Assignment 1: B2B Case Study

Name: Juhi Pitamberwale

Roll no. 175
Div. B

1. What should be the distribution strategy of the company?

Ans: As we can see that there are three kinds of customers which is CCD and Barista which owns the
coffee plantations, horticultural farms owned by individuals and sprinklers are also used for sports
lawns and land scape-gardens. The distribution strategy would be dependent on the kind of contract
the company would enter with the customers, demand, price, and maintenance of the sprinklers
would also play an important role. Mainly there are three distribution strategies the company would
follow, which includes direct distribution to customers, dealership network, and retail outlets.
Following is the suggested distribution strategy of the company:

• Direct distribution: Direct distribution strategy would be suitable for large customers like CCD
and Barista. There will not be any intermediaries in this case, as the company needs to be in
close contact with the customers and frequent maintenance is taken care by the company to
these large customers.
• Dealership network: Dealership network distribution strategy would be suitable for sports
lawns and land scape-gardens. The reason being that majority of sports lawns and land scape-
gardens are maintained by contractors and similar government organisations.
• Retail outlets: Retail outlets distribution strategy would be most suitable for horticulture crop
farm owner as the distributers and retailers will be able to cover the remote areas. Since the
company doesn’t have any prior experience in the Indian market, reaching out to retailers is
going to be more beneficial.

2. What should be the pricing strategy of the company?

Ans: As mentioned in the case, the cost of one unit of sprinkler starts from Rs. 25,000. Given the quality
and efficiency of the sprinkler, the price of the product is competent enough for the Indian market.
The company can charge different prices for its different categories of customers.

• Pricing for coffee plantations owned by CCD and Barista: In this case, the customers are large
established companies with huge requirement of sprinklers. These companies need high
 quality imported products, although they also have many options to choose from. Hence, low
pricing strategy would be helpful in catering these large customers.
• Sports lawns and landscape gardens: In case of Sports lawns and landscape gardens, moderate
pricing is suitable as there are going to be dealers in between. Also, these lawns are
maintained by some contractors and hence moderate pricing is suitable.
• Horticulture crop farm owners: As it is known that horticulture crop farm owners make
significant profits, they tend to spend more on such farm equipment even at comparatively
high prices. Given that there is going to be indulgence of distributors and retailers, price of
the sprinklers will be the highest in this case.

3. What should be the segmentation strategy of the company?

Ans: As we can see that the customers are located in different geographical areas, majorly western,
northern and southern areas. The company can segment the customers based on
location/geographical area of the customers. The segments can be divided into four major regions viz.,
east, west, north and south. Further the company can focus on more profit generating regions. On the
other hand, the customers can also be segmented into three which is coffee plantation owners,
horticulture crop owners and sports lawns owners.