B2 b pigment division
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The document discusses challenges facing Industrial Chemical's successful white pigment product WP-88 and potential strategies to address plateauing sales. It lists members of Group 1 tasked with analyzing the situation. WP-88 generates $200 million annually but sales growth is slowing as major customers demand lower prices. The group must decide whether to invest in technical service, increase the sales force, or strengthen R&D. Providing in-depth technical support could augment the product, increase customer involvement and differentiation, and slow its commoditization by enhancing real value. However, it would also drive up expenses.
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B2 b pigment division
- 1. Group 1 Members Roll No Pooja Singh 26NMP34 Sankalp Garg 26NMP46 Santosh Kumar Diwakar 26NMP47 Shilpa Mahapatra 26NMP52 Suhail Nasir 26NMP55 ----------------------------------------B2B marketing by Prof. Vinod Kalia (MDI-NMP26 Batch)------------------------------------
- 2. WP-88 is a specialized white pigment & colour enhancer having multiple applications. This patented product has been a great success story and has generated revenues of $200 million alone for Industrial Chemical and possess 80% share. CHALLANGES Future sales plateauing out (against current 50-60% growth). Major customer s pushing for price reduction. MAJOR QUESTION: Should company invest in offering an in-depth technical service or increase sales force and introduce the product in new market or strengthen R&D team to speed up research? ----------------------------------------B2B marketing by Prof. Vinod Kalia (MDI-NMP26 Batch)------------------------------------
- 5. Real Value : Increased real value of product. Slow down the conversion: Slowdown the movement of product to become a commodity. Product differentiation: Differentiate the product in customers eyes, thereby drawing the attention away from price or provide more value at same price.
- 6. Alternative 1: Increase sales force. PROS CONS It will increase the sales revenue. This is a short run solution. Increase the number of new customers. In long run, the product becomes commodity Alternative 2: Invest in R&D. PROS CONS New product may hit the market like WP-88 Uncertain. Newer market will open for the company. If successful, its not necessary that new product will capture the market. Can boost the revenue like WP-88. Uncertain.
- 7. Alternative 3: In depth technical support. PROS CONS This will augment the product. This will increase expense. Increase customer involvement and dependability. Problem of confidentiality. Increase level of differentiation. Difficult to get benefit from new discovery with customer. Slowing the movement of the product into commodity. The real value of the product will increase. Increased information related to customer and its buying behavior. More understanding about customer behavior, needs and wants.
- 8. Thank You ----------------------------------------B2B marketing by Prof. Vinod Kalia (MDI-NMP26 Batch)------------------------------------
Editor's Notes
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