Kailash Industries Limited is currently one of India’s fast growing building solutions company.Currently a leading provider of walling and ceiling solutions, Kailash Industries aspires to be a dominant name in the construction industry. Known for its exemplary research and innovation Kailash always tries to keep up with the growing market demand. Expanding its product portfolio, Kailash is now entering into the roofing solutions market with ‘Fiber Cement Sheets’. Seeing a lot of potential and traction in the market at present, Kailash Industries wants to go for an effective marketing plan so as to tap a wide consumer base. The case tracks the discussion of Kailash Industries’ marketing team ...view middle of the document...
But we cannot connect with all of these customers in market. We have to come up with an effective target marketing strategy.First, we should divide markets into groups of consumers with distinct needs and wants.
Pritam: Exactly! Based on our segmentation reports, we can then target one or more of these market segments and position our product accordingly. The key therefore is to get our segmentation right!
Srinivas: But Pritam, how difficult can it be? I mean, cement sheets are mostly used in roofing for rural houses as far as I can think. I’m not sure how many “different” type of customers can we target.
Pritam: That’s the key Srinivas, you need to think outside the box. “Rural house roofing”is just a scratch on the surface. We have to dig deeper into demographics, psychographics and behavioral aspects to come up with effective strategies for segmentation. Also, we need to look into semi-urban and urban customer bases.
Bikash: I see your point Pritam. Based on these segmentation variables we will be able to clearly distinguish our consumers based on their needs and responses. But how/where do we start?
Pritam: Let’s begin with a market survey to identify the potential customer base in rural and urban markets and their needs for our product. Bikash, your team can take up the rural market and Srinivas and his team can size up the semi-urban and urban markets.
Srinivas: Pritam, should we also consider B2B markets?
Pritam: Good point. Let me check with my industry contacts. Let’s meet in two weeks to go over the survey results and discuss future strategy.
2 weeks later
Pritam: Good morning guys. I hope you have encouraging results from the survey. Let’s start with you Bikash.
Bikash: Based on the survey results it’s very evident that due to rising incomes, many rural people are willing to make a shift from the kuccha roofs to sturdier roofing solutions. Most of these folks have BPL cards and depend on rationing given by government. However the needs are quite varied. Some people mentioned that they would prefer cement sheets to their existing asbestos sheets since asbestos was prone to damage in hailstorms. Some people are looking for better roofing solutions for cattle sheds and warehouses. However, that’s not all. We also noticed an interest among some villagers who are relatively better off – living in ‘pucca’ houses with a decent income. These people are looking for roofing solutions for the community halls they own and occasionally lease out for various functions to the villagers.
Pritam: That sounds good Bikash. Normally it has been observed that in Indian rural socio-economic classification, there is usually a correlation between the education of the chief bread winner and the type of house they live in. I am hoping our survey results are in line with this observation.
Bikash: Yes Pritam.Infact, along with these two factors there also seems to be a co-relation with respect to the land they...