Power Tools Industry

Industrial Marketing

MBA- M&S

Section A

Vivek Upadhyay

Power tools

• A power tool is a tool powered by an electric motor.• They are used in industry, in construction, and around the

house for – Drilling, – Cutting,– Shaping, – Driving, – Sanding,– Grinding, – Polishing, – Painting, and – Heating.

OVERVIEW OF INDIAN POWER TOOLS MARKET

• India has a competitive advantage in the Power tool industry compared to other countries because of easy availability of raw materials, entrepreneurship skills and skilled labor at competitive wages.

• The power tool industry as a whole is witnessing a shift of manufacturing base from traditional manufacturing countries in Europe and Taiwan to the developing world and this is a good sign for India to benefit.

• There has been an average growth of 40% per annum of the power tool market in India for the last 7 years.

Power tool industry

• In the premium power tool segment, the leading manufacturers in India are :– Hilti,– Bosch,– DeWALT,– Hitachi,– Makita.

CONSUMPTION PATTERN OF POWER TOOLS

• This depends on the following factors: • Price.• Supply chain dynamics.• Use of tools as per the manufacturing industry.• Product quality, design and safety.• Service.• Environmental factors.

MARKET SEGMENTATION

• Generally speaking, power tools products are applied in the following market segments:

• Professionals (e.g. carpenters, plumbers, craftsmen, toolmakers etc).

• Industries- Automobile, construction, electronics etc.

• Households (DIY i.e. Do It Yourself).

POWER TOOLS MARKET

Distribution follow by Bosch, Makita, KPT & Hitachi

Company A warehouse

Distributer

Retailer

Sub- Retailer

Customer

Distribution follow by Hilti

Company B warehouse

End Customer

Distribution follow by DeWALT

Dealer

Retailers

End User

Company C warehouse

Sub-retailers