Sunder Engineering: The Path to Customer Loyalty

Sunder Engineering Industries (Sunder Engineering), a family-run business for over 50 years established by Malinder Singh, had earned a reputation for producing high-quality heating elements and terminal pins. With cutting-edge engineering and a loyal industrial customer base, the company had grown steadily. Gursidak Singh (Malinder’s grandson), took over the company management at a young age following the sudden death of his father. Singh had recently received an email from one of his longest-standing customers, Arora Components, regarding the latter’s shift to a more cost-effective supplier. New competitors had entered the market in recent years, offering similar products at lower prices. Singh was facing a challenge in keeping his customers loyal to Sunder Engineering, despite the mounting pressure from competitors. His father and grandfather had believed in delivering superior quality, but Singh knew that quality alone may no longer be enough. He had to respond immediately to Arora Components’ email and simultaneously outline a strategy to quickly adapt to changing customer preferences. Should Singh shift to cost-effective solutions by reducing prices or offer discounts? Or should he develop customer loyalty programs to retain his customers?

This case is suitable for undergraduate and postgraduate students as part of marketing and customer relationship management courses.<br><br>This case provides an opportunity for students to relate to a family-owned business facing challenges from the competition in a changing business environment. After working through the case and assignment questions, students will be able to<ul><li>balance quality and cost in industrial markets;</li><li>differentiate beyond pricing in business-to-business relationships; and</li><li>use customer segmentation as a strategic tool.</li></ul>

• Customer relationship management
• price