Water Pumps

1
Water Pumps

• Situation Analysis
• Hari
  Krishnan .P

2
Types of Pumps

• Mini Mono Bloc Pumps
• - Sumps/ Wells (16 ? 30 Meters depth)
• Centrifugal Pumps
• Open-well Mono Bloc Pumps

3
Types of Pumps

• Shallow-well Jet Pumps
• - Absolute Vacuum ? translates as 27 Water
• (Extra suction upto 22/23 depth)
• Bore-well Submersible Pumps
• 4 or 100mm
  
• 6 or 150mm

4
Types of Customers

• Individual Independent house owners
• Institutional Architects, Builders
• OEM Corporates with Pan India presence
• Agricultural sprinklers, drip-irrigation, farm
  houses and nurseries gardens
• Industrial

5
Global Water Pumps Market
2016

• Global Market Size US 75 Billion
  (Rs.450,000Cr)
• Organised Sector US 35 Billion (Rs.210,000
  Cr)
• Unorganised Sector US 40 Billion (Rs.240,000
  Cr)
• Growth Rate 6.4
• Source www.freedoniagroup.com

6
Indian Pumps Market

• Market Size Rs.10,000 Crores
• Texmo 2,000
• CRI 1,000
• Crompton Greaves 600
• Kirloskar (KBL) 500
• Varuna 300
• Lubi (Punjab) 200
• Shakti 100
• Usha 100
• Suguna 100
• Mahendra 60 (Unorganised
  Sector holds 50 share)

7
Indian Pumps Market
National players Texmo, CRI, Sharp, Lubi, CG,
Shakti, KBL
Local players Unnati, Varuna, Oswal, Kiwi
8
Solar Pumps SWOT Analysis
Strengths Since1995 Technical Strength Product range Production facility Established Network Weaknesses Initial Cost Lack of TV advertising/ Branding Too many Local players Poor reach in the Target market Lack of awareness is the main challenge NOT the competition Digital advertising SEO Non-Listing on NSE BSE
Opportunities New Urban Markets Rural Markets Foreign Markets Outsourcing for MNCs New Technology Defence Sector Threats Very Strong competition Service back-up of National Players CG, Texmo, CRIs perceived quality image Entry of National Corporates Emergence of Baroda brands
9
Marketing Strategies

• Have perennial Branding exercises - TV, Radio,
  Sign Boards, Newspaper, Posters, Dummies, Display
  Stands, Umbrellas, Digital Space etc.
• Build the brand name
• Increase Distribution Channels
• Customer Satisfaction Measures mass media
  campaign
• Focus on Maintenance/ Service
• Increase Commitment to Emerging Markets
• Aggressive Pricing

10
BCG Matrix for MISTRO
Star Hi growth, Hi Market share
Q Mark Hi growth, Low Market share
Cash Cow Low growth, Hi Market share
Dog Low growth, Low Market share
11
Pricing Mix

• Use a Pricing strategy that best suits the
  product
• Market Penetration
• Market Skimming

12
Marketing Mix
13
Promotion

• Strong and sustained TV and Radio advertisements
  all through to re-build a strong Brand Recall
  fast!
• Aim for MISTRO brand to have high recognition
  rate
• Massive influence, recall and saliencereminder
  advertising
• Successful Product launch campaigns
• Focus on brand values, innovation and cutting
  edge technology
• Aim to educate consumer on product advancements
  and importance of Water Pump performance

14
Promotion
The AIDA MODEL

• ATTENTION - BY ADVERTISEMENT
• INTEREST - BY FEATURES
• DESIRE - ADMIRATION BY PEERS
• ACTION - PURCHASING

15
Why Branding ?

• Branding is the name of a thoroughly planned
  marketing strategy.
• A brand name is what a consumer will instantly
  recognise and for some products it also suggests
  what the product does.
• A brand generates familiarity and trust and hence
  leads to greater sales.
• In today's competitive and crowded marketplace,
  branding offers a particular value to consumers.
• Through branding, consumers form some kind of
  attitudes and feelings towards the product. This
  in turn creates brand loyalty towards the brand
  by the buyer.
• Because of the trust the brand generated, you can
  charge extra price and people are willing to pay
  for that.
• Creating a brand is nothing but creating a strong
  association. And this association clearly
  differentiates your product from the rest.

16
Why Branding ?

• Strong brands can lead to financial advantages
  through the concept of Brand Equity in which the
  brand itself becomes valuable.
• Any Company that has been successful for more
  than 10 years, has the social responsibility of
  informing consumers about its quality products
  and benefits, providing them the right to
  choose from a wide range of cluttered products,
  through mass communication programs.

17
Emerging Markets

• Break out of cities to rural areas and emerging
  urban towns
• 2. Focus on Youth this decade will be a gadget
  savvy, youth driven market
• 3. New Products ???

18
Competition Analysis Marketing Mix Analysis

• CRI Texmo CG
  KBL
• Product quality, value chain, benefits
• Target Segment who, where, when, why
• Place distribution method and coverage
• Promotion cost and method
• Advertising strategy, media, timing, cost
• Price retail, trade

19
Competition Analysis Critical Factors
Comparison

• Critical Factors Texmo CRI CG
  KBL
• Hot designs
• TV Ad campaign
• Internet Hype
• Trained Sales force
• Liberal RETURN policy
• Distribution strength (Reach)
• Product range
• (1 Low, 5High)

20
Strategic Plan

• Start a Brand building exercise thro TV ad
  campaign and supporting promotional activities
• Build an aggressive Field sales force
• Adopt a structured Supply Chain Model like the
  Hub n Spoke model of Gillette
• Plan Dealer schemes and Consumer schemes for
  every peak sale-season

21
Sales Plan

• Build a strong Field Sales force (1RSM, 2ASMs,
  10SEs) in each manufacturing State or each Zone
• Open MISTRO Retail outlets with DEMO in all Major
  cities

22
Hub and Spoke (Distribution Model)

• 
  Indore
• 
  Aurangabad
• Mumbai
  Dadar Nagar Haveli
• 
  
• 
  Pune
• 
  
• 
  Goa Panaji
• 
  Feeder Markets

HUB
23
Hub and Spoke (Distribution Model)

• 
  Gondia
• 
  Chandrapur
• Nagpur
  Yeotmal
• 
  
• 
  Akola
• 
  
• 
  Amravati
• 
  Feeder Markets

HUB
24
Hub and Spoke - Advantages

• The small number of routes generally leads to
  more efficient use of transportation resources.
• Complicated operations, such as package sorting
  and accounting, can be carried out at the hub,
  rather than at every node.
• Spokes are simple, and new ones can be created
  easily.
• Customers (Dealers) may find the network more
  intuitive. Scheduling is convenient for them
  since there are few routes, with frequent
  service.

25
New Ideas

• Install Maintain Free Water Pumps Temples like
  Tirupathi, Guruvayur, Sabarimala, Mookambika,
  Poori Jagannath, Vaishno Devi etc Religious
  sentiment attached to Branding
• Have battery operated Remote Controlled Pumps
  specially targeting Famers/ Villagers
• Free MISTRO PUMPS in remote N. Indian villages
• MISTRO Discount Coupons/ Target school children
• Rubbermate/ Teflon coated Pumps ?
• CSR Tie-up with TN Govt. and offer 5 Star-rated
  Pumps. This saves power in many urban and rural
  areas throughout the state and saves power worth
  Crores for the EB.
• Initiate ONLINE Shopping

26
Out of the BOX Thinking

• Improve Pump techno Designs is anything new in
  China/ Baroda ?
• Introduce 1st Time EVER Mobile operated Pumpsets
  (this will be a HIT with Farmers !)
• Give some WIIIFM unique feature for a Consumer to
  buy a MISTRO Pump. (Wow Factor).

27
Advantages of TV Advertising

• Instant credibility for the product
• Creativity and impact
• Vast Coverage in shortest time
• Captivity and attention (reaches viewers when
  they are most attentive)
• Builds TRUST and familiarity
• Selectivity and flexibility

28
Advantages of Radio Advertising

• Cost and efficiency
• Selectivity
• Flexibility
• Mental Imagery
• Integrated marketing opportunities
• People buy from people and businesses they know
  and trust. Hearing your radio jingle helps them
  feel as if they know you.

29
Blue Ocean Strategy
Raise
Eliminate

• Speed Reach
• Competitive Advantage
• Technical Advantage
• Proactive Leadership

• Focus on only Domestic Products Markets
• Acting like an Order Taker
• Micro Management

Create
Reduce

• Sales Leadership
• Product Innovation
• Branding
• Strategic Change Management

• Concerns with pricing
• Concerns with reactive customer service
• Focus on Vertical Integration

30
Questions ?

• Call Hari
• 91 9538 767 000