CHAPTER-1

COMPANY PROFILE AND FUNCTIONAL ANALYSIS

BILTECH BUILDING ELEMENTS LIMITED - A MULTINATIONAL COMPANY.

HEAD OFFICE:

THAPAR HOUSE, 124, JANPATH, NEW DELHI – 110001PH: 011 – 41699283, 41699370EMAIL: 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

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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.

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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

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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.

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ORGANISATION STRUCTURE OF THE COMPANY.

MARKET SHARE & POSITION OF THE COMPANY IN THE INDUSTRYBiltech 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.

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WORKERS

SUPERVISOR

EXECUTIVES EXECUTIVESEXECUTIVESEXECUTIVES

DY. MANAGERDY. MANAGER DY. MANAGER

MANAGERMANAGER MANAGER MANAGER

OFFICER

D.G.M(Finance)

D.G.M(Marketing)

G.M(Plant)

D.G.M(H.R)

DY. MANAGER

COO

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.

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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

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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

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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

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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

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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

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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-MIX1. 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.

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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.

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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.

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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.

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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.

CHAPTER – III

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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

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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

METHOD OF COLLECTING DATA

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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

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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.

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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.

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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.

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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.

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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

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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.

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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.

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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.

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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

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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

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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 INNOVATIONSame technology for manufacturing the product is being used by the company from the

commencement till now.

32

PRODUCT LIFE CYCLEAs 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

Region

Mode Of

DistributionPalwal Unit Haryana Northern And

Eastern Region

Direct

Distribution

Bhigwan Unit

Near Pune Western

And Southern

Region

Through

Dealers.

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.

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Even when the price is set for the product it can further be negotiated by customers

depending on the quantity ordered.

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 CYCLEAs 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 INNOVATIONSame 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 RESPONDENTSPRODUCT 7PRICE -PLACE -PROMOTION -TOTAL 7

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 RESPONDENTSPOSITIVE 7

NEGATIVE -TOTAL 7

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

38

EFFECT OF CURRENT MARKETING PRACTICE ON SALES

7

0012345678

POSITIVE NEGATIVE

RESPONSE

NO

. OF

RES

PON

DN

TS

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

Yes No

REEPONSE NO. OF RESPONDENTSYES 7NO -

TOTAL 7

Company change its marketing strategies according to change in various factors of

market and industry.

39

CHANGE IN MARKETING STRAEGIES ACCORDING TO CHANGE IN MARKET

AND INDUSTRY

100%

0%

YES

NO

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

40

POSITIONING STRATEGY

43%

57%

0%0%0%

ATTRIBUTEPOSITIONING

BENEFITPOSITIONING

APPLICATIONPOSITIONING

PRICE ANDQUALITYPOSITIONINGGROUPPOSITIONING

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 5COMPETITION ORIENTED PRICING -VALUE BASED PRICING 2TOTAL 7

As per employees of marketing Department Company uses cost oriented pricing as well

as value based pricing to charge value of product.

41

PRICING STRATEGIES

0%

71%0%

29%

DEMANDORIENTEDPRICING

COST ORIENTEDPRICING

COMPETITIONORIENTEDPRICING

VALUE BASEDPRICING

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

Yes No

REEPONSE NO. OF RESPONDENTSYES 5NO 2

TOTAL 7

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.

42

PRICE ACT AS A HINDRANCE OR NOT

71%

29%

0%10%20%30%40%50%60%70%80%

YES NO

RESPONSE

NO

. OF

RES

PON

DEN

TS

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

Advertising Public relations Promotion technique Personal selling

REEPONSE NO. OF RESPONDENTSADVERTISING -

PUBLIC RELATIONS -PROMOTION TECHNIQUE

-

PERSONAL SELLING 7TOTAL 7

Company uses personal selling to promote its products

43

TOOL OF PROMOTION0%

0%

0%

100%

ADVERTISING

PUBLICRELATIONS

PROMOTIONTECHNIQUE

PERSONALSELLING

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

Yes No

REEPONSE NO. OF RESPONDENTSYES 7NO -

TOTAL 7

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.

44

USE OF CONCEPT- GREEN MARKETING

100%

0%

YESNO

Q: Do you think marketing strategies contribute positively in the growth and profitability of the company?

Yes No

REEPONSE NO. OF RESPONDENTSYES 7NO -

TOTAL 7

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”

45

7

00

2

4

6

8

NO. OF RESPONDE

NTS

YES NORESPONSES

CONTRIBUTION OF MARKETING STRATEGIES IN PROFITABILITY AND

GROWTH

MARKET SHARE OF THE COMPANY

The above pie chart shows the market share of biltech. Till date, biltech has captured

40% of the market share of the whole industry.

46

RELATIONSHIP BETWEENSALES AND ADVERTISING AND SELLING EXPENSES

(Rs. In Lakhs)YEAR SALES ADVERTISING

AND SELLING EXPENSES

2006-07 1697.29 97.372007-08 2395.14 145.352008-09 4175.14 236.272009-10 4865.21 232.03

MEAN OF SALE IN LAST 4 YEARS 3283.20MEAN OF ADVERTISING AND SELLING EXPENSES IN LAST 4

YEARS

177.76

COEFFICIENT OF CORELATION BETWEEN SALES AND

ADVERTISING EXPENSES

0.93

47

RELATIONSHIP BETWEEN SALES AND ADVERTISING AND SELLING

EXPENSES

0100020003000400050006000

2006-07

2007-08

2008-09

2009-10

YEAR

AMO

UNT

IN L

AKHS

SALES

ADVERTISINGAND SELLINGEXPENSES

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.

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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

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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

50

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.

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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.

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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.

53

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.

54

LEARNING SUMMARYI 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.

55

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

56

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.

57

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

58

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

59

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:

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