CHAPTER-1

COMPANY PROFILE AND FUNCTIONAL ANALYSIS

BILTECH BUILDING ELEMENTS LIMITED

- A MULTINATIONAL COMPANY.

HEAD OFFICE:

THAPAR HOUSE, 124, JANPATH, NEW DELHI – 110001

PH: 011 – 41699283, 41699370
EMAIL: rajdeepc@bilt.com, joybose@bilt.com, admohan@bilt.com

REGIONAL OFFICE:

CG HOUSE, 4TH FLOOR, Dr. A.B ROAD, WORLI,

MUMBAI – 400025

WORKS:

71 KM STONE, MATHURA ROAD,

DELHI-MATHURA HIGHWAY,
PALWAL, HARYANA

105 KM STONE, PUNE-SHOLAPUR HIGHWAY,

NEAR BHIGWAN, TALUKA INDAPUR,
DISTT. PUNE, MAHARASHTRA.

NATURE OF THE ORGANISATION AND BUSINESS:-

It is a manufacturing organization in which raw material in the various forms is converted
into final products. It makes industrial products.

TYPE OF INDUSTRY & BUSINESS:-

It comes under secondary sector and it is a major player in AAC industry in India.

MARKETING ANALYSIS
 Company Offers high-quality, environment friendly building materials using fly ash
generated from thermal power plants to manufacture Lightweight Autoclaved Aerated

1
 Concrete (AAC) for the commercial construction industry with value added features
at a competitive price.
 Servicing the needs of the construction industry, both in the public and private sectors
– primarily for hospitals, institutional buildings, clubhouses, resorts , hotels,
residential towers, hostels, schools & shopping malls in Northern and Western India
for over a decade
 Caters to the growing niche market that has been created in the Indian construction
industry consisting of buildings which require high seismic design, environment
friendly materials and energy efficient features.
 BILTech believes that the incorporation of value added features like speed of
construction or turnkey solutions will ultimately serve the growing needs of the
Indian construction industry and strives to provide the same for a better future

FINANCIAL ANALYSIS
The total income of the company increased by a Compounded Annual Growth Rate
(CAGR) of 23.49% from FY05 to FY08 on the back of higher volume sold and improved
realisations. The profitability margins remained stressed in the past since the company
was witnessing lower sales volume and high incidence of fixed costs. On account of
achievement of economies of scale, supplemented by new boiler at Palwal unit along
with increase in sales volume and average realisation, BBEL had posted substantial
increase in PBILDT margins in FY08.
The company has witnessed regular increase in share capital on account of capital
infusion by promoters (in FY06 via optionally convertible preference shares and in FY07
through share allotments). The capital support from promoters also helped the company
to sustain the operations effectively even in loss-making periods. For the nine months
ended December 31, 2008, BBEL had witnessed considerable improvement in revenues
and profitability.

2
VISION

Vision of group is to continue to demonstrate strong leadership globally and emerge as a

focused corporate, leveraging knowledge, leadership and operations, adding lasting value
for stakeholders and investors

MISSION

To utilize bulk quantities of fly ash and help bridge the huge shortfall of bricks and other
building materials required by the constantly rising construction activities.

PRODUCT RANGE

BBEL is engaged in the business of converting fly-ash into credible building material
commonly known as Autoclaved Aerated Concrete –Blocks & Slabs (AAC). AAC is one
of the lightest forms of concrete and technically advanced material used for production of
concrete blocks.

AAC blocks
Biltech blocks can be used in external as well as internal walls. They are as per IS 2185-
1984 and masonry is carried out as per IS 6041 – 1985 and IS 1905 – 1987.

AAC Panels
Biltech reinforced vertical and horizontal wall panels can be used in construction of
external and internal walls. The height of the wall panel should not be more than 3 meter.
These wall panels are as per IS 6072: 1971.

AAC Reinforced Roof/ Floor Panels

Biltech – AAC Reinforced Roof/ Floor Panels are used for roofs and floors in Biltech
prefab system and are available in 550-650 kg per cum density. They are provided with

3
tongue, groove and grouting groove profile on edge to facilitate easy placements and
transmissions of loads to main structure. Biltech Roof/ Floor Panels are as per IS 6073 –
1971.

AAC – Thermotile
Thermal roof tiles can be laid on new RCC slabs as well as on existing slabs for the
purpose of thermal insulation.

SIZE OF ORGANISATION

• Biltech commands the status of the largest fly ash based AAC manufacturer in
India. It is established in the year 1993.
• Biltech covers more than 40 percent of market share in its area of business with
an annual turnover of around 100 crore.
• Around 1000 employees working in all the units of Biltech Building Elements
Limited.

4
ORGANISATION STRUCTURE OF THE COMPANY.

COO

D.G.M D.G.M G.M D.G.M

(Finance) (Marketing) (Plant) (H.R)

MANAGER MANAGER MANAGER MANAGER

DY. MANAGER DY. MANAGER DY. MANAGER DY. MANAGER

EXECUTIVES EXECUTIVES EXECUTIVES EXECUTIVES

SUPERVISOR OFFICER

WORKERS

MARKET SHARE & POSITION OF THE COMPANY IN THE INDUSTRY

Biltech capture 40% of market shares in term of volume of the product. There are very
less competitor of the company. In northern region, there is not any competitor but in
southern region, there are some competitors. Company is on top position in the industry.

5
 CHAPTER -2

JOB SPECIFIC ANALYSIS

Report on working of comapny
I have been told to make a project report on the working of the company with the help of
studying 4 P’s of marketing in detail. The project report is the main criterion of
performance in the company by me. The main task of trainees in the company is to
anlyze the marketing strategies of the company with the help of primary and secondary
data. With the help of interaction with various dealers and customers, the marketing
strategies adopted by the company are analyzed.

6
 CHAPTER – I

RESEARCH PROBLEM AND PURPOSE

INTRODUCTION
Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage. A marketing strategy should be centered on the key concept that
customer satisfaction is the main goal. A marketing strategy combines product
development, promotion, distribution, pricing, relationship management and other
elements; identifies the firm's marketing goals, and explains how they will be achieved,
ideally within a stated time frame. Marketing strategy determines the choice of target
market segments, positioning, marketing mix, and allocation of resources. Marketing
strategy determines the:
 Market segmentation
 choice of target market segments
 positioning
 marketing mix,
 Allocation of resources.
• Strategies based on market dominance - In this scheme, firms are classified
based on their market share or dominance of an industry. Typically there are four
types of market dominance strategies:
o Leader
o Challenger
o Follower
o Nicher
• Porter generic strategies - strategy on the dimensions of strategic scope and
strategic strength. Strategic scope refers to the market penetration while strategic
strength refers to the firm’s sustainable competitive advantage. The generic

7
 strategy framework (porter 1984) comprises two alternatives each with two
alternative scopes. These are Differentiation and low-cost leadership each with a
dimension of Focus-broad or narrow.
o Product differentiation (broad)
o Cost leadership (broad)
o Market segmentation (narrow)
• Innovation strategies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is on
the cutting edge of technology and business innovation. There are three types:
o Pioneers
o Close followers
o Late followers
• Growth strategies - In this scheme we ask the question, “How should the firm
grow?” There are a number of different ways of answering that question, but the
most common gives four answers:
o Horizontal integration
o Vertical integratio

PROBLEM STATEMENT

8
Biltech commands the status of the largest fly ash based AAC manufacturer in India. The
present research would identify whether Biltech will be able to maintain its position at
top through its marketing strategies. Instead of using simple promotional techniques, the
company maintains its top position in the industry. In today time, the awareness of
consumer is increasing and the competition has become severe. The company is
manufacturing industrial products. There are various factors which affect their sales of
products like environmental factors, organizational factors etc. So, problem which lies in
this company is “To maintain its current growth rate and performance with help of
effective marketing strategies.”

OBJECTIVE

9
 1. To analyze the marketing strategies of Biltech in terms of Product, Price, Place,
and Promotion.
2. To study the 4 p’s of the company in detail.
3. To identify the competitive edge of Biltech in the industry.
4. To do SWOT analysis of the company related to marketing aspects.

SCOPE

10
Functional Area -Marketing
Time of Study – point of time

Focus of the study:

Biltech commands the status of the largest fly ash based AAC manufacturer in India but
its marketing strategies is somewhat different in comparison to other companies who
promote their product in such a way that they can cover large segment of population
through advertisement in Television, Radio etc but Biltech uses some other strategy to
attract its target customers, focus of the study is on the marketing techniques used by the
Biltech to reach its target customers.

Relevance of the study:

Relevance of the study lies in the fact that even with other promotion methods and
different marketing techniques other than advertisement in Television, Radio, Newspaper
etc. Company can still be at the top in their area of business.

CHAPTER – II

11
 REVIEW OF LITERATURE

With the help of various books, journals and internet, the review of concepts and theories
and review of previous research finding is taken place.
Some previous research on marketing strategies is also studied.
Some book are also reviewed of “Marketing Management” to clear concepts and theories.

MARKETING STRATEGIES BASED ON THE

MARKETING MIX

MARKETING-MIX

1. 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.
2. James Culliton, the American marketing expert, coined the expression Marketing
Mix and described the marketing manager as 'mixer of ingredients" as he has to
establish fair balance among the four elements of marketing mix in order to achieve
marketing targets. He is also a 'decider', 'artist' of marketing mix formula.
3. The four components of marketing mix are also called "marketing mix variables"
or "controllable variables" as they emanate from within the enterprise and the
marketing manager can use them freely as per his desire or need of the situation.
4. The elements of marketing mix constitute the core of marketing system of a firm. It
is a profitable formula for successful marketing operations.

A marketing manager executes his marketing strategies through these instruments.

12
Features of Marketing Mix

• Combination of four marketing variables

• Useful for achieving marketing targets
• Flexible and dynamic
• Periodical adjacent of variables
• Marketing manager acts as a mixer of ingredients
• Customer is the focus point
• Variables are interrelated
• Four Ps of sellers correspond to four Cs of customers.

13
 Elements / Ingredients of Marketing Mix

Product: Product is the article which a manufacturer desires to sell in the open market. It
is the first element in the marketing mix. The product mix includes the following variables.

1. Product line and range,

2. Style, shape, design, quality and other physical features of a product,
3. Product innovation,
4. Product servicing.

Product is the most powerful competing instrument in the hands of the marketing
manager. It is the heart of whole marketing mix. If the product is not sound /attractive
to the customers, no amount of sales promotion, appropriate channel selection or price
reduction will help to achieve the marketing target. Hence, durability, quality, uses, etc.
of the product are important from the marketing point of view.

Distribution channel (Place): Physical distribution is the delivery of goods at the right
time and at the right place to consumers. Physical distribution of product is possible
through channels of distribution which are many and varied in character.

14
Physical distribution (place mix) includes the following variables:

Types of intermediaries available for distribution,

• Distribution marketing channels available for distribution, and

• Transportation, warehousing and inventory control for making the product available
to consumers easily and economically.

Promotion: Promotion is the persuasive communication about the product offered by the
manufacturer to the prospect.

Promotion mix includes the following variables:

• Advertising and publicity of the product,

• Personal selling techniques used,
• Sales promotion measures introduced at different levels,
• Public relations techniques used for keeping cordial relations with dealers and
consumers,

Promotional activities are necessary for large scale marketing and also for facing
market competition effectively. Such activities are varied in nature and are useful for
establishing reasonably good rapport with the consumers.

Advertising gives information and guidance to consumers. Brand names are made
popular through advertising. Along with advertising, personal selling is also useful for
motivating the customers to buy a specific product.

In addition to advertising and personal selling, a manufacturer has to use other sales
promotion techniques at the consumer level and at the dealer level. The techniques at
consumer level include displays, exhibitions, discount coupons, small gifts and free
samples, attractive container and consumer contests. Consumer psychology is
favorable for extensive use of such sales promotion techniques.

15
Price: Price is one more critical component of marketing mix. It is the valuation of the
product mentioned by the seller on the product.

Price mix includes the following variables:

• Pricing policies,
• Discounts and other concessions offered for capturing market,
• Terms of credit sale,
• Terms of delivery, and
• Pricing strategy selected and used.

Pricing has an important bearing on the competitive position of a product. The

marketing manager may use pricing as a tool for achieving the targeted market share or
sales volume. Pricing can also be used for capturing market and also for facing market
competition effectively. Pricing decisions and policies have direct influence on the
sales volume and profits of the firm. Market price of a product also needs periodical
review and adjustments. The price charged should be high enough to give adequate
profit to the company but low enough to motivate consumers to purchase product. It
should also be suitable to face market competition effectively.

16
 CHAPTER – III

CURRENT SCENARIO
The end users of AAC material are real estate and construction industry. An ACC block
is a product which is technically superior to the conventional building material but comes
at relatively higher cost. The product is gaining acceptance at wider levels due to growing
awareness for green building processes and also due to technical superiority. The industry
also got favourable response from the construction industry since adoption of
international code of construction by various construction entities. Going forward,
construction companies will also have to tackle the key challenge of input cost pressure.
Along with this, delay in awarding of projects by the Government can also hamper the
demand and the construction activity. However, key factors which may impede the
growth of the AAC industry are (i) limited usage; thus restricting the size of the industry
(ii) costly proposition with reference to the conventional bricks and (iii) slowdown in the
housing and construction activity. However, the risks are to some extent mitigated by the
growing awareness about the environmental-friendly buildings and relatively lesser usage
of adhesives (cement and steel), providing cost reduction to some extent and regulatory
push.
The major player in the industry is:
 Biltech building elements Ltd.
 Sipprox Limited
 Ecolite Limited
 Magic Brick Limited
 Hyderabad Industries Limited

17
 CHAPTER-IV

RESEARCH METHODOLOGY

Research always starts with a question or a problem. Its purpose is to question through
the application of the scientific method. It is a systematic and intensive study directed
towards a more complete knowledge of the subject studied.

RESEARCH DESIGN:
It is the framework for conducting the research project.
Exploratory Research: It is a type of research where the main objective is to develop
insights into problem and find the area where problem lies.
Research is initiated by examining the secondary data to gain insight into the problem.
The primary data is evaluated on the basis of the analysis of the secondary data.

The data for this research project has been collected through self administration. Due to
time limitation and other constraints direct personal interview method is used. A
questionnaire was framed as it is less time consuming, generates specific and to the point
information, easier to tabulate and interpret.

NATURE OF DATA –
Secondary data – Published data and the data collected in the past or other parties is
called secondary data. There are various sources of secondary data like research papers,
periodicals, published researches, database companies etc.

Primary data –Data observed or collected directly from first-hand experience. There are
many methods of collecting primary data and the main methods include:

• questionnaires

• interviews

• observation

18
METHOD OF COLLECTING DATA
Primary data:
For primary data collection, the questions which are given in questionnaires are
informally discussed with the employee of marketing department of company.. A
questionnaire is made which contain some questions related to marketing aspects. In it,
personal interview is taken of experts in marketing area from the company. Questionnaire
is prepared only to take the views of employee about marketing strategies followed by
company.

Secondary data:
It is collected through the websites, journal, books, previous research and past records of
the company.

SAMPLING TECHNIQUE:
Convenience sampling (sometimes known as grab or opportunity sampling) is a type of
non-probability sampling which involves the sample being drawn from that part of the
population which is close to hand. That is, a sample population selected because it is
readily available and convenient. Convenience Sampling Technique used since this need
detail analysis. Due to following constraints –
• Time constraint
• Resource constraint
• Cost constraint

SAMPLE SIZE:
Employees of marketing department

IDENTIFIED INDEPENDENT VARIABLES –

Marketing Strategies

IDENTIFIED DEPENDENT VARIABLES

Performance of the company

19
HYPOTHESIS
The performance of company is directly dependent on the marketing strategies used by
the company.

RELEVANCE OF QUESTIONS ASKED IN THE QUESTIONNAIRES:

The company’s marketing strategies are confidential; company is not going to disclose
them as such. Questions asked in the questionnaires are prepared in such a way that it
will reflect the strategies of company to some extent, also will give the relevant data for
proving or disproving the hypothesis formulated.

Marketing strategies mainly focuses on 4Ps – Price, Place, Product and Promotion.
Therefore, questions are asked related to those 4Ps and about the relevance of marketing
strategies in company’s performance in the past years.

Company has started using the marketing concept only few years back earlier it was
using selling concept, questions related to selling concept are also included in the
questionnaires.

ANALYTICAL TOOLS
SWOT analysis
S: STRENGTH
W: WEAKNESS
O: OPPORTUNITIES
T: THREAT
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieve that objective.

20
A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. Strategic Planning, has
been the subject of much research.

• Strengths: attributes of the person or company that are helpful to

achieving the objective.
• Weaknesses: attributes of the person or company that are harmful
to achieving the objective.
• Opportunities: external conditions that are helpful to achieving the
objective.
• Threats: external conditions which could do damage to the
objective.

The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT

analysis may be used in any decision-making situation when a desired end-state
(objective) has been defined. Examples include: non-profit organizations, governmental
units, and individuals. SWOT analysis may also be used in pre-crisis planning and
preventive crisis management. SWOT analysis may also be used in creating a
recommendation during a viability study/survey.

ANALYSIS PATTERN
A. Data is collected from employee with the help of personal interview technique
B. After collection of data, it is processed to find some mistakes to eliminate it.
C. After processing of data, it is analyzed properly for doing the SWOT Analysis and
analysis of marketing mix and strategies of the company.
Besides above analysis, detailed analysis is also done on the basis of qualitative data
about different marketing aspects of the company.

21
 CHAPTER-V
ANALYSIS
WHAT IS AUTOCLAVED AERATED CONCRETE BLOCKS?
Autoclaved Aerated concrete (AAC), or otherwise known as Autoclave Cellular Concrete
(ACC) was invented in the mid-1920s by Max Ginsberg. It is a lightweight, precast
building material and provides structure, insulation, fire and mold resistance in a single
material. AAC products include blocks, wall panels, floor and roof panels, and lintels.

It has since been refined into a high thermally insulating concrete-based material used for
construction both internally and externally. Besides insulating capability, one of AAC's
advantages in construction is its quick and easy installation since the material can be
routed, sanded and cut to size on site using standard carbon steel bandsaws, hand saws
and drills.

Even though regular cement mortar can be used, 98% of the buildings erected with AAC
materials use thin bed mortar, which comes to deployment in a thickness of 1/8 inch. This
varies on national building codes and creates solid and compact building members. AAC
material can be coated with a stucco compound or plaster against the elements. Siding
materials such as brick or vinyl siding can also be used to cover the outside of AAC
materials.

Produced for more than 70 years, AAC offers considerable advantages over other
construction materials, one of the most important being its very low environmental
impact.

AAC’s high resource efficiency gives it low environmental impact in all phases of its life
cycle, from processing of raw materials to the disposal of AAC waste.
22
AAC’s light weight also saves energy in transportation. The fact that AAC is up to five
times lighter than concrete leads to significant reductions in CO2 emissions during
transport. To reduce the need for transportation, AAC manufacturers apply the principle
of producing as near to their consumer market as possible.

AAC’s excellent thermal efficiency makes a major contribution to environmental

protection by sharply reducing the need for space heating and cooling in buildings.

In addition, AAC’s easy workability allows accurate cutting that minimizes the
generation of solid waste during use. Unlike other building materials AAC can eliminate
the need to be used in combination with insulation products, which increase the
environmental impact and cost of construction.

Unlike most concrete applications, no aggregate larger than sand is used. Quartz sand,
lime and/or cement are used as a binding agent. Aluminum powder is used in 0.05%–
0.08% by volume (depending on the pre-specified density) and water. When mixed and
cast in forms, several chemical reactions take place that give AAC its light weight (20%
the weight of concrete) and thermal properties. Aluminium powder reacts with calcium
hydroxide and water to form hydrogen. The hydrogen gas foams the raw mix to double
the volume (with gas bubbles up to 1/8 inch in diameter). At the end of the foaming
process the hydrogen escapes to the atmosphere and is replaced by air.

When the forms are removed from the material, it is solid but still soft. It is then cut into
either blocks or panels, and placed in an autoclave chamber for 12 hours. During this
steam pressure hardening process, when the temperature reaches 374° Fahrenheit (190°
Celsius) and the pressure reaches 8 to 12 bars, quartz sand reacts with calcium hydroxide
to form calcium silica hydrate, which accounts for the material's high strength and other
unique properties. After the autoclaving process the material is ready for immediate use
on the construction site. Depending on its density, up to 80% of the volume of the mass is
air. Density also accounts for the low structural compression strength of AAC material,
which can carry loads up to 1,200 PSI, approximately only about 10% of the compressive
strength of regular concrete.

23
Since 1980, there has been a worldwide increase in the use of AAC materials and new
production plants are being built in the USA, Eastern Europe, Israel, China, Bahrain,
India and Australia. AAC is increasingly used by developers, architects and home
builders. The Material is also known as: Autoclaved Aerated Concrete, Cellular Concrete,
Porous concrete, Hebel (Aus), Aircrete and Thermalite (UK), BCA (Romania).

ORDER BOOKING PROCEDURE

General Procedure

 Developer buys the land/plot for constructing the building for commercial
purpose
 Developer either takes advice from hired structural consultant and architect or
from already employed ones.
 Structural consultant and architect specifies what should be the design of the
building and what type of material should be used.
 For the specified one developer releases the tender for construction purpose.
 Contractor is selected on the basis of price.
 Contractor further releases contract for supplying the specified raw material –
AAC and supplier is selected on the basis of parameters like – credibility, timely
delivery of goods, price etc. On that basis company gets the contract

Other way of getting order

1. Customer directly contact the manufacturing unit or marketing office for his
order.
2. Contractor directly gives the contract to the company on the basis of old business
relationship and previous performance of the company.

Internal Procedure

24
  After getting the contract all details of the customer regarding ordered quantity,
size of block needed, date of delivery, price and address recorded in a separate DI
form for different customers.
 On the basis of orders daily dispatch order and production plan is sent to the
Palwal Unit for manufacturing and delivering the required blocks.

ORDER EXECUTION

There is not any intermediary or channel used for distribution of the products. Direct
distribution of the goods from the manufacturer to company is done.

MANUFACTURER CUSTOMER
Transporter

Transporters are used for distributing the products to its ultimate destination. There are
three transporters for NCR region and four transporters for outside NCR.
For NCR –
• Bharat Cargo Movers
• Rahul Road lines
• Maggu Freight Carriers

For Outside NCR-

• Crescent Road lines
• Union Road lines
• Bharat Cargo Movers
• A.C.M

DEPARTMENT INVOLVED IN ORDER EXECUTION

Manufacturing department: - The main function of manufacturing department is to
manufacture the right quantity of the products according to the production plan made by
the marketing department.

25
Marketing department: - The main function of marketing department is to find the
prospective customer for buying the products. With the help of various strategies used, it
converts a prospective customer into a potential customer. It makes a production plan
after receiving order from customer.

Finance department: - The main function of accounting department is to make proper

accounting records of all the orders to charge the right price by making a invoice from the
different customers.

Dispatch department: - The main function of dispatch department is to dispatch the

right goods to the right customer according to the dispatch order made by marketing
department.

STEPS FOLLOWED IN EXECUTING THE ORDER

 Daily stock details with product specifications of all sizes is given to the
marketing office, details about product sizes, quantity of different sizes etc.

Identification of customers
 Marketing office through its promotional activities and strategies makes the
customer for the company. Every customer is allotted separate ID number.

Dispatch orders and production plan

 Daily dispatch order and production plan is sent via e-mail to the manufacturing
unit at Palwal.

 Dispatch order contains details like Customer ID number, customer address;

product requirement of that customer, quantity of element required and rates
details which are also filled in a DI form.

 Dispatch plan is sent to the Dispatch Department for further processing.

26
  Dispatch Department decides which truck will be loaded and will be sent to which
customer.

 Trucks are weighed before entering the company gate and again weighed after
loading it. It is done because payment of freight is given on the basis of weight
loaded and unloaded but company charge the freight money to the customer on
the basis of per cubic meter. One truck is normally loaded with 20 cubic meter
element.

Loading of goods
 Dispatch operator makes the trucks loaded with the help of workers and makes a
list: which truck is loaded with which type of element with product specification
like – quantity, size, weight etc.

 It is done so that right product is delivered to the right customer.

 Before final dispatching truck is again checked whether right order is dispatched
or not to the right customer.

Invoice
 After that invoice is made of the orders and list is made which truck will be sent
to which customer.

 Original invoice and a copy of invoice is given to the driver of the truck who is an
employee of transporter, one copy is sent to the head office and other one is to the
accounts department.

Final destination
 After unloading, customer signed invoice copy which is kept by driver and
original is given to the customer.

27
  Customer and company works in certain conditions of breakage of material. Both
satisfies up to a certain percentage level of breakage of material, it can be 1% or
2%. If breakage goes above that level then company bears cost of that extra
breakage.

AREAS OF APPLICATION

 Multi Storied Building

 Industrial building
 Residential Construction
 Industrial Construction
 Commercial Building
 Add on floors and extension

PRESTIGIOUS CLIENTS
• Max Healthcare
• Sahara
• Godrej
• Oberoi constructions
• ITC limited
• Fortis
• Punj Lloyd
• Delhi Metro Rail Corporation Limited
• Adobe
• Wipro
• Columbia Asia
• Shapoorji Pallonji and Co. Limited

28
BILTECH MARKETING STRATEGIES ON THE BASIS OF
4PS

OBJECTIVE OF MARKETING STRATEGY

Profit Maximization

PRODUCTS
AAC blocks
Biltech blocks can be used in external as well as internal walls. They are as per IS 2185-
1984 and masonry is carried out as per IS 6041 – 1985 and IS 1905 – 1987. Their
workability is better than wood. They can be cut, drilled and nailed by using normal hand
tools. Power tools can be used for rapid chasing for the embedment of services. Biltech
blocks can be cut virtually any shape or angle making them extremely adaptable.
Standard Length- 625 mm * 250 mm
Thickness – 100 mm to 300 mm with an increment of 25 mm
Density – 550 – 650 kg/ cu. M

AAC Panels
Biltech reinforced vertical and horizontal wall panels can be used in construction of
external and internal walls. The height of the wall panel should not be more than 3 meter.
These wall panels are as per IS 6072: 1971 and can be designed up to a superimposed
load of 450 kg per sq.m.
Density – 550 – 650 kg/ cu. M
Width – 625 mm
Height / Length – As per requirement up to 3 meter

29
Thickness – 150 mm, 200 mm

AAC Reinforced Roof/ Floor Panels

Biltech – AAC Reinforced Roof/ Floor Panels are used for roofs and floors in Biltech
prefab system and are available in 550-650 kg per cum density. They are provided with
tongue, groove and grouting groove profile on edge to facilitate easy placements and
transmissions of loads to main structure.
Biltech Roof/ Floor Panels are as per IS 6073 – 1971 and can be designed up to
superimposed loads of 550 kg / sq. m
Length – 1 to 3 meter as per span requirement
Width - 625 mm
Thickness - 125 to 200 mm depending on span load

AAC – Thermotile
Thermal roof tiles can be laid on new RCC slabs as well as on existing slabs for the
purpose of thermal insulation.
Size – 625 * 250 mm
Thickness – 75, 100 mm
Oven dry density – 550 -650 cu. M

FEATURES OF THE PRODUCT

Light Weight
Biltech products have density 1/3rd of bricks and 1/4th the density of RCC. Their use
results in the reduction of dead locks on the structure and consequently reduction in the
size of foundations, columns and beams in the structure as compared to conventional
walling materials.

High Thermal Insulation

The cellular structure on biltech products make it far better thermal insulator than brick or
RCC, thereby making living environment inside the building more comfortable during

30
summer and winter. In case of air conditioned building, the air conditioning load is
reduced as much as 40percent approx, leading to savings in recurring energy cost.

Fire Resistance
Biltech products are inorganic and totally incombustible. It provides 6 hours of fire rating
for 200 mm thick walls and is particularly suitable for fire rated applications.

Low Maintenance
AAC is an inorganic material impervious to rot, insects and other pests. Buildings
constructed over sixty years ago in many different climates have proven AAC to be one
of the most durable building materials available.

Environment Friendly
The manufacturing process creates no by-products and uses raw materials that are in
abundant supply. Manufacturing waste is recycled into the raw material mixing process.
AAC is recyclable, inert, and nontoxic. AAC is not a source of chemical off gassing that
can cause indoor air pollution and illnesses.

Energy Efficient
The manufacturing process creates millions of tiny air cells which provide excellent
thermal resistance. This thermal resistance combined with the benefits of thermal mass
inertia, whole wall coverage and low air infiltration will, in many jurisdictions, eliminate
the need for additional insulation.

Easy Fixing
Doors and Windows frames can be fixed in Biltech Blocks masonry by using screws with
raw plugs. Use of U Blocks can also be made for fixing hold fasts of the frame in U
cavities of U Blocks.

Precession

31
 The process of manufacturing Biltech products ensures constant and consistent
dimensions. Variations are minimized allowing accurate installation resulting in a plane
back ground for the economical application of a variety of finishing systems. Internal
walls can be finished by direct P.O.P thus eliminating need of plaster.

AAC AS GREEN BUILDING MATERIAL

As AAC offers reduced environmental impact during manufacturing, construction and
renovation, it is fast emerging as a Green Building Material and is being recommended for
all green buildings as a “must use “.
 Environment Friendly – uses fly ash
 Energy conscious manufacturing process
 No pollutants generated in production
 No waste of raw materials
 Energy conservation

Benefits of Green Building Material

• 30 to 40 percent reduction in operational cost
• Green corporate image
• Health safety and comfort of building occupants

FACTORS INFLUENCING DEMAND OF THE PRODUCT

 Government Policies
 Customer Taste and Preferences
 Competitor come up with better product
 Promotional Tactics of the company

PRODUCT INNOVATION
Same technology for manufacturing the product is being used by the company from the
commencement till now.

32
PRODUCT LIFE CYCLE
As company started its operation in the year 1993 and since then from next 12years
product was at introduction phase with sale not very high and company is that time
introducing its products at all zones. From the last 5 years company sales has increased
drastically and still increasing that’s why product is running in its growth phase

PLACE

Countrywide network of 25 exclusive dealers for AAC with presence in 12 States.:

Unit Location Distribution Mode Of

Region Distribution
Palwal Unit Haryana Northern And Direct
Eastern Region Distribution
Near Pune Western Through
Bhigwan Unit And Southern Dealers.
Region

Company at present having two manufacturing unit – one at Palwal, Haryana and other at
Bhigwan near Pune.
Distribution in Northern and Eastern region is done from Palwal Unit and in Southern
and Western region from Bhigwan Unit. In Northern and Eastern Region Company is
mainly involved in direct distribution of goods but in Western and Southern region is
mainly done through dealers.

PRICING
Mark up pricing technique is followed to charge for the product value they are
providing to the customers.
Even when the price is set for the product it can further be negotiated by customers
depending on the quantity ordered.

33
If someone is ready to purchase element in bulk quantity then the basic price of one cubic
meter element can be negotiated down to even the lowest possible price but for small
order sizes price remains the same.
Price charges to the customer of 1cubic meter = Price of 1 cubic meter element +
excise duty + VAT + freight.
Excise duty = 10.3%
VAT charges = 2% for C’ firms
4.1% for D1 firm inside Haryana
For other firms it is 5.25%
Freight charges depend on the destination it is different for different destination if freight
is done by the company.

PROMOTION

As far as marketing strategies is concerned promotional strategies is the most important

of all.
Unless the product is promoted and kept in the eyes of customer it cannot be sold out and
company will not get able to carry out business activities.
Company can run only if it is able to convince the potential customers so that company
will be able to generate revenue and to earn profit which is needed to carry out business.

Strategies followed by company for promotion –

Starting from the way back in 1993 when Biltech Building Elements Limited started its
operations. At that time price of the product was quite costly as compared to bricks which
were used by nearly everyone for construction work.

• Marketing Department thought product is not meant for mass so they felt
advertising in T.V, Newspaper is not proper way to promote their product.

34
 • Marketing Team met each and every P.W.D engineers, architects, builders in
different regions individually and informed them about their products, features,
quality and what type of advantages they are going to get by using the product.

Company started to get order in small quantities from 1993 to 1998 but after 1998 it was
extra working time for the company’s staff order quantity increasing drastically.

• Company also started to raise its promotional strategies – marketing team started
promoting the product in conferences, seminars where people gathered in
comparatively bigger numbers.

• Company was promoting the product on the basis of merits because price of the
product was comparatively higher than other building elements like bricks.

• Then company started to advertise in technical magazines about the product

features how technically product is suitable for construction.

Same strategies is been followed by company from 1993 till now.

At present company almost enjoying monopoly in the Northern and Eastern region. For
Western and Southern region company has set up one more plant at Bhigwan where
already many competitors exist in the same industry.

Company followed the same strategies for Southern and Western region but due to severe
competition company is not able to enjoy monopoly but competition is also necessary to
improve the product quality and for business purpose.

Now Biltech Building Elements Ltd is the largest manufacturer of fly ash building
element and captured over 40 percent of market share.

FACTORS INFLUENCING DEMAND OF THE PRODUCT

35
  Government Policies
 Customer Taste and Preferences
 Competitor come up with better product
 Promotional Tactics of the company

PRODUCT LIFE CYCLE

As company started its operation in the year 1993 and since then product was at
introduction phase up to 12 years with sale not very high and company is that time
introducing its products at all zones. From the last 5 years company sales has increased
drastically and still increasing that’s why product is running in its growth phase

PRODUCT INNOVATION
Same technology for manufacturing the product is being used by the company from the
commencement till now.

MAJOR COMPETITORS ALL OVER INDIA

 Sipprox Limited
 Ecolite Limited
 Magic Brick Limited
 Hyderabad Industries Limited

36
DATA ANALYSIS AND INTERPRETATION
Q: Which is most focused “p” of marketing mix in your company?

• Product
• Price
• Place
• Promotion

REEPONSE NO. OF RESPONDENTS

PRODUCT 7
PRICE -
PLACE -
PROMOTION -
TOTAL 7

MOST FOCUSED "P" OF THE COMPANY

0%

100% product

The most focused “p” of company is product.

37
Q: What do you think current marketing practice in company effect the sales in:

• Positive direction
• Negative direction
• Can’t say

REEPONSE NO. OF RESPONDENTS

POSITIVE 7
NEGATIVE -
TOTAL 7
NO. OF RESPONDNTS

EFFECT OF CURRENT MARKETING

PRACTICE ON SALES

8 7
7
6
5
4
3
2
1 0
0
POSITIVE NEGATIVE
RESPONSE

Current marketing practice of the company definitely affects the sales in positive
direction.

38
Q: Does the company change its marketing strategies according to change in the
market and industry?

Yes No

REEPONSE NO. OF RESPONDENTS

YES 7
NO -
TOTAL 7

CHANGE IN MARKETING STRAEGIES

ACCORDING TO CHANGE IN MARKET
AND INDUSTRY

0%

YES
NO

100%

39
Company change its marketing strategies according to change in various factors of
market and industry.

Q: How does company position its product in the mind of their clients?

• Attribute positioning
• Benefit positioning
• Application positioning
• Price and quality positioning
• Group positioning

REEPONSE NO. OF RESPONDENTS

ATTRIBUTE POSITIONING 3
BENEFIT POSITIONING 4
APPLICATION POSITIONING -
PRICE AND QUALITY POSITIONING -
GROUP POSITIONING -
TOTAL 7

40
 POSITIONING STRATEGY
ATTRIBUTE
POSITIONING

0% BENEFIT
POSITIONING

APPLICATION
43%
POSITIONING
57%
PRICE AND
QUALITY
POSITIONING
GROUP
POSITIONING

Company positions its product on the basis of its various benefits and features.

Q: Which policy does the company use for pricing of products?

• Demand oriented pricing

• Cost oriented pricing
• Competition oriented pricing
• Value based pricing

REEPONSE NO. OF RESPONDENTS

DEMAND ORIENTED PRICING -
COST ORIENTED PRICING 5
COMPETITION ORIENTED PRICING -
VALUE BASED PRICING 2
TOTAL 7

41
 PRICING STRATEGIES

DEMAND
ORIENTED
PRICING

0% COST ORIENTED
29% PRICING

0% COMPETITION
71% ORIENTED
PRICING
VALUE BASED
PRICING

As per employees of marketing Department Company uses cost oriented pricing as well
as value based pricing to charge value of product.

Q: Whether high price of product act as hindrance in capturing market share?

Yes No

REEPONSE NO. OF RESPONDENTS

YES 5
NO 2
TOTAL 7

42
 NO. OF RESPONDENTS
PRICE ACT AS A HINDRANCE OR NOT

80% 71%
70%
60%
50%
40%
29%
30%
20%
10%
0%
YES NO
RESPONSE

71% of marketing employees think that higher price of product act as a hindrance in
capturing the market share and 29% think that it does not.

Q: Which tool is used for promotion of the products?

• Advertising
• Public relations
• Promotion technique
• Personal selling

REEPONSE NO. OF RESPONDENTS

43
 ADVERTISING -
PUBLIC RELATIONS -
PROMOTION -
TECHNIQUE
PERSONAL SELLING 7
TOTAL 7

TOOL OF PROMOTION
0%
0%
0%
ADVERTISING

PUBLIC
RELATIONS
PROMOTION
TECHNIQUE
PERSONAL
SELLING
100%

Company uses personal selling to promote its products

Q: Biltech manufactures environmental friendly products, does the company use the
concept of green marketing?

Yes No

REEPONSE NO. OF RESPONDENTS

YES 7
NO -

44
 TOTAL 7

USE OF CONCEPT- GREEN

MARKETING

0%

YES
NO

100%

Company manufactures an environment friendly product and it uses the concept of green
marketing to sell their products which help the company to increase its sales.

Q: Do you think marketing strategies contribute positively in the growth and

profitability of the company?

Yes No

REEPONSE NO. OF RESPONDENTS

YES 7

45
 NO -
TOTAL 7

CONTRIBUTION OF MARKETING
STRATEGIES IN PROFITABILITY AND
GROWTH

8 7
6
NO. OF
RESPONDE 4
NTS
2
0
0
YES NO
RESPONSES

All the employees of marketing department told that the marketing strategies contribute a
major share in current growth and profitability of the company and thus help the
company to achieve its main objective “profit and wealth maximization”

Market Share

MARKET SHARE OF THE COMPANY

40% Biltech

Other
60% companies

46
The above pie chart shows the market share of biltech. Till date, biltech has captured
40% of the market share of the whole industry.

RELATIONSHIP BETWEEN
SALES AND ADVERTISING AND SELLING EXPENSES

(Rs. In Lakhs)
YEAR SALES ADVERTISING
AND SELLING
EXPENSES

47
 2006-07 1697.29 97.37
2007-08 2395.14 145.35
2008-09 4175.14 236.27
2009-10 4865.21 232.03

MEAN OF SALE IN LAST 4 YEARS 3283.20

MEAN OF ADVERTISING AND 177.76
SELLING EXPENSES IN LAST 4
YEARS
COEFFICIENT OF CORELATION 0.93
BETWEEN SALES AND
ADVERTISING EXPENSES

48
 RELATIONSHIP BETWEEN SALES
AND ADVERTISING AND SELLING
EXPENSES

6000
AMOUNT IN LAKHS

5000
4000 SALES
3000
2000
1000
ADVERTISING
0 AND SELLING
2006- 2007- 2008- 2009- EXPENSES
07 08 09 10
YEAR

Above chart and table depicts the last 4 years sales and marketing ratio and which shows
that company’s sales increased drastically within four years and this all because of
marketing and promotion techniques used by Biltech Building Elements Limited. With
increase in marketing expenses, a gross sale of the company is also increased. The
coefficient of correlation between sales and expenses related to marketing is 0.93 which
is positive which proves that company sales is dependent upon marketing related
expenses and thus profitability and growth rate also.

49
 SWOT ANALYSIS

STRENGTHS
 Environment friendly product
 Expert and qualified marketing team
 Monopoly in northern and eastern regions
 Good coordination between all departments
 Use of new marketing concept- relationship marketing and green marketing

WEAKNESSES
 High price of product
 Small range of products
 No change in product and technology since its inception
 Selective marketing
 Have not any separate website

50
OPPORTUNITIES
 Absence of competitor in northern area
 Abundant supply of raw material at low cost
 Untapped market segments

THREATS
 Promotional tactics of competitor in southern areas
 Changing preference of customers
 Low price of bricks

51
 CHAPTER-VI

FINDING OF THE STUDY

By discussing from the different experts in the marketing field, following qualitative
data is obtained:
• Mostly marketing strategies are made independent of competitors but some
strategies are made by keeping in the mind the various competitors.
• The most focused “p” of marketing is product. The USP of the company is its
product.
• Current marketing practices which are adopted definitely effect the sales in
positive trends.
• The company adopted the practice of strategic marketing in which all factors are
taken into consideration for taking any marketing decision.
• Marketing concept is the best concept for effective performance.
• The company position its product on the basis of its attributes and benefits.
• The company has highest market share in the company. Around 40% share of the
market is acquired by the company.
• There are various clients of the company in which are prestigious names.
• For pricing of the products, cost based pricing is done.
• For promotion of the products, advertisement tools like broucher, magzines is
used.
• Company considers all points while choosing a transporters.
• Company uses the concept of green marketing.
• Effective marketing strategies is needed for higher growth and profitability of the
company.

52
 CONCLUSION

By analyzing the marketing strategies of the Biltech Building Elements Limited, it is

found that company is using NICHE Marketing strategies and using personal selling
technique to promote its product and company is very much successful in tapping the
maximum market share by using such techniques which is proved by the last four years
sales chart of the company that depicts how company has increased its annual turnover
drastically within four years by increasing its marketing tools.
For this study I have collected data from both sources primary data and secondary data.
The primary data which I collected from employees of marketing department help me to
know the various aspects of the company related to marketing areas and secondary data
help me to learn the marketing aspects.
The conclusion of this project is:
“MARKETING STRATEGIES IS VERY IMPORTANT FOR MAINTAING THE
CURRENT GROWTH RATE OF COMPANY”
Various aspects related to marketing like product positioning, promotion, distribution etc
facilitate the company’s sales and growth rate.

53
 RECOMMENDATION AND SUGGESTION

• In the present age when technology is changing so fast that within few years
almost every purchase will be going to be done through E-Commerce, keeping in
mind that thing company should have its own web site showing complete details
of company’s experience, products offered and the benefits customers will be
going to get by using these products. Today company might not feeling the need
of E-Commerce but when everything get changed within few span of years then
company might feel they are lagging behind in the race so its better to be now
rather leaving it for tomorrow.

• By using niche marketing strategy company is holding the maximum market

share in construction industry and enjoying almost monopoly in northern and
eastern region but when comes to western – southern region there number of
competitors exist giving same quality products. So apart from current strategy
company can extend its strategies further by using advertisement methods so that
even mass will come to know about the benefits of the product, it will definitely
help in increasing the customers of the company and further augment to the
market share of the company.

• Company is using same technology for manufacturing the product from the
beginning and is continuing with same technology. Company can think of change
in technology in such a way that cost of product is reduced without harming the
quality of so that final price which company charge to customer will reduce and
besides the big company, some other people can afford green building material
and enjoy the benefits of the product.

54
 LIMITATIONS OF THE STUDY

By working on this project, I have gained lot of knowledge. But there were many
limitations of this study which are I faced while working on the project. These limitations
are the following:
 Time constraint was the major limitation. I had only two months for studying my
relevant area which is very wide.
 Another limitation was knowledge constraint and this report was only an attempt
to gather as much of relevant data as possible.
 The number of respondents was limited because of time and cost constraint.
 To fix an appointment with the corporate people was tough.
 As the data was also gathered from the secondary source, the validity of that data
could not be tested.

55
 LEARNING SUMMARY
I am very lucky that I got the opportunity of working with biltech -a leading player and
part of a very large group “AVANTHA GROUP.” I learnt lot from them. The work has
been carried over a span of 2 months.
The project assigned to me was “marketing strategies”. They told me about company, its
products, industry and marketing aspects. With different discussions with group, I get an
opportunity to interact with different type of people and gain knowledge of industry. So,
working with this company, I get an opportunity to understand the insight of industry.
The learning of working is as follows:
 It gives me the excellent opportunity to learn and understand various intangible
things like thinking pattern and how to deal with different type of people to
achieve a goal.
 How to identify and understand the needs and problem of the customer and how it
is solved and right solution is provided.
 How to interact with the people in the corporate world.
 In order to get some information out of somebody, it is important to highlight
his/her interest in the whole affair.
I am working in both the manufacturing unit and marketing office of the company as
management trainee and its obvious that working environment of both the place is
different in big way.
Marketing office has well equipped furnishing with everyone has its computer and laptop
and office is centralized A.C. but on the other hand manufacturing unit is not as well
equipped as marketing office. Only around 10 rooms for employees of higher post with
comparative equipped furnishing but rest is plant area where manufacturing is done with
raw materials lying everywhere and labors are showing their hard work for
manufacturing the blocks.
Business environment is quite different form what we normally thinks. Everything needs
to be done in a systematic manner and according to the policies defined by the company.

56
Even if an employee need a pen for writing then a pre defined system need to be followed
without that system an employee cannot even get a pen.

Procedure and System followed in Different Functional Areas-

Human Resource Department-
At manufacturing unit
 It simply works as intermediary between employees and between departments
 Managing labours i.e. how much labour needed to perform a task and how they
can be arranged within fixed time.
 Maintaining record of all employees.
 To check whether everything is done as per the labour laws or not.

Human Resource Department-

At head office
 Training and Development of employees.
 Motivating employees
 Compensation management
 Performance appraisal

Marketing Department
 Promotion of products
 Deal with customers
 Making the daily production and dispatch plan according to the requirement.

Production Department
 Make a list of raw material required on daily basis
 Check whether right material is supplied to them and in right quantity
 Manufacture the required blocks at right time with needed specifications

In Human Resource Department

57
What conceptually taught is some of the main functions of HR is to give training,
motivating employees but when we talk about HR in manufacturing unit of Biltech
Building Elements Limited HR is simply working as intermediary department between
employees and between departments and arranging labours for different shifts.

In Marketing Department
What we have taught is that the mass communication medium like Radio, TV, newspaper
are one of the most important marketing tools of promoting the product or we can say “
Jo dikhta hain wo hi bikta hain “ but Biltech Building Elements Limited think other way
round in terms of promotional tactics. They do not use any mass communication medium
for promotion and yet they are at the topmost position in their functional areas.

58
 BIBLIOGRAPHY

BOOKS:
• Kotler Philip and Keller, “Marketing Management”, Twelfth Edition, p-470-498.
• Chabra T. N. and Grover S. K., “Marketing Management”, Fourth Edition, p-
1.160-1.167.

WEBSITES:
• www.wikipedia.com
• www.avanthagroup.com

59
 ANNEXURE

QUESTIONNAIRE

NAME:

AGE: SEX:

DESIGNATION:

PHONE NO.:

1. How marketing strategies are formulated in the company?

2. Which is most focused “p” of marketing mix in your company?

• Product
• Price
• Place
• Promotion

3. What do you think current marketing practice in company effect the sales in:

• Positive direction
• Negative direction
• Can’t say

4. Does the company change its marketing strategies according to change in the
market and industry?

Yes No

5. Earlier company was using selling concept for the products and few years back it
started following marketing concept, which one is better for the performance of
company -

6. How does company position its product in the mind of their clients?

• Attribute positioning
• Benefit positioning
• Application positioning
• Price and quality positioning
60
 • Group positioning

7. Which policy does the company use for pricing of products?

• Demand oriented pricing

• Cost oriented pricing
• Competition oriented pricing
• Value based pricing

8. Whether high price of product act as hindrance in capturing market share?

Yes No

9. Company uses transporters for distribution of products, which factor is more

focused while selecting a transporter.

10. Which tool is used for promotion of the products?

• Advertising
• Public relations
• Promotion technique
• Personal selling

11. Biltech manufactures environmental friendly products, does the company use
the concept of green marketing

Yes No

12. Do you think marketing strategies contribute positively in the growth and
profitability of the company?

Yes No

THANK YOU FOR YOUR COOPERATION

SIGNATURE:

61
62