This action might not be possible to undo. Are you sure you want to continue?
Study On Marketing Of Service In IT Industry
PREPARED FOR AND PRESENTED TO
PATNI COMPUTER SERVICES
UNDER THE GUIDANCE OF
COMPANY SUPERVISOR NAME COLLEGE MENTOR NAME
Mr. Vishal Verma
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF POST GRADUATE DIPLOMA IN MANAGEMENT
MR. ROSHAN PRASAD KARN
IEM ± MANAGEMENT COLLEGE ANWARI BARABANKI (2009- 2011)
I, Mr.Roshan Prasad Karn here by, declare that the CIT report entitled Study On Marketing Of Service In IT Industry. , has been done by me under the supervision of Mr.Randhir Kumar Asst. Branch manger of PCS, Lucknow and under the able guidance of Ms. Vishal Verma, Faculty, I.E.M Management College, and it has not been submitted earlier to any university or any other institution.
(ROSHAN PRASAD KARN)
PLACE: LUCKNOW DATE:
M Management College for her constant guidance during the project. Service Department. faculty and my mentor for the project.E. Manager. Asst.. (ROSHAN PRASAD KARN) . cooperation and support during my project work. Lastly. Service Department. I am extremely indebted to Mr. I. I have absolutely no words to express my feelings of gratitude to the staff members of marketing executives for their full cooperation and valuable suggestions in the completion of my project work. Branch Manager. Lucknow for giving permission to undertake the project work in his organization. Patni Computer Services. Randhir Kumar. It is a great privilege to me to express my sincere thanks to Mr. Patni Computer Services for his help.ACKNOWLEDGEMENTS I wish to express my gratefulness to Mr Vishal Verma.
Table Of Content Description Chapter-1 Chapter-2 Chapter-3 Chapter-4 Chapter-5 Chapter-6 Chapter-7 Chapter-8 Bibliography Introduction Industrial Profile Company Profile Project Profile Observation and Findings Suggestions Conclusion Page No. .
´. .INTRODUCTION ³STUDY ON MARKETING OF SERVICE IN IT INDUSTRY.
. once a 100 metres Olympic final has been run. A service tends to be an experience that is consumed at the point where it is purchased. and then return the next day and have a poor experience.e. For example. material) since you can touch it and own it. It is largely intangible (i. physical presence as does a product. A person could go to a café one day and have excellent service.e.from the point where it is consumed. For example. A product is tangible (i. So often marketers talk about the nature of a service as: Inseparable . returning to the same garage time and time again for a service on your car might see different levels of customer satisfaction. Intangible . not a service).What Is Service? A service is the action of doing something for someone or something.in that once it has occurred it cannot be repeated in exactly the same way. Variability.e. For example. not material). motor insurance may have a certificate. For example. and even then it will be staged in a different place with many different finalists. Perishable . and from the provider of the service. you cannot take a live theatre performance home to consume it (a DVD of the same performance would be a product. there will be not other for 4 more years. and cannot be owned since is quickly perishes. it is intangible.and cannot have a real. or speediness of work. but the financial service itself cannot be touched i.since the human involvement of service provision means that no two services will be completely identical.
It's more difficult to compare the quality of similar services 4. The service may be based on the reputation of a single person 3. Physical evidence. Service Marketing has been relatively gaining ground in the overall spectrum of educational marketing as developed economies move farther away from industrial importance to service oriented economies. There are several major differences. an engineer may service your air-conditioning. Services Marketing Services marketing is marketing based on relationship and value. The buyer purchases are intangible 2. For example.Right of ownership . and the general appearance of the employees themselves. there are three additional "P's" consisting of People. .is not taken to the service. since you merely experience it. Place. and do not take ownership of it. Promotion. and Process.Service marketing also includes the servicewomen referring to but not limited to the aesthetic appearance of the business from the outside. Price. the inside. Marketing a service-base business is different from marketing a goods-base business. including: 1. the engineer or his equipment. but you do not own the service. It may be used to market a service or a product. The buyer cannot return the service The major difference in the education of services marketing versus regular marketing is that instead of the traditional "4 P's." Product. You cannot sell it on once it has been consumed.
e. and the accesses it has to a range of geographically dispersed markets that are what makes up an organization's competitive position i. The Arthur D Little (ADL) Strategic Condition Matrix offers a different perspective on strategy formulation.' Of course not only industries could be considered here but also segments. Microsoft Windows being the dominant global operating system. product and place. Often this is associate with some form of monopoly position or customer lock-in e.g. 2. Competitive position is driven by the sectors or segments in which a Strategic Business Unit (SBU) operates.DIFFERENT STRATEGIES OF SERVICE MKT. y .This is a particularly extraordinary position. Industry maturity is very similar to the Product Life Cycle (PLC) and could almost be renamed an 'industry life cycle. Strong . Dominant . ADL has two main dimensions .Here companies have a lot of freedom since position in an industry is comparatively powerful e.competitive position and industry maturity. Apple's iPod products.g. Now let's consider options in more detail. It is a combination of the two aforementioned dimensions that helps us to use ADL for marketing decision-making. Competitive position has five main categories: y 1. The product or service which it markets.
Here product strengths and geographical advantages come into play. 4. According to ADL.Here companies may face erosion by stronger competitors that have a favourable. Weak . there are six generic categories of strategy that could be employed by individual SBU's: y y y y y y Market strategies. 5. Of course there are opportunities to change and improve.Companies with a favourable position tend to have competitive strengths in segments of a fragmented market place. Technology strategies. It is difficult for them to compete since they do not have a sustainable competitive advantage. . Tenable . This well known marketing tool was first published in the Harvard Business Review (1957) in an article called 'Strategies for Diversification'. Operations strategies. and therefore to take an organization to a more favourable. Favourable . Retrenchment strategies. For example they might use a Gap Analysis. It is used by marketers who have objectives for growth.As the term suggests companies in this undesirable space are in an unenviable position. strong or competitive position. Managers then need to decide upon the best strategic direction for the business. y y From here the strategic position of an organisation can be established. No single global player controls all segments. Product strategies. Management and systems strategies. strong or even dominant position.y 3.
Here we develop and innovate new product offerings to replace existing ones. the product is not altered and we do not seek any new customers. or marketing it in a new region.Ansoff's Product/Market Matrix y y Market Penetration Here we market our existing products to our existing customers. are examples of market development. the food industry). but it is marketed to a new audience. Market Development Here we market our existing product range in a new market. promoting the product. Unrelated diversification is where we have no previous industry nor market experience. Related diversification means that we remain in a market or industry with which we are familiar. and so on. repositioning the brand. There are two types of diversification. For example. a soup manufacturer diversifies into cake manufacture (i. Diversification This is where we market completely new products to new customers. This often happens with the auto markets where existing models are updated or replaced and then marketed to existing customers. This means that the product remains the same. This means increasing our revenue by. namely related and unrelated diversification. For example a soup manufacturer invests in the rail business.e. Such products are then marketed to our existing customers. However. y y Product Development This is a new product to be marketed to our existing customers. Exporting the product. for example. .
the Boston Matrix is a well known tool for the marketing manager. Then you place other pieces of wood in the same location . You would do this for every product in the range. You would look at each individual product in your range (or portfolio) and place it onto the matrix.the shorter ones you reject and the longer ones you cut down. It has two controlling aspect namely relative market share (meaning relative to your competition) and market growth. Originally benchmarking was used in manufacturing operations where one process could be compared and contrasted with another. Think about it in basic terms . Xerox is commonly cited as the original proponent. competitive advantages. performance and strategies (Prasnikar et al 2005) The Boston Matrix Like Ansoff's matrix. A benchmark is a measurement tool.Benchmarking Benchmarking relies upon a comparison between the activities of your own organization and those of another. You can then plot the products of your rivals to give relative market share. It was developed by the large US consulting group and is an approach to product portfolio planning. . You keep one end of the wood level/flush with the end of the bench and cut a notch in the bench itself with your chisel at the other end. More recently the definition has broadened to include all business processes.you measure a piece of wood along your bench.
Stars tend to generate high amounts of income. These are the canine version of 'real turkeys!'. Get rid of these products. So keep them in your portfolio of products for the time being. They consume resources and generate little in return. Dogs. Each cell has its own name as follows. The funds generated by your Cash Cows is used to turn problem children into Stars. Look for some kind of balance within your portfolio. Problem Children. These are products with a high share of a slow growth market. Try not to have any Dogs. Cash Cows. These are products with a low share of a low growth market. which may eventually become Cash . They absorb most money as you attempt to increase market share. Cash Cows. Keep and build your stars. they tend to absorb it. They do not generate cash for the company. Cash Cows generate more more than is invested in them. Problem Children and Stars need to be kept in a kind of equilibrium. These are products that are in high growth markets with a relatively high share of that market.This is simplistic in many ways and the matrix has some understandable limitations that will be considered later. These are products with a low share of a high growth market. Stars.
Competitive Advantage (1980). packing of books/videos/games by an online retailer. and this means that you will need a larger contribution from the successful products to compensate for the failures. Goods are moved around the organisation. They culminate in the total value delivered by an organisation. retailers or the final consumer. The value chain is a systematic approach to examining the development of competitive advantage.' Also so value curve. This is where goods are manufactured or assembled. Here goods are received from a company's suppliers. It was created by M. Primary Activities. and they need to be sent along the supply chain to wholesalers. or the final tune for a new car's engine. Porter in his book. Marketing and Sales. The chain consists of a series of activities that create and build value. Value Chain Analysis. Operations. Inbound Logistics. Some of the Problem Children will become Dogs. The organisation is split into 'primary activities' and 'support activities. They are stored until they are needed on the production/assembly line. E. The 'margin' depicted in the diagram is the same as added value.Cows. The goods are now finished. Outbound Logistics. . Individual operations could include room service in an hotel.
and rewards and remuneration. lean manufacturing.In true customer orientated fashion. They will be responsible for outsourcing (components or operations that would normally be done in-house are done by other organisations). at this stage the organisation prepares the offering to meet the needs of targeted customers. Technology is an important source of competitive advantage. This activity includes and is driven by corporate or strategic planning. Employees are an expensive and vital resource. Procurement. and other mechanisms for planning and control such as the accounting department. This could include production technology. and ePurchasing (using IT and web-based technologies to achieve procurement aims). after-sales service. Support Activities. It includes the Management Information System (MIS). The aim is to secure the lowest possible price for purchases of the highest possible quality. training and so on. . Human Resource Management (HRM). training and development. Companies need to innovate to reduce costs and to protect and sustain competitive advantage. The mission and objectives of the organisation would be driving force behind the HRM strategy. services and materials. Service. Technology Development. This function is responsible for all purchasing of goods. complaints handling. and many other technological developments. Internet marketing activities. An organisation would manage recruitment and s election. Firm Infrastructure. Customer Relationship Management (CRM). This area focuses strongly upon marketing communications and the promotions mix. This includes all areas of service such as installation.
INDUSTRIAL PROFILE .
500 professionals service clients across diverse industries. for over two decades. And they got the projects! Mr. naming one room as µUS¶ and the other as µIndia¶. 1956. Over 17. a group of MIT students typed out the data into a Flexowriter machine that spat out papered out court documents for LexisNexis. an agreement with US based computer manufacturer Data General to supply computer systems through satellite links helped create Patni Computer Systems in 1978. Eventually. ³The best way to do it is where the labor is cheaper´. Patni¶s dream of exploiting India as a high quality and low cost delivery base became a reality when in 1986 India¶s first ODC (Offshore Delivery Centre) for Data General was set up. they wrote instructions to convert data from paper documents to computers. he became aware of the benefits of outsourcing during a project involving advance level typesetting. which advised companies and government agencies on technology issues. In one room. Patni first came to the US in 1964 on an MIT fellowship and in the early 1970s. While there. The company was incorporated in India on 10 February 1978 under the Indian Companies Act.COMPANY PROFILE Patni Computer Systems Ltd. (Patni) (BSE: 532517. History India. Narendra Patni and his wife Poonam started this experiment in their house. Europe and Asia-Pacific. he said and so was born the first outsourcing companies in India. Around the same time Naren Patni had the idea of software development opportunities from Data General to be delivered from India. Patni came up with the idea of importing multi user server systems and selling computer time. he was appointed the president of Forrester Consulting Group. movie summaries for American Film Institute and catalogs for American Mathematical Society. This was the start as Patni successfully initiated and developed the outsourcing business model ± which flourished into one . NYSE: PTI) is one of the leading global providers of Information Technology services and business solutions. The Beginning The name of the company was initially Data Conversion Inc in 1972. By late 1970s the company had garnered enough foreign exchange to take the next step forward. from 30 international offices across the Americas. NSE: PATNI. Each week boxes of paper tapes were flown to US for processing through readers and conversion into magnetic tapes that was fed into computers. and 23 Global Delivery Centers in strategic locations across the world. In another room. Patni have serviced more than 400 FORTUNE 1000 companies. This was Patni's first step into the realm of software services. Narendra K.
The firm recommended massive restructuring of the organization into strategic business units based on market segments and technological expertise supported by horizontal groups. It was followed by a surge of expansion in different parts of United States as well as in various European and Asian countries including Japan. Patni collected various accreditations like ISO 9001:2000. They have acquired companies like The Reference Inc. Taratec. Narendra Patni Global Expansion The company¶s global expansion began when they set up an office in London UK in 1993. enterprise application solutions. It was then that Naren Patni roped in consulting group McKinsey to recommend how to scale up their business. .of the largest industries worldwide. the company¶s revenues have grown to 656 million USD till 2009. During the early 1990s the company was too focused on its hardware market and couldn¶t take advantage of the growth of software opportunities. now Patni has 28 offices worldwide. connecting the world in ways that was unimaginable some time ago. Along with offices pan-India. Patni has added various services to their offerings as well as practices like engineering services. This expansion was not just geographical. ZAiQ Technologies. From an 80 crore company in 1996. ebusiness solutions. Across the years. CMM Level 5 and P-CMM Level 3 certifications and integrated Six Sigma techniques. Logan Orviss and very recently CHCS. BPO services and so on. Cymbal Corporation.
Later the same year. Navi Mumbai Patni¶s first foray into a µknowledge park¶ was when Patni Knowledge Park opened its gates in September 2006 in Airoli near Mumbai. Cymbal's acquisition allowed Patni to enter $60 billion IT services market in the telecom vertical which was previously not available to Patni on their business landscape. . California based Cymbal Corporation for a sum of US$78 mn. and the largest Platinum rated building outside the United States. This makes the Patni Knowledge Centre the second largest Platinum rated building in the world. India. Patni had all the trappings to attract private investments ± critical mass. The state-ofthe-art environment-friendly facility complements the organization¶s green initiatives around efficient utilization and conservation of energy. India. This acquisition also allowed Patni to spread its Non-GE Business. Airoli. water and natural resources. India and New York Stock Exchange. He decided to invite Merrill Lynch to act as advisor for their Initial Public Offering (IPO). proven track record and stable customer base. In December 2005. Patni launched its first Green IT-BPO knowledge centre in Noida. Naren Patni took a very important decision. According to their analysis. The board of directors includes chairman Narendra Patni Patni Knowledge Park Patni Knowledge Park. India. Patni underwent an IPO on February 2004 which was oversubscribed 22 times. By a combination of coincidences General Atlantic. and added a development center in Hyderabad. The centre is spread over 5 acres (20. In the same year. Patni listed its ADRs on the New York Stock Exchange (NYSE) under the ticker PTI. a model that would be adopted later by most competitors. a global leader in private equity investment.000 m2) and has a seating capacity of over 3500. National Stock Exchange (NSE). In 2008. was looking for a suitable Indian software player to invest in and invested US $ 100 million in September 2002. it was awarded the LEED Platinum (Leadership in Energy and Environmental Design) rating for its Green IT-BPO Centre inaugurated earlier this year in Noida.IPO Soon after implementing McKinsey¶s restructuring. They are currently listed on Bombay Stock Exchange (BSE). US. Patni acquired Fremont.
The Patni Logo The Patni logo is a circle formed by individual spiraling shapes. represents the holistic solutions that Patni creates. Customer Centricity Ensuring customer delight. The individual spirals are moving together in synchronicity . The name Patni is presented in lowercase letters to appear more approachable. trust and ethical conduct. Always . Honesty & Integrity Driving all actions based on openness. Using the full name Patni gives the company a stronger sense of identity while moving away from generic initials that have become indistinguishable from the rest of the industry. energetic part of the company while the grey of the Patni word represents its dependability and trustworthiness Company Vision ³To be a trusted partner.moving forward to achieve a common goal. The entire image is skewed forward to communicate a multi-dimensional. Just as the individual spirals come together to form a circle. benchmarked with the best globally.The circle. creating innovative options to excel. The red color in the icon represents the progressive. Innovation Creating innovative solutions for success. so the diverse elements of Patni's global resources work together to deliver a complete solution to clients.´ Company Value Passion Zeal to exceed expectations by challenging the status quo. dynamic perspective. contemporary and innovative. Operational Excellence Striving for excellence with an operating discipline. powered by passionate minds. a symbol of completeness.
Service Offerings o o o o o o o o o Application Development Verification and Validation Process Consulting BI and DW Business Process Management Web Technology Solutions Open Source Software Services RFID Embedded Systems o Application Management o IT Consulting o Enterprise Application Solutions o Enterprise Integration o IT Governance o Enterprise Mobility Solutions o CIS and BPO o Infrastructure Management o Engineering Services INDUSTRY THEY SERVE Insurance & Healthcare .
00 2.79 575.00 2.00 3.80 27.32 159.49 410.97 0.94 0.05 3.00 1.01 945.68 0.60 278.02 120.204.71 506.93 492.27 0.24 181.13 614.00 0.65 96.33 0.560.83 25.20 1.18 0.212.28 209.45 0.00 2.66 0.80 0.04 0.17 0.38 96.06 0.00 3.46 0.522.62 570.00 0.11 Dec '06 12 mths 27.35 334.75 0.62 987.32 539.03 0.80 1.95 211.165.72 247.18 .06 217.81 247.00 489.93 804. Cr.042.08 3.51 196.00 281.00 559.97 419.38 2.93 495.86 0.42 61.82 357.62 0.00 636.387.02 0.00 2.67 0.95 2.209.92 0.83 11.267.180.91 0.56 477.45 204.30 279.521.06 2.00 2.25 175.40 0.88 0.Balance Sheet of Patni Computer Systems in Rs.75 2.63 36.25 526.00 1.522.13 2.62 25. Dec '05 12 mths Sources Of Funds Dec '06 12 mths Dec '07 12 mths Dec '08 12 mths Dec '09 12 mths Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 27.652.93 0.42 0.95 Dec '08 12 mths 25.07 264.50 50.23 196.36 607.558.00 339.19 2.00 675.98 204.35 5.18 0.00 2.60 0.08 148.76 317.95 0.12 3.05 682.78 486.00 836.25 116.57 Dec '07 12 mths 25.00 538.495.00 111. Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) 477.013.67 739.94 3.26 Dec '05 12 mths 27.58 104.66 843.87 656.66 2.00 443.084.61 184.00 3.530.00 225.045.94 2.168.78 131.56 27.57 131.41 1.00 0.58 157.66 27.82 205.19 0.07 1.045.204.28 1.57 0.05 0.00 534.11 141.00 416.18 0.58 851.18 0.18 2. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA.99 348.560.583.38 0.00 2.07 0.58 239.00 2.82 135.75 0.203.00 3.00 2.14 2.69 Dec '09 12 mths Application Of Funds Gross Block Less: Accum.56 0.00 252.212.20 133.26 268.
This study will help in know. On the project I did survey in different sites of Patni Lucknow on the basis of questionnaire I had prepared. Patni Computer System was the company where I have done this research to find out the strategies they are adopting to promote there services to there targeted customers. . As service is intangible and perishable so it is difficult to promote it but with several marketing strategies it could be done . what kind of strategy Patni and its competitors is making to compete its competitors. And to find out the strategies adopted by different firm for marketing there services. The project was all survey based and the result which came out is all based on the factual information provided by the customers which had filled my questionnaire form. After collecting information I analyzed all data under the process of research methodology and then drawn a result from that. Does this research will focus on that strategies which are adopted by IT Industry to be specific in the cut throat competition.PROJECT PROFILE The project was primarily aimed at studying the marketing of services with special reference to Information Technology Industry.
OBSERVATIONS AND FINDINGS Life & Annuities | Property & Casualty / General Insurance | Healthcare Banking & Financial Services Asset Management & Securities | Banking | Benefits Administration Manufacturing Consumer Products | Hi-Tech Engineering | Industrial | Products Food & Beverages | Paper & Pulp | Pharmaceuticals Telecom OSS/BSS across | Wireframe | Cable | NextGen Services | VoIP | 3G | MVNO Product Engineering Services Automation & Control | Automotive | Consumer Electronics | Medical Devices | Mobile & Wireless | Office Automation | Storage. Networks & Computing ISVs Core Software Product Engineering | Product Lifecycle Management Sustenance | Engineering & Maintenance Support | Implementation Support Services Life Sciences Regulatory Compliance/Quality Management | Enterprise IT | Drug Safety & Clinical Solutions | LIMS & Lab Informatics Retail B2C | Merchandising Systems | Legacy Maintenance | IT Infrastructure Management | Web Enabling & Legacy Integration | CRM & DWH | B2B | RFID | Legacy Enhancements | Kiosks & Handhelds | Financial & ERP Systems | Supply Chain & Warehouse Logistics & Transportation Goods (Freight) Transportation | Passenger Transportation | Logistics Energy & Utilities Field Services | Customer Information System/CRM | Metering Solutions | Work Force Management | Outage Management | Billing & Tariff Management | Data Acquisition | Usage Measurement | Account Management | Metering System Solutions Media & Entertainment .