INDUSTRIAL MARKETING

Group no 1

1. Pintu Bhardwaj 91072. Sachin Gawali 91173. Deepa Shetty 91524. Deepika Singh 91535. Manish Singh 9154

Submitted to – Prof. Rajesh Vyas

CASE OVERVIEW

MPIL was setup for improving the distribution in South

MPIL lost its market share North Karnataka MPIL was solely dependent on Bangalore

Metal Trader for distribution New entrants operated with the sub dealers

of MPIL

METAL PRODUCTS INDIA LIMITED (MPIL)

Established in 1987 at the out skirts of Bangalore.

Set up by parent company Madhya Bharat Metal Sections Limited (MBMS) in Bhilai

Manufacturers of mild steel mostly used in construction, furniture, rolling shutters and industrial sheds.

METAL INDUSTRY

Complete market size was of 40,000 metric tones (MT)

Annual growth rate of 6 percent Major Players

Karnataka Metal Sections (KMS) Adarsh Metals (AM) Mahavir Metal Sections (MMS)

COMPARISON WITH OTHERS

On the basis of product quality On basis of pricing & discounting On the basis of distribution & availability On the basis of brand name & reputation of

the company

CHARACTERISTICS OF ENVIRONMENT

Previously MPIL was market leader in south India

environment was favorable for MPIL Business was quite attractive Later on new entrant increased the

competition

DISTRIBUTION CHANNEL OF MPIL

Distribution through existing dealers of MBMS Appointed new dealers at Vijayawada, Calicut and

Erode MPIL decided prices for its dealers Manufacturer gave discount of 3% to 7%

depending on volume Dealers further marked up the prices by 7% to 8% Direct dealing with OEMs and Government

Customers MPIL had warehouses at Chennai, Coimbatore,

Ernakulam and Hyderabad

MARKET STRUCTURE

Bangalore Metal Traders (BMT) was largest dealer in South India with off take of 2000 MT per annum

BMT had more than 50% of market share in Karnataka

Transactional Relationship/Mutual Understanding MPIL didn’t appoint dealers at other centers in

Karnataka BMT didn’t dealt with other manufacturers

MARKET STRUCTURE - CONTD…

Karnataka Metal Sections (KMS) operated Bangalore market through Kavery Agency

More than 80% of market was shared by MPIL & KMS

APPARENT PROBLEM

Loosing sub dealers in north Karnataka Loss in market share Strategies adopted by competitors i.e. new

entrants Discount rate for the sub dealers Distribution network

RECOMMENDATION

MPIL should not solely depend on BMT MPIL should promote their product through

hardware to capture the market of north Karnataka

Restructuring of discount in interest of sub dealers Applying condition to deal only with MPIL products Assigning of new dealer in different areas of south

India

PROBLEMS WITH SUGGESTED RECOMMENDATION

Might loose the some business with BMT

Cant offer high margin as AM and MMS

Time constraint in appointing new sub dealers

Cost involved in studying market by new sub dealers

THANK YOU