PRESENTATION

ON
MARKET POTENTIAL OF
“LOW VOLTAGE SWITCH
GEARS”
IN
RAJASTHAN
[APRIL 2004-JULY 2004]

Facilitated By
Mr.. S. Sanyal Presented By.
Japneet Singh
Mr.M.P.Jindal
Lokesh Doraya
Mr.Vishal Nerurkar
Manish Patidar
1
Mr. Vikas Malhi
 WHAT ARE LVSWGRS??

DISTRIBUTION PROTECTION SWITCHING

*ACB *MCCB
*SFU *LOAD BREAK SWITCHES

*CONTACTORS *THERMALOVER LOAD RELAYS

*CONTROL RELAYS *SOFT STARTERS
*MINI COTACTORS *STARTERS

*MCB *RCCB
*DISTRIBUTION BOARDS *ISOLATOR 2
 COMPANY PROFILE

•24th Dec 1949- Hindustan Electric Company Limited Was Incorporated

•1965- Name Changed To Hindustan Brown Boveri Limited

•1989- Name Changed To Asea Brown Boveri Limited Due To

Amalgamation of Asea Limited With HBB

•2003- Name Changed To ABB Limited

•1994- ABB Started LVSWGRS Manufacturing in INDIA at Bangalore

•Core Business Area ---

•Power Technologies

•Automation Technologies

•Building Systems 3
4
 PROJECT OBJECTIVE

• To forecast the sales revenue of ABB in Rajasthan for “Low

voltage switch gears” for next 3 years.

• To suggest a marketing strategy to ABB for increasing revenue

of LVSWGRS from 34 Lakhs to 3 Crores within next 3 years.

5
 SUPPLY CHAIN- LVSWGR

PANEL
BUILDER
C
O
D N
E S
SUPPLIER A OEM INDUSTRY
U
L L
E T
R A
N
T

6
 SURVEY METHODOLGY

•Designing a tool for conducting the survey:

•Data Collection:
Phase I: Jaipur, Jodhpur, Udaipur, Kota.
Phase II: Chittorgarh, Bhilwara and Alwar
•Questionnaire for consumer
•Questionnaire for dealers
•Final analysis:
•Suggestions:

7
 RAJASTHAN MARKET SCENARIO

•Total LVSWGR Market 27.82 Cr.

•No. of Delaers covered 34

•No. Of customers visited 100

•Average market growth 18%

8
 RAJASTHAN MARKET AREA-WISE BREAKUP

Crores PRESENT MARKET GROWTH

14 28%

25%
12 11.82 24%

20%
10 20%
19%

8 16%
15%
12%
10%
6 12%
4.75
10%

4 8%
3.25
3 3

2 4%
1 1

0 0%
JAIPUR UDAIPUR KOTA BHILW ARA JODHPUR CHITTORR ALWAR

9
 PRODUCT SEGMENTWISE BREAKUP

BREAKERS
LPD
20%
17%

Whole Rajasthan SWITCHES

CONTROL 24%
GEARS
39%

BREAKERS
LPD 39%
28%
ABB
CONTROL
GEARS
SWITCHES
25%
8%

10
 L&T Schneider

LPD
BREAKERS 9%
LPD BREAKERS
17% 21%
31%

CONTROL
CONTROL GEARS
GEARS 46% SWITCHES
SWITCHES
32% 14%
30%

Siemens BCH

LPD
BREAKERS
10%
20%

CONTROL SWITCHES
20% CONTROL
GEARS
GEARS
50%
100%
11
 MARKET SHARE OF MAJOR PLAYERS

1200
Lakhs
1058.25
1100
1000
900
800
630.5
700
600
500
340
400
221.25
300
133.75
200 110.5 99.7 95
34 59
100
0
L&T SCHNEIDER BCH SEIMENS MDS GE HAVELLS JYOTI ABB OTHERS

12
RANKING GIVEN BY CUSTOMERS TO ATTRIBUTES:

4.5
4.45
4.45
4.4
4.4
4.35 4.31
4.3 4.27
4.25
4.2
4.15
PRODUCT SERVICE PACKAGING BRAND

13
 3.6
3.8
4.2
4.4
4.6
4.8

4
5
RELIABILITY 4.91

SAFETY
4.77

FEATURES
4.54

TECHNICAL
4.2

DOCUMENTATION
PRODUCT ATTRIBUTES

PRICE
4.17

COMPLETE

RANGE
4.13

14
 SERVICE ATTRIBUTES

4.8 4.65
4.55 4.5
4.6
4.4
4.2
4 3.9
3.8
3.6
3.4
RESPONSE TIME REPLACEMENTS STOCK AVAILBILITY INSTALLATION

GUIDANCE
15
 BRAND ATTRIBUTES

4.6 4.48
4.5
4.4
4.3
4.2
4.06
4.1
4
3.9
3.8
BRAND NAME DEALER REPUTATION
16
 PACKAGING ATTRIBUTES

4.38 4.36
4.36
4.34
4.32
4.3
4.28 4.26
4.26
4.24
4.22
4.2
INSTALLATION LEAFLET SEALS & CERTIFICATIONS
17
 CUSTOMERS PERCEPTION ABOUT ABB’s ATTRIBUTES

ABB AVG.

4.5 4.5
4 4
3.5 3.5
3 3
2.5 2.5
2 2
1.5 1.5
1 1
0.5 0.5
0 0

PRICE
QUALITY

TRAINING
FINISHING

INSTRUCTION
TECHNOLOGY
MAINTENANCE

AVALIABILITY
DOWNTIME

LEAFLET

18
 SUPPLIERS POLICIES
SUPPLIER SCHNEIDE SEIMEN BCH L&T ABB
R S

REVENUE 630.5 221.25 340 1058 34LAKH

LAKH LAKH LAKH LAKH
DEALERS 15 7 11 7 10
SALES 6 2 4 5 1
PERSON
SERVICE 2 0 0 2 0
CENTER
CREDIT 60 30 70 45 45
PERIOD IN
DAYS
DISCOUNT 20% to 38% 15 to `20% to 15 to 20% to
OFFERED 25% 30% 45% 30%
PROFIT 3% 2.5% 3% 3% to 4% to
MARGIN 4% 5%
DELIVRY 10 to 20 20 to 25 10 3 to 4 20 to 30
PERIOD IN
DAYS
19
 INCENTIVES & PROMOTION
SUPPLIER SCHNEIDER SEIMENS BCH L&T ABB
INCENTIVE Cash Cash Cash Quantity Cash
Discount, Discount, Discount, Discount Discou
Turnover Turnover Turnover nt,
Discount (2%) Discount, Discount Turnov
Product Focus (3%) er
Discount Discou
nt
PROMOTIO Seminar, Seminar, Seminar, In plant
N AdvTs, Gifts Direct Gifts Seminars, --------
Mailing, Seminars, --
Gifts, Gifts
Product Direct
Demonstratio Mailers
n **
CONTRIBUT Advt. and Only in Gifts Lunch
ION Gifts 50% newspaper 100% and --------
Advt. 50% Gifts50% ---

** L&T provide 1% of turnover, for advertising expenses

20
 ANALYSIS

•DRIVERS INDEX GRAPH

•STRENGTH WEAKNESS OF DIFFRENT PLAYERS

•SERVICE QUALITY GAP ANALYSIS

•ACTION PLAN

21
 DRIVERS INDEX GRAPH

L&T S IE M E N S ABB BCH S C H N E ID E R

6
5
4
3
2
1
0
Q U A L IT Y PR IC E A W A R EN ES S A V A IL A B IL IT Y CRM

22
 STRENGTH WEAKNESS
SCHNEIDER

STRENGTHS

•AGGRESSIVE PROMOTION
•BRAND PUSH
•EXCELLENT AFTER SALES SERVICE
•AVAILABILITY
•STRONG MARKETING TEAM
•TECHNOLOGICALLY SOUND
•PRICING STRATEGY
• STRATEGIC ALIANCES.

WEAKNESS

•DEALERS DILEMMA 23
 STRENGTH WEAKNESS
L&T

STRENGTHS

•AGGRESSIVE PROMOTION.
•BRAND PUSH.
•EXCELLENT AFTER SALES SERVICE.
•AVAILABILITY.
•PRICING STRATEGY.
•QUALITY.
•AWARENESS.

WEAKNESS

•DUPLICACY

24
 STRENGTH WEAKNESS
ABB

STRENGTHS

•QUALITY.
•TECHNOLOGY.
•COMLETE RANGE

WEAKNESS

• LOW AWARENESS
• PRICING
• DOUBTFUL BRAND POSITIONING
• DELIVERY
• WEAK MARKETING TEAM
• POOR AFTER SALES SERVICE
• NO BRAND PROMOTION SCHEMES 25
 STRENGTH WEAKNESS
SEIMENS

STRENGTHS

•GOOD BRAND EQUITY

•GOOD BRAND AWARENESS
•GOOD COMMUNICATION WITH CUSTOMERS
THROUGH DIRECT MAILERS AND SEMINARS
•STRATIGIC ALLIANCES

WEAKNESS

•POOR DEALER NETWORK

•POOR AFTER SALES SERVICE

26
 STRENGTH WEAKNESS
BCH

STRENGTHS

• GOOD DEALER NETWORK

• FAST DELIVERY.
• GOOD AFTER SALES SERVICE
• SPECIFED INDUSTRY DEMNAD.
• COMPETITIVE PRODUCTS

WEAKNESS

• LIMITED PRODUCT RANGE.

• REACH IN LIMITED INDUSTRIES
• POOR QUALITY PRODUCTS

27
 Service Quality Gap Model
GAP1: Between what customer expects from the service and what the
management perceives of customers' expectation.

GAP 2: Between, management perceptions of consumer expectations

and translation of perception into service- quality specification

GAP 3: Between, translation of perceptions into service-quality

specifications and service delivered to consumer.

GAP 4: Between service delivered and the external communication to

the consumer.

GAP 5: Between perceived service and the expected service.

28
Word of Mouth
Personal Needs Past Experience
Communication

Expected Service

GAP 5
GAP 1 No Gap due to
continuous
Availability competition
Quick response
After sales service
Quick delivery Perceived service
Competitive pricing
Consumer

Marketer

Service Delivery External

Communications
to consumers

GAP 3 GAP 4
Generation of customized Prompt delivery to the
products consumer.

Translation of
Perceptions into
service-quality
specifications
GAP 2
Technical and Financial
feasibility

Management
Perception Of 29
Consumer
Expectations
 AIM 3 CRORES

PLACE CURRENT MARKET ABB ABB ABB

SHARE SHARE 2004 2005 2006

JAIPUR 3.70 43% 30.10 62.35 129

UDAIPUR 12 17% 11.9 24.65 51

KOTA 8.30 11% 7.7 15.95 33

BHILWARA 8 12% 8.4 17.4 36

JODHPUR 2 10% 7 14.5 30

CHITTORR ** 3.5% 2.45 5.075 10.5

ALWAR * 3.5% 2.45 5.075 10.5

TOTAL 34 100% 70 145 300

All figures in Lakhs. 30

** Chittor is procuring from Udaipur. * Alwar is procuring from Delhi.
 AIM 5 CRORES

PLACE CURRENT MARKET ABB 2004 ABB ABB

SHARE SHARE 2005 2006

JAIPUR 3.70 43% 35.80 87.70 215

UDAIPUR 12 17% 14.10 34.70 85
KOTA 8.30 11% 9.15 22.40 55
BHILWARA 8 12% 10 24.50 60
JODHPUR 2 10% 8.35 20.5 50
CHITTORR ** 3.5% 2.95 7.10 17.5
ALWAR * 3.5% 2.95 7.10 17.5
TOTAL 34 100% 83.30 204.08 500

All figures in Lakhs. ** Chittor is procuring from Udaipur. * Alwar is procuring from Delhi.
31
 SUGGESTIONS:

• APPOINT SALES PERSONS

• ORGANISE SEMINARS
• SEND DIRECT MAILERS
• OPEN A SERVICE CENTRE
• PRODUCT AVAILABILITY AND PROMPT
PRODUCT DELIVERY
• SUPPORT THE DEALER
• DEALER SELECTION PARAMETERS
• SUPPLY CHAIN COMMUNICATION
• ADVERTISEMENT
• CUSTOMISATION
• EMBOSSED SPECIFICATION SEAL
• TARGETTING ALLIANCES
• SPARES’ STOCK
• CRM FEEDBACK FORM
32
 EXPENSE DETAILS
 
REGION/ Jaipur Jodhpur Udaipur Chittor Bhilwara Kota Alwar Rajasthan
HEADS garh

SALARY   180,000     180,000     3,60,000

               
SEMINARS 70,000 70,000 70,000 70,000 70,000 70,000 4,20,000
a) Common  
20,000 20,000 10,000 50,000 30,000 1,30,000
b) In-House

                5,50,000

DIRECT               10,000
MAILERS

ADV.--               20,000
*JOURNLS

Total 90,000 270,000 80,000 50,000 280,000 70,000 70,000 9,40,000

 
* Journals—Industrial Product Finder, Electrical India
33
 SUSTAINABILITY PRESCRIPTION

• Sync with Market Growth

• Regular Market Promotion

•Confidence building measures (C BM) with dealers

•Common payroll employee

• Stalling Threat From New Entrants.

•Financial backing of the entrant.

•Technology.
•Marketing efforts deployed.
•Brand image.
34
 AREAWISE INFORMATION

ALWAR

•Total Market As Per Dealers Is 75 Lakh

•While Total Market Perceived by Dealers 1 Crore.

•The Region Is Expected to Grow With 10% Growth Rate

•Customers Covered Are Using 145.85 Lakh LVSWGR Products

•No. Of Customers Covered--17

•No. Of Dealers Covered--2

35
 SUPPLIERS POLICIES
SUPPLIER SCHNEIDER SIEMENS MDS L&T

REVENUE 12.5 LAKH 2.5 LAKH 3.75 LAKH 50 LAKH

DEALERS 1 1 1
SALES - - - -
PERSON
SERVICE - - - -
CENTER
CREDIT 30 30 15 60
PERIOD IN
DAYS
DISCOUNT Not Disclosed Not Disclosed Not Disclosed 20%
OFFERED
PROFIT Not Disclosed Not Disclosed Not Disclosed 5%
MARGIN
DELIVERY 7 7 7 3
PERIOD IN
DAYS
FREQUENCY YEARLY YEARLY 15 DAYS
OF VISIT
RESPONSE OK OK OK SOON
TIME TO
COMPLAINTS 36
 SUGGESTIONS

 Company should appoint a Dealer in this region. And do their business along with
the dealers.
 Product availability should be good.
 ABB should organise technical seminars and after seminar, company Engineer
should be in touch with these potential customers.
 More emphasis must be given to the new projects. As replacement is one to one.
 Reach to Influencers' must be increased by regular visit by company Engineers
and dealers.
 Visits must be there even when there is no requirement to brief up the industry
engineers.
 Awareness about the products must be increased.

37
 CHITTORGARH

•Total market as per dealers is 80 LAKH.

•While total market perceived by dealers 1 crore.

•The region is expected to grow with 15% growth rate.

•Customers Covered Are Using 84.2 Lakh LVSWGR Products

•No. Of Customers Covered--7

•No. Of Dealers Covered--1

38
 SUPPLIERS POLICIES

SUPPLIER L&T HAVELLS

REVENUE 64 LAKH 16 LAKH

DEALERS 1 1
SALES PERSON --- ----
SERVICE CENTER --- ---
CREDIT PERIOD IN DAYS CASH CASH
DISCOUNT OFFERED UP TO 35% UP TO 30%
PROFIT MARGIN 5% 5%
DELIVERY PERIOD IN 7 TO 10 AS PER
DAYS REQUIREMENT
FREQUENCY OF VISIT 15 DAYS MONTHLY
RESPONSE TIME TO IMMEDIATE OK
COMPLAINTS
39
 SUGGESTIONS

 Regular contact with customer is must. It can be done through-

o Seminars.
o Direct mailers.
o Plant visit.
 Company Should organise seminar to
o Brief about product range.
o Product’s technical details.
o To highlight special features of ABB product as compared to other major
players.
 Company should appoint a service engineer in this reason to promptly serve the
customer needs.
 After sales service should be very good.
 Co. should appoint a dealer at Chittor Garh .
40
 BHILWARA

•Total market as per dealers is 299 LAKH.

•While total market perceived by dealers 333 LAKH

•The region is expected to grow with 25% growth rate.

•Customers Covered Are Using 84.2 Lakh LVSWGR Products

•No. Of Customers Covered--17

•No. Of Dealers Covered--5

41
 SUPPLIERS POLICIES
SUPPLIER SCHNEIDER SIEMENS MDS L&T G.E ABB

REVENUE 26 LAKH 40LAKH 70 LAKH 100 15 8

LAKH LAKH LAKH
DEALERS 1 1 1 1 1 1
SALES -- --- --- --- --- ---
PERSON
SERVICE -- -- -- --- --- ---
CENTER
CREDIT CASH CASH CASH CASH CASH 45
PERIOD IN
DAYS
DISCOUNT 32% 32% 37% 45% * 25%
OFFERED
PROFIT * * * 5% * 5%
MARGIN
DELIVERY 10 TO 20 20 TO 30 15 3 TO 4 20 45
PERIOD IN
DAYS
FREQUENCY MONTHLY MONTHL MONTHL 15 DAYS MONTH MONT
OF VISIT Y Y LY HLY
RESPONSE IMMEDIATE IMMEDIA IMMEDI IMMEDIA OK OK
TIME TO TE ATE TE
42
COMPLAINTS
 SUGGESTIONS

 Company should provide full support to dealer in terms of discount, delivery and after
sales service. The disputes with dealers must be sorted out and commitments made by
company persons should be fulfilled.
 Product availability should be good.
 Company should organise technical seminars and after seminar, company Engineer
should be in touch with these potential customers.
 Follow up should be good.
 Problem in Contactors and Relays, technical staff must look after this.
 Reach to influencers must be increased by regular visit by company Engineers and
dealers.
 After sales service and replacement should be prompt .

43