DOZCO - Promoting Varied Sales
What was the reason that DOOSAN-DAEWOO appointed DOZCO as the national distributor For its excavators and loaders?
The reason behind this being appointed by DOOSAN-DAEWOO as the national distributor, has been primarily the long standing, large scale reputation enjoyed by us for being efficient distributor of components to the construction, earthmoving, and mining industry, beginning from the year 1983 when the company had its origin.
When we were appointed by DOOSAN-DAEWOO as the distributors in November 2004, the company much precisely judged the competence possessed by us both in terms of customer portfolio and customer reach. Based on its evaluation, DOOSAN-DAEWOO found that we have a wide customer base which is supported by a much efficient distribution network, through our warehouses in most parts of the country, for providing components as a service back up support to the equipment users. Outrightly, DOOSAN-DAEWOO decided to cash on this, paving way for us to gain the position of being the national distributors of DOOSANDAEWOO excavators and loaders.
Provide certain details about your warehouses and the facilities possessed by them. How the warehouses really support the wellknit distribution arrangement as claimed by you?
The well spread establishment of our warehouses supports our distribution network. Our warehouses along with wellestablished branches are based in Kolkata, Ahmedabad, Bilaspur, Chennai, Nagpur, Satna, Udaipur, and Vishakapatnam. The warehouses with their wide reach enjoy a commendable market presence and a dedicated client base. Among the warehouses mentioned, Vizag happens to be the mother warehouse. It acts as a pivotal point in terms of importing materials and distributing to other branches and customers as well. The motherwarehouse at Vizag stores an inventory of 23,000 plus components. The warehouse is equipped with modern facilities, a fully functional workshop, and a training centre.
Which are the foreign components manufacturer for whom DOZCO is the authorised distributor and stockists in India? Name couple of original equipment manufacturers (OEM) for whom DOZCO can make components available through import.
DOZCO represents host of components manufacturers from abroad in the country. This consists of ITAL TRACTOR ITM spa. The company is a global expert in making undercarriage products for all type of excavators, crawler cranes, road builders, trenchers, drilling rigs, bucket wheel loaders, and other special purpose machines. The under carriage parts made available through ITAL TRACTOR ITM spa suits to different set of excavators belonging to Telco, Hitachi, L&T/Poclain and Komatsu, BEML,Volvo, DOOSAN-DAEWOO, Caterpillar,Hyundai, and, so on.
This apart, DOZCO also stores ground engaging tools and wear parts from Italricambi. The product line of Italricambri includes, forged tips and teeth, forged adapters, cutting edges, and end bits, customer design cast parts. Italricambi’s wide range of ground engaging and wear parts can be used for Caterpillar, Komatsu, Fiat –Hitachi, Esco, Bofors, Liebherr, Cnh group, BEML, and JCB.
DOZCO also distributes undercarriage parts, comprising track chains, track roller and segments, engine parts and forging parts belonging to DCF, South Korea. DCF’s components can again much be used in the original equipment mentioned.
Other products distributed by DOZCO comprises trackand carrier rollers, from Taiheiyo Seiki K.K, Japan, sealing systems for mining equipment from Hallite Seals U.K., hydraulic, swing motors and pump parts from Tong Myung Korea, fasteners from Ajax fasteners, Korea. In addition, DOZCO also stocks and distributes slew bearings from Shin –IL, Korea, floating seals from Officine Meccaniche Italy and engine parts from Federal Mogul, USA.
But most importantly, DOZCO has its repute for being distributors of rock breakers and parts belonging to Soosan Heavy Industries, Korea and also for being the authorised distributors of bulldozers and other construction equipment belonging to Shantui Construction Machinery Co. Shantui is the largest manufacturer and exporter of construction machinery such as bulldozers and compactors in China.
How are DOOSAN-DAEWOO excavators and loaders imported by DOZCO are competitive in their market positioning?
I would mention that the cost of the excavators, those belonging to DOOSAN-DAEWOO and its counterparts may be the same. But definitely the cost of components is cheaper for the DOOSAN-DAEWOO excavators. This provides the equipment with the desired operational efficiency. DOOSAN-DAEWOO excavators are fuel efficient, Euro-3 compliant. Besides, the excavators have computerized controls that provide operational efficiency and thereby competitive strength to the product in terms of market positioning.
Moreover, DOOSAN-DAEWOO excavators are able to derive their competitive strength on the basis of their components. This is as because, the components are being directly sourced from Korea both pertaining to the 20, 30, 40, and 50 tonnes excavators. Furthermore, attachments made available to the excavators depending on the customised requirements of the clients as that for coal mining, granite mining, or construction. This also by and large provides added competitive strength to the DOOSAN-DAEWOO excavators and better market positioning.
What is the range of DOOSAN-DAEWOO excavators that DOZCO presently engaged in distributing in the country? What is the sales and marketing strategy that has been adapted by the company to promote the distribution of the excavators? Is the company targeting volume or niche markets?
At present, we are distributing excavators belonging to the 20 and 30 tonnes segment. This is being carried out in sync with the market demand scenario, which is seeing requirement of excavators getting graduated from 6–8 tonnes to 10–12 tonnes and even much further. The distribution of 20–30 ton excavator is being undertaken at par with the strategy adapted by our counterparts synchronized with the strategy towards promoting sales of higher capacity excavators, in tune with market demand.
At present, for promoting the products—we are not targeting volume markets in a large way but niche markets. Though, of course, we are targeting the construction market by making goals of our sales aimed at small and medium contractors. But largely, we are targeting the user segments who would operate the equipment under much severe conditions as for example, granite, marble, iron ore, and coal mining industry. But nevertheless, construction industry would be our focus area at par with mining industry.
To promote larger sales of the excavators we are in the process of opening DOZCO branches in other parts of the country. Simultaneously, we are looking for tie-ups with dealers and service agents for promoting the products. Tie ups is being carried out in Hyderabad, Pune, Delhi, and Bhuvaneshwar. In addition to this, we are also looking for possible tie ups with financial companies and banks to finance the product so as to ensure its larger sales. With diverse promotional strategy adapted, we have sold 120 units so far in the country.
NBM&CW May 2006
