Roscoe Non Destructive

Testing
B2B Marketing Case Study

Presented By :
Chitra Chandran [MS08A014]
Sumeet Duggal [MS08A052]
Tuhin Adhikary [MS08A057]
Roscoe Non Destructive Testing 13.09.2009
Varun Kumar [MS08A059]
Vikas Bansal [MS08A061]
01
 AGENDA

• NDT Industry – An Overview

• Roscoe Nondestructive Testing Inc. – An Overview
• Roscoe’s Problems
• Segmenting the Customers
• Identifying Key Personnel
• Roscoe’s Value Proposition
• Roscoe’s Market Research Approach
• Our Recommendations

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 1 NDT Industry – An Overview [1/2]

 NDT involves examination of materials to discover :

Microscopic cracks
Corrosion
Malformation

using X-rays, Ultrasonics, Electrical Eddy Currents, etc.

 Applications of NDT can be found in following industries :
Construction Manufacturing Automotives
Industrial Plants Pipelines Naval Warships
Railways Aviation Medical Imaging

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 1 NDT Industry – An Overview [2/2]

Mom and Pop Nationwide

Laboratories
• Few Customers
• Single Type of
Inspection
• Low Cost Providers
• Low Control over
Pricing & Delivery
Specialty Firms Regional Firms
Companies
• Country Wide • Narrow Market • Medium Level of
Presence Segments Operations
• Name Recognition • Latest Equipments • Upto 150
• Large No. of • Highly Skilled Technicians
Inspection Services Technicians • Lack Brand Name
• Customers from • Highly Profitable • Resource-wise
Many Industries Capable for Large
Projects

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 2 Roscoe NDT Inc. – An Overview
 Founded by  Hans Norregaard  ‘Roscoe NDT’ again
Hans Norregaard and Grover Porter encountered a
in Louisiana as a together bought downturn in both
regional firm ‘Roscoe NDT’ again revenues & customers

1973 1980 1984 1987 1990

 ‘Roscoe NDT’  Hans Norregaard

sold to NIS for retired and Grover
$1.75 million Porter became
President
 Company did
well for 4 years  ‘Roscoe NDT’ was
but corporate back on track, but only
issues surfaced for the time being

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 3 Roscoe’s Problems

 ‘Regional’ presence  Overdependence on Pulp & Paper Ind.

 Slowdown in the Pulp & Paper Industry  Cost Cutting
 Low Cost bids from other players  Lost Contracts !
 Different Client Representative  Different Response !
Lucy Boyle [paperwork] Jim Bulgrin [eye for detail]
Bob Kapala [supervision] Billy Dunlap [‘baby’ like care]
George Mc Donald [cost justification]

 Workforce  Lack of Coordination and Courtesy

 Service Quality  Customer Satisfaction + Value Proposition
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 4 Segmenting the Customers
Cost Controllers
Plant Managers [George Mc Donald] Top Management

Work Inspectors

DECISION MAKERS
NDT Department [Bob Kapala] Top Management
INFLUENCERS

Technocrats
Engg. Services Department [Jim Bulgrin] Top Management

Boiler Cajolers
Mill Supervisors [Billy Dunlap] Top Management

Purchase Controllers
Purchasing Representative [Lucy Boyle] Top Management

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 6 Roscoe’s Value Proposition : Existing

Roscoe offers an efficient & high quality inspection

service to its customers at an affordable price 

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 6 Roscoe’s Value Proposition : Required
Cost • Core product/service at low price
Controllers • Involve only low-medium skilled technicians

Work • Make service a high involvement process

Inspectors • Sell ‘high quality service’ and ‘its importance’

• Communicate every detail of service quality

Technocrats • Highlight quality, skills and experience levels of technicians

Boiler • Convey trust and confidence

Cajolers • Sell ‘politeness’ and ‘courteousness’

Purchase • Offer personalized care

Controllers • Make accounting/paper work a collaborating activity

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 7 Roscoe’s Market Research Approach [1/4]

What it is…

 Random Mails [No Sampling]

 Low Sample Size [19.88%] Sent : 357

 QIP : Training + Bonus + Surveys Received : 82

 Without looking deeply into the

findings, Roscoe management believed Meaningful : 71

that QIP was more successful than

they expected it to be !

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 7 Roscoe’s Market Research Approach [2/4]

What Roscoe missed out…

 High Operational Excellence [Tangible Benefit] : OK
– But is it being communicated to the customer ? Intangibles?
 Courtesy of Technicians [26.5%]
 Willingness to make an extra effort [32.3%]
 Conveys trust & confidence [33.7%]
 Degree of individualized attention [35.3%]

 Accounting Department :
 Promptness of billing [27.5%]
 Willingness to help [31.7%]

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 7 Roscoe’s Market Research Approach [3/4]

What Roscoe missed out…

 Overall Performance : Misleading !
– Delivering the promised service is not enough !
– Are you delivering what customers want, cost effectively?
 Variety of services that meet your need [23.0%]
 Overall service value for your money [11.5%]

 In fact, before the QIP implementation, Variety of services

that met customers needs was better [35.7%]

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 7 Roscoe’s Market Research Approach [4/4]

Questions Roscoe management failed to ask…

 Do all customers require increase in quality of service?

 Will they pay more if Service Quality is increased?
 Will highly satisfied customers be highly profitable as well?
 What factors affect profitability of customers?
 Will reducing the prices be a good move for all customers?
 One-size-fits-all approach would take Roscoe how far?
 Is Roscoe providing customers what it has OR what they want?

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 8 Our Recommendations [1/4]

 Segment the customers into following categories :

 Programmed Buyers  Transactional Buyers
 Relationship Buyers  Bargain Hunters

High
A B Value Axis

PRICE 

C D Market
Low
Power Axis

Low COST TO SERVE  High

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 8 Our Recommendations [2/4]

 ‘QIPS Data collection’ should be a high involvement process

 Repeat the analysis of QIP Survey for each of these segments
 Look to find what each segment of customers want
 Develop a unique value proposition for each of the segments
 Identify the key decision makers & influencers. Act on them !
 Train both Sales/Service team & Accounts team accordingly
 Introduce ‘Bonus Points’ for exhibiting superior soft skills
 Bring collaboration between sales/service & accounts team

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 8 Our Recommendations [3/4]

 Increase involvement with Programmed Buyers. Monitor the

Results and migrate them to Relationship Buyers eventually.
 Appoint ‘Key Account Managers’ for Relationship Buyers.
 Add incremental value for Transactional Buyers to try and
bring them out of habit of making price based decisions.
 Unless Bargain Hunters are of strategic importance, shove
them off.
 Implement Demand Based Pricing to gain price advantage.

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 8 Our Recommendations [4/4]

 For increasing Customer Satisfaction, selectively choose areas :

Need Roscoe’s
Low Satisfaction High Satisfaction
Attention Importance  Strength
High Importance High Importance

Roscoe’s
Choices
Low Satisfaction High Satisfaction
Low Wasteful
Low Importance Low Importance
Priority Activity

Satisfaction 
 Improve following dimensions of SERVQUAL :
Responsiveness Assurance
 Evaluate other possible NDT businesses to mitigate risk.

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 Questions

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