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B2B - Group-10 - Xiamater Case Submission

The document discusses Dow Corning's poor performance between 1995-2001 and the factors responsible for it. It also discusses the new customer segmentation scheme adopted by Xiameter. The main factors for Dow Corning's poor performance were its reliance on conventional selling techniques instead of online marketing, leading to untapped markets, and loss of customers to competitors offering lower prices and better distribution channels. The new needs-based segmentation revealed four customer segments - Innovative Solution, Proven Solution, Cost-effective Solution, and Price Seekers - based on purchasing needs rather than just end-user industry. This was an improvement as it better represented consumer needs and helped tailor product and service offerings.

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Antony Lawrence
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367 views3 pages

B2B - Group-10 - Xiamater Case Submission

The document discusses Dow Corning's poor performance between 1995-2001 and the factors responsible for it. It also discusses the new customer segmentation scheme adopted by Xiameter. The main factors for Dow Corning's poor performance were its reliance on conventional selling techniques instead of online marketing, leading to untapped markets, and loss of customers to competitors offering lower prices and better distribution channels. The new needs-based segmentation revealed four customer segments - Innovative Solution, Proven Solution, Cost-effective Solution, and Price Seekers - based on purchasing needs rather than just end-user industry. This was an improvement as it better represented consumer needs and helped tailor product and service offerings.

Uploaded by

Antony Lawrence
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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BUSINESS TO BUSINESS MARKETING

CASE: XIAMETER- THE PAST AND FUTURE OF A


“DISRUPTIVE INNOVATION”

GROUP-10
ANTONY LAWRENCE PULIKOTTIL (19A1HP098)
ANUJ CHANDA (19A1HP114)
BRIJESH NAND DIWAKAR (19A1HP107)
DEEPANSHU AGARWAL (19A1HP030)
PRABHAT SHARMA (19A1HP066)
SWAPNIL JOARDAR (19A1HP003)

SUBMITTED TO:
PROF. T.K. CHATTERJEE
Q1. What factors internal or external, were responsible for Dow Corning’s poor
performance between 1995 and 2001, as shown in case Exhibit 3?
Ans: The main factors responsible for Dow Corning’s poor performances between 1995-2001
are:

 Internal Factors: They were constantly trying to sell their products using conventional
selling techniques. Hence, a large portion of the market remained untapped by them since
they were not using the web to come in touch with worldwide customers. Organisations
in this business who were taking the help of the web to reach out and cater to customers
across the globe were earning more revenues.
Using e-showcasing for the promotion and advertisements of synthetic mixes and
compounds is not a very popular exercise in the compound business, and associations
who are using this strategy are making huge proportion of money inflows through this
system. Hence, Dow Corning should have recognised the e-publicizing procedure to
increase its bit of the general business around here.
But a more outrageous decline in the deals of the organisation was primarily
responsible for client abandoning which accordingly came to fruition in to a collected
abatement in the net deals and negotiations of the organisation. This is clearly visible in
Exhibit 3.

 External Factors: Xiameter used to sell their silicon material at low expenses along with
providing with after-sales service to its customer. This pack consolidated both the
product and the service cost. Regardless, the current client did not depend upon this little
volume, lower-valued thing. The customer needs a larger volume of silicon material and
is such a great amount of prepared to buy mass unrefined material even at an extreme
expense. This factor has hurt Dow Corning's customers from the manufacturing side.
Despite if the association is selling its things requiring little to no effort, everything
considered undeniably, it is more basic to satisfy customer's need first. Explaining the
customer ID circumstance widely was central since it was especially adding to the
frightful execution grandstand of the association.
Xiameter was losing its offer in light of the fact that the gigantic worldwide and
close by competitors were improving the adequacy of their dissemination channels and
controlling their economies of scale. Competitors were decreasing their costs with
enormous scope assembling and offering mass material at more noteworthy expenses to
challenge Dow Corning's value range. Also, more unobtrusive neighborhood players
were furthermore misusing this situation, the close by associations entered the market and
zeroed in on enormous market pieces at low costs subsequently thoroughly harming
Xiameter's piece of the overall industry and benefit.
Q2. What did the new segmentation reveal about customers beyond that which the
company knew already? In what ways was the needs-based segmentation scheme an
improvement over the previous and traditional end-user segmentation?
Ans: Past segmentation did not serve the drifting trends in the market as consumers were
clubbed based on industry. Previous segmentation lacks a true representation of consumer needs,
and after research and consumer surveys, four need-based segments were formed that already
exist across all six industries. These four need-based segments were categorized as Innovative
Solution (to assess emerging trends, and serve unfulfilled needs of the consumers), Proven
Solution (to provide a solution to those customers that prefer to use products that are well
established in the market), Cost-effective Solution (Consumers that are willing to pay a premium
to reduce their finished product cost), and Price Seekers (a segment that is price sensitive and
requires assurance of timely delivery).
The difference between the new and old segmentation is that the new segmentation focus on the
factors which affect the customers purchasing decisions.The need-based segmentation had an
edge over the previous industry-based segmentation as it serves the requirements of consumers
and it helps to identify where efforts need to be made to achieve desired results, and thus
facilitates to understand rising trends in consumer needs. In need-based segmentation, consumers
are categorized, and their needs are fulfilled as per their business requirements. The latter
segmentation is a true representation of consumer needs as it assisted to unbundle services and
product offerings, to serve consumers.

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