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Prithvi Electricals BBMK3
Prithvi Electricals BBMK3
PRITHVI ELECTRICALS
Business to Business Marketing (BBMK3)
Proposed Solutions
Product offering- Considering the buyer preferences in the market, delivering a high quality
product on time becomes top priority for the company. Unlike for the mixie business which had
random sampling method for quality testing, Prithvi should adopt efficient quality testing
techniques to enable 100% defect-free motors, which could be their differentiating factor.
Offering all varieties of the product is also essential considering the variations in customer
preferences. Also, to enable timely delivery of products, efficient management of manufacturing
schedules and inventories has to be looked into.
Competitive pricing - As per the sample feedback from 48 motor buyers in Bangalore, 37
clients weighted their preference towards price and 40 clients weighed on quality. Hence through
derived deduction we can state that prospective customers do not buy exclusively on price but
are driven on value buoyed by the disparity between the benefits of our product/service offering
and the price that is charged. Since the image of the company is not strong in the field of motor
manufacturing, the company has to create a competitive pricing combination added with
optimized after sales service offerings.
Price promotion strategy - Going ahead Prithvi electricals needs to decide whether they want to
go ahead with a price taker strategy or a price getter strategy. As motor technology hasnt
changed and customer purchase decision is divided between organized /unorganized sector, it
indicates that the industry is mostly commoditized. In order to sustain in a commoditized market,
Prithvi needs to ensure effective discounting on a deal-by-deal basis to achieve the target
waterfall.
The consumer purchase decision is clearly revolving around the question Is this brand right for
us?
Target segment(geographically)- Prithvi is a well-known brand in Karnataka. It has been
providing its services in Karnataka since 1984. Sales can be capitalized on this factor by gaining
trust of the customers.
The promotional strategy in Karnataka will clearly be focusing on the following share points.
1. Prithvi is BIS(ISI) certified company. Since quality of product is one of the most
important factor as per the research report. Prithvi can capitalize on this factor.
2. Bench strength (inventory wise how much can we supply to the client )
3. Product demonstration (Product demo calls across the area)
4. Communication of TCO (TCO is a financial estimate intended to help buyers and owners
determine the direct and indirect costs of a product or system). Promoting a lower TCO
will provide more value to the brand.
5. Promote a higher ROI to associate the brand with profit center acquisitions of the client
companies rather being part of cost center plans.
6. Defining a clear channel of buying process: The customers need to be communicated
with a seamless and time saving channel of buying the product
7. Promoting partnering options to be long term and sustainable supply partners to
prospective clients.
Target segment(Customer Profile) Since Prithvi is new in the motor segment, it would be
better to target Contractors and Industries as they can utilize capacity of the existing production
system. It might not able to fulfill large orders by OEMs. Further there will be more competition
from organized sector companies. However, contractors will concentrate more on margins.
Hence, they would concentrate more on low cost which could be the forte of Prithvi.
Distribution channel - Direct channel from manufacturer to the user would be suitable for
Prithvi electricals as the product consists of high technicality which could be communicated
directly rather than going through information loss over indirect communication channels.
Also, for the company, initial unit costs would be higher. Thus, in order to maintain sustainable
margins it would be suitable to carry on with a direct channel.
With an absence of a wholesale service a direct channel can be useful in market penetration.
Also this would help Prithvi Electricals to maintain a lean delivery and after sales service
operation.