A

PROJECT REPORT ON

MARKETING
ETING OF CONSTRUCTION EQUIPMENT
EQUIPMENT

AT

STRONG MACHINES PRIVATE LIMITED

SUBMITTED BY

RAHUL UJWAL DESHMUKH

UNDER THE GUIDANCE OF

PROF. VINEET NERURKAR

SUBMITTED TO

PUMBA

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF

MASTERS IN BUSINESS ADMINSTRATION ++

(MARKETING)

DEPARTMENT OF MANAGEMENT SCIENCE (PUMBA)

SAVITRIBAI PHULE PUNE UNIVERSITY

GANESHKHIND PUNE 411007

MAHARASHTRA INDIA

1
 SAVITRIBAI PHULE PUNE UNIVERSITY

CERTIFICATE

This is to certify that Rahul Ujwal Deshmukh, student of MBA++,, studying at Department of
Management Sciences (PUMBA), Savitribai Phule Pune University has successfully finished his
Ltd Pune from June 2nd, 2015 till August 8th, 2015. The
internship at Strong Machines Pvt. Ltd.,
topic for the project is Marketing Equipment . To the best of my knowledge he
Marketing Construction Equipment.
has been found Hardworking, sincere and honest throughout the internship.
We wish him every success in his future career.

Prof. Vineet Nerurkar Dr. B. V. Sangvikar

Internal Guide External Guide Head of Department

2
(COMPANY CERTIFICATE)

3
 DECLARATION

This is to declare that I, Mr. Rahul Ujwal Deshmukh, student of Master in Business
Administration (2014-2016) Department of Management Science (PUMBA), Pune, have given
the original data and information to the best of my knowledge in this project report titled
Marketing of Construction Equipment, under the guidance of Prof. Vineet Nerurkar and
that no part of this information has been used for any other assignment but for the partial
fulfillment of the requirement towards the completion of the said course.

I have prepared this project independently and I have gathered all the relevant information
personally. I have prepared this project for the year 2014-2016

I also agree in principal not to share the vital information with any other person outside the
organization and will not support the project report to any other University or Institute.

Date:

Place: Rahul Ujwal Deshmukh

4
 ACKNOWLEDGEMENT

I am really thankful towards all those people who helped me in this venture. It would not have
been possible without the kind support and help of many individuals and organizations. I would
like to extend my sincere thanks to all of them.

I am highly indebted to Mr. Ankur Kale (HOD Marketing) for Strong Machines Pvt. Ltd., for
his guidance and constant supervision as well as for providing necessary information regarding
the project and also for his support in completing the project. He was not only a mentor and
guided me with the project but he also provided help, motivation and learnings that could work
out for us in the professional and competitive environment.

I would like to express my gratitude towards members of Strong Machines Pvt. Ltd. for their
kind cooperation and encouragement which helped me in completion of this project.

I would like to thank our HOD Dr. B.V. Sangavikar and my faculty guide Prof. Vineet
Nerurkar who had always been helpful in the entire period. Discussions and deliberations with
them have enriched my knowledge to form my project in a better way.

Rahul Ujwal Deshmukh

MBA++ (Marketing)
Roll No: 14318
PUMBA

5
 TABLE OF CONTENTS

SR. CHAPTER PAGE

NO. NO.

1 Introduction: 7

Construction Equipment Market In India

Executive Summary 8

Advantage India 9

Market Overview and Trends 10

Porter Five Forces Analysis 18

Strategies Adopted 20

Growth Drivers 21

Opportunities 31

2 Strong Machines Pvt. Ltd.

Company Profile 32

Products 35

SWOT Analysis of the company 44

Customers 44

3 Business to Business Marketing 45

4 Job classification and responsibilities of a sales person 47

5 Buying behavior in B2B environment 49

6 Customer acquisition strategy by the company 51

7 Prospect List 53

8 Recommendations for the company 58

9 References 59

6
 INTRODUCTION
CONSTRUCTION EQUIPMENT MARKET IN INDIA

7
 EXECUTIVE SUMMARY

High revenues and unit sales

The Construction equipment industry's revenues are estimated to reach USD22.7 billion by 2020
from USD5.1 billion in FY12. Unit Sale of construction equipment is expected to 96,730 by
2020 from 55,946 in FY13

Rising infrastructure investments

The planning commission estimates total infrastructure spending to be about 10 % of GDP
during the 12th Five-Year Plan (2012-17), up from 7.6% during the previous plan (2007-12)

Increasing private sector involvement

Private sector is emerging as a key player across various infrastructure segments, ranging from
roads and communications to power and airports

Growth in real estate sector

The real estate market is estimated to grow to USD 180billion by2020 from USD 66.8 billion in
2011, driven by demand mainly from residential sector

Construction equipment analysis

Construction equipment forms around 7% to 8% of GDP and gives employment to more than 30
million people in the country. It also accounts for more than 60 % in total infrastructure
investment

8
 ADVANTAGE INDIA

Robust demand
Significant allocation for the infrastructure sector in the 12th Five-Year Plan, and investment
requirement of 1 trillion USD is expected to create huge demand for construction equipment

Demand for construction equipment is expected to rise to USD9.9 billion by 2015, a CAGR
of 24.1 per cent (from 2011)

Attractive opportunities
Equipment rental and leasing business in India is small relative to developed markets and
has a strong growth potential

The after-sales revenue component in India is currently low and can be increased considerably

Competitive advantages
Increasing impetus to develop infrastructure in the country is attracting the major global
players
There has been cumulative FDI inflow of USD234.7 million in earth-moving machinery
between April 2000 and December 2014

Policy support
The material handling equipment industry is de-licensed & 100 percent FDI is allowed under
direct route
The government has given approval to some financial institutions to raise money through tax-
free bonds Excise duty cuts extended till December 31, 2014
Make in India pitch to boost investments

Year 2012 2020E

Total revenues USD 5.1 billion USD 22.7 billion

Total volumes 66,421 3,30,000

9
 EVOLUTION OF THE CONSTRUCTION EQUIPMENT SECTOR IN INDIA

Before 1960

Domestic necessity for construction and mining equipment were entirely met by
imports

1964

Bharat Earthmovers Ltd, a public sector company, began domestic production of

construction equipment in India
They began manufacturing dozers, dumpers, scrapers, etc, for defence
requirements

1969 onwards

Private sector started emerging, led by Hindustan Motors Earth Moving Equipment
Division in technical collaboration with Terex, UK
Followed by L&T, Telcon and Escorts JCB

Beyond 2000

Most of the technology leaders like Case, Caterpillar, Hitachi, Ingersoll-Rand, JCB,
John Deere, Joy Mining equipment, Komatsu, Lieberr, Poclain, Terex, Volvo are
present in India as joint venture companies, or have set up their own manufacturing
facilities(or marketing companies)
Several Indian firms are entering into tie-ups for equipment rental & leasing
business, e.g., tie-up between SREI Infrastructure and BNP Paribas
This is expected to drive sales of equipment in future.

10
MAJOR SEGMENTS OF THE CONSTRUCTION EQUIPMENT INDUSTRY

Earth-
moving
equipment

Road Construction Material

building handling
equipment equipment and cranes

Concrete
equipment

11
 CONSTRUCTION EQUIPMENT SEGMENT DESCRIPTION

Earth-moving equipments
Earth-moving equipments is the largest segment of the construction
equipment sector in India; these equipments primarily find use in mining
and construction
Equipments include backhoe leaders, excavators, wheeled loaders,
dumpers/tippers, skid steer loaders

Material handling and cranes

Material handling equipments have four categories: storage and handling
equipments, engineered systems, industrial trucks, and bulk material
handling
There are 50 units in the organized sector for the manufacture of material
handling equipments and many units in the small-scale sector as well

Concrete equipments
Concrete equipments are used to mix and transport concrete
They include equipments such as concrete pumps, aggregate crushers,
transit mixers, asphalt pavers, batching plants

Road building equipments

Road building equipments are used in the various stages of road
construction
Widely used ones are excavators, diggers, loaders, scrapers, bulldozers
etc

12
 INDIAN CONSTRUCTION EQUIPMENT REVENEUS ON UPTREND

The construction equipment industrys revenues are estimated to have reached USD 5.1
billion by FY12.
Revenues increased at a CAGR of 6.6 per cent during FY07-12
FY07 and is further estimated
to rise at a CAGR of 24.8 percent on rapid infrastructure development undertaken by the
Government of India.
On the other hand, global construction equipment industry is expected to grow at a
CAGR of 7.7 per cent during 2012-16.
2012

Growth in reveneus from Construction equipment

(USD billion)
9.9
10

9 USD billion
8
8

7 6.4

6
5.1
5 4.6
4.3 4.2
3.9
3.7
4

0
FY07 FY08 FY09 FY10 FY11 FY12E FY13E FY14E FY15

13
 CONSTRUCTION
NSTRUCTION EQUIPMENT SALE ON AN UPTREND

With infrastructure investment set to go up, demand for construction equipment will rise
further.
Equipment sales are estimated
estim to expand at a CAGR of 9.7 per cent to 82,000 units
during FY06-16.

Total no.of construction equipment units sold'000

96.7
100

90

80 72.2
66.4
70
58.7 60.7
60 55.9
50
50 45.5
40.5
40

30

20

10

0
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14E FY18E

14
 EARTH MOVING IS THE LARGEST SEGMENT BASED ON REVENEUS

Based on revenues, earth moving holds the largest share in the construction equipment
industry (62.1 per cent).

In FY12, backhoe loaders comprised of 42 per cent of the earth-moving equipment sales
based on units, followed by crawlers (about 20 per cent).

Clawer excavators is expected to be the fastest growing segment, with sales to grow
eight times to 107,500 units by 2020, mainly on demand for mid-sized crawlers (20T)
from the construction segment and their versatile usage.

Backhoe loaders and crawlers excavators are expected to account for over 69 per cent of
total sales by 2020.

Construction equipment revenue breakdown by

segments FY10

8.5%
9.1%
Earth Moving
Concreting
9.4%
Road Construction
Material Processing
62.1%
10.9%
Material Handling

15
 UNIT SALES OF EQUIPMENTS

100%
12% 12%
14%

5% 3%
1%
1% 5%
1%
80%

42%
42%
41%
60%

40%

20%
27%
22%

20%
12%
9% 8%
3% 3% 3%
5% 4% 4%

0%
2012 2016E 2020E

Forklift Wheel Loaders Mobile Cranes Crawler excavator

Backhoe Loader Batching Plants Transit Mixers Others

16
NOTABLE TRENDS IN THE CONSTRUCTION EQUIPMENT IN INDUSTRY

Increasing imports from China

Chinese equipment manufacturers have a strong presence in some
segments like wheel loaders (market share: 12 per cent), dozers (market
share: 13 per cent).
Chinese equipment tend to be price competitive, thereby putting
downward pressure on prices of domestic equipment manufacturers.

Rising private sector share

The private sectors share has expanded across key infrastructure
segments, ranging from roads and communications to power and airports
Of the total planned infrastructure investments worth USD1 trillion
during the 12th FiveYear Plan, the share of private sector is estimated to
be 47 per cent, up from 25 per cent during the 10th Five-Year Plan

Rapidly growing excavator segment

The share of crawler excavators is estimated to increase to 35 per cent by
2016 from the current 23 per cent, mainly on demand for mid-sized
crawlers (20 tonnes) from the construction segment.
Demand for larger excavators (30 tonnes) used in the mining segment is
also expected to increase in the years to come.

Equipment rental
Several Indian firms are entering into tie-ups for equipment rental &
leasing business, e.g., tie-up between SREI Infrastructure and BNP
Paribas.
This is expected to drive sales of equipments in future.
The market is expected to grow at a CAGR of 15-20 per cent by 2015.

Customized equipments
There is demand for equipment's for niche applications.
The manufacturers have also started giving end to end solutions to cater
to this demand.

17
 PORTERS FIVE FORCES ANALYSIS

Threat of New
Entrants
(Low)

Bargaining
Power of Competitive Substitute
Products
customers
(High)
Rivalry(High) (Low)

Bargaining
Power of
Suppliers
(Low)

18
 Competitive Rivalry
Big firms have intense competitive rivalry, as all major world players
operate in India.
Competition is deep as companies fight with each other on the quoted
price to win a contract amid high price sensitivity.
Low switching costs from buyers increase competition.

Threat of New Entrants

Threat is low due to the capital-intensive nature of the industry
High maintenance and distribution costs are other barriers

Substitute Products
Threat is very low as there is no substitute in this sector
Same players are required even for maintenance and up-gradation of
existing machines.

Bargaining Power of Suppliers

Bargaining power of suppliers is low due to high price sensitivity and
very low switching costs for buyers.

Bargaining Power of Customers

Power is high as few construction and mining companies do majority of
bulk buying, which gives them an edge.

19
 STRATEGIES ADOPTED

Technical tie-up with foreign partners

In order to move up the value chain and become a one-stop shop,
companies form JVs with international players for technology transfer.
In 1998, L&T formed a JV with Komatsu for technical assistance.
BEML had a technical tie-up with Vosta to enter into dredging.

BEML had a technical tie-up with Vosta to enter into dredging

Companies today emphasize on mechanization to suit the needs of
changing Indian mining industry.
Oil and coal companies are demanding larger-sized mining machinery
with larger capacity so as to increase output by enhancing recovery rates.

Provision of after-sales services

Most equipment manufactured in India undergoes considerable wear and
tear; thus, maintenance of machinery becomes necessary after a period of
time.
Companies are looking forward to increase their backup of trained
technical professionals to cater to maintenance demand in addition to
focusing on human resource development, to create a motivated sales
and service force.
For eg. Providing on-site training and spare stock of consumables to
customers.

R&D
Companies are stepping up their R&D spending to manufacture
equipment without foreign assistance.
Other aspects include quality control, enhancing power-to-load ratio,
reducing operating costs and use of better materials.

20
INVESTMENTS IN INFRASTRUCTURE
INFRASTRUCTURE DRIVING THE SECTORSS GROWTH

Investment in infrastructure is the main growth driver of the construction

equipment industry.
The Planning Commission estimates total infrastructure spending to be about of
10 per cent of GDP during the 12th Five-year
Five Plan (2012-17),
17), up from 7.6 per
cent during the previous plan (2007-12).
(2007
Indias investment in infrastructure is estimated to double to about USD1 trillion
during the 12th plan (2012-17)
(2012 compared to the previous plan.

300 12th Plan

264.4

250 233.5

206

200 181.2

157.4
th
150 11 Plan

101.6 101.9
100 89.5
75.7
69.4

50

0
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Infrastructure spending during 11th and 12th Five-Year

Five Year Plan(USD billion)

21
 INFRASTRUCTURE SPENDING AS % OF GDP

10th Five year plan 5.20%

FY08 6.40%

FY09 7.20%

FY10 7.50%

FY11 7.90%

FY12 8.40%

11th Five year plan 7.60%

12th Five year plan 10%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

Infrastructure spending as % of GDP

Of total investment of USD1 trillion during the 12th Five Five-Year

Plan, over 20 per cent each is estimated to have been allocated for roads and power
sub-segments.
For FY14, the Planning Commission
Co has provided an outlay of USD6.9 billion to
develop the roads.
India has the worlds second largest road network spanning 4.7 million kilometers.
The Government intends to increase the paved road to total road ratio and build more
national highways.

22
 China submitted a five year trade and cooperation plan to India offering its
willingness to finance 30 per cent of governments USD1 trillion investment target.
Japan has also pledged USD35 billion investments over the next five years.
Recently, a delegation of US investors had announced their
willingness to invest USD250 million in Indias infrastructure in the coming period
of around 12 months.
Such massive investment in infrastructure would boost demand for construction
equipment.

356.4
400
350
300 227.8
250
200 126.8 119.4
150 86.3 84.5
100
50
0
Transport Power Others Telecom Irrigation Water
Supply

12th Five Year Plan Fund allocation to infrastructure sub

segments (USD billion)

GROWING PUBLIC
PUBLIC PRIVATE PARTNERSHIPS (PPPs)

According to the World Bank, Bank, India is second only to China in terms of the
number of Publicublic Private Partnership (PPP) projects. Encouragingly, th the
government is set to continue promoting PPP models to help achiev achieve its
investment targets.
During the 12th Five-Year
Five Plan, the Planning Commission targets to achieve 47
per
er cent of total infrastructure investments through private funding, up from 25 per
cent in the 10th Five-Year
Five Plan.
The Ministry of Roads, Transport and a Highwayss of India has plans for
constructing six-lane
lane roads worth USD5bn to develop the Golden Quadrilateral.
23
 Golden Quadrilateral has four sections - Section I is a 1 ,454km stretch of Nationa
National
Highway 2 (NH2) from Delhi to Kolkata, Section II is a 1 ,684km stre stretch from
Kolkata to Chennai, Section III is a 1 ,290km stretch from Chennai to
Mumbai and Section IV
I is a 1 ,419km stretch between Mumbai and Chennai.
Indian government has also planned to build 100 smart cities. The government has
allocated USD1
1 .2 billion for this project in its 2014-15 budget.
dget. This plan would
need more PPPs for better and fast execution.

Rising private investsments for infrastructure

development
Public Private

75%
65%
53%
47%
35%
25%

10th Plan 11th Plan 12th Plan

INCREASED MINING ACTIVITY CONTRIBUTING TO HIGHER DEMAND

Mechanization of mining operations,

oper a key ingredient behind rising production, has
led to increased demand for mining equipment.
India is worlds third largest
large coal producer with about 540 million tonnes produced
in 2012.
Coal production in India is estimated to increase at a CAGR of 4.9 per cent to 575
MT during FY07-13. 13.
Coal India Limited (CIL) is undertaking 147 projects for a total capacity of 437.1
MT per year.
For the 12th Five-Year
Year Plan,
P CIL has approved a capital expenditure of USD4.4
billion.
Total coal production in India stood at 556 MT for FY13.

24
700
630

600 556 565

526 533 540
493
500 457
431

400

300

200

100

0
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14P FY15BE

Production of coal(million tonnes)

Production of iron ore in India

I stood at 169.0 MT in FY12. India ranks 4th globally,
accounting
unting for 8 per cent of global iron ore production.
Production fell in FY13
FY1 and FY14 due to mining ban in states of Karnataka and
Goa.
oa. However, in April 2014, the Supreme Court of India lifteded the mining ban in
Goa due to which output is expected to rebound in 201415.
2014
Production of iron ore in FY14P (up to September 2013) was 68 MT.
A surge in steel production
productio in the country is expected to boost iron ore demand.
Indias crude steel capacity is estimated to rise from about 70 MT to 300 MT by
2025.
The Ministry of Mines aims
ai to reduce export duty on low grade iron ore to 15 per
cent
ent from earlier 30 per cent to enhance its export.

25
 250

200

150

213 213 219

208
100 188
169
136

50
68

0
FY07 FY08 FY09 FY10 FY11 FY12 FY13P FY14P

Producton of iron ore(million tonnes)

GROWING HOUSING AND CONSTRUCTION

CONSTRUCTION MARKET TO ADD TO DEMAND

The burgeoning real estate industry in India gives a fillip to the demand for concrete
and building construction equipment.
The residential real estate demand is driven by rising population and growing
urbanization.
Rising incomee levels leading to higher demand for luxury projects.
Growing demand for affordable housing to meet the demand from lower income
groups.
Commercial real estate demand will be driven by growth in IT/ITeS sector and
organized retail.

26
 Real estate market is expected to grow at a CAGR of 17.2 per cent over 2011 -15 to
USD126 billion.
Increasingly construction is becoming more oriented toward mechanization to
reduce project time and control costs leading to higher demand for advanced
construction equipment.

2010 Unit Sales 2014

4000 Forklifts 7500

3800 Transit mixers 9000

1500 Concrete pumps 3600

1200 Batching plants 2800

200 Tower cranes 700

CONCRETE EQUIPMENTS SALES GROWTH22% CAGR

27
 STRONG DEMAND PROSPECTS ARE ATTRACTNG GLOBAL PLAYERS

Fundamentals for the sector are set to remain strong on the back of increasing
infrastructure investments.
Almost all global technology leaders in the construction equipment sector have a
presence in India either as joint ventures or with their own manufacturing
manufacturing or marketing
companies.
Cumulative FDI inflow (since April 2000) into earth-moving
earth moving equipment increased at a
CAGR of 12.2 per cent to USD234.7 million in December 2014.
Joint ventures with global majors have provided domestic companies access to ad advanced
technology and a whole gamut of project management experience.

250 234.7

200
175
170

150 132 134 134 134

100
74 75

50

0
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

FDI inflows in earth -moving

moving equipments

28
JOINT VENTURE INDIAN PARTNER FOREIGN PARTNER
Ashok Leyland-John Deere Ashok Leyland 50% John Deere 50%

Telco Construction Equipment Tata Motors 60% Hitachi40%

FAVOURABLE POLICIES ARE SUPPORTING SECTOR GROWTH

De-licensing
The material handling equipment industry is de-licensed and Foreign Direct
Investment (FDI) of up to 100 per cent under the automatic route as well as
technology collaboration is allowed freely.

Policy initiatives related to infrastructure

Government of Indias focus on infrastructure development is the biggest driver
for the construction equipment industry
Projected infrastructure spending in the 12th plan is USD1 ,011 billion
100 smart cities and Make in India programme projects to boost investment.

Special Economic Zones (SEZs)

The government has granted sops, including a large number of SEZs, to the
capital goods industry of which construction equipment is a part; especially with
an impetus to increase exports.

Tariffs and custom duties

The government has removed tariff protection on capital goods.
Custom duties on a range of goods that are used in the manufacturing process
have also been lowered.
Custom duty exemption on road construction equipments extended to projects
awarded by MDA in the Union Budget of FY13.
Excise duty cut extended to December 31 , 2014.

29
 Encouragement of Infrastructure Debt Funds (IDFs)
The Government of India set up the India Infrastructure Finance Company
(IIFCL) to provide long-term funding for infrastructure projects.
The Government of India set up the India Infrastructure Finance Company
(IIFCL) to provide long-term funding for infrastructure projects.
IDFs income is exempt from tax.
Government cleared model tripartite pact for infra debt funds in ports.

Issue of tax-free infrastructure bonds

Infrastructure finance companies like India Infrastructure Finance Corporation
(IIFCL), National Highways Authority of India (NHAI), Housing and Urban
Development Corp (Hudco), Power Finance Corporation (PFC) and Indian
Railway Finance Corporation (IRFC) are allowed to issue tax-free bonds.
Due to this, companies raised about USD5.5 billion in FY12 and are estimated to
have raised about USD4.6 billion during FY13.
HUDCO and REC to raise around USD1 .2 billion in 2014.

30
 OPPORTUNITIES

Renting and leasing of equipment

The equipment rental and leasing business in India is smaller compared to Japan,
USA and China.
Demand for rental equipment is set to witness strong growth in the medium term
due to large investments in infrastructure.
New players can also explore opportunities in the equipment
finance business.
Higher rate of urbanization would further push growth in this sector.
It is a way to solve the liquidity crunch and boost infrastructure.

After-sales services
Revenues from after-sales service in India are 28 per cent, lower than the global
average of 1220 per cent.
After-sales market is set to expand to USD0.5 billion by 2015; players can offer
maintenance contracts with improved pricing and execution.
While these services contribute only modestly to revenues, they are counter-
cyclical and can also boost spare part sales.
Increasing demand for customized products brings in the opportunity to develop
after sale services like onsite training and assistance.

Exports
Export opportunities are abound both in developed and emerging economies.
Components and aggregates export is a USD1 billion opportunity; local suppliers
can gain a decent share of this by exporting engineering intensive and basic
material based components.
Opportunities in engineering and design off shoring and equipment exports may
arise in the future.
Most of the Indian OEMs are cost competitive and therefore have a great
opportunity in emerging markets of Asia and Africa.

31
 STRONG MACHINES PVT. LTD.

About Strong Machines Pvt. Ltd.

Incepted in the year 1987, Strong Machines Private Limited is well established
manufacturer, exporter and supplier of construction, mining & agricultural
machinery that are widely used in construction industry. Our mentor Mr. Ujwal
Deshmukh guides us with his exhaustive experience of more than 30 years in
production of construction machinery.
With more than 20 years of experience, we are capable of fulfilling the bulk
requirements of our clients as per their preferences. This is achievable because of
the sophisticated infrastructure that we have in our organization, backed by our
state-of-the-art manufacturing unit.
With our consistent dealing and ethical business practices, we are serving our
clients located across Karnataka, M.P, South region of India, Gulf Countries,
Srilanka and South African countries. With our stringent quality testing measures,
we have carved a niche for ourselves in the industry. Further, we also in the
process of attaining the internationally renowned ISO certification.

Products Portfolio
Our advanced infrastructure set up and use of modern technology has enables us
to manufacture functionally superior construction machinery as per the specific
requirement of our clients. In order to serve to the varied needs of our clients, we
offer reversible drum mixer & concrete batching plant 9,12 & 15 cu.m/hr., shh
10/7 cft (1 bag/285 ltr.), model-SMT 10/7 cft (1 bag / 285 ltr), model-SWH 10/7
cft (1 bag / 285 ltr), tower hoist, vibratory sand machine, 1 to 2 ton dumper, sand
washing machine, wheel barrow, backhoe dozer attachment, frontend loader
attachment and frontend leveler/ dozer attachment. All these machines exhibit the
following salient features:
Robust construction
Effective and efficient mixing
Simple controls of manual operations
Low maintenance
All the above mentioned machinery are manufactured using quality tested raw
material such plates, angles, channel, rollers, castings, steel plates, standard
electrical motors, diesel engines and alloy steels.

32
 State-Of-The-Art Infrastructure
We boast 2 well-established manufacturing plants, which are built across a
sprawling area of 6000 sq. feet. These are located in MIDC Industrial area,
NASHIK, Sinnar, (Malegaon) and outfitted with requisite latest machines, which
enable us to offer flaw machiery and allow us to easily achieve a production
capacity of 150 units. Some of the machines installed in our production unit are
as under:
Co2 welding machine
Profile cutting machines
Various drilling machines
Hydraulic presses
Owing to our quest for gaining technical expertise, we ascertain regular up
gradation of our manufacturing units, to keep maintain our consistent production
rate. Backed by our in-house design unit, which is equipped with latest
CAD/CAM facilities, we offer customized solutions to our clients.

Our Team of Professionals

The talented and painstaking efforts of our team have assisted in reserving a
position of great repute for ourselves in the international arena. Owing to their
expertise and vast experience in the field, we are able to fabricate qualitative
construction machinery that provides optimized performance in varied processes.
Our engineers and technocrats have complete knowledge about the processes
involved in design, fabrication and assembling of construction machinery, which
assist us in manufacturing machinery, which are in line with the dynamic
requirements of the markets. Our sales and marketing team, aids us in expanding
our businessoperation by inducting new clients and promoting our company on a
larger scale.

33
 Quality Compliance
We possess an in-house quality testing division that is dedicated to maintain and
improvise the quality standards of our construction machinery. Our team of
quality auditors and technical experts employ stringent and established testing
methodologies to ensure that our construction machinery are at par with different
indian standards.
Right from the procurement of raw material to the final dispatch, the quality is
monitored rigorously. Our machinery are tested on the following parameters:
Lab testing
Chemical analysis
Fabrication processes
We strive to achieve continual development in the quality management in order to
fulfill our long term goal of building a sustainable business.

Research and Development

We our zeal to offer innovative machinery, we undertake continuous research,
development and market analysis activities. These activities are performed by our
R&D experts, who remain in regular touch with our clients and other industrial
experts to keep themselves updated and develop solutions accordingly. They also
come up with innovative ideas to optimize our overall performance through cutting
down the cost and judicious utilization of our resource. Further, they share their
innovative ideas with other members of the team, to enhance their skill and to
impart them with knowledge regarding the up gradations, which are to be
incorporated in the existing equipments.

34
 STRONG MACHINES PVT. LTD. PRODUCTS

STRONG
MACHINES
PVT LTD

Construction Crushing Hume Pipe

Machinery Machinery Machinery

Material
Drum Type Batching
Handling Others
Mixers Plants
Equipment

35
 Construction Machinery

Drum Type Mixers:

Model - SHH 10/7 CFT(1 BAG / 285 Ltr.) Power- 6 .P., Air cooled,
Handle start, Diesel engine

Model - SMT 10/7 CFT(1 BAG / 285 Ltr.) Power- 6 H.P., Air cooled,
Handle start, Diesel engine

36
 Model - SWH 10/7 CFT(1 BAG / 285 Ltr.)
Power- 5 H.P., Air cooled, Handle start, Diesel engine

Model - SWH 5/3 CFT (1/2 BAG / 140 Ltr.)

Power- 3.5 H.P., Air cooled, Handle start, Diesel engine

37
 Model - SWH 5/3 CFT (1/2 BAG / 140 Ltr.)

Power- 2 H.P., Single phase motor

Material Handling Equipment:

Tower Hoist

To carry material from one floor to another)

38
 Slab Hoist
(To carry material from one floor to another)

Column Hoist
(To fill columns with concrete)

39
 Slab Trolley
(To carry material along the floor)

Wheel Barrow

40
 Batching Plants:

Reversible Concrete Mixer SR1050

Reversible Concrete Mixer SR800

41
 Inline Batching Plant

Crushing Machines:

Crushing Machines

42
 Hume Pipe Machinery:

Hume Pipe Machinery

43
 SWOT ANALYSIS OF THE COMPANY:

Strengths
1. Loyal customers base due to quality & service delivered consistently.
2. Loyal skilled workforce.

Weakness
1. Plant location.
2. Dependence on labors.

Threats
1. High competition.
2. High threat of new entrants.

Opportunities
1. Manufacturing larger equipments which are complex to manufacture & has good demand but
faces less competition in the market.

OUR CUSTOMERS:

Strong Machines have carefully chosen its customers based on different segments. This includes
civil contractors, government civil contractors, road contractors etc.

Harsh Constructions Pvt Ltd

ABL infrastructure Pvt Ltd
Suchintan Developers
Navyug cement products
Bharat spun pipes Pvt Ltd
Ashoka Buildcon Ltd

44
 BUSINESS TO BUSINESS (B2B) MARKETING:

Marketing Communications Mix

The marketing communications mix consists major modes of communications:

1. Advertising
Any paid form of non-personal presentation and promotion of ideas, goods or services by an
identified sponsor via print media (newspapers and magazines), broadcast media (radio and
television), network media (telephone, cable, satellite, wireless), electronic media (audiotape,
videotape, videodisk, CD ROM, web page), and display media (billboards, signs, posters).

2. Sales Promotion
A variety of short term incentives to encourage trail of a product or service including customer
promotions (such as samples, coupons and premiums) trade promotions (such as advertising and
display allowances) and business and sales force promotions (contests for sales reps).

3. Events and experiences

Company sponsored activities and programs designed to create daily or special brand related
interactions with customers, including sports, arts, entertainment and cause events as well as less
formal activities.

4. Public relations and publicity

A variety of programs directed internally to employees of the company or externally to
consumers other firms the government and media to promote or protect a companys image or its
individual product communications.

5. Direct marketing
Use of mail, telephone, e-mail, or other internet means to communicate directly with or solicit
response or dialogue from specific customers and prospects comes under direct marketing.

6. Interactive marketing
Online activities and programs designed to engage customers or prospects and directly or
indirectly raise awareness, improve image, or elicit sales of products and services.

45
7. Word-of-mouth marketing
People to people oral, written or electronic communications that relate to the merits or
experiences of purchasing or using products or services in word of mouth marketing.

8. Personal selling
Face to face interaction with one or more prospective purchasers for the purpose of marketing
presentations, answering questions and procuring orders.

B2B MARKETING CHANNELS:

0-Level 1-Level 2-Level 3-Level

Manufacturer Manufacturer Manufacturer Manufacturer

Manufacturers Manufacturers
Representative Sales Branch

Industrial
Distributors

BUSINESS BUSINESS BUSINESS BUSINESS

/CUSTOMER /CUSTOMER /CUSTOMER /CUSTOMER

46
Figure shows channels commonly used in B2B marketing. An industrial goods manufacturer can
use its sales force to sell directly to industrial customers; or it can sell to industrial distributors
who sell to industrial customers; or it can sell through manufacturers representatives or its own
sales through industrial distributors. Zero, one and two level marketing channels are quite
common. Channels normally describe a forward movement of products from source to user, but
reverse flow channels are also important to reuse products or containers (such as refillable
chemical carrying drums), to refurbish products for resale (such as circuit boards or computers),
to recycle products (such as paper) and to dispose of products and packaging.

Personal Communications Channels:

Personal communications channels let two or more persons communicate face to face or person
to audience through a phone or email. They derive their effectiveness from individualized
presentation and feedback and include direct and interactive marketing, word of mouth
marketing and personal selling.
We can draw a further distinction between advocate, expert, and social communications
channels. Advocate channels consist of company sales people contacting buyers in the target
market. Expert channels consist of independent experts making statements to target buyers.
Social channels consists of neighbors, friends, family members and associates talking to target
buyers.
A study by Burson-Marsteller and Roper Starch Worldwide found that one influential persons
word of mouth tends to affect the buying attitudes of two other people, on average. The circle of
influence however jumps to eight online. Word about good companies travels fast; word about
bad companies travels even faster. Reaching the right people is a key.

JOB CLASSIFICATION AND RESPONSIBILITIES OF SALES PERSON:

1. Locating prospective customers:

-Process of locating new customers.
-Sales people must also follow upon leads and prospects.
-They must do also determine whether these prospects are qualified (buying decisions and
payments).

2. Determining customers needs and wants:

-Gather more information on prospects and decide best way to approach.
-Determine needs and wants and make certain about capability of making purchase decisions.
47
3. Recommending a way to satisfy the customers needs and wants
-The sales person recommends a possible solution to the problem and/or need of potential
customer.
-This may entail providing information the prospect had not considered of identifying alternative
solutions that might work.
-sales person acts as a systems provider.

4. Demonstrating the capacities of the firm and its products:

-Demonstrations of capabilities of the firm and showing prospect, why the firm is the obvious
choice.
-Corporate image is important to the sales person.

5. Closing the sale:

-close, getting the prospects commitment.
-It is the most difficult task.
-Many representatives are adept at prospecting, identifying needs and making presentations but
reluctant to ask for sale.
-Most managers work with their sales forces to close the sale and help reluctant buyers make a
decision.

6. Following up and servicing the account:

-Responsibilities do not end with sale.
-Its much easier to keep existing customers than attracting new.
-Maintaining customer loyalty, generating repeat sales, getting opportunity to cross sell (sale
additional products and services to same customer) are advantages of follow up activities.

BUSINESS TO BUSINESS (B2B) SALES:

IS B2B (business to business) marketing really any different from B2C (business to customer)
marketing? Thats a fair question. After all, B2B marketers have many of the same concerns as
their B2C counter parts. Both groups must deal with product development, distribution, branding
and promotion. And the line between B2C and B2B often blurs- for example, Dell computers
markets successfully to both audiences.

But yes there are real differences between the two functions, especially when the product or
service being promoted has a high price tag that requires a long, careful sales process. Instead of

48
promoting a 1$ bar of soap that consumers can buy in a supermarket, B2B marketers may find
themselves selling industrial machinery that costs $100,00. Before a buyer will make that kind of
investment, theyre going to need to be sure that the product will actually help their organization
increase productivity, speed time to market, or reduce costs.

To summarize how B2B is different from B2C:

B2B products and services may require a more significant investment.

B2B products and services are often complex, requiring a steep learning curve.
The B2B evaluation process can be extensive, perhaps including a request for proposals
(RFP) or Request for Quotations(RFQ).
The purchasing decision often involves multiple individuals from different departments and
levels In the organization.
Each industry segment has its own jargon, thought leaders and cultural conventions that B2B
marketers must take into account.

Buying Behavior in a B2B environment

Some characteristics of organizational buying /selling behavior in detail:

For consumer brands the buyer is an individual. In B2B there are usually committees of
people in an organization and each of the members may have different attitudes towards any
brand. In addition, each party involved may have different reasons for buying or not buying a
particular brand.
Since there are more people involved in the decision making process and technical details
may have to be discussed in length, the decision making process for B2B products is usually
much longer than B2C.
Companies seek long term relationships as any experiment with a different brand will have
impacts on the entire business. Brand loyalty is therefore much higher than in consumer goods
markets.
While consumer goods usually cost little in comparison to B2B goods, the selling process
involves high costs. Not only is it required to meet the buyer numerous times, but the buyer may
ask for prototypes, samples and mock ups. Such detailed assessment serves the purpose of
eliminating the risk of buying the wrong product or service.
Customers want to be contacted just enough, not bombarded. Sales representatives should
know their products or services intimately and how their offering compares with those of their
competitors. Customers need information on exactly how a product or service will make a
difference to their offering compares with those of their competitors. Customers need
information on exactly how a product or service will make a difference to their businesses. And

49
while they may say price is one of their biggest concerns, a satisfying sales experience is
ultimately more important.
Customers insisted price and product aspects were the dominant factors that influenced their
opinion of a suppliers performance and, as a result, their purchasing decisions. Yet when
examined what actually determined how customers rated a vendors overall sales experience

B2B brands need to be differentiated:

One of the characteristics of a B2B product is that in many cases it is bought by a committee
of buyers. It is important to understand what a brand means to these buyers. Buyers are usually
well versed with costing levels and specifications. Also due to constant monitoring of the market,
these buyers would have excellent knowledge of the products too. In many cases the purchases
are specifications driven. As a result of this, it is vital that brands are clearly defined and target
the appropriate segment.
As explained above, every one product can only be associated with one brand. Because of
this, it is vital that companies find a white space for their brand, an uncontested category to
occupy space in the minds of the buyer.
In differentiating ones brand, companies can use various strategies, often referring to the
origin of the goods or the processes used to manufacture the product(s). Depending on the
companys history, the competitive landscape, occupied spaces and white spaces, there could be
one or many strategies that any company could use.
Ultimately, a strong B2B brand will reduce the perceived risk for the buyer and help sell the
brand.

50
Customer acquisition strategy by the company:

Prospecting

Needs
Identification

Proposal
Generations

Negotiaitons

Closing

51
 1. Prospecting:
The definition of sales prospecting is the process of reaching out to potential customers in hopes
of finding new business. Prospecting is often the first part of the sales process that comes before
follow-up communication, lead qualification and sales activity.

Thus here following sources were used for prospecting:

1. Internet
2. Magazines
3. News papers
4. On site visits
5. References

Generated an extensive list of prospects:

I. Pune region : 83
Sources used: Internet (Just Dial, Sulekha & others), Site visits)
II. PDCEA (Pune District Civil Engineers association) : 104
Source: PDCEA website
III. PWD (Public Works Department) : 66
Source: PWD website
IV. Nigdi region: 8
Source: Internet
V. Indiamart (aggregator website): 15
Source: www.indiamart.com
All the data was recorded in excel using google sheets and was shared with the company.
Feedbacks from the customers were recorded along with the follow up details.

52
 PROSPECT LIST

Sr. Follow
no Company Address Phone Email Id Remark up

Office No.1 & 2, Bhakti contact@mecp

spoken to Mr.Sunil
Plaza, 5th Floor, address l.in
Khandalkar
changed: off. no. 501 to purchase@me said
(9960996006)(91688
504, 5thfloor Transbay, cpl.in will
42420) then to
Survey No. 3, near contact
Purchase
Bhartiya Vidyapeeth when
(9325125903) &
school, next to state require
Pur.Vinod Kumar
bank of india, Balewadi, d. have
(9325125904)(purcha
Millennium pune 411045 to drop
se@mecpl.in)Send
Engineers & Opp. Aundh Police 91 20 66854600 ,020 a
company details. Call
Contractors Chowky, 2588 3181 new no. brochu
on Monday(22/6/15)
1 Pvt. Ltd. Aundh, Pune - 411 007 66815100 re

303, Bremen Business mail@stbira

2 S.T.BIRADAR Center, 9120 64013432 dar.com
call on moday to
ENGINEERS University Road,
Mr.Harish Deradar
& Near City International
told by babu
CONTRACTORS School, stbiradar@g
3 PVT. LTD. Aundh, Pune - 411007 9120 65605577 mail.com

4 Shop No A - 91-20-25889697
1,Chintamani Nagar
5
Society,Anand
Hansmith Park,Aundh,Behind
6
Associates Beadozan Mall, Pune-
7 Constructions 411007 Business is closed

S No 91-20-25880225
Nikhil 162/3A/3B,Aundh,Near
Development Garden Estate, Pune-
8 Corporation 411007 real esatate agency

B9, Guru Tegbahadur 91 9422320770

Housing Society, 3,
Multitek Aundh Road, Near Lic
9 Corporation Office, Pune-411020 not in civil line

Oak No-10,Goodwill 91-20-32343754

Pramotares Society Iti Road
10 And Builders Aundh, Pune-411007 Business is closed

53
 Office 7,5th 91-20-25899871 Contacted Mr.
Abhijit Floor,Parihar Chowk, Pandurang Pawale
Jagdhane & Aundh, Near Union 9922063507 (drop a
11 Associates Bank, Pune-411007 brochure at office)

Ram 55/2/2,Aundh, Pune- 91 9822023548

12 Construction 411007

(91) 9822052929
Sr No 138 A-3/7 Opp
13 Lifeline Hospital, Aundh,
Shri Chintamani Pune - 411007, Shri Ram
14 Construction Nagar Parihar Chowk (91) 20 25532396 Inoperative Number

301,Supreme Ikon,Baner 91 20 25660333

Adwitiya Road,Near Sakal
Projects (I) Pvt Nagar,Aundh, Pune-
15 Ltd 411007 no one picked the call

38, Westend Plaza, 1st

Floor,Above Champion
Vastu Build Sports,New D P Road,
16 Corp Aundh, Pune-411007 tel:+91-20-65217042 Inoperative number

C - 1/4, Chintamani
Nagar, Society, Anand
Payal Engineers Park, Aundh, Pune-
17 & Contractors 411007 tel:+91-20-25897264 no one picked the call

Saileela
Apartment,Ekdant
Vihr,Aundh, Pune-
18 Sri Projects 411007 tel:+91-20-27297324 no one picked the call

visit to
site
Cts No 2447,Aundh pashan
Road,Next To St Thomas link
School, Pune- road to
411020129/2, Mont Vert inventa
Mont Vert Marc, l
Group & Pashan-Sus Road constr
Pristine Pune 411 021, Visit to the office uction
Constructions(N Maharashtra, India contact Mr.James for pvt ltd.
iraj Kumar Phone: +91-20-25872633 10/7 cft concrete Still
Associates / 0903 mixers given order to visit to
19 Pvt.Ltd.) +91-20-25871903 / 1703 tel:+91-20-25823455 cosmos (1.45) mont
vert

54
 and
talk to
James

Ashiyana omprakash@gi
Park,2,Aundh,Nr Saira tagroup.com
International School
Opp Gaikwad Petrol
Pump, Opp Gaikwad Mr. Omprakash
Petrol Pump, Pune- Marda (9370147625,
20 Gita Group 411007 tel:+91-20-27299911 9822597987)

270,Sind
Society,Aundh,On
Ganeshkhind Road,Nr Leasing of
Khubson Sindhu Vidhya construction
21 Builders Bhavan, Pune-411007 tel:+91-20-25850633 equipment

Office No 401,4th
Floor,Sr No 161,S R
Chambers,Nagraj
Arun Sane Road,Aundh, Pune-
22 Associate 411007 tel:+919922442364 call in the aftertnoon

10,Surmani Housing
Society,D P
Omkar Road,Aundh, Pune-
23 Construction 411007 tel:+91-20-25880242 no one picked the call

Have
to
meet
Shop No 38,Western on
Plaza,Parihar wedne
Chowk,Aundh, Pune- Contact Eshan More sday
24 Vastu Builders 411007 tel:+919763704843 9527033111 24 july

Office No 8, 5th Floor,

Abja Pavillion,
Eesha Opposite Union Bank Sister concern of
Construction Of India, D P Road, Abhijit Jagdane
25 Company Aundh, Pune-411007 tel:+91-20-25899872 associate

55
 Bhakti Plaza, Office No tel:+91-20-25885455
1, 3rd Floor, Opposite
Aundh Police Chowky,
Pune Mumbai
Siddhi Highway, Aundh, Mr. Rupesh Badhule no one
26 Constructions Pune-411007 (9881733712) picked

have
comple
ted
project
s in
pune.
Now
workin
g in
nagpur
Block No 404,4th
Floor,Plot No . dont
10,Stellar buy
Enclave,Dhole Patil machin
Rachana Road,Aundh,Above Mc es sub
Construction Co Donald's,Near Parihar contra
27 Private Limited Sq, Pune-41100 tel:+919822560741 no one picked the call cts

Off 304/305,Plot No
5,Supreme Icon,Near
Sakal
Nagar,Aundh,Aundh
Varun Baner Road, Pune-
28 Developers 411007 tel:+91-20-25661376 no one picked the call

7,Plaza
Apartment,Bhosale
Nagar,, Aundh, Pune, Ma
29 LM Matal & Co harashtra, India 411007 25538651 no one picked the call

B10,Shirin
30 RB Garden,, Aundh, Pune, 25888576
Krishnani(Civil E Maharashtra, India 4110
31 ngineers) 07 25885786 no one picked the call

202 ,Reha
Apartments,Aundh Road,
G H Ajwani Khadki, Pune, Maharasht
32 Construction ra, India 411003 25813324 no one picked the call

56
 J H Ajwani
Construction 202/5 ,Rhea
Private Apartment,Aundh Road,
Limited(Civil En Khadki, Pune, Maharasht
33 gineers) ra, India 411003 25813318 no one picked the call

2. Needs Identification:

In this stage the salesperson takes a qualified prospect through a series of question and answer
sessions in order to identify the requirements of the prospect. During this step, the salesperson
will attempt to help the buyer identify and quantify a business need or a "gap" between where the
client is today and where they would like to be in the future. Based on that gap, needs can be
clarified to determine if the solution will fill all, or part of the overall gap.

With every interaction with the prospects whether through meeting, calls or emails initially the
objective was to identify the needs of the customer. Many a times customers fail to convey a
clear message of their needs thus it is the smartness of the sales person to understand the
customers exact needs. Because perfect identification only can led to a perfect product delivery.

3. Proposal generations :
After brief interactions with the customers either the customer himself asks for a quotation or the
sales person has to suggest the same. Generally a customer always demands for a either a
minimum price or optimum price.
Though the proposals may have to be changed multiple times depending upon the urge to crack
the deal and other matters involved.

4. Negotiations:
Now if the customer is truly interested in your product he will try an negotiate on price. Here the
main of the customer is to get a minimum price and maximum value. Generally sales person has
been given the maximum and minimum price for the product. It is his duty to ensure that no deal
should end up making losses.

5. Closing a sale:
The final part of the customer acquisition process wherein the customer agrees upon to pay a
proposed amount by the company (sales person) in return he expects value for money.
Being a small scale company here the job of the sales person doesnt end with the closing of the
sale but is extended way far.

57
 RECOMMENDATIONS FOR THE COMPANY:

1. Undertake more promotional activities to make people aware of the company.

2. Providing USP on the brochures.
3. Developing a distribution channel to gain market share.
4. Formulating AMC contracts to maintain the relationship with the existing customers.
5. Creating differentiators to gain competitive advantages.

58
 REFERENCES:

www.strongmachinesindia.com
www.ibef.org
www.corratel.com
www.marketing-schools.org

59