Mr. Sunil Mathur, Director, Raj Doors Pvt Ltd, was not sure what kind of marketing strategies, segment

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Question:

Mr. Sunil Mathur, Director, Raj Doors Pvt Ltd, was not sure what kind of marketing strategies, segment and target market he should use in order to achieve the company goals on sales and profitability. The sales and profits were not growing as per expectations of Mr. Mathur. Sunil Mathur joined the family business in 2006 after completing graduation in Electronics engineering and MBA from a reputed institution in India. The company manufactures and markets plastic doors (GTEX brand) for bedrooms, bathrooms, office rooms, balcony etc. These non-wood doors can be used for residential houses, institutions like schools, office, hospitals as well as commercial shops, malls etc. The market for plastic doors was growing at the rate of 50% annum. Raj Door was having a market share of 14% in the year 2008. Kintex and Aptak were the leading players with market share approximately 28% and 20% respectively. Balance market was dominated by smaller players as well the players in the unorganized sector. The market was overall dominated by wooden doors. The market was highly fragmented with no player commanding more than 4% of the market. Unorganized sector was the dominant player in the wooden door market. Mr. Sunil was determined to make the company as market leader of the overall door market (both wooden and plastic) in the next ten years. The company had segmented its market into the following segments

(a) government organizations like CPWD, Ministry of Defence, Railways etc.;

(b) Residential house built by builders ;

( c) commercial organizations and institutions ;

( d) individual house owners built by individuals ;

( e) fabricators.

‘We have targeted all the above market segments for plastic doors, excepting those who want wooden doors’ said Sunil Mathur. He further added that their sales personnel regularly contacted contractors who get business from government organizations, where lowest price and good after-sales-service are the key buying factors. However when sales personnel call on builders for residential and commercial complexes for getting orders, Superior product quality and services are the most important factors that they have to keep in mind. For house owners and fabricators indirect channel of dealers are used. They mostly look for low prices and delivery service. The company developed three sub-brands under GTEX brand. These are Solidex, Fibrex and Lightex. Solidex brand was suitable for government firms, institutions, individual houses with medium quality and medium to low prices. Fibrex brand with high quality was suitable for builders and a few individual house owners. Lightex brand offered lower quality and low prices for replacement market and a few individual house owners. You have been hired by the company as a marketing consultant.

Please address the following questions. Make and state suitable assumptions wherever necessary.

Questions:

a) Evaluate how the buying behavior is likely to be different in the Commercial offices from individual households.

b) Analyze the nature of competition and its implication on Raj Doors.

c) Develop a marketing strategy with focus on Strategic orientation (whether you would like to be leader, challenger and follower)? Discuss its implications.