A Case on Buyer Behavior

OVERVIEW :
Pioneer in manufacturing of FLTS
In stiff competition with Aquarius
Leader in Electric FLTs
Distant second in Diesel FLTs

Key determinants of
buyer behavior for FLTs?
1.Price and sales effort
2. Lower investment- try to eliminate exit
barriers
3. feature- benefit analysis- customize product
as per customer needs-types of tyres,
transmission, lifting and steering
mechanisms, load and lift capacities
4. cost-benefit analysis- capital costs and
running costs.
5. Post-purchase evaluation-for rebuyfrequency of breakdown, downtime,
availability of spares, operating costs

Buyer Segments
Basis of Scale of usage

Major
Small
Basis of Ownership

Private
Public
TYPE OF BUY?
HOW OFTEN IS THE BUY?
WHAT IS THE TIME TAKEN TO DECIDE?

Major and Small users

Major users
Proven technical performance Straight

Rebuy
Purchase price
Brand and supplier image

Small users
Proven operating cost or economy
Purchase price
Technical superiority

Public and Private users

Public sector
Negligible influence of users in purchase

decision
Price oriented
Can you influence tender specificationstechnical bid or price bid

Private sector
Larger influence of users
Performance oriented
Private fleet owners hired out FLTs to

government

Competition with
AQUARIUS:
Price criteria
Government sector
Small users

Technical criteria
Private sector
Major users

Rebuy decisions
Major users ( due to existing market

presence)

Segmentation of the FLT market:

Market

Target Market

Industries which
have the
requirement of
material handling
i.e. lifting, moving
and stacking.

Industries which
prefer to have use
material handling
devices

Segment
On the basis of
scale of the
industries
-Major user
-Small user
-Stray user
On the basis of
ownership
-Government
-Public sector
-Private sector

Target Segments
Major user
Small user
PORT TRUSTS,HE
AND PROCESS
INDUSTRIES

Government
Public sector
Private sector

On the basis of
user requirement
-Indoor
-Outdoor
On the basis of
capacity
-Less than 2
tonnes
-Less than 5
tonnes

Indoor
Outdoor

Less than 5
tonnes

Data on buyer behavior

Understanding
Who are the major decision participants?
What decisions do they influence?
What is their level of influence?
What evaluation criteria do they use?

Influence the decision makersreduce marketing effort, get

better price
For smaller users-production head

and general manager

Major users- planning department
and industrial engineering people
New projects in private sectorconsultants

Scenario- SWOT analysis