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B2B MARKETING

CASE STUDY 1

“GOVIND DOORS
PVT. LTD.”

GROUP 1, TEAM 10
Sudhanshu Singh M20191550
Swapnil Kamtikar 20191111
Yashraj 20194464
Anjandeep Singh Bhatia 20194409
Preetam Shakti M20191569
Subham Paul 20192254
Poornima TU M20193807
Mohit Khatri 20192227
Vishwanth Y Pakhare B20195011
Govind Doors Pvt. Ltd.
Summary:
Arun Kumar, the Director of Govind Doors Pvt. Ltd. who is into
manufacturing and marketing of GTEX brand PVC (Poly Vinyl
Chloride) and FRP (Fibre Reinforced Plastics) doors suitable for
bedrooms, bathrooms, office rooms, balcony, etc. is deciding on the
Target market and Positioning Strategies he should use to achieve the
company goals on sales and profitability.
They have targeted all the market segments for PVC and FRP doors,
except those customers who want wooden and special (or customised)
doors. As per the company salespersons data, the requirement of
quality, service, price varies depending upon where it is going to be
utilized.
The company had established three sub-brands under GTEX brand.
 Solides Brand: Medium Quality and Medium to Low Price.
They are suitable for government firms, individual houses, etc.
 Fibrex Brand: High Quality and High Price. They are suitable
for builders and a few individual house owners.
 Lightex Brand: Lower Quality and Low Price. They are suitable
for the replacement market and a few individual house owners.
Fabricators were offered the required raw material from all the three
sub-brands. There were three major players, including Govind Doors,
with an almost equal market share of 20% - 25%. The remaining
market was shared by many small players and also by fabricators.
The market for PVC and FRP doors was growing extremely well at
34% - 64% per year between 2002 and 2006 and the competition from
small players was slowly catching up with the three major players.
Hence Arun Kumar was looking up for strategies to get an edge over
the rest of the players.
QUESTIONS:
1. Do you think it was the right decision of the company to
target all the segments?
Sol: No, I don’t think it was the right decision of Mr. Arun Kumar to
target all the segment. According to me the segmentation of PVC and
FRP doors are perfectly segmented according to the needs of a
different organization. The government contractors focused on the
lower price and good after-sale service which their salespeople use to
call their officials and do the needful. The company should not
subcategorize further into Solidex Brand, Fiberex Brand and Lightex
Brand. Secondly, the non-wood-based market has not been positioned
and targeted by the company. The director should deeply analyze and
subcategorize according to the customer’s needs. Lightex Brand is
under lower quality segmentation which is not a good idea. As the
market for PVC and FRP was growing at a much higher rate, the
company need to think with critical aspects of customers and make a
very safe decision to position the market.

2. Categorise the prospective segments and analyse the


company’s prospects in the same.
Sol: Effective servicing is one of the major factor and competitive
advantage of any organisation. So it is important to make sure that
whether we will be able to serve all segments or any particular
segment. It is also important to understand which customer give more
value to the organisation. Once the segmentation is done, we need to
find the categories within these segments. There are four types of
segmentation, it includes
● Demographic
● Psychographic
● Behavioural
● Geographic
In this case, we can trace Demographic segmentation and
Behavioural Segmentation.
As Govind Doors Pvt. Ltd. manufactured and marketed GTEX brand
PVC doors suitable for bedrooms, bathrooms, office rooms, balcony,
etc.
These non-wood-based doors can be used for residential houses,
institutions like hospitals and schools, as we know that market for
PVC and FRP doors was growing extremely well at 34% - 64% per
year between 2002 and 2006.
Demographic segmentation
The factors which come under behavioural segmentation are:
 Age
 Gender
 Income
 Location
 Education
 Family Situation etc.
Behavioural segmentation
The factors which come under behavioural segmentation are:
 Purchasing habits
 Spending habits
 User status
 Brand interactions
Here the company have 3 sub-brands Solidex, Fibrex and Lightex.
Solidex focus on the customers who can spend less whereas the
Fibrex focus on the customers who can give high price and Lightex
focus is on the customer who will be ready to spend very less.
SPENDING HABIT INDUSTRY
Builders, Few Individual
High Price
Owners

Government firms,
Medium Price
Institutions, Individual Houses

Few House owners,


Low price
Replacement Marketers

Earlier there were only three major players but now the competition
from the small players are also increasing. So it is important to
understand the challenges in each segment. We can broadly divide it
into the high, medium and low-end category. In the case of
replacement fabricators, they will use indirect channels and
distribution cost will be very high. When it comes to the government
institutions there will be contractors they always prefer low to
medium price. And in the case of the high end, the builders will prefer
to get the high quality and the price is not a matter of concern. As a
challenge in every category, the individual owners are there.
It is better to focus in the high-end customers because it is difficult to
satisfy the expectation and need of 10 customers so it is better to serve
effectively 2 customers in the high-end category and make the profit
from it.

3. What target market strategy would you suggest and why?


Sol: The company would be suggested to target the following
segments in its strategy
 Behavioral segment: In this segment, company should target
upon those Hotels, Offices & Houses who maintains their Status
by the designs and interiors.
Why this target strategy?
 These targets will spend more on interiors to build a good status.
 Company can perform marketing for its High Quality High Price
doors to this targets so that they can be your loyal customers by
providing them good services
 If these targets are more impressed by your quality and service,
they will also purchase medium quality medium priced doors in
their non-visible areas of the building
 Offices might purchase medium as well as low quality doors for
non-security areas where their department offices divide
 For houses, families may use low quality doors for bathrooms

 Demographic Segmentation: In this segment, company should


target upon those users whose lifestyle depends upon their
Income, Family Situations /Family Size. Also, company should
target those people who thinks these types of doors are eco-
friendly
Why this target strategy?
 People, whose income is more, will look for high quality doors
(irrespective of the price) and low income people will for low
cost doors (irrespective of the quality).
 More the family size, more room is required for their livings.
Based on the family situation, they will choose high or low
quality doors available at us
 Educated people who think these types of doors are eco-friendly
can buy our doors if we target them properly
4. How would you develop a positioning strategy for GTEX
brand of the company including its sub-brands?
Sol: Developing a positioning strategy based on:
 Using Product characteristics as a positioning strategy:
This strategy focuses upon the characteristics of the product.
 Pricing as a positioning strategy: This strategy focuses upon
Quality (PVC or FRP material).
 Positioning strategy based on Use: Positioning of a product can
also be done based on its Use or Application. A product can
expand its consumption by developing its uses and applications.
 Positioning strategy based on Product Process: Another
positioning approach is to associate the product with its users or
a class of users.
Mediums that can be used :
 Advertising
 Social media
 Conference
 Events
 Market campaign

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