The document discusses strategic marketing options for Hand Tools division to achieve a 900% growth target over 5 years. It analyzes the industry, competition and consumer landscape. Two main strategic ideas are proposed:
1) Create demand among technicians through a brand engagement program like a utility services exchange.
2) Create demand by facilitating and tapping into strong subcultures like bike maintenance workshops, skills workshops, and an reality show contest to engage enthusiasts.
Brand building support requires understanding consumer attitudes and critical attributes, executing area-centric approaches aggressively with sufficient manpower and resources. The goal is to "jack up the market".
3. Industry
• Estimated No. of Units in India: 2500
• SSI Units: 95%
• Large Units: 7
• Estimated No. of Workers: 25000
• Major Clusters: Jallandhar / Nagpur
• Of the total global market of more than US$ 10 billion (abt Rs45000 cr), India's share
is more than Rs500 cr.
Source: UNIDO (www.laghu-udyog.com)
4. Competition
• Taparia
• Jhalani
• Hindustan Everest
• Ambica
• Eastman
• Venus
About the Market Leader
About 50% share of the organized hand-tools market.
Turnover of about Rs54 cr in the year 2002-03.
Assuming 10% market growth rate, the turnover currently should
be anywhere near Rs95 cr.
A network of more than 700 dealers and distributors across the
country in 2002-03. It might’ve exceed 1000 by now.
It is 38 years old in the hand-tools market.
Out of the 60,000 retailers, the company had already reached
out to 20,000 retailers in 2002-2003. By now the number of
retailers would’ve increased to about 1,00,000 and the company
might’ve touched at least 50% of them.
Source: www.financialexpress.com, 12th
April ‘03
6. Viewing Consumers in a Perspective
Retailer
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7. Viewing Consumers in a Perspective
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• Active User
• High Frequency User
• Illiterate on many
occasions
• Largely unorganized
• Limited in numbers
but give volumes
• Usage of mass media
highly fragmented
• Price sensitive on
most occasions
• Doesn’t always have
work
Organization
8. Viewing Consumers in a Perspective
Retailer
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• Rare User
• Likely to be literate
• Uses mass-media
• Doesn’t have much
time
• Is afraid of fiddling
with technical stuff
• Has money to spend
• Caution rather than
pro-activity
• Doesn’t yet believe in
DIY
• Huge in numbers, can
offer high value but
limited sales
Organization
9. Viewing Consumers in a Perspective
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• First hand interaction
with end-users
• Influences them and
gets influenced by
them
• Margins are a priority
• Definitely fewer in
number than end-
users
• Fragmented mass-
media usage
Organization
10. Challenges
• In a relatively short period of time:
– Reach out to a fragmented target audience without mass-media
– Engage the fragmented audience and induce buying
– Arrange for a strong supply chain and network of retailers
All this with a high degree of measurability
13. JK Utility Services Exchange
Utilities ExchangeEnd Consumer Technicians
Calls for service Forwards service request
Renders service and get paid
Communication
Retailer
Buy JK
hand-
tools &
get work
Buys JK Hand-tools
Submits mobile number & area
Registers Technician & receives
payment for registration
Print Ads in local language print media to promote the Exchange among Technicians
Print Ads to make home-users aware of the JK Utility Services Exchange
‘Meet & Benefit’ programs
Posters, danglers, other PoS material, etc.
14. # 2
Create demand by facilitating & tapping into
strong & popular sub-cultures
15. Tapping into ‘Tinkering’ Sub-cultures
Bike Maintenance
Workshops
Communication
Buy JK
hand-tools
&
participate
in the
workshop
End Consumer
(People with bikes)
Retailer
Buys JK hand-tools
Workshop
Management Team
Registration
Participation
Option#1
Bike Freaks’ Workshop
16. Tapping into ‘Tinkering’ Sub-cultures
Bike Maintenance
Workshops
Communication
Buy JK
hand-tools
&
participate
in the
workshop
End Consumer
(People with bikes)
Retailer
Buys JK hand-tools
Workshop
Management Team
Registration
Participation
Option#1
Bike Freaks’ Workshop
Print Ads in magazines popular among youth and bikers
Cross promotions with bike brands / youth brands
Ads and promo videos on the Internet
Posters, danglers, other PoS material, etc.
Kiosks at bikers’ hangout places
17. Tapping into ‘Tinkering’ Sub-cultures
Hard Skills
Workshops
Communication
Buy JK
hand-tools
&
participate
in the
workshop
End Consumer
(School Kids)
Retailer
Buys JK hand-tools
Workshop
Management Team
Registration
Participation
Option#2
Hard Skills Workshop
18. Tapping into ‘Tinkering’ Sub-cultures
Reality Show
Communication
Buy JK
hand-tools
&
participate
in the
workshop
End Consumer
(Bike Enthusiasts)
Retailer
Buys JK hand-tools
Contest
Management Team
Registration
Participation
Option#3
Best Blue Collars Contest
(Reality Show)
20. Critical Requirements
• Knowledge of
– Attitudes of end-consumers towards work done with hand-tools
– Attributes critical to hand-tools
• Area-centric or region-centric approach
• Execution-abilities-as-if-on-war-footing
– Man power
– Financial resources