The Birla locking system

Executive Summary

Birla group is India's highly repudiated and leading group. They are working in various sectors like telecommunication (IDEA), garments (MADURA GARMENTS), cement etc.

This group really understands the psyche of consumer and they offered quality products in classical design with superior technology. Today the company has model for every prices segment and every market.

We are not going to launch the traditional locks in the same market where Harrison and links are working but the idea would to capture the modern locking market. Our locks would not only be the one which keep handing on the doors and pretend to provide a security measure to house, cars and workplace. This locking system will full fill all the security needs whether household, workplace and cars and others.

In Indian market there are already some companies and even china exported locking system are selling in the market, no doubt chinnes product are cheap but the reliability and durability is not there which a customer want, so our main USP would be quality and price.

"The Birla locking system gives sense of security to your cars and places"

We will be positioning our company with emotional strategy and gives a feeling of Indian company. Like Tata salt does from starting we will follow the same path being Indian and famous group in Indian market.

Basically it will deal with following target market:

  • Domestic
  • Vehicle industry
  • Offices
  • Other industries

I have further divided domestic market into various income categories:

  • High income group
  • Middle income group, and
  • Lower income group

Marketing Objectives is to increases Market Share of the company in the coming year as well as to increase the profitability of the company.

The competitor are also playing an important role to grab the market share .We as the Marketer try to increase the market share by grabbing the opportunity from other company.

PLAN DETAILS

  1. MISSION STATEMENT
    • The mission of the company would be to capture a good market share in coming 5 years.
    • To become the leader in Indian modern locking industry.
    • To make the Birla locking locks a power brand.

  2. TARGET MARKET
  3. Basically it deals with following target market:

    • Domestic
    • Vehicle industry
    • Offices
    • Other industries

    I have further divided domestic market into various income categories:

    • High income group
    • Middle income group, and
    • Lower income group

  4. ENVIROMENTAL ANALYSIS
  5. Major competitors:

    • Sunnet Industries
    • Wenture Group Industries
    • Gate Locks
    • Maruti -Elvitaes
    • Harrison locks
    • Link locks

Among all these competitors, Harrison and link are major players, the strength and weakness of the companies varies from segment to segment.

Harrison locks:

Strength: hitting hard at mid-price market.

Weakness: lagging behind because of less advertisement.

Link locks:

Strength: turnover is very high because of low price (average price for Titan is Rs.1100 while the price for HMT is Rs.550).

Weakness: the quality, attractiveness, varieties are less compared to other players. Expectation from the competitor

Price:

Advantage: Competitors of mid price segment will capture the whole market

Disadvantage: Competitor of premium price segment will enjoy the more market.

Product:

Advantage: Increased in the quality will increase the cost which will give benefit to the competitors .

Disadvantage: Quality decrease will help competitor to capture the whole market.

Place:

Advantage: more number of places of operation will make the competitor week.

Disadvantage: Less number of places of operation will leads to wipe out from the market.

Promotion:

Advantage: Increase in sales promotion will affect more market share.

Disadvantage: decrease in sales promotion give benefit to the competitor.

Environmental analysis

  1. Political & legal Environment:
  2. The Indian Government is promoting the SME'S because government want to generate the employment though this sector because it need low investment and even uneducated person can have a work in these industries. So that's why government is providing so much subsides to theses industries.

    And the laws also don't restricts this sector form working .Government is putting very less legal formalities on this sector.

  3. Social and cultural environment:
  4. Gross and disposable income has increased rapidly over the past 10 years, and is expected to grow until 2015. Statistical figures indicate that the Engel coefficient7 has been decreasing since the early 1980's. The figures imply that both urban and rural population has a level of welfare which allows them to spend a significant share of their income on non basic survival requirements

  5. Technological environment:
  6. Even the technological environment is not very sophisticated and flexible in this industry. Things don't get change very early and that's why we can say that working in this industry is not very risky. We don't need to spend much on research and development. Just need to focus on customer need and preferences.

SWOT ANALYSIS

  1. Strengths
    • Technical Innovation and 100% Control
    • Strong Relationships with 3rd Party Manufactures
    • Good reputation of Birla group in the market.
    • Customer trust because of good focus on CSR by Birla group.
    • Entry as a big player in business world.
    • Enough managerial and technical expertise available with them.
    • They can have huge no of investors with them because of their group name.
  2. Weaknesses:
    • Lack of experience in this industry.
    • Would have a tough completion from existing players.
  3. Opportunities:
    • Birla group would be the first big group who would be entering into the lock industry. And it would be providing anti locking system, house security system and other locking needs.
    • Birla group as the big one can handle more target market than its competitors, e.g. domestic, industries etc.
    • They can also think of going globally after get establishing itself in Indian market.
    • They can also set up their own research and development centers where they can design world class locks with a modern and stylish finish.
    • Can converted its product into a huge brand name and then after into power brand.
  4. Threat:
    • Tough competition from link and Harrison.
    • Entry of new big players.
    • Changing government policies

MARKET ANALYSIS

Total market size:

Still there is not any big group like Birla group in this market if we keep aside the Harrison and link then the third name would be of Birla locks. Even Birla group have the potential to be the leader in this industry and leave behind the other competitors.

Domestic and export opportunities:

In domestic market automobiles giant like Maruti Suzuki have contract with china's lock manufactures and they need good amount of locking system in their cars

If we look for the future prospective then the export opportunities are very good because big companies like general motors and others locking system in their cars and even houses are need locking system so we will be focusing on the modern locking systems in Indian market.

Factors that can influence market size

Demand

  • The size of the overall market.
  • Domestic and export opportunities
  • Are there any changes taking place that may suggest that historical trends
  • Will no longer be appropriate?
  • What factors will influence the size of the market?
  • What changes are taking place in the product (technology etc.,) that could
  • Affect demand?

Supply

  • Local production versus imports
  • Number and location of local producers
  • Local producers installed capacity
  • Utilization rate (actual production versus installed capacity)
  • Local producers. Expansion plans.

MARKET STRUTURE

  • What are the main market segments and the main channels of distribution?
    • In the Local market, and
    • In the Export markets
  • What are the relative sizes of each of these markets in relation to your products?
  • Are there any buying characteristics that could limit your ability to sell in these markets such as companies which buy products only from associate companies or subsidiaries?
  • What other cost of entry may your company face trying to enter into this market? This is relevant to new companies or new products.

Pricing

  • What are the market prices?
    • for locally made products, and
    • for imported products
  • What are the prices of substitute products?
  • What are existing import duties and other import barriers, and can a protective duty be sought?
  • What is the cost of product on FOB basis?
  • Cost of Freight to customers?
  • What are the pricing trends in this market?
  • What factors influence price?
  • How important is price in the buying decision process?
  • What factors could influence the market price in the short to medium term
  • Resulting from the supply/demand equation?

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