S SPIDEY SENSE

B2B MARKETING
CASE STUDY
SIGMA TELECOM
COMPANY
 TEAM MEMBERS

Dang Khoi Anh Nhu Chi Linh

Thanh Thuy Huong Nhi Minh Anh 1

S SPIDEY SENSE

COMPANY PROFILE
public limited company
one of the largest producers of
EPABX systems in India
the market leader with highest
market share in the EPABX
market.

2
S SPIDEY SENSE

WHAT STEPS WOULD YOU

SUGGEST TO THE COMPANY
MANAGEMENT FOR
REVERSING THE
DOWNWARD TREND IN THE
PROFITS?

3
S SPIDEY SENSE
STEP
The Indian national elections in 1996 did not
provide any clear mandate to any single
political party. This led to the formation of a
coalition government.

This factor, coupled with the imposition of

financial sanctions by the US (as a result of
Pokhran nuclear tests) had resulted in
reduction of investment plans for India.

With this background, the value of Indian rupee

was continuously eroding.

Govt. sector is risky deal so the company

should focus on new segments.

Should be maintain floor price

and selling price.

4
S SPIDEY SENSE STEP
After-sales service support was a solid influencing factor, overshadowing
the pricing factor. The statistic (55.8%) took more than a half shows that
people really care about the Service support. Moreover, this is an EPABX
company so telemarketing is the most suitable method to interact with
customers.
Inadequate telecom infrastructure, that is, inability of Department of
Telecommunication (DOT) and private basic service providers to release

as expected.
as many Direct Electronic Lines (DELs)

So Telemarketing should be invested in and enforced as a part of

after-sale support and more than one Service center should be open
in large areas.to increase the shares of usage as well as profit.

5
S SPIDEY SENSE STEP
The company strategy included heavy investment in
infrastructure and manpower for Research and
Development (R&D). The R&D activities included
harnessing the foreign technologies to make them
suitable for the Indian environment, plug-on feature
development, new product design, and switching
software development. Furthermore, the two
manufacturing units in Mumbai and Bangalore were
equipped with advanced manufacturing facilities and
ISO certified.

Another reason is that technology and performance are

the two factors that influence the Buyers of EPABX most
according to exhibit 3, textbook.

Focus on new product development

6
S SPIDEY SENSE

STEP
Because the promotional activities were
planned only at the company’s corporate
office at Mumbai.

The promotional elements included

advertising, trade shows and personal selling
through the company’s sales force. A central
advertising agency was contracted to evolve a
suitable advertising message and to release
advertisements in selected business
magazines and trade journals.

Should enhance the planning team around

India to gain more new promotional activities.

7
S SPIDEY SENSE

STEP
The development of EPABX came about
as a result of increasing needs for
telephones, and demand for reducing
the logistics cost associated with
adding new telephone lines.

One advantage is The EPABX enables

organizations to share the available
telephone lines between a number of
users.

New distribution channel should

be introduced.

8
S SPIDEY SENSE
STEP
The company sold its products through its sales force. It
had four regional offices in the four metros which covered
northern, eastern, western, and southern zones of India,
respectively.

With the company growth, each of the regional offices had

several branch offices and service centres for a wider and
faster reach to the customers. This well-spread network of
offices and service centres ensured prompt customer
service.

The company invested heavily on the in-house training

infrastructure and had its own residential training centre
near Mumbai

Training can be outsourced

irrespective of in-house training
9
W WARDIERE INC.

2. WHICH SEGMENTS SHOULD

THE COMPANY TARGET AND
WHAT KIND OF TARGET MARKET
STRATEGY SHOULD IT FOLLOW
TO MAINTAIN ITS LEADERSHIP
POSITION?

10
CONTEXT SEGMENTS STRATEGY
downward trend in High-end concentrated
the net profits market segment marketing
growing competition strategy
in the higher and (Focusing all the
marketing efforts on a
middle end of the
single or relatively few,
market carefully defined-
segments) (Havaldar,
2014, p. 182)

11
REASONS WHY WE CHOOSE HIGH-END MARKET
Sigma Telecom Company has been one of the major players in this market for a long time
and was one of the largest producers of EPABX (Electronic Private Automatic Branch
Exchange) systems in India and had developed a reputation for high quality telecom
equipment. Besides, Sigma Telecom was the market leader with highest market share in the
EPABX market in India. Therefore, it has been known for providing high-quality products,
especially in the high-end market and it can pursue this market with no furthur problems.
Additionally, despite the slowdown of the Indian economy, it is proved (in the case of
recession), the luxury (high-end) market still grows. For instance, The luxury market is
boosting to new record sales of €353bn globally in spite of all recessions, wars or new Covid-
19 lockdowns in China (Junkersdorf, 2022). Or industry bellwether Hermes International — the
French design house that sells $10,000 handbags — saw sales climb 24% to $3.07 billion in
the third quarter, despite raising prices by about 4% so far this year (Rascouet, 2022).
Therefore, when Sigma Telecom Company focuses on the high-end market, in can
significantly profit from this segment despite the current economic issues.
The current low-end and middle-end segment were affected negatively by Inadequate
telecom infrastructure according to the case. 12
 REASONS WHY WE CHOOSE CONCENTRATED STRATEGY

Sigma Telecom Company has long been a major player in high-end market, now employing
the concentrated strategy that can bring some benefits:
reduced resources and this reduction in the number of needed resources can lead to a
higher chance of more effective marketing and advertising for what the company has to
offer (B, 2022) => it can save costs during the slowdown in economy and focus on the
segment more effectively
Sigma Telecom can become an expert in this field by concentrated strategy and outpace
the other competitors in this high-end market (B, 2022) => its reputation and share of
business increases in the segment (Havaldar, 2014, p. 182).
We do not choose the differentiated marketing strategy because "it is difficult to say whether
firms adopting this strategy would generally make higher profits or not" (Havaldar, 2014, p.
182) and Sigma Telecom Company also suffered from the downward trend in net profits
which might significantly impact the company's performance.
THEREFORE, to maintain the leader position in the market and improve the financial issues,
Sigma Telecom Company should adopt concentrated strategy and focus on high-end
market segment for those above-mentioned reasons.
13
DOWNWARD TREND IN NET PROFITS OF SIGMA TELECOM COMPANY
REFERENCES
1. B. (2022, February 17). What is concentrated marketing? How to use this
strategy? Rock Content. https://rockcontent.com/blog/concentrated-
marketing/
2. Havaldar, K. K. (2014). Business marketing: Text and cases.
3. Junkersdorf, T. (2022, November 16). New 'roaring 20s' for luxury sector.
LinkedIn. Retrieved February 7, 2023, from
https://www.linkedin.com/news/story/new-roaring-20s-for-luxury-
sector-6081754/
4. Rascouet, A. (2022, October 20). Bloomberg. Bloomberg - Are you a robot?.
https://www.bloomberg.com/news/articles/2022-10-20/hermes-sales-
soar-as-chinese-consumers-appetite-rebounds

14
Thank you!
From Spidey Sense