The client was a prominent construction material manufacturer in India and was and looking to leverage its strong channel base by entering the CPVC market as a result of UC Strategy’s recommendation of this opportunity in an earlier project. The client, therefore, needed to assess the piping market in the country, with a specific focus on the residential & commercial real estate segments.
The engagement answered questions critical to the client’s entry decision into the market, including market size and expected growth, key customer segments, their usage patterns and adoption rates of CPVC piping, as well as identification of trends that would impact adoption and growth in the coming years.
Our strategy was based on the identification of the key substitute products and assessing the adoption of CPVC as compared to these products, understanding the specific features of the product that was currently in use by the target segment and the variation of these features based on application. Reasons for adoption and preference of CPVC over other products were examined with a specific focus on functional advantages of CPVC over its substitutes. Key influencers to the decision of CPVC usage were taken in to account in order to understand important entities in the ecosystem. Margins across substitutes and entities in the value chain were considered in order to understand revenue potential. Adoption rates across key tier I and tier II cities were estimated in order to be able to develop a strategic locational focus.
Key competitors were identified and operational issues such as availability of raw materials were taken into consideration in order to determine the level of entry barriers in the market. Trends material to market growth and margins were understood and market size was established.