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MARKET ASSESSMENT FOR INDIAN DEFENSE INDUSTRY

The countrys strong economic growth, combined with the threat of terrorism and volatile relationships with neighboring countries, will create a range of business opportunities in the Indian defense industry. The countrys domestic defense industry currently only meets 30% of the countrys material requirements. India aims to enhance its domestic capabilities, in order that 70% of its requirements are met by domestic enterprises.

Entering the market; the factors:


1. Bargaining power of suppliers: low
At the lower end of the Indian defense industry, which comprises components and subassemblies, the market is highly fragmented, resulting in low bargaining power. At present, there are over 5,000 Indian suppliers, which account for nearly 25% of the public sectors components and subassemblies requirements. The defense offset policy, which is designed to encourage domestic production, is expected to generate huge opportunity for the small- and medium-sized enterprises (SMEs). With relatively low entry barriers in terms of regulations and capability, a higher number of private companies are expected to enter the industry. This is likely to further reduce the bargaining power of suppliers.

2. Bargaining power of buyer: high


The Ministry of Defense is the sole buyer of military equipment in India and, as such, enjoys a monopoly on the industry, endowing the nation with a high bargaining power.

3. Barrier to entry: medium


At the lesser advanced technology end, there is a medium entry barrier, with relatively low levels of financial commitment, technological expertise and regulations

4. Intensity of rivalry: high


The intensity of rivalry in the Indian defense sector is high due to the following factors: Too many firms chasing too few defense deals The low level of product differentiation, especially in the low and mid defense product markets

5. Threat of substitution: medium to high


Firstly, the substitution threat within an individual category is high, with a range of products available. Switching to another product is primarily driven by features. Secondly, the expected growth in the Indian defense budget is set to increase the threat of substitution, with the armed forces opting for more sophisticated military hardware across different types of products.

In light of proliferation of new technologies and new products, Defense Industry is bombarded with choices and has a difficult time differentiating and selecting the best of many alternatives. Meanwhile, many small companies fighting for recognition in this sea of possibilities can't understand why their innovative products aren't selling well. The solution to both groups problems is POSITIONING: creating a desired image for a company and its products within a chosen user segment. The positioning process further helps high-tech manufacturers deal with such problems as limited product life cycles, limited lead times before competitors respond with equal or greater improvements, as well as the desire to control new technologies introduced during a short time period or to a particular target market. The concept is simple - to be successful, a company must differentiate itself and its products from all others, thus obtaining a unique position in the marketplace A company can differentiate its products from its competitors' based on such factors as technology, target audience, target application, price, quality, or distribution channels.

MARKET POSITIONING OF ALLIGATOR DESIGNS We offer the broadest line of products that meet the requirements of many industries. We take advantage of economies of scale and offer the lowest price. We have the lowest defect rates and most accurate specs of all our competitors and thus offer the highest quality. Niche player in providing deployable solutions in rugged solutions.

THE DEFENSE DISPLAY MARKET


A lot of people believe that LCD monitors are flimsy but this is not true as rugged LCD display panels are being manufactured these days. These rugged LCD display panels can be easily installed in places where it could be exposed to dust or liquids. To make industrial display panels more durable, they are mounted in a rack made of steel or aluminum. These can be then mounted on equipment racks. There are certain industrial display panels which are manufactured for outdoor conditions. Extreme weather conditions do not affect these types of LCD panels.

The military display market is analyzed in terms of all fully electronic and many electromechanical displays used on combat platforms across all DOD Services. The military market for displays is defined by parameters such as active area, bezel-to-bezel measurement and technology. Other characteristics such as luminance, contrast ratio, gray levels, resolution, viewing angle, color, video capability, and night vision imaging system compatibility are noted.
Defense display sizes range from 0.082 in.2 to 10,625 in.2 in 18 technologies, mostly flat panel display (FPD) technologies based on thin-film transistor active matrix liquid crystal displays (TFT AM LCD), with cathode ray tube (CRT) second and dropping rapidly. The Defense display market will continue to grow and evolve over the years.

Given the dwindling industrial base for CRT and EM technologies, together with ever-increasing sustainment costs, the current inventory of CRT and EM displays will likely be the first to see technology upgrades. This represents the existing Defense market for these to be tapped by TFT LCD and AMLCD technologies. Opportunity for Alligator Designs: We offer rugged AMLCD displaysFeatures: 6.4" to 24" displays, active matrix color, high resolution, sun readable option, lightweight packaging, MIL-STD ruggedisation for airborne, ship board and ground mobile applications Why should you choose us? The company has extensive knowledge of system integration, functionality check, testing and final inspection. This enables it to provide complete packaged system integrated services, which in turn saves customer's time and money and are cost-effective to manufacture.

Sample online advertising

Alligator Designs Premieres Rugged 21.3 LCD Display


XYZ show, Bangalore, January 15th, 2013 -- ALLIGATOR DESIGNS introduces a 21.3 Rugged LCD Display Range at this years XYZ Show in Bangalore. With the introduction of the MV21 ALLIGATOR DESIGNS can now provide both the aerospace and defense market with a full range of rugged flat panel displays, i.e. ranging from 6.4inch to 21.3 inch, at various ruggedization levels. ALLIGATOR DESIGNS s MV21 21.3 flat panel, which is the largest commercially available rugged LCD display, can be used in various applications, from airborne, surface ship, submarine, mobile ground vehicle to shelter environments. The MV21 is a light-weight AM color LCD. The integration of the LCD components and the display electronics in a rugged package make the unit ideal for utilization in difficult environments. The MV21 provides the user with a large image surface and a viewing angle of at least 60 degrees in all directions. The standard full-color MV21 display - with its array of over 16 million of colors - has a contrast ratio and anti-reflective technology, which allows the display to be used in bright environments. Resolution of this MV21 range product is 1600X1200, whereas the display is also capable of accepting graphic signals from VGA onwards. Moreover, special attention has been paid to weight and power consumption.

INDUSTRIAL ADVERTISING
Industrial advertising plays a crucial role in creating awareness about the marketer's offerings among its target customers and in improving the sales efficiency. It also provides an impetus to the sales personnel by increasing the effectiveness of their selling activities. It also provides support to channel members like distributors and intermediaries. Advertising Planning Process: Setting up of advertising objectives Setting budgets depending on the management's capabilities and financial position Message selection to fulfill the objectives of advertising, apart from creating an impact on target customers: Brand imaging and positioning Development of media strategy: Decisions regarding media scheduling and media buying Evaluation of the effectiveness of advertising: pre-testing, post-testing, and by measuring sales enquiries and responses.

Sales Promotion: to make specific appeals to the target customers. Trade shows, exhibitions and fairs: Alligator Designs should arrange for a month long display of Rugged Display in Bangalore and New Delhi in prominent exhibition grounds Sponsorship of events Catalogs Technical reports Promotional Samples Online presence: Through a new website or e-commerce sites, it should talk about the highlights of Alligator Designs offer for the deal without going into great deal of technicalities and financials. Without mentioning it explicitly, the website should bring out that past successful deals with other companies, and show that Alligator Designs offers a partnership for a lifetime

Public Relations & Publicity: directed at present and prospective customers, suppliers, channel members, shareholders, employees and trade unions, local communities, government and other influential groups. Ex defence officers should be hired to give opinion and publicity. National and regional magazines and Newspapers should be selected to ensure that Alligator Designss case is published in them.

Needless to say, the exhibition should be covered explicitly by tie up with media and most of the publicity should be generated through public relations and not advertisements. All the clippings of the exhibition should be displayed on its website and actively advertised on internet on Facebook, You tube etc.

COMPETITION: There is a strong possibility of the other Companies to come up with similar marketing campaigns. Alligator Designs should plan the campaign discreetly so that it can have a free run of as many days as possible before other Companies come up with their campaigns. Alligator Designs should adequately plan for any negative advertisement campaigns which might come up. Equally important is to ensure that the planned marketing strategy till the exhibition should be successfully implemented lest the government of India comes up with a directive prohibiting advertisements by parties to the defense deals.