Hamilton Power Tools

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Hamilton Power Tools with Mr Campagna, the marketing manager for Hamilton Tools is a sales oriented company and wanted to adopt consumer oriented philosophy of the marketing concept. For more than 30 years, Hamilton Power Tools had been marketing industrial products by catering to the construction and industrial tool markets. Their construction product lines included tools such as power trowels, concrete vibrators, generators, and power driven tools. Their industrial lines were primarily pneumatic tools: drills, screw drivers etc. One of their products, the gasoline powered chain saw, was somewhat different from the traditional construction and industrial tools. It had the opportunity to acquire a small chain-saw manufacturer. The main reason behind this was to diversify the company into other markets. The chain-saw market was changing rapidly during 1970, and Hamilton Tools executives realise that they needed some expert advice. Reports from trade publications, statistics from The Chain-saw Manufacturers’ Association, and his personal experience of 15 years made him believe that the state of the chain-saw industry was composed of professionals (lumber jacks), farmers, institutions, and casual users. The marketing executive had a short questionnaire on the warranty cards that purchasers returned after buying a Hamilton Chain-saw. According to the warranty card “survey”, the fastest growth in the chain-saw market was in the homeowner or the casual user market segment. This market consisted of the wood-cutters who used the chain-saw once or twice a year to cut firewood or to prune trees in the backyard. Chain-saw sales began to slow down because of the seasonal nature of the business in 1978 due to which Mr Campagna and Ray Johnson had a meeting with John Hamilton and was able to convince the executive that some consumer research was necessary. The research was conducted by Consumer Metrics, by Frank Baggins and the presentation was given in the presence of Dale Conway, Vice President of the research corporation. The research was done in two parts:- * Survey of Chain – Saw consumers

* Thematic Apperception Test (TAT)
TAT is a motivational research suggested by Consumer Metrics of Chicago. TAT is the pictures in the form of exhibits. The research concluded that West Coast is one of the faster growing markets for Hamilton Chain Saws. The number of retail outlets and the service distributors in this area is in line with the marketing strategy. Consumer Metrics sample California men who purchased HCS in 1977 and 1978. Warranty cards that listed the purchasers during these years were used as a sampling-frame. The purpose of the study was to learn about the behaviour of the ultimate chain-saw consumers than about the use of chain-saws in public or private institutions. Out of 463 questionnaires mailed, 201 (43.4%) were returned and 18 (3.9%) were not delivered. The research shows that the people who purchased HCS Chain-Saw were 25 years or older. More than two third had combined family income of above $18,000 per annum and 57% were above $20,000 per annum. Out of all the people in the market, 5.5% users were professionals, 20% use it on their farms, 3% rent chain-saws and more than 70% can be classified as “casual users”. The quality was rated good or excellent by 85% of the respondents and 75% were satisfied. 35% population purchase chain-saw from special stores, 20.5% from equipment store, 9.5% from hardware store, 7% from farm stores and 5% from sports stores. The research also reveals that only 32% of respondents were completely familiar with chain-saw, 44% said “somewhat familiar”, 19.5% said they were “unfamiliar” and 63.5% had no knowledge about it. Another interesting thing that came up was that, only 20% of all respondents had planned to buy Hamilton Chain-Saws.

Another important finding from this question was that, 45% of cases of purchase were influenced by the salesperson recommendations....
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