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Promotion Mix Design For “Construction Controller” Certification For Building Audits (BAS)*

CASE STUDY, MARKETING MANAGEMENT
ET Cases - GSMC, 8 Pages
AUTHOR(S) : Pallavi Sajanapwar - Professor, Indira Institute of Management, Mangesh Yeolekar - Student, Indira Institute of Management

Case Preview

Promotion Mix Design For “Construction Controller” Certification For Building Audits (BAS)

 

Akash was in deep thoughts about the presentation to be done in a special board meeting called on August 17th 2016. Akash a young, energetic marketing manager at Building Audits (BAS), was handed over with a key task to analyze the difference in view of Mr. Kale and Mr. Gokhale, the founder members of BAS and to find an innovative solution to design the promotion mix campaigns for “Construction Controller Certificate (CCC)”.

Akash was in dilemma about the promotion mix of the products, after looking at the files he was trying to analyze what would be the footstep which would lead to a win-win situation to both Mr. Gokhale & Mr. Kale. While in deep thoughts he began thinking about how all this started.

Building Audits

Building Audits (BAS) is a third-party construction grade organization dedicated to enhance the standard of building projects, with a variety of projects right from infrastructure projects, commercial projects and real-estate projects. BAS is present throughout India and consists of a team of more than hundred employees who are considered intellectuals from the construction industry...............

Board members

Mr. Kale, a Civil Engineer, worked with an MNC as a design engineer since 1991. He completed his MBA from Premier Management Institute in 1994. He was keenly interested in subjects like Operations Research, Mathematical Methods and Research Methodology. He was proficient in Concrete Technology and established Concrete Mix Design and Material Laboratory in the year 1995..........

The Indian Real Estate Market

The real estate market in India is anticipated to grow US$180 billion by the year 2020. Contribution of housing sector alone is five to six per cent to the GDP (gross domestic product) of the country. Among the 14 major sectors, the construction industry ranks third in terms of direct, indirect and induced effects in all sectors of the economy............

Journey of Building Audits

BAS started as a quality management firm and in the first 10 years i.e. from 2001-2010, they gained expertise in pre-delivery inspections, stage wise audits and quality management. Thus, after gaining foothold of the market the company updated its services and started end to end project management, cost and materials audit and training of site staff (the list of top customers of BAS is presented in Exhibit I)...........

Construction Controller Certification (CCC)

A survey done on construction quality by FIDIC (International Federation of Consulting Engineers) recently established the fact that failure in accomplishing suitable quality of construction was an issue around the world. The burden to decrease the preliminary cost of construction and supervision was found to have adverse effect on quality, which would have been projected................

Target Segments for CCC

• Residential Apartments
• Commercial Buildings
• Shopping Malls
• Educational Institutions
• Industrial Sites
• Government Sites

Now Mr. Gokhale is in the favor of boosting CCC as it is a direct approach to the builders and want to brand the product as an internal catalyst in construction industry, just like “Intel inside” is in the world of computers...........

Exhibits

Exhibit I: List of Top Customers

Exhibit II: Advertising Rates in Magazine

Exhibit III: Advertising Rates for TV

Exhibit IV: Advertising Rates for Radio

Teaching Note Preview

Promotion Mix Design For “Construction Controller” Certification For Building Audits (BAS)

 

Synopsis

The present case study instigates students to design a promotion mix plan in B2B scenario. It presents a real-life situation of a marketing manager who motivates students to think about how a target audience is selected for the promotion mix. The case study also forces students to think through all the seven steps of promotion mix design right from objective of the promotion to measuring return on investment. This case study can be used for teaching B2B promotion mix or promotion mix of services.

Pedagogical objectives:

1. To understand various promotional tools available in B2B markets.
2. To assist students in designing a step by step promotion strategy development process.

Case positioning and setting:

This case study can be used for MBA or executive MBA courses to teach the topic of Promotion Mix in the subject of Business to Business Marketing. It will help students to understand how to design the promotion strategy and how to evaluate the impact of the same.

Mandatory Reading:

Students should be aware about the marketing mix of business marketing and services marketing.

The following chapter should be read for analyzing this case:

For the subject of Services marketing: Chapter 5: Lavlock, Designing the communication mix for services

For the subject of Business Marketing: Chapter 16 and 17: Michael Hutt, Business marketing Management

For the subject of Business Marketing: Chapter11: Business marketing communications, Business to business marketing Havaldar.

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Abstract

Building Audits (BAS) is a partnership company established in 2001 by two young entrepreneurs, Mr. Kale and Mr. Gokhale, for providing quality audit services in Pune. BAS had a clientele of 150 builders across all the metros of India with a turnover of INR30 Crore.

The rising market of real estate and the absence of standard certification for quality in residential projects in India had inspired BAS to develop first ever building quality certification “Construction Controller Certification (CCC)”. It is a standard offering star ratings to the Indian residential projects based on various predefined parameters.

With a market survey BAS found out that people appreciate such type of rating system. But the main hitch was absence of similar product in the market. So, the success of the product was dependent on the promotion strategy implemented by the company.

There was a difference of opinion amongst the partners on the promotional strategy. Mr. Gokhale was of the opinion that BAS should only focus on the builders, where as Mr. Kale was of the opinion that they should also target the flat owner’s. So, both of them gave this key task of developing the promotional strategy to their young, energetic marketing manager, Akash and asked him to present it in a special board meeting called on August 17th 2016.

The company was ready to invest around INR1 Crore in the coming year and was keen on knowing the ROI in terms of direct and indirect benefits. Akash was contemplating on all the options suggested to him for promotional strategy and was thinking which one to be presented on the D-day.



Pedagogical Objectives

  • To understand various promotional tools available in B2B markets.
  • To assist students in designing a step-by-step promotion strategy development process.
  • Case Positioning and Setting

    This case study can be used for MBA or Executive MBA courses to teach the topic of Promotion Mix in the subject of B2B Marketing. It will help students in understanding the process of designing the promotion strategy and evaluating the impact of the same.


    * GSMC 2017, IIM Raipur

    This Case Pack Includes:
    - Abstract
    - Case Study
    - Teaching Note (**ONLY for Academicians)
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