BUSINSS T BUSINSS

MRKTING
CS WRITUP
DUPNT ()

GRUP 2:
NUJ BHUGR(MB152008)
RJUN TLWR(MB152010)
SHSH DS (MB152011)
NIHIT SINGHL(MB152034)
VIKS SINGHL(MB152061)
INTRDUCTIN:

DuPnt ws stblishd in th yr 1802 by Frnch Chmist, .I DuPnt d Nmurs in US.

DuPnt bcm succssful by th nd f third yr nd it strtd xprting bck t its cntinnt,
urp. In th spn f ths 200 yrs, it hd shpd int glbl cmpny with vrity f
ntrpriss lik Chmicl, nrgy, Scinc Bsd nd High Tchnlgy. It mximizd its
mnufcturing r prcssing prtins in 40 cuntris nd its prducts wr sld in 150 plcs
by th nd f 1990. Th cmpnys n third rvnu cms frm th urpn mrkt frm 1960.
Thr r 50 cmpnis, which mplyd mr thn 19,000 ppl in 14 cuntris f urp. Th
scintists f DuPnt dvlpd th synthtic fibrs industry by intrducing nyln. Thy wr th
lding mnufcturr f mnmd fibrs in th wrld. Th mst imprtnt prduct f DuPnt is
Crpt Fibr. This divisin ws stup in Gnv, Switzrlnd which hlds th R&D, mrkting
nd prductin rs. Prducts wr prducd in th UK nd th sls ffics r in Grmny, th
UK, Frnc, Blgium, Spin, Scndinvi, nd Hllnd.

CS CNTXT:

DuPnts prduct nyln crpt fibr is nt diffrnt frm thr fibrs vilbl in th mrkt;
hwvr, thy wr th tp plyrs in fibr industry. Th prmtrs lik clr nd txtur r th
fctrs tht diffr in th crpts. Th fibr industry hs nthing t d with ths things. Th crpt
industry is cncrnd with ths dirctly nd thy in turn ld t th whlslrs, rtilrs nd in
turn t th custmrs. Frm th cnsumrs pint f viw th crpt shuld b clrful, its txtur
is imprtnt nd it shuld b sily mintind. DuPnt hs dn xtnsiv rsrch n th
custmrs third intrst i.. mintnnc nd fundd th Stin Mstr tht wuld llw t
rmv th stins prmnntly.

With this invntin, DuPnts mrkt shr incrsd by 5%. This ws first intrducd in US,
ltr n with minr chngs it hs bn lunchd in urp. It gv mixd rsults fr th cmpny.
DuPnts dcisin is tht th mills shuld hv crtin qulity t us th prcss f stin mstr.
In Grmny, mny mills flt tht thy dnt hv ths stndrds st by thm; hnc thy didnt
shw intrst in th prduct. Th UK mrkt nd Frnc mrkt rctd psitivly. Mny
cmpnid xcutd th sm frmul by giving lw qulity mtril t lwr prics. This ld t
th stk f DuPnts psitin in th mrkt by 1980.

FCTS:

DuPnt cnductd rsrch in th urpn Industry ftr th dclin f its psitin in th mrkt.
Thy cm t knw sm imprtnt fcts:
Flw f DuPnts Fibrs:

DuPnts Fibrs Crpt Mills Whlslrs Rtilrs

nd Usrs Th crpt mills r cncntrtd in nly thr cuntris th UK, Frnc nd Blgium.
80-20 rul is pplid in urpn mrkt; 80% f th businss is crrid but tp 20%
mnufcturrs. T stimult th mrkt, thy usd th hlp f Styl Bks t th whlslrs nd
rtilrs. Thy wr nt lyl custmrs t th fibr industry. Thy fcusd n th cmpny tht
prvids mtril t th bst pric. Rtil nd Whlsl prtins r vry diffrnt in ths
cuntris. In Grmny whlslrs dmintd in th UK nd Blgium rtilrs dmintd th
supply chin.

PRBLM:

DuPnt cncntrtd nly n th crpt mills nd thy didnt mk ny ffrt in knwing th nd

usrs. Thy invstd mny in R&D fr mking innvtins in fibrs tht is t b supplid t th
crpt mills. Thy r lst bthrd t knw but th custmrs.

Th min prblms wr:

1. Lsing th psitin s th mrkt ldr.

2. Ppl prfr ltrnt flring t Crpting nd find it n rdl t shp fr crpts.
3. Custmrs wr unhppy with th srvics prvidd by th rtilrs.
4. Fibr mnufcturrs wr rspnsibl fr nly supplying t th Crpt mills, thus th pric nd
quntity stndrds wr dicttd by Crpt mills.
5. Thr ws n prpr mrkt sgmnttin r mrkt fcus

LTRNTIVS:

DuPnt nd t cncntrt n th tchniqus tht vlu th custmrs withut ffcting th supply

chin. s crpt mills r th imprtnt custmrs t DuPnt, thy nd t rtin thm. Crting
lyl custmrs is t th hrt f vry businss-Dn Ppprs nd Mrth Rgrs. Idntify th
Custmr Bnfit nd Custmr Cst f th usrs nd prvid th prduct t Custmr-
prcivd vlu (CPV). Mnitr th stisfctin f th custmr by cnducting survys.

Sm thr ltrntivs r:

1. Dvlp th Brnd nm nd nsur th custmrs knw but DuPnt nd its prducts thrugh
vrius mrkting strtgis mplyd by th cmpny. Sm f th mrkting strtgis culd
b dvrtismnt in diffrnt industril mgzins nd trining th rtilrs.
2. pn nw divisin which dls with ll prducts nd srvics rltd t flring. ls, th
prcdur f buying crpts culd b turnd int n mtinl nd njybl xprinc whrin
th custmrs lk t crpts s mr thn smthing just t wlk n.

3. Th cmpny shuld prvid prpr Trining sssin t th rtilrs s tht thy hv prpr
knwldg but th prducts thy r slling. nd th custmrs shuld b prvidd with ftr
sls srvic such s fitting f th crpt nd mintnnc which will nsur tht custmrs lv
stisfid. Thr culd ls b htlin whr th custmrs cn dirctly cntct xprts in th
industry.

4. Thr shuld b cntrct stting th pric rng within which thy shuld sll nd th quntity
stndrds which nd t b mintind by th crpt mills nsuring tht th custmrs wr nt
chtd in nywy. ls, prviding Tchnicl supprt s wll qulity ssssmnts nd hlp thm
idntify th ltst trnd nd styls in th mrkt.

5. Th cmpny shuld nlyz th diffrnt mrkts nd rcgniz thir nds nd prpr gds
s pr th spcifictins, thus it will nsur cmplt custmr stisfctin nd bttr prfits fr
th cmpny.

NLYSIS F LTRNTIVS:

Th biggst prblm th cmpny ws fcing ws tht th custmrs rmind disstisfid with

th srvics prvidd nd tht ld t th sls ging dwn.

In urp, thr r 60 crpt mills tht cn lvl DuPnts stndrds; hwvr nly 50% f thm
r using thir fibrs. Rst f thm wndring rund fr bst pric. Th mills using DuPnts
fibrs shuld b rtind nd thy nd t nlyz th CPV vlu nd st th pric ccrdingly.
Th plc is ls vry imprtnt fr stting th pric s urpn mrkt is frgmntd unlik
US mrkt which is hving nly fur plyrs. Th custmrs giv lst prfrnc t crpts
whn thy r buying hus- hld quipmnt.

Thy r nt njying r dmiring t shp fr crpting s it is just blnkt t prtct th flr.

Custmrs spnd t lst 10 wks in buying th crpts.52% Custmrs buy crpts if th xisting
n is wrn ut. Rpurchs cycl fr crpts is 12 yrs. Custmrs r nt stisfid with th
prduct infrmtin. Th rtilrs nd whlslrs r nt prviding full infrmtin. Thy r nt
prviding infrmtin n pric, clr, fitting rms nd qulity. If prduct nd srvic qulity
is mintind, custmrs wuld rtin with thm nly. Thy didnt prmt thir prducts.

RCMMNDTINS:

Th bst pssibl slutin t th prblm f custmr disstisfctin nd th prblm which nds

immdit ttntin is tht f th rtilrs bing uninfrmd, unsympthtic nd mtivtd nly
t cls th dl rthr thn srv custmrs. Th rtilrs shuld hv dtild knwldg but
th prducts thy r slling nd shuld b bl t nswr ny quris th custmrs hv, which
will nsur tht th sls g up nd thr is highr rvnu fr th cmpny. Fr this purps, th
rtilrs nd t b givn prpr trining.

Rtin th custmrs by giving thm ffrs tht ttrcts thm sily. Prvid smpl fibrs t 50%
crpt mills tht r nt using DuPnts mtril nd ffr pric tht stisfy thir nds. Prvid
prtl fr th custmrs t chs thir wn clr nd dsign ccrding t thir chics by
cllbrting with mills. Prvid bttr custmr cr srvics by trining th rtilrs nd
whlslrs. Prvid ctlgus t th custmrs fr bttr wrnss f th prduct, whthr it is
rtilr, whlslr r finl nd usr.

PLN F CTIN:

Idntify th custmrs wh r lyl t th cmpny, giv thm incntivs nd prmt th prduct

brnd. Slct th lctin whr sls f th cmpny r nt up t th mrk nd pply th
ltrntivs t thm i.. stting pric nd giving ffrs t th crpt mills. Ltr n, cllbrt
with th mills in tht lctin nd trin th whlslrs nd rtilrs but th prduct nd giv
thm th full infrmtin lng with th ctlgus. Prvid bttr srvics t th custmrs by
stting prtl whr thy cn chs thir wn dsigns nd plc rdr t th crpt mills.
Implmnt th bv-mntind stps fr thr mnths nd find th sls grwth. Sprd th pln
if it wrkd in th slctd lctin, by mking minut chngs t it ccrding t th lctin.

1. Th cmpny nds t hv clr undrstnding with th rtilrs but th chng tht is

ging t tk plc. Thus, mting shuld b clld whrin thy sit tgthr nd hv n pn
discussin.

2. Thn th prblms which r fcd by th custmrs whn intrcting with th rtilrs shuld
b cmmunictd t thm.

3. Th rtilrs which r intrstd in bringing but chngs shuld b kpt prt f th

distributin chin nd th thrs shuld b immditly fird.

4. Thn th rtilrs shuld b givn prpr trining sssins which r crrid ut by th DuPnt
xprts, s tht thy hv prpr knwldg but th prducts thy r slling.

5. Th crpt mills shuld b prvidd with Tchnlgicl ssistnc s wll s qulity stndrds
shuld b cmmunictd s tht th mills r wr but th stndrds tht nd t b mt. Th
cmpny cn nsur qulity stndrds by crrying ut qulity ssssmnt f th prduc.
Cntingncy Plns. If th trining f th rtilrs ds nt bring but th dsird rsults thn th
cmpny shuld crry ut prpr survys t undrstnd th nds nd dsirs f th custmrs in
diffrnt mrkts, t nsur tht thy r bing prvidd with, wht will stisfy thm th bst.
Thus, prpr survy tms shuld b rgnizd which will crry ut survys t find ut wht r
th prics th custmrs r willing t py, th srvic thy xpct nd th qulity thy dmnd.
Whn th gds r prducd s pr th spcifictins f th custmrs, th custmr
disstisfctin will rduc nd sls will slwly incrs nd wrd f muth will bcm mjr
prmtin tchniqu.

CNTINGNCY PLN:

Sinc DuPnt is n xprt nd lding mnufcturr in th mnmd fibrs, it cn g fr

VRTICL INTGRTIN. Instd f supplying fibrs t crpt mills, it cn st up mill nd
mnufctur crpts. It cn dirctly dl with th custmrs. Th bv-mntind pln cn b
xcutd withut th intrvntin f th mills. Th Custmr Stisfctin cn b mnitrd nd it
cn gt t knw th lphls in th prcss nd thus lding t crrctin f th mistks nd
incrsing th sls grwth f th cmpny.

QUSTINS

Q1) nlyz DuPnts mrkting pprch bfr chng.

1) DuPnt crpt fibr ws n industril bulk supplir. s fr s thy wr cncrnd, thr ws

n custmr nly: th crpt mill which usd th crpt fibr tht DuPnt supplid. Until rly
80s DuPnt mstly fllwd th push strtgy, i.., prducing thir prducts in lrg vlums nd
slling its high-qulity fibr t cmptitiv prics t s wid mrkt s pssibl, s thy
mphsizd mr n sl. Th firm didnt giv much thught t th nd usrs prt frm brnd
dvrtising.

Thy thught tht thir mrkt ws rstrictd t nly mills nd th rtilrs nd th nd usrs wr
nt prt f thir mrkt. S, incurring dditinl xpnss t prvid vlu ddd srvics fr
sctin tht ws nt prt f thir mrkt smd lik bd strtgy. ccrding t thm nly n
thing mttrd, i.., pric. s prt f thir R&D thy ls cm ut with nw prduct clld
Stin mstr which thy blivd ws n upcming rquirmnt fr th mrkt.

Q2) Wht ds th mrkting rsrch rvl?

2) Mrkt rsrch rvld tht mst custmrs bsd thir crpt buying dcisins n thr
ky fctrs: dsign, clr nd s f clning nd mintnnc. Th rsrch rvld tht
custmrs rquird infrmtin nd dvic n wht t buy fr spcific pplictins s wll s thy
wntd sm gd ftr sls xprinc whn things wnt wrng. In urp buying crpt ws
nt th first pririty fr th custmrs whn plnning hm s crpting ws prcivd s
functinl rthr thn n mtinl xprinc. Custmrs wr bing mr ttrctd t ltrnt
flr cvrings lik tils nd wd.

Unstisfctry xprinc: survy n grup f custmrs rvld tht thy flt inscur but
buying crpting bcus th prduct infrmtin ws cnfusing nd thy wr unsur f whr
t strt. Fr thm th strs wr dprssing nd th srvics wr bd. Thy ftn fund th
slsppl unsympthtic nd uninfrmd nd nt mtivtd t srv th custmrs. Th rtil
strs didnt hv prpr crpt smpls nd displys which wuld hlp custmrs in visulizing
hw thir rm wuld lk with th crpting in plc. dditinl infrmtin ws sught by th
custmrs rlting t clr, qulity pric, fitting tc. Rlibility in dlivry nd fitting ws
prblm nd th ftr-sls srvic ws nnxistnt.

Q3) () Mp th custmr ctivity cycl.

3) () Pr-Purchs:
It Includs dcisins such s whthr t buy crpt r g fr thr flring mthds. Wht is
my budgt, wht is my qulity rquirmnts, durbility?

During Purchs: Vrius fctrs includ dcisin n clr nd Styl, Custmr frindlinss. Cst
f purchs, cst f fitting nd mintnnc.

Pst Purchs: Instlltin, Mintnnc nd wrrnty. ftr sls srvics, such s Custmr
srvic tc.

Q3) (B) Whr cn srvics dd vlu t nd usrs, crpt mills, rtilrs?

3) (B) Fr crpt mills- Tchnlgicl nd qulity ssssmnt, ductin s wll s sls supprt.

Fr whl sllrs nd rtilrs- Qulity ssssmnt, ductin, sls supprt nd mtivtin t sll
mr.

Fr nd usrs- Mtivtin t buy, Qulity ssssmnt f th prduct nd dvic n wht t buy.

Q4) Cmmnt n Crrs pprch t th prblm?

4) Mr. Jim Crr tk whl nw wy f lking t things. H sw th dclin f th vlum
nd sw hd f th curv tht it must prfrm with whl diffrnt pprch t rtin its mrkt
ldr sttus in urp nd thus w custmrs. H shiftd his fcus frm thir immdit
custmrs (i.. Crpt Mills) t th nd usrs f th prduct, thir stisfctin nd rtntin. H is
prgmtic, prtgnist wh blivs in sprhding th chng. H fcusd n his
cmmunictin n th fct tht th industry must undrstnd its nd usrs bttr.
Q5) Wht r th criticl succss fctrs ndd t mk Crrs ids wrk? Wht shuld h d
nxt?
5) H first hs t cnvinc his brd f dirctrs in th mt fr th pln f ctin. ls, h
wuld rquir full supprt frm th crpt mills, whlslrs s wll s rtilrs rgrding
ccpting th qulity stndrds st by DuPnt s wll s pnnss t trining. Prpr Mrkt
survys which wuld idntify th mrkt rquirmnts nd custmr fdbck rgrding th
srvic. Rsrch hs shwn tht spnding n Mgzin, TV, Brchur wuldnt b fruitful rthr
spnding n displys in crpt shps nd furnitur shps is ging t influnc th custmr. Crr
shuld cm ut with n innvtiv wy t disply his prducts.