Northern Chemical Company

Business Marketing

Group 13
Saurabh Bhandari 11P041 Animesh 11P066 Ashish Gauba 11P070 Eshan Gupta 11P074 Tejas Sharma 11P173

Characteristics
Owners

Hire Architects Gives them Parameter size, height, site, purpose

Develops the design and material specification Opposed to new products and dont trust laboratory Architects results has little knowledge of roofing and little influence on design of materials Turn task to fourth party, the roofing sub-contractor

General Contractor

Characteristics
Has direct and indirect influence on architect Resistant to change SubContractor Strongest urge to keep work force busy
Not receptive to change Sub Contractors dont want to reeducate them due to high cost involved Lack Field application in experience Underestimate application cost
Manufacturer

Roofing Worker

Northerns Image
Northern is considered a newcomer that does not understand the market
This maybe because the new products introduced are not properly installed by the roofers thus creating a false conception of a failed product

Northerns sales force considered technically incompetent in roofing

This maybe because the sales force is not able to bring out the Customer value proposition of the new product in terms of point of difference and also the limitations of the roofing workers The sales force may not have been able to justify the high price they are charging for the new product

Scenario
Opportunity
Non-residential roofing large market, $2500 million in US Firms competing ineffectively Competitors have strong product orientation rather than focus on market needs Market plagued with poor workmanship, poor quality of materials, high liability High failure rate -15% within 5 years

Northerns offering
Expected to perform better than conventional roofing systems System assure a good job as insulation takes most of the abuse in a properly installed roof Cost of production higher

Issues
Resistance of workers to change to new technology Projection costs not calculated properly, may miss out on profit margin of roofers Laboratory research results may not have been predicted under actual environmental conditions as have been seen in past Architect not ready to take risk Bidding for projects by roofers is not proper as they bi New product fails due to mismatch between product developed and roofing workers training Product specifications dont match market needs Incompetent sales force

Value Proposition
Point of parity:
Roofing system offerings in terms of functionality

Point of difference:
Performance of NCC roofing better than the competition

Point of contention:
Architects think NCC do not understand market but NCC thinks it does

Value Equation
Cost savings to Owner = [Cost of Construction + Repair & Maintenance Cost + Loss of business during process] NCC - [Cost of Construction + Repair & Maintenance Cost + Loss of business during process ]Competitor

Recommendations
Attempt to create a standardized product Build relationships with architects and subcontractors by sending direct company representatives to highlight the favorable point of differences Train sales force on technical parameters and educate them about the new product Focus on roofing workers, understand ground realities and their needs and, organize training accordingly

Thank you!