SUMMER PROJECT REPORT ON

 

Strategic Marketing Intelligence

In partial Fulfillment of Award of
Post Graduate Diploma In Business Management

By
VIKRAM KUMAR MANDAL

Under the guidance of

Prof. AVK Murthy

 

 
 
 
PGDM (BM)
Entrepreneurship and Management Processes International
New Delhi – 74
July 2010
 

 
  

DECLARATION  

 I   VIKRAM   KUMAR   MANDAL   hereby   declare   that   the   project  

entitled  “STRATEGIC  MARKETING  INTELLIGENCE”  is  my  original  
work,  done  by  me.    

Now  it  is  an  asset  of  EMPI  Business  School,  New  Delhi.  All  the  
rights   for   using   this   project   report   lie   with   the   company.    
Unauthorized   copying,   hiring,   broadcasting,   or   rental   of   this  
project   without   permission   from   the   organization   will   be  
considered  illegal.  

VIKRAM KUMAR MANDAL  

 
  

                                                                   ACKNOWLEDGEMENT  

Presenting   a   project   of   this   is   an   arduous   task,   demanding   a   lot  

of   time.   I   cannot   in   full   measure   reciprocate   the   kindness  
shown   and   contribution   made   by   various   persons   in   this  
endeavor.  I  will  remember  all  of  them  with  gratitude.  

 I   am   very   grateful   to   my   mentor   Mr.   A.V.K.   MURTHY   for   his  

significant  support  extended  for  the  successfully  completion  of  
the   project   as   she   supported   me   all   through   the   project   and  
devoted  her  precious  time  for  me  

   I   am   always   beholden   to   my   God,   for   always   being   with   me  

and   showing   me   the   right   way,   my   family,   for   always   doing  
favors  to  me  and  my  friends  and  colleagues  consistently  helped  
with   encouragement,   creative   inputs   and   criticism   throughout  
the   project   work,   for   always   lifting   my   sights   to   higher   vision,  
raising   my   personality   beyond   normal   limitation   and   for  
realizing  me  my  strengths  and  potential.  

                                                                                                                           VIKRAM    KUMAR  MANDAL

 INDEX  

1. Acknowledgement             3  

2. Executive  Summary             5  

3. Company  Profile             6  

4. Vision                                                                                                                                                                                7  

5. Corporate  social  responsibility                                                                                        8  

6. Products  offered                                                                                                                                          9  

7. Introduction                                                                                                                                                       11    

8. Product  under  study                                                                                                                         16  

9.  Objective  of  Study                                           18  

10.  Research  Methodology             18  

11.  Questionnaire             20  

12.  Findings  and  suggestions             31  

13.  Bibliography             32  

14.  Annexure             33  

           

 
 
 Executive summary

Ingersoll Rand Company is a multinational company and is providing industrial technologies in

as Ingersoll Rand (India) ltd. It is providing air compressors for various industrial requirements
ranging from 1 Hp to 2000Hp capacity of various models

The company is a market leader in Compressors division but the volume of sales is not
satisfactory in the low capacity compressors ranging below 50 Hp, They intend to know the
reasons and have started a program called as “ customer on demand” which gives the database of
the consumer who are using an air compressor

The study and analysis of the marketing research reveals that Ingersoll Rand compressors are
facing huge competition from local manufacturers who are doing really well in low capacity
range compressors.

To improve the volume of sales the main obstacle to Ingersoll Rand Company is the cost of the
compressor and by reducing it there is a considerable increase in the volume of the sales.
 Company Profile:

Ingersoll-Rand (India) Limited is a part of the Ingersoll Rand Company, a global innovation and
solutions provider with powerful brands and leading positions within its markets. Ingersoll-Rand
(India) Limited has its presence in India since 1921. The company established its first
manufacturing plant in India in 1965 and became a public limited company in 1977.Today
Ingersoll-Rand has manufacturing facilities in Ahmadabad that is ISO 9001:2008 certified and in
Sahibabad that is ISO 9001:2000, ISO 14001:2004 & OHSAS 18001:2007 Certified. Ingersoll
Rand products are widely appreciated in the market for their superior quality and reliability.
With a strong sales presence in over 15 locations across the country and a strong national
distributor network, Ingersoll-Rand (India) Limited is a dominant player in its business of
providing solutions for the Infrastructure development, Industrial Solutions and Climate Control
markets. It is amongst the country's largest exporters of engineered goods.

With a history dating back to 1871, Ingersoll Rand and its family of brands represents a proven
history in construction and mining, industrial and commercial markets.

Through acquisitions, innovations and customer focus, today's Ingersoll Rand offers market-
leading solutions and services that enable customers to create progress through a variety of
industries and markets that touch everyday life.

Ingersoll-Rand (India) Limited is an India-based company. It is a part of the Ingersoll Rand

Company, a worldwide solutions provider. With a presence in over 15 locations across India and
a national distributor network, the Company provides solutions for the infrastructure
development, industrial solutions and climate control markets. Ingersoll-Rand (India) Limited is
an exporter of engineered goods. The Company operates in the air solutions (AS) segment,
which consists of reciprocating compressors, centrifugal compressors and system components.
Ingersoll-Rand (India) Limited has manufacturing facility in Ahmadabad, India
Vision:

Ingersoll Rand is a GLOBAL industrial enterprise with market leading brands, we are dedicating
to driving shareholder value by achieving
Dramatic Growth …. By focusing on innovative solutions for our customers
Operational Excellence ….By pursuing continuous improvement in all of our operations
Dual citizenship……By bringing together the talents, energy, enthusiasm of all Ingersoll Rand
people

Brand Values:

Integrity
Ingersoll Rand act in the highest legal and ethical standards in everything we do

Respect
Ingersoll Rand communicate and act in ways that respect and value the worth of all people,
cultures, viewpoints and backgrounds

Teamwork
Ingersoll Rand team work together and share resources to provide greater value to our customers,
employees, business partners and shareholders

Innovation
Ingersoll Rand use diverse skills, talents and ideas to develop innovative, imaginative and
creative solutions to challenges

Courage
Ingersoll Rand speak up for what is right and take measured risks so the company can thrive
Corporate Social Responsibility

Ingersoll Rand sets an example by undertaking earnest Corporate Social Responsibility

Initiatives. Ingersoll Rand machines and personnel have been actively involved in disaster
relief work in regions affected by natural calamities such as during the Gujarat Earthquake
(2001) and the Tsunami (2004). Ingersoll Rand has successfully partnered with the defense
and other government agencies in these massive operations. Ingersoll Rand machines have
come to be recognized as invaluable assets in disaster management.

Best brands from Ingersoll rand:

Club car:

As a division of Ingersoll Rand - the world leader in creating and sustaining safe, comfortable
and energy efficient environments - Club Car is the world’s largest manufacturer of electric
vehicles, and is proud to be on the forefront of environmentally responsible Zero Emission
Vehicle (ZEV) technologies

The Club Car product portfolio includes commercial utility vehicles, multi-passenger shuttle
vehicles, and rough-terrain and off-road utility vehicles

Hussmann:

Hussmann, a global manufacturer of refrigeration and food merchandising equipment, operates

as part of the Ingersoll Rand Climate Control Technologies Sector

Since 1906, Hussmann has been inspiring solutions by helping retailers preserve and display
fresh foods. Today Hussmann is a world leader in manufacturing, selling, installing and
servicing its merchandising equipment and refrigeration systems to customers throughout the
world.
Hussmann serves a wide variety of customers involved in the global cold chain. These include
supermarkets, mass merchants, warehouse clubs, convenience stores, drug stores and foodservice
establishments.

Hussmann inspires solutions in the areas of merchandising, food safety, shelf life extension,
sustainability and life cycle value. Hussmann is focused on addressing the needs of its customers,
providing solutions that provide superior value for their businesses.

SCHLAGE:

Schlage has become a market leader in home and industrial security solutions. For more than 85
years Schlage has been providing innovative security solutions for schools, hospitals, hotels,
condominiums and a host of other commercial buildings. Today, Schlage is at the forefront of
cutting-edge technology such as wireless security products, biometrics and video solutions. With
a wide range of products

THERMO KING:

Thermo King is a global manufacturer of cooling systems supplying global markets. It’s ten
plants in seven countries design and builds refrigeration and heating units for trucks, trailers, rail
cars and ocean-going containers. And air conditioning for buses, trains and urban mass transit.

TRANE:

Trane, a business of Ingersoll Rand - the world leader in creating and sustaining safe,
comfortable and energy efficient environments - improves the performance of homes and
buildings around the world
Journey of Ingersoll Rand since 1871
1871
 Simon Ingersoll’s steam-powered rock drill is patented
 Ingersoll Rock Drill Company is formed

1872
 Rand & Waring Drill & Compressor Company is formed
1879
 Rand & Waring changed to Rand Drill Company
1888
 Ingersoll Rock Drill Company merges with Sergeant Drill Company to form Ingersoll-
Sergeant Drill Company
1894
 WR Grace named president of Ingersoll-Sergeant
1896

 J. George Leyner invents the hammer drill

1902
 Type X portable compressor line is introduced by Rand
1904
 Panama Canal is started using Ingersoll-Sergeant drills
1905
 Merger of Ingersoll-Sergeant Drill Company and Rand Drill Company to form Ingersoll-
Rand Company.
1906
 William Saunders becomes first president of Ingersoll-Rand
1907

 Imperial Pneumatic Tool is acquired

1909
 A.S. Cameron Steam Pump Works is acquired
1912
 Jackhammer drill is invented (Trade name: Jackhammer)
1912
 J.G. Leyner Engineering Works Company is acquired

1913
 William Saunders becomes Ingersoll-Rand’s first Chairman
1925
 Develops first commercially successful diesel electric locomotive engine; first diesel
electric locomotive sold to Central Railroad of New Jersey
1927
 Provides jackhammer drills and air compressors for work on Mount Rushmore
1934
 First air-powered Impactool introduced
1936

 George Doubleday elected chairman

1942

 The Company is recognized for its wartime contributions with the coveted Army-Navy
“E” Award

1948

 The Quarrymaster is introduced; known as the first modern self-contained, mobile, air-
powered rock drill for large-diameter blast holes

1954
 World’s first atomic-powered submarine is equipped with Ingersoll-Rand boiler-feed
pumps and compressors
1955

 Downhole drill is introduced

1955
  Daniel C. Keefe elected chairman of the board
1959
 Robert Johnson elected chairman
1967

 William L. Wearly elected chairman

1968
 The Torrington Company manufacturer of bearings and motion control products, is
acquired

1968
 Centac air compressor is introduced
1972
 Company executive offices move from NYC to Woodcliff Lake, New Jersey
1974
 Acquires Schlage Lock Company

1977
 Builds the world’s fastest rescue drill for the South African Chamber of Mines
1980
 Thomas A. Holmes elected chairman
1982
 High speed centrifugal pump introduced

1986
 Ingersoll-Rand and Dresser Industries form Dresser-Rand
1987
 The Company re-enters China through joint venture with Xuanhua Pneumatic Machinery
Limited
1988
 Theodore H. Black becomes Chairman
1990
  The ARO Corporation is acquired

1993

 James E. Perrella elected Chairman

1995

 Acquires Clark Equipment Company, including Bobcat, Club Car and Blaw-Knox

1996

 Steelcraft, manufacturer of steel doors and frames, is acquired

1996

 Zimmerman International Corporation, manufacturer of ergonomic material handling

systems, is acquired

1997

 Acquires Newman Tonks, European producer of architectural hardware

1997

 Thermo King, manufacturer of transport refrigeration equipment, is acquired

1999

 Harrow Industries, is acquired, including Locknetics (electronic security products).

Recognition Systems (biometric security). Ives and Broadway (architectural hardware
and bath fixtures.)

2000

 Herbert L. Henkel elected chairman

 Acquires 100% ownership of Dresser-Rand
 Hussmann, manufacturer of stationary refrigeration equipment, is acquired
 Acquires Interflex, provider of time and attendance, scheduling and security systems
 Superstav, Czech Republic-based manufacturer of compact equipment, is acquired

2001
  Kryptonite Corporation manufacturing of portable security products, is acquired
2003
 Completes sale of Torrington
2004

 Completes sale of Drilling Solutions and Dresser-Rand

2005
 Acquires CISA, ITO and SuperRay
 Acquires majority interest in Shenzhen Bocom System Engineering Co. Ltd., a China-
based provider of Integrated Security Technologies and Services
 Acquires Dolphin Electromagnetic Technologies, an India-based Provider of Integrated
Security Technologies and Services
 Acquires Astrum GmbH, a Leading Developer of Personnel Scheduling and Management
Software and Services
 Acquires United States Distribution Rights for Tramac Branded Hydraulic Breakers
 Establishes a Joint Venture for the Manufacture and Distribution of Door Locks with
Taiwan Fu Hsing Industrial Co.

2006
 Celebrates 100 Years of Trading on the New York Stock Exchange
 Acquires Geith International, an Ireland-based Equipment Attachments Manufacturer
 Acquires the Global Low-Pressure Air Business of BOC Edwards
 Acquires ZEKS Compressed Air Solutions, a Leading North American Provider of
Compressed Air Treatment Technologies

2007
 Acquires Remaining Interest of Instrum Rand
 Sells its Road Development Business Unit for $1.3 Billion to AB Volvo
 Signs an agreement to purchase privately owned Officine Meccaniche Industrial srl
(OMI), a leading European provider of compressed-air treatment equipment
 Sells its Bobcat, Utility Equipment and Attachments Business Units for $4.9 Billion to
Doosan Infracore
  Announces definitive agreement to acquire Trane Inc. (formerly American Standard
Companies) in a transaction valued at approximately $10.1 billion

2008
 Completes acquisition of Trane Inc., a global leader in indoor climate control systems,
services and solutions in a transaction valued at approximately $10.1 billion

2010
 Ingersoll Rand is now valued at approximately $ 13 billion
Air Compressor:
Air compressor is a versatile device used for supplying the compressed air for special
requirements, it is used for any purpose that requires air in the reduced volume or increased
pressure

It is mostly used in the refrigerators, air conditioners, jet engines, commercial businesses,
refining industries, manufacturing industries and automotive industries. Air compressor is being
used in industries for more than 100 years.

Air compressor types:

Air compressors are available in various types, which are designed to meet different
requirements. Each of the type of air compressor may differ in cooling method, compression
stages, lubrication and power source.

Following are the three major types of air compressors

a) Reciprocating air compressor
b) Rotary air compressor
c) Centrifugal air compressor

Reciprocating air compressor:

Reciprocating air compressor makes use of piston to compress air and store it in a storage tank.
Based on the number of compression stages, reciprocating type can be a single-stage or double-
stage compressor. In single-stage, only one piston is used to compress air, whereas in double-
stage compressor, there are two pistons for air compression.

Rotary air compressor:

The rotary screw air compressors have become the most popular source of compressed air for
industrial applications. A major reason is its simple compression concept. Air enters a sealed
chamber where it is trapped between two contra- rotating rotors. As rotors intermesh, they reduce
the volume of the trapped air and deliver it compressed to the proper pressure level. This simple
compression concept with continuous contact cooling, allows the rotary screw air compressor to
operate with temperatures approximately one half that generated by a reciprocating compressor
This lower temperature enables the rotary screw to operate in a fully loaded continuous duty
cycle 24 hours per, 365 days per year, if necessary. Its ability to operate for extended periods of
time makes the rotary compressor ideal for demanding industrial applications.

Centrifugal air compressor:

Centrifugal air compressor or dynamic compressor is applicable when the demand for compress
air is high. In this air compressor, a high speed rotating impeller increases velocity of air, which
is directed towards a diffuser that converts the velocity of air into pressure. Centrifugal air
compressor requires more energy to operate than the other two air compressors.

How an air compressor works:

Air compressor consists of two major components - compressing mechanism and a power
source. The compressing mechanism can be a piston, rotating impeller or vane, whereas the
power is supplied by an electric motor or other energy sources. The compressing mechanism, as
the name suggests, helps in compressing atmospheric air by using energy from the power source.

The basic working principle of an air compressor is to compress atmospheric air, which is then
used as per requirements. In the process, atmospheric air is drawn in through an intake valve;
more and more air is pulled inside a limited space mechanically by means of piston, impeller or
vane. Since the amount of pulled atmospheric air is increased in the receiver or storage tank,
pressure is raised automatically.

In simpler terms, free or atmospheric air is compressed after reducing its volume and at the same
time, increasing its pressure. There is a pressure setting knob that can be manipulated as per the
requirement of the operator. When the pressure increases to the maximum pressure setting in the
receiver or tank, the pressure switch shuts off the intake of air in the compressor. When the
compressed air is used, the pressure level falls. As the pressure drops to a low pressure setting,
the pressure switch is turned on, thus allowing the intake of atmospheric air. Thus, the cycle
continues in an air compressor.
Objectives of Project:

 To find market share of Ingersoll Rand compressors across India in selected regions
 To know the major competitors of Ingersoll Rand across India
 To find the unexplored market for future needs to increase market share
 To collect database of potential customers
 To know the customer expectations about the compressors

Marketing Research Methodology:

Exploratory research:

Exploratory research provides insights into and comprehension of an issue or situation,

exploratory research is a type of research conducted because a problem has not been clearly
defined.

Information process and source:

Primary data: The data collected is the information that has been gathered for the research
objectives at hand and is not collected for some other purpose other than research at hand

 The data collected is by visiting the companies personally and collecting the data from
owners, managers, supervisors, and workers who are familiar with the air compressor on
which they are working
 The survey is organized all over India and in Bangalore various companies located in
industrial areas like Yeswanthpur, Peenya and kumbalgodu are covered to collect the
primary data
  Data was collected by face to face interviews and over phone
 No of companies visited 218
 The questionnaire used is included with open ended, closed ended and scaled responses

Sampling method

Area sampling: A method in which the area to be sampled is subdivided into smaller blocks
which are selected at random and then sub sampled or fully surveyed; method is used when a
complete frame of reference is not available.
 Analysis of the Questionnaire:

Q. Since how many years you are using a compressor?

 The compressors being used for more than 20 years and are not replaced
 Most of them are purchased recently from 4 years to 8 years
Q. What is the capacity of the compressor which you are using?

 As per the requirement of the Branch manager of Ingersoll Rand the max capacity of
the compressor is 20 HP and below 20 HP ranging up to 1 HP
Q. Are you satisfied with the current compressor?

 Among the respondents 78.3 % are satisfied consumers with the compressor they
are using and there is little scope for them to change the compressor
 21.7% of the respondents are not satisfied due to various reasons like after sale
service, availability of spare parts etc.
Q. Are you aware of Ingersoll Rand Air Compressor?

 Almost 83 % of the respondents are aware of Ingersoll Rand compressor

 This suggests that people are well aware of the various options available in market before
they purchase
 Approx 17% of the respondents are not aware of Ingersoll Rand compressor, so there is a
necessity to make an advertisement campaign to make people aware of the compressor
Q. How do you rate the following aspects for purchasing a compressor?

Low Medium High Not considered

Cost
Long lasting
Consistency
Certifications
After sale service
Spare parts

 Consumers rating in the aspect of “cost”

 The general perception leads to a conclusion that the cost of the compressor should be
comparatively low from the diagram 60% opting for low cost
 The consumers are not willing to pay high even there is considerable quality in the
compressor as the data is valid for compressor below 20 HP
Q. How do you rate the following aspects for purchasing a compressor?

 Customers rating in the aspect of “long lasting”

 73.3% of the respondents are opting for a compressor which works for long time , from
the data it is evident that even the compressors are being used for more than 20 years
 4.6% of the respondents are not looking for long lasting feature probably to meet short
term objectives
Q. How do you rate the following aspects for purchasing a compressor?

 Customers rating in the aspect of “Consistency”

 81% of the respondents are looking for a compressor which is consistent

 Ingersoll Rand compressors are consistent with the working condition but there should be
a tradeoff between the cost and other features
Q. How do you rate the following aspects for purchasing a compressor?
 Customers rating in the aspect of “Certifications”

 Half of the respondents interviewed are not particular about their compressor meeting all
the certifications

Q. How do you rate the following aspects for purchasing a compressor?

 Customers rating in the aspect of “After sale service”

 73.7% of the respondents are looking for feature of after sales service
 Most of the local manufactures are not good in giving after sale service
Q. How do you rate the following aspects for purchasing a compressor?

 Customers rating in the aspect of “Spare parts”

 52.5 % of the respondents are looking for availability of spare parts after purchasing the
compressor
 30% are looking for spare parts moderately
Q. What is your opinion about Ingersoll Rand air compressor?

 The general perception of Ingersoll rand company air compressor among the respondents
 55% of them are considering it as costly
 18% are considering it consistent
 17.5 % are considering it reliable
 This strongly suggests that there is a need to compromise on the aspect of cost
Findings & Suggestions

 The Ingersoll Rand company compressors are maintaining very high standards as per the
specifications of India and U.S.A standards
 The consumers are looking for local manufactures of compressors as they are cheap and
sturdy because the basic purpose of a compressor is to compress the air and it is being
met
 A compressor once purchased is used for more than 10 years depends on the
maintenance, and installation place of the compressor
 The Main competitors of Ingersoll Rand compressors are Chicago pneumatic, ELGI, MR,
Mecco and SRIRAM compressor in the category of below 50 HP
 Most of the compressors are competitors especially in the low capacity range i.e. under
50 HP
 Ingersoll Rand is a market leader in compressors with a wide range of up to 2000Hp
centrifugal compressors
 If the company is ready to compromise on the cost aspect it can have more sales like it is
doing in high capacity compressors range
Bibliography:

http://www.ingersollrand-india.com/

http://company.ingersollrand.com/Pages/default.aspx

The catalogues provided by the company

Annexure:

Questionnaire.

1. Name of the respondent:

2. Company/Industry name:

3. Personal details:
Contact No:
E mail Id :

4. Address of the company:

5. Which company air compressor you are using at present…………………

6. What is the Model No of the Air Compressor ……………..

7. What is the capacity of the compressor………………..

8. Since how many years you are using the compressor

a. Less than 5 years
b. 5 years to 10 years
c. 10 years to 15 years
d. More than 15 years

9. Are you satisfied with the current compressor

a. Yes
b. No
10. Are you aware of Ingersoll Rand Air compressor
a. Yes
b. No

11. How do you rate the following aspects for purchasing a compressor

Low Medium High Not considered

Cost
Long lasting
Consistency
Certifications
After sale service
Spare parts

12. How many hours do you use the compressor per day.

13. What is your opinion about Ingersoll Rand air compressor

a. Reliable
b. Consistent
c. Costly
d. Others, (Please specify)