Dupont (A)- Understanding The

Customers Activity Cycle

Case Analysis Report

By-
Arush Bhatnagar
Denzil D Fernandez
Raghav Aggarwal

Submitted To-
Dr. K. Abdul Waheed
 Introduction:
Dupont was founded in 1802 by E.I. DuPont de Nemours, a young French chemist.
The venture was started up in USA. During the year it gained much success with
operating in more than 40 countries with products marked in 150 locations.
It has grown into global company with wide variety of energy, chemical and many
more businesses of operations gaining a remarkable brand name in every area.
It was year 1960 first time marketed product outside USA in Europe.

Case overview:
Dupont is a carpet fiber manufacture which supply raw material to the carpet
manufacturer. The carpet industry supply chain contains of fiber supplier, carpet
manufacturer, wholesaler, distribution center and then retailers.
Dupont has reached a maturity stage in the carpet industry. Later in the year it
introduced the Stainless carpet fiber which requires easy maintenance and high
durability.
Problem in the case were:
• Focusing on functional detailing rather than emotional details
• Emphasizing on price
• Cut throat competition

DuPont’s marketing approach before the change:

They played on volume sales and bulk supply of raw materials to carpet
manufacturers which helped them to have a 2-3 big manufacturer and earn from
them on a regular basis.
Dupont’s marketing approach before change was competitive pricing and quality
product. This helped in a eliminating the competition from the market by giving a
low price to the business customer and high quality which was not provided at that
price by the competitors.
Introducing Stain-master carpet fibres which was a nylon fibre that was innovated
by the firm to attract the European customer who were not keen to buy carpet as a
decorating item or necessity item in their homes.
This fibre was a technology driven product in which no stains or marks would be
left or stay and housemakers can easily just wash or wipe it in their house. This
attracted huge success from both the carpet manufacturer and the end consumers.
It was launched with enormous pull campaign and instore activities where Dupont
placed the carpet and gave demo to the end consumers about the benefit of this
innovation. This helped in increase the sales and gaining brand awareness in the
European market. By doing this activation all over the stores with partnering with
its retailers it gained almost 50% market share in 2years.
Market Research:
1. Carpeting as a low interest item

Research revealed that customers in Europe didn’t like buying carpets.

When buying a home choosing the carpeting came last, curtains furniture hi-
fi equipment and white goods were of top priority. Holidays cars pc’s
clothes were way more exciting. Considered as a low interest item to dispose
of income.

2. Functional rather than emotional experience

Considered as something to protect the floor and walk on rather than

something to enjoy or admire. Availability of alternatives like wood and tiles
and increasing environmental awareness with regards to issues of carpeting.

3. Customers Purchasing Time

Estimated average time spent looking for carpeting was ten weeks; 60% of
the time both husband wife and children joined the search.
Next 52% of customers bought carpet only because the previous one was
worn out.
Average repurchase cycle increased by 12 years.
 4. Lack of product knowledge

As part of research consumers were asked about pre during and post
purchase experiences.
Customers felt insecure about buying carpeting. Product information was
confusing, not helpful and unsure about where to start. Stores were
unpleasantry and depressing. Bad customer service. Lack of trust with the
sales person as the sales person was unsympathetic, uninformed and only
motivation was to close the deal rather than serve customers.
Services add values to end users carpet mills retailers:
 DuPont Hotline

This service would be offered directly to retailers for their customers.

Retailers will give the hotline numbers to their customers. The service will
then be handled by a telemarketing company whose staff would be trained
by DuPont to deal with customer information and advice or to call for
additional help. Financing would be from national communications budgets.

 DuPont Learning

Sophisticated video and work pack for sales people on understanding

customers, knowing products, professional selling skills. Provide Expertise
for sale opportunities and repeat business. Designed separately for different
countries with different cultures languages.

 DuPont Trends

3 times a year each country would publish a newsletter for carpet

manufacturers, wholesalers and retailers about the trends in the industry.
Customers would be asked to contribute editorial material to provide both
local and global trends. Financed by local sales office.
 DuPont Design

DuPont’s Geneva division would provide and fund a design and

development service then based on market trends and customers machinery
the company would work with the mills to assist them with implementation .
DuPont would charge for the carpet fiber but provide the service to any
customer who requested assistance using worldwide computer aided design
and inhouse expertise.

 DuPont Color-Watch

Giving information and consulting rather than forecasting. DuPont

particularly wished the manufacturers to think creatively about color and to
differentiate their carpet offerings.