SDMIMD, Mysore I

A Market Study on B2B Sales

Report by
Ajay SA (PGDM No. 13126)
Work carried at

BASF,The Chemical Company
Submitted in partial fulfilment of the requirement of
Summer Internship Programme

Under the Supervision
Mr. JaswanthSobhana
Sales Manager,
BASF, Construction Chemicals Division,
Bangalore





EXECUTIVE
SUMMARY
Project Title: A Market Study on B2B Sales of BASF
Supervision: Mr JaswanthSobhana
Name of the Student: Ajay SA
PGDM No: 13126
This project aims at identifying the market condition and market study for concrete
admixtures, so that company can identify the strategy to repair B2B sales.
BASF Construction Chemicals Division, wholly owned by the BASF group operates across
India, Nepal and Bhutan. Our market segmented structure means that you can rely on the
proximity of a local company with the backing of a global group.
Regional offices in four metro cities - Mumbai, Delhi, Kolkata, Bangalore, headed by
Regional Managers

The current study focusses on the B2B Sales and the study has been conducted in Bangalore
and Mysore which are tire 1 & tire 2 cities.
The research work included survey and in-depth interviews with the dealers. The
questionnaire was used to record the response by dealers.
The project, which was blend of market research was quite a learning and satisfying
experience
The thesis describes the above mentioned work in detail.

Name of the student Supervisor
Ajay SA (13126) Mr JaswanthSobhana
SDMIMD BASF, Bangalore





ACKNOWLEDGEMENT


This summer internship project is just not merely doing the project, but it is also to get the
first-hand experience of the industry. It is rightly said that no one is as good as all of us. This
statement underlines the significance of the contributions of people in order to make any
effort a success. This endeavour of market research could not have met its end without the
assistance and wishes of many individuals who made this effort possible. I am thankful to our
institute SDMIMD, Mysore for providing us an opportunity and encouragement to
undergo project training in BASF company.
I would like to take this opportunity to express my gratitude to my corporate guide
Mr.JaswanthSobhana, Sales Manager, BASF, who provided me the opportunity to execute
the project which not only was important for the organisation but also allowed me to have
practical insights of the corporate world and improved my perspective.
I would like to thank my faculty guide Dr.NilanjanSengupta for being there always to
support whenever I needed it. This enabled me to make this project a blend of academics and
practice.
At last, I want to appreciate the incessant support of my friends and relatives who helped in
seeking a number of appointments within the industry and made the data collection possible.

Ajay SA
13126

Contents
ORGANIZATION CERTIFICATE .....................................................................Error! Bookmark not defined.
Executive Summary .............................................................................................................................................. II
Acknowledgement ................................................................................................................................................ III
COMPANY INTRODUCTION .......................................................................................................................... 1
Introduction to the Project topic ..................................................................................................................... 2
Organizational Context .................................................................................................................................... 2
Objectives of the research ................................................................................................................................ 2
Product Definition ................................................................................................................................................ 3
Research Purpose ................................................................................................................................................. 3
Research Users ...................................................................................................................................................... 3
Research Design .................................................................................................................................................... 3
Research Boundary .............................................................................................................................................. 4
Pilot Study ............................................................................................................................................................. 4
Field Work / Data Collection ............................................................................................................................... 5
Qualitative Research ........................................................................................................................................ 5
1. Quantitative Research ................................................................................................................................. 5
2. Population Selection..................................................................................................................................... 5
3. Research Methodology ................................................................................................................................ 6
4. Type of research ........................................................................................................................................... 6
Exploratory Research ....................................................................................................................................... 6
Descriptive Research ........................................................................................................................................ 7
Sample Plan ........................................................................................................................................................... 7
Information Requirement Planning .................................................................................................................... 7
Data Analysis and Graphical Presentation......................................................................................................... 8
Dealers Analysis .................................................................................................................................................... 9
Competitors Analysis ......................................................................................................................................... 10
Results and Discussions ...................................................................................................................................... 12
SWOT Analysis ................................................................................................................................................... 12
Important Findings............................................................................................................................................. 13
Recommendations ............................................................................................................................................... 13
CONCLUSION ................................................................................................................................................... 14
SIP Learnings ...................................................................................................................................................... 15
Market Research Questionnaire used ................................................................................................................... 16































SDMIMD, Mysore 1

COMPANY INTRODUCTION

Established as Master Builders in 1909 -100 years pedigree
Inventors metallic aggregate dry shake hardener, 1909
Inventors of precision non-shrink grout, 1934
Developed the world's first epoxy grout, 1954
First Superplasticiser based on Melamine 1966
Invented DELVO, the hydration control admixture, 1989
Patented the most versatile APS resin system for repairs that sets at -25
o
C
to +45
o
C, 1993
Invented PCE based Hyper Plasticizers Glenium in Japan, 1986
First Self compacting Concrete (SCC) in Japan, 1989
First Concrete Produced in Space with NASA, 1994
Zero Energy System for precast concrete production, 2001
SureTEC- slump retention technology for ready mix concrete, 2005
GLENIUM 8008 - Admixture for Ultra-High Strength Concrete (>120
MPa) , 2007




















Introduction to the Project topic
BASF proposed to do a market survey on B2B sales on the products which are going to be
produced by BASF Company. Towards this end BASF decided to commission a market
research project to be undertaken by SDMIMD students as a summer internship projects.
The objective was to understand the market and the demand for its products.
Organizational Context
The organization wants to explore the possibility of sales in B2B market. Since BASF has a
good distribution channel throughdealers for its products all over the country.

A detailed study of the market was done across India but I was assigned with tier 1 & 2 cities
like Bangalore and Mysore.


Objectives of the research

The overall objective Is to study the market for B2B sales in India and the major concern is
with Tier 1 & 2 cities.
This has been divided into the following sub-objectives:
1. Price
2. Brands and competitors
3. Preference in buying.
4. Industrial market research

The aim of marketing is to know and understand the customer so well the product or service
fits him and sells itself Peter Drucker
Kotler on Marketing Marketing is an organizational function and a set of processes for
creating, communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stake holders. Marketing is the
process of planning and executing the conception, pricing, promotion, and distribution of
ideas, goods and services to create exchanges that satisfy individual and organizational goals.
Market Research - Definition: The process of gathering, analysing and interpreting
information about a market, about a product or service to be offered for sale in that market,
and about the past, present and potential customers for the product or service; research into
the characteristics, spending habits, location and needs of your business's target market, the
industry as a whole, and the particular competitors you face. (http://www.entrepreneur.com)
Marketing research is a systematic problem analysis, model building and fact finding for the
purpose of improved decision-making and control in the marketing of goods and services.
Philip Kotler
Industrial market Research - The importance of industrial market research cannot be over-
stated because it defines the specific target markets and products that will produce increased
sales and higher profit margins. More specifically, industrial market research defines the
companies that are most like your best customers and most likely to need what you sell in the
marketplace.
PRODUCT DEFINITION

Improving concrete, Repairing concrete, Protecting concrete
RESEARCH PURPOSE

The purpose of the study was to explore the Sales in B2B market. The study also needs to
analyse the consumer satisfaction about BASF Products.
RESEARCH USERS

The research analysis will be used by the top management. This analysis will aid them to do
further detailed study and to take certain strategic decisions.



RESEARCH DESIGN

The survey initially begin internally in BASF, collecting data of internal report on the
domestic market place, information on distribution, regional buying pattern and any
complaints from consulted person in BASF and the representatives of BASF in Bangalore
and Mysore region. After the guidance from the BASF management we submitted a
Questionnaire designed by me, after proper scrutiny and sanction of the Questionnaire I
started with Survey in the places assigned for me.
As mentioned above I had to conduct the survey across the city of Bangalore and Mysore for
a sample size of 20- 25.

Research Questions

1. To understand the buying behaviour of the consumers of product.
2. What is the potentiality of the market and feasibility of capturing the market.
3. To what extent brand awareness of the BASFhelp the company to sell products in the
market?
4. What are the major factors/features that influence purchases?
5. Which brands are preferred by dealers and in different market?
6. What is the level of satisfaction of dealers?
RESEARCH BOUNDARY

1. Research was conducted across many parts of India wherein I was assigned with tier
1& 2 cities like Bangalore and Mysore.
2. Target group was dealers / Wholesalers, Builders.

PILOT STUDY

A pilot study was conducted in Mysore city to understand the market here and get the in
depth analysis and to know how the people will respond and what kind of Questions to be
asked and what are Dealers and builders Expectation.

FIELD WORK / DATA COLLECTION

Since this is a descriptive type of research, the hypothesis is tentative and speculative in
nature. So survey will be done with the help of the questionnaire where we consider
equivalence, measurement and sampling.
Qualitative Research

The Purpose of this is to provide BASF with the detailed qualitative information like peoples
opinions, attitudes and intentions. In-depth interview was used to explore and understand the
attitudes of the potential customers towards the BASF products and subsequent qualitative
research was used to measure how widespread these attitudes are.

The Qualitative phase will probe the following:
1. Observations Open Ended Questions, Information by observing people and places
at a research site.
2. In-depth Interviews.
1. QUANTITATIVE RESEARCH

Interview is structured with close-ended Questions in questionnaire. Collecting data such as
ratings, frequencies for statistical analysis
The Quantitative Phase will probe the following:
1. Estimate price sensitivity and purchase likelihood.
2. Identify features and benefits that drive purchase likelihood.
3. Assess how target consumers want to design and purchase the product.


2. POPULATION SELECTION

Study was done using the true representation of population who are be into the construction
field, builders, dealers of the company etc. Survey was also conducted with the Wholesale
Dealers who supply Chemicals and related materials to the shops and users to get the better
picture and understand the market. Questionnaire was used to get the in depth analysis of the
market for Chemical products and get the detailed picture of it. For the ease of Research,
every city was divided into four Parts where i can get the responses from the customers and
where the majority of these will be situated.
3. RESEARCH METHODOLOGY

The survey was started internally in BASF, collecting data of internal report on the domestic
market place, information on distribution, regional buying pattern. Collected the data on the
requirements of the research and this was very helpful and is indicative of the likely domestic
market place and indicate strengths and weakness that will help in segmentation. An external
search through my own channels and collection of secondary data also took place, so that
helped to obtain and analyse existing market.

4. TYPE OF RESEARCH

Exploratory Research

Exploratory research is generally used to clarify thoughts and opinions about the research
problem to provide insights on how to do conclusive research. The results of the exploratory
study can give valuable inputs for the second study. It helps in developing and refining the
plan for the research. During the first ten days of the research exploration was carried
out.During this phase unstructured in-depth interviews were conducted with some builders
and dealers within the aforesaid industries so as to appreciate the significance and magnitude
of the market. After this phase questionnaires were developed.


Descriptive Research

The survey was conducted using the questionnaires. Various scales and parameters were
included in the questionnaire to draw the value expectations of the buyers. The questionnaires
were in tune with the objectives of the research study.

SAMPLE PLAN





Break up of Sample Plan:
Builders in Bangalore and
Mysore(Combined)
(Organized and Unorganized)
10
Dealers/ Wholesalers in Bangalore
and Mysore (Combined)
10


INFORMATION REQUIREMENT PLANNING

Source of
Information
Information Required Scaling Approach
Builders

Purchase Behaviors
Frequency of Purchase
Price Preferred
Brand Awareness
Largely Nominal or
Ordinal
Manufacturer Distributors
Problems Facing
Additional Features

Retailers &
Wholesalers
Dealers

Brands Available & Price
of each brand.
Frequency of Purchase of
each brand.
Additional Features
Largely Nominal or
Ordinal


DATA ANALYSIS AND GRAPHICAL PRESENTATION

Bangalore:
Bangalore is the capital city of the Indian state of Karnataka. Located on the Deccan Plateau
in the south-eastern part of Karnataka, Bangalore is India's third most populous city and fifth-
most populous urban agglomeration.
Bangalore is having total population of 8.426 Million People which is spread over 741 km

Survey Conducted:
As per the total survey conducted in Bangalore city in specific locations it is found that
around many builders and contractors use chemicals while constructing.

Major Market Leaders (Bangalore and Mysore):

BASF
FORSEC
PEDILITE
SIKA




Preference of Brands by DEALERS & BUILDERS (Bangalore and Mysore)
N Sum Mean
Price 25 62 2.48
Quality 25 77 3.08
Ease of
Availability
25 70 2.8
Packaging 25 66 2.64
Size Availability 25 71 2.84

1 Least Important, 2- Neutral, 3- Important, 4 Very Important
The values are interpreted as follows,

Lower the mean no. Least Important Character
Higher the mean no. Most and Very Important Character

Here from the table we can observe that Price has been given less importance and Quality has
been pressurised a lot which means consumers are ready to pay but at the same time the
quality of the product should also be at the best but they still do prefer for the medium
pricing.



DEALERS ANALYSIS



Does Builders/dealers seek your suggestion as to the brand they can buy?
Dealers
10
Builders
10
Both
20



Major factors taken into consideration for stocking products
1 High, 2 Medium, 3 Low
N Sum Mean
Customer
Demand 23 23 1.00
Profit Margin 23 33 1.43
Advertisement 23 45 1.96
Availability 23 23 1.00
Incentives 23 38 1.65
Brand Awareness 23 38 1.65
Packaging 23 30 1.30
Performance 23 23 1.00
Credit Period 23 35 1.52

The values are interpreted as,
Higher the mean no. Less preference has been given to such strategies
Lower the mean no. High preference has to be given to such strategies
Here the data obtained were analysed by using Mean method. Respondents were asked to
rank major size and shapes which are most preferred and fast moving on a scale 1 to 3.


COMPETITORS ANALYSIS

22
78
Yes
No
For any business, there is always a set of players who control the market. Any firm which
wants to enter into a business must understand those players to make plans accordingly. In
Chemical construction market too there are a number of well-established and experienced
players.

BASF



FORSOC





PEDILITE



SIKA



RESULTS AND DISCUSSIONS

The research has resulted in the following outcomes which will help the organization in not
only understanding the market but also in designing the strategy for B2B sales of BASF.
SWOT ANALYSIS

External Environment
Opportunities
Potential to become market leader by increasing brand awareness of BASF products.
Very huge chemical market
Threats
Local and experienced players in the market
Well-known brands which are available at low cost.
Internal Environment
Strengths
Business Experience
Brand value
Financial Strength
World Class Production
Commitment on high quality products.
Market leader
Human Capital
Strong distribution network.


IMPORTANT FINDINGS

Price
Respondents are satisfied the price of the current products. To gain initial foothold in
the market it is recommended to launch a product with 2-5% discount compared to the
competitors prices to gain fast response of the price sensitive customers.
Market Response
With approx. average 50% of the customers responding in yes and not sure to a new
supplier, it is the best time to take advantage of the optimism among the customers.
Brand
BASF needs to take advantage of its brand value by focusing on this market. This market
promise huge scope and premium pricing for the brands.

RECOMMENDATIONS


Since BASF is having strong Distribution network it can either use the same
distribution channel if it thinks it is feasible to start manufacturing the patches.
If the company does the reverse engineering of the leading market leaders product and
try to maintain the same quality or if it wishes it can invest on R&D and try develop
new variety or try improvise the quality of the product then it can capture the market
easily
Promotional strategies like distribution of free samples to the users has to be done so
that they will get an awareness about the brand and also they will test the products
Consumers are willing to try new brands if the quality of the Product are good and
price remains almost the same which they are paying as of now.
Company also has to distribute tools kit freely at the initial stage and should also think
of launching the Bonding gum since it is also very essential while the process of
repair takes place and majority use same Brands bonding gum because that fixes
firmly.
Dealers wishes they get more Profit margin and medium increase in credit period
might help them so that they can push the product to the consumers and also promote
the product.



CONCLUSION

The quality, price and quantity are the major attributes governing the buying behaviour of the
Chemical products. Dealers sell all type of brands and so even BASF has to influence the
builders and dealers in buying the BASF products.
As described in the earlier stage of the report how potential is the markets of Bangalore and
Mysore cities, I think it is right time for the BASF to go with brand awareness and
promotional strategies.
Since BASF has financial, operational and marketing capabilities to create a mark in this
business, it can positively enter and ensure success.
The report presents the response of builders and dealers on various parameters. This will help
the organisation to have pragmatic view of the market. The study has revealed the value
expectation of the customers in the tube and tyre repair market.
It is recommended that the firm should target to enter the market as a follower and gain
experience and then expand its operations to become a leader.
At last, the report makes an attempt to open new avenues for the organisation. It is expected
that taken decisions in this regard will go a long way to bolster the operations of BASF to
enable it to become more prosperous and admired brand.


SIP LEARNINGS

Summer Internship Program is a very viable way through which corporate structure and life
can be felt in a span of two months. Being working as a Marketing intern at BASF, not just it
helped me in broadening the horizon for the works to be carried out in the marketing
department of an organisation but also helped in a significant way to understand various
prospects of market and current market scenario. While working on my project work, I came
across many things and all that served as a great deal of learning. SIP also serves as a place
where we can apply all the concepts learnt through classroom lectures and the practical
aspects related with the same. It paves the way to learn to know, manage and deliver
responsibilities and accountabilities in an efficient way.
While doing the survey, whats in it for me? Because until and unless theres no value
creation no one is interested in anything. So at the end of the day, one has to sell himself to
become productive for any organisation.




MARKET RESEARCH QUESTIONNAIRE USED

QUESTIONNAIRE FOR DEALERS & BUILDERS



Distributor Name



Product Distributor of



Contact Information
Name

Designation

Telephone no



How long have you been a (company) dealer?



How much of your profit is derived from (company) products?
0-25%
25%-50%
50% & Above







Which of the following (company) product do you fully support at this
time?





Compared to (market leader), how does (your product) offer advantages in
selling situations?
Strong advantage
Slight advantage
About the same
Slight disadvantage
Strong disadvantage



Compared to (market leader), how does (your product) offer advantages in
profitability?
Strong Advantage
Slight Advantage
About the same
Slight disadvantage
Strong disadvantage



Which product line do you see as offering a stronger competitive position
to (company) dealers?
Pedilite
Fosroc
Sika
BASF







Which of the following best describes the influence you feel you have with
(company) senior management?
A lot of influence
Some influence
Very little influence
No influence



How do you rate (company) on the following
Pedilite
Fosrac
Sika
BASF



Which of the following administrative areas would you say presents the
greatest opportunity improvement? (Choose any two)
Order processing
Shipping
Billing and credit service
Inventory tracking