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CE – 4 (Case Study)
1) Do you think it was a right decision of the company to target all the
segments?
No, I don't believe Mr. Arun Kumar made the best move in targeting all segments. In
my opinion, PVC and FRP doors are perfectly divided according to the needs of
different organizations. Government contractors concentrated on reducing the prices
and good after-sale support, with their salespeople calling their officials and
completing the necessary tasks. Solidex Brand, Fiberex Brand, and Lightex Brand are
not subcategories that the corporation should pursue.
Secondly, the corporation has not positioned or targeted the non-wood-based market.
The director should do a thorough analysis and subcategorize according to the
demands of the customers. It is not a good idea to categorize Lightex Brand as being
of lower quality. Because the market for PVC and FRP was growing at a much higher
rate, the company needed to evaluate significant consumer criteria and choose a
market positioning strategy that was highly safe.
a. Behavioural segmentation:
In this segment, company should target upon those Hotels, Offices & Houses who
maintain their Status by the designs and interiors.
Why this target strategy?
In order to establish a good reputation, these targets will increase their spending on
interiors.
The company may sell its High Quality High Price doors to these consumers in order
to turn them into loyal customers by providing them with excellent service.
If the quality and service impress these customers, they'll buy medium-quality,
medium-priced doors for their building's non-visible regions.
B2B CE-4
For non-security locations where their department offices separate, offices may
acquire both medium and poor grade doors.
In the case of residences, low-cost bathroom doors may be used.
b. Demographic Segmentation:
In this segment, the firm should focus on consumers whose lifestyle is influenced by
their income, family background, and family size. In addition, the company should
target consumers who believe that these sorts of doors are environmentally beneficial.
Why this target strategy?
People with higher incomes will seek out high-quality doors (regardless of price),
while those with lower incomes would seek out low-cost doors (irrespective of the
quality).
The larger the family, the more living space is necessary. They will select high or
poor quality doors from our inventory based on their family's needs.
If we target educated individuals who believe these sorts of doors are environmentally
good, we can sell our doors to them.
It's essential to consider the difficulties in each section. As a result, we may classify it into
three categories: high-end, medium-end, and low-end. Replacement fabricators will utilize
indirect channels, which will result in higher distribution costs. There will always be
contractors that choose low to medium prices when it comes to government organizations. In
the case of the high end, the builders will seek to have the best quality possible, regardless of
the cost. Individual owners are present as a challenge in every category. It is preferable to
concentrate on high-end clients since it is difficult to meet the expectations and needs of ten
consumers, thus it is better to service two high-end customers successfully and profitably
B2B CE-4
THANK YOU