Shree Chanakya Education Society’s

Indira institute of Management, Pune

Group CCA-2
By
Group B3

Division Roll No. Name of the Student

B 04 Aditya Shevante
B 26 Nital Patil
B 29 Prasad Warad
B 32 Rahul Ahirrao
B 33 Rahul Kakad

Program name: MBA

Semester II Batch: 2019-21

Course Name and Code: Business to Business Marketing SEL50CCA-201 (MK)

Topic – Centaur India

Submitted to: Prof. Girish Kulkarni

Date of Submission:
INTRODUCTION

Centaur is an elevator company with a new and innovative product to entering the
market. Centaur India offered customers the latest models of their world
renowned range of products - technologically superior to those currently on
offer in the Indian market - at affordable prices and in accordance with customer
requirements. In addition to new installations, Centaur also provided full
modernization and maintenance services to transform and protect existing
vertical transportation, as well as safeguarding owners' investment. With a
comprehensive range of services as theirs, they ensured the smooth functioning
of these installations throughout their service life of around 30 years

This company is faced with the problem of what they want to charge and how
they are going to position their newest product into the market. Another problem
the company faces is how and to whom they should market this new elevator
application. The company can rule out marketing to the high rise gearless traction
market because their technology doesn’t apply to this market, as of now. Although
they are not able to market to this group the benefits of gearless traction can be
used in comparison to the geared and hydraulic elevator systems. One problem
that was learned from the preliminary markets was that customers are not
satisfied for the after sales service that the centaur offered. Depending on who is
making the buying decision they can base the purchase on up-front costs.
Q1. How will you apply and use business marketing concepts and
strategy involve in planning, promotion, distribution and sale of products in
marketing and business situations for the company products?

A. PLANNING

Marketing planning is a systematic and disciplined exercise to formulate

marketing strategies. Marketing planning can be related to the organisation as a
whole or to strategic business units (SBU). Marketing planning is a forward
looking exercise, which determines the future strategies of an organisation with
special reference to its product development, market development, channel design,
sales promotion and profitability. Centaur India should make their marketing
plan by considering the following factors.

1. TARGET SEGMENT

 General contractors, Architects and Property developers.

 Business Relationships inside and outside of the business.

 Centaur should maintain strong connections and relationships with

suppliers and channel members.

 Centaur is dependent on their suppliers and channel members, but they are
more dependent on their long-term relationships with the customers for the
growth of their company and to survive

 Try to deliver in right time to the right customers at the right place. For that
they should form a hierarchy such that every person involve in the
hierarchy reports to their head person and brief them about the current
orders and upcoming installations time frame.

 Centaur should focus on differentiating itself from the other competitors by

giving value for money to the customers.

 Centaur should focus on maintaining its long-term relationships and

safeguarding their reputation amongst their suppliers and potential
customers
2. MARKET TRENDS AND GROWTH

 They should keep themselves updated with the market trends because
now a days customers are getting more choosy considering the
competition available in the market. They must focus on producing the
elevators that have demand in the market.

 For maximizing the customer satisfaction they should focus on R & D and
Should keep a track on the market trends. They use telescopic door for their
lifts but most of the customers were demanding center opening doors as per
the trends. Due to this they were losing their potential customers.

3. INSTALLATION AND MAINTENANCE

 For completing the installation in estimated time they should plan every
single step right from getting the order to the installation. They should
strictly follow that time frame.

 As most of the parts are outsourced from China and Switzerland they
should maintain proper coordination with the out souring clients. They
should maintain some inventory so that in extreme condition they can
utilize it.

 In the case study it is stated that service, price and reliability carry the most
weightage. 80 % profit revenue is generated from service department . So
they should focus on the quality of maintenance they are providing to the
customers at competitive pricing.
4. MARKETING RESEARCH

 To ensure that Centaur keeps in touch with their targeted segment of

General contractors, Architects and Property developers as well as the
Indian market trends it is important to conduct quantitative research to
examine customers perceptions, attitudes, behaviours and predictions and
purchases and number of customers. This is in the form of questionnaires,
personal interviews and telephone interviews. Through this
relevant problems, opportunities and threats can be addressed which
could relate to customer and channel satisfaction.

 Centaur is seeking customer intimacy to examine customer demands and

needs towards establishing marketing efforts, product offerings and
improvements according to specific customer trends. Primary and
Secondary research will be done to maintain new elevator development,
the planning of public relations, activities and presentations and to get a
grip on the competitive position and circumstances and observe Centaur
progress towards their objective. Finally, feedback will be petition for
through Centaur’s web site and through representatives and sales
force/persons.
5. COMPETITIVE FACTORS

 Competition in the Indian elevator market is Schindler, Otis, Thyssen,

Haushahn, Schmidt & Sohn, Halo, Noisette and Climber etc.

 There are two sectors in the elevator industry namely the new equipment
sector and service sectors. The competition in the elevator industry is
intense, especially when it comes to pricing, quality and technology
offerings.
 At a price that was below or at the cost to price-sensitive customers.
Companies that originally installed the elevator were sought as
service contracts. They should focus on those service contracts where the
profit margin is more

 They can set their prices as per the competition in the market. The only
problem here is that on outsourcing delay, which is a long time and this
could count as a disadvantage. This means that there are inventory piled up
in working capital which are not yet sold and this could effect the time taken
to pay employees and resellers. This all depend on how long the customer
takes to pay the company for services, installations and equipment.
6. PROMOTION AND POSITIONING

 Centaur can make use of advertisements in the form of elevator newspapers,

journals, architecture newspapers and journals which are national and
local. This build on their international business development.

 Any product promotion should have video included as part of a promotion

strategy. You don’t need anything professionally scripted, just grab your
product and put something together with a focus on value. Centaur can
make a video showing quality manufacturing and outstanding feature it has.

 Now trade shows and mechanical expos can be a great way to get a lot of
eyes on your product all at once. And for new product launches they can
provide early access and pre- launch purchases at an event. Or they can
even use the event as a launch point for your new product. In a larger event
with tons of foot traffic can be worth the investment.

 Centaur will be positioned to demonstrate the key benefits, which include

energy efficiency; small modernized motor, smaller fuse, oil-free, ultra-
lightweight, fast speed, and no more need for a machine room. With no
more machine room required, space is freed to property owners and
developers, which enables an increase in revenue generating space in
buildings. It will also be positioned as a low-priced elevator with
modern designs that come up with reliable high- performance services.
Centaur will position the product and service mix to steal the market share
of the mid-market players and the small local companies
7. SALES AND DISTRIBUTION

 In today’s fast paced world, distribution by a company can be an enormous

competitive advantage to the company. Because of the rising costs,
companies are trying to expand in various markets so that they have a higher
turnover and hence a higher margin.
 To reach far and wide, Centaur needs the right distribution strategies in
place. You cannot market a product and then not deliver the product to the
end customer.
 This is a sheer loss of money as you waste money on your marketing and the
opportunity loss is also huge. Not to mention, the loss to the brand when the
customer wants to purchase the product but cannot find. Thus, there is a lot
of importance given to making proper distribution strategies for a company.
 This is also the reason why place(Which majorly consists of distribution) is
one of the major 4P’s of the marketing mix. Place is considered in case of
products as well as services.
 Distribution strategy is mainly decided by keeping the top management in
l oop because it affects overall operations. This strategy can be summarised
with 3 main points.

1. How to get the product from the manufacturing point to the end
customer.

2. How to control costs and save time while executing the distribution
strategy

3. How to build a competitive advantage through distribution

Centaur can sell directly to his customers without the help of middlemen, such
as wholesalers of retailers:

 By opening retails shop;

 Through travelling salesmen;

 Through mail order business

 Through travelling salesmen;

 Through mail order business

Q. 2. Analyse the market opportunities and company capabilities as the
basis for market selection, developing customer value propositions, and
competitive differentiation in contemporary business markets

 MARKET OPPORTUNITIES

 Rapid urbanization and the consequential proliferation of multi-storey

buildings will continue to intensify the demand for elevators.
 A massive outpouring of investments in building and construction projects
is likely to underpin growth of elevators market.
 Focus on upgrading infrastructure of industrial, commercial, and residential
spaces is likely to set a buoyant tone for elevators market in 2019 and
beyond.
 Escalating demand for elevators from industrial units for seamless
transportation of heavy loads to various floors will continue to boost market
revenues.

 TARGET AUDIENCE
 Elevator and escalator manufacturers, importers, and installation,
equipment and maintenance service providers

 Residential and Commercial Real Estate developers

 Associations, Organizations, Forums and Alliances related to elevators
and escalators
 Government Bodies.
 Hotels, Warehouses, Ports, Stations
 COMPANY CAPABILITIES

 Centaur India, offered customers the latest models of their world

renowned range of products – technologically superior to others in the
market.
 At very affordable prices and in accordance to customer requirements.
 Centaur also provided full modernization and maintenance services to
transform and protect existing vertical transportation.
 With a comprehensive range of services as theirs, they ensured smooth
functioning of their installations throughout their 30 years of life.

 MARKET SELECTION
 Centaur chose the Indian Market as the most appropriate market to grow
their business as it had a lot of potential to grow and they wanted to be
the leaders in the market.
 Indian Market was a market with a low entry barriers due to the
technology, steady demand and high margins in the service market.
 The Indian Elevator Market size is estimated at Rs. 4 Billion, with a low
demand of around 15,000 units per annum
 The Indian Market was also biased towards simple products it was
expected to shift towards more complex products in the future.
 Increasing investments by market players for improving infrastructure
and installation of elevators and escalators in public places such as
airports shopping malls railway stations and others will help the market
grow remarkably in the coming years.
 Geographically the global elevators and escalators market is anticipated
to witness the fastest growth in the Asia Pacific. This is due to the
drastically growing infrastructure and increasing adoption of elevators
and escalators in developing nations of India and China.
 Besides the availability of enough raw materials at cheaper costs
availability of labour at a lower cost and increasing preference for smart
elevators will help the Asia Pacific emerge as the fastest-growing region
in the market.
  DEVELOPING CUSTOMER VALUE PROPOSITIONS

 Centaur India had the advantage of a superior quality, service quality and
safety features for their products.

 The products were also priced appropriately for the local markets and
hence gave a unique option to the customers
 Focus on catering to the local market by offering simple, standardized
elevators.
 Their Swatch products could be easily adapted to the Indian market with a
few modifications.
 90% parts were manufactured locally and the other 10% parts which were
the most important parts were manufactured in Europe.

 Maintenance after sales is also with Centaur themselves as it is an

important facility provided by the company with the help of the best
engineers from the company
 The R&D Department is always looking at new and improved products to
introduce in the market as well as trying to solve customers’ problems in
more innovative and cost conservative ways.

 COMPETITIVE DIFFERENTIATION

 The major differentiating factor between Centaur and its competitors is that
Centaur started with a narrow product line of simple and standardized
products.

 The products are technologically superior to their competitors currently.

 Most of their product is made locally but important parts are made in Europe
so as to make them under strict supervision of world-class engineers.

 Centaur also is an internationally reputed company who had prior experience

of the Elevator Business and was financially well off to take their time to
break even.