1. A Case study on Dominion
Motor Company
Presented By:
- Aniket Harsh
- Arjun R.K
- Deepa Sundaram
- Kumar Abhishek

2. Alternative 1: Selling 10 hp motors at the price
of 7 ½ hp motors
 Effect on the profit from 10 hp motors
0 5 10 15 20 25 30 35 40 45
price of 7 1/2 hp
current price of 10 hp

3. Alternative 1 (Contd.)
 Total operating cost per motor to
customer including electricity charges:
0 500 1000 1500 2000 2500 3000 3500 4000
DMC 10 hp
Competitor 7 1/2 hp

4.  Benefits:
- Counters immediate loss of customers.
- If aggressively marketed, will prevent loss to Dominion.
 Cons:
- Short term solution.
- Increase Operating cost per motor for the client by a
substantial 18%.
- Will lead to eventual if not immediate loss of
customers.
- Reduce company profits.

5. Alternative 2: Modifying 7 ½ motor to
increase torque
 Benefits:
- Will provide a ready product to put forth to meet
competition.
- No additional capital investment.
- Lesser time for development
- Lower operating cost for customer.
 Cons:
- Not conducive to the health of the motor market on
the whole.
- Might lead to safety and performance issues
irreparably damaging brand value and customer trust.
- Reluctance in customers towards using non-
standardized products.

6. Alternative 3: Coming up with a 5 hp motor
that satisfies the torque requirements.
 Total sales considering 60% market capture and 80% of
motors being sold are the new 5hp motors. (Total
market= 1000 motors per year)
( 10 hp motors being sold at 7 1/2 hp price with 50% market capture and 80% motors
being sold are of 10 hp)
0
100000
200000
300000
400000
500000
600000
5 hp 10 hp
Total Sales
Total Cost

7.  Total Cost to customer for purchasing and operating
the 5 hp motor versus competitor’s 7 ½ hp motor.
2300 2400 2500 2600 2700 2800 2900 3000
DMC 5 hp motor
Competitor 7 1/2 hp motor

8.  Benefits:
- Will provide market superiority and increased market
share.
- Satisfied customers.
- Value addition in terms of increased respect for
demonstrating agility and customer need sensitivity.
 Cons:
- Product will not be ready in time to capitalize on the
start of the season boom.
- Loss of customer base in the intervening period.
- Loss of brand respect for being ranked behind
competitors.

9. Alternative 4: Challenging Bridge’s findings
 Benefits:
- If DMC’s testing results prove the fallibility of the
premise for ranking, it will restore customer confidence
and reassure them that they are getting the best of
products.
 Cons:
- Unproductive. Loss in customer base, sales and profits in
all genres of DMC products.

10. Solution (The Fifith Alternative):
 Reduce selling price of 10 hp motors to that of 7 ½ hp motors.
 Simultaneously begin development of 5 hp motor having torque
equivalent to 10 hp motors.
 Assign the marketing team to reach out to rig supervisors and engage
with them to promote the 10 hp motors at reduced selling price and
at the same time spread information regarding 5 hp specialty motor
which will be shortly available.
 Engage top management of Hamilton to present the features of the
motor under development. Offer them a one time introductory price
of 1045$ on pre-booking of the new motor.
 If possible, get backing from NEMA for the performance of the 7 ½ hp
motor and communicate it through proper channels to customers for
reassuring them.
 Parallely conduct testings to challenge the premise of rank awarded. If
successful, it will reaffirm customer belief in DMC products and assure
them that they are buying from the best.