INTRODUCTION

BIRLA POWER SOLUTION

CHAPTER 1-- INTRODUCTION

11 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

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 CUSTOMERSIndustrial customers are normally classified into four groups (i)

Commercial Enterprises (ii) Governmental Agencies (iii) Institutions and

(1v) Co-operative Societies

INDUSTRIAL PRODUCTS AND SERVICESThe industrial products and services are classified into three broad groups

(i) materials and parts (ii) Capital items (iii) Supplies and services

DIFFERENCE BETWEEN INDUSTRIAL AND CONSUMER MARKETING

Industrial markets Consumer

Market structure Geographically concentrated

Geographically

dispersed

Markets Relatively fewer buyer Mass

Products availability Technical complexity Customized

Standardized

Service Service delivery very important

Somewhat important

Buyer behavior Functional involvement

Family involvement

Technical aspect Technical expertise Less expertise technical

Relationship Interpersonal relationship

Non personal relationship

Decision making Distinct observable stages

Unobservable mental stages

Channels Shorter fewer linkage Indirect multiple linkage

Promotion Emphasis on personal Selling

Emphasis on advertising

Price Competitive bidding List price

12 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

ldquovoicerdquo 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

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

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

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

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 ldquothank yourdquo

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

13 INDUSTRIAL BACKGROUND OF THE STUDY

Indiarsquos 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 1000 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

Tax rebate on exports on generators is 17 and that of generators parts is

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 71 and 73 respectively in terms of total

requirements and 112 and 117 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 1878 units per capita in Brazil

and 12331 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

GensetsThe 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

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 amp 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

14 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

bull Always use generators outdoors away from doors windows and vents

bull NEVER use generators in homes garages basements crawl spaces or

other enclosed or partially enclosed areas even with ventilation

bull Follow manufacturerrsquos instructions

bull Install battery-operated (with battery backup) carbon monoxide (CO) alarms

in your home following manufacturerrsquos instructions

bull Test CO alarms often and replaces batteries when needed

TO AVOID ELECTRICAL HAZARDS

bull Keep the generator dry Operate on a dry surface under an open canopy-like

structure

bull Dry your hands before touching the generator

bull Plug appliances directly into generator or use a heavy-duty outdoor-rated

extension cord

bull 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

bull 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

bull Before refuelling the generator turn it off and let it cool Fuel spilled on hot

engine parts could ignite

bull Always store fuel outside of living areas in properly labelled non-glass

containers

bull Store fuel away from any fuel burning appliance

CHAPTER ndash3 PROFILE OF ORGANISATION

31 ORIGIN OF THE ORGANISATION

Company Profile

BIRLA POWER SOLUTIONS LIMITED(Formerly Birla Yamaha Limited)

(ISO-9001 amp ISO14001 COMPANY)

Registered Address

159 Industry House Church Gate Reclamation Mumbai Maharashtra 400020Tel 022-22026340 Fax 022-22047835 Website httpwwwbirlapowercomGroup 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

India the retail business of Birla Power flourishes to its entire length with

100 satisfaction level of the customers

Products amp Services

The Company produces a wide range of generators catering to the power

requirements of 500W to 60KW with a variety of fuel options like kerosene

petrol diesel LPGCNG and biogas The product portfolio of Birla Power also

includes Pump Sets Lawn Movers Invertors Sprayers and Batteries

The modern manufacturing unit is situated near Dehradun with a capacity of

125000 Smaller Gensets and 75000 Multi Purpose Engines amp 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

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

MrBaldeo Das Birla the great-great grandfather of our current chairman The

lineage of yash birla group began with MrRameshwar Das grandfather of

MrAshok Birla the sudden demise of MrAshok 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 Rs2500 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 40KW 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

compliant Generators under the brand name ndash 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 amp Multi Purpose

Engines amp its application products such as Power Sprayers amp Needle Vibrators

and Lawn Mowers under the brand name lsquoEcoshaktirsquo The Company also has

plans to increase its range of Pumpsets and Sprayers in the lower power

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 RampD 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 45 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 amp forest with a capacity of 125000

Smaller Gensets and 75000 Multi Purpose Engines amp 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

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 45 KVA The

Machine shop has 79 machines out of which 10 are CNC such as CNC

Lathes CNC Machining Centre amp 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 Octoberrsquo1998 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 ndash of - the - art R ampD 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 amp breadth of the country and across

the globe with a range of products making us Indiarsquos largest provider of power

solution products From being a manufacturer of a single product we have

become a multi-product Company

32 GROWTH amp 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 amp for manufacture of portable generating sets

- The portable generator sets amp engines produced by Company would be in

the range of 05 KW to 40 KV In case of generators the Comp adopted the

self excitation brushless system which would render the process immune to

dust humidity amp 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 amp low maintenance costs

1985 - 160 shares allotted to promoters directors etc 7999840 shares then

issued at par out of which the following shares were reserved amp allotted

2080000 shares to Yamaha Motor Co Ltd Japan 2079840 to

Tungabhadra Industries Ltd other associate Indian companies directors etc

amp 11290000 shares to Pratap Malapani Out of remaining 2720000 shares

136000 shares to the Company employees including working directors amp

54400 shares to business associates were reserved and allotted on a

preferential basis The balance 2529600 shares were offered for public

subscription during NovemberDecember

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

was also installed The Comp commenced trial production of LG 900 amp 2000

model generators in April

1987 - New modern generators such as LG 600 LG 900 AC amp 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 non-

availability 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-ruralrural

- 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

1995 - The Comp introduced two new models of self start generators Also

introduced two new multipurpose engines namely Birla Power Birla Power

1996 - The Comp launched two new models of self start portable generators

amp `Yamaha brand of EF 6600 E [55 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 amp

Yamaha of Japan is making a preferential allotment of equity shares worth

around Rs10 crore to the promoters

1998 - The Company turnover declined to Rs6939 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 amp 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 1120000 equity shares of company jointly

held by Mr Sundrashan Malpani amp Mr Ashutosh Malpani both NRIs for

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

Birla Power Solutions Ltd has informed that Mr Biswajit Sarkar has been

appointed as Chief Executive Officer [CEOs] of Comp wef March 20

2007Birla 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 wef November 01 2007

33 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 GeneratorsThe Ecogen Generator range is the worlds

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 GeneratorsThe Companys range of higher capacity

Gensets (75KVA - 40KVA) addresses to

demands of the telecom defence and other

institutional customers

5 KVA DIESEL GENSET

The 5 kva Portable Genset range is the India

t first cordquo 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 GeneratorsThe Company has also introduced a range

of LPGCNG 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

drilling machines among others

PumpsetsThe Birla Ecoshakti 4 stroke pumpset

redefines reliability and also provides

unmatched power which means more 22

power per drop of fuel

SprayerThe 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

InvertersInverters are available in a wide capacity

range of 1OO VA to as high as 10KVAThe

most popular range is the 5008001500 VA

that enables

the user to run fans tube lights and a television set

BatteriesBirla 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

Power TillerThe Company has also introduced a range

of Power Tiller for agriculture and Farm

an economical

Lawn MowerThe Company has also introduced a range

of Lawn Mower for domestic and institutional

an econo - mical and environmentally

friendly means to meet their energy needs

Y B SeriesThe Ecogen Generator range is the worlds

first cofriendly low-emission low noise

generator made of hightech alloyed

components The generator is packed with

features such as fuse less circuit breakers fan system and an Acoustic cover

to reduce noise significantly

COMPETITION

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

CLIENTSThe following table enumerates the various growth segments as also the

anticipated annual demand for the same

Source AC Nielsen amp ORG-MARG Survey

TELECOM INDUSTRY

GOVERNMENT SECTORS

BANKING FINANCIAL SECTOR

TELEVISION MEDIA SECTOR

AIRLINES INDUSTRY

MARKET

The domestic Genset market is currently catered by 2 players ndash Honda Siel

and BPSL

1048766 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

1048766 After the Exit of Yamaha there has been a decline in market share in

domestic as well as export market

1048766 There has been no new product launch in higher segments since last few years

1048766 Compounding the effect has been the slow growth in the portable Genset

Industry

MARKETING STRATEGY

The surveys conducted by Centre for Industrial amp Economic Research has

revealed significant market trends that are produced below

1048766 Increasing consumer awareness on products and product value

1048766 Leap fogging to sunrise areas

1048766 Multidirectional market penetration with new consumer shifts

1048766 Shift from functional to convenience goods

1048766 MNC invasion in large number of product markets

1048766 Market are competitive and oligopolistic at the same time

1048766 Change of sellers market to buyers market

1048766 Injection of monopolistic power via strategic USPs and brand building

1048766 Attributing illusory USPs to brands to gain market penetration

1048766 Promotion acquiring increasing value

1048766 Emergence of e business as a major marketing force

1048766 Ascendancy of product quality consumer preferences

1048766 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 enginespump sets

BPSL would be registering its products with local land development banks

NABARD State Agriculture Horticulture Departments and emphasizing on tie-

ups with nationalised rural banks for loanssubsidy schemes Further the

company plans to sell engines through application products in Railway govt

departments like MTNL BSNL NDMC Delhi Jal Board MCD etc

For above product expansion BPSL intends to penetrate rural market by

organising various promotional fairs participations in Kissan Bazzars29

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

BPSLrsquos 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 BPSLSTRENGTHS1048766 BPSL enjoys strong brand recognition and recall

1048766 BPSL has almost a complete range of products making it a single window

for power solutions

1048766 The plants of the company are ISO 9001 and ISO 14001 certified by

Underwriters Laboratories

Inc USA

1048766 All products manufactured by the Company are fully emission compliant and

ISI marked

1048766 BPSL has a very strong dealer ndash distributor network through which the

products of the company are marketed and sold

1048766 BPSL has tied up with global players like Kipor to have a technological edge

1048766 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

WEAKNESS

1048766 Lack of new product launch after the exit of foreign partner has resulted in a

decline in the market share for BPSL

1048766 BPSL is operating in the lower range of in house engines amp pumps which is

a highly competitive segment

Opportunities1048766 The Company can increase its market share by expanding capacity

1048766 The Company plans to introduce higher KVA gensets and water pumps to

capitalize on growing demand in this segment

1048766 It can increase market share in the mid-size gensets market by increasing

institutional sales

1048766 Increase presence in the agricultural and construction sector by offering a

higher range of diesel engines

1048766 Export market is still untapped specially for engines alternators Inverters

1048766 Erratic power situation in the semi urban amp rural towns has resulted in

increase in demand

1048766 Power requirement of consumers increasing ndash opportunity for adding new

higher capacity products

1048766 Rural demand improving

1048766 Shift towards LPG CNG based gensets has opened new avenues for the

company

THREATS1048766 Portable genset industry growth has shown decline in recent

times1048766 Cheaper products from China are giving stiff competition to local players

34 FUTURE PROSPECTIVE OF BIRLA POWER

Birla Power to invest Rs 5000 cr in thermal amp solar power projects

Birla Power Solutions will invest nearly Rs 5000 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) mdash Birla Urja mdash 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 7030 ldquoThe 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 Corporationrdquo 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 1500 crore to finance

the projects The present market capitalization of Birla Solutions is Rs 160

crore The stock gained 10 to close at Rs 391 Birla Cotsyn another

company of his group is valued at Rs 120 crore

ldquoHalf 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 facilitiesrdquo

said Mr Birla Meanwhile Birla Power on Wednesday informed BSE that its

board would meet on March 25 to discuss the fund-raising options

B IRLA POWER ARM EYES JV WITH US FIRM IN

SOLAR ENERGYThe 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 3000 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 2000 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

35 FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION

President

DELHI BRANCH

MARKETING DEPARTMENTS OF THE ORGANISATION

MANGING DIRECTOR

CHIEF OPERATING OFFICER

VICE PRESIDENT

GENERAL MANAGER

REGIONAL HEADS

MANAGEMENT OF THE ORGANIZATION

Name Designation

Yashovardhan Birla Chairman Chair Person

P V R Murthy Managing Director

Upkar Singh Kohli Independent Director

Y P Trivedi Independent Director

Rajesh V Shah Independent Director

M S Arora Additional Director

RESEARCH METHODOLOGY

31 TITLE OF THE STUDY

ldquo A STUDY ON COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES OF BIRLA POWER AND HONDA SIEL IN

PORTABLE GENERATORSrdquo

32 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

33 OBJECTIVE OF STUDY

The main objectives of the study are to understand the following areashellip

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

34 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

35 LIMITATIONS OF THE STUDY

The main limitation of the study ishellip

1 Itrsquos 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

36 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

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

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) Observation method

b) Interview method

c) 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

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) Diaries

b) Letters

c) Autobiographies

d) Scholars

e) 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

37 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

DATA ANALYSIS AND INTERPRETATION OF DATA

41 ANALYSIS AND INTERPRETATION OF DATA

Table 1

Table showing which affects customer decision most while purchasing

Category No of customers Percentage

Advertisement of Brand 20 20

Performance 35 35

Price 28 28

After Sales Service 17 17

Total 100 100

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 generators41

Pie chart 1

Showing which affects customer decision most while purchasing

Advertisement of Brand Performance

PriceAfter Sales

Service

17Sales

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

Table 2

Table showing which promotional tool more effective in selling generators

Personal Selling 26 26

Through website 28 28

Print media 24 24

Sales promotion 22 22

Total 100 100

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

Pie chart 2

Showing which promotional tool more effective in selling generators

Personal SellingThrough website

Print mediaSales promotion

3026 28

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

Table 3

Table showing ranking of these brands according to customer

preference

Crompton Greaves 18 18

Birla Power 32 32

Mahindra 12 12

Honda Siel 38 38

Total 100 100

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

Pie chart 3

Showing ranking of these brands according to customer preference

Crompton Greaves Birla Power

MahindraHonda Siel

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 brand46

Table 4

Table showing response towards Birla power brand

Category No of customer Percentage

Positive 59 59

Satisfactory 21 21

Somewhat negative 10 10

Total 100 100

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

Pie- Chart 4

Chart showing response towards Birla power brand

Positive

Satisfactory

Somewhat negative

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

Table 5

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

Always 53 53

Sometimes 37 37

Never 10 10

Total 100 100

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

Pie-Chart 5

Always

Sometimes

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

Table 6

Table showing why customer prefer Honda generator over Birla Power

Better Product 13 13

Special offers 35 35

After sales service 28 28

Brand name 24 24

Total 100 100

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

Pie-Chart 6

Showing why customer prefer Honda generator over Birla Power

Better ProductSpecial offers

After sales service Brand name

Inference

The above chart show customer prefer Honda generator over Birla

offers 28 people believe due to after sales service and 24 people think due

to brand name

Table 7

Table showing do customers get any promotional offer from Honda Siel

Yes 73 73

No 27 27

Total 100 100

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

Pie- chart 7

Showing do customers get any promotional offer from Honda Siel

Inference

The above chart show do customers get any promotional offer from

Honda Siel 73 people say yes and 27 say no

Table 8

Table showing do customers attend trade shows or industry events

Yes 23 23

No 77 77

Total 100 100

Source

Survey Data

Analysis55

The above table shows do customers attend trade shows or industry

events 73 people say yes and 27 people say no

Pie- chart 8

Showing do customers attend trade shows or industry events

Inference56

The above chart show do customers attend trade shows or industry

events 73 people say yes and 27 say no

Table 9

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

Yes 56 56

No 27 27

Somewhat 17 17

Total 100 100

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

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

SOMEWHAT

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

Table 10

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

Information 13 13

User friendly 35 35

Online customer care

support

Trouble shooting tips

online

Total 100 100

Source59

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

Pie-chart 10

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

InformationUser friendly

Online customer care supportTrouble shooting tips online

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

Table 11

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

Easy finance scheme 27 27

Free service week 22 22

Low monthly payment

scheme

Discounts on payment

Of cash

Total 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

Pie-chart 11

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

Easy finance scheme Free service

week Low monthly payment scheme Discounts on

paymentOf 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

Table12

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

Yes 31 31

No 69 69

Total 100 100

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

Pie-chart 12

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

010203040506070

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

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

1035 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

CONCLUSIONS amp RECOMMENDATION

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 PGDM 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 amp

customers

3 How to talk with dealers amp customers and convince them

4 I learned the different marketing tools amp 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

RECOMMENDATION amp SUGGESTIOS67

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 amp 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

customerrsquos minds

9 Keep an eye on grey market means duplication of the

generators

10 Aggressive promotion strategy compare to Honda

Generators

BIBLIOGRAPHY

Text book

Research methodology book by Mahesh Malhotra

Marketing Management by Philip Kotler

Website

wwwbirlapowercom

wwwgooglecom

wwwyahoocom

Other sources

Companyrsquos annual report

Brochure

Pamphlets

Employeersquos of Birla Power

Magazines

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



Advertising

Sales promotion


Personal selling

Direct Marketing

BIRLA POWER ARM EYES JV WITH US FIRM IN SOLAR ENERGY