Marketing strategy for Algypug

Abstract

Algypug EnclosuresTM, an SME based out of Jigani Industrial Area Bangalore, operates by manufacturing and selling standard and customized sheet metal enclosures. Algypug faces the issues/challenges in terms of commoditization pressure, non existent or very low brand recognition, and seasonality in demand in current mode of operation. Further, Algypug faced resource constraints and has just managed to reach a level of sales revenues to meet its operational expenses in year 2010-2011. This project undertook the efforts to identify a Marketing Strategy for Algypug to effectively resolve the issue faced by the company. The company envisaged a move towards standard enclosures from its current predominant operations in acoustic and customized enclosure business segment. Particularly company viewed branding as a means of a solution for the problems faced by the company. While focusing on branding, an overall marketing strategy has been researched and reported in this project report. An in depth analysis of academic literature on the concepts of branding in business markets has been performed and the same is also presented in the report. Further, both external factors like the markets, competitors, customers, and environment, as well as internal factors like the product, portfolio, value chain, assets and capabilities are studied in detail and insights and inferences are presented. The report recommendations are pragmatic in nature and non-radical in implementation, designed keeping in mind particularly the resource constraints faced by the firm. Project work was particularly challenging because branding in industrial markets is still an evolving concept in marketing studies. Functionality, performance and a strictly rational buying behavior by the buying center is the norm of the day. Secondly the sheet metal enclosures are relatively low technology and low involvement products. Under these practical constraints working with the firm on a real issue faced by the firm was particularly challenging.