TOPIC: ANALYZE THE MARKETING

ENVIRONMENT FOR ANY ONE COMPANY

IN INDUSTRIAL GOODS SECTOR

By: Noorulla
MBA 1st sem
 INDUSTRIAL
MARKETING

 Industrial marketing is the marketing of goods

and services from one business to another.
 Industrial goods are those which are used in
Industry for producing a different end product
from one or more raw materials.
 Basically we are talking about B2B market group.
 FEATURES OF THE B2B
SELLING PROCESS

 Marketing is one-to-one in nature. It is relatively

easy for the seller to identify a prospective
customers and to build a face-to-face
relationship.
 Highly professional and trained people in buying
processes are involved.
 High value considered purchase .
 Purchase decision is typically made by a group of
people not one person.
 CONT…

 Often the buying or selling process is complex

and includes many stages.
 Selling activities involve long processes of
prospecting, qualifying, wooing, making
representations, preparing tenders, developing
strategies and contract negotiations.
MARKETING ENVIRONMENT

 Marketing environment are the actors and forces

outside marketing that affect marketing
management’s ability to build and maintain
successful relationships with the target
customers.
 Marketing environment is made up of

1. MICRO ENVIRONMENT

2. MACRO ENVIRONMENT
CONT…
 COMPANY

Name : Bharat Heavy Electricals Limited

Profile :
 BHEL is the largest engineering and manufacturing enterprise
in India in the energy-related/infrastructure sector, today. 
 BHELwas established more than 40 years ago, ushering in the
indigenous Heavy Electrical Equipment industry in India - a
dream that has been more than realized with a well-
recognized track record of performance.
 The company has been earning profits continuously since
1971-72 and paying dividends since 1976-77. 
 PRODUCT PROFILE

 Power – Air Pre heaters, Boilers….

 Industry – Capacitors, Ceralin….
 Transmission – Bushings, Capacitors….
 Transportation – Electric Rolling Stock…
 Non Conventional Energy Source – Solar
Lanterns, Solar Photovoltaics….
 R&D Products – Fuel Cells, Surface Coatings….
MICRO ENVIRONMENT

Publics

Competitors The
Company

Marketing

Customers Suppliers

Marketing
Intermediaries
 THE COMPANY

 Top management
 Finance
 Research & Development
“Think
 Purchasing Consumer”

 Operations
 Accounting
 SUPPLIERS

 BHEL, procures materials and components on a

regular basis from suppliers spread all over the
world.
 For this purpose, BHEL is backed by a strong
supplier-base which is continually updated. 
 New suppliers and traders both from within India
and abroad, who would give BHEL competitive
inputs, are now being added to the list of existing
suppliers.
 CONT …

 The bargaining power of suppliers is not very

high, since government controls the tariff
structure; however this might change in future.
 MARKETING
INTERMEDIARIES

 Trade fares & Industrial Exhibitions

 Business magazines & Industry media
 Tenders & Quotations
 Government Agencies
 Business Agents
 CUSTOMERS

 Oracle
 Reserve Bank of India
 GAIL India Ltd.
 ICICI Bank
 Government Projects
 Indian Defence Department
 Many other OEM’s & Hydro electric projects
 COMPETITORS

 Barriers to entry are high, as entering this business

requires heavy investment initially.
 The other barriers are fuel linkages, payment
guarantees from state governments, retail
distribution licensed etc.
 Competitive price and orders are captured by most
of the dominant players, like

ABB India ltd.

Kirloskar Industries
 CONT …

MICO India Ltd.

L&T

General Electric

Mitsubishi

Other local & multi-national companies in the sector

 PUBLICS

 Financial Publics
 Media Publics
 Government Publics
 Citizen-Action Publics
 Local Publics
 General Public
 Internal Publics
MACRO ENVIRONMENT

Economic
forces

Demographic Natural
forces forces

Company

Technological
Cultural forces
forces

Political
forces
 DEMOGRAPHIC
FORCES

 Increasing size of the Indian market with the

rapid growth of population
 Fast growing security needs
 Growth in the educated class and increased use
of advanced services
 ECONOMIC FORCES

 The economic boom in India particularly in the

last one decade has played a significant role in
charting the success of the company.
 Power Generation is one of the primary indices
of a country’s economic development.
 Turn key projects are the need of the hour and
BHEL has proven turnkey capabilities for
executing power projects from Concept-to
Commissioning.
 NATURAL FORCES

 BHEL is an environment friendly company in all its activities,

products and services besides providing safe and healthy
working environment to all its stakeholders.
 The depleting water and energy resources are a cause of
concern for all. BHEL has set up rainwater Harvesting Plants and
Energy Conservation Projects utilizing efficient technologies.
 Proper disposal of Chemical and other wastes is also a major
concern for which the company has put up Chemical storage and
disposal plants.
 The company has made the principles of the Global Compact
program of the United Nations a part of its strategy, culture and
day-to-day operations.
 TECHNOLOGICAL
FORCES

 BHEL being an engineering and manufacturing giant is

to a great degree driven by technological developments
and innovations and has its earnest efforts directed
towards improving its technological prowess to meet
the changing requirements of a growing economy.
 At the same time the company has to keep pace with
the developments happening in its business areas, else
it will be knocked out by the competitors.
 BHEL has been a leader always and the fact that India’s
first underground metro at Kolkata runs on drives and
controls supplied by BHEL is a testimony to this.
 CONT…

 The Company has proven expertise in Plant

Performance Improvement through renovation
and up-rating of a variety of power plant
equipments to improve the performance of
existing plants.
 It has also emerged as a major supplier of
controls and instrumentation systems for various
power plants and industries.
 POLITICAL FORCES

 BHEL being a public sector undertaking is greatly

influenced by the political forces.
 There is a change in policies every time the
government changes.
 The business decisions are steered to a great extent
based on the individual preferences of the new
leadership.
 The company does big business overseas and these
projects are directly dependent on the incumbent
ruler’s international trade policies.
 CONT…

 The government policies and regulations relating

the company’s client industries can largely affect
the future of its business with these customers.
 For example, power sector has seen a massive
growth in the last few years and has been at the
top of the political agenda. Now power
companies are the major clients of BHEL.
 SOCIAL FORCES

 Companies are taking more interest in corporate social

responsibility these days and steps have been taken by BHEL
too to further the same.
 Its contributions towards CSR till date include adoption of
villages, free medical camps/charitable dispensaries, schools
for the underprivileged and handicapped children, ban on
child labor
 Companies that are sensitive to the needs and development
of the society normally draw people’s attention and respect
faster and can create a superior moral image in the minds of
their partners and clients, the same showing more interest in
working with an ethical and socially conscious group.
 ANALYSIS

 Having a good brand image and product

portfolio, they should aggressively defend and
increase the market share.
 Improve the speed and quality of purchases as
the competition in this range is with small
contractors
 To create channel partners rather than operate as
individual companies  
 Increase market share aggressively
 CONT …

 Execute pilot projects to gain experiences and

minimize risks
 To be cautious in the event of change of the
government and the process of reforms falling off
the track.
 Increased level of public relations with the
customer through dedicated marketing and sales
team.
Thank you!!!!!!!

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