Govind Doors Pvt. Ltd.: STP Strategies

Arun Kumar joined the family business in 2006, after completing graduation in Electronic Engineering and MBA from a reputed management institute in India. The company manufactured and marketed GTEX brand PVC (Poly Vinyl Chloride) and FRP (Fibre Reinforced Plastics) doors suitable for bed rooms, bath rooms, office rooms, balcony, etc. These non-wood based doors can be used for residential houses, institutions like hospitals and schools, as well as commercial establishments like shopping malls and multiplexes. The company had segmented its market into the following segments: (a) government organisations like CPWD (Central Public Works Department), MES (Military Engineering Services), and Railways; (b) residential complexes built by builders; (c) commercial organisations and institutions; (d) individual house owners, replacement market, and (e) fabricators. "We have targeted all the above market segments for PVC and FRP doors, excepting those customers who want wooden and special (or customised) doors" said Arun Kumar. He further added, "Our sales people regularly contact contractors who get business from government organisations, where lowest prices and good after-sales-service are the key buying factors. However, when our sales people call on builders for residential and commercial complexes for getting orders, superior product quality and service are the important factors they have to keep in mind. For a large number of individual house owners, small volume replacement market, and fabricators, we use indirect channel of dealers, who mostly look for low prices and delivery service (or availability)." The company had established three sub-brands under GTEX brand. Solidex brand was suitable for government firms, institutions, individual houses with medium quality and medium to low prices. Fibrex brand with high quality and high price was appropriate for builders and a few individual house owners. Lightex brand offered lower quality and low prices for replacement market and a few individual house owners. Fabricators were offered the required raw material from all the three sub-brands. There were three major players, including Govind Doors, with almost equal market share of 20-25 per cent. The balance market was shared by many small players and also by fabricators. The company had not considered which target market strategy it should use. Arun Kumar was also not sure what should be the positioning strategy for its brand GTEX. It was important to decide these strategies, since the market for PVC and FRP doors was growing extremely well at 34 to 64 per cent per year between 2002 and 2006. And the competition from small players was slowly catching up with the three major players.

Questions

1. Do you think it was a right decision of the company to target all the segments?

2. What target market strategy would you suggest and why?

3. How would you develop a positioning strategy for GTEX brand of the company including its subbrands?