Promotion of Building Material Technologies in well Developed Markets - An Experience
Rakesh Srivastava


Promotion of MCR Technology In Maharashtra and Goa is in progress since 1999 through MITCON in association with Development Alternatives. This was the first time MCR was introduced in the well-developed market with an up market focus. The market situation of roofing materials was assessed at Pune and Goa. As may be observed from the SWOT Analysis presented below, both the regions have a very strong loyalty towards Mangalore Tiles.

Keeping in mind that MCR tile has been packaged as a premium product in Pune – Goa region, the target segment was in the urban areas, a more amenable group to change in their life styles. On consolidation, semi urban and rural areas were to be approached.

During the course of promotion, it was realised that merely attracting entrepreneurs to adopt new technologies through showcasing was not sufficient enough to create stir in the market, more so with the first generation entrepreneurs. In view of this, a change in marketing strategy was felt necessary and the focus was shifted to product marketing hand in hand with technology marketing. The expected result behind this move was that there will be enough demand of the product from the market to attract large number of entrepreneurs.

The SWOT analysis given below was indicative of the prospect faced by MCR in Maharashtra.

Swot Analysis of MCR Technology

STRENGTHS

w Proven Technology of TARA & commitment of DA to promote the same

w Keenness & organisation of MITCON for Technology Promotion

w Proven potential market demand in ‘Niche’ sectors

w Support of B. G. Shirke in such Technology Promotion

w Support of DA / TARA / SKAT on institutional basis, with a view to institutionalise the Market & Technology 
     Promotion

WEAKNESSES

w ‘LOW GRADE’ TECHNOLOGY as perceived by Technocrat Entrepreneurs & experts  in Building Industry
w Misplaced emphasis on Technology rather than Market Development
w Non availability of experienced entrepreneurs to enter into manufacturing
w Non availability of Marketing Entrepreneurs to create demand from potential niche markets
w Non availability of ‘ Size to Size’ replacement of existing Mangalore Tile
w Non availability of ready stock & hence ready buyers

OPPORTUNITIES

w For ‘ Technology Promotion’ reach out Technology & Technical Training Institutions,  like ITI’s, Polytechnics,   
     Degree & Diploma Colleges, Building research Organisations, Architects & Engineers Associations

w For Technology Promotion approach, proven Cement Product Manufacturers like BG Shirke, Cement Spun 
     Pipes, Ferro-Cement Products, Cement Poles, Cement Fencing Posts

w For Market Promotion approach existing AC Sheet, GI Sheet, PVC Sheet, Mangalore Tile Dealers, to locate ‘ 
     Niche’ markets

w Tie up (2) & (3) above, with each other through Exhibitions, Show Cases, Roving Demonstrations & Building 
      Centre

w Rural Housing Scheme " Indira Awas Yojana" incorporation

THREATS

w   Lack of demand / Roofing Services / Lack of Consultancy
w Focus on ‘ Non Technocrat’ Entrepreneurs like present Brick & Tile manufacturers
w Focus on ‘ Rural’ or Semi – Urban Entrepreneurs
w AC Sheet, GI Sheet, PVC Sheet, are more expensive, but, easily available materials. Hence always preferred.

Majority of the buyers in our target segments were from the organised sectors like Hotels, Resorts, Builders & Architects where the purchase process involves the following steps:

1. Problem Recognition
2. General Need Description
3. Product Specifications
4. Supplier Search
5. Proposal Solicitation
6. Suppliers Selection
7. Order – Routine Specification
8. Performance Review

Many of the buyers also use a matrix based on above criteria to decide a product / supplier. In our case, the approach was to offer the core benefit of the product to the buyer, quality services, customer advice and financing delivery arrangements, along with consistency (how closely it is related to various product lines which are currently in use and its cost – quality benefit analysis). As of today, lead enterprises have been established in both Pune and Goa and "early adopters" have tried MCR tiles. Already a number of lessons have been learnt.

KEY CHALLENGES

• Manufacturer starting at adequately large scale and marketing the product under his own brand name
• Major construction company acts as a machine manufacturer as well as technology promoter
• Create a strong alternative brand image
• Define the package of technology and business that responds to ground situation (i.e. to replace Mangalore 
  tiles) & enhances value addition with inclusion of roofing services

Lessons Learnt in Pune & Goa Regions

w Establishment of pilot entrepreneurs / technology promoters / business and support service partners, in 
     both the regions, must go hand in hand with development of markets in each region

w For a larger reach of MCR technology amongst Concrete Experts and Builders / Contractors / 
     Engineers, Impact Test and Bending Strength must be quantified in terms of Kg/cm2 .

w   Prevailing market scenario in the regions under command must be assessed thoroughly before 
     launching promotion of MCR technology, including competing products like Mangalore tiles and  
     conventional roofing business

w   Only those existing entrepreneurs must be encouraged to take up new technology, who have strong desire 
     to acquire new skills / products

w   Smooth bottom surface could find still better response

w   Aesthetics & Cost, Eco – friendliness plus exact substitute of Mangalore Tile is a MUST

w   Traditional ( Brick & Mangalore Tile ) product market dealers will have to be enticed in offering the 
     product as "  Delayed Delivery", High Discount Rate and / or Large Turn Over progressively

w   Recorded history and case shows of Jhansi, Chandigarh Enterprises will be a useful guidelines, publish 
     them.

w   Focus on low scale of operation with even rural entrepreneur / rural market through MRCP / PMRY / 
     SRGY/SRY.

w   Existing entrepreneurs must have strong desire to expand / diversify

w   Business plan must be made for Brand leaders willing to take role of technology promoters

w   Non availability of stock is the largest Road Block to Market Demand Creation

w   "As and When Needed" Availability is a very important perception in general market. As it is not possible 
     to achieve market search for
" WAIT TILL YOU GET IT", but "WE MUST HAVE IT" type of customer is 
     very important

w   Start Short Term Training Courses in each District; a fore runner of Building Centre in each District.

It was further planned to consider the target markets requirements first and then design the supply chain backward from that point. While collecting detailed information on these aspects it was observed that one of the major factors in tilting the buyer’s decision in favour of a particular product, is the brand equity. Probing deeper, we found that majority of the sellers, before even introducing their products, launch a brand establishment drive. This helps in creating a lasting impression in the buyers mind and a preliminary opinion is formed. This helps in formulating a suitable marketing strategy for the products and on the other hand the investment involved in this exercise is minimal.

Furthermore, if the technology is adopted successfully and few copycats emerge on the scene, the authenticate products may not be considered on preference in absence of a brand equity. This will also mar the successful anchorage of the technology. Thus, it may be concluded that technology promotion is not complete till the brand is established. q

MCR LAUNCHED IN GOA
 Reported by Subroto Roy

Silicoat Chemicals Pvt. Ltd launched Micro Concrete Roofing Tiles along with water proofing chemicals in a big way through a promotional workshop held at Cidade-de-Goa, a five star hotel in Panajim (Goa) on 15th September, 2000. The workshop was a huge success and was attended by more than 200 practising architects, builders and contractors.

The Chairman, Economic Development cell, Goa was the chief guest. Mr. S Patara and Mr. Deshbandhu were key note speakers from Development Alternatives, New Delhi and Wacker Chemicals, Germany respectively.

Both technology providers demonstrated their products through presentations and video shows followed by an effective presentation from Dr. Sahakari. The workshop was followed by cocktail party and a dinner. Dr. Sahakari expects a considerable increase in sales through the promotional workshop. q

 

 

 

 

 

 

 

 

 

 

 

Dr S R Sahakari of Silicoat Pvt. Ltd. launching MCR tiles in Goa

 

The author is Chief Consultant, 
Sustainable Building Materials, 
MITCON India

Email: srivastava@mitconindia.com

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