Premium Bath Fittings in India

Marketing Assignment (Term 3): Group 2: Bath Fittings Akhil P, Ameya K, Bhaskar D, Pratyush G, Shashank P Branding Building Brand Equity ? Brand Elements o Superior build quality (elegant designs, corrosion resistance, longer functional life, and superior finishing) of imported bath fittings as compared to domestic bath fittings. Assured after-sales service for imported bath fittings, via their distributors and partners in India (ex: Italian premium brand Novellini markets its products through Cera Sanityware Ltd). Domestic makers of bath fittings are mostly unorganized in after-sales services.Water conservation (Imported bath fittings use 20% lesser water than domestic bath fittings). Imported bath fittings have the option of being customized to customer’s requirements. Endorsement from best-in-business real estate builders, architects, high-end hotels & luxury services and interior designers Associated with competitions and social causes (ex: Participants of the prestigious Solar Decathlons, usually held in Washington, preferably use bath fittings by Duravit in their constructions) Managing Brand Equity ? Brand Reinforcement Concept Bathrooms: Imported bath fittings are prominently displayed in stores as a complete-bath-solution (i. e. a complete bathroom is setup inside the store using imported bath fittings). This style of display enhances the product attractiveness to customers and the customers are inclined to buy the whole solution rather than just the individual product Advanced technology in bath fittings (ex: Sensor technology to control water temperature; Battery-operated towel warmers) Creating limited edition of products to maintain exclusivity (ex: Sterlingham frequently makes a limited set of hand-crafted bath fittings) o o ? o o o Leveraging secondary associations Branding Strategy ? o ? ? Aimed at medium to high income customers Portrayed as a style statement Corporate name is printed on each product Integrated Market Communication Marke t ? ? ? ? Bath fittings that are imported are focusing in the urban segments. Focused in the niche market. Establish tie-ups with architects, builders & interior designers. Establish relationship with the major hospitals for selling their products. Money ? ? ? ? Focuses more on the B2B. Share of business of 70% in B2B and 30% to B2C. Few competitors in the niche market of Bath fittings.Major focus in the product substitutability to have stylish and prestigious products. Message The Imported Bath fittings advertise as the product that is dedicated to designing and delivering beautiful products that last a lifetime. They offer a variety of sinks, bathroom faucets and bathroom showering. Bathroom fixtures combine style and perfectly matching the decorating style. Imported bath fittings are dedicated to designing and delivering beautiful products that last a lifetime. Media The Import bath fittings do marketing through the following mediums ? Television Networks. ? Radio stations. Fashi on Magazine. ? Bill boards in the Airports. ? Trade Shows in Metropolitan Cities. Pricing Customer Value and Sensitivity to Price The imported bath fittings are primarily aimed at medium to high-income customers who have loads of disposable cash. In this unconventional form of art, customer has perceived a value that satisfies his/her need as an ego satisfier and/ or as an investment. Hence higher the price, the better an ego satisfier is the product and so is the willingness to pay. Buyer Characteristics and Pricing Method Buyers are looking for quality, after-sales support and uniqueness.To tap into these customers, foreign makers of bath fittings make limited editions of specific products. They also maintain a superior build quality while giving leeway for customizing the products as per customer requirements. Price-Quality Relationship The traditional price-quality relationship holds good here, where higher price signifies better quality. Price Discounts and Allowances Discounts are usually given by the dealer or partner with which the foreign brand has a tie-up with. These local dealers/partners usually give volume discounting.Sustaining Value Customer Evolution ? ? ? ? ? ? Growth in real-estate sector; Growth in hospitality industry Customers have become knowledgeable about both domestic and imported markets Defining the requirements differently o More focus on quality and after-sales service rather than just low-cost products ? Company o Foreign brands sometimes setup a local subsidiary to cater to the demand ? Context o Imported brands understood the need for after-sales service needed by the customers. Hence, they focused on this need through their dealer and partner networksShifting locus of purchasing authority & Changing ability to pay o Increased disposable income of domestic customers Competition o Domestic vs. Imported brands Collaborators o Sustaining Value Creation ? ? Proprietary Process o Use of new and/or patented technology in bath fitting s New Product Introduction o o Imported brands market through local dealers and partner networks. Domestic brands market through local dealers, partners and company stores Bath Solutions based on: Size (small to large bathroom) or Theme (Family/Guest/Child-friendly/Elder-friendly bathrooms) Go to MarketThe Go-to Market strategy of bath fittings in India focuses on 3 main components: It encompasses the following 3 dimensions: ? Portfolio of offers ? New sales model ? Customer Base/Customer partnerships The bath fitting industry players in India maintain a dedicated innovation function to align the product offers with the demand. Companies, such as Afrikano, Moen etc. , provide a unique and affordable package to suit the budget needs of the customers. In order to crack the new geographical markets, these companies engage in ‘Partner management’ to extend the geographical coverage and complement the offer portfolio.The offer portfolio may include – 1. 2. 3. 4. 5. 6. 7. 8. Taps Bathroom Furniture Spa Shower and steam room Diverter and jets Kitchen Faucets Kitchen furniture After sales service The target portfolio is basically built around another 3 axes and is thus supported by an intelligible structure, which can be depicted as shown: The Go-to market strategy for the high end bath fittings is faced with 2 main challenges: ? The market is restricted ONLY to urban areas. Customers in the rural areas do not possess such purchasing power and the pioneering cost in rural areas is very high. The demand for replacing bathroom fittings is low and the bathroom size is relatively small when compared with bathroom sizes of other developed/developing nations. Hence, continuous business from the same customer is not ensured. The main players in the market provide complete bathroom solutions with water conservation technology. Another strategy employed by such organization is to forge alliances with builders in the real-estate sector so that installations can be done during the construction phase itself. They also target architects working on high end projects for luxury market, hotels etc.The bath fitting market in India is highly competitive with many organized and unorganized players in the market. Foreign players either have distribution partnerships with Indian major players or have ventured in establishing wholly owned subsidiaries through Mergers & Acquisitions and Green- Field Ventures. Moreover, companies are opening dedicated showrooms with concept bathrooms to showcase better product demonstrations. The market channel that is being used buy this industry can be summarized as follows: Companies employ direct selling and retailing strategies to penetrate the market. Premium Bath Fittings in India Marketing Assignment (Term 3): Group 2: Bath Fittings Akhil P, Ameya K, Bhaskar D, Pratyush G, Shashank P Branding Building Brand Equity ? Brand Elements o Superior build quality (elegant designs, corrosion resistance, longer functional life, and superior finishing) of imported bath fittings as compared to domestic bath fittings. Assured after-sales service for imported bath fittings, via their distributors and partners in India (ex: Italian premium brand Novellini markets its products through Cera Sanityware Ltd). Domestic makers of bath fittings are mostly unorganized in after-sales services.Water conservation (Imported bath fittings use 20% lesser water than domestic bath fittings). Imported bath fittings have the option of being customized to customer’s requirements. Endorsement from best-in-business real estate builders, architects, high-end hotels & luxury services and interior designers Associated with competitions and social causes (ex: Participants of the prestigious Solar Decathlons, usually held in Washington, preferably use bath fittings by Duravit in their constructions) Managing Brand Equity ? Brand Reinforcement Concept Bathrooms: Imported bath fittings are prominently displayed in stores as a complete-bath-solution (i. e. a complete bathroom is setup inside the store using imported bath fittings). This style of display enhances the product attractiveness to customers and the customers are inclined to buy the whole solution rather than just the individual product Advanced technology in bath fittings (ex: Sensor technology to control water temperature; Battery-operated towel warmers) Creating limited edition of products to maintain exclusivity (ex: Sterlingham frequently makes a limited set of hand-crafted bath fittings) o o ? o o o Leveraging secondary associations Branding Strategy ? o ? ? Aimed at medium to high income customers Portrayed as a style statement Corporate name is printed on each product Integrated Market Communication Marke t ? ? ? ? Bath fittings that are imported are focusing in the urban segments. Focused in the niche market. Establish tie-ups with architects, builders & interior designers. Establish relationship with the major hospitals for selling their products. Money ? ? ? ? Focuses more on the B2B. Share of business of 70% in B2B and 30% to B2C. Few competitors in the niche market of Bath fittings.Major focus in the product substitutability to have stylish and prestigious products. Message The Imported Bath fittings advertise as the product that is dedicated to designing and delivering beautiful products that last a lifetime. They offer a variety of sinks, bathroom faucets and bathroom showering. Bathroom fixtures combine style and perfectly matching the decorating style. Imported bath fittings are dedicated to designing and delivering beautiful products that last a lifetime. Media The Import bath fittings do marketing through the following mediums ? Television Networks. ? Radio stations. Fashi on Magazine. ? Bill boards in the Airports. ? Trade Shows in Metropolitan Cities. Pricing Customer Value and Sensitivity to Price The imported bath fittings are primarily aimed at medium to high-income customers who have loads of disposable cash. In this unconventional form of art, customer has perceived a value that satisfies his/her need as an ego satisfier and/ or as an investment. Hence higher the price, the better an ego satisfier is the product and so is the willingness to pay. Buyer Characteristics and Pricing Method Buyers are looking for quality, after-sales support and uniqueness.To tap into these customers, foreign makers of bath fittings make limited editions of specific products. They also maintain a superior build quality while giving leeway for customizing the products as per customer requirements. Price-Quality Relationship The traditional price-quality relationship holds good here, where higher price signifies better quality. Price Discounts and Allowances Discounts are usually given by the dealer or partner with which the foreign brand has a tie-up with. These local dealers/partners usually give volume discounting.Sustaining Value Customer Evolution ? ? ? ? ? ? Growth in real-estate sector; Growth in hospitality industry Customers have become knowledgeable about both domestic and imported markets Defining the requirements differently o More focus on quality and after-sales service rather than just low-cost products ? Company o Foreign brands sometimes setup a local subsidiary to cater to the demand ? Context o Imported brands understood the need for after-sales service needed by the customers. Hence, they focused on this need through their dealer and partner networksShifting locus of purchasing authority & Changing ability to pay o Increased disposable income of domestic customers Competition o Domestic vs. Imported brands Collaborators o Sustaining Value Creation ? ? Proprietary Process o Use of new and/or patented technology in bath fitting s New Product Introduction o o Imported brands market through local dealers and partner networks. Domestic brands market through local dealers, partners and company stores Bath Solutions based on: Size (small to large bathroom) or Theme (Family/Guest/Child-friendly/Elder-friendly bathrooms) Go to MarketThe Go-to Market strategy of bath fittings in India focuses on 3 main components: It encompasses the following 3 dimensions: ? Portfolio of offers ? New sales model ? Customer Base/Customer partnerships The bath fitting industry players in India maintain a dedicated innovation function to align the product offers with the demand. Companies, such as Afrikano, Moen etc. , provide a unique and affordable package to suit the budget needs of the customers. In order to crack the new geographical markets, these companies engage in ‘Partner management’ to extend the geographical coverage and complement the offer portfolio.The offer portfolio may include – 1. 2. 3. 4. 5. 6. 7. 8. Taps Bathroom Furniture Spa Shower and steam room Diverter and jets Kitchen Faucets Kitchen furniture After sales service The target portfolio is basically built around another 3 axes and is thus supported by an intelligible structure, which can be depicted as shown: The Go-to market strategy for the high end bath fittings is faced with 2 main challenges: ? The market is restricted ONLY to urban areas. Customers in the rural areas do not possess such purchasing power and the pioneering cost in rural areas is very high. The demand for replacing bathroom fittings is low and the bathroom size is relatively small when compared with bathroom sizes of other developed/developing nations. Hence, continuous business from the same customer is not ensured. The main players in the market provide complete bathroom solutions with water conservation technology. Another strategy employed by such organization is to forge alliances with builders in the real-estate sector so that installations can be done during the construction phase itself. They also target architects working on high end projects for luxury market, hotels etc.The bath fitting market in India is highly competitive with many organized and unorganized players in the market. Foreign players either have distribution partnerships with Indian major players or have ventured in establishing wholly owned subsidiaries through Mergers & Acquisitions and Green- Field Ventures. Moreover, companies are opening dedicated showrooms with concept bathrooms to showcase better product demonstrations. The market channel that is being used buy this industry can be summarized as follows: Companies employ direct selling and retailing strategies to penetrate the market.