Competitive-strength evaluation of corobrick in the face brick market

Abstract

The main purpose of the study is to determine strategies for retaining valuable current customers and acquiring attractive new customers for Corobrik; therefore, the problem to be investigated is the reason for Corobrik’s inability to gain significant market share in the brick market over the last five years. Although there has been tremendous growth in the building industry, Corobrik has not been able to fully capitalise on the situation despite increasing its own capacity. A competitive-strength evaluation will form the basis of this study in order to determine customer preferences, as well as competitor performance relating to these preferences. The study will be limited to the Gauteng Province owing to the enormous number of customers in South Africa as well as to time constraints. The market in Gauteng is substantial enough to yield a fair representation of what is to be achieved with the study. A questionnaire will be distributed to Architects, Contractors and Distributors, which represent the different market segments, and the data will be collected by means of telephonic interviews. McDonald & Dunbar (2004) expounded on a method of competitive-strength evaluation, entailing a method of understanding the customers’ preferences and understanding their views of competitor performance in relation to the customers' own preferences. Based on this method, a questionnaire was drafted which will be distributed to role players in the market in order to collect the required data. This research study can be seen as exploratory, since future research tasks could be discovered during the study. This study will be a ‘snapshot in time’ because of time constraints, and could possibly yield different results if repeated at any other time. The questionnaire is such that the data could be analysed and certain propositions could be compared with the ratings. Therefore, a semi-quantitative study is possible, i.e. people’s perceptions can be measured. It is important that the study be done in a ‘field setting’ to reflect what would occur under actual conditions. In addition, exactly the same questionnaire was used for all respondents, minimising the possibility of the respondents or the researcher manipulating the ratings reflected in the survey. The main findings revealed that sales to Distributors and Contractors constitute approximately 85 per cent of the total product sales of Corobrik and that Distributors and Contractors perceived Corobrik as expensive, Price being rated as their most important DBC. Architects rated Quality and Aesthetics as the most important DBCs and they rated Corobrik the best performer in these categories. This finding implies that Corobrik manages to satisfy Architects’ most important needs; however, Price was also Corobrik’s worst performing DBC in terms of the Architect ratings. Corobrik does satisfy the needs of Architects fairly well; however, this study was limited to the brick industry and did not attempt to compare face bricks with rival materials such as glass, aluminium, wood, plaster and paint and others. Consequently, Corobrik’s performance was not compared with that of the manufacturers of these rival products with regard to the relevant DBCs. It is, therefore, recommended that such a study be conducted in order to determine how well Corobrik performs in comparison with the rival companies. In addition, Corobrik should consider a marketing objective of developing new products for existing market segments (Architects), i.e. products that are able to compete with glass, aluminium and other rival materials, or that could even be used to compliment one another. This initiative could lead to increased market share, not only in the brick market but also in the bigger construction market. It appears that Corobrik has to date followed the marketing strategy of supplying existing products to new segments such as the residential market, and the researcher’s impression is that this new segment does not really want the product because of its affordability. Therefore, Corobrik needs to consider developing new products for the relatively new residential market, but with the emphasis on affordability.