Mumbai Customer Segmentation Study - Concise, 30th June 2011 Vivek

Aggregate & Concrete INDIA

Customer Segmentation Study - Mumbai

1

Customer Segmentation & Price

Mapping Study Mumbai Aggregate Market- South Mumbai

May –June 2011

Customer Segmentation Study - Mumbai 2

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


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.


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.


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...


About Lafarge


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.


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


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



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


The current source of supply: (Overall)

Data Analysis : Source of Supply


Data Analysis : Source of Supply -

Segment wise

Directly – Through Crusher Owners; Indirectly - Thru Agents/Traders

No of Players


Data Analysis : Area of Supply


Data Analysis : Segment wise Area of

Supply

No of Players


Data Analysis : No of Suppliers (Overall)


No of Players

Data Analysis : No of Suppliers (Segment

wise)


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


Segment wise

Data Analysis :Price – Satisfaction Level

5 Point scale

Data Analysis :Price


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


Data Analysis :Quality – Satisfaction Level

5 Point scale


Segment wise

Data Analysis :Quality – Satisfaction Level

5 Point scale


Data Analysis :Payment Terms

5 Point scale


Data Analysis :Delivery

5 Point scale


Data Analysis :Delivery Segment Wise

5 Point scale


Data Analysis :Customer Management

5 Point scale


Data Analysis :Customer Management

Segment wise

5 Point scale


Data Analysis :Documentation

5 Point scale


Data Analysis :Documentation Segment

wise

5 Point scale


Data Analysis :Purchase Drivers Major

5 Point scale


Data Analysis :Purchase Drivers Major

Segment wise

5 Point scale


Data Analysis :Purchase Drivers Minor

5 Point scale


Purchase drivers with lest importance:

Data Analysis :Purchase Drivers Minor

Segment wise

5 Point scale


Has the project suffered in past 12 months due to supply of aggregates:

Data Analysis :


Data Analysis :Decision Makers


Data Analysis : Awareness about Lafarge


Data Analysis : Awareness about Lafarge

segment wise

No of Players


Would they be comfortable in purchasing aggregates from Lafarge:

Data Analysis :


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


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


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


Mumbai Customer Segmentation Study - Concise, 30th June 2011 Vivek

Documents

customer data

customer needs

lafarge lafarge aggregate

mumbai company

aggregates market

ton customer open

market offerings

market research