Green Rubber - Business Marketing Analysis

Topics: Marketing, Industry, Manufacturing Pages: 6 (1528 words) Published: October 31, 2011
B2B Assignment 1
Green Rubber Case Study

1.0 Introduction
Green Rubber Global (GRG), a subsidiary of the Petra Group, own the global patent for the ‘DeLink’ technology, a compound that can be used to create a new product called ‘Green Rubber’. This revolutionary process transforms scrap (including vulcanized) rubber into a new recycled compound that possesses many of the desirable characteristics of virgin rubber, while doing so at a reduced cost to business and the environment. GRG was formed in 1996 by businessman Vinod Sekhar to promote Green Rubber (GR). Initial attempts at commercialization failed, due largely to the Asian financial crisis, low oil and rubber prices, and society’s general indifference on environmental matters at the time (Case Study, 2011), however, an attempt to re-introduce the product on a commercial scale has recently been launched. A number of circumstances have changed since the initial entry attempt, and with the world’s ever-increasing rubber consumption pattern, we are not far from seeing global demand for rubber exceed supply (Case Study, 2011), making Green Rubber an incredibly relevant product for this current day and age. This report contains an analysis of the company and its customer groups. Key strategic decisions need to be made in a number of areas, and the goal of this report is to inform decision makers and provide a basis for judgment formation.

2.0 Company Analysis
The ‘Dell’ model (Hutt, et. al, 2010) looks at four major components of a business concept; Customer Interface, Core Strategy, Strategic Resources, and Value Network. The GRG business has been analysed using this model, and the following points of note were evident. (See diagram overleaf)

* Strategic focus
* Complete customer solutions
* Revolutionise rubber product industry
* Marketing objectives
* Initiate widespread industrial trial of Green Rubber * Further the brand through strategic partnerships
* Overcome hurdles of skepticism in the industry
* Value Proposition
* Cost-effective, sustainable, and customisable recycled rubber solutions, with exceptional service support * Customer requirements
* Are wide and varied
* Some industries have already adopted GR, others have more stringent quality standards and are awaiting results of more detailed tests * Must be tailored to each industry and business needs * Segmentation

* By industry
* By technological complexity (high-tech, low-tech)
* By usage type
* By usage rate
* By country

For more segmenting information, see the following section, Customer Analysis.

3.0 Customer Analysis
The customers of Green Rubber are wide and varied. Potential for GR products spans over all three business sectors (Commercial, Government and Institutional), but currently the major targeted industries as specified in the case study are; * Tire retread industry

* Automotive industry (excl. tire manufacture)
* Industrial sector
* General rubber-products sector
The current targeting strategy stems from the segmentation of complexity of functional purchasing criteria, or what could more simply described as ‘low-tech’ and ‘high-tech’ industries. The low-tech industries have less stringent attribute specifications, and can adopt Green Rubber with a much smaller turnaround-time. They would generally tend to be more of a transactional customer. The functional expectation of a product in a low-tech industry is generally judged on simpler specifications, based on common principles such as; shock absorption (eg: dock bumper, shoe sole), traction/slip-resistance (eg: tyre retread, mats), or element impenetrability (eg: seals, roof-liners). The high-tech industries, such as the automotive industry, are likely to require very specific combinations of performance in a great number of areas. This would require a highly collaborative relationship...
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