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BUSINESS TO BUSINESS MARKETING

Case Discussion: Dominion Motors And Controls

Submitted to Prof. Rahul R as part of the academic fulfilments required for the completion of
the degree of MBA for the batch of 2024-2026

Submitted By

Group - 1

Diya Mondal – 2410195

Anushri Kadam – 2410208

Premsi Raman T – 2410226

Sanskruti Acharya - 2410255

Preeti Hadimani – 2410284

Tiyasa Barman - 2410332

| PGP- 2 | July 2025 |

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1. Is this a brushfire or is this an important problem?

Ans:

The issue faced by Domino Motor and Controls (DMC) is not a brush fire; it is an important
strategic problem with long-term implications. While it may appear as a localized sales or
operations issue in a foreign market, it reveals deeper organizational misalignments. The
inability to meet customer expectations, miscommunication between sales and engineering, and
lack of tailored marketing strategy are symptoms of a broader challenge. DMC is attempting to
expand into a market that requires adaptation in product offerings, lead times, and service
delivery. Ignoring this could lead to lost opportunities, reputational damage, and inefficient
resource allocation.

The problem is significant because it affects not only the immediate sales outcomes but also the
company’s brand positioning, customer trust, and internal coordination. Addressing it requires a
cross-functional approach and a shift in how DMC views international markets; not as an
extension of current operations, but as a distinct strategic initiative. The issue in the Dominion
Motors and Controls case is a major strategic concern, not a minor operational problem.

Since John Bridges concluded that DMC’s motor was 3rd choice, it will affect DMC’s market
share. Since Bridges was known to be very influential in establishing Hamilton’s purchasing
policy and it was the only firm that had electrical engineers, thus the recommendation by Bridges
will be very effective. Most DMC executives felt they would lose the market if they didn’t
respond to Bridges’s challenges.

2. What other conditions are there in planning a product for this market?

Ans:

Several market and organizational conditions must be considered:

i) Customer Requirements:

 Precise torque and horsepower and that should adhere to the NEMA standards
 Reliability in extreme winter temperatures
 Power companies demanded that their customers stop “over motoring” and
improve power factors of their installations

ii) Cost and Pricing:

 The customer is price sensitive

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 Margins are thin and competition is very high; DMC must ensure cost-effective
production

iii) Capacity Constraints:

 DMC’s current production lines are already running near capacity.

 If they go with “Alternative 4” then the company would need additional hiring as
engineers are already overburdened
 Any retooling or allocation of time must not affect existing high-margin products

iv) Engineering Feasibility:

 “Alternative 2” won’t require any additional investment in plant/ equipment but

will need approx. 3 months to begin shipment of the modified motor
 “Alternative 3” will need a minor expenditure on plant/ equipment to produce
the new motor

v) Strategic Fit:

 “Alternative 2” would either violate NEMA standards for temperature or NEMA

mounting dimensions, which is against company policy. DMC’s policy is to
support industry standards by not publicizing or claiming operational
characteristics more than NEMA standards.

vi) Aftermarket and Warranty Considerations:

 New markets may bring service and support challenges that DMC must prepare
for.

3. What should be the DMC's approach for the coming season?

Ans:

For the upcoming season, DMC should adopt a dual strategy combining short-term product
innovation with long-term influence building. This ensures immediate relevance while
securing future credibility and customer trust in a changing market landscape.

Our Selected Approach: Alternatives 3 & 4

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i) Design a Definite-Purpose Motor (Short-Term)

 Rationale: By developing a 5-hp motor with the starting torque of a 10-hp unit, DMC
directly addresses Hamilton Oil’s test criteria and industry expectations
 Strategic Benefit: This gives DMC a unique technical advantage and a fresh marketing
story- positioning the brand as innovative and responsive

ii) Influence Perception of Test Conclusions (Long-Term)

 Rationale: Bridge’s endorsement heavily shapes purchasing decisions. Reframing the

emphasis on starting torque allows DMC to preserve its brand equity and engineering
philosophy
 Strategic Benefit: Builds trust with technical decision-makers and strengthens DMC’s
role as a collaborative partner- not just a vendor

Other feasible options for DMC:

i) Temporary Price Drop on 10-hp Motor

 Could offer short-term protection of market share
 Risks of devaluing brand and initiating price wars

ii) Reengineer the 7½-hp Motor for Higher Torque

 Technically viable, but risks straying from NEMA norms
 Could lead to a race among companies to increase torque, which might move away
from industry standards and confuse customers

4. a. How would the decision(s) taken in Question 3 impact the production department?

Ans:

Immediate Production Challenges from Designing a New Motor

i) Engineering and Development Overload

The R&D team will need to prioritize designing a 5-hp motor with 10-hp torque. This
will require intensive testing, occupying DMC’s labs for 4–5 months. To meet deadlines,
hiring temporary engineers may be necessary.

Material sourcing challenges may arise, as the new motor specifications could require
specialized components. This would involve supplier negotiations and potential delays if
suppliers are unable to meet new technical requirements.
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ii) Production Line Adjustments

Retooling and minor setup changes may be required on the assembly line. Workers will
need training in new manufacturing processes.

Since this is a niche product, early production batches will be limited. This could lead to
higher per-unit costs due to the absence of economies of scale and supply chain
inefficiencies, as smaller orders reduce bargaining power.

iii) Quality Control and Testing Demands

The new motor is designed to exceed NEMA standards. Therefore, quality control must
ensure the product is reliable under extremely cold conditions. Additional field testing
will be needed before moving to full-scale production.

Long-Term Production Shifts

i) Reduced 10-hp Motor Production

If the market moves towards smaller, high-torque motors, DMC may gradually reduce 10-
hp motor output and reallocate resources. The workforce may also be shifted to focus on the
new motor.

ii) Standardization vs. Customization

If definite-purpose motors gain market traction, production will need to adapt to more
product variations, complicating inventory management. Flexible manufacturing systems
will be required to handle different specifications.

However, if the market does not accept this level of customization, the R&D investment might
go to waste.

Key Risks and How Production Can Adapt

Risk 1: Delays in New Motor Development

Solution: Assign a dedicated R&D team, enforce strict deadlines, and monitor progress closely.

Risk 2: Higher Initial Production Costs

Solution: Negotiate bulk material discounts early and streamline assembly processes for
efficiency.
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Risk 3: Workforce Resistance to Changes

Solution: Conduct training programs and incentivize workers to embrace the new systems.

Risk 4: Excess Inventory of Old Motors

Solution: Phase out 10-hp motor production gradually based on accurate demand forecasting.

Final Takeaway: Production Must Be Agile

In the short term, DMC’s production department will face increased workload, retooling needs,
and rigorous testing demands. Over the long term, if the strategy proves successful, the company
may shift toward specialized motors, requiring more flexible manufacturing systems.

The critical success factor is strong coordination between the R&D, procurement, and assembly
teams to minimize disruption and execute the transition smoothly. This strategic shift will help
DMC stay competitive but will demand careful and efficient adjustments in production.

4.b. How would the decision(s) taken in Question 3 impact the engineering department?

Ans:

i) Increased Design Complexity and Customization Pressure (Short-Term)

 Challenge: Designing a 5-hp motor with the starting torque of a 10-hp unit is technically
demanding.
 Engineers must innovate within constraints such as maintaining size, efficiency, and cost
targets while achieving high torque.
 An investment of $75000 was needed and it would take 4-5 months.
 Could result in:
a) R&D bottlenecks.
b) Need additional investment.

ii) Resource Reallocation

 Engineers will need to divert time and focus from routine product improvements or
existing customer support. Extra engineers required for “Alternative 4”
 May require cross-functional collaboration with production and procurement early in the
design phase.

iii) Opportunity for Technical Leadership

 Success in developing a high-performance, compact motor can elevate DMC’s

engineering credibility.
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 Engineers can set a benchmark in motor performance in the market segment, enhancing
their influence on future designs and industry standards.

iv) Long-Term Positioning: Technical Narrative Building

 Engineers would play a key role in framing and supporting the shift in technical dialogue
—away from raw horsepower to starting torque and application fit.
 DMC may need engineers to:
a) Participate in technical sales presentations or customer briefings.
b) Create white papers, case studies, or performance comparison data to support
marketing.
 This fosters a consultative relationship with clients; engineers become not just builders,
but strategic advisors.

4.c. How would the decision(s) taken in Question 3 impact the finance department?

Ans:

i) Impact of Designing a Definite-Purpose Motor (Alternative 3):

 Investment & R&D Costs: The finance department will need to budget and allocate an
initial $75,000 for engineering and testing, plus minor plant/equipment expenditures.
This is an immediate cash outflow.

 Costing & Margins: Finance will be responsible for accurate costing (estimated
manufacturing cost of $665) and calculating gross margins based on the target selling
price of $1,045 to large users.

 Revenue & Profit Projections: If successful in increasing market share to 60%,

finance will need to revise sales forecasts upward for this market segment, leading to
higher overall revenue and profit projections.

 Cash Flow Management: There will be a 4-5 month lag between the initial investment
and the start of production and revenue generation.

ii) Impact of Influencing Perception of Test Conclusions (Alternative 4):

 Sales & Marketing Expenses: This strategy will likely increase costs related to sales
force time, travel, and potential new marketing materials or consulting to counter
Bridges' findings.
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 Potential for Increased Engineering Labor Costs: If DMC pursues proactive testing
and defining motor needs as part of its long-term strategy to influence customer
perception, the finance department would need to account for the costs associated with
hiring additional engineers or increasing overtime for existing staff.

 Risk Mitigation & Cost Avoidance: This approach is crucial for preventing
significant revenue loss by protecting DMC's existing market share, especially with
Hamilton Oil Company (which owns over 30% of producing wells). Successfully
influencing perception could also prevent the need for aggressive price reductions (like
Alternative 1), preserving profit margins.

 Long-Term Financial Stability: Building trust and strong relationships with technical
decision-makers (like Bridges) can lead to sustained sales, customer loyalty, and
potential future collaborations, contributing to long-term financial stability and
predictable revenue streams.