Entering new markets and staying competitive demands more than intuition; it requires data-driven insights tailored to specific regions and customer needs. For Crescent Foundry, market research provided a strategic roadmap to expand across India’s diverse cities.
In the competitive infrastructure and urban development sector, Crescent Foundry, a prominent manufacturer of manhole covers and grates (MC&G), recognised a need to expand its reach and adapt its offerings across Tier 1 and Tier 2 Indian cities. Given this goal, Crescent engaged Stratefix Consulting to conduct a detailed market research project, focusing exclusively on understanding the market dynamics, customer preferences, and competitive landscape in these regions.
The objective was to equip Crescent with insights that would allow it to refine its market entry strategy and align its product offerings with regional demands.
Through this case study, we explore the approach taken by Stratefix in gathering market intelligence, identifying customer needs, and conducting competitor analysis to empower Crescent Foundry’s strategic growth. This initiative underscores the importance of market research in establishing a strong foothold in complex, diversified markets.
The Challenges Crescent Faced
- Lack of Overall Market Size: Client didn’t know about the overall size of the market in India. They were unsure where it would be beneficial for them to serve and where to start from.
- Navigating Diverse Regional Markets: Crescent Foundry aimed to expand its market presence across India but faced challenges in understanding the varying demands in different regions. The cities in question presented distinct preferences for MC&G materials and specifications, making it crucial to adapt products for each market.
- Lack of Competitor Insights: The foundry market in India is highly competitive, with a mix of national and regional players. Crescent lacked detailed insights into competitor pricing, customer engagement tactics, and distribution networks, which restricted its ability to differentiate effectively.
- Understanding Customer Preferences: Crescent’s core customers, including developers, contractors, and municipal authorities, exhibited differing expectations based on factors such as price, material durability, and compliance requirements. Addressing these diverse needs required a thorough investigation of purchasing factors across various regions.
Stratefix’s Market Research Approach
Stratefix Consulting undertook a structured market research approach, divided into three main phases: secondary research, primary research, and data analysis, followed by the delivery of actionable insights to Crescent Foundry.
- Secondary Research – Analysing Market Dynamics and Size
Secondary research laid the foundation for understanding the overall market scope and segmentation:
- Market Size and Growth Projections: By analysing existing data, including market reports and industry trends, Stratefix estimated the total addressable market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM) for MC&G products. These estimations provided Crescent with a broad overview of growth opportunities in both Tier 1 and Tier 2 cities.
- Material Preferences and Regional Demand: The secondary research phase also examined preferences for different MC&G materials, such as cast iron, ductile iron, fibre-reinforced plastic (FRP), and concrete. This analysis was essential for mapping product demand across regions, as certain materials were more popular in particular cities due to factors like cost, weight, and durability.
- Industry-wise Analysis: Stratefix approached various industries and their stake holders to collect key data based on their product preferences. Feedbacks, survey, and online outreach activities were carried out to collect diverse perspectives.
- Competitor Analysis: Leveraging online resources, Stratefix examined the strategies of Crescent’s competitors. This included evaluating the websites, social media channels, and publicly available reports of companies like Jaiswal NECO, Bengal Iron, and Kapilansh. This step helped Crescent gauge market positioning and understand how other players engaged customers, managed pricing, and maintained distribution networks.
- Primary Research – Capturing First-Hand Customer and Market Insights
The primary research phase provided an in-depth understanding of customer preferences and competitive dynamics across selected cities.
- Survey and Interviews: Stratefix engaged directly with Crescent’s target customer segments, including real estate developers, municipal contractors, and architects, across multiple cities. The goal was to capture specific details about their preferences for MC&G materials and factors influencing purchasing decisions, such as load-bearing capacity, durability, and price sensitivity.
- Geographic Segmentation: Stratefix conducted on-ground research across 10-12 cities, divided between Tier 1 (Mumbai, Chennai, Bangalore, etc) and Tier 2 (Pune, Lucknow, Ahmedabad, etc). By focusing on these regions, the team could map local demand variations, ensuring that Crescent’s market approach could be adjusted to fit each city’s unique characteristics.
- Competitor Comparison: By interacting with customers who had used Crescent’s competitors, Stratefix could provide a comprehensive picture of customer satisfaction levels, pricing benchmarks, and delivery expectations across Crescent’s potential markets. This competitive intelligence offered Crescent a baseline for adjusting its pricing and refining its marketing strategy.
- Data Analysis and Strategic Insight Development
Following the research, Stratefix synthesised the collected data into actionable insights that would inform Crescent Foundry’s market entry and growth strategy:
- Customer Segmentation and Behaviour Analysis: Stratefix identified customer segments based on their unique needs and purchasing behaviours. For example, municipal contractors prioritised durability and regulatory compliance, while developers valued cost efficiency and timely delivery. This segmentation was critical for Crescent’s future marketing and sales efforts.
- Identifying Key Purchasing Factors: The research revealed several critical purchasing factors, including material quality, price competitiveness, and delivery timelines. For instance, in Tier 2 cities like Surat and Lucknow, customers preferred traditional materials due to lower costs, whereas, in Tier 1 cities, the demand for lightweight and durable materials like FRP was higher.
- Recommendation for Product Diversification: Based on the demand analysis, Stratefix advised Crescent to consider diversifying its product portfolio. This involved adding new materials, such as FRP, which had growing popularity among urban developers in Tier 1 markets. This recommendation aligned Crescent’s product offerings with regional preferences, ensuring higher relevance across diverse markets.
Core Activities in the Market Research Process
- Defining Research Objectives: Stratefix first outlined clear objectives with Crescent, focusing on market size estimation, competitor analysis, and understanding customer preferences for MC&G products.
- Identifying Target Regions: Given Crescent’s goal of expanding in Tier 1 and Tier 2 cities, Stratefix selected 10-12 key cities, ensuring a balanced representation across market types.
- Collecting Secondary Data: The team gathered industry reports, competitor publications, and online market analyses to understand overarching trends and project market potential.
- Designing and Conducting Primary Research: This included creating a detailed survey questionnaire tailored to Crescent’s customer base, ensuring comprehensive insights into decision-making criteria and material preferences.
- Analysing and Interpreting Data: The team used both qualitative and quantitative analysis methods to derive insights from the collected data, including customer segmentation, demand estimation, and competitor strengths and weaknesses.
- Formulating Strategic Recommendations: Based on research findings, Stratefix created a report with actionable insights, suggesting specific strategies for product, pricing, and geographic expansion.
Why is Market Research important for your business?
Stratefix’s research reinforced the importance of tailored strategies based on reliable, on-ground intelligence. Through this project, Crescent Foundry gained the insights needed to refine its product offerings, optimise pricing strategies, and position itself effectively against competitors. This research demonstrated the transformative role that a deep understanding of market dynamics and customer preferences plays in capturing market share.
Market research, as showcased in this project, provides invaluable insights that allow companies to navigate complex markets with confidence. The process of gathering first-hand information directly from customers and comparing it with industry data builds a solid foundation for making informed business decisions.
How Stratefix’s Expertise Enhanced Crescent’s Market Positioning
Stratefix’s on-ground capabilities were a key factor in the successful execution of this project. By combining secondary data analysis with on-the-ground interviews, Stratefix created a nuanced picture of Crescent’s market landscape.
Stratefix’s approach went beyond simple data collection, focusing on strategic alignment with Crescent’s growth goals. Their ability to conduct thorough competitor analysis, combined with an understanding of local customer demands, equipped Crescent with a competitive advantage.
Stratefix’s role in this project highlights its capability to drive growth for clients through comprehensive market research, especially in competitive, highly regionalised industries like foundry products. The findings allowed Crescent to approach the Indian market with a strategy that was not only customer-centric but also responsive to regional variances, ensuring sustainable growth.
Conclusion
This market research project has underscored the importance of strategic planning for companies like Crescent Foundry operating in competitive industries. By providing actionable insights, Stratefix Consulting enabled Crescent to optimise its product portfolio, cater to regional demands, and anticipate customer needs effectively. The structured approach to market research, from defining objectives to data analysis, exemplifies the value of a detailed understanding of market dynamics.
As Crescent Foundry moves forward, the insights gained from this research lay a robust foundation for achieving sustainable growth across India.
For potential clients considering market research, this project exemplifies how Stratefix can enable data-driven, impactful market entry strategies tailored to the specific nuances of different regional markets.
Contact us today to find out how we can help you achieve excellence.
