have played a significant role in Samsung's success. Our focus on product planning.. product quality. Lee. contributing 40 % of the total sales. PROBLEM SOLUTION Product Innovation Samsung's product range in India included CTVs. R&D are all geared towards providing our customers technologically advanced products with superior. 53 . information technology products.S.." In 2002. Samsung positioned itself on the technology platform...

.Distribution Along with the launch of new products.25% growth from the previous year's Rs. and enabled it to launch products according to consumer needs. Sustaining Growth At the end of December 2002.. it realized that Indian consumers were not familiar with the company. Analysts also pointed out that Samsung had deployed a unified and consistent brand-marketing program along with an aggressive sports marketing strategy. Samsung had posted a turnover of Rs.. Advertising and Sales Promotion In 1995. 24 billion.. when Samsung entered India. Samsung also consolidated its distribution system.. 30 billion . Analysts appreciated the fact that Samsung had a diversified product range and had implemented holistic brand communications in order to achieve a homogeneous brand image. So. Samsung launched corporate advertisements highlighting its technologically superior goods. in order to establish itself in the Indian consumers' mind. The direct dealer interface helped the company get quick feedback from dealers. Exhibits Exhibit I: Product Range of Samsung in India* Exhibit II: Profile of Sony and Philips in the Indian Audio Market 54 . Samsung had 18 state-level distribution offices and a direct dealer interface..

55 .

So the null hypothesis is rejected and alternative is accepted. Alternative Hypothesis(Ha): There is an significance consequences arrived on developing marketing strategy for Industrial Goods.CHAPTER 5 5. 56 .1 CONCLUSION From the whole research it is observed that there are various consequences in HMIS for developing marketing strategies.

com/whatis. http://www.sveiby.html 4.org/wiki/Service_industry 6.ryerson. http://www.htm 5.sveiby.wikipedia. Prasad Kothari C.com/od/researchmethods/f/validity. Håkan Håkansson International Marketing and Purchasing of Goods - 57 .3 REFERENCES Name of Books & magazines: Principal of management Research Methodology L.wikipedia. http://en.com/Portals/0/articles/KnowledgeManagement.html 9.org/wiki/Qualitative_research 7. http://www.ca/~mjoppe/ResearchProcess/841TheCaseStudy.5.htm 2.2 BIBLOGRAPHY 1. http://en.about.htm 3. http://www.org 5.org/wiki/Case_study 8. http://en. M.kmnetwork.systems-thinking.R.com/Portals/0/articles/KnowledgeManagement. http://psychology.wikipedia. http://www.

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