Presentation on B 2 B Marketing

Business Analysis of
Company that calls itself at home in over 100 countries.

Headquarters at Zurich, Switzerland

ABB - Was a result of merger between ASEA, a Swedish company and Brown, Boveri and
CIE Swiss company.

CEO : Göran Lindahl, Chairman : Percy Barnevik

Employees : 1,17, 000 across the world.

Revenue : 31.8 billion dollars ( 2009)

The largest single stake in the firm is held by Swedish investment company controlled by
Vallen Berg family. Which holds 7.3 % stake.
 BUSINESS SEGMENTS :- (1998)

1. Industrial and Building system segments:

 Automation  Oil, Gas and Petrochemicals  Products and Contracting

2. Power transmission and distribution segments:

 Power Transmission  Power Distribution

3. Power generation and financial service segments

CUSTOMER SEGMENTS:

1. Utilities
2. Process Industries.
3. Manufacturing and consumer Industries.
4. Oil, gas and Petrochemicals.

PRODUCT SEGMENTS: FINANCIAL SERVICES SEGMENT

1. Power Technology Products CUSTOMER SERVICE SEGMENT

2. Automation Technology Products
 PRODUCT CLASSIFICATION :

1.Automation Technology

PRODUCTS : - SYSTEMS :
- DRIVES
Low Voltage AC Drives , Medium Voltage AC Drives , - ELECTRIFICATION AND
DC Drives AUTOMATION SYSTEMS
- MOTORS
Generators ,AC/ DC Motors - DRIVE SYSTEMS
- LOW VOLTAGE PRODUCTS & SYSTEMS
Circuit breakers, connection devices, system-IEC - PROPULSION SYSTEMS
- ROBOTS FOR SHIPS
Application equipments and accessories, controllers
- INSTRUMENTS SERVICES:
Analytical instruments, Actuators and Positioners
SERVICE AND MAINTENANCE
 2.Power Technology

PRODUCTS
- TRANSFORMERS SYSTEMS
dry- standard, liquid-filled
- DISTRIBUTION AUTOMATION - TRANSMISSION AND
protection and control ( distribution & transmission), DISTRIBUTION SYSTEMS
substation automation.
- SWITCHGEAR - POWER GENERATION
air insulated primary switch gear, gas insulated primary SYSTEMS

switch gear
- MV – APPARATUS SERVICES
contactors, fault current limiters.
- HV – APPARATUS SERVICE AND
power capacitors, instrument transformers. MAINTENANCE
- CABLES
Submarine Cables, Underground Cables
 Ex:- electric, Ex:- pulp and paper Industries, printing,
gas and mining and metals, cement, chemicals,
water utilities petrochemicals, pharmaceuticals, and
marine

CUSTOMER SEGMENTS:

1. Utilities
2. Process Industries.
3. Manufacturing and consumer Industries.
4. Oil, gas and Petrochemicals.

Ex:- telecommunications, Ex: Hydrocarbon

airports, postal and distribution, Industries, from
and building sectors resource recovery to
processing
SERVICE SEGMENT STRATEGY :

Service under three strategies:

1. LIFE CYCLE SERVICE-

Ex- spare parts, support and maintenance, retrofits and training.

2. FULL SERVICES –
Ex – annual maintenance of plants, machine implementation.

3. CONSULTING –
Ex- energy efficiency, productivity, reliability, security and safety.

Major customer 

Oil and gas platform and the plant processing natural

gas from the giant Ormen Lange field, NORWAY
 Competitive Positioning ABB vs. Competitors
PLC PLC+SCADA DCS

ABB

Honeywell

Invensys

Siemens

Emerson

Yokogawa

Rockwell

Schneider

Factory Hybrid Process

Automation Automation Automation
PLC – programmable logic controller.
Market
SCADA – supervisory control and data acquisition
DCS - Distributed control system.
 GEOGRAPHIC DISTRIBUTION OF REVENUES BASED ON
CUSTOMER LOCATION

(macro level segmentation, may differ in end use )

In Asia,
China is the biggest market followed by India.
 revenues = 4.1 billion dollars in 2008.
 14000 Employees.

Won best performance award for Energy Efficiency & Environmental Friendliness from
Singapore Govt. and ASEAN ( Association of South East Asian Nation).
 MAJOR JOINT VENTURES, MERGER AND AQUISITIONS

In 2008,
acquired US based transformer company KUHLMAN ELECTRIC CORPORATION
from Carlyle group.

In 2009,
ENSTO BUSH – JAEGER OY. From ENSTO OY.

VALUE FIGURES :

In 2010: won orders worth Rs. 145 cr. From Bhartiya Rail Bijlee Co. Ltd.
won orders worth Rs. 63 cr. From Haryana bidyut prasaran nigam Ltd. to
strengthen power grid.

In 2009: ABB wins Rs. 506 crore order to power Metro in Bangalore.

In 2009: ABB wins $108 million substation order in Saudi Arabia.

ABB wins automation orders worth $40 million from Germany.
 SOME OF ITS CUSTOMERS

1. Saudi Electricity Company : Saudi Arabia’s national power transmission and

distribution provider

2. Indian railways.

3. Bhartiya Rail Bijlee Company Limited (BRBCL).

4. Hyundai Heavy Industries

5.Minera Chinalco Peru S.A.

6. GA Solar, part of the Gestamp Corporation,Spain

7. FEWA (Federal Electricity & Water Authority) in the United Arab Emirates
INDIAN DISTRIBUTION CHANNELS
The Indian Electric Co. - PUNE
Distributors of : Electric motors

Mmt Distributors Pvt. Ltd. - DELHI

Distributor of : Electric motors and cables.

GKM power project Pvt. Ltd.- DELHI

Distributor of : Transformers.

Power Line Cables India Pvt. Ltd. - GURGAON

Distributors of : cables, Instruments.

Surinder Electricals. – DELHI

Distributor of generators.
 Indian Tyre Industry

• The Rs.20,000 crores Indian Tyre Industry, is highly raw material intensive
and predominantly a Cross Ply (or Bias) tyre manufacturing industry.
• It is highly concentrated wherein 10 large manufacturers account for over
95% of the total tonnage production of 11.35 lakh M.T.
• It produces all categories of tyres, except Snow Tyres and Aero Tyre for
which there is no demand domestically.
 Introduction
• The company, MRF Ltd., originally
started as a small manufacturing
unit of balloons, latex cast squeaking
toys and industrial gloves.
• The company established its first
office in 1949 at Chennai, Tamil
Nadu, India. It began the
manufacturing of tyres in 1961.
• It is presently under the leadership
of Vinoo Mammen, son of the late
K.M.Mammen Mappillai.
 PRODUCTS
• Tyres
• Conveyor belts
• Pretreads
• Paints and Coats
 Segmentation of Tyres

• Truck / Bus Tyres

• Light Commercial, Jeep & Utility
Vehicle Tyres
• Passenger Cars Tyres
• Off the road tyres
• Two-Wheelers Tyres
• Farm Service Tyres
 Product width and depth
MRF
Motor
Commercial Passenger Others
Sports

Heavy duty Car military

truck/ bus
motorcycles forklift

Light truck scooters Farm

service
 Conveyor belts

• MRF manufactures its MUSCLEFLEX

brand of Conveyor Belting at one
of the most advanced, 'State of the
Art', Facilities in India.
 Tyre retreading
• Tyre Retreading is a technology, where the old tyres are made serviceable
by removing worn out and damaged treads (rubber belts) and replacing it
with new treads. Similar to the new tyres, the treated tyres can be very
well used on all vehicles, irrespective of light or heavy vehicles.

What is Polyurethane Paint?

• Polyurethane paint provides a hard, durable gloss for crafts, model making
and can be applied to almost any surface.

• The finish will be very thick, hard and glossy, much like an automobile
finish.
 Distribution channels
• Place
• In a Push strategy, the manufacturer uses his sales force, trade
promotion, money or other means to induce intermediaries to
carry promote and sell its products to end users.

• In a Pull strategy, the manufacturer uses advertising, promotion

and other forms of communication to persuade the customer to
demand the product from intermediaries, thus inducing the
intermediaries to order it.
 Pull strategy in MRF

• It pioneered the practice of heavy advertising and

promotion in the tyre industry.
• MRF commands top-of-mind recall and top brand
recognition amongst all tyre manufacturers in India.
• Introduced its own mascot, the MRF muscleman, that
reflected the tough image it projected for its tyres.
 Brand recognition and brand recall

• When it comes to top-of-mind brand

recall, MRF beats the rest of the
competition hands down.
• Sports celebrities and event
endorsements have been a major vehicle
for their brand promotion activities.
• MRF endorse national rally circuits and
also founded the MRF pace foundation.
 MRF Rally

Brand ambassador of MRF MRF Balloon at IPL 2010

Brand ambassador of MRF
 Joint ventures
• The Company entered into a collaboration agreement with
Vapocure of Australia to manufacture polyurethane paint
formulations.
• Ties up with Maruti Udyog to boost motorsports in India.
• Funskool India, a Joint venture between Hasbro and MRF,
is a major toy manufacturing company in the country.
 Core Competencies
• Undisputed overall market leader:
• With a 24% share in the overall tyre industry MRF is the king of
tyres on the Indian road.
• MRF commands the price-maker status.
• MRF has a strong presence in the T&B segment, the largest
segment of the tyre industry, and commands around
• 19% market share in the segment.

• It holds the second place in the passenger cars.

Conclusion
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