BIRLA POWER SOLUTION

CHAPTER 1-- INTRODUCTION

1.1 GENERAL INTRODUCTION
Marketing is defined by the American Marketing Association as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. The term developed from the original meaning which referred literally to going to market, as in shopping, or going to a market to sell goods or services. Marketing deals with customers creating customers value and satisfaction are the heart of modern marketing. The market is a center around which marketing activities revolve. A market, in general may be described as a place where goods and services are offered for sale, buyers and sellers meet and title to goods is transferred.

Industrial Goods- Industrial goods are technical complexity, customized

goods. It can be final products or use in production of derived products.

Industrial Marketing- Activities involved in the marketing of products

and service to organizations that use products and services in the production of consumer or industrial goods and services. While the basic task of marketing apply in both the consumer and industrial marketing. In the industrial market, markets are relatively concentrated and channels of distribution are shorter, buyers are well informed, highly organized, and sophisticated in purchasing techniques and multiple influencers contribute different points of view to purchasing decision. Sales people act more as consultants and technical problem solvers, utilizing in-depth product knowledge and technical understanding of the buyers needs.

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Although pricing is still important, price is less critical in industry buying decisions. The quality and consistency of products, certainty of delivery, bidding and negotiating prices are very common.

CHARACTERISTICS: INDUSTRIAL AND CONSUMER MARKETING

The basics of marketing management: deciding the target markets; finding out the needs and wants of the target markets, developing products and services to meet the requirements of those markets, and evolving marketing programs or strategies to reach and satisfy target customers in a better and faster way than competitors apply to both consumer and industrial marketing. The industrial markets are geographically

concentrated; the customers are relatively fewer; the distribution channels are short; the buyers (or customers) are well informed; the buying organizations are highly organized and use sophisticated purchasing techniques; the purchasing decisions are based on observable stages in industrial marketing. Industrial marketing is more a responsibility of general management in comparison to consumer marketing.

TYPES OF INDUSTRIAL CUSTOMERS

Industrial customers are normally classified into four groups: (i) Commercial Enterprises, (ii) Governmental Agencies, (iii) Institutions, and (1v) Co-operative Societies.

INDUSTRIAL PRODUCTS AND SERVICES

The industrial products and services are classified into three broad groups: (i) materials and parts, (ii) Capital items, (iii) Supplies and services. 2

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DIFFERENCE BETWEEN INDUSTRIAL AND CONSUMER MARKETING Industrial markets Market structure Geographically concentrated Consumer Geographically dispersed

Markets

Relatively fewer buyer

Mass

Products availability Service Buyer behavior

Technical complexity Customized Service, delivery very important Functional involvement Technical expertise Interpersonal relationship

Standardized Somewhat important Family involvement

Technical aspect Relationship

Less expertise technical Non personal relationship

Decision making Channels Promotion Price

Distinct, observable stages Shorter, fewer linkage Emphasis on personal Selling Competitive bidding
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Unobservable, mental stages Indirect, multiple linkage Emphasis on advertising List price

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1.2 THEORITICAL BACKGROUND OF THE STUDY

DESIGNING AND MANAGING MARKETING COMMUNICATION.
Marketing Communications (or MarCom or Integrated Marketing Communications) are messages and related media used to communicate with a market. Marketing communications is the "promotion" part of the "Marketing Mix" or the "four Ps": price, place, promotion, and product. Those who practice advertising, branding, brand language, direct marketing, graphicdesign, marketing, packaging, promotion, publicity, sponsor ship, public relations, sales, sales promotion and online marketing are termed marketing communicators, marketing communication managers, or more briefly, marcom managers.

The choice of how to communicate your message, and to which customers, can make all the difference between campaign success and consumer fatigue. Marketing communications are the means by which firms attempt to inform, persuade and remind consumers-directly or indirectly about the products and brands that they sell. In a sense, marketing communication represent the voice of the brand and are a means by which it can establish a dialogue and build relationships with consumers. Marketing communication allow companies to link their brands to other people, place, events, brands, experience, feelings, and things. It can also contribute to brand equity by establishing the brand memory and crafting a brand image.

PERSONAL COMMUNICATION CHANNELS

Personal communication is communication between two or more persons with a specific person communication with others. The message emanates from a 4

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specific person. It can be done face to face, or by a person to audience, over telephone, or through post or couriers or through emails or through mobile messages. . Companies take various steps to stimulate personal communications about their products and brands.

1. They identify influential individuals and devote extra effort on them. 2. Create opinion leaders by supplying possible opinion leaders with the product on attractive terms. 3. Use influential or believable people in testimonial advertising. 4. Develop word of mouth publicity by requesting satisfied clients to promote their product among their friends. 5. Establish online discussion groups and communities.

Non-personal Communication Channels

They include media, atmospheres, and events. Media channels include print media (newspaper, magazines, souvenirs, proceedings of conferences), broadcast media (radio, television), display media (billboards, signs, posters) and electronic media (audiotape, videotape, videodisk, CD-ROM).

Events are occurrences designed to communicate particular messages to target audiences or audiences. Company arranged news conferences, opening ceremonies of various kinds, and sponsorships of various events come under event communications channels. Communication through mass media stimulates personal communication channels.

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The Promotional Tools

The characteristics of various promotional tools are as follows:

Advertising
Advertising is a public mode of communication. Because it is communicated simultaneously to large number of people and people know that the same communication is going to many people, they feel their motives for buying are understood by the advertiser.

Advertising messages can be repeated number of times. Buyers also can compare advertisements of various companies selling the same product. The media offers the facility to add colour, sound etc. to the message and dramatize the message. But advertising cannot have dialogue with the people. People may not see and pay attention to the advertisement. Advertising is an efficient way to reach geographically dispersed potential buyers at a low cost per exposure.

Advertising has two recent variants. Advertorials are offer editorial content and while it is paid for by the advertiser and it will be difficult for the reader to easily make out that it is an advertisement. Similarly infomercials are TV programs that are meant for promoting the products of the company. They discuss the working of the product, benefits of the products, and user experience etc. and they may beam the message to buy the product and the address to be contacted.

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Sales promotion
Sales promotion tools like coupons, contests, premiums, and the like acts as communication medium and also promote sales. They gain attention and provide information that may lead the consumer to the product. They include a distinct invitation to the consumer to do the transaction in a short period of time.

Public relations and publicity

News stories and feature articles are more authentic and credible than advertisements to readers. The articles act as testimonials. The message gets through to the potential buyers as news and they may not turn away from it as they turn away from the advertisements.

Personal selling
Personal selling as a communicative channel involves a live, immediate, and interactive relationship between persons. Personal selling leads to

relationships. The listener feels obligated to respond to the salesman at least with a polite thank you.

Direct Marketing
The alternatives are direct mail, Email, and telemarketing. In these cases the message is addressed to a specific person. The message can be customized. Even though mailing folders and email are normally standardized to gain efficiency. The message can be up to date. In case of telemarketing, message can be altered depending on the response. In the case of other alternatives subsequent communication can be altered depending on the response. 7

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1.3 INDUSTRIAL BACKGROUND OF THE STUDY

Indias thrust on achieving higher economic growth rate has intensified construction activities all across the country. This has also created huge demand for power supply. According to some market research, there is a demand-supply gap of about 17% in power generation. This has thrown open huge market opportunities for the power backup providing companies. The power backup market in India is growing at an annual rate of 15-20%, varying within the three different segments. India is now the fifth largest power market in the world. The per capita electricity consumption in the country is around 665 units which is envisaged to increase to 1,000 units by 2011-12.

Good opportunity continues to exist in power sector in India due to growing gap between demand and supply. The demand for power is typically driven by sectors such as Telecom, Commercial construction, IT, ITES, Retail, etc.

OVERVIEW OF GENERATOR INUSTRY

Generators refer to the mechanical equipment that can convert other forms of energies into electricity. It is mechanically driven by hydraulic turbine, steam turbine, diesel engine or other power equipment which convert energies produced from water, steam, burning fuel or atomic fission into mechanical energy and transfer to the generator which then converts the mechanical energy into electricity. Generators can be divided into DC generators and AC generators, and the later can further divided into synchronous and asynchronous ones. Generators can also be categorized into diesel generators, petrol, gas, wind, hydraulic and solar generators.

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Tax rebate on exports on generators is 17% and that of generators parts is 13%.

The power industry in India has been characterized by peak power and energy shortages. In fiscal 2004 and 2005, demand for electricity exceeded supply on an average by an estimated 7.1% and 7.3% respectively in terms of total requirements and 11.2% and 11.7% respectively in terms of peak demand requirements.

Although power generation capacity has increased substantially in recent years, it has not kept pace with the growth in demand or the growth of the economy generally. According to the United Nations, India has one of the lowest electricity consumption levels in the world, at 355 units per capita in 2000, due to unreliable supply and inadequate distribution networks. This contrasts with 827 units per capita in China, 1,878 units per capita in Brazil and 12,331 units per capita in the United States, in 2000.

Historically, state and central government entities played the dominant roles in the development of the Indian power industry. However, capacity growth did not keep pace with demand, due to inadequate investment and the poor financial health of the SEBs. However in recent years, in light of persistent shortages, the Government has taken significant action to restructure the industry and attract investment.

Gensets
The market for Gensets in the 5 to 15 KVA usage bracket covers a wide spectrum of affluent users, households, shops, commercial establishments, and other institutions including the small and medium industries.

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All offices require power in some quantities to enable them to run the basic utilities. Though existing usage of below 5 KVA portable generating sets are meant for meeting only rudimentary requirements the 5 to 15 KVA usage bracket is fast rising that need to meet the essentials with basic affluence comforts like an AC & refrigerator. Also there is a fast growing demand created by the booming telecom industry to support their unmanned stations spread all over India including remote areas.

1.4 ENVIRONMENT TECHNICAL NORMS REGARDING PORTABLE GENERATOR

Portable generators are useful when temporary or remote electric power is needed, but they can be hazardous. The primary hazards to avoid when using them are carbon monoxide poisoning, electric shock or electrocution, and fire.

TO AVOID CARBON MONOXIDE HAZARDS:

Always use generators outdoors, away from doors, windows and vents. NEVER use generators in homes, garages, basements, crawl spaces, or other enclosed or partially enclosed areas, even with ventilation. Follow manufacturers instructions. Install battery-operated (with battery backup) carbon monoxide (CO) alarms in your home, following manufacturers instructions. Test CO alarms often and replaces batteries when needed.

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TO AVOID ELECTRICAL HAZARDS:

Keep the generator dry. Operate on a dry surface under an open, canopy-like structure. Dry your hands before touching the generator. Plug appliances directly into generator or use a heavy-duty outdoor-rated extension cord. NEVER plug the generator into a wall outlet. This practice, known as back feeding, can cause an electrocution risk to utility workers and others served by the same utility transformer. If necessary to connect generator to house wiring to power appliances, have a qualified electrician install appropriate equipment. Or, your utility company may be able to install an appropriate transfer switch.

TO AVOID FIRE HAZARDS: Before refuelling the generator, turn it off and let it cool. Fuel spilled on hot engine parts could ignite. Always store fuel outside of living areas in properly labelled, non-glass containers. Store fuel away from any fuel burning appliance.

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CHAPTER 3 PROFILE OF ORGANISATION

3.1 ORIGIN OF THE ORGANISATION Company Profile

BIRLA POWER SOLUTIONS LIMITED (Formerly Birla Yamaha Limited) (ISO-9001 & ISO14001 COMPANY) Registered Address 159, Industry House Church Gate Reclamation, Mumbai, Maharashtra 400020 Tel: 022-22026340 Fax: 022-22047835 Website: http://www.birlapower.com Group: Birlas (Yash) Group

Overview

Birla Power Solutions Ltd., (BPSL) was established in the year 1984 in collaboration with globally renowned Yamaha Motor Co. Japan. It was the first company to manufacture portable generators in India in 1986, the first to roll out Self Start Gensets and first to launch emission compliant generators under the brand name, Birla Ecogen. With more than 500 dealers spread all across

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India, the retail business of Birla Power flourishes to its entire length, with 100% satisfaction level of the customers.

Products & Services

The Company produces a wide range of generators catering to the power requirements of 500W to 60K.W with a variety of fuel options like kerosene, petrol, diesel, LPG,CNG and biogas. The product portfolio of Birla Power also includes Pump Sets, Lawn Movers, Invertors, Sprayers and Batteries.

Unit
The modern manufacturing unit is situated near Dehradun with a capacity of 125,000 Smaller Gensets and 75,000 Multi Purpose Engines & Higher KVA Gensets of 20000 units per annum.

Public Private Partnerships OR PPP

In order to meet demands of telecommunications, ITC Schools, Health, electric power, water transport, road, rail, air, water supply as well as irrigation sector, various Public Private Partnerships or PPPs are being promoted for implementation of these infrastructure projects. We at Birla have left no stone unturned in taking pride in en-cashing these opportunities. The flow of business turn over of Birla Power have increased in multiple folds with such PPP in the past, present and in future.

COMPANY PERSPECTIVES
Our Vision: To be a premium global conglomerate with a clear focus on business.

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Our Mission: To deliver superior value to our customers, shareholders, employees and society at large. Our Values: Integrity; Commitment; Passion; Seamlessness; Speed. ABOUT US The Yash Birla group is a part of the prestigious house of the Birlas, started by Mr.Baldeo Das Birla, the great-great grandfather of our current chairman. The lineage of yash birla group began with Mr.Rameshwar Das, grandfather of Mr.Ashok Birla, the sudden demise of Mr.Ashok Birla, in 1990, plunged his son Yashovardhan into the corporate world. Since then Yash Birla and his group have only emerged stronger than before. Yash birla has not only brought sick companies to life but has given the group a dynamic strategy like never before. He gave the Group a dream, a global vision and an integrated approach.

The yash birla group has a number of companies all over India and under the perfect leadership of our chairman, we have made successful forays in the areas of Generators, Multipurpose Engines, Chemicals, Yarns, Pipes, Consumer Durables, Precision Cutting Tools etc. The Group is now set to make a mark in the IT world as its latest diversification.

Birla Power Solutions Ltd., (BPSL), a Rs.2500 Crore Yash Birla Group Company, established in April1984 in collaboration with globally renowned Yamaha Motor Co. JAPAN by dynamic visionary late Shri Ashok Birla. The Company has many a firsts to its credit. It was the first Company to manufacture portable generators in India in 1986. The Company has the expertise of manufacturing 2 stroke as well as 4 stroke engines. The Company is presently producing a wide range of Generators catering to the power requirements of 500W to 40K.W being fuelled by variety of fuel options like Kerosene , Petrol, Diesel, LPG ,CNG ,Biogas etc . It was the 1st Company to roll out Self Start Gensets and became the 1st Company to launch emission 14

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compliant Generators under the brand name BIRLA ECOGEN, once again taking a step ahead, to launch low noise gensets, complying with phase-II noise norms and entering a new era of silent technology gensets. BPSL is committed to provide total Power Solution depending upon customer needs by manufacturing Portable Generators, Inverters, Home UPS. To provide complete Power Solution to its esteemed customers under one roof company has recently started opening POWER SHOPPEE across the country. To support the farming community it includes Water Pumps & Multi Purpose Engines & its application products such as Power Sprayers & Needle Vibrators and Lawn Mowers, under the brand name Ecoshakti. The Company also has plans to increase its range of Pumpsets and Sprayers in the lower power range. To match with the market requirement, the company has launched two new products in Portable Genset segment with the capacity of 900 VA and 5 KVA. With continuous in house R&D, BPSL have also developed the technology of reduction of heating effect generated inside the Generators. The present domestic market share of BPSL Generators is around 32%. Till date, we have more than 4.5 lac satisfied genset owners and a network of more than 600 dealers, spread throughout the country. These dealers are given extensive training and are well equipped to cater to after - sales -service for generators. The modern manufacturing unit is established near Dehradun (Uttarnachal) in a very scenic and serene backdrop of hills & forest, with a capacity of 125,000 Smaller Gensets and 75,000 Multi Purpose Engines & Higher KVA Gensets of 20000 units per annum. The total area of the factory is 150000 sq. mtrs and the covered area is 17000 sq. mtrs. The connected load is 1550 KVA. Though

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the power availability in the region is good, Company has DG sets of 850 KVA as stand by captive power. Alternator shop has fully automatic machines capable of producing single phase self excited synchronous alternators up to the capacity of 4.5 KVA. The Machine shop has 79 machines out of which 10 are CNC such as CNC Lathes, CNC Machining Centre & CNC Drill Tap Centre. The Paint shop is having Dip Phosphating to accommodate up to the cube size of 800 mm and conveyorised electrostatic spray painting along with thermic fluid baking for cube size of 600 mm. There are 550 employees in the Company out of which around 200 are skilled workmen. Most of them are ITI educated, and the work culture at the factory is very cordial. BPSL got ISO 9002 certification in October1998, and has also been awarded ISO14001 certification. In the year 2002, the company has acquired the stake of Yamaha Motor Company Japan. BPSL have become one of the few Indian Companies to buy out the equity of our MNC partner. Today, company has become totally self sufficient in all aspects. BPSL is entering into a new era with constant emphasis on state of - the - art R &D and insistence on quality products. From Gensets to Inverters to Multipurpose Engines you name it, we make it. Today we are spread across the length & breadth of the country and across the globe with a range of products, making us Indias largest provider of power solution products. From being a manufacturer of a single product, we have become a multi-product Company.

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3.2 GROWTH & DEVELOPMENT OF THE ORGANIZATION.

YEAR EVENTS 1984 - The Comp. was incorporated on 27th April, at
Mumbai. The Comp. was promoted jointly by Tunghabhadra Industries limited and Yamaha Motor Co. limited The Comp. manufactures portable generators and multi-purpose engines. - The Comp. entered into a technical-cum-financial collaboration agreement with Yamaha Motors Co. Ltd [YMCLs] of Japan on 31st August, YMCL were to provide knowhow and technical information for implementation of Company project & for manufacture of portable generating sets. - The portable generator sets & engines produced by Company would be in the range of 0.5 KW to 4.0 KV. In case of generators, the Comp. adopted the self excitation brushless system which would render the process immune to dust, humidity & other vagaries of atmospheric conditions. - For the manufacture of multi-purpose engines, the process adopted is the condenser discharge ignition which would eliminate unwanted parts resulting in better fuel efficiency & low maintenance costs.

1985 - 160 shares allotted to promoters, directors, etc. 79,99,840 shares then
issued at par out of which the following shares were reserved & allotted: 20,80,000 shares to Yamaha Motor Co. Ltd., Japan, 20,79,840 to Tungabhadra Industries Ltd., other associate Indian companies, directors, etc. & 11,290,000 shares to Pratap Malapani. Out of remaining 27,20,000 shares, 1,36,000 shares to the Company employees including working directors & 54,400 shares to business associates were reserved and allotted on a preferential basis. The balance 25,29,600 shares were offered for public subscription during November/December. 17

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1986 - In order to ensure, continuous supply of power, an 850 KVA generator

was also installed. The Comp. commenced trial production of LG 900 & 2000 model generators in April.

1987 - New modern generators such as LG 600, LG 900 AC & LG 2800 were
introduced. Prototypes of multipurpose engines [part of Company product ranges] were also developed.

1989 - New range of products such as multipurpose engine, and public

address system were test marketed.

1990 - The Comp. came under the provisions of above mentioned Act due to
erosion of fifty percent in its net worth.

1992 - Production suffered to a great extent as one of key suppliers to the

Comp. declared lock-out at their works twice during the year resulting in nonavailability of components.

1993 - The Comp. launched a new model of genset of smaller capacity which
operates on kerosene in order to satisfy market requirement of lower running cost genset.

1994 - A new Kerosene model `BY 1000 K' launched by Comp. in April, for
which market response is encouraging. - The Comp. proposed to launch multi-purpose engines for the semi-rural/rural areas. - The Comp. also proposed to deal in various types of electrical equipment viz. `Inverters' to cater to the middle-class household segment in the domestic market.

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1995 - The Comp. introduced two new models of self start generators. Also
introduced two new multipurpose engines namely Birla Power Birla Power Plus.

1996 - The Comp. launched two new models of self start portable generators
& `Yamaha' brand of EF 6600 E [5.5 KWs] Electric start genset.

1997 - The Comp. was discharge from the purview of BIFR under the sic
industrial companies [Sp. Provisionss] Act, 1965. - Genset manufacturer Birla Yamaha would be launching single battery inverters in April. - Birla Yamaha Limited, a joint venture of Yashowardhan Birla group & Yamaha of Japan, is making a preferential allotment of equity shares worth around Rs.10 crore to the promoters.

1998 - The Company turnover declined to Rs.69.39 crores due to the South
East Asian Currency Crisis. - The Comp. launched 4 stroke 600 watts LG 700 K model which received a favourable response.

1999 - Birla Yamaha is setting up a genset manufacturing facility in Himachal

Pradesh, its second in the country. - The Comp. has entered into a long term agreement with Yamaha & is concentrating on exports during the lean months, gives the Comp. the twin advantage of balancing manufacturing in addition to earning some additional revenue.

2000 - The Comp. have received 11,20,000 equity shares of company, jointly
held by Mr. Sundrashan Malpani & Mr. Ashutosh Malpani both NRIs for 19

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transfer in the name of Transvestments Pte Ltd., [TPLs], Singapore an Overseas Corporate Body. - The Comp. has introduced a range of eco-friendly generators under the brand, Birla Ecogen.

2002-Birla Yamaha Ltd has informed that Mr Vijay Agarwal has been
appointed as an Additional Director of Company.

2004-Birla Power Solutions, a Yash Birla Group company, has tied up with
Hindustan Petroleum Corp Ltd [HPCLs] to produce electricity generators, which run on LPG.

2007
Birla Power Solutions Ltd has informed that Mr. Biswajit Sarkar has been appointed as Chief Executive Officer [CEOs] of Comp. w.e.f. March 20, 2007.Birla Power Solutions Ltd has informed that the Board of Directors of Comp. at its meeting held on October 31, 2007, inter alia, has Appointed Mr. Kalyan Bhattacharya as Whole time Director of Comp. for a period of three years w.e.f. November 01, 2007.

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3.3 PRODUCT AND SERVICES

Birla Power Solutions Limited (Formerly known as Birla Yamaha Limited) is engaged in manufacturing portable generators, Inverters, Home UPS. The Company is presently producing a range of Generators catering to the power requirements of 500W to 40KW

Silent Portable Generators The Ecogen Generator range is the world's first co friendly low-emission, low noise generator made of high "tech alloyed components. The generator is packed with features such as fuse less circuit breakers, fan system and an Acoustic cover to reduce noise significantly.

Higher Capacity Silent Generators The Company's range of higher capacity Gensets (7.5KVA - 40KVA) addresses to demands of the telecom, defence and other institutional customers.

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5 KVA DIESEL GENSET The 5 kva Portable Genset range is the India t first co friendly low-emission, low noise Diesel generator made of high-tech alloyed components. The generator is packed with Features such as fuse less circuit breakers, Tamperproof oil alert system, pilot, lamp, Non fuse Breaker, Reverse and an Acoustic cover to reduce noise significantly.

Alternate Fuel Based Generators The Company has also introduced a range of LPG/CNG generators for domestic and institutional customers. This provides our customers with an econo -mical and environmentally Friendly means to meet their energy needs.

Multi Purpose Engines (MPEs) The power packed MPEs can playa number of varied roles and can substitute machines such as floor polishers, concrete mixers and rail drilling machines among others.

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Pumpsets The Birla Ecoshakti 4 stroke pumpset redefines reliability and also provides

unmatched power, which means more power per drop of fuel.

Sprayer The Company has also introduced a range of Sprayer for domestic and institutional customers. This provides our customers with an economical and environmentally friendly means to meet their energy needs.

Inverters Inverters are available in a wide capacity range of 1OO VA to as high as 10KVA.The most popular range is the 500/800/1500 VA that enables the user to run fans, tube lights and a television set.

Batteries Birla Power Battery is an Industrial Non Automotive battery. The heavy duty thick lead terminals aid in better connection and also help in providing minimum voltage drops in the circuit.

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Power Tiller The Company has also introduced a range of Power Tiller for agriculture and Farm customers. This provides our customers with an economical and environmentally friendly means to meet their energy needs.

Lawn Mower The Company has also introduced a range of Lawn Mower for domestic and

institutional customers. This provides our customers with an econo - mical and environmentally friendly means to meet their energy needs.

Y B Series The Ecogen Generator range is the world's first co"friendly low-emission, low noise generator made of high"tech alloyed

components. The generator is packed with features such as fuse less circuit breakers, fan system and an Acoustic cover to reduce noise significantly.

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COMPETITION
The Competition faced by the company in its various product lines are as given below:

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CLIENTS
The following table enumerates the various growth segments as also the anticipated annual demand for the same.

Source: AC Nielsen & ORG-MARG Survey

TELECOM INDUSTRY

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GOVERNMENT SECTORS

BANKING/ FINANCIAL SECTOR

TELEVISION / MEDIA SECTOR

AIRLINES INDUSTRY

MARKET:
The domestic Genset market is currently catered by 2 players Honda Siel and BPSL

The major competitor for BPSL has been Honda Siel. The product range and the quality of the product have been comparable all through last several years. 28

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After the Exit of Yamaha there has been a decline in market share in domestic as well as export market. There has been no new product launch in higher segments since last few years. Compounding the effect has been the slow growth in the portable Genset Industry.

MARKETING STRATEGY The surveys conducted by Centre for Industrial & Economic Research has revealed significant market trends that are produced below: Increasing consumer awareness on products and product value Leap fogging to sunrise areas Multidirectional market penetration with new consumer shifts Shift from functional to convenience goods MNC invasion in large number of product markets Market are competitive and oligopolistic at the same time Change of sellers market to buyers market Injection of monopolistic power via strategic USPs and brand building Attributing illusory USPs to brands to gain market penetration Promotion acquiring increasing value

Emergence of e business as a major marketing force Ascendancy of product quality consumer preferences
Up gradation of delivery systems with perceptible consumer orientation BPSL main marketing strategy will be focused on expansion of the existing products, entering into higher capacity diesel range of engines/pump sets. BPSL would be registering its products with local land development banks, NABARD, State Agriculture, Horticulture Departments and emphasizing on tieups with nationalised rural banks for loans/subsidy schemes. Further the company plans to sell engines through application products in Railway, govt. departments like MTNL, BSNL, NDMC, Delhi Jal Board, MCD etc. 29

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For above product expansion, BPSL intends to penetrate rural market by organising various promotional fairs, participations in Kissan Bazzars.

Overall Marketing Strategy has been focused on marketing of goods to customers who want value for their money. Customer retention and their repeat purchase motive have been kept in mind while devising our marketing strategy. BPSLs growth strategy is focused towards expanding its existing product lines, entering into new application areas in the agricultural and construction industry and to launch higher capacity Gensets and Engines running on Diesel and LPG fuel.

SWOT ANALYSIS OF BPSL STRENGTHS:

BPSL enjoys strong brand recognition and recall. BPSL has almost a complete range of products making it a single window for power solutions. The plants of the company are ISO 9001 and ISO 14001 certified by Underwriters Laboratories Inc., USA. All products manufactured by the Company are fully emission compliant and ISI marked. BPSL has a very strong dealer distributor network through which the products of the company are marketed and sold. BPSL has tied up with global players like Kipor to have a technological edge. The manufacturing facility of the company is situated on the main high way between Haridwar and Dehradun which is well connected with Delhi by road / rail and there is an abundance uninterrupted power supply.

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WEAKNESS
Lack of new product launch after the exit of foreign partner has resulted in a decline in the market share for BPSL. BPSL is operating in the lower range of in house engines & pumps, which is a highly competitive segment.

Opportunities
The Company can increase its market share by expanding capacity. The Company plans to introduce higher KVA gensets and water pumps to capitalize on growing demand in this segment. It can increase market share in the mid-size gensets market by increasing institutional sales. Increase presence in the agricultural and construction sector by offering a higher range of diesel engines. Export market is still untapped specially for engines, alternators, Inverters. Erratic power situation in the semi urban & rural towns has resulted in increase in demand. Power requirement of consumers increasing opportunity for adding new higher capacity products Rural demand improving Shift towards LPG/ CNG based gensets has opened new avenues for the company.

THREATS Portable genset industry growth has shown decline in recent times.
Cheaper products from China are giving stiff competition to local players.

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3.4 FUTURE PROSPECTIVE OF BIRLA POWER

Birla Power to invest Rs 5,000 cr in thermal & solar power projects. Birla Power Solutions will invest nearly Rs 5,000 crore to set up thermal and solar power projects in the next three years, according to Chairman Yash Birla. Mr Birla on Wednesday said his group has floated a special purpose vehicle (SPV) Birla Urja to run the power business. Birla Power holds a 51% stake in the SPV, while the balance is with group companies.

According to him, his group will set up 600 mw of thermal power plant capacity in Maharashtra and 125 mw solar power capacities in Andhra Pradesh, Rajasthan, Uttaranchal and Haryana. The investments in the power projects will have a debt-equity ratio of 70:30. The equity component will be funded through various options, including contribution from the promoters and private equity funds, while debt will come from institutions like State Bank of India and Power Finance Corporation, Mr. Birla said.

However, analysts are unclear on how the group will fund such large projects. A power analyst said Mr. Birla needs to chip in least Rs 1,500 crore to finance the projects. The present market capitalization of Birla Solutions is Rs 160 crore. The stock gained 10% to close at Rs 3.91. Birla Cotsyn , another company of his group, is valued at Rs 120 crore.

Half of the power generated from the plants will be sold to state distribution companies, while the balance will be for the captive use of group facilities, said Mr. Birla. Meanwhile, Birla Power on Wednesday informed BSE that its board would meet on March 25 to discuss the fund-raising options.

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BIRLA POWER ARM EYES JV WITH US FIRM IN SOLAR ENERGY

The diversified Yash Birla Group is likely to sign a joint venture agreement with a US-based company to set up and maintain solar power plants in India. According to sources, Birla Urja Ltd, a power utility subsidiary of Birla Power Solutions Ltd., (BPSL), is in advanced stage of talks with the US-based solar energy service provider, which manages over 300 sites globally. The proposed JV will focus on building; managing and maintaining grid connect solar power plants for BUL. It is learnt that the US firm has been developing, financing, operating and monitoring solar plants for two decades. An email sent to Yash Birla Group spokesperson did not elicit any response. Recently, the group announced that Birla Power Solutions Ltd., (BPSL) will invest Rs 3,000 crore to set up a 600MW coal-fired thermal power plant that will be commissioned within the next three years under Birla Urja Ltd. BPSL will additionally invest Rs 2,000 crore to set up 125MW of solar photo-voltaic power plants over the next three years. In the first phase, the allocation will be divided as: Haryana (10 MW), Uttarakhand (5 MW), Rajasthan (5 MW) and Andhra Pradesh (50 MW).

BUL has already applied for allocation of 300 acres from the Andhra Pradesh Government for setting up a 50 MW solar PV grid Connect Power Plant and already applied for licenses for setting up these Photovoltaic grid Connect Power Plants, a person close to the development said. Photovoltaic (PV) is popular method for converting energy from the sun into electricity by using solar cells. Solar PV cells convert solar radiation into direct electricity.

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3.5 FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION.

President

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MARKETING DEPARTMENTS OF THE ORGANISATION

DELHI BRANCH

MANGING DIRECTOR

CHIEF OPERATING OFFICER

VICE PRESIDENT

GENERAL MANAGER

REGIONAL HEADS

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MANAGEMENT OF THE ORGANIZATION.

Name

Designation

Yashovardhan Birla P V R Murthy Upkar Singh Kohli Y P Trivedi Rajesh V Shah M S Arora

Chairman / Chair Person Managing Director Independent Director Independent Director Independent Director Additional Director

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RESEARCH METHODOLOGY
3.1 TITLE OF THE STUDY A STUDY ON COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES OF BIRLA POWER AND HONDA SIEL IN PORTABLE GENERATORS.

3.2 STATEMENT OF THE PROBLEM

The problem of this study is to find out why Birla power is lagging behind with Honda Siel. This study is to know about importance of promotional offers in business.

3.3 OBJECTIVE OF STUDY

The main objectives of the study are to understand the following areas 1. To understand the different marketing communication tools organization is using. 2. Comparative study of communication tools with its competitors. 3. To know how effective is current tools in achieving goals. 4. To understand the different tools of promotional channels.

3.4 SCOPE OF THE STUDY

1. It improves market communication. 2. How to reach to its target customer cost effectively. 3. Correct information at correct time. 4. Decrease the communication tool cost. 37

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3.5 LIMITATIONS OF THE STUDY The main limitation of the study is 1. Its a time consuming. 2. The data collected is some cases are based. 3. Certain respondent were not co-operative in answering the questionnaire, thus hampering the results. 4. Limitation of resources is a major constraint in Project.

3.6 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically.

RESEARCH DESIGN
Research design is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data.

DESCRIPTIVE RESERCH DESIGN Here I am using descriptive research design for my study. It includes surveys and fact finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. Descriptive research studies are those
studies which are concerned with describing the characteristics of a particular individual, or of a group, whereas diagnostic research studies determine the frequency with which something occur or its association with something else.

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The design in such studies must be rigid and not flexible and must focus attention on the following. a) Formulating the objective of the study. b) Designing the method of data collection. c) Selecting the sample. d) Collection of data. e) Processing and analyzing the data. f) Reporting the findings.

DATA SOURCES There are two types of sources of data 1. PRIMARY DATA 2. SECONDARY DATA

1. PRIMARY DATA

The primary data are those which are collected afresh and for the first time,
and thus happen to be original in character. a) b) c) Observation method Interview method Through questionnaires

2. SECONDARY DATA

The secondary data are those which have already been collected by someone else and which have already been passed through the statical process. Secondary data may either be published data or unpublished data.

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Published data are; (a) Various publications of the central, state and local governments. (b) Various publications of the foreign governments or of international bodies. (c) Technical and trade journals. (d) Reports and publication of various associations connected with business and industry, banks etc. (e) Books (f) Magazine (g) Newspapers (h) Publish records

Unpublished data are a) b) c) d) e) Diaries Letters Autobiographies Scholars Research workers

QUESTIONNAIRE DESCRIPTION
Around 10-12 questions will be prepared for questionnaire. Mostly of them are closed one and 1-2 will be open one.

3.7 RESEARCH INSTRUMENT

The study is based on survey technique. The study consists of study of market communication tools. For the purpose of the study dealers, distributors and clients are picked up and their views solicited on different parameters. Personal interviews and informal discussions were held with marketing department people of Birla Power to know their organization strategy. Further applying a simple statistical technique processing of the data collected has been done and conclusions have been reached.

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DATA ANALYSIS AND INTERPRETATION OF DATA

4.1 ANALYSIS AND INTERPRETATION OF DATA

Table 1 Table showing which affects customer decision most while purchasing?

Category Advertisement of Brand Performance Price After Sales Service Total

No. of customers 20 35 28 17 100

Percentage % 20% 35% 28% 17% 100%

Source: Survey Data Analysis: The above table shows 20 people see advertisement of brand, 35 people see the performance, 28 people see price and 17 people checks the after sales service most while purchasing the generators.

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Pie chart 1 Showing which affects customer decision most while purchasing

35% 30%

35%

28% 25% 20% 15% 10% Sales 5% 0% 17% 20%

Inference:

The above chart shows 20% people see advertisement of brand, 35% see the performance, 28% see price, and 17% checks the after sales service. 42

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Table 2

Table showing which promotional tool more effective in selling generators

Category Personal Selling Through website Print media Sales promotion Total

No. of customers 26 28 24 22 100

Percentage % 26% 28% 24% 22% 100%

Source: Survey Data

Analysis: The above table shows which promotional tool more effective in selling generators. 26 people goes for personal selling, 28 people goes through website, 24 people for print media, and 22 for sales promotion.

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Pie chart 2 Showing which promotional tool more effective in selling generators

30% 25% 20% 15% 10% 5% 0%

26%

28% 24% 22%

Sales

Personal Selling

Through website

Print media Sales promotion

Inference: The above chart shows which promotional tool more effective in selling generators. 26% people goes for personal selling, 28% people goes through website, 24% people for print media, and 22% for sales promotion.

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Table 3 Table showing ranking of these brands according to customer preference.

Category Crompton Greaves Birla Power Mahindra Honda Siel Total

No. of customers 18 32 12 38 100

Percentage % 18% 32% 12% 38% 100%

Source: Survey Data Analysis: The above table shows ranking of these brands 38 people like Honda Siel, 32 people like Birla Power, 18 people like Crompton Greeves and 12 people like Mahindra brand.

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Pie chart 3

Showing ranking of these brands according to customer preference.

40% 35% 30% 25% 20% 15% 10% 5% 0% Crompton Greaves Birla Power Mahindra Honda Siel 12% Sales 18% 32% 38%

Inference: The above chart shows ranking of these brands 38% people like Honda Siel, 32% people like Birla Power, 18% people like Crompton Greeves and 12% people like Mahindra brand.

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Table 4

Table showing response towards Birla power brand

Category Positive Satisfactory Somewhat negative Total

No of customer 59 21 10 100

Percentage % 59% 21% 10% 100%

Source: Survey Data Analysis: The above table shows customer response towards Birla power brand 59 people think positively, 21 people think satisfactory and 10 people think some what negative.

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Pie- Chart 4

Chart showing response towards Birla power brand

59% 60% 50% 40% 30% 20% 10% 0% Positive Satisfactory Somewhat negative 21% 10% Sales

Inference: The above chart shows customer response towards Birla power brand 59% people think positively, 21% people think satisfactory and 10% people think somewhat negative.

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Table 5

Table showing Does Birla delivered product on time as and when requested by customer

Category Always Sometimes Never Total

No of customer 53 37 10 100

Percentage % 53% 37% 10% 100%

Source: Survey Data Analysis: The above table shows does Birla delivered product on time as 53 people say they always do, 37 people say sometimes and 10 people say never.

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Pie-Chart 5

60% 50% 40% 30% 20% 10% 0%

53%

37% Sales

10%

Always Sometimes Never

Inference: The above chart shows does Birla delivered product on time as 53% people say they always do, 37% people say sometimes and 10% people say never.

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Table 6

Table showing why customer prefer Honda generator over Birla Power

Category Better Product Special offers After sales service Brand name Total

No. of customers 13 35 28 24 100

Percentage % 13% 35% 28% 24% 100%

Source: Survey Data Analysis: The above table shows customer prefer Honda generator over Birla Power 13 people believe it is a better product 35 people believe for special offers 28 people believe due to after sales service and 24 people think due to brand name.

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Pie-Chart 6

Showing why customer prefer Honda generator over Birla Power

35% 30% 25% 20% 15% 10% 5% 0% Better Product 13%

35% 28% 24% Sales

Special offers

After sales service Brand name

Inference: The above chart show customer prefer Honda generator over Birla Power 13% people believe it is a better product 35% people believe for special offers 28% people believe due to after sales service and 24% people think due to brand name.

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Table 7

Table showing do customers get any promotional offer from Honda Siel

Category Yes No Total

No of customer 73 27 100

Percentage % 73% 27% 100%

Source: Survey Data Analysis: The above table shows do customers get any promotional offer from Honda Siel 73 people say yes and 27 people say no.

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Pie- chart 7

Showing do customers get any promotional offer from Honda Siel

73% 80% 60% 40% 27% 20% 0% YES NO Sales

Inference: The above chart show do customers get any promotional offer from Honda Siel 73% people say yes and 27% say no.

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Table 8 Table showing do customers attend trade shows or industry events

Category Yes No Total

No of customer 23 77 100

Percentage % 23% 77% 100%

Source: Survey Data Analysis: The above table shows do customers attend trade shows or industry events 73 people say yes and 27 people say no.

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Pie- chart 8

Showing do customers attend trade shows or industry events

73% 80% 60% 40% 27% 20% 0% YES NO Sales

Inference: The above chart show do customers attend trade shows or industry events 73% people say yes and 27% say no.

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Table 9

Table showing if dealers /guide help you in deciding on a brand of generators.

Category Yes No Somewhat Total

No of customer 56 27 17 100

Percentage % 56% 27% 17% 100%

Source: Survey Data Analysis: The above table shows do dealers /guide helps you in deciding on a brand of generators, 56 people say yes 27 people say no and 17 people say somewhat they do.

Pie-chart 9 57

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Showing if dealers /guide help you in deciding on a brand of generators.

56% 60% 50% 40% 30% 20% 10% 0% Yes No SOMEWHAT 17% 27% Column1

Inference: The above chart show if dealers /guide help you in deciding on a brand of generators 56 %people say yes 27% people say no and 17% people say somewhat they do.

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Table 10

Table showing Honda Siel is ahead in e-business compare to Birla Power due to

Category Information User friendly Online support Trouble shooting tips online Total customer

No. of customers 13 35 care 28

Percentage % 13% 35% 28%

24 100

24% 100%

Source: Survey Data Analysis: The above table shows why Honda Siel is ahead in e-business compare to Birla Power, 13 people say due to information given in website, 35 people say it is user friendly, 28 people say it gives Online customer care support and 24 people say it gives trouble shooting tips online.

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Pie-chart 10

Showing Honda Siel is ahead in e-business compare to Birla Power due to

35% 30%

35%

28% 25% 20% 15% 10% 5% 0% Information User friendly Online customer Trouble care support shooting tips online 13% Sales 24%

Inference: The above chart shows Honda Siel is ahead in e-business compare to Birla Power, 13 people say due to information given in website, 35 people say it is user friendly, 28 people say it gives Online customer care support and 24 people say it gives trouble shooting tips online.

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Table 11

Table showing which kind of promotion offer will you like from the following

Category Easy finance scheme Free service week Low monthly payment scheme Discounts on payment Of cash Total

No. of customers 27 22 26

Percentage % 27% 22% 26%

25

25%

100

100%

Source: Survey Data Analysis: The above table shows which kind of promotion offer customer will like from the following 26 people say they will like easy finance scheme, 22 people say free service week, 27 people say low monthly payment scheme, 25 people say discounts on payment of cash.

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Pie-chart 11

Showing which kind of promotion offer will you like from the following

30% 25% 20% 15% 10% 5% 0%

27% 22% 26% 25%

Sales

Easy finance scheme Free service Low monthly week payment Discounts on scheme payment Of cash

Inference: The above chart shows which kind of promotion offer customer will like from the following 26% people say they will like easy finance scheme, 22% people say free service week, 27% people say low monthly payment scheme, 25 %people say discounts on payment of cash.

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Table12

Table showing if customer is satisfied with after sales service of Birla Power

Category Yes No Total

No of customer 31 69 100

Percentage % 31% 69% 100%

Source: Survey Data Analysis: The above table shows are customer satisfied with after sales service of Birla Power, 31 people say they are satisfied with and 69 people say they are not satisfied.

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Pie-chart 12

Showings if customer is satisfied with after sales service of Birla Power

80% 60% 31% 40% 20% 0% Yes

69%

Sales

No

Inference: The above chart shows are customer satisfied with after sales service of Birla Power, 31% people say they are satisfied with and 69% people say they are not satisfied.

SUMMARY OF FINDINGS 64

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1. While selecting generators 35% customer mostly see the performance of the generators. 2. According to customer website is most effective promotional tool in selling generators. 3. Honda is most preferred brands according to customer from the given brands. 4. 59% people think positively for Birla Power brand.

5. 53% customer says Birla Power delivered product on time as and when requested by customer.

6. 35% customer prefer Honda generator over Birla Power because of special offers. 7. 73% people say Honda gives promotional offer over Birla power.

8. Only 23% customer customers attend trade shows or industry events.

9. 56% people say dealers /guide help in deciding on a brand of generators. 10. 35% people say Honda Siel is ahead in e-business compare to Birla Power due to user friendly.

11. People mostly prefer easy financial scheme.

12. Most of the people are not satisfied with after sales service of Birla Power.

CONCLUSIONS & RECOMMENDATION

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CONCLUSIONS
It was really a great learning experience for me to do my project in such a reputed multinational company. Birla Power is a growing company even though they have strong competitor in the market. They should increase their services and frequency of advertisement to stabilize their position in the market. The company has very good chance to increase the sales with the help of Brand Loyalty of customers by improving after sales service and by improving promotion strategy.

LEARNING
As a P.G.D.M student I have learned that without practical knowledge our course is incomplete. 1. Day by day I gained knowledge of market situations. 2. Company trained us how to make good relationship with dealers & customers. 3. How to talk with dealers & customers and convince them. 4. I learned the different marketing tools & functioning of marketing communication. 5. I got to know the difference between industrial and consumer able market communication. 6. I here also learned how to implement my theoretical knowledge in practical situation.

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RECOMMENDATION & SUGGESTIOS

1. The company should provide excellent after sales services to compete with their competitors. 2. The company should properly handle the queries of the customers. 3. The company should focus on promotional offer, as it is found that these are the main factors influencing a customer to purchase a Birla power product. 4. The company should provide more support to their customer as of their competitors. 5. These support such as O% Finance & Exchange Offer, Easy Finance, FREE Service Week, Low minimum monthly payments etc. 6. Providing customer care support through online. 7. Providing trouble shooting tips online. 8. Better co-ordination with distributors because local

companies are giving more margins so they are changing customers minds. 9. Keep an eye on grey market means duplication of the generators. 10. Aggressive promotion strategy compare to Honda

Generators.

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BIBLIOGRAPHY

Text book Research methodology book by Mahesh Malhotra. Marketing Management by Philip Kotler.

Website www.birlapower.com www.google.com www.yahoo.com

Other sources Companys annual report Brochure Pamphlets Employees of Birla Power Magazines

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