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BASF Construction Chemicals Division, wholly owned by the BASF group operates across india, Nepal and Bhutan. The current study focusses on the B2B sales and the study has been conducted in Bangalore and Mysore which are tire 1 and tire 2 cities. The research work included survey and in-depth interviews with the dealers. The questionnaire was used to record the response by dealers.
BASF Construction Chemicals Division, wholly owned by the BASF group operates across india, Nepal and Bhutan. The current study focusses on the B2B sales and the study has been conducted in Bangalore and Mysore which are tire 1 and tire 2 cities. The research work included survey and in-depth interviews with the dealers. The questionnaire was used to record the response by dealers.
BASF Construction Chemicals Division, wholly owned by the BASF group operates across india, Nepal and Bhutan. The current study focusses on the B2B sales and the study has been conducted in Bangalore and Mysore which are tire 1 and tire 2 cities. The research work included survey and in-depth interviews with the dealers. The questionnaire was used to record the response by dealers.
Report by Ajay SA (PGDM No. 13126) Work carried at
BASF,The Chemical Company Submitted in partial fulfilment of the requirement of Summer Internship Programme
Under the Supervision Mr. JaswanthSobhana Sales Manager, BASF, Construction Chemicals Division, Bangalore
EXECUTIVE SUMMARY Project Title: A Market Study on B2B Sales of BASF Supervision: Mr JaswanthSobhana Name of the Student: Ajay SA PGDM No: 13126 This project aims at identifying the market condition and market study for concrete admixtures, so that company can identify the strategy to repair B2B sales. BASF Construction Chemicals Division, wholly owned by the BASF group operates across India, Nepal and Bhutan. Our market segmented structure means that you can rely on the proximity of a local company with the backing of a global group. Regional offices in four metro cities - Mumbai, Delhi, Kolkata, Bangalore, headed by Regional Managers
The current study focusses on the B2B Sales and the study has been conducted in Bangalore and Mysore which are tire 1 & tire 2 cities. The research work included survey and in-depth interviews with the dealers. The questionnaire was used to record the response by dealers. The project, which was blend of market research was quite a learning and satisfying experience The thesis describes the above mentioned work in detail.
Name of the student Supervisor Ajay SA (13126) Mr JaswanthSobhana SDMIMD BASF, Bangalore
ACKNOWLEDGEMENT
This summer internship project is just not merely doing the project, but it is also to get the first-hand experience of the industry. It is rightly said that no one is as good as all of us. This statement underlines the significance of the contributions of people in order to make any effort a success. This endeavour of market research could not have met its end without the assistance and wishes of many individuals who made this effort possible. I am thankful to our institute SDMIMD, Mysore for providing us an opportunity and encouragement to undergo project training in BASF company. I would like to take this opportunity to express my gratitude to my corporate guide Mr.JaswanthSobhana, Sales Manager, BASF, who provided me the opportunity to execute the project which not only was important for the organisation but also allowed me to have practical insights of the corporate world and improved my perspective. I would like to thank my faculty guide Dr.NilanjanSengupta for being there always to support whenever I needed it. This enabled me to make this project a blend of academics and practice. At last, I want to appreciate the incessant support of my friends and relatives who helped in seeking a number of appointments within the industry and made the data collection possible.
Ajay SA 13126
Contents ORGANIZATION CERTIFICATE .....................................................................Error! Bookmark not defined. Executive Summary .............................................................................................................................................. II Acknowledgement ................................................................................................................................................ III COMPANY INTRODUCTION .......................................................................................................................... 1 Introduction to the Project topic ..................................................................................................................... 2 Organizational Context .................................................................................................................................... 2 Objectives of the research ................................................................................................................................ 2 Product Definition ................................................................................................................................................ 3 Research Purpose ................................................................................................................................................. 3 Research Users ...................................................................................................................................................... 3 Research Design .................................................................................................................................................... 3 Research Boundary .............................................................................................................................................. 4 Pilot Study ............................................................................................................................................................. 4 Field Work / Data Collection ............................................................................................................................... 5 Qualitative Research ........................................................................................................................................ 5 1. Quantitative Research ................................................................................................................................. 5 2. Population Selection..................................................................................................................................... 5 3. Research Methodology ................................................................................................................................ 6 4. Type of research ........................................................................................................................................... 6 Exploratory Research ....................................................................................................................................... 6 Descriptive Research ........................................................................................................................................ 7 Sample Plan ........................................................................................................................................................... 7 Information Requirement Planning .................................................................................................................... 7 Data Analysis and Graphical Presentation......................................................................................................... 8 Dealers Analysis .................................................................................................................................................... 9 Competitors Analysis ......................................................................................................................................... 10 Results and Discussions ...................................................................................................................................... 12 SWOT Analysis ................................................................................................................................................... 12 Important Findings............................................................................................................................................. 13 Recommendations ............................................................................................................................................... 13 CONCLUSION ................................................................................................................................................... 14 SIP Learnings ...................................................................................................................................................... 15 Market Research Questionnaire used ................................................................................................................... 16
SDMIMD, Mysore 1
COMPANY INTRODUCTION
Established as Master Builders in 1909 -100 years pedigree Inventors metallic aggregate dry shake hardener, 1909 Inventors of precision non-shrink grout, 1934 Developed the world's first epoxy grout, 1954 First Superplasticiser based on Melamine 1966 Invented DELVO, the hydration control admixture, 1989 Patented the most versatile APS resin system for repairs that sets at -25 o C to +45 o C, 1993 Invented PCE based Hyper Plasticizers Glenium in Japan, 1986 First Self compacting Concrete (SCC) in Japan, 1989 First Concrete Produced in Space with NASA, 1994 Zero Energy System for precast concrete production, 2001 SureTEC- slump retention technology for ready mix concrete, 2005 GLENIUM 8008 - Admixture for Ultra-High Strength Concrete (>120 MPa) , 2007
Introduction to the Project topic BASF proposed to do a market survey on B2B sales on the products which are going to be produced by BASF Company. Towards this end BASF decided to commission a market research project to be undertaken by SDMIMD students as a summer internship projects. The objective was to understand the market and the demand for its products. Organizational Context The organization wants to explore the possibility of sales in B2B market. Since BASF has a good distribution channel throughdealers for its products all over the country.
A detailed study of the market was done across India but I was assigned with tier 1 & 2 cities like Bangalore and Mysore.
Objectives of the research
The overall objective Is to study the market for B2B sales in India and the major concern is with Tier 1 & 2 cities. This has been divided into the following sub-objectives: 1. Price 2. Brands and competitors 3. Preference in buying. 4. Industrial market research
The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself Peter Drucker Kotler on Marketing Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Market Research - Definition: The process of gathering, analysing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face. (http://www.entrepreneur.com) Marketing research is a systematic problem analysis, model building and fact finding for the purpose of improved decision-making and control in the marketing of goods and services. Philip Kotler Industrial market Research - The importance of industrial market research cannot be over- stated because it defines the specific target markets and products that will produce increased sales and higher profit margins. More specifically, industrial market research defines the companies that are most like your best customers and most likely to need what you sell in the marketplace. PRODUCT DEFINITION
Improving concrete, Repairing concrete, Protecting concrete RESEARCH PURPOSE
The purpose of the study was to explore the Sales in B2B market. The study also needs to analyse the consumer satisfaction about BASF Products. RESEARCH USERS
The research analysis will be used by the top management. This analysis will aid them to do further detailed study and to take certain strategic decisions.
RESEARCH DESIGN
The survey initially begin internally in BASF, collecting data of internal report on the domestic market place, information on distribution, regional buying pattern and any complaints from consulted person in BASF and the representatives of BASF in Bangalore and Mysore region. After the guidance from the BASF management we submitted a Questionnaire designed by me, after proper scrutiny and sanction of the Questionnaire I started with Survey in the places assigned for me. As mentioned above I had to conduct the survey across the city of Bangalore and Mysore for a sample size of 20- 25.
Research Questions
1. To understand the buying behaviour of the consumers of product. 2. What is the potentiality of the market and feasibility of capturing the market. 3. To what extent brand awareness of the BASFhelp the company to sell products in the market? 4. What are the major factors/features that influence purchases? 5. Which brands are preferred by dealers and in different market? 6. What is the level of satisfaction of dealers? RESEARCH BOUNDARY
1. Research was conducted across many parts of India wherein I was assigned with tier 1& 2 cities like Bangalore and Mysore. 2. Target group was dealers / Wholesalers, Builders.
PILOT STUDY
A pilot study was conducted in Mysore city to understand the market here and get the in depth analysis and to know how the people will respond and what kind of Questions to be asked and what are Dealers and builders Expectation.
FIELD WORK / DATA COLLECTION
Since this is a descriptive type of research, the hypothesis is tentative and speculative in nature. So survey will be done with the help of the questionnaire where we consider equivalence, measurement and sampling. Qualitative Research
The Purpose of this is to provide BASF with the detailed qualitative information like peoples opinions, attitudes and intentions. In-depth interview was used to explore and understand the attitudes of the potential customers towards the BASF products and subsequent qualitative research was used to measure how widespread these attitudes are.
The Qualitative phase will probe the following: 1. Observations Open Ended Questions, Information by observing people and places at a research site. 2. In-depth Interviews. 1. QUANTITATIVE RESEARCH
Interview is structured with close-ended Questions in questionnaire. Collecting data such as ratings, frequencies for statistical analysis The Quantitative Phase will probe the following: 1. Estimate price sensitivity and purchase likelihood. 2. Identify features and benefits that drive purchase likelihood. 3. Assess how target consumers want to design and purchase the product.
2. POPULATION SELECTION
Study was done using the true representation of population who are be into the construction field, builders, dealers of the company etc. Survey was also conducted with the Wholesale Dealers who supply Chemicals and related materials to the shops and users to get the better picture and understand the market. Questionnaire was used to get the in depth analysis of the market for Chemical products and get the detailed picture of it. For the ease of Research, every city was divided into four Parts where i can get the responses from the customers and where the majority of these will be situated. 3. RESEARCH METHODOLOGY
The survey was started internally in BASF, collecting data of internal report on the domestic market place, information on distribution, regional buying pattern. Collected the data on the requirements of the research and this was very helpful and is indicative of the likely domestic market place and indicate strengths and weakness that will help in segmentation. An external search through my own channels and collection of secondary data also took place, so that helped to obtain and analyse existing market.
4. TYPE OF RESEARCH
Exploratory Research
Exploratory research is generally used to clarify thoughts and opinions about the research problem to provide insights on how to do conclusive research. The results of the exploratory study can give valuable inputs for the second study. It helps in developing and refining the plan for the research. During the first ten days of the research exploration was carried out.During this phase unstructured in-depth interviews were conducted with some builders and dealers within the aforesaid industries so as to appreciate the significance and magnitude of the market. After this phase questionnaires were developed.
Descriptive Research
The survey was conducted using the questionnaires. Various scales and parameters were included in the questionnaire to draw the value expectations of the buyers. The questionnaires were in tune with the objectives of the research study.
SAMPLE PLAN
Break up of Sample Plan: Builders in Bangalore and Mysore(Combined) (Organized and Unorganized) 10 Dealers/ Wholesalers in Bangalore and Mysore (Combined) 10
INFORMATION REQUIREMENT PLANNING
Source of Information Information Required Scaling Approach Builders
Purchase Behaviors Frequency of Purchase Price Preferred Brand Awareness Largely Nominal or Ordinal Manufacturer Distributors Problems Facing Additional Features
Retailers & Wholesalers Dealers
Brands Available & Price of each brand. Frequency of Purchase of each brand. Additional Features Largely Nominal or Ordinal
DATA ANALYSIS AND GRAPHICAL PRESENTATION
Bangalore: Bangalore is the capital city of the Indian state of Karnataka. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is India's third most populous city and fifth- most populous urban agglomeration. Bangalore is having total population of 8.426 Million People which is spread over 741 km
Survey Conducted: As per the total survey conducted in Bangalore city in specific locations it is found that around many builders and contractors use chemicals while constructing.
Major Market Leaders (Bangalore and Mysore):
BASF FORSEC PEDILITE SIKA
Preference of Brands by DEALERS & BUILDERS (Bangalore and Mysore) N Sum Mean Price 25 62 2.48 Quality 25 77 3.08 Ease of Availability 25 70 2.8 Packaging 25 66 2.64 Size Availability 25 71 2.84
1 Least Important, 2- Neutral, 3- Important, 4 Very Important The values are interpreted as follows,
Lower the mean no. Least Important Character Higher the mean no. Most and Very Important Character
Here from the table we can observe that Price has been given less importance and Quality has been pressurised a lot which means consumers are ready to pay but at the same time the quality of the product should also be at the best but they still do prefer for the medium pricing.
DEALERS ANALYSIS
Does Builders/dealers seek your suggestion as to the brand they can buy? Dealers 10 Builders 10 Both 20
Major factors taken into consideration for stocking products 1 High, 2 Medium, 3 Low N Sum Mean Customer Demand 23 23 1.00 Profit Margin 23 33 1.43 Advertisement 23 45 1.96 Availability 23 23 1.00 Incentives 23 38 1.65 Brand Awareness 23 38 1.65 Packaging 23 30 1.30 Performance 23 23 1.00 Credit Period 23 35 1.52
The values are interpreted as, Higher the mean no. Less preference has been given to such strategies Lower the mean no. High preference has to be given to such strategies Here the data obtained were analysed by using Mean method. Respondents were asked to rank major size and shapes which are most preferred and fast moving on a scale 1 to 3.
COMPETITORS ANALYSIS
22 78 Yes No For any business, there is always a set of players who control the market. Any firm which wants to enter into a business must understand those players to make plans accordingly. In Chemical construction market too there are a number of well-established and experienced players.
BASF
FORSOC
PEDILITE
SIKA
RESULTS AND DISCUSSIONS
The research has resulted in the following outcomes which will help the organization in not only understanding the market but also in designing the strategy for B2B sales of BASF. SWOT ANALYSIS
External Environment Opportunities Potential to become market leader by increasing brand awareness of BASF products. Very huge chemical market Threats Local and experienced players in the market Well-known brands which are available at low cost. Internal Environment Strengths Business Experience Brand value Financial Strength World Class Production Commitment on high quality products. Market leader Human Capital Strong distribution network.
IMPORTANT FINDINGS
Price Respondents are satisfied the price of the current products. To gain initial foothold in the market it is recommended to launch a product with 2-5% discount compared to the competitors prices to gain fast response of the price sensitive customers. Market Response With approx. average 50% of the customers responding in yes and not sure to a new supplier, it is the best time to take advantage of the optimism among the customers. Brand BASF needs to take advantage of its brand value by focusing on this market. This market promise huge scope and premium pricing for the brands.
RECOMMENDATIONS
Since BASF is having strong Distribution network it can either use the same distribution channel if it thinks it is feasible to start manufacturing the patches. If the company does the reverse engineering of the leading market leaders product and try to maintain the same quality or if it wishes it can invest on R&D and try develop new variety or try improvise the quality of the product then it can capture the market easily Promotional strategies like distribution of free samples to the users has to be done so that they will get an awareness about the brand and also they will test the products Consumers are willing to try new brands if the quality of the Product are good and price remains almost the same which they are paying as of now. Company also has to distribute tools kit freely at the initial stage and should also think of launching the Bonding gum since it is also very essential while the process of repair takes place and majority use same Brands bonding gum because that fixes firmly. Dealers wishes they get more Profit margin and medium increase in credit period might help them so that they can push the product to the consumers and also promote the product.
CONCLUSION
The quality, price and quantity are the major attributes governing the buying behaviour of the Chemical products. Dealers sell all type of brands and so even BASF has to influence the builders and dealers in buying the BASF products. As described in the earlier stage of the report how potential is the markets of Bangalore and Mysore cities, I think it is right time for the BASF to go with brand awareness and promotional strategies. Since BASF has financial, operational and marketing capabilities to create a mark in this business, it can positively enter and ensure success. The report presents the response of builders and dealers on various parameters. This will help the organisation to have pragmatic view of the market. The study has revealed the value expectation of the customers in the tube and tyre repair market. It is recommended that the firm should target to enter the market as a follower and gain experience and then expand its operations to become a leader. At last, the report makes an attempt to open new avenues for the organisation. It is expected that taken decisions in this regard will go a long way to bolster the operations of BASF to enable it to become more prosperous and admired brand.
SIP LEARNINGS
Summer Internship Program is a very viable way through which corporate structure and life can be felt in a span of two months. Being working as a Marketing intern at BASF, not just it helped me in broadening the horizon for the works to be carried out in the marketing department of an organisation but also helped in a significant way to understand various prospects of market and current market scenario. While working on my project work, I came across many things and all that served as a great deal of learning. SIP also serves as a place where we can apply all the concepts learnt through classroom lectures and the practical aspects related with the same. It paves the way to learn to know, manage and deliver responsibilities and accountabilities in an efficient way. While doing the survey, whats in it for me? Because until and unless theres no value creation no one is interested in anything. So at the end of the day, one has to sell himself to become productive for any organisation.
MARKET RESEARCH QUESTIONNAIRE USED
QUESTIONNAIRE FOR DEALERS & BUILDERS
Distributor Name
Product Distributor of
Contact Information Name
Designation
Telephone no
How long have you been a (company) dealer?
How much of your profit is derived from (company) products? 0-25% 25%-50% 50% & Above
Which of the following (company) product do you fully support at this time?
Compared to (market leader), how does (your product) offer advantages in selling situations? Strong advantage Slight advantage About the same Slight disadvantage Strong disadvantage
Compared to (market leader), how does (your product) offer advantages in profitability? Strong Advantage Slight Advantage About the same Slight disadvantage Strong disadvantage
Which product line do you see as offering a stronger competitive position to (company) dealers? Pedilite Fosroc Sika BASF
Which of the following best describes the influence you feel you have with (company) senior management? A lot of influence Some influence Very little influence No influence
How do you rate (company) on the following Pedilite Fosrac Sika BASF
Which of the following administrative areas would you say presents the greatest opportunity improvement? (Choose any two) Order processing Shipping Billing and credit service Inventory tracking