Scribd
Upload
82 views2 pages

Chapter 6

Arun Kumar, Director of Govind Doors Pvt. Ltd., was unsure of the target market and positioning strategies to achieve sales and profitability goals. The company manufactures PVC and FRP doors for residential, commercial, and government projects. It had segmented its market but targeted all segments. Arun noted different factors were important to different segments like price for governments and quality for builders. The company used three sub-brands targeted at different segments and price points but had not chosen a clear target market or positioning strategy as competition was growing in the fast-growing door market.

Uploaded by

TRINH VÕ PHƯƠNG
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
82 views2 pages

Chapter 6

Arun Kumar, Director of Govind Doors Pvt. Ltd., was unsure of the target market and positioning strategies to achieve sales and profitability goals. The company manufactures PVC and FRP doors for residential, commercial, and government projects. It had segmented its market but targeted all segments. Arun noted different factors were important to different segments like price for governments and quality for builders. The company used three sub-brands targeted at different segments and price points but had not chosen a clear target market or positioning strategy as competition was growing in the fast-growing door market.

Uploaded by

TRINH VÕ PHƯƠNG
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Arun Kumar, Director, Govind Doors Pvt. Ltd.

, was not sure what kind of target market


and positioning strategies he should use in order to achieve the company goals on sales
and profitability.
Arun Kumar joined the family business in 2006, after completing graduation in
Electronic Engineering and MBA from a reputed management institute in India. The
company manufactured and marketed
GTEX brand PVC (Poly Vinyl Chloride) and FRP (Fibre Reinforced Plastics) doors
suitable for bed rooms, bath rooms, office rooms, balcony, etc. These non-wood based
doors can be used for residential houses, institutions like hospitals and schools, as well as
commercial establishments like shopping malls and multiplexes.
The company had segmented its market into the following segments: (a) government
organisations like CPWD (Central Public Works Department), MES (Military
Engineering Services), and Railways; (b) residential complexes built by builders; (c)
commercial organisations and institutions; (d) individual house owners, replacement
market, and (e) fabricators.
“We have targeted all the above market segments for PVC and FRP doors, excepting
those customers who want wooden and special (or customised) doors” said Arun Kumar.
He further added, “Oursales people regularly contact contractors who get business from
government organisations, where lowest prices and good after-sales-service are the key
buying factors. However, when our sales people call on builders for residential and
commercial complexes for getting orders, superior product quality and service are the
important factors they have to keep in mind. For a large number of individual house
owners, small volume replacement market, and fabricators, we use indirect channel of
dealers, who mostly look for low prices and delivery service (or availability).”
The company had established three sub-brands under GTEX brand. Solidex brand was
suitable for government firms, institutions, individual houses with medium quality and
medium to low prices.
Fibrex brand with high quality and high price was appropriate for builders and a few
individual house owners. Lightex brand offered lower quality and low prices for
replacement market and a few individual house owners. Fabricators were offered the
required raw material from all the three sub-brands.
There were three major players, including Govind Doors, with almost equal market share
of 20–25 per cent. The balance market was shared by many small players and also by
fabricators.
The company had not considered which target market strategy it should use. Arun Kumar
was also not sure what should be the positioning strategy for its brand GTEX. It was
important to decide these strategies, since the market for PVC and FRP doors was
growing extremely well at 34 to 64 per cent per year between 2002 and 2006. And the
competition from small players was slowly catching up with the three major players.
Questions
1. Do you think it was a right decision of the company to target all the segments?
2. What target market strategy would you suggest and why?
3. How would you develop a positioning strategy for GTEX brand of the company
including its subbrands?

You might also like