Marketing Strategy of Arihant...

HDPE Pipe is a special industrial product. The major consumers of these pipes can be divided into distinct market segments like : (1) water company; (2) Gas Company; (3) separate and independent residential zone (including residential real estate development and independent business community); (4) The construction unit and intermediate business. Arihant has tailored its marketing strategies to address the distinct characteristics of each market.

he firms who are the heaviest users of PVC pipe and tend to purchase the vast majority of this product in large quantities, at infrequent intervals we try to conduct  a series of informal interviews with decision makers in this segment to identify their key purchasing criteria. The following are the key purchasing criteria:

  • Total installed cost - firm pays labor, material cost
  • Quality specifications - especially product reliability and lifespan
  • Product capabilities - meet expectations and claims
  • Delivery time - reliable, regular
  • Post sales service - customer support, education and training

At Arihant we provides the product benefits and advantages which meet these key purchasing criteria. One of our most significant product benefits is the total installed cost savings it provides. Our product range benefits coincide with the market's most valued product criteria. Therefore, these attributes will be highlighted when targeting this market. Our company reach this market primarily through:

  • Creating awareness for the product by:
    • Advertising in trade journals.
    • Attending trade shows.
  • Direct marketing by our sales force team through:
    • providing demonstrations of product use and applications
    • creating a private internet site for every customer to facilitate on-line ordering and customer support
  • Meeting the companies' specific needs through individually negotiated:
    • Packaging, product sizes and quantifies
    • Prices
    • Delivery
    • Payment terms

Now there is another segment that purchases pipe in smaller quantities, at more frequent intervals. Surveys identified their most significant purchasing criteria to be:

  • Product retail cost - contractor may charge for labor, but pay for materials
  • Ease of installation - purchaser often effects the repair
  • Warranty - provides added guarantee as to the standard of the contractor's work
  • Past performance record - desire for a proven repair solution
  • Quality specifications - provides a repair which meets industry specifications

When targeting this market, we will highlight its retail cost competitiveness and its ease of use. We will reach this market primarily through:

  • Indirect marketing, such as:
    • Distributors
    • Brochure mail outs
    • Listing in catalogs of the joint venture partners
    • Dissemination of a brochure describing our product benefits.
  • Direct sales by the joint venture partner's manufacturer's representatives.
  • In store promotions:
    • Point of sale displays
    • Free samples
  • Standardized packaging of the product with basic instruction details.
  • Publicly accessible internet home page to advertise our product ranges and provide customer support.

HDPE Pipe market characteristics

  • One-time marketing opportunity. From the product category concerned, the product is durable, long life, can be 50-100 years, the project, once completed, at least 50 years without moving. Therefore, every marketer is concerned, a project that only a marketing opportunity, once lost, will not repeat, no chance of a second market, the marketing opportunities of the time.
  • The limitations of the target customers. As the product is mainly used for municipal water supply and gas pipeline network, its customer-specific organization, rather than the general public, customers more narrowly target customer has great limitations.
  • The purchasing power of restrictive. Affected by the cost of the product, price PVC, PE, gray cast iron pipes, cement pipes and other pipes high, although the price is very good, has been widely used in developed countries, but the economic strength of our country as a result of the restrictions, no large-scale use. Use only in most parts of the prefecture-level cities, county-level cities and towns due to financial constraints, had to use poor quality but the price is relatively low other pipe. In the large-diameter projects, many times because of the limitations of project budget and give up use HDPE Pipe.

The target marketing strategy

  • Our endeavor is to seize every opportunity and never give up & to win the target market. As the product has the characteristics of a one-time marketing opportunity, can be said to have the purchasing power of the market gradually shrink, losing a sales opportunity to give up a territory. Meanwhile, the economic strength of the impact of economically backward regions currently no purchasing power, difficult to achieve in the current sales, would not have become the target market conditions. Despite the economic development, increase purchasing power, this market may be our future target markets, but technological advances, new technologies, new materials emerging, the future market has been highly variable, we only seize the opportunities in all markets today, the full sales, won the target market, increase market share.
  • We have a solid market to ensure basic sales
  • In the past, manufacturers of HDPE Pipe pipe industry less competitive, not very fierce competition, companies can use the "funnel" approach to marketing, market growth means that the number of new customers added, companies can keep the new customers to fill Marketing the funnel, without worrying about the old customers will be lost from the funnel bottom outlet. But now the industry oversupply, the characteristics of a buyer's market, the increasingly fierce competition, making fewer and fewer new customers and attract new customers costs continue to rise. When the loss of customers, they not only take away the profits of the current transaction, and took all the future profits. Especially for strong industry centrifugal HDPE Pipe pipe, water in contact with more than peer, word of mouth is very important. Therefore, to maintain old customers is top priority.
  • Effort to expanding the target market. In some areas, such as water, sewage industry, the higher the pipe corrosion resistance, but has a lower pressure requirements. This can be further broken down into the market, consider reducing the wall thickness levels, thereby reducing costs and selling prices, less demanding to meet these pressures the individual needs of the department, to create new target customers, the purpose of expanding the target market. Fourth, the implementation of relationship marketing, target customers to maintain and create, promote the successful marketing of HDPE Pipe pipe
  • We try to strengthen the quality and service, eliminating the worries of customers so as to improve customer loyalty.
  • According to customer needs, and constantly develop new products, increase customer interest.
  • Good use of chain effect to expand the target market

Our company not only relies on the industry's reputation but also provides quality products to win customer confidence. We understand the importance of services and to enhance it we strive to enhance the following aspects

  • Improve the pipeline supporting measures. Company not only provides pipe, fitted with the use of seals and fittings company offers, the overall responsibility for the quality of the pipeline, to avoid problems customers have to analyze the causes, effectively eliminating the use of the customer to worry about.
  • To strengthen pre-sales, after-sales service. Companies use their own sales network all over the country, strengthen the stocking, delivery, construction, technology, service, commitment, once the problem occurs, employees 24 hours to the scene to solve the problem.