ABC Ltd is company manufacturing automated dispensing solutions.

The following
segment profiles are a result of the segmentation exercise conducted by them. What
bases have been used to create these segments? Can some of these segments be
combined for better utilization of organizational resources?

Segment Profiles:
S1: Manufacturers of Transformers, Insulators, Inductors and Capacitors
S1 consists of 2 sub-segments: Indian SMEs, SMEs from Europe and America
Indian SMEs:
● There are no systems and processes for purchase decisions. A lot of
handholding is required. Essential to build trust first.
● Extensive servicing required as these cos are converting from manual to
automated systems.
● These SMEs face severe manpower crunch and hence are keen to switch to
automation
● The customers of these SMEs are large automobile and consumer durable cos
who want them to commit to JIT delivery schedules. This means the inventory is
held with the SME and deliveries must be made in a timely manner. Therefore
the SMEs want to convert to automation to ensure reliability, efficiency and
reduced wastage of material
● Automation leads to greater productivity
● For these SMEs, as productivity goes up due to automation, there is the
possibility of getting more business from their customers, leading to higher profits
● Price sensitive due to small scale of operations

German and American SMEs:

● Robust systems and processes for purchase decisions
● Awareness regarding automation and product features is high
● Not price sensitive
● They want vendors who can provide service locally and a product that suits
locally available materials

S2: Electronic Manufacturing Services (EMS):

There are around 50 companies in this business. Most of the companies are located
near Bangalore/Mysore. Sub-segments are Indian SMEs and European/American
SMEs

S3: Sub-contactors
Profile:
● Difficult to locate
● Volume of business is small but large number of such sub contractors
● Affordability and building trust are the key parameters.
● Good time to meet is in the evenings after working hours

S4: Electronics and Electrical Equipment Manufacturers (Switches, Proximity

Switches, Encoders, Capacitors)

IMDR/GD/B2Bseg/Feb2013
Profile:
● Established players who could be either Indian SMEs or Foreign SMEs with
same characteristics as S1.
● Precision is the key value driver

S5: Solar Panel Manufacturers

Profile:
● Large Indian Cos like Tata BP Solar
● Medium scale companies also entering this sector
● Currently importing machines but spare parts and service is a problem and
hence would like to switch to an Indian Co.

S6: Packaging Industry

Profile:
● Application of ‘Solvent-less Adhesive’
● Customers are Indian SMEs with profile similar to S1
● Unmet needs: On-time delivery, service back up

S7: Windmill Blade Manufacturers

Profile:
Large Indian companies such as Suzlon and Unitech. Other details same as S5.

IMDR/GD/B2Bseg/Feb2013