Executive Summary

Silicon and silicon-based materials can be formulated to deliver unlimited range of uses. Silicon is durable enough for long lasting uses in the construction industry, yet can be gentle enough for uses in the healthcare and medical devices. Dow Corning has been pioneers in the development of silicones for commercial uses for the last 80 years, founded as a joint venture between Dow Chemical Company and Corning Glass. They became a global leader in manufacturers of silicon-based products with a 40% worldwide market share. Dow Corning was a pioneer producing fit for purpose market leading products.

Around late 1990 Dow Corning encountered major performance and financial losses, customers were defecting to low-priced …show more content…

Segmentation

No company has the resources to cater for every customer in every market. By going after segments instead of the whole market, companies have a better chance to deliver value to the consumer and receive maximum rewards. Through market segmentation companies divide customers into groups, based on location, buying attitudes, needs buying practices in order to service customers’ needs efficiently and effectively with products and service for their unique needs. A marketer has to try different segmentation variables, alone and in combination to find the best way to view the market structure. (Kotler et al, 2008)

Dow Corning segmentation was based on 6 industries which sold to their customers within the industry segment from healthcare to automobiles, from household products to electronics. The company had their own marketing-, sales-, and technical service department per industry.(Xiameter Case Study). This is a typical ‘end-user segmentation approach.

Initially this segmentation worked for Dow Corning, in my opinion due to the marketing