B2B Marketing (Business Marketing)

8/13/2019 B2B Marketing (Business Marketing)

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Group Assignment Submission

On

B2B Marketing(Business Marketing)

Submitted To:- Submitted By:-

Prof. Rajeev Kamble

Asst. Professor

IMT Nagpur

Sec: B2C.

Chirag Bansal 2012101

Devanshu Divya

Eshan Chopra

Hazari Shravan

Himanshu Aggarwal

Nikita Kumar 2012187


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Contents

1.

Introductiona. Insight of the Company

b. Products offered

2. Client-key accounts

3. Value they create for customers

4. Marketing Moves

5. Promotional strategy

6. Sales and sales force management format

7. Value they can create in future-our insights on strategy and process


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Company Overview

Voltas Limited is a Public Limited Rs 2500 Crore multi divisional company, engaged in the

air conditioning and engineering business. It was incorporated on 6th September 1954. Tata

Sons Ltd and Volkart Brothers, a Swiss Company operating in India since1851, promoted

this company and hence the name VOLTAS. Voltas, A Tata Group Company is India's

premier air conditioning and engineering services provider. It provides engineering solutions

for a wide spectrum of industries in areas such as heating, ventilation and air conditioning,

refrigeration, climate control, electro-mechanical projects, textile machinery, machine tools,

mining and construction, materials handling, water management, building management

systems, pollution control and chemicals. Voltas have capability in the manufacture of

room/split air conditioners, industrial air conditioning and refrigeration equipment, water

coolers, refrigerators, visi-coolers, freezers, forklift trucks and large water supply pumps. All

these products bear the stamp of state-of-the-art automated manufacturing plants resulting in

consistently high quality and reduced costs. Company is partnered with international

companies such as LG Electronics and Samsung of Korea and Fedders International of USA

for 'manufacture only' alliances producing low cost, high quality refrigerators and room air

conditioners. The companys promoters, Tata Sons hold around 28 per cent of the shares inthe company. Foreign investors and the public hold around 21 per cent share each, while

domestic financial institutions and non-promoter corporates hold the balance. Voltas has

recently gone through a comprehensive restructuring exercise, aimed at bringing the core to

the fore. This exercise, conducted between 1997-1998 and 2001-2002, comprised of

redefining the business focus of Voltas as being an engineering services company.

Accordingly it involved reorganizing the companys business portfolio, exiting non-core

businesses and exploiting unproductive assets to generate revenues, rightsizing the

organization through focused voluntary retirement schemes, aggressive cost cutting and

financial re-engineering.

The company mainly operates in the following areas:

Company involved mainly into the design and manufacture of industrial equipment,

management and execution of air conditioning and public work projects, sourcing,

installation and servicing of technology-based systems, and representation of global

technology leaders, serving diverse industrial sectors and applications. Voltas' operations


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have been organized into three independent business-specific clusters. Each of these has its

own facilities for market coverage and service to customers. Namely:

Electro-Mechanical Projects & Services

Electrical, Mechanical, HVAC & Refrigeration Solutions

Electrical, Mechanical & HVAC Solutions (International)

Water Management & Treatment

Engineering products & Services

Textile Machinery

Mining & Construction Equipment

Machine Tools

Materials Handling Solutions

Unitary Cooling Products for Comfort & Commercial Use

Cooling Appliances

Commercial Refrigeration

Air Conditioning Industry

Air Conditioners give respite from summer heat and have become a necessity. They have

made our lives comfortable. After a hard day's work you return home and switch on your air

conditioner and let the fresh air relax you and rejuvenate your spirits. Once again you are

ready to shop out with your family or help your spouse in household work or spend some

quality time with your kids. India you desperately need an air conditioner. In this scorching

Unitary

Cooling

Product

Engineering Products

& Services

Electro-Mechanical Projects &

Services


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heat it is only an air conditioner that can give you some respite and make you livelier and

energetic. Earlier buying an air conditioner was not easy.

It was very costly and middle class families can't afford

but now purchasing an air conditioner in India is no more

tough and expensive. There are various companies

offering air conditioner like LG, Hitachi, Samsung,

Onida, Godrej, Sanyo, Cerrier, Bluestar, Voltas, Amtrex,

OGeneral etc. These companies have various offices all

over India. They have their own store and shops selling

air conditioner of all types.

Air conditioner comes in various sizes and shapes. Some air conditioner does not even look

like an air conditioner especially ones offered by LG. Their surfaces are too good looking and

look like a beautiful scenery. There are room air conditioners, split air conditioners, car air

conditioners, ductless air conditioners, air ceiling conditioner mount system etc.

Types of Air Conditioners offered by Voltas:

Now when we talk of air conditioners, there are a number of makes and models available in

the market. So as to say that there is a variety of sizes and types of ACs available for cooling

rooms of different sizes. And in order to choose the perfect air conditioner for your room it is

always advisable to have some extra knowledge about the types of AC and their purpose as to

which one is best for what kind of room. With the variety of air conditioners available in the

market, it is very difficult to choose the most suitable AC for our home or office. And if we

dont have a clue about air conditioner then it adds to our own disadvantage. There are

mainly five types of air conditioner:

1) Window mounted:

These are air conditioners that are usually fixed through the windows, which have been

designed typically for double hung windows. And it is one of the most commonly used air

conditioners as this is best for cooling a single room for the simple reason that these are easy

to install, cheaper and works with almost all the wiring system of your home. The price range

varies from Rs. 12,000 to Rs. 27, 000on an average for room size the range varies from 10

meter square - 84 meter square.


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2) Split Air conditioner:

This type of air conditioner is best suited for rooms whose area is up to 60 meter square and

might cost you (approx.) around Rs.16,000 to Rs.35,000 on an average (multi-split system).

A split air conditioner consists of two parts: the indoor unit which is also called as the

evaporator unit and the outdoor unit which is known as the external condenser box and is

installed outside the room or the building. And this is one main reason why most people opt

for split ACs, as during the operation, it doesnt make any noise which might distract your

attention or annoy you. Split ACs are permanent systems which can either be installed at the

floor level or on the walls or on the ceiling. However, it can be very noisy and may create

nuisance for your neighbors.

3) Cassette Air Conditioner:

These are air conditioners that are usually fixed into the

sealing. This ultra-thin air conditioner can be installed in

any narrow ceiling. These are usually fit in places where

it is not possible to fit either a Window or Split Air

conditioner. The price range varies from Rs. 68,500 to Rs.

86,500on an average.

4) Slimline Air Conditioner:

This type of air conditioner has been one of the most popular

types for certain reasons. One major reason is that they can

be easily moved from one room to the other and is often

referred to as a mobile air conditioner. Being portable, it is

easier to store when the summer season wears off. It is best

suited for smaller rooms and for those people who movestheir houses very frequently. The only minus point is that

they are quite expensive and the exhaust tube needs to be

fitted each time. It has a separate indoor and outdoor

section. It is recommended for rooms whose area is up to

35 meter square.


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5) Ductable Split Air Conditioners:

Ductable air conditioners are those that are used to

condition more than one room, in the same building.

These kind of air conditioners are usually seen in

institutions, big organizations, hotels etc. Ductables comes

indifferent tonnages depending upon the space needed to

be cooled. The prices of Ductable vary depending upon

the tonnage. Out of all the above mentioned air conditions

the maximum selling would be the Split air conditioners .Though window a/c will cost less

and is easier to install. The downside is you will lose your view through the window and you

will have more air leakage than a split unit. A window unit will be less efficient than the split

also a slit a/c is much quieter than a window a/c. The split unit will add more value to the

home and will be quieter.


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Clients

Many institutions are the business customers of Voltas Airconditioning. The following are a

few examples

ITC Mumbai

Dell Chandigarh

Sahara Ganj Mall, Luckhnow

Hyderabad International Institute

Amritsar's Trilium Mall

State Bank of India ATMs

New clients added to their list are:

Voltas, has received a large order from CMS Infosystems (CMSI), for 10,000 split

AC units to be deployed at thousands of ATM sites of State Bank of India, spread

across the country.

The order follows from CMSI's recent victory in their tender bid for air conditioning 7805

ATM locations of SBI, requiring totally 15,000 split ACs. Practically every leading AC brand

has been in competition to meet CMSI's requirement, with Voltas emerging the winner.

Voltas expects to deliver most of the 10,000 units by end-December. Meanwhile, there is

every expectation that the order will be increased to include the remaining 5,000 AC units as

well.

Voltas provided HVAC (Heating Ventilation & Air Conditioning) for almost 7 lakh

sq ft of Amritsar's Trilium Mall, the very largest in Punjab, developed by Tata Realty

Infrastructure.

The project's scope of work also included ventilation systems for 3 lakh sq ft of

basement area, as well as a sophisticated Building Management System (BMS)

covering the entire mall.

The HVAC set-up features an 8000 TRH thermal storage systemone of the largest

such installations in North Indiayielding high levels of energy-efficiency and

reducing the overall power demand as well as operational costs. 5 screw chillers of

300 TR provide the cooling effect, conveyed over the vast mall area through 11 kms

of piping and 9500 sq m of ducting.

Integrated Health Centre and Workers' Hospital, a 120-bed healthcare facility in the

Old Industrial Area of Qatar. With a timeline of 24 months, Voltas' scope of work

covers HVAC, electrical works, ELV systems, and plumbing & fire-fighting.


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Sports Hall and Administrative Office in Qatar, a 5350-seat indoor stadium being

built to host the World Cup Handball Competition scheduled for January 2015.

Within a mere 12-month timetable, Voltas will execute complete MEP works,

including HVAC, electrical works, ELV systems, and plumbing & firefighting.


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Value creation

Energy Management is a complete value-added service which Voltas offers. It addresses a

critical cost area in any built environment. For example, HVAC would probably account for

30 to 45% of total energy consumption.

Voltas' edge in energy-efficient engineering

To this task, Voltas brings its hands-on experience in HVAC&R, and electro-mechanicalsin

general, extending over more than five decades. That's a large and priceless reservoir of

intellectual capital.

We also have an intimate knowledge of plant operations and maintenance, and skills in

trouble-shooting. When putting together a solution, we draw on an extensive range of energy-

saving products, striking the right balance between input and output, cost and performance.

That's the equation which spells exceptional value.

Voltas has tied up with numerous manufacturers of worldwide renown for assorted energy-

saving products, adding up to a comprehensive energy-efficient HVAC system.

We also undertake retrofitting jobs to make existing systems and plants more

Energy-efficient

Over the years, Voltas has set up HVAC&Rinstallations for atomic energy plants,

chemical & fertilizer plants, computer facilities, electronics assemblies, hospitals,

Information Technology parks, mercantile ships, multiplexes, naval warships,

ordnance factories, pharmaceuticals production, power plants, research laboratories,

shopping malls, synthetic fiber plants, telecommunications facilities and a host of

others.

We manage energy efficiency of systems through:

a) Energy-efficient chillers

b) Waste heat utilization through vapour absorption heat pumps

c) Introduction of ozone injection to reduce plant load, air conditioning load andenergy consumption, in collaboration with Ruks (Canada)

d) Variable Frequency Drives (VFD)

e) Engineered energy storage system

f) Heat recovery wheels

g) Integrated Building Management System


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In these tasks, we bring into play a diversity of microprocessor-controlled products

and systems, ranging from 5.5 TR to 2000 TR.

Over the last five decades, Voltas has time and again been the first in India with new

technologies and solutions in HVAC&R. These include:

Co-generation absorption chillers to work with multiple heat sources such as

exhaust flue gases, jacket hot water from engines, and supplementary/flue firing

by oil & gas in a single unit

Variable Refrigerant Flow (VRF) using digital scroll technology

Ultra low-temperature process refrigeration

Indoor air quality systems using controlled ozonized injection

Duct cleaning system for improvement of indoor air quality

Compact & efficient water-cooled ductable split units

Microprocessor as a standard feature for all HVAC systems

The INTELLISYS range of packaged units with choice of compressors

VSCADA (Voltas Supervisory Control And Data Acquisition), the most cost-

effective solution for buildiing management systems

Manufacturing values

Voltas' manufacturing plants have all been certified for ISO 9001:2000 by TUV of India.

Emphasis is placed not just on product quality and consistency, but on economies and

efficiencies which deliver greater customer value for less outlay.

The highest priority is given to protection of the environment, with effluent treatment plants

which operate continuously around the clock. The statutory norms of Directorate of IndustrialSafety & Health (DISH) are strictly complied with.

Product and equipment engineering

Voltas' engineering skills and knowledge base are seen in advanced design and development,

as well as adaptation and improvement, of products and equipment.

The Voltas approach of intelligent innovation and customized problem-solving is given fullplay through use of advanced design software. These include the RR programme for coil


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designing, and AutoCAD Mechanical Series 6 with Solid Modeling package ('Inventor') for

alternative designs and quick evaluations.

State-of-the-art shop floor equipment and manufacturing processes yield products,

components and assemblies of high precision and complexity, validated through a rigorousQA cycle.

Voltas' integration advantages

Single-window approach Harmonization of all phases

Integrated value engineering solution Improved serviceability

Interface management and enhanced

coordination

Reliability

Voltas provides electro-mechanicaland refr igeration soluti ons, configured with the best ofequipment manufactured in-house, as well as outsourced from companies overseas and in

India through strategic alliances. Our product range consists of packaged un its, ductable spli t

units, chil ler packages, co-generation Vapour Absorption Machines, low temperature

refr igeration equipment, Variable Refr igerant Flow (VRF)and value-added systems such

as I ndoor Air Qual ity systems, Bui lding Management Systems and duct cleaning faci li ties,

among others. It has one of the most extensive customer care networks, catering to the

requirements of customers across the country.

Major Marketing Moves

Growth in market share has resulted from a combination of factors. The primary drivers of

growth have been revamped distribution, an augmented model mix, consumer-centric brand

positioning and a dedicated result-oriented team.

Meticulous market mapping of AC distribution resulted in extensive nationwide coverage.

Our retail footprint has grown significantly in the past 4-5 years, from over 1000 consumer

touch points to more than 5800 today.

A strategic shift from traditional sales and service dealers to a more penetrative retail

aggregation model based on direct dealers and distributors helped multiply sales by opening

up new opportunities.

Voltas pioneered the concept of energy-efficiency in air conditioners, later an industry norm.

This paid dividends in terms of sales. The recent introduction of all-weather ACs was also a


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strong demonstration of our product differentiation capabilities and brought in a significantly

larger number of customer queries at points of sale.

In terms of brand positioning, Voltas has changed in response to the ever-changing consumer

landscape. In the mid-2000s, with the advent of international brands, Voltas pitched itself as

India-centric. Advertising and promotional campaigns focused on India ka dil, India ka

AC, to convey pride in being andbuying Indian, giving the brand an identity to which the

emerging AC market in India could easily relate.

This was followed by a more tangible hook of energy efficiency. The Save karo India

campaign was an instant hit with our target market, highlighting the brand's premium offering

of star-rated ACs and low operating costs.

When savings and energy-efficiency became an industry-wide platform in the late 2000s,

Voltas introduced the concept of responsible usage of ACs as embodied by sensible

cooling.

The recent 2012 summer campaign of an all-weather AC was introduced after extensive

research revealed that consumers across the country wanted their ACs to do much more thanmere cooling. In response, Voltas introduced the unique concept of climate control,

combining it with the brands established strength of being trustworthy.

The campaign injected novelty into a somewhat predictable category, and Voltas seized not

only market share, but also consumer mind-share, with over 90 percent brand recall.


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Major Focus Areas of the Company

Provide contemporary and best-in-class products meeting customer needs and value

expectations.

Build customer loyalty by strengthening after-market operations through service.

Ensure cost reduction in all aspects of operations to achieve total cost leadership in

the market.

Achieve market leadership through people by attracting, developing and retaining

excellence in personnel.

Energize the organization through teamwork to ensure that various functional areas

work together to deliver results in a quick and effective manner.

Explore new avenues for revenue generation leveraging established manufacturing

and distribution strengths.

Spending a good amount of its revenue on R&D.


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SWOT Analysis

Strengths:-

Design and manufacture of industrial equipment.

Management and execution of air conditioning.

Public works projects.

Sourcing, installation and servicing of technology-based systems.

Weakness:-

Opportunities:-

The Indian Mass Market.

The high end value driven proposition helps increase the Market Share.

VOLTAS is well known for it product differentiation

Threats:-

Indian Mass Market may be captured by a rival company, LG, Videocon,

Samsung etc.

Marketing strategies can be tapped by other companies and used for benefits.

Due to increased price of inputs and continuing price erosion there is downtrend

in the consumer durables market.


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How did Voltas drive its sales up?

AC sales for the last five years were driven primarily by offering a best-in-class value

proposition to the customer. Research revealed that sales growth was inversely proportional

to the cost of AC usage. Accordingly, we launched Indias first energy-efficient AC, which

made the cost affordable, well before it became a norm. Advertising raised public awareness

of energy depletion and savings thereon. In FY-12, Voltas sold the maximum number of 5-

star rated ACs in the domestic market.

Voltas further developed and introduced a wide mix of products with a range of right

pricing options. Aggressive promotion and an expanded distribution network popularised the

range, especially in tier II & III markets.

Value they can create in future-our insights on strategy and process

Voltas brings its hands-on experience in HVAC&R and electro-mechanicals in general,

extending over more than five decades. That's a large and priceless reservoir of intellectual

capital.

Voltas also have an intimate knowledge of plant operations and maintenance, and skills in

trouble-shooting. When putting together a solution, they draw on an extensive range of

energy-saving products, striking the right balance between input and output, cost and

performance. That's the equation which spells exceptional value.

Voltas has tied up with numerous manufacturers of worldwide renown for assorted energy-

saving products, adding up to a comprehensive energy-efficient HVAC system.


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Voltas manage energy efficiency of systems through:

a) Energy-efficient chillers

b) Waste heat utilization through vapour absorption heat pumps

c) Introduction of ozone injection to reduce plant load, air conditioning load andenergy consumption, in collaboration with Ruks (Canada)

d) Variable Frequency Drives (VFD)

e) Engineered energy storage system

f) Heat recovery wheels

g) Integrated Building Management System

Value delivery

Considering the wide variety of product offerings in the commercial segments we can state

that value creation can be done in a number of ways in air conditioners market by VoltasIndia.

Voltas offers a complete solution which is explained below. This system helps company to

offer a complete value proposition to the institution that look for such solutions. This concept

is not only restricted to integrating Voltas products but it is treated as separate revenue

earning unit and also respects business for integrating Voltas and non-Voltas products as per

the institutional customers demand and requirements.

Environment Health and Safety (EH&S)

EH&S is a core value in all of companys business operations. Company bel ieves that anexcellent company is by definition a safe company. Since company is committed to EH&S

excellence, it implies that minimizing risk to people, plant and products is inseparable

objective from all other companys objectives. Every employee of the company is committed

towards a zero accident goal and has taken full ownership of the EH&S process. With a

combination of commitment and disciplined approach to the implementation of EH&S

management system at all levels.

Tata Business Excellence Model (TBEM)

TBEM offers the best way to improve business performance, bringing about a commonplatform for people to share their knowledge, follow the best business practices and pursue

excellence across all functions.

In addition, TBEM enables a continuous and measurable assessment of improvement in

several internal processes that leads to better financial performance, and greater customer and

stakeholder satisfaction. It lays a strong emphasis on leadership, strategic planning, customer

and market focus, process management, information and analysis.

Documents

B2B Marketing (Business Marketing)