Granite Materials: Launching Into a Market With an Incumbent

Marketing
hard45 min0 submissions
Morgan Stanley
Scenario

Granite Materials is a mature-stage building materials business in India, preparing to launch a new product into an established category.

The category is dominated by an incumbent holding roughly 53% share. The addressable market is about ₹8823 Cr.

Candidate segments:

SegmentAddressable accountsShare expressing willingness to switch
Enterprise87388%
Mid-market5,34435%
SMB32,59422%

Constraints:

  • Planned list price: ₹9538 per account per year
  • Fully loaded cost of a field sales rep: ₹91 Cr per year
  • First-year launch budget: ₹52 Cr
  • The product is genuinely better on one dimension and worse on two

The founder wants to launch to all three segments simultaneously "to see what sticks".

Supporting data

market

tam
8823
incumbent share pct
53

segments

segmentaccountsswitch willingness pct
Enterprise87388
Mid-market534435
SMB3259422

economics

launch budget
52
loaded sales rep cost
91
list price per account
9538

derived hints

accounts per rep to break even
95408
Your task

Design the go-to-market. Your answer should provide:

  1. Analysis — which segment to enter first and why, sized with the numbers given.
  2. Risks — what your plan depends on, and what would make you change segment.
  3. Recommendation — a specific first segment, channel, price and success threshold.

State any assumptions you make.

Ready to move forward? Up next: Kirana Connect: Where Should the Acquisition Budget Go?Next question
How you'll be graded

100 points, 60% to pass.

  • positioning25
  • segmentation25
  • recommendation25
  • quantitative analysis25
Hint
Reveal suggested structure

Beachhead selection; switching motivation; GTM motion affordable at price point; staged expansion