Sales Campaign /Strategy MDS Switchgear Ltd

Anand G Khanna

Background

• MDS started in 1977/78 ,was Industry Leader in LT Switchgear • 1987 – 1989 Existing Product portfolio MCB-Loadster ,

LoadKontakt ,Distribution Boards• Need to expand Product portfolio – New MCB 6K &3K , RCCB-

Residual Current Circuit Breaker-Earth Leakage , Automatic Fuse Breaker(AFB ) etc

• Following were identified RCCB, new MCB 6K& 3K from ABB , AFB from- Clipsal Australia

• Product Market assessment –Visit to Italy , Thailand , Malaysia• JV signed with ABB Electro Condutture Italy Sept 1990 & ABB

Germany for MCB in Oct 1990• Test Marketing of AFB was planned

Sales Strategy for MCB –Loadster & LoadKontakt for Growth 1989

• Increase the production of LoadKontakt(LKT) from 1.25 lacs /annum to 7.5 lacs per annum

• Maintain production volume of Loadster(LDS) at 8.00 lacs /annum

• Production volumes estimated for 2 years • Pro-rata increase for Distribution Boards• Market assessment for volume of LKT by few top managers of

Company and Channel partners• Increase in the Production Facility at works –Sourcing of

components • Strengthening of Distribution Channels ;Manpower

requirements

Pricing Strategy

• LDS was priced at Rs.75 per MCB was revised to Rs. 85.

• LKT was priced at Rs. 87.50 per MCB was revised to Rs. 77.50

• Change in the Sales Policies for better margins to the channel partner

• Date of revision was kept secret and made w.e.f July 1,1990

•

Sales Campaign for the Company

• Reduce the supply in Market of the LKT put pressure for aggressive sales in the market

• Increased Channel network• Increase Manpower factoring other products

to be launched in next 2 years • Developing Retail Network for the Company• Tentative launch dates of RCCB decided• Communication strategy finalized

RESULT

• Volume of LKT 7.95 lacs by March 31,1991• Volume of LDS 8.00 lacs by March 31,1991• Increased Channel partners by avg 20 % and

location by 20 %• Manpower by 10 to 15%• Quantum jump in Turnover , Profits etc etc

Market Entry Strategy for RCCB in 1989/90

• Market assessment – Branch & major Electrical Market Places

• Branding -LoadStop• Building up Production facilities –Training of

Production engrs/supervisors/workers• Communication strategy for Stakeholder – Channel

Partners, Consultants, Decision Makers , BIS, Industrial Customer and retail customer

• Launch date Festive season of Dusehra & Diwali Sept –Nov 1991

Integrated Marketing Communication Strategy

• Communication Strategy –to Educate Decision Makers about electrical safety at Home ,product application etc – Selection of Ad agency Nexus Equity Dec 1990

• Readers Digest Mailers – April 1991• Seminars for Consultants , BIS, Decision Makers , RWA – July –Dec

1991• Reach homes of retail customers – Advertisement with offer for free

check up of electrical safety at Home- around Launch date• Training of Electricians , Contractors for providing Electrical Safety

Check up & Demo April – Sept 1991• Training of Marketing, Sales personnel, Channel Partner –May – Aug

1991• Brochures ,Leaflets, Flyers Aug 1991

Sales Campaign & Launch Strategy

• Full page colour ads in all national dailes , selected magazines and Industrial magazines

• Follow up for Electrical Safety check ups, Roadshows at electrical marketplaces, RWA

• Aggressive coverage by Sales staff at Channel partners &Retail Channel partners locations ,

• Launch of retail channel activities

RESULT

• Volume achieved was 2.25 lacs by March 1992• 50 K were imported for the launch • Channel Partners increased by 20/40 %(North)• Location by 20%• 7500/8000 household were assessed for Electrical

safety check up by December 1991, conversion rate of around 80%

• Manpower by 5%• Retail Channel launched • Customer Education/Awareness programme launched