16 November 2019

Table of Contents for Post Excon 2017





Interaction- Shalabh Chaturvedi, Head of Marketing, Case India

Pro Series designed keeping in mind ‘Buyer is King’

 

The EX Series BHL has had a good reception in the market, to the extent that in EXCON, CASE rolled out a more updated version. In an exclusive interview to CONSTRUCTION OPPORTUNITIES, SHALABH CHATURVEDI, HEAD of MARKETING, CASE INDIA, explains the minute details and market research that went into designing and manufacturing of their latest machines, and discusses tough Buyer metrics in the Indian market.

 

 

Your are facing clients on the front-end, big ticket buyers, small ticket buyers, etc. How fastidious is the Indian Buyer, and what are the Metrics on Cost/Quality equations.

 

From an Indian customer’s perspective, India is a very price sensitive market. The main reason for it is that in terms of features, Indian customers are extremely discerning, they want to pay only for what they are getting. If they don’t value some  features, they won’t be willing to pay for it. At the same time, if you look at all the product segments, the market leaders in India are all the highest priced products. Whether it’s a loader backhoe, or a vibratory compactor in our case, or a motor grader, all the market leaders are not the price leaders, but they are giving a much better quality. I think it’s a matter of level of awareness. In the Indian market so far, technology has not penetrated much. But with the advent of internet and the mobile phones customers have the information at their finger tips now. For buying 30,000 rupees mobile phones they do research on the net, so imagine for a `25 lakh machine, they are bound to do more research. This wasn’t the case ten years back. They had a herd mentality and were just following the early movers. Whatever their neighbours were buying they would just go blindly with that. But now with greater level of awareness what we are seeing now is that customer’s overall understanding of TCO has also improved. So when they buy a machine they check about the resale value, they talk about fuel e_ ciency, cost of maintenance, they see if the overall package makes sense, and it has to be economical. If that is economical they would go for it irrespective of the sticker price.

 

 

 

A feedback on your PRO Series BHL, how is it received in the market?

 

The PRO Series of loader backhoes is created with pure market research and with ‘voice of customers’ capturing exercise which we were doing for the last two years and were taking care of smallsmall things. As a motto, CASE Construction takes pride in being ‘Experts for the real world.’ And when we say the real world, we mean ‘we want to take care of the latent needs of the customers which are not so very evident when you look at the global Spec Sheets of global OEMs. The PRO Series is a specific manifestation of those feedbacks we have got. For example in India, the moment the operator gets into the cabin he takes of his shirt and operates in a vest. If you go around, you will not find a hook for hanging the shirt in any other cabin, but  you will find it in the PRO Series. In most parts of the world the operator works for 6-8 hours max, in India he goes on till 12-14 hours a day. If they keep working for such long hours they start straining their arms, biceps, and feet. So the PRO Series is designed in such a way that the levers come closer to the operator seat, which is more comfortable and the effort required to operate the lever is significantly reduced due to some spring action there. Another thing specific to Indian market is usually the operator does not drive the machine alone, there is a helper who sits by his side, sometimes even two. If an operator is spending 14 hours a day in his cabin, it becomes like another home to him. So our loader backhoes are designed in such way that it’s an apartment for him. So this cabin is the largest cabin on any loader backhoe in India, perhaps even in the world. There is also a storage space below the seat so the operator can store his tools, his RC book, clothes, documents which he needs to carry, and so there is adequate storage space available for that as well. There are nearly 20 innovations incorporated in these machines.

 

 

 

To what extent do you agree with ‘Buyer is King’ in Indian market?

 

I agree with that 100 per cent, as I was just mentioning in the previous question, that the PRO Series has been designed keeping in mind the Buyer, thinking that the ‘Buyer is King,’ and that’s how our products are developed. Just to add a _ nal comment, “We at CASE Construction take a lot of care about operator’s health and safety,” and that is perhaps one of the reasons why we are in business for 175 years.

 

 

How matured is the Indian market, is it tough to break into? 

 

Indian market is one of the toughest markets in the world because of the Cost/Quality Metrics which the Indian customers apply. Also localisation is becoming more and more key factor if you really have to break into the Indian market. Price control is eventually driven by cost control, that’s how you are going to realise that. So Indian market is tough, but it is also growing. It has not reached the matured market stage but you can see that a lot of  growth is coming from first time buyers and first time users. 50 per cent of the market is still first time buyers and first time users, especially in the loader backhoe segment. Whereas, if you go in the mature markets, the _ rst time buyers would be less than ten percent of the market. So that way Indian market is still in the growth phase.

 

 

What is the general demand outlook for the road sector in next couple of years?

 

It could grow at a CAGR of nearly 18 to 20 per cent.

 

 

Where do you see CASE CAGR?

 

We aspire to grow faster than the industry, which we have done last year and also this year. Therefore, that is also reffective of the market shares which have improved across the board.

 

 

 

Your feedback on EXCON 2017, has it met your expectations.

 

EXCON ’17 has met our expectations for sure. The level of excitement which is there, in my memory it is comparable to what I saw in 2011, when the industry was at its peak. And this year we are most likely to surpass 2011 numbers. As an overall industry, I think we should be ending close to 75,000 to 80,000 units as a whole industry together. So very good times ahead and most likely next year is likely to be a new peak for the industry. EXCON is representative of that, there were lot of footfalls, lot of interests from customers, from financiers as well as from vendors. I went to the indoor stalls and was so amazed to find the quality of the stalls improving so much, so many numbers of vendors are there now. There are four hangars completely full.




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