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