Marketing Management

Group Assignment

Team Members-

1. Vishwas Patel, E004, 80512100545

2. Prem Sundar, E014, 80512100774
3. Manoj Gali, E024, 80512100025
4. Trishal Arora, E034, 80512100600
5. Arnav Malhotra, E054, 80512100310
6. Aashi, E064, 80512101015
Plagiarism Report
Drilling Machines Industry:

● Drilling machines are commonly employed in the production of transmission shafts,

engine blocks, camshafts, and airbag propellant chambers, among other automotive
components.
● Furthermore, the widespread use of drilling machines in the production of titanium and
medical-grade steel-based healthcare and surgical tools is propelling the market
forward.
● The Market is segmented by
○ Type: Upright Drilling Machine, Radial Drilling Machine, Gang Drilling Machine,
Deep Hole Drilling Machine, and Others
○ End-use: Automotive, Fabrication and Industrial Machinery Manufacturing,
Marine and Aerospace & Defense, Oil and Gas, and Energy, and Others
○ Geography: Growth, Trends, and Forecast
● Breakup by End-user Industry: Oil and Gas, Medical, Automotive, Construction and
Mining, Energy, Aerospace, Military and Defense, Others

K.R. Panchal & Co. drilling machines:

- Started in 2005, the company is in B2B service, who sells their products to contractors,
who further sells their services to firms in Manufacturing industry as their customers
- The company is based in Surat, Gujarat and has seen a growth for over a decade
(2005-2014)
- Mr. Rajeev Patel is the company’s owner, who has been in the business of selling drilling
machines to B2B customers. He’s also an MBA graduate from one of the top B-schools
in India

Problem statement

- Background of the problem:

- After 10 years of constant growth K.R. Panchal & Co. drilling machines have
seen a dwindling growth since 2015-19.
- Actual problem:
- The Drilling Machine Industry is growing at ~10% YoY, whereas K.R. Pachal is
seeing a decline in the company’s growth
- The market growth is as high as 15%-16% in last 3 years, but company’s
growth is 7-8%, which is half of industry’s
- There is 10% reduction in the number of contractors in 2019, over 2014
- Falling average NPS numbers showing the declining interest of contractors in the
company
Research Objective

● To assess the underlying factors of decrease in Net Promoter score i.e. customer
satisfaction.
● To find out the reasons for lack of growth of the company in line with the industry
average. It could broadly be because
○ The product offering is not aligning with market demand
○ The contractors have started buying products from other competitors
● To identify the main reason for decreasing customers since 2016

Research hypotheses/propositions

1. Product:
 The company is not catering to more innovative machines or the latest market demand.
For eg,

● Development of multi-purpose material removal machines, which consists of

different cutting equipment in a single machine (like milling cum drilling, etc.),
have gained traction
● Customers are looking for 400 and 500 mm hand-held drilling machines

3. Customers:

● Contractors keep changing, lot of old contractors left and new one’s get added
● There are no repeat purchases
● The loyal customers left because they didn’t feel valued enough
● Declining loyalty of customers, eg, they have started buying supplies from other firms
● The firm might not be catering to key contractors which are involved in industries
responsible for the increased usage of drilling machines. For eg, The major factor
boosting the growth of drilling machines is the increasing demand from the
automotive/aerospace industry

4. Competitors

● Are competitors providing better deals (price or service)

● Is there an emergence of a new competitor which is taking up the market share of K.L.
panchayat and Co.

5. Post purchase Service: Received a lot of complaints and returns from consumers

Research methodology, methods, techniques and design for the research

project planned to conduct

1. Secondary Research -
a. Identify the drilling machines in demand
b. Who are the major competitors, what are the competitor offerings. How the
competitor business models are different from ours
c. Research about if there are any substitute goods on the rise which can tamper
our sales
d. Research how to grow the market - look for potential new customers (other than
contractors)
e. Use historical data to find out which contractors have left the company and
research on who are their new partners
2. Interview with Industry experts and Contractors-
a. Experts:
 ■ Reinforce the observations from secondary research
■ What are the major services end customers are looking for
b. Contractors: Intention is to understand
■ What services are they looking for
■ Reason for Low NPS Scores: Were the issues in the product delivered by
the company(interviews for existing ones and the ones who quit)

Research design Details

Sampling technique and sample size for Interviews: The sample will be segmented based on
the the stakeholder’s relationship with the company

a. Experts - 5 industry experts

b. Contractors who’ve left the company - 5
c. Any loyal customers that had left -1
d. Current Contractors doing business with the company - 10 contractors
e. Contractors who have never partnered with the company - 10 contractors

Additionally, the sampling within each contractor segment will be based on the sale of business
done. This can be split in the ratio of Small:Medium:Large business::1:2:2 samples.

Sampling of Experts - Selection will be done based on specific industries which the company is
catering to

The Data Collection Plan:

Interviews - Going in person and asking questions will be required. It entails posing important
questions to the desired sample of the population, based on the study purpose. The following
are some of the questions that will be asked about customer experience with the company's
product.

● How long did it take for our executive to reply to the query?
● How often did you experience troubles with the equipment , if any?

Secondary research data collection:

Use company transactional data to identify the customers who’ve left us and contractors who’ve
reduced the amount of business conducted. Online data sources will be used to understand
changing market dynamics

Prediction/Forecast of results expected from Market Research

 1. The company is not innovating its product line in comparison to current competitor
offerings.
2. Contractors are receiving superior services from competitors, resulting in our customers
moving to other companies
3. The QoS issues resulting in low NPS scores.

Since marketing research is an iterative process, below are the additional

research methods, techniques and design that we may plan to conduct.

● Experiments- Based on the 1st round of market research, the organisation will include
the feedback in the general operations of the business and start observing satisfaction
scores.
● Surveys- Distribute questionnaires to include open-ended questions aimed at analysing
after every transaction with the contractors. In each area, we should aim at gaining
inside insights into what customers desire and how distributors and stores wish to
improve sales.