A PROJECT REPORT

ON
“MARKETING MANAGEMENT”
AT
“Escorts Construction Equipment Ltd”

In partial fulfillment of degree in the requirement of

Bachelor of Business Administration
Session 2020-21

Submitted to: Submitted by:

Controller of Examination Name: Anjali
M.D.University Class: BBA 5th Semester
Rohtak Univ. Roll No.:
Regn. No: 1811350427

GOVT. COLLEGE FOR WOMEN FARIDABAD

‘

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 PREFACE
I, Anjali a student of B.B.A. of Govt. College for Women, Faridabad working on
a project at ‘Marketing Management” of “Escort Construction Equipment Ltd”
For practical experience and learning as a part of my compulsory vocational
training.

I got an opportunity to work with Escort Construction Equipment Ltd. for

my project with the objective to study and analyze.

The whole report divided into several cases.

In the whole report introduce about the complete profile of the organization.
And tells about the objective, research methodology, welfare, suggestion,
analysis and conclusion etc.

Anjali

2
 DECLARATION

I Anjali student of Bachelor of Business Administration, j Govt. College for Women

Faridabad here by that the project report entitled “MARKETING MANAGEMENT” Has been
carried out at “Escorts Construction Equipment Ltd ”submitted in partial fulfillment for the
“Bachelor Degree in Business Administration” in the result of my own work and is original.

I have not submitted this project to any other university or college for the award of any
other degree or Diploma.

Anjali

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 ACKNOWLEDGEMENT

I express my sense of profound gratitude to the Management of “Escorts Construction

Equipment Ltd”,. For giving me this opportunity to conduct a study on Training and
Development in their esteemed organization.

My sincere thanks to Ms. Shama Parveen (Human resource Manager), Escorts Construction
Equipment Ltd. For permitting me to pursue this project.

I would like to express my gratitude to Mr. Suman Tiwari (Sales Manager), Escorts
Construction Equipment Ltd. For providing his valuable time, suggestions and support for
completing my project work successfully.

I am extremely grateful to Ms. Shama Parveen, Escorts Construction Equipment Ltd. For his
support during the preparation of the project report. His patience and invaluable guidance
have proved to be very precious without which project would not be completed.

Lastly, I am indebted to the friends and will-wishers who have extended their support to me
during the project.

Anjali

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 TABLE OF CONTENTS

Chapter 1 : Company profile

Chapter 2 : Review of Literature

Chapter 3 : Research Methodology

Chapter 4 : Swot Analysis

Chapter 5 : Data Analysis

Chapter 6 : Synopsis

Chapter 7 : Conclusion

Chapter 8 : Limitation

Chapter 9 : Suggestions

Chapter 10 : Annexure
Bibliography

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 CHAPTER-1

COMPANY PROFILE

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 ESCORTS

E:- Ensures reliability and inbuilt quality

S:- Save energy in all fronts
C:- Cultivate safe habits
R:- Reduce wastage
T:- Take care of machines and materials
S:- Strive for excellence

ESCORTS

COMPANY PROFILE

The Escorts group, with Escorts Ltd as its flagship company in among India’s leading
corporations operating in diverse fields of Agriculture- Machinery, Healthcare, Construction
& material handling equipment, Automotive and Railway ancillaries information technology
and Financial services. The group has 15 modern manufacturing facilities and an extensive
marketing network spread across the country.
The single word completely describes the character philosophy and success of the
company which grow from a small beginning to one of the every changing dimensions.
From its inception Escorts has firmly believed that success inspiring on being close to
the customer thus every corporate Endeavour address itself to end user adjusting to ever
changing market.
At every step of the way Escorts had inducted the latest technology by forming
alliances with world’s most advanced engineering. And electronic companies, constantly
adapting technology according to India’s need and situation.

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 At Escorts, there are many dimensions to a corporation’s role in society. Escorts is fully
aware that the total well being of the society in which it operates is of critical importance to
the prosperity and growth of business. As a responsible corporate citizen, Escorts has not
only endeavored to encourage civic improvements, better health and education but also
protect environment and natural resources.
Social conscience of Escorts is mirrored in the establishment of community outreach
and rural development programme. The company hs been running facilities such as
charitable employees medical assistance and pension scheme, etc. the rural development
programme, initiated by the company in 1977, has resulted in a tangible improvement in the
quality of lives of thousands of people residing in 62 villages that encompass this
programme. The objective of the community outreach programme is to redress the
iBBAlance by providing the cardiac care to deprived and underprivileged across several
states including Jammu & Kashmir.

For nearly five decades, Escorts was merely one of India’s largest engineering
companies, a prime mover on the industrial front, at every stage introducing products and
technologies that helped to take country forward in key areas. The group has continued to
grow and thrive on its ability to diversify and manage change. In keeping with the changed
scenario, Escorts has made a smooth foray in the service sectors of Healthcare and cellular
telephony. These two together with Agri-machinery business should catapult Escorts to find
a rightful place in the global economy in 21th century.

HISTORICAL BACKGROUND:-

The genesis of Escorts goes back to 1944 when two brothers, Mr. H. P. Nanda and Mr.
Yudi Nanda, launched a small agency house, Escorts Agents Ltd. in Lahore. Over the years,
Escorts has surged ahead and evolved into one of India's largest conglomerates. In this
journey of six decades, Escorts has had the privilege of being associated with some of the
world leaders in the engineering manufacturing space like Minneapolis Moline, Massey
Ferguson, Goetze, Mahle, URSUS, CEKOP, Ford Motor Company, J C Bamford Excavators,
Yamaha, Claas, Carraro, Lucky Goldstar, First Pacific Company, Hughes Communications,

8
Jeumont Schneider, Dynapac . These valued relationships be it technological or marketing,
are our highly cherished experiences treasures, which have helped us inculcate best in class
manufacturing practices and to emerge as a technologically independent world class
engineering organization.

1944- Launch of Escorts (Agents) Ltd.

1948- Pioneered farm mechanization in the country by launching Escorts Agricultural
Machines Limited, with a franchise from the U.S. based Minneapolis Moline, for marketing
tractors, implements, engines & other farm equipment.
1948- Launch of Escorts (Agriculture and Machines) Ltd.
1949 - Franchise of Massey Ferguson tractors for northern India
1951 - Escorts established India’s first private Institute of Farm Mechanisation at Delhi.
1953 -Escorts (Agents) Ltd. and Escorts (Agriculture and Machines) Ltd. merged to form
Escorts Agents Pvt. Ltd.
1954 - 1st industrial venture of Escorts to manufacture piston rings in collaboration with
Goetze of Germany, in an era when joint ventures of Indian firms with foreign companies
were virtually unheard of.
1958 - Started importing Massey Ferguson tractors from Yugoslavia for marketing the same
in India.
1959 - Collaboration with Mahle of Germany to manufacture pistons. Soon, Escorts became
the largest producer of piston assemblies in India.
1960 - Set up of Escorts Limited
1961- Setting up of manufacturing base at Faridabad for manufacture of tractors in
collaboration with URSUS of Poland and 50% indigenous components. Launch of Escort
brand of tractors. Collaboration with CEKOP of Poland for manufacture of motorcycles and
scooters. Escorts moves into high gear by nurturing the two wheeler culture. The first
Rajdoot motorcycle rolls off the assembly line.
1969 - Escorts Tractors Limited was born. A technical and financial joint venture with the
global giant Ford Motor Company, USA, to manufacture Ford tractors in India. The years
ahead saw Escorts grow as the largest tractor manufacturer in India.

Escorts Institute of Farm Mechanization (EIFM) established at Bangalore.

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Escorts Employees Ancillaries Ltd. (EEAL), a unique venture in industrial democracy comes
into being.
1971 - 1st February, the first tractor FORD 3000 rolled out of the factory.
Escorts diversifies and starts manufacturing construction equipment.
1974 - Crossing national boundaries, Escorts exports for the first time. After winning a global
tender, 400 tractors were exported to Afghanistan, which was perhaps the world's largest
ever airlift of tractors.
1976 - FORD 3600, an advancement in Farm Mechanisation launched. Trial production of in-
plant manufacturing of engine parts (Block & Head).
1977 - Escorts enters the world of self-developed technology by setting up its first
independent R&D Center. Escorts Scientific Research Centre marked its beginning at
Faridabad by developing its own Engines for E-27 and E-37. Due to constant technology
absorption, indigenisation level touched 72% for FORD tractors. 2nd plant at Bangalore for
manufacturing piston assemblies was set up.
1979 - Collaboration with JCB Excavators Ltd., UK for manufacture of excavators.
1980 - Foray into healthcare, Escorts Hospital and Research Center set up in Faridabad.
1983 - Escorts Tractors Limited (ETL) established a state-of-the-art research and
development centre to spearhead newer breakthroughs in Farm Mechanisation and to
maintain industry leadership. Line concept introduced for engine block machining. 11,000
ton floating dry-dock Escorts I launched.
1984 - JV Escorts - Yamaha to manufacture motorcycles
1984 - Signing of agreement with the Japanese bike giant Yamaha to manufacture
motorcycles with Yamaha technology. Collaboration with Jeumont Schneider of France to
manufacture EPABX systems Collaboration with Dynapac of Sweden to manufacture
vibratory road compactors.
1985 - Escorts Tractors Limited (ETL) offered its first Bonus Issue (1:1).
1988 - Escorts Heart Institute and Research Centre (EHIRC), a world class cardiac care facility
launched in New Delhi.
1989 - Joint Venture with Claas of Germany to manufacture harvester combines.
1990-91 - First Public Issue in February 1991, over-subscribed four times. Shares listed on
Delhi and BoBBAy Stock Exchanges.

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1993 - FORD 3620 tractor launched.
1996 - Disengagement of joint venture collaboration with New Holland and launch of
FARMTRAC Tractor.
1997 - Joint Venture with Carraro of Italy for manufacturing and marketing of transmission
and axles.
Joint Venture with First Pacific Company of Hong Kong - Escotel Mobile Communications.
1998 - POWERTRAC series of tractors launched. MoU was signed with Long Manufacturing
Company, USA for setting up a Joint Venture in USA.
1999 - MoU for Joint Venture with a Polish Company POL-MOT was signed for assembly,
manufacturing and marketing of Farm Machinery.
2004 - Divested Escotel Mobile Telecommunications to Idea Cellular TS16949 certification
for Agri Machinery Group.
2005 – Divested Escorts Heart Institute and Research Centre (EHIRC) to Fortis Healthcare.
2006 - Divested in Carraro India Ltd. Set up new manufacturing facility in Rudrapur for
manufacture of new range of railway equipment.

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 THE ESCORTS SYMBOL
The Escorts symbol means more than a seen by the eye. It has been prepared with
certain objectives in mind and is symbolic in more than one way.
The philosophy behind Escorts and ‘E’ in the Escorts is “Enterprise”. The Hexagon is a
symbol of productivity, precision when interposed as a nut. It symbolizes a craftsmanship,
and mending productivity. The sprains superimposed of the Hexagon represent the workers
and the people of the Escorts. This forms the letter “E” the first of Escorts a company even
on the more changing unveiling the future.

ORGANIZATIONAL STRUCTURE

Escorts Limited
CHAIRMAN & MANAGING DIRECTOR
Mr. RAJAN NANDA
EXECUTIVE DIRECTOR & CHIEF OPERATING OFFICER
Mr. NIKHIL NANDA
DIRECTORS
Mr. S.C. BHARGAV
Dr. S.A. DAVE
Prof. & Dr. M.G.K. MENON
Dr. P.S. PRITAM
VICE PRESIDENT-LAW & CO.SECRETARY
Mr. G.B. MATHUR

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 ESCORTS GROUP OF COMPANIES
AGRI-MACHINERY
ESCORTS Ltd.
CARRARO INDIA Ltd.
LONG AGRIBUSINESS LLC
POL MOL ESCORTS SPOIKA ZOO

AUTO & RAILWAY COMPONENTS

ESCORTS Ltd.

ECINFORMATION & TECHNOLOGY

ISERVINDIA SOLUTIONS Ltd.
ESCOSOFT TECHNOLOGIES Ltd.
AUTOMATRIXINDIA.COM
CELLNEXT SOLUTIONS Ltd.
CA ESCOSOFT Pvt. Ltd.

HEALTH CARE
ESCORTS HEART INSTITUTE & RESEARCH CENTRE Ltd.
ESCORTS HOSPITAL & RESEARCH CENTRE Ltd.

CONSTRUCTION AND MATERIAL HANDLING EQUIPMENT

ESCORTS CONSTRUCTION EQUIPMENT Ltd.

FINANCIAL SERVICES
ESCORTS FINANCE Ltd.

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 COMPANY AREAS OF SERVICES
AUTO COMPONENTS
 Tractors
Escorts manufactures a wide range of tractors, automotive components, railway
equipment and construction & material handling equipment. The group have several
business units that manufacture a wide range of tractors under the brand names Escort,
Farmtrac and Powertrac. The current range involves over 45 models ranging from 25HP to
80HP. The tractor division was started in 1960 with the first Escort tractors produced in
1965. In 1969, a partnership with Ford was set up to produce licensed Ford tractors for
India. Ford became New Holland, which is currently part of CNH Global, which in turn is
owned by the Fiat Group.
Escorts has production locations in Mrągowo, Poland that was purchased from Pol-
Mot in 2000, and in India. There was an assembly plant in Tarboro, North Carolina which
was purchased from Long Agri, but the North American subsidiary went into receivership in
2008. Customers, dealers and creditors are still trying to work through the North American
troubles.
A new assembly plant was set up in 2008 in Ghana to assemble 2500 tractors a year.
Escorts tractors are exported around the world to about 41 countries. In the USA, tractors
built by Escorts were imported from India and Poland, and from LS Tractors in South Korea,
all sold under the Farmtrac brand name.

 Motorcycles
The motorcycle division of Escorts group started manufacturing PolishSHL M11 175cc
motorcycles under the brand name Rajdoot from 1962. Various derivatives were produced
with slight changes in cycle parts, suspension and transmission. Production continued for
over four decades until it was phased out in 2005 due to emissions.
In the early 80s, Escorts started making Yamaha motorcycles in India. Rajdoot 350 and
Yamaha RX 100 were known for their performance and established Yamaha as a
performance brand in India.135cc RXG, RX135 and RXZ followed along with small 4-stroke
Yamaha motorcycles which were made to cater to the commuter market. The motorcycle
manufacturing unit in Faridabad was sold to Yamaha India in the late 1990s when Escorts
decided to quit the motorcycle business to concentrate on tractors and auto components.

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CONSTRUCTION EQUIPMENT
Escorts Construction Equipment Limited (ECEL) was established in 1970 as the Yellow
Line. With partners such as Doosan, Altec, Fassi Group, Hamm, Huata and IHI, ECEL builds
forklifts, cranes, backhoes, and excavators, to name a few.

RAILWAY EQUIPMENT
Railway Equipment Division is a leading railway equipment manufacturer of the
country for over three decades. Certified for ISD9002, the division has a large pool of
engineering manpower. It has facilities for advanced product development, design, testing
and validation. The division offers a range of products including air and electro pneumatic
braking system, couplers, shock absorbers, composite brake blocks, rail fastening systems
and vulcanized rubber components. The products incorporate technologies from world
renowed companies like Schaku of Germany for couplers, Knorr Bremse of Germany four air
brakes, General & railway. Escorts builds couplers, shock absorbers, brake systems and
brake blocks for Indian Railways.
Suppliers Pty Ltd. of Australia for rail fastening system, ICER of spain for composite
brake blocks and Vulcanite of Australia for Vulcanized rubber parts. More technical
collaboration options are being pursued to address the opportunities arising from
modernization of Indian Railway Metro Projects.

INFORMATION TECHNOLOGIES
The Escort Group’s foray into IT and Internet service is channeled through Escosoft
Technologies (software) and Esconet Services (e-enabled services). The lather has developed
4-5 products automatrix.com, a B2B exchange for auto components, cell next, which
provide internet access and evince to users of mobile telephony, Iserve an ISP in HARYANA,
UP WEST and KERALA, a health portal and Escolife, a portal for insurance agents.

 ESCOSOFT TECHNOLOGIES LIMITED

http://www.escoft-tech.com/is an ISO9001 certified software venture of the Escorts
Group offering one-stop, quality solutions, internationality, with a distinct cost
advantage. In a short time since inception, Escosoft has access to more than 300

15
 professionals, covering a wide range of expertise in such sectors as Financial,
Healthcare, Telecom, Infrastructure Management & Security.
Ecosoft specializes in software development, application support services and IT
outsourcing services on a fixed-price as well as time & material basis. Ecosoft
strongly follows centric approach for delivering products and services, conforming to
ISO9001 requirements. All processes of Escosoft are certified by KPMG.
We bring all these together to rapidly and reliably deliver the solutions and the
value required at the intersection of advanced technology and the enterprise.
Escosoft’s business divisions are centered around its services spectrum.

 CELLNEXT SOLUTION LIMITED

Cellnext solution Ltd. is an established market leader in providing complete
wireless IT & Internet solutions and services to all leading telecom operators and
enterprises.
Cellnext has wide product portfolio and brand categories of messaging engines,
unfied content aggregation, and enterprise application integrators. Company’s core
competence revolves around GSM and CDMA over data technologies like SMS, MMS,
GPRS, JVR, and development of wireless applications over the same.

 IServ INDIA SOLUTIONS Pvt. Ltd.

IServ India solutions is a part of the US$ 800 million Escorts Group and provides
world class internet based solutions to both the retail and the enterprise sector in
India. With its state-of-the-art network of IP based leased lines and a geographically
distributed data centre that incorporates standards based technologies from world
leader like sun Microsystems, Ciscom Netscape and Compaq. Iserve India’s solutions
offer unparalled uptimes and customer driven SLAs.

 ESCONET SERVICES LIMITED

Esconet services Ltd. a wholly owned subsidiary of Escorts Ltd. has launched
automatrix, a collaborative e-commerce for buying and selling automotive
components.
It was the first natural and collaborative platform aimed at the Indian
automobile Industry.

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ESCORTS FINANCE LIMITED
Escorts finance Limited (EFL) with a country wide infrastructure, and a strong
professional work force, is a prominent name in the financial services industry
offering a wide range of financial services to cater to the needs of its clients.

BUSINESS PROFILE
Escorts Finance Limited in 1987 and is non-banking financial company. It is
primarily engaged in the business of hire purchase, lease financing, money market
operations and merchant banking. It is a member of the Escorts Group of companies,
which owes its origin to engineering/ manufacturing business, commenced over 50
years ago. Today the group is a leading and trusted name with diversified interests in
a number of high growth industries including from machinery, two wheelers,
construction and material handling equipment and auto ancillary products and
financial sevices.

FUTURE PLAN
The company’s future strategy is to largely focus on financing of group products and
ensure a healthy growth rate and at the same time maintain a high capital adequacy
ratio. The company also plans to increase the share of construction equipment
business in its lending portfolio. The company has recently started plant hire of
construction and other equipment as an additional facility for its client.

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 ESCORTS LIMITED

Agri Machinery Group

The year was 1960 Escort setup a strategic Agri Machinery group to venture into
tractors. By 1965, this group rolled out on the field our first batch of tractor under the brand
name of Escorts.
Having pioneered from mechanization in the country, Escorts has played a pivotal
role in the agriculture growth in India for over five decades. One of the leading tractor
manufacturers of the country, Escorts produces tractors in the 27-75 HP range and has
already sold over 6lac tractors. Its tractors are marked under three brand name viz. Escort,
Powertrac, Farmtrac. Escort brand of tractors are symbolic of reliability & trust and enjoy
the confidence of farming community for the last 45 years. Powertrac brand of tractors are
the most fuel-efficient tractors in their respective categories that offer excellent value for
money and have helped the farmers improve their quality of life. Farmtrac brand are the
most powerful premium range of tractors that give maximum productivity to the farmers.
Spanning these three brands the company has full range of tractors to cater to the domestic
as well as overseas markets.
The company is developing state-of-the-art highly fuel efficient engines with the
assistance of AVL of Australia and have also entered into a joint venture with Carraro SPA of
Italy for the manufacturing of transmission and axles.
To sustain the present momentum and to realize the future goals, Escorts has
invested Rs. 60 Crore towards strengthening new product development programmes and
enhancement of R&D capabilities. Additionally, Rs. 400Crore has been invested towards
modernization of its manufacturing facilities bringing them to international standards. The
company has one of the most comprehensive distribution networks comprising of over 600
dealership/outlets and 30 area offices spread across the country. It has a manufacturing
capacity of 75000 tractors per annum. Escorts agri machinery Group is looking at forward
and backward integration through food processing, food chains and genetic engineering. It
will be expanding its product range by launching highly specialized tractors and draft
implements.

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 We have increased our reach from a major regional player to major global markets
which stretch North America to Australia covering all the continents. Despite the strict
competition by other major tractor manufacturers we have been able to gain constant
volumes in the global market.
Our products are marketed mainly in U.S.A, central and Eastern Europe through
Poland, Ghana, Tanzania, Malaysia, Australia, Tunisia, Chile, Turkey, Sri Lanka, Kenya,
Bangladesh, South Africa, and many other countries.
To consolidate its presence markets, the company has ventures in the USA and
Europe(Poland). Its has recently acquired a majority stake in Long Agribusiness LLC, a tractor
distributing company in the USA and Pol-Mot Escorts spolka Z.O.O., Poland. Besides the USA
and Poland, Escorts has strong presence in Turkey, Australia, Bangladesh, Sri Lanka, Nepal,
Kenya, Tanzania, South Africa etc, through its dealers network in other potential countries.
An escort has very ambitious plans to expand the dealers network in other potential
countries in the coming year. By the end of the next year, the company hopes to be the
largest exporter of tractors in the Indian Tractor Industry, besides tractors, the RR6 riding
type paddy transplanter in association.
Material Handling Equipment
ESCORTS CONSTRUCTION EQUIPMENT Ltd.
At Escorts Construction Equipment Limited, we have defined the evolution of India's
Construction Equipment Industry over the past 36 years. When Necessary, even entered
into partnerships with global technology leaders.
In 1971, we introduced Pick n Carry Hydraulic Cranes Mobile Cranes. We Continue to be the
World's No.1 manufacturer of this Product.

 
Picture Of the new Premises Of ECEL

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We successfully pioneered the concept of Backhoe Loaders in the late 70's.
The World Class range of Vibratory Compactors that we first Introduced in the late 80's are
today reputed to provide the most effective compaction solutions to the industry.
Our Innovation Continued... Excavators , amongst the world's most advanced, that
revolutionized earth moving technology in India in the 90's.Forklift Trucks that are today the
preferred choice of the quality conscious users.
In the new millennium, we presented a contemporary range of equipment- Articulated
Boom Crane, Tower Crane, Crawler Crane & Power & Telecom utility material from the
world leaders.
We defined customer support by setting up the first pan India dealership network which has
now strengthened to 80 plus strategic locations covering length & breadth of the country. It
also has 17 business centers located at all the strategic points. In keeping with its
commitment to total customer satisfaction & providing technologically superior products
ECEL has tie up with a number of reputed Internationally company- FRANNA CRANES Pvt.
Ltd., Australia and FASSI GRU INDRAULICHE, Italy for cranes, DAEWOO HEAVY INDUSTRIES,
Korea for Forklifts, JLG INDUSTRIES INC., USA for Aerial Work Platforms.
PRODUCTS OF ECEL
 MATERIAL HANDLING EQUIPMENTS:
 Pick ‘n’ Carry Cranes
 Slew cranes
 Crawler Cranes
 Truck Cranes
 Articulated Boom Cranes
 Tower Cranes
 Forklift Cranes
 Arial work Platforms
 Telehandlers
 Front End Loaders
 COMPACTION EQUIPMENTS:
 Tandem Vibratory Roller
 Vibratory Soil Compactor

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  UTILITY EQUIPMENTS
 Electric/Telecommunications
 EARTH MOVING EQUIPMENTS
 Backhoe Loaders
 Wheel Loaders
 Motor Graders
ESCORTS CONSTRUCTION EQUIPMENT LIMITED
MISSION
To achieve leadership in construction and material handling equipment business
and attain benchmark in cost, quality and customer service in a manner that all our stake
holders i.e Our employees, customers, vendors, dealers and shareholders will have a sense
of pride in ESCORTS CONSTRUCTION EQUIPMENT LIMITED.
POLICY
We, at ECEL shall attempt to delight our customers by giving them produces for
newer applications and with superior quality.

OBJECTIVE
Towards achieving our quality, we will finalize and issue company objectives on an
annual basis. Based on these annual company objectives, all department head will develop
the objectives for the department.

CONSTRUCTION EQUIPMENT SECTOR IN INDIA

The Indian Construction Equipment sector has an estimated market size of US$ 2.4
– 2.6 billion for the year 2007. The industry has been growing due to the large investments
made by the Government and the private sector infrastructure developments. The
prospects of the construction equipment industry look attractive with a projected
investment of US$ 320 billion in the infrastructure sector over the next few years. The
Indian market is catered by about 200 domestic manufacturers (small, medium & large).
Though the Indian construction equipment industry is a fraction of the global market, whose
size is over US$ 75 billion, it has been growing at an average of 30 per cent annually

21
compared to the global growth of 5 per cent. India is one among the top 10 markets for
construction equipment and is one of the key international market.
The growth in this industry is expected to be primarily due to investments in infrastructure,
investments by the Government in the form of external borrowings and internal accruals by
Public-Private-Partnerships (PPP) model. Indian firms are strengthening their existing
operations for catering to the growing domestic demand and are also planning to expand to
tap overseas markets. At the same time international majors have ambitious plans for India.
Sector Composition & Size
The following is the sector breakup of the construction equipment industry in India as
of 2004. Product consumption constitutes the bulk of the segment with around 56 per cent
while the unorganised sector contributes to around 15 per cent. Unorganised players are
more prevalent in the relatively less technology intensive material handling, material
preparation and concrete equipment segments.

Construction & material handling equipment industry

Products 56%
Spare Parts 21%
Unorganised Sector 15%
Services 6%
Exports 2%

The imports market is estimated around US$ 375 million. Of these, the earthmoving,
excavation and hauling equipment categories command around 25 per cent. Imported used
equipment’s, which include high end hydraulic mobile cranes, excavators, motor graders,
vibratory compactors comprise a negligible 0.4 per cent of the total construction equipment
market.
Company Revenue (US$ Million) Market share
JCB India 329 13.2%
BEML 307 12.3%
TELCON 283 11.3%
L&T Case/Komatsu 156 6.3%
Caterpillar India 143 5.7%
Ingersoll Rand 105 4.2%
Volvo 99 3.9%
ECEL 61 2.4%

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 Greaves Cotton 37 1.5%
ACE Ltd. 36 1.5%
Others 944 37.7%
Total 2500 100.0%
The exports of Indian construction equipment industry were estimated at US$ 35
million in 2004-05. The growth in exports in the period 2000-01 to 2004-05 was around 30
per cent. The potential exports market for construction equipment from India is projected
to be around US$ 100-120 million by 2010.
Spare parts revenues range anywhere from 20–29 per cent of the total sales for
representative companies and are predominant in tunnelling and drilling
equipment’s. Services revenues have been higher for global players at around 11–20 per
cent in comparison to 2–8 per cent of Indian players. The construction equipment industry
in India has more than 200 players; however, the top 6 players occupy about 60 per cent of
the market. The following are players and their contribution to the Indian construction
equipment industry.

Industry Structure
India produces the entire range of construction equipment for different applications.
The industry can be broadly classified under the following categories:
• Earthmoving equipment
• Road construction equipment
• Material handling equipment
• Tunneling and Drilling equipment
• Construction vehicles
The following is the industry structure and the categories involved in the
construction equipment industry:
In terms of size, earthmoving equipment constitutes the biggest segment, accounting
for nearly 57 per cent of the overall equipment market. Material Handling equipment and
tunneling and drilling equipment follow with 13 per cent and 12 per cent respectively.

23
The performance of each segment is discussed separately under various heads.

24
Spraying &Conve
Earthmoving Equipments

The earthmoving equipment market in India is estimated at about US$ 1.4 billion. The
predominant sub-segment in this is excavators, which account for just over half the market.
Backhoes account for 26 per cent and loaders for another 5 per cent share.
The prime driver for earthmoving equipment is mining activities and construction industry.
Within these industries, the key demand drivers going forward are likely to be road
construction, urban infrastructure, irrigation, real estate, construction and mining.ors

Earthmoving Equipment Segment

Total Market Size ~ US$ 1.4 billion

Excavators
Backhoes
Loaders
Others

Plastering
Machines
Cranes
Excavators
Excavators are extensively used in many roles such as digging of trenches and
foundations, demolition, general grading/landscaping, heavy lifting (e.g. lifting and placing
of large concrete pipes), river dredging, mining and brush cutting with hydraulic
attachments. Excavators come in a range of capacities and are usually classified on the basis

25
of tonnage. The lower end excavators, referred to as mini excavators, find greater usage in
urban infrastructure development and road development. The heavier duty excavators are
used in mining and heavy construction. In India, the level of technology of the equipment
manufactured is at par with international standards with some exceptions being the limited
usage of electronic controls and hydraulic systems and engines adhering to the latest
emission norms.
The excavator market in India was around US$ 733 million in FY’06 with a total of
about 4455 units being sold. There is a sizeable market for used equipment as well.
Excavators have registered a 30 per cent CAGR (Compounded Annual Growth Rate) for the
past four years. Given the long term nature of India’s infrastructure development plans,
similar growth rate is expected in future as well.
High end excavators incorporating modern technology are witnessing faster growth
compared to the traditional low end excavators. In terms of tonnage, 6–18 tonne excavators
have grown at a CAGR of 9 per cent while 18–22 tonne excavators have registered a growth
of 23 per cent CAGR during the period of FY’01-06. The 22-50 tonnes excavators have seen a
CAGR of 35 per cent and over 50 tonnes have registered 19 per cent CAGR in the same
period. Increase in the sales of smaller sized excavators is largely driven by irrigation
projects. Increased privatisation of mining and capacity augmentation in cement industry
has propelled the growth for larger excavators. The key players in this sector are Telcon,
L&T-Komatsu, Volvo, CAT and JCB. Telcon is the market leader with about 50 per cent of the
market.

New entrants gaining share

A product range catering to the entire basket of equipment requirement of the
customer is one of the differentiators in the market place. Indian players have the
advantage of long experience in the market, leading to deep relationships with buyers, well
spread out service networks and a deep understanding of the customer’s current and
emerging needs. Multinationals that are relatively new entrants have strengths in the areas
of technology, presence across the spectrum of equipment and providing end-to-end
solutions.
New technology enables better quality of service, low cost of ownership (low fuel
consumption, less downtime, ease of maintenance, etc.), better resale value and reliability

26
even in case of overuse or abuse of the equipment. Presence across the spectrum enables
the firm to present a one-stop shop to customers. End-to-end solutions to customers help in
retaining customers over the entire equipment usage cycle, right from financing through
service and maintenance, till resale/disposal. Based on these strengths, over the last few
years, relatively new entrants into the Indian market have been gaining share at the
expense of the traditional market leaders.

Backhoe
The backhoe loader, consisting of a tractor, front shovel/bucket and small backhoe in
the rear is a versatile piece of equipment and is therefore often the only piece of heavy
equipment brought onto small to medium landscaping projects. A backhoe can duplicate
the work of a bulldozer, front end loader and excavator. The backhoe loader also has the
advantage of being driven directly to
the different job areas as opposed to other specialised machines which need to be towed
into the site and require external power sources.
India is the second largest market for backhoe loaders in the world with a market size
of approximately US$ 358 million. The market has been growing at a rate of close to 37 per
cent CAGR over last four years. Going ahead growth is likely to be at least 11 per cent CAGR
over the next few years. Most industry players however expect much faster growth (around
30-40 per cent) in the near term. JCB India is the leader in this segment with a share of over
70 per cent.
Other players include Telcon, L&T, Caterpillar and Terex. While technology plays a key role
especially for lowering operating costs by making the machine more fuel efficient, it is not
perceived to be as important for backhoes as it is for
excavators. With more players and increased competition, price competition may increase.
The drivers for this market have been the housing and urban construction. Backhoes are
used for all construction applications and hence have a very high utilisation for renters.
Backhoes are perhaps the only market in India amongst construction equipment that have
reached a stage of maturity and scale where exports could be considered.

27
Loaders
Loaders are used mainly for uploading materials into trucks, laying pipes, clearing
rubble, and digging. The flexibility of usage is low as compared to a backhoe and loaders are
largely used as complimentary products for material re-handling in construction and mining
applications.
The total market for wheeled loaders was approximately US$ 64 million in FY’06 with
a total of about 1321 units being sold and has been growing at a CAGR of about 41 per cent
over the last 4 years. The growth is expected to continue at 10 per cent CAGR over the next
few years. As in the case of
backhoes, faster growth of about 20-30 per cent is expected in the near term. Unlike
excavators, the growth in loaders is greater in the lower capacity categories (<10T). Key
players in the Loaders market are Caterpillar (~50 per cent share), JCB and Telcon with L&T
Komatsu and Volvo being players
with a relatively smaller presence. In the high capacity loaders market (>15T), Volvo is a
significant player.
Most of the customers for loaders are first time buyers and this is the reason for
huge sales of lower end loaders. Just as it is for excavators, a complete range of products
and comprehensive maintenance and service support are becoming the critical success
factors for players in the industry. The demand of loaders is from increased global demand
for iron ore mining activities in the country.

Construction Equipment & Vehicles

Equipment in this category typically find multi purpose application for various
construction activities. Some of the construction equipment used are road rollers, concrete
equipment, mixers, hot plant mixers, stone crushers, compactors, pavers, pneumatic tyre
rollers (PTR), dumpers, tippers, trailers, and others. Compactors account for majority of the
market share of road construction equipment. There are two main types of compactors
-Tandem Vibratory Rollers (TVR) and soil compactors. These are used for compaction of
asphalt and soil respectively primarily in road construction. The road construction
equipment market share was around US$ 175 million in FY ’06. Of this, the compactor
market (TVR and Soil Compactors) was about US$ 48 million, with a total of about 1076
units being sold (516 TVR and 560 soil compactors). Reconditioned equipment account for

28
about 5–10 per cent of this segment. The segment has seen erratic growth over the last 3
years owing largely to delays in the road infrastructure development plans of the
Government. However, the CAGR over the last 3 years has been healthy at 20 per cent.
Going ahead, growth is likely to be at least 11 per cent CAGR over the long term. Demand
for road construction equipment will be driven not only by road construction activities but
also by irrigation, power projects and other construction activities.
Some of the major players in this sector are Ingersoll Rand (IR), Escorts Construction
Equipment Limited (ECEL), L&T and Greaves. These companies largely compete on price
though there are differentiators around service support. The market is now led by Ingersoll
Rand with around 37 per cent market share in the TVR and soil compactors market. Both
ECEL and L&T account for about 22 per cent each in the TVR and soil compactor market.
Greaves occupies fourth position with a share of 17 per cent a large part of which it has
gained in the last year (increase in share from 9-17 per cent between FY05 and FY06) mainly
at the expense of IR.
Tunneling & Drilling equipment are primarily used for mining, irrigation, construction
(road, ports, airports, railways, power, etc.), urban infrastructure, and pipeline
infrastructure. The product range in this category includes Rotary / DTH drilling, hammer
track drill, boring equipment, and demolition equipment. Bharat Earthmovers Limited
(BEML) & Caterpillar lead the market of construction vehicles, consisting primarily of
dumpers & dozers. The competitive advantage of construction equipment lies on
technological superiority and a wide product portfolio. It’s also important to maintain strong
relationships with the large, organised buyers.

Material Handling Equipment

The chart below explains the different material handling equipment and their market
share. Pick and carry cranes is the largest segment with 27 per cent share of the US$ 325
million material handling equipment market. Slew cranes, crawler cranes and tower cranes
together account for another 24 per cent. Forklifts have 12 per cent share.

29
 Material Handling Equipment Market Share
Total Market Size ~ US$ 325 Million
Pick-n-Carry Cranes 27%
Forklift 12%
Slew Cranes 11%
Crawler Cranes 8%
Tower Cranes 5%
Others 37%
Pick & Carry Cranes
Pick and Carry cranes provide wide range of applications and high cost economies in
material handling requirements. Some of the typical uses include loading, unloading,
moving, shifting and erecting material.
The pick-n-carry crane segment in India has an estimated market size of US$ 87 million
(3698 units), and these cranes comprise 27 per cent of the overall material handling market
and over 50 per cent of the cranes market. The market has grown at a CAGR of 72 per cent
in volume terms in the last 3 years. Going forward, the growth rate is expected to be in the
range of 15-20 per cent over the next few years.
The key drivers are the construction and industrial sectors. Within the construction
sector the key demand driver is urban infrastructure (expected investment growth of 13 per
cent annually). Within industrial applications, the key demand drivers are steel and power
industries (growing at around 9 per cent annually).
The major players in this segment are ECEL and Actions Construction Equipment
(ACE). While ECEL has been the traditional leader in this segment, ACE has been gaining
share. A third player – Omega – has been able to capture 2.5 per cent of the market within
one year of commencing production. The barriers of entry in this segment are low. The first
movers have the added advantage of established sales, service and distribution network
along with an existing component supplier.

30
Other Cranes
Other cranes prevalent in India primarily consist of slew cranes, crawler cranes and
tower cranes. These are higher value, more sophisticated cranes than pick-n-carry cranes
and are typically used for heavier duty work.
The market for slew cranes is about US$ 35 million (300 numbers) with about US$ 13
million (180 numbers) of this being accounted for by imported used equipment. Within slew
cranes, yard cranes are the most prominent, comprising 65 per cent of all new slew cranes.
The crawler cranes market is about US$ 25 million (210 numbers) with imported used
cranes comprising about US$ 9.5 million (110 numbers). Tower cranes are about US$ 15.6
million (175 numbers).

In volume terms other cranes comprise about 16 percent of the overall cranes market
in India, but in value terms these cranes account for almost 47 per cent of the market. While
slew cranes have witnessed a CAGR of 34 per cent over the last 2 years, tower cranes have
grown at 71 percent CAGR in the same period. Industry sources indicate a growth rate of
between 15-20 per cent over the next few years.
Demand for other cranes is driven primarily by the construction and industrial
sectors. Within industrial applications, the key demand drivers going forward are likely to be
the power, refinery and mining sectors. With increasing average scale of infrastructure and
construction projects, the growth rate of slew (specifically yard/rough terrain) and tower
cranes is likely to surpass the average growth rate of the overall cranes segment. With
improved road networks by 2008-09, demand for truck mounted cranes may also witness a
spike. In the slew cranes segment, used imports dominate the market, with Tractors India
Limited (TIL) being the market largest domestic player. TIL and ECEL have a market share of
around 32 per cent and 6 per cent in terms of volumes. Telcon is the sole player in the
crawler cranes segment with a share of approximately 50 per cent by volume (balance is
accounted for by used imports). Shirke Potain is the market leader in the Tower crane
category with 50 per cent market share followed by ACE at 25 per cent market share. ACE
plans to widen its product portfolio in the cranes segment through manufacture of Truck
Mounted and Tower cranes. This segment has healthy growth prospects.

31
Forklifts
Fork lifts are low tonnage vehicles used to transport materials stored in pallets, within
limited spaces. Most forklifts are in the 1 tonne–5 tonnes range, though equipment up to 20
tonne are available. The flexibility and speed these equipment offer make them ideal for
repetitive material handling tasks especially in restricted areas like warehouses and yards.
There are 3 types of forklifts based on fuel input - Diesel, Liquefied Petroleum Gas
(LPG) and Battery. Each variant finds application in different industries based on the load
factor determined by the power inputs, pollution etc. The current market is approximately
of 2150 units per annum for forklifts with a market size of approximately US$ 38 million. The
segment has been on a 20 per cent growth trajectory year-on-year and is estimated to grow
at a CAGR between 10-20 per cent. Diesel powered forklifts comprise a bulk of the market
size at 83 per cent and are likely to drive growth going forward. Demand for forklifts will be
driven primarily by new capacity creation and increased automation in the manufacturing
and logistics (warehousing) sectors.
Forklifts contribute to making the end user industry organised and less labour intensive
(in material handling). It has also increased the levels of palletisation and containerisation.
Godrej and Voltas are the two major players having around 80 per cent market share, with
Godrej having 48 per cent share. The forklifts market is highly price sensitive.
Technology is presently not seen as a differentiator, but with the end user industries
becoming more organised and competitive, it would become increasingly important.

32
 CHAPTER-2

REVIEW OF LITERATURE

33
 REVIEW OF LITERATURE

MEANING OF MARKETING
The managementprocess through which goods and servicesmove from concept to the
customer. As a practice, it consists in coordination of four elements called 4P's: (1)
identification, selection, and development of a product, (2) determination of its price, (3)
selection of a distribution channel to reach the customer's place, and (4) development and
implementation of a promotional strategy.

MEANING OF MARKETING STRATEGY

A marketing strategy is a process or model to allow a company or organization to focus limited
resources on the best opportunities to increase sales and thereby achieve a sustainable
competitive advantage.

TYPES OF MARKETING STRATEGY

One of the most important concepts of the marketing planning process is the need to develop a
cohesive marketing strategy that guides tactical programs for the marketing decision areas. In
marketing there are two levels to strategy formulation:
 General Marketing Strategies
 Decision Area Strategies

General Marketing Strategies

These set the direction for all marketing efforts by describing, in general terms, how marketing
will achieve its objectives. There are many different General Marketing Strategies, though most
can be viewed as falling into one of the following categories:
 Market Expansion
 Market Share Growth
 Niche Market
 Status Quo
 Market Exit

34
Decision Area Strategies
These are used to achieve the General Marketing Strategies by guiding the decisions within
important marketing areas (product, pricing, distribution, promotion, target marketing). For
example, a General Marketing Strategy that centres on entering a new market with new
products may be supported by Decision Area Strategies that include:
 Target Marketing management – employ segmenting techniques
 Product Strategy – develop new product line
 Pricing Strategy – create price programs that offer lower pricing versus competitors
 Distribution Strategy – use methods to gain access to important distribution partners
that service the target market
 Promotion Strategy – create a plan that can quickly build awareness of the product

Marketing Strategy objectives

 Increase product awareness among the target audience by 30 percent in one year.
 Inform target audience about features and benefits of our product and its competitive
advantage, leading to a 10 percent increase in sales in one year.
 Decrease or remove potential customers' resistance to buying our product, leading to
a 20 percent increase in sales that are closed in six months or less.
If you have multiple objectives, make sure they are consistent and not in conflict with
each other. Also, be sure that the remainder of your marketing plan components - the
marketing strategy, budget, action programs, controls and measures - supports your
marketing objectives.
Setting your marketing objectives and finalizing the remaining components of your
marketing plan may serve as a reality check: Do you have the resources necessary to
accomplish your objectives?
The marketing strategy section of your plan outlines your game plan to achieve your
marketing objectives. It is, essentially, the heart of the marketing plan. The marketing
strategy section should include information about:
 Product - your product(s)and services
 Price - what you will charge customers for products and services

35
  Promotion - how you will promote or create awareness of your product in the
marketplace
 Place (distribution) - how you will bring your product(s) together with your
customers.

LIMITATION OF MARKETING STRATGY

 leads to faulty marketing decisions based on improperly analyzed data
 creates unrealistic financial projections if information is interpreted incorrectly

MARKETING MANAGEMENT
Marketing Management is a business discipline which is focused on the practical application of
marketing techniques and the management of a firm's marketing resources and activities.
Rapidly emerging forces of globalization have compelled firms to market beyond the borders of
their home country making International marketing highly significant and an integral part of a
firm's marketing strategy. Marketing managers are often responsible for influencing the level,
timing, and composition of customer demand accepted definition of the term. In part, this is
because the role of a marketing manager can vary significantly based on a business' size,
corporate culture, and industry context. For example, in a large consumer products company,
the marketing manager may act as the overall general manager of his or her assigned product
To create an effective, cost-efficient Marketing management strategy, firms must possess a
detailed, objective understanding of their own business and the market in which they operate.
In analyzing these issues, the discipline of marketing management often overlaps with the
related discipline of strategic planning.
Marketing management often finds it necessary to invest in research to collect the data
required to perform accurate marketing analysis. As such, they often conduct market research
(alternately marketing research) to obtain this information. Marketers employ a variety of
techniques to conduct market research, but some of the more common include:
Qualitative marketing research, such as focus groups
Quantitative marketing research, such as statistical surveys
Experimental techniques such as test markets
Observational techniques such as ethnographic (on-site) observation

36
 In today's very competitive marketplace a strategy that insures a consistent approach to
offering your product or service in a way that will outsell the competition is critical. However, in
concert with defining the marketing strategy one must also have a well - defined methodology
for the day-to-day process of implementing it. It is of little value to have a strategy if you lack
either the resources or the expertise to implement it. There are two major components of
marketing strategy:
 How the enterprise will address the competitive marketplace
 How will it implement and support day-to-day operations.
In the process of creating a marketing strategy one must consider all the relevant factors. Each
strategy must address some unique considerations; it is not reasonable to identify every
important factor at a generic level. However, many are common to all marketing strategies.
Some of the more critical are described below. In general this falls into one of four categories:
 Where the market is very attractive and the enterprise is strong, one will invest the best
resources in support of the offering.
 Where the market is very attractive but the enterprise is weak, one must concentrate on
strengthening the enterprise, using the offering as a stepping-stone toward this objective.
 Where the market is not especially attractive, but the enterprise is strong then an effective
marketing and sales effort for the offering will be good for generating near term profits.
 Where the market is not especially attractive and the enterprise is weak, one should promote
this offering only if it supports a more profitable part of the business. Otherwise, one should
determine the most cost effective way to divest the enterprise of this offering.
Now, the next step is to choose a strategy for the offering that will be most effective in the
market. This means choosing one of the following 'generic' strategies:

A COST LEADERSHIP STRATEGY

It is based on the concept that one can produce and market a good quality product or service at
a lower cost than its competitors. These low costs should translate to profit margins that are
higher than the industry average.
Some conditions that should exist to support a cost leadership strategy include an on-going
availability of operating capital, good process engineering skills, and close management of
labor, products designed for ease of manufacturing and low cost distribution.

37
 A DIFFERENTIATION STRATEGY
It is the one, which creates a product or service that is perceived as being unique "throughout
the industry". The emphasis can be on brand image, proprietary technology, special features,
superior service, a strong distributor network or other aspects that might be specific to the
industry. This uniqueness should also translate to profit margins that are higher than the
industry average. Some of the conditions that should exist to support a differentiation strategy
include strong marketing abilities, effective product engineering, creative personnel, the ability
to perform basic research and a good reputation.
A FOCUS STRATEGY
It may be the most sophisticated of the generic strategies, in the sense that it is a more 'intense'
form of either the cost leadership or differentiation strategy. It is based on the concept of
serving a particular target in such an exceptional manner, those others cannot compete. Usually
this means addressing a substantially smaller market segment than others in the industry, but
because of minimal competition, profit margins can be very high.
PRICING STRATEGY
Having defined the overall offering objective and selecting the generic strategy one must decide
on a variety of closely related operational strategies. One of these is how one will price the
offering. A pricing strategy is mostly influenced by the net income. There are three basic
strategies one can consider.
 A SKIMMING STRATEGY:
Where the offering has enough differentiation to justify a high price and one desire quick cash
and have minimal desires for significant market penetration and control, then one sets the
prices very high.
 A MARKET PENETRATION STRATEGY:
Where near term income is not so critical and rapid market penetration for eventual market
control is desired, then one must set the prices very low.
 A COMPARABLE PRICING STRATEGY:
Where one is not the market leader in the industry then the leaders will most likely have
created a 'price expectation' in the minds of the marketplace. In this case one can price the
offering comparably to those of its competitors.

38
 PROMOTION
To sell an offering one must effectively promote and advertise it. There are two basic
promotional strategies, PUSH and PULL.
 THE PUSH STRATEGY:
It maximizes the use of all available channels of distribution to "push" the offering into the
marketplace. This usually requires generous discounts to achieve the objective of giving the
channels incentive to promote the offering, thus minimizing
the need for advertising.

 THE PULL STRATEGY:

It requires direct interface with the end user of the offering. Use of channels of distribution is
minimized during the first stages of promotion and a major commitment to advertising is
required. The objective is to "pull" the prospects into the various channel outlets creating a
demand the channels cannot ignore.

 DISTRIBUTION
One must also select the distribution strategy(s) which should get the offering into the hands of
the customer. These include:
 On-premise Sales involving the sale of the offering using a field sales organization
that visits the prospect's facilities to make the sale.
 Direct Sales involves the sale of the offering using a direct, in-house sales
organization that does all selling through the Internet, telephone or mail order contacts.
 Wholesale Sales involves the sale of the offering using intermediaries or "middle-
men" to distribute product or service to the retailers.
 Self-service Retail Sales involves the sale of the offering using self-service retail
methods of distribution.
 Full-service Retail Sales involves the sale of the offering through a full service retail
distribution channel.

39
 CONCLUSION
After defining the strategy one must use the information one has gathered to determine
whether this strategy will achieve the objective of making the enterprise competitive in the
marketplace. It is essential to know who the competitors are and to understand their strengths
and weaknesses.
Various factors to consider include:
 Each of the competitor’s experience,
 Staying power,
 Market position,
 Strength,
 Predictability and
 Freedom to abandon the market must be evaluated.

40
 PRODUCT
The noun product is defined as a "thing produced by labor or effort" or the "result of an act or a
process" and stems from the verb produce, from the Latin prōdūce (re) '(to) lead or bring forth'.
Since 1575, the word "product" has referred to anything produced. Since 1695, the word has
referred to "thing or things produced". The economic or commercial meaning of product was
first used by political economist Adam Smith.
In marketing, a product is anything that can be offered to a market that might satisfy a want or
need. In retailing, products are called merchandise. In manufacturing, products are purchased
as raw materials and sold as finished goods. Commodities are usually raw materials such as
metals and agricultural products, but a commodity can also be anything widely available in the
open market. In project management, products are the formal definition of the project
deliverables that make up or contribute to delivering the objectives of the project.
In general, product may refer to a single item or unit, a group of equivalent products, a grouping
of goods or services, or an industrial classification for the goods or services.
A related concept is subproduct, a secondary but useful result of a production process.
Dangerous products, particularly physical ones, that cause injuries to consumers or bystanders
may be subject to product liability.

Tangible and intangible products

Products can be classified as tangible or intangible. A tangible product is any physical product
that can be touched like a computer, automobile, etc. An intangible product is a non-physical
product like an insurance policy.
In its online product catalog, retailer Sears, Roebuck and Company divides its products into
departments, then presents products to shoppers according to (1) function or (2) brand. Each
product has a Sears item number and a manufacturer's model number. The departments and
product groupings that Sears uses are intended to help customers browse products by function
or brand within a traditional department store structure.

41
Sizes and colors
A catalog number, especially for clothing, may group sizes and colors. When ordering the
product, the customer specifies size, color and other variables. [9]
Product line
A product line is "a group of products that are closely related, either because they function in a
similar manner, are sold to the same customer groups, are marketed through the same types of
outlets, or fall within given price ranges."
Many businesses offer a range of product lines which may be unique to a single organization or
may be common across the business's industry. In 2002 the US Census compiled revenue figures
for the finance and insurance industry by various product lines such as "accident, health and
medical insurance premiums" and "income from secured consumer loans". Within the
insurance industry, product lines are indicated by the type of risk coverage, such as auto
insurance, commercial insurance and life insurance.
National and international product classifications
Various classification systems for products have been developed for economic statistical
purposes. The North American Industry Classification System (NAICS) classifies companies by
their primary product [this is not even close to true, NAICS is a production-oriented
classification system, not a product-oriented classification system – the NAFTA signatories are
working on a system that classifies products called NAPCS as a companion to NAICS [1]. The
European Union uses a "Classification of Products by Activity" among other product
classifications. The United Nations also classifies products for international economic activity
reporting.
The Aspinwall Classification System classifies and rates products based on five variables:
Replacement rate (How frequently is the product repurchased?)
Gross margin (How much profit is obtained from each product?)
Buyer goal adjustment (How flexible are the buyers' purchasing habits with regard to this
product?)
Duration of product satisfaction. (How long will the product produce benefits for the user?)
Duration of buyer search behavior. (How long will consumers shop for the product ?)
The National Institute of Governmental Purchasing (NIGP)[17] developed a commodity and
services classification system for use by state and local governments, the NIGP Code. The NIGP

42
Code is used by 33 states within the United States as well as thousands of cities, counties and
political subdivisions. The NIGP Code is a hierarchical schema consisting of a 3 digit class, 5 digit
class-item, 7 digit class-item-group and an 11 digit class-item-group-detail. Applications of the
NIGP Code include vendor registration, inventory item identification, contract item
management, spend analysis and strategic sourcing.

PRICE
Definition
In ordinary usage, price is the quantity of payment or compensation given from one party to
another in return for goods or services.
In all modern economies, the overwhelming majority of prices are quoted in (and the
transactions involve) units of some form of currency. Although in theory, prices could be quoted
as quantities of other goods or services this sort of barter exchange is rarely seen.
Price can sometimes alternatively refer to the quantity of payment requested by a seller of
goods or services, rather than the eventual payment amount. This requested amount is often
called the asking price or selling price, while the actual payment may be called the transaction
price or traded price. Likewise, the bid price or buying price is the quantity of payment offered
by a buyer of goods or services, although this meaning is more common in asset or financial
markets than in consumer markets.
Economic Definition
Economists sometimes define price in a more general or abstract sense to the widely
understood definition above. According to this view, price is defined as the ratio between the
quantity of goods that are exchanged for each other in a transaction.
For example, consider the case of two people exchanging goods, say 5 apples for 2 loaves of
bread. An economist might say that the price of apples was 2/5 = 0.4 loaves of bread. Likewise,
the price of bread would be 5/2 = 2.5 apples. Hence if we consider that currency is simply
another type of good like apples or bread, then this conception forms the general case of the
widely held definition outlined above.
However it is far from clear that this generalisation serves any useful purpose at all. As noted
above, in all real economies prices are virtually always quoted in (and transactions always
involve) units of currency. Hence, an alternative view is that the most basic and general

43
definition of price is that involving exchange of goods or sevices for money, and that the
exchange ratio between two goods is simply derived from the two individual prices.
The exchange ratio is sometimes referred to as the real price, while the price quoted in money
referred to as the nominal price.
This distinction is sometimes made to make sense of inflation. When all prices are quoted in
terms of money units, and the prices in money units change more or less proportionately, the
ratio of exchange may not change much. In the extreme case, if all prices quoted in money
change in the same proportion, the relative price remains the same.
It is now becoming clear that the distinction is not useful and indeed hides a major confusion.
The conventional wisdom is that proportional change in all nominal prices does not affect real
price, and hence should not affect either demand or supply and therefore also should not affect
output. The new criticism is that the crucial question is why is there more money to pay for the
same old real output. If this question is answered, it will show that dynamically, even as the real
price remains exactly the same, output in real terms can change, just because additional money
allow additional output to be traded. The supply curve can shift such that at the old price, the
new higher output is sold. This shift if not possible without additional money.
From this point of view, a price is similar to an opportunity cost, that is, what must be given up
in exchange for the good or service that is being purchased. For example, if x=1 and y=2, the
relative price of x in terms of y is 2, and the price of y in terms of x is 0.5.

PRICE THEORY
Theory of price asserts that the market price reflects interaction between two opposing
considerations. On the one side are demand considerations based on marginal utility, while on
the other side are supply considerations based on marginal cost. An equilibrium price is
supposed to be at once equal to marginal utility (counted in units of income) from the buyer's
side and marginal cost from the seller's side. Though this view is accepted by almost every
economist, and it constitutes the core of mainstream economics, it has recently been
challenged seriously.
Price and Value
There was time when people debated use-value versus exchange value, often wondering about
the paradox of value (diamond-water paradox). The use-value was supposed to give some

44
measure of usefulness, later refined as marginal benefit (which is marginal utility counted in
common units of value) while exchange value was the measure of how much one good was in
terms of another, namely what is now called relative price.
Austrian theory
The last objection is also sometimes interpreted as the paradox of value, which was observed by
classical economists. Adam Smith described what is now called the Diamond – Water Paradox:
diamonds command a higher price than water, yet water is essential for life, while diamonds
are merely ornamentation. One solution offered to this paradox is through the theory of
marginal utility proposed by Carl Menger, the father of the Austrian School of economics.
As William Barber put it, human volition, the human subject, was "brought to the centre of the
stage" by marginalist economics, as a bargaining tool. Neoclassical economists sought to clarify
choices open to producers and consumers in market situations, and thus "fears that cleavages
in the economic structure might be unbridgeable could be suppressed".
Without denying the applicability of the Austrian theory of value as subjective only, within
certain contexts of price behavior, the Polish economist Oskar Lange felt it was necessary to
attempt a serious integration of the insights of classical political economy with neo-classical
economics. This would then result in a much more realistic theory of price and of real behavior
in response to prices. Marginalist theory lacked anything like a theory of the social framework
of real market functioning, and criticism sparked off by the capital controversy initiated by Piero
Sraffa revealed that most of the foundational tenets of the marginalist theory of value either
reduced to tautologies, or that the theory was true only if counter-factual conditions applied.
One insight often ignored in the debates about price theory is something that businessmen are
keenly aware of: in different markets, prices may not function according to the same principles
except in some very abstract (and therefore not very useful) sense. From the classical political
economists to Michal Kalecki it was known that prices for industrial goods behaved differently
from prices for agricultural goods, but this idea could be extended further to other broad
classes of goods and services.
Price as productive human labor time
Marxists assert that value derives from the volume of socially necessary abstract labor time
exerted in the creation of an object. This value does not relate to price in a simple manner, and
the difficulty of the conversion of the mass of values into the actual prices is known as the
transformation problem. However, many recent Marxists deny that any problem exists. Marx

45
was not concerned with proving that prices derive from values. In fact, he admonished the
other classical political economists (like Ricardo and Smith) for trying to make this proof. Rather,
for Marx, price equal the cost of production (capital-cost and labor-costs) plus the average rate
of profit. So if the average rate of profit (return on capital investment) is 22% then prices would
reflect cost-of-production plus 22%. The perception that there is a transformation problem in
Marx stems from the injection of Walrasian equilibrium theory into Marxism where there is no
such thing as equilibrium.
Confusion between prices and costs of production
Price is commonly confused with the notion of cost of production as in “I paid a high cost for
buying my new plasma television”. Technically, though, these are different concepts. Price is
what a buyer pays to acquire products from a seller. Cost of production concerns the seller’s
investment (e.g., manufacturing expense) in the product being exchanged with a buyer. For
marketing organizations seeking to make a profit the hope is that price will exceed cost of
production so the organization can see financial gain from the transaction. Finally, while pricing
is a topic central to a company's profitability, pricing decisions are not limited to for-profit
companies. Non-profit organizations, such as charities, educational institutions and industry
trade groups, also set prices, though this is often not as apparent. For instance, charities seeking
to raise money may set different “target” levels for donations that reward donors with
increases in status (e.g., name in newsletter), gifts or other benefits. While a charitable
organization may not call it a price in their promotional material, in reality these targets are
prices since they specify a cost that must be paid by buyers (donors) in order to obtain
something of value.

PLACE-DISTRIBUTION
A crucial decision in any marketing mix is to correctly identify the distribution channels. The
question " how to reach the customer" must always be in your mind.
-Definition: The place is where you can expect to find your customer and consequently, where
the sale is realized. Knowing this place, you have to look for a distribution channel in order to
reach your customer.
In fact, instead of "place" it would be better to use the word "distribution" but the BBA lingo
uses "place" to memorize the 4 Ps of the marketing mix!

46
Channels
It exists today, with the internet, more channels than in the past but basically, you have to
consider three main distribution channels:
-Selling to the customers: Whether you sell by yourself ( as retailer) whether you employ a
sales force, you are in these cases in front of the final customer. There are not intermediaries
between you and him. Unfortunately, except for the retailer business, this situation is far to be
the general case.
-Selling to the retailers: For example, you manufacture the fun boards and you sell them to the
Arizona retailers. This practice could be a bit complicated.
-Selling to the wholesalers: There are maybe four or five sport articles wholesalers in Arizona.
You sell your fun boards to these big men. On turn the wholesalers sell the fun boards to the
retailers which finally sell to their customers.
In the case of Pacific Boat which manufactures its boats in Philippines for customers located in
the USA or in Europe, there is not alternative ways. It must sell through some big import export
corporate's. Pacific boat has not any contact with its final customers but of course it must know
exactly their profile. If the product does not fit to the profile of the final customer, the
wholesaler will not buy it.
As you can see, the choice of your distribution channel heavily depends on your product and
place in the productive process. If you are in coal mining, do not expect to sell some coal
buckets to the final consumer!
The next drawing summarizes the different possible channels: You are represented by the black
square, the wholesaler by the maroon one, the retailer by the yellow and the customer by the
green!

Real life example:

A commodity is a product such as crude oil, coal, rice, wheat, sugar, copper and so on: Mainly
primary products and raw materials. In a commodity market, the products have very few
distinguished characteristics.
They are traded in few places like Chicago and London. In the rice market, there are maybe six
or seven big traders for the entire world in front of some hundred millions of little producers
grouped in cooperatives or primary marketing boards.
The big traders know each other very well and most of the bargain relies on trust.

47
Nevertheless, inside a type of channel, you keep the possibility to choose between the different
wholesalers and retailers. You have to choose the best. It means that your choice must focus on
two major facts: the margin and the image.

PROMOTION
Promotion is one of the four elements of marketing mix (product, price, promotion,
distribution). It is the communication link between sellers and buyers for the purpose of
influencing, informing, or persuading a potential buyer's purchasing decision. [1]
The following are two types of Promotion:
Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet, Mobile
Phones, and, historically, illustrated songs) in which the advertiser pays an advertising agency to
place the ad
Below the line promotion: All other promotion. Much of this is intended to be subtle enough for
the consumer to be unaware that promotion is taking place. E.g. sponsorship, product
placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public
relations, trade shows
The specification of five elements creates a promotional mix or promotional plan. These
elements are personal selling, advertising, sales promotion, direct marketing, and publicity. [2] A
promotional mix specifies how much attention to pay to each of the five subcategories, and
how much money to budget for each. A promotional plan can have a wide range of objectives,
including: sales increases, new product acceptance, creation of brand equity, positioning,
competitive retaliations, or creation of a corporate image. Fundamentally, however there are
three basic objectives of promotion. These are:
1.) To present information to consumers as well as others
2.)To increase demand
3.)To differentiate a product.
There are different ways to promote a product in different areas of media. Promoters use
internet advertisement, special events, endorsements, and newspapers to advertise their
product. Many times with the purchase of a product there is an incentive like discounts, free
items, or a contest. This is to increase the sales of a given product.
The term "promotion" is usually an "in" expression used internally by the marketing company,
but not normally to the public or the market - phrases like "special offer" are more common. An

48
example of a fully integrated, long-term, large-scale promotion are My Coke Rewards and Pepsi
Stuff
It is helpful to define the four main elements of the promotional mix before considering their
strengths and limitations.
(1) Advertising
Any paid form of non-personal communication of ideas or products in the "prime media": i.e.
television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is intended
to persuade and to inform. The two basic aspects of advertising are the message (what you
want your communication to say) and the medium (how you get your message across)
(2) Personal Selling
Oral communication with potential buyers of a product with the intention of making a sale. The
personal selling may focus initially on developing a relationship with the potential buyer, but
will always ultimately end with an attempt to "close the sale".
(3) Sales Promotion
Providing incentives to customers or to the distribution channel to stimulate demand for a
product.
(4) Publicity
The communication of a product, brand or business by placing information about it in the media
without paying for the time or media space directly. otherwise known as "public relations" or
PR.
Advantages and Disadvantages of Each Element of the Promotional Mix
Mix Element Advantages Disadvantages
Advertising Good for building awareness Impersonal - cannot answer all
Effective at reaching a wide audience a customer's questions Not
Repetition of main brand and product good at getting customers to
positioning helps build customer trust make a final purchasing
decision
Personal Highly interactive - lots of Costly - employing a sales
Selling communication between the buyer force has many hidden costs in
and sellerExcellent for communicating addition to wages Not suitable
complex / detailed product if there are thousands of
information and features important buyers

49
 Relationships can be built up -
important if closing the sale make take
a long time
Sales Can stimulate quick increases in sales If used over the long-term,
Promotion by targeting promotional incentives on customers may get used to the
particular products effect Too much promotion
Good short term tactical tool may damage the brand image
Public Often seen as more "credible" - since Risk of losing control - cannot
Relations the message seems to be coming from always control what other
a third party (e.g. magazine, people write or say about your
newspaper) product
Cheap way of reaching many
customers - if the publicity is achieved
through the right media

MARKETING RESEARCH
Marketing research involves conducting research to support marketing activities, and the
statistical interpretation of data into information. This information is then used by managers to
plan marketing activities, gauge the nature of a firm's marketing environment and attain
information from suppliers. Marketing researchers use statistical methods such as quantitative
research, qualitative research, hypothesis tests, Chi-squared tests, linear regression,
correlations, frequency distributions, poisson distributions, binomial distributions, etc. to
interpret their findings and convert data into information. The marketing research process
spans a number of stages including the definition of a problem, development of a research plan,
collecting and interpretation of data and disseminating information formally in form of a report.
The task of marketing research is to provide management with relevant, accurate, reliable,
valid, and current information.
A distinction should be made between marketing research and market research. Market
research pertains to research in a given market. As an example, a firm may conduct research in
a target market, after selecting a suitable market segment. In contrast, marketing research
relates to all research conducted within marketing. Thus, market research is a subset of
marketing research.

50
 Marketing Environment Market segmentation
Market segmentation pertains to the division of a market of consumers into persons with
similar needs and wants. As an example, if using Kellogg's cereals in this instance, Frosties are
marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both goods
aforementioned denote two products which are marketed to two distinct groups of persons,
both with like needs, traits, and wants.
The purpose for market segmentation is conducted for two main issues. First, a segmentation
allows a better allocation of a firm's finite resources. A firm only possesses a certain amount of
resources. Accordingly, it must make choices (and appreciate the related costs) in servicing
specific groups of consumers. Furthermore the diversified tastes of the contemporary Western
consumers can be served better. With more diversity in the tastes of modern consumers, firms
are taking note of the benefit of servicing a multiplicity of new markets.
Types of marketing research
Marketing research, as a sub-set aspect of marketing activities, can be divided into the following
parts:
 Primary research (also known as field research), which involves the conduction and
compilation of research for the purpose it was intended.
 Secondary research (also referred to as desk research), is initially conducted for one
purpose, but often used to support another purpose or end goal.
By these definitions, an example of primary research would be market research conducted into
health foods, which is used solely to ascertain the needs/wants of the target market for health
foods. Secondary research, again according to the above definition, would be research
pertaining to health foods, but used by a firm wishing to develop an unrelated product.
Primary research is often expensive to prepare, collect and interpret from data to information.
Nonetheless, while secondary research is relatively inexpensive, it often can become outdated
and outmoded, given it is used for a purpose other than for which is was intended. Primary
research can also be broken down into quantitative research and qualitative research, which as
the labels suggest, pertain to numerical and non-numerical research methods, techniques. The
appropriateness of each mode of research depends on whether data can be quantified
(quantitative research), or whether subjective, non-numeric or abstract concepts are required
to be studied (qualitative research)

51
 There also exists additional modes of marketing research, which are:
 Exploratory research, pertaining to research that investigates an assumption.
 Descriptive research, which as the label suggests, describes "what is".
 Predictive research, meaning research conducted to predict a future occurrence.
 Conclusive research, for the purpose of deriving a conclusion via a research process.

Marketing planning
The area of marketing planning involves forging a plan for a firm's marketing activities. A
marketing plan can also pertain to a specific product, as well as to an organization's overall
marketing strategy. Generally speaking, an organization's marketing planning process is derived
from its overall business strategy. Thus, when top management are devising the firm's strategic
direction or mission, the intended marketing activities are incorporated into this plan. There are
several levels of marketing objectives within an organization. The senior management of a firm
would formulate a general business strategy for a firm. However, this general business strategy
would be interpreted and implemented in different contexts throughout the firm.

Marketing Strategy
The field of marketing strategy encompasses the strategy involved in the management of a
given product.
A given firm may hold numerous products in the marketplace, spanning numerous and
sometimes wholly unrelated industries. Accordingly, a plan is required in order to manage
effectively such products. Evidently, a company needs to weigh up and ascertain how to utilize
effectively its finite resources. As an example, a start-up car manufacturing firm would face little
success, should it attempt to rival immediately Toyota, Ford, Nissan or any other large global car
maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest,
or a ceasing of production may be made. With regard to the aforesaid questions, each scenario
requires a unique marketing strategy to be employed. Below are listed some prominent
marketing strategy models, which seek to propose means to answer the preceding questions.

52
 CHAPTER-3

RESEARCH METHODOLOGY

53
 RESEARCH METHODOLOGY

A research process consists of stages or steps that guide the project from its
conception through the final analysis, recommendations and ultimate action. The research
process provides a systematic, planned approach to the research project and ensures all
aspects of the research project are consistent with each other.
Research studies evolve through a series of steps, each representing the answer to a
key question.

Research Design:
A research design is the overall framework of the plan used for the collection and
analysis of the data in the financial statement. In corporate, any research, any report should
be problem defined a plan for gathering and analysis of data. A time framework and budget
estimate the research design and present in organised and systematic form.
In fact a suitable research design guards against collection of the irrelevant data
therefore results in more economy.
I propose to conduct a intensive secondary research to understand the full impact
and implication of the industry, to review and critique the industry norms and reports, on
which certain issues shall be selected, which I feel remain unanswered or liable to change,
this shall be further taken up in the next stage of exploratory research. This stage shall help
me to restrict and select only the important question and issue, which inhabit the growth in
the industry.
The various tasks that I have undertaken in the research design process are:
 Defining the information need.
 Design the exploratory, descriptive and causal report.

Research Objective:
The first step is while conducting definition of research problem. The project
undertaken is “value addition that marketer make”. The objective of the study is to find out
the current market share of ECEL and suggesting the ways to increase the market share.
Sub objectives of study are:
 To study the consumer behaviour regarding ECEL products.

54
  To make Marketing management for ECEL products.
 To make SWOT analysis of ECEL.

Data Sources:
Primary as well as secondary source of data were used for the analysis.
Primary data was collected through interview of customers.
Secondary data comes through were:
 Company profile
 Company website
 Magazines, product catalogue, journal & newspaper etc.
 Search engine site

Research approach:
A personal interaction with customers has been the main approach to collect the
information required.
The research process has four distinct yet interrelated steps for research analysis.
It has logical and hierarchical ordering.
Each step is viewed as separate process that includes a set of task, step and specific
procedure. The steps undertaken are logical, objective, systematic, reliable, valid,
impersonal and ongoing.

EXPLORATORY RESEARCH
The method I used for exploratory research was
o Primary Data
o Secondary Data

Primary Data
New data gathered to help solve the problem at hand. As compared to secondary
data which is previously gathered data. An example is information gathered by
questionnaire. Qualitative or quantitative data that are newly collected in the course of
research, consists of original information that comes from people and includes information

55
gathered from surveys, focus groups, independent observations and test results. Data
gathered by the researcher in the act of conducting research.
This is contrasted to secondary data, which entails the data gathered by someone
other than the researcher information that is obtained directly from first- hand sources by
means of surveys, observation or experimentation.

SECONDARY DATA
Information that already exists somewhere, having been collected for another
purpose. Sources include census reports, trade publications, and subscription services.
There are two types of secondary data: internal and external secondary data. Information
compiled inside or outside the organization for some purpose other than the current
investigation. Researching information, which has already been published? Market
information compiled for purposes other than the current research effort; it can be internal
data, such as existing sales-tracking information, or it can be research conducted by
someone else, such as a market research company or the U.S. government.

Secondary source of data consists of books and websites

My proposal is to first to conduct a intensive secondary research to understand the

full impact and implication of the industry, to review and critique the industry norms and
reports, on which certain issues shall be selected, which I feel remain unanswered or liable
to change, this shall be further taken up in the next stage of exploratory research.

DESCRIPTIVE RESEARCH
STEPS in descriptive research:
 Statement of the problem
 Identification of information needed to solve the problem.

 Selection or development of instruments for gathering the information.

 Identification of target population and determination of sampling plan.

 Design of procedure for information collection.

56
  Collection of information.

 Analysis of information.

 Generalizations and / or predictions.

Research Instrument:
To carry out research, we used questionnaire research instrument. Questionnaire have
completely open ended question to know respondent inter feeling, and Dichotomous,
multiple choice and rating scale ended question. This also includes service related issues.

Sampling Plan:
After deciding on the research approach and instrument, marketing researcher must design
a sampling plan: This call for three decisions.
1. Sampling unit: Who to be observed?
In our research target population include those customer who do business in small
scale.
2. Sampling size: How many people should be surveyed?
Due to time and money constraint we covered only 50 respondents.
3. Sampling Procedure: How should the respondent to be chosen?
In our study, we covered only those customer who are using ECEL products.

LIMITATION OF THE STUDY

 Time constraint: Time constraint from one of the biggest constraint. The time
available for the study was less as such it hinders the progress of the study.
 Money constraint: The money available with researcher also imposed a limitation on
the comprehensive of the research.
 Non coverage of certain aspect: Non availability of data hinders progress of study.

57
 CHAPTER-4

SWOT ANALYSIS

58
 SWOT ANALYSIS OF ECEL

STRENGTHS
 Superior machine vis-à-vis competition
 The strength of ECEL lies in its strong network, it has nationwide dealer network of
above 45 dealers and has overseas. It has also 12 business centres located at all
strategic point. It has the widest distribution network in India.
 Their product of high quality developed with latest and imported technology. ECEL
has tie up with a number of reputed companies.
 Their product range is also very large in Pick ‘n’ Carry cranes. And they are the new
entrant in Backhoe loader which manufactured and assembled with the latest
technology.
 ECEL is backed by a strong and reputed Escort Group. This has got its own brand
image.
 ECEL has entered in the field of material handling equipment in 1971 since then they
have got experience of around 35 years. ECEL has since emerged as the world largest
manufacturer of Pick ‘n’ Carry hydraulic mobile cranes.
 It also has good man power with Experienced & talented professionals.

WEAKNESSES
 ECEL had not entered into whole construction equipment industry. Their main focus
is in Cranes, Compactors, Loaders & Forklifts.
 According to the customer survey, ECEL customers are not happy with after sales
service. From their point of view, servicing doesn’t happen on time.

OPPORTUNITIES
 Scope of increase in market share due to emergence of new markets
 Potential of increase in sale because of increasing concern an environment safely
among the organisation.
 A government is paying more attention towards improving the infrastructure.

59
THREATS

 In 1991 Indian adopted globalisation from them the bigger MNC’s are coming and
setting up their manufacturing base in India. It is a major threat for existing players.
They have strong financial backups and it became a difficult for domestic firms to
compete with them.
 The industry is quite fragmented, in which small player play a very important role.
The built customized products with cheaper quality techniques. They are eating up
the market share of bigger players.

60
 CHAPTER-5

DATA ANALYSIS

61
 BUSINESS
What type of business do you own?
a) Sole proprietorship-30    Partnership-20 Corporation-40 others-10

others
10%
sole
propriet
orship sole
30% proprieto
rship
partners
corporat hip
corporati

ion on
others

40%
partners
hip
20%
On the basis of the survey its easily seems that 30% people are sole proprietorship, 20% are in
partnership, 40% in corporation and others are of 10%.

Busiest Day
When is the busiest day of the week in your business?
a) Monday-30% b)Tuesday-10% c)Wednesday-20% d)Thursday-10%
e)Friday-20% f)Saturday-10%

Saturd
ay Monday
Monda
10%
Friday y Tuesday
20% 30% Wednes
day

Thursd Tuesda
ay y
10% Wedne 10%
sday
20%
On the basis of the survey its easily seems that Monday is very busiest day i.e. 30% ,Tuesday is
10%,Wednesday is 20%,Thursday is 10%,Friday is 20%,Saturday is 10%.

62
Advertisement
Which type of advertisement you are doing?
a) Newspaper-25% b) Internet-20% c) Magazines-25%
d) Television-30%

newspa
televisi
per
on
25% newsp
30% aper

interne
magazi t
nes 20%
25%
On the basis of the survey its easily seems that company gives more importance to television
i.e. 30%, newspaper is 25%, internet is 20%, magazines are 25%.

Profitability
Would you say that your business is profitable?
a) yes-40% b) no-60%

yes
40%
ye
no s
60%

On the basis of survey its seems that 40% persons says their business is going in profit and 60%
said no profits are there.

63
TOTAL SALES
YEAR TOTAL SALE (in crore)
2012-13 153.13
2013-14 176.05
2014-15 196.47
2015-16 220.17
2016-17 245.26

TOTAL SALE (in crore)

300

250

200

150 TOTAL SALE (in crore)

100

50

0
2012-13 2013-14 2014-15 2015-16 2016-17

On the basis of the survey it easily seems that total sales of Thomson press is continuously
increasing as in 2012-13 it is 153.13 crores,in 2013-14 sale is 176.06,in 2014-15 it is196.47
crores ,in 2015-16 is 220.17 crores, in 2016-17 it is245.26.

64
Have you ever opted for services from EECL.?

(a) Yes - 61%

(b) No - 39%

39%

61%

Yes
No

61% of the public has Opted for JBM Auto Ltd. services.

Please specify the age group to which you belong:

Out of 20 employees 12 employees belongs to 25 to 30 age group. And 120
employees from 30 to 40 age group .

65
 2%
18% 10%

Below 25
25 to 30
30 to 40
Above 40

70%

From the above graph it is clearly shown that majority of employees belongs to 30 to 40 age
group that is 70%.

Who are the people you consulted before deciding to come to purchase it?
It shows that 500 people out of 1000 consult with their friends because they are of the same
age and they have knowledge according to their age. And only 50 people who does not ask from
anybody.

5%
20%

25%
Family members Friends

Any other, Nobody

50%

It shows that there are very little people who does not consult from anybody .otherwise most of
the consult whethet it is friends or family members or any other.

66
How would you rate the service facilities?

70%
60%
60%

50%

40%

30%
20%
20% 15%
10% 5%
0%
Disappointin Avg. Good very Good
g

Will you recommend our company to others?

Out of 1000 people 550 people recommend our company strongly,100 people says they will not
recommend our company and 100 people says they will discourage others.

Will discourage 10%

Will not recommend 10%

Yes 25%

Yes, strongly 55%

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

Majority of people says yes that they will recommend our company and less people says no.

67
7) Table showing the distribution of ECEL?

Dibutor visit to
retailer No. Percentage %

One time 5 5%
Two time 5 5%
Three times 23 23%
Four times 0 0%
Daily 67 67%

 Graph :

Percentage %

0.8
0.7
0.6
0.5
0.4 Percentage %
0.3
0.2
0.1
0
One Two Three Four Daily
time time times times

Inference:
Above table shows that 67% of the retailers say that distributors come daily, 23% say that
they come three times in a week and 5% say one time, two times in a week respectively.
This shows that the distribution level of the ECEL in twin cities is good and 94%the retailers
are satisfied by the distribution .

Table showing that design and style of ECEL PRODUCTS

68
 Very attractive 12 12%

Medium 76 76%

Unattractive 12 12%
Very un
0 0%
attractive

 Graph:

80%
70%
60%
50%
40% Series1
30%
20%
10%
0%
Very attractive Medium Unattractive Very un
attractive

Inference:
The above table shows that 76% of the retailers are said that the design and style of
products is medium. And 12% of the retailers said design is very attractive. And 12% of
retailers said that it is UN attractive. By observing the above table we can know that, the
style and design of products is not satisfied

69
Table showing retailers view to increase the sales of ECEL PRODUCTS.

Distribution services 6 4%
Trade schemes / Promotional offers 76 70%
More advertisement hoardings. 6 4%
Telecast of ads in TV media 8 5%
Change in flavor 8 5%
Other’s (packing, display boards,
16 12%
etc.,)

Graph:

80%
70%
60%
50%
40% Series1
30%
20%
10%
a d v e rt is e m e n t
D is t rib u t io n

C h a n g e in

0%
h o a rd in g s .
s e rv ic e s

f la v o r
M o re

Statistics:
From the above table we can see that 70% is for the promotional offers, the next big thing is
for the Display boards with 12%, then goes to more advertisement in TV media. With 5%.
And 5% is for change in flavor. And advertisement hoarding with 4%.

Inference:
From the above table we can say that, to increase the sales of the products, They should go
with the promotional offers to the retailers, and by giving display boards, and by telecasting
of ads on TV is the next best option and we can even go for the advertisement hoarding no
the road side is the economical option.

70
CHAPTER-6

SYNOPSIS

71
 SYNOPSIS
MARKETING MANAGEMENT
Title of project is “Marketing Management” at “Escorts Construction Equipment Ltd.”,
FARIDABAD.

SCOPE OF PROJECT
The scope of project is limited to “Escorts Construction Equipment Ltd.”. This company is a
leading company of all types of construction equipments. This has a distinction of being of
very largely business partners of other companies.

OBJECTIVE OF THIS PROJECT

 To prepare marketing management projects.
 To find the commands in marketing.
 To make the projects and linked with website.
 To analysis the marketing management strategy.
 To focus on various activities of company and consumers for betterment of products.

RESERCH METHODOLOGY
Research methodology is a way to systematically solve the research problems it may be
understand as a science of studying how to research is done scientifically. In it, study the
various steps that are generally adopted by researcher to know not the research methods /
techniques but also the methodology of marketing strategies etc.

METHODS OF DATA COLLECTION

The data so collected is primary and secondary in Nature:
* Primary * Secondary

PRIMARY SOURCES OF DATA COLLECTION

The primary data is collected by the personal interview with senior officers, colleagues in
the organization.

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 SECONDARY METHOD OF DATA COLLECTION
The secondary data is collected by the detailed study and analysis of the existing students
and staff. The data can be collected through the magazines, internet etc.

RELEVANCE OF THE STUDY

The relevance of the study can be studied from the following points:
 The benefit of the report from the researcher is that it has to get the knowledge of the
marketing and product specification.
 This study also unable the company that their products is not utilizing in unnecessary
things.
 The scope of the report was confined to the outside parties like creditors, shareholder.
Govt., etc. who want to invest their money in the company.
 The benefit of the report for company is that through this report, they can come to
know about the marketing strategy and flow position of the company.

PARAMETERS
The report is analyzed under the presumption that cash flow position of Escorts
Construction Equipment Ltd can be improved and made effective in terms of marketing.
In testing the above hypothesis, the following aspect will be considered:
 Balance sheet comparison.
 Presentation of marketing projects in terms of revised PPT & word file.

LIMITATIONS
The study, through conducted to the best of the ability, suffers from some certain
limitations. There are:
 Senior officials were rarely approachable.
 Websites were not giving comprehensive data.
 Not having face to interaction to get more information that is relevant.
 The data is secondary one and such its reliability may be questioned upon.
 Element of Biases may be there due to more dependable on secondary Data.
 The time availabilities for the study are less, and such it hinder the progress of the
study.

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CHAPTER-7

CONCLUSION

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 CONCLUSION

The Indian construction equipment industry is a key segment of the manufacturing

sector and is poised for excellent growth in the coming years, based on India’s overall
manufacturing sector and infrastructure growth. Earthmoving equipment, material handling
equipment and road construction equipment are key segments expected to contribute to
the bulk of the growth, driven by construction activity in the parent sectors.
To leverage this opportunity, Indian construction equipment manufacturers need to
focus on developing individual and pooled capabilities to develop global competitiveness
across the sector. Collaborative endeavours to provide integrated services, industry bodies
to promote the industry’s interests and working with the Government to promote
technology development are some of the key measures to be taken.
In order to enhance their market share, ECEL need to improve its product quality,
manufacturing capacity and serviceability followed by reduction in cost, increase in the
product range and finally adopt more aggressive marketing strategies. The competitive edge
lies in satisfying customers by delivering higher quality products at lower prices.

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CHAPTER-8

LIMITATIONS

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 LIMITATIONS

The study was confined to limited consumers only

The duration of the study was restricted for 8 weeks only, which is not sufficient to
study the entire consumers in the market.

The analysis can not be straight away used in decision making, as simple is very
small when compared to the total consumers in the market.

The present study deals with coca-cola-brand.

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 CHAPTER-9

SUGGESTIONS

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 SUGGESSIONS & RECOMMENDATION

GENERAL ISSUES:
 Escorts must have provisions to have meeting with dealers & potential customers
once in every six months.
 All the dealers need to be monitored by the company.
 A pick ‘n’ carry crane model which will be equivalent to ACE in terms of price need to
be introduced in market.
 Escorts have to distribute complimentary gifts on certain occasion to promote its
products.
 Escorts service team have to meet customer on time to time basis to gain customer
confidence.
 Spare parts availability should be there with all dealers.

TECHNICAL ISSUES:
 ECEL have to do something to increase the crane speed on road.
 TRX OR F-15- There were no provision for cradle if company provide differential lock
then it increase customer utility.
 Rear and front tyres should be heavy duty according to customers
 Stabilizer pressure is less in Backhoe loader.
 Customer is facing problem in valve leakage in Backhoe loader.
 At the time of loading, temperature shown by machine will be high.

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CHAPTER-10

ANNEXURE

80
 BIBLOGRAPHY

Books:
Principles of Marketing Philip Kotler

Marketing Research G.C.Berry

Marketing Management Kotler

Website:
http://www.google.com
http://www.EECL.com
http://www.yahoo.in
http://www.khoj.com
http://www.wikipedia.com

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