James Hardie Industries Ltd

Topics: Fiber cement siding, Building materials, Fibro Pages: 12 (3514 words) Published: October 24, 2008

Executive Summary 2-3

Current Marketing Situation 4-6

SWOT Analysis 7-9

Marketing Analysis (Discussion Question) 10-15

Recommendations 16

References 17

Executive Summary

James Hardie Industries Ltd. is an industrial building materials company headquartered in the Netherlands, specializing in fibre cement products. James Hardie is a leader in the manufacturing and development of technologies, materials and manufacturing processes of durable building materials. For over 20 years, Hardie has operated one of the largest research and development facilities devoted solely to fiber-cement technology. Hardie's fiber cement siding has a wood appearance yet does not warp or rot and will pass as a masonry product in cities that have masonry ordinances. (http://en.wikipedia.org/wiki/James_Hardie)

In 1989, James Hardie Siding Products launched a line of fiber cement home siding products. The product was guaranteed against rotting or cracking for 50 years and had a warm, textured look that Vinyl Siding could not match. Afterwards, Hardie tried the traditional “push” approach of selling the product to builders, remodelers, and home improvement centers with advertisement and products demonstrations.

However, builders did not like the siding. It was heavy, hard on saw blades, and showed any flaws in a poor frame job. Meanwhile, there were other fiber cement sidings available so a builder or home improvement center that decided to use or carry the product would frequently buy on price.

Nevertheless, James Hardie was developed some research and development. It revealed that people are very emotional about their homes. When one focuses on what building materials provide, such as safety, security, beauty, warmth, and so forth, rather than what they actually care a lot. This led the team to shift from a pure push to more of pull strategy.

Advertisement was one of the ways James Hardie builds its product’s image and so on. Magazines such as Southern Living, Sunset and Coastal Living.

Another major effort was to put HardiPlank on model homes, in “dream homes” promoted by the lifestyle magazines, and in builder design centers.

While HardiPank had to compete against Vinyl Siding and Wood Based Siding and other fiber cement brands. However, Vinyl considered the strongest competitor, it lasted longer than wood, and builders liked it because it was easy to install, and its always cheaper than James Hardie Siding. However, it did not look or feel like wood. So Hardie built displays that placed Vinyl Siding and HardiPlank side by side and encouraged consumers not only to do a visual comparison but to do a “tap test”. Using the technical and manufacturing expertise it developed, James Hardie expanded its operations to become a world-leading, specialized, high-technology manufacturer of a wide range of fiber cement building materials. Today, James Hardie is purely a fiber cement business. Its operations span the United States, Australia, New Zealand and the Philippines. They are also establishing a presence in Europe. They employ over 3,000 people who generate revenue of over US$900 million a year.

Current Marketing Situation
James Hardie

James Hardie Industries NV (JHI NV) was created in October 2001, after shareholders voted to accept a unanimous recommendation by the board of James Hardie Industries Limited (JHIL) to restructure the company and establish a new parent company (JHI NV) incorporated. The predecessor to these modern companies was established more than 100 years ago,...

References: http://en.wikipedia.org/wiki/James_Hardie
Consumer Behavior (Building Marketing Strategy) Eight Edition, Hawkins Best Coney; Irwin McGraw-Hill.
Pages: 379, 395, 464-465
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