The analysis of a new entry into the industrial market

Abstract

The use of random co-polymer polypropylene (PP-R) in hot water sanitary systems has grown substantially in Europe over the last five years. It is expected that the numerous benefits of PP-r over other materials will help this trend continue, and expand beyond Europe. Ongoing work on standards and specifications promises to further strengthen PP-r pipes' competitiveness. Therefore, the performance of such a new product is worth investigation. Apart from the PP pipe industry, analyzing the overall performance of the whole sanitary pipe sector (Steel and PP pipe) is as important in order to understand major differences. The aim of this study is to analyze the development of a new entry in the Turkish industrial market at a Turkish company that operates as the six largest producer of longitudinally welded steel pipes in Europe. Throughout this study, the market development of PP-r pipes in Europe and in Turkey, together with the various success factors that have contributed to the substitution of traditional non-plastic pipe solutions with PP-R systems in sanitary tap water installations are also introduced. Afterwards, the steps that necessitate a successful entry from the design to launch and the areas where the company shortfall are identified, a new marketing strategy for a successful penetration is developed, and necessary corrections are made for a better competitive action. Finally, in the conclusion part, the internal (company specific) factors that delayed the success of the new product is conveyed.