Post on 28-Nov-2014
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Aggregate & Concrete INDIA
Customer Segmentation Study - Mumbai
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Customer Segmentation & Price
Mapping Study Mumbai Aggregate Market- South Mumbai
May –June 2011
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Executive Summary
Title: Customer Segmentation & Price Mapping Study for Aggregates Market in Mumbai
Company Name: Lafarge Aggregates & Concrete India Pvt Ltd
Mentor Name: Mr. Sachin Patil
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Contd…Project Summary:• To interpret market potential for Aggregates.
• Popularly known as “Reti” and “Khadi”
• Understanding purchasing pattern.
• Study & Analyze segment wise aggregate market.
• Identifying purchasing patterns.
• Assist Lafarge devising sales strategy for Badlapur & Trading operations.
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Objectives of Project To do market research on aggregate product mainly 10mm,
20mm and crushed sand.
To understand the current pain areas of the customers and issues faced by them.
To identify the gap between customer needs and market offerings.
To capture the usage patterns across segments and geographic location.
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To create awareness in the minds of the customers.
To understand customers perspective about the brand.
To analyze the data collected.
To develop customer data.
Contd...
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About Lafarge
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Project Design We concentrated mainly on 3 products, 10
mm, 20 mm and crushed sand.
Questionnaire was designed into two parts:
OPEN ENDED
CLOSE ENDED
We used database for interviewing customers from
Projects today database.
Lafarge Sales Team inputs.
Real estate websites.
Personally visiting.
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Contd… Methodology During the study we tried to understand their perspective by
interview.
Observations – South Mumbai
Lack of awareness of Lafarge• Lafarge Aggregate
• In Meduim & small builder & civil contractor segment
Low Awareness of Product• Customers Not aware of Product features – Aggregates (Shape, size, technical test,etc)
Multiple suppliers• For Security of Supply
Space constraints • (JIT) Order in time
Satisfied with current market practices• Though unorganized market, customers are still satisfied to work in this market
• Existing Agg suppliers are reluctant to evolve aggregate market practices
Customers not aware of the pain areas• Never dealt with organized players so unaware about ways to improve business practices
• Lafarge Value added services
Supply is abundant• Supply fully dominated by traders
Entry of Lafarge in Mumbai Market• Mixed Response
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Findings ( Customer Satisfaction Level)
Price • Price of aggregate in South Mumbai in the range of Rs 600 to Rs 700 per Ton
• Customer open to do business with Lafarge if offered competitive price
Quality • Customer Technically not aware about aggregate quality parameters
• Customers having misconception about quality
• Lack of awareness of Lafarge quality offerings ( test Reports, dedicated Quality Person for customer interaction)
Delivery• Customer prefer Just in time delivery due to space constraint
• Prefer supplier whose delivery schedule is as per customer requirement
• Current supplier are maintaining the delivery schedule, so customers are satisfied with suppliers
Payment terms• Credit period ranging from 30-45 days
• For infrastructure players credit period are too long
• Local suppliers/traders very flexible in payment terms- Adjust as per customer requirement
Documentations• People prefer in delivery in Brass so reluctant to purchase in Tons – Negative response for weighment
slip
• Customers in south Mumbai wants transparency in documentation – Challans, Royalty slips, etc
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Data Analysis: ( Segment Breakup)
Interviewed 55 customers in South Mumbai
The kind of activity the company was into:
33 Customers
16 Customers
03 Customers
03 Customers
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The current source of supply: (Overall)
Data Analysis : Source of Supply
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Data Analysis : Source of Supply -
Segment wise
Directly – Through Crusher Owners; Indirectly - Thru Agents/Traders
No of Players
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Data Analysis : Area of Supply
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Data Analysis : Segment wise Area of
Supply
No of Players
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Data Analysis : No of Suppliers (Overall)
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No of Players
Data Analysis : No of Suppliers (Segment
wise)
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On the basis of price (On 5 Point Scale – 1 Lowest satisfaction level to
5 Highest Satisfaction Level)
Data Analysis : Satisfaction Level
5 Point scale
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Segment wise
Data Analysis :Price – Satisfaction Level
5 Point scale
Data Analysis :Price
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Chincpokli 3000 per brass
Nagpada/Mumbai central 2500 per brass
Girgaon 3500 per brass
Khetwadi 3800 per brass
Mazgaon 2500 per brass
Dadar (W) 2500 per brass
Shivdi 3500 per brass
lalbaug 2300 per brass
byculla 2500 per brass
Dadar parsi colony 4200 per brass
Bhivandi 3000 per brass
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Data Analysis :Quality – Satisfaction Level
5 Point scale
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Segment wise
Data Analysis :Quality – Satisfaction Level
5 Point scale
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Data Analysis :Payment Terms
5 Point scale
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Data Analysis :Delivery
5 Point scale
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Data Analysis :Delivery Segment Wise
5 Point scale
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Data Analysis :Customer Management
5 Point scale
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Data Analysis :Customer Management
Segment wise
5 Point scale
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Data Analysis :Documentation
5 Point scale
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Data Analysis :Documentation Segment
wise
5 Point scale
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Data Analysis :Purchase Drivers Major
5 Point scale
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Data Analysis :Purchase Drivers Major
Segment wise
5 Point scale
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Data Analysis :Purchase Drivers Minor
5 Point scale
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Purchase drivers with lest importance:
Data Analysis :Purchase Drivers Minor
Segment wise
5 Point scale
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Has the project suffered in past 12 months due to supply of aggregates:
Data Analysis :
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Data Analysis :Decision Makers
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Data Analysis : Awareness about Lafarge
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Data Analysis : Awareness about Lafarge
segment wise
No of Players
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Would they be comfortable in purchasing aggregates from Lafarge:
Data Analysis :
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Recommendations
Provide value added service• Educate customers on Lafarge Service offerings & how it can add valve to customer business
Improve your Past Relations• Problems arisen in past due to trading business need to effectively resolved
Address customers perception• Customers having negative perception on delivery from Badlapur – Lead time need to be resolved
Develop Customer thru
Spread awareness• Medium & small builders & customers not aware about Lafarge Background & its product line
Avoid over commitment• On delivery schedule, quality & quantity
• Maintaining transparent with customer on delivery & quality
Develop strong customer data base• Target Medium & small builders, civil contractor, Govt projects contractors
Develop strong relationships with customers• Regular customer visits: interaction with all site people, quality, purchase & senior management
• Develop CRM tool – greetings -customer birthday, anniversary
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Limitations
Time constraint
Questionnaire • Had to explain customer in detail on questionnaire
• Customize questionnaire based on respondent background & knowledge
Generating Database
Lack of Product Knowledge - Customers
Customer lack of awareness on Pain areas
Sample size
Customer Reluctance to give information
Accuracy of the data
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Conclusion From this project, I can conclude that there
has to be an aggressive and strategic action plan in order to get success in the market. There scope in this business is very wide and it’s the right time to enter the market. Lafarge needs to increase its awareness level amongst the small and medium sized builders as it is an untapped market with a huge potential. It also needs to start a CRM program to be competitive in the market and add more value to its services. Lafarge will also have to educate the customers about the importance of quality and its parameters and educate them about safety and its importance on their overall life.
THANK YOU
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