Team – Lakshya

“Dominion Motor 1. Abhishek Singh (05)

& Controls , ltd ”

2. Sahil Bhatia (43)

3. Suresh Jassani (51)

4. Swardesh Jha (52)

5. Vinay Thakur (56)

Marketing planning

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 DMC
• 50% share of oil well pumping motor market.
• Early foot hold & develop a strong market position.
• 1-200 hp motor sells revenue 26%, total 326m.
• DMC offer motor with control unit, only manufacturer in industry.
• Strong sales force, with good repo.

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Alternative 1 : Reducing price of DMC’s 10-hp
motor to level of 7 1/2 hp motor

• Could be taken immediately to prevent loss of customers.

• Short run solution.

• DMC looses the market confidence.
• Encourage other competitors to play with price
• Opportunity loss for giving discount : 380$ per unit.

Rejected

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Alternative 2: Reengineer DMC’s present 7 ½
motor to take high torque

• Will satisfy the customer requirement

• No capital investment.
• Lower operation cost.

• Violets NEMA Standards ( increase winding temperature, excess frame size,

scoping up)
• Violation safety and quality standards will dilute the brand value.
• Requires approximately 3 months to deliver in the market.

Rejected

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Alternative 3 : Making an alternative product 5-hp motor
with torque of 10-hp motor

• Price advantage over 71/2-hp motor,

• Tactical advantage over competitors in long run
• Competitive superiority in the market.
• Potential to increase market share up to 60%, in long run.
• Solve ‘overmotoring’ problem.
• Can fulfill the upcoming power companies demand.
• Less operating cost.

• 4-5 months required for implementation

• Loss of customer base in intervening period ( seasonal April to September)
• Huge R&D cost and some capital cost.
• .risk associated with specific purpose motor.
Accepted

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Alternative 4 :Challenge the Bridges and Hamilton
executives for the test results

• If DMC’s prove that the results were not accurate, it would gain customers
confidence on the products
• less cost and time investment
• Required results can be achieved with lesser initial torque requirement
• Will be a quick solution

• Uncertain, unproductive.
• Chances of Loss of Goodwill

Accepted

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 Alternative 3 :
 In long run this action will lead to a definite profit.
. Approximately new oil producers 1000 per year
Considering existing marketing penetration 50%.
Per unit cost : 665 $.

Action plan Total cost 665*500 = 332500 $ (assuming 1 motor consumption per oil well)
R&D cost = 75000
Plant metrification cost ( aprox 10% R&D) = 7500
Total cost of 500 units = 415000 $
Selling price : 1045 $ per unit
Total revenue : 1045*500 = 522500
Net Profit : 522500 – 415000 = 107500 $ ( growing per year)
 Present this alternate solution to Hamilton’s top management & Bridge, and win there
confidence.
 Stick to the NEMA standards as per DMC policies.

Alternative 4:
simultaneously start with the testing to challenge the finding of bridge so as to change there
perspective.
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Thank you

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