Professional Documents
Culture Documents
VISAKHAPATNAM-530012
Submitted By
NAME: S.SWETHA
VISAKHAPATNAM-530012
ACKNOWLEDGEMENT
I am indeed very grateful to Dr. K. S. S. RAMA RAJU, Professor and Head of the
ever willingness to share his valuable knowledge and constantly inspiring us through
suggestions.
I would like to extent my thanks to Dr. K. V.L RAJU, Principle and Professor of
project.
I am extremely grateful to my parents, faculty and friends for their full cooperation
and valuable support to complete this work. I thank everyone who has helped me directly and
(S.SWETHA)
DECLARATION
I, S.SWETHA do hereby solemnly declare that this project report entitled A Study
On “ AN EMPIRICAL STUDY ON BUSINESS FACTORS INFLUENCING SALES
PERFORMANCE’’ with reference to (BHARAT HEAVY ELECTRICALS LTD) ,
VISAKHAPATNAM, Submitted by me is a bonafide work done by me one and is not
submitted to any other university or published any time before.
This project work is in partial fullfillment of the requirement for the award of Degree
of MASTER OF BUSINESS ADMINISTRATION.
DATE:
INDEX
CHAPTER-1
INTRODUCTION OF BHEL
CHAPTER-2
INTRODUCTION OF MARKETING
MARKETING MIX
ABOUT 3 C’S
PRODUCT MIX
DIVERSIFIED PRODUCTS
TYPES PRODUCTION SYSTEM
BUSINESS FACTORS INFLUENCING SALES PERFORMANCE
PRODUCTS OF BHEL
CUSTOMERS OF BHEL
COMPETITORS OF BHEL
DEFINITION OF ENTREPRENEURSHIP
UMBRELLA MARKETING
CONCLUSION
CHAPTER-1
INTRODUCTION
Bharat Heavy Electricals Limited (BHEL), owned by the Government of India, is a
power plant equipment manufacturer and operates as engineering and
manufacturing company based in New Delhi, India. Established in 1964, BHEL is
India's largest engineering and manufacturing company of its kind.
The company has been earning profits continuously since 1971-72 and paying
dividends uninterruptedly since 1976-77.
BHEL was established in 1964. Heavy Electricals (India) Limited was merged with
BHEL in 1974. In 1982, it entered into power equipment, to reduce its dependence
on the power sector. It developed the capability to produce a variety of electrical,
electronic and mechanical equipments for all sectors, including transmission,
transportation, oil and gas and other allied industries. In 1991, it was converted into a
public limited company. By the end of 1996, the company had handed over 100
Electric Locomotives to Indian Railway and installed 250 Hydro-sets across India.
• BHEL is engaged in the design, engineering, manufacturing, construction, testing,
commissioning and servicing of a wide range of products, systems and services for
the core sectors of the economy, viz. power, transmission, industry, transportation,
renewable energy, oil & gas and defense.
• It has a network of 17 manufacturing units, 2 repair units, 4 regional offices, 8
service centre’s, 8 overseas offices, 15 regional centre’s, 7 joint ventures, and
infrastructure allowing it to execute more than 150 projects at sites across India and
abroad.
• The company has established the capability to deliver 20,000 MW p.a. of power
equipment to address the growing demand for power generation equipment.
• BHEL has retained its market leadership position during 2013-14 with 72% market
share in the Power Sector.
• An improved focus on project execution enabled BHEL record its highest ever
commissioning/synchronization of 13,452 MW of power plants in domestic and
international markets in 2013-14, marking a 30% increase over 2012-13.
• The company has added more than 1, 24,000 MW to the country's installed power
generating capacity so far.
It also has been exporting its power and industry segment products and services for
over 40 years. BHEL's global references are spread across over 76 countries across
all the six continents of the world.
The cumulative overseas installed capacity of BHEL manufactured power plants
exceeds 9,000 MW across 21 countries including Malaysia, Oman, Iraq, UAE,
Bhutan, Egypt and New Zealand. Their physical exports range from turnkey projects
to after sales services.
Vision:
BHEL having the following departments which plays a crucial role to complete a job
Modernization & Captive Investment
Engineering department
Projects Management
Material Management department
Marketing department
Planning and Technology department
Industrial Engineering department
Production department
Quality Control department
Welding Technology department
Electronic & Instrumentation department
Works Engineering department
Erection & Commissioning department
Research and Development department
Outsourcing department
Sub contracting machining department
Finance department
Corporate Planning department
Transportation department
Commercial department
Human Resources department
MANUFACTURING:
Rolling: Rolling sector comes under shell shop and deals with shell preparation, cone
preparation, plates planning etc,. There are different rolling mills for various plate
thickness.
Cold rolling: 60mm thickness
Hot rolling:170mm thickness
EDGE PREPARATION:
Welding edge preparation up to 18,000mm long X,4000mm wide upto 50mm thick
plasma cutting machines for cutting stainless steel plates.
PRESS SHOP:
Hydraulic pressure up to maximum capacity of 1600 ton are used for pressing dished
ends, petals of storages spheres and various other parts.
Maximum diameter = 5000mm
Maximum thickness that can be handled in single stroke = 80mm
Maximum thickness that can be handled in stages =120mm
HEAT TREATMENT:
An annealed furnance of size 5030mm an 36580 internal length is available which
can attain a temperature of 1100 degrees centigrade, with a capacity of 120mt.
There is another large heat treatment furnace of size 7400mm by 7250mm cross
section and 17000mm internal length is available. The maximum capacity of change
is 200 tonnes and the furnace can attain a max temperature of 800 degrees
centigrade. The fuel used is LPG\HSD.
Opportunities:
The power sector reforms are expected to pick up in the near future in India,
which would directly benefit BHEL.
Increase in defence budget will increase the top line for the company.
The business of modernization and renovations of power plants is expected
to grow in India.
The disinvestment plans of the government would bring in new resources
and experience into the company.
Joint Venture with Siemens in the name of Power plant Performance
Improvement Ltd. (PPIL) is a major strength for the company. This tie-up will
be beneficial as there is a lot of scope for business. During FY00 the PPIL
received orders worth Rs. 320 crores.
Threats:
The global trend of consolidation has already resulted in a fall in turnover of
the company and this will prove to be a major threat in the years to come as
well
Unsatisfactory financial performances.
DEFINITION:
ACCORDING TO AMERICAN MARKETING ASSOCIATION DEFINES MARKETING
AS “ An organisation function and set of processess for creating, communicating and
delivering value to the customers and for managing customer relationship in ways
that are beneficial to the organisation and its stakeholders.”
Importance of Marketing
Marketing management has gained importance to meet increasing competition and
the need for improved methods of distribution to reduce cost and to increase profits.
Marketing management today is the most important function in a commercial and
business enterprise.
The following are the other factors showing importance of the marketing
management:
(i) Introduction of new products in the market.
(vi) Rise in per capita income and demand for more goods by the consumers.
Marketing concepts:
Business enterprises are conducting their marketing activities under the following
five marketing concepts.
Product concept
Production concept
Selling concept
Marketing concept
Societal concept
Production concept
Production concept is the oldest concept under which the businessmen produce
goods thinking customers are interested only in low priced, extensively and easily
available goods. Finishing and the interest of customers are not important for the
manufacturers. They focus only on large scale production and try to make it available
on large scale. They try to achieve high production efficiency and creating wide
distribution coverage. This concept can be adopted under the following situations.
Product concept
Consumers favour those products that offer the most quality, performance and
features is the basis of product concept. They believe that consumers are willing to
pay higher cost for the goods or services which has extra quality. Companies which
concentrate on product concept is focused on product improvement. They
constantly improve the product quality and features to satisfy and attract the
customers. Too much focus on product may go off the track and fail. For example,
a biscuit manufacturer produced a new brand of biscuits with good colour ,
ingredients and packing etc., without taking much importance in consumer tastes
and preferences. This may fail in the market if the biscuit does not taste good to the
ultimate consumer.
Selling concept
In selling concept, producers believe that the aggressive persuasion and selling is
the essence of their business success. They think without such aggressive
methods they cannot sell or exist in the market. They are focused on finding ways
and means to sell their products. They believe that consumer themselves will not
buy enough of the enterprises products or service by themselves. Hence they do a
considerable promotional efforts to sell their product through advertisements and
other means. Sales agents of electrical equipments, insurance agents, soft
drink/health drink companies and fund raisers for social or religious causes comes
under this category. That is why we are getting lots of calls from insurance agents,
even though insurance is a subject matter of solicitation. In short, selling concepts
assumes that consumers on their own will not buy enough of enterprises products,
unless the enterprise undertakes aggressive sales and promotional efforts.
Marketing concept
Under marketing concept the task of marketing begins with finding what the
consumer want and produce a product which will meet the consumer requirement
and provides maximum satisfaction. “Customer is the King” concept emerged from
this point of view. In the process of evolution many organizations changed their way
of thinking to match the marketing concept. Under this concept producers
considers the needs and wants of consumers as the guiding spirit and deliver such
goods which can satisfy the consumer needs more efficiently and effectively than the
competitors. Marketing concept is consumer oriented and look forward to achieve
long term profits by making a network of satisfied consumers. When an organization
practice the marketing concept, all their activities such as research and
development, distribution, quality control, finance, manufacturing, selling etc., are
focused to satisfy the consumer needs and wants.
Societal concept
With the growing awareness of the social responsibility of the business, attempts
made successfully to turn the business organizations socially responsible.
Environmental deterioration, excessive exploitation of resources and growing
consumer movements have necessitated the recognition and relevance of marketing
based on socially responsible. Societal concept is the extension of marketing
concept to cover the society in addition to the consumers. Under the societal
concept the business organization must take into account the needs and wants of
the consumers and deliver the goods and services efficiently so as to balance the
consumers satisfaction as well as the society’s wellbeing.
The Marketing Department plays a vital role in promoting the business and mission
of an organization. It serves as the face of your company, coordinating and
producing all materials representing the business. It is the Marketing Department's
job to reach out to prospects, customers, investors and/or the community, while
creating an overarching image that represents your company in a positive light.
Depending on your company, the duties of the Marketing Department may include
one or more of the following:
Defining and managing your brand. This involves defining who you are, what you
stand for, what you say about yourself, what you do and how your company acts.
This, in turn, defines the experience you want your customers and partners to have
when they interact with you.
MARKETING MIX
Marketing Mix is one of the most fundamental concepts in marketing management.
For attracting consumers and for sales promotion, every manufacturer has to
concentrate on four basic elements/components. These are: product, pricing,
distributive channels (place) and sales promotion techniques. A fair combination of
these marketing elements is called Marketing Mix. It is the blending of four inputs (4
Ps) which form the core of marketing system. This marketing mix is marketing
manager’s tool for achieving marketing objectives/targets. He has to use the four
elements of marketing mix in a rational manner to achieve his marketing objectives
in terms of volume of sales and consumer support. Marketing mix is the combination
of four basic elements/ingredients under one head. Product itself is the most
important element of marketing mix. Price, place and promotion are the other
supporting elements. Marketing mix indicates an appropriate combination of four Ps
for achieving marketing objectives.
Product :
A product is seen as an item that satisfies what a consumer needs or wants. It is a
tangible good or an intangible service. Intangible products are service based like
the tourism industry, the hotel industry and the financial industry, in other words to
explain, can feel it but can’t touch it. Tangible products are those thing that can touch
or physical existence.
Product-mix involves planning, developing and producing the right types of products
and services to be marketed by the company. It deals with the product range,
durability and other qualities and other features. In short, product planning and
development involves decisions like quality of the product, size of the product,
design of the product, volume of the production, packaging, warranties and after-
sales service. And also, they have to decide which ‘market segment’ they are aiming
at age, income and geographical location.
Place :
Refer to providing the product at a place which is convenient for consumers to
access. Various strategies such as intensive distribution, selective distribution,
exclusive distribution and franchising can be used by the marketer to complement
the other aspects of the marketing mix. It includes activities that are necessary to
transfer ownership of goods to customers and to make available goods at the right
time and place at which the products should be displayed and made available to the
customers. It is to make products available in the right place at the right time in the
right quantities.
Promotion:
Promotion is communicating with the public in an attempt to influence them toward
buying your products or services. Promotion comprises elements such as
advertising, personal selling and sales promotion. Advertising is a tool which the
marketing manager uses to communicate a message to consumers through
newspapers, magazines, television. Personal selling is another means of
communicating to consumers, and consists of direct person to person interaction
between salesman and customers. Sales promotion includes all the methods of
communicating with the consumers except advertising and personal selling. It
includes free samples, premium on sale, contests, displays, shows and exhibitions.
Price:
The price is the amount that the customer willing to pay for the product. The price is
very important as it determines the company’s profit and hence, survival. Adjusting
the price has a profound impact on the marketing strategy, and depending on
the price elasticity of the product, often it will affect the demand and sales as well.
The marketer should set a price that the customer willing to pay and the suitable
price that can satisfy the customer. When setting a price, the marketer must be
aware of the customer perceived value for the product. Manager should think about
certain question like: what is the value of the product or service to the buyer, are
there established price points for products or services in this area, how will your price
compare with your competitors. And also, the price must be high enough to cover
costs and make a profit but low enough to attract customers.
1)Competitors
2)Customer
3) Company
Competitors: To be successful, you need to know your market and especially your
competitors. You want to learn how they operate, what marketing tactics they use,
who their partners are, what financial position they are, who their employees and
customers are. You can learn for your competitors' mistakes, model what works for
them, discover from them new market opportunities.
Company: You first need to know your company very well: define or learn the vision
and the mission. The location. The logo. The organization and its culture. Finally the
core product and value. A company needs to carefully evaluate both the short term
and long term strategies to beat competition and have a sustainable competitive
advantage.
PRODUCT MIX
DEFINITION:
The Product Mix also called as Product Assortment, refers to the complete range
of products that is offered for sale by the company. In other words, the number
of product lines that a company has for its customers is called as product mix.
The product mix has the following dimensions
Breadth, Length, Depth, and Consistency.
DEFENSE AREA :
Indian corporation Bharat Heavy Electricals Limited (BHEL), one of the
country’s largest power and transmission equipment manufacturers, has
outlined an intention to invest in further expanding its capabilities in defence
and aerospace.
Atul Sobti, the chairman and managing director of the state-owned company,
said at its annual meeting on 22 September that it has created an internal
business group to identify opportunities in the defence sector as part of efforts
to diversify.
The company is already established as a Tier 2 supplier in India’s defence
sector. Mainly contracted by Tier 1 Indian companies, BHEL supplies
equipment including gun mounts, platform management systems for naval
vessels, integrated bridge systems, turret castings for tanks, training
equipment, and heat exchangers for military aircraft including India’s Tejas
Light Combat Aircraft.
HEAT EXCHANGERS
A heat exchanger is a device used to transfer heat between two or more fluids
. Heat exchangers are used in both cooling and heating process. Compact
heat exchanger can be characterized by its high ‘area density’ this means that
is has a high ratio of heat transfer surface to heat exchanger volume. So
Compact heat exchange is characterized by high heat transfer surface-area to
volume ratios and high heat transfer coefficients compared to other exchanger
types. A heat exchanger having a surface area density greater than about 700
m2/m3 for a gas is quite arbitrarily referred to as a compact heat exchanger.
The heat transfer surface area is increased by fins to increase the surface
area per unit volume and there are many variations available.
AUXILIARY BOILER:
An auxiliary boiler which draws high-pressure superheated steam from the
vessel's propulsion system to generate low pressure saturated steam. This
secondary steam is then used to power auxiliary shipboard engines driving
winches or pumps, or to meet any steam requirement that does not require
superheating, such as boiler feed water and fresh water evaporators.
First, one type of mixer will be manufactured completely and then the second type
will be manufactured. They are manufactured on the basis of demand. Depending on
demand, the batch production can produce the number of units required in one
batch.
MASS PRODUCTION:
One of the best examples of mass production is the manufacturing process adopted
by Ford. Mass production is also known as flow production or assembly line
production. It is one of the most common types of products used in the automobile
industry and is also used in industries where continuous production is required.
LEAN PRODUCTION:
Lean production focuses on eliminating waste in processes (i.e. the waste of work in
progress and finished good inventories). Lean production is about expanding
capacity by reducing costs and shortening cycle times between order and ship date.
Lean is about understanding what is important to the customer. Lean production is
not about eliminating people
The factors affecting the sales of a company’s products can be principally divided
into two groups:
1. Internal factors
2. External Factors
These are the factors which essentially originate within the company and are, hence,
in the company’s sphere of influence to control. These can also be termed as the
company’s ‘response to market changes’. The growth is company’s sales volume is
directly proportionate to the positive control the company is able to exercise over
these factors. These internal factors affecting sales of a product include:
1) Company’s product
The largest single critical factor determining the company’s sales growth is the
product itself. If your product is satisfying the needs of the consumers at reasonable
prices, it will sell. The company needs to be mindful of maintaining its quality and
adding or modifying the functions and utilities according to the changing technology
and varying tastes and preferences of the consumers.
The marketing strategy of the company with regards to its product plays a prominent
role in affecting the sales. Marketing strategy involves selection of correct target
market; brand positioning; correct pricing and choice of suitable distribution
channels. This can make a huge impact on the sales of a product.
3) Marketing Personnel of the company
The qualifications and mindset of the company’s marketing force is very important in
winning over more customers. Coming up with creative marketing strategies,
promotion ideas, backing up these ideas with sound market research and desire to
keep oneself acquainted and updated with recent market trends along with
professional qualifications – these all factors go a long way in achieving higher sales
volume.
Technological upgradation is one more facet that a company has to take into
account while striving to achieve higher sales growth. Investments into newer,
smarter technology and automation of business processes like electronic payment
facilities, easier and automated order booking, tracking facilities for shipments in
transit, electronic redressal of grievances can generate a favourable market base
and increase sales.
5) COST
Any manufacturer or seller has to adhere to the demands of the laws and statues of
the country where he sells his products. The specific pronouncements of laws
regarding the legality of the product, minimum pricing requirements, taxes and
advertising restrictions affect the sales of a product in that particular country. These
requirements dictate the market presence of that product.
The market position of the competitors’ products determines the sales of the
manufacturer’s product in a market. If the competitor has a very strong brand
controlling a large market share, its presence can be quite intimidating, affecting the
sales of the rivals’ products negatively and vice-versa.
Multilayer Vessels
Hydrocracker Reactors
Tank Wagons
Trays
Fin Tubes
Digestors & Paper Industry
Evaporation Plants
COMBUSTION SYSTEM
Industrial Boilers
Fired Heaters
Deaerators
Feed Water Heaters
Steam Condensers
Primary Reformers
Waste Heat Recovery Steam Generators
Process Waste Heat Boilers
Cryogenics
Others
LIST OF PRODUCTS
CUSTOMERS OF BHEL:
COMPETITORS OF BHEL:
DEFINITION OF ENTREPRENEURSHIP:
An entrepreneur is an individual who creates a new business, bearing most of
the risks and enjoying most of the rewards. The entrepreneur is commonly
seen as an innovator, a source of new ideas, goods, services, and
business/or procedures.
Entrepreneurs play a key role in any economy. These are the people who
have the skills and initiative necessary to anticipate current and future needs
and bring good new ideas to market. Entrepreneurs who prove to be
successful in taking on the risks of a startup are rewarded with profits, fame
and continued growth opportunities. Those who fail, suffer losses and become
less prevalent in the markets.
UMBRELLA MARKETING:
Umbrella brands are brand names that are utilized by a range of different but
related products. Sometimes referred to as family branding. • An umbrella
branding strategy, is a marketing practice that involves marketing many
related products under a single brand name.
EXAMPLES:
AMUL, NIVEA
CONCLUSION:
I am concluding this topic , that i have learnt about the company BHEL and
how it is going and they are producing customised product . And about it
products, customers and competitors. Marketing mix can give information
about which product should be produce, where should be placed and to fix the
price for the product. And product mix can give complete information about
range of products and about my topic BUSINESS FACTORS INFLUENCING
SALES PERFORMANCE .
Factors are very important to the company. BHEL is jobshop production.