Case Study

Started in 1992 as a tin container manufacturer, ABC Ltd. has grown exponentially
over the years to include a wide range of products ranging from metal to cement.
The company has always focused on providing the best quality products at
reasonable price to the customers. It aims to generate exceptional value for its
stakeholders.
Over the years, it has leaped from a medium-scale manufacturer of containers to an
exceptionally large conglomerate having more than 20 products in the portfolio.
With a capacity to manufacture a lakh tons of metal products per year and six
hundred metric tons of cement per day, it maintains its integrity to meet the ever-
growing demand of the market. They have become the pioneers in the development
of the metal industry.
It is a certified ISO: 9001 and ISO: 14001 group which has 3 subsidiaries dealing
in many segments as mentioned and has occupied 37% market share over the
years. The portfolio of products comprises of black pipes, galvanized pipes, and
telescopic poles, different types of sheets, rolling shutter profiles and since 2011,
they ventured into cement segment.
They procure raw materials from neighboring countries for the metal segment and
at present, the organization has opened a new cement subsidy to target a particular
region of the market and to fulfill its raw materials need for both the cement plants.
The business was smooth till then but after the new venture they are facing
multiple issues related to distribution channel, procurement process, market
segmentation and loss in market share due to operations.
The major customers of the company are based on B2B form that involves
contractors, builders and wholesalers. The revenue generated is 40% from the
exports and rest in domestic. Having such a core-portfolio product, management
personnel, and great experience in the business, the firm has encountered into a
major problem apart from mentioned issues above. The sales forces have done well
all this time, but the firm has found that they only take orders from particular
clients who already have dues or at condition in defaulting rather than targeting

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new clients. The firm is facing liquidity issues since the new venture, as they rely
on debt and sole financing. At the same time, they cannot stop selling since there is
a huge market competition and they need to be robust always. They are planning to
target retailers to overcome this issue and recently, they have started facing issues
in their pricing strategy due to COVID-19 since, they have a different price for
different customer segments. The firm wants you to help in some matter mentioned
below:
Pricing:
Product Builders/ Government Wholesalers
Contractors
OPC Cement 410 410 425
PSC Cement 340 335 350

Questions:
1. As mentioned, suggest a targeting and segmenting process for the firm to
manage the two-cement subsidy without losing customers?
2. Discuss an efficient procurement and distribution channel process for the
firms to target East & North?
3. Establish a new pricing strategy to target new segment- retailers.

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