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COURSE TITLE BUSINESS TO BUSINESS MARKETING

TOPIC - New Product Development

INSTITUTE NAME INSTITUTE OF MANAGEMENT &
INFORMATION SCIENCE
TERM IV
BATCH 2010-12
SUPERVISOR Dr.Saji KB Nair

PREPARED BY:- Email:-
Ignasius Rozario (10DM001) ignasiusrozario@gmail.com
Shubhomay Das (10DM011) subho_59@yahoo.co.in
Abhijeet Guha (10DM013) abhijeet.guha@gmail.com
Vivek Kumar Dutta (10DM014) duttavivek27@gmail.com
Sunu V Sam (10DM020) sunusam1@gmail.com
Srirup Goswami ( 10DM026) srirupgo10@gmail.com
Tushar Choudhury (10DM027) tushar_chaudhury@hotmail.com
Ranatosh Saha (10DM029) ranatosh@gmail.com
Sourav Dutta (10DM037) dutta.sourav014@gmail.com
Anirban Bose (10DM054) anirban.calcutta@gmail.com


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INDEX
TITLE PAGE NO
OVERVIEW 3
SECTION 1:
Business Analysis
4
COMPANY PROFILE 4-5
PRODUCT DESCRIPTION 5-6
MARKETING OBJECTIVES 6
FUND FLOW STATEMENT 7
STRENGTH & WEAKNESS 8
PESTEL ANALYSIS 8-9
COMPETITOR ANALYSIS 9-10
SECTION 2:-
Technology Acquisition Strategy:-

10
Generic Marketing Strategies:-

10-14
Section 3:-
The marketing mix design:-

15-17
Creating the brand: Carrier AC
X-Fresho Service:-


18-19
PRICING POLICY 19
REFERENCES & WEBLIOGRAPHY
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OVERVIEW:-
The world is in its ever changing spree. Products and services are no more
restricted to the authority of one company. Globalization and the eventual impacts
have made todays consumer more choosy and commanding. In such a situation it
has become inevitable for companies to constantly upgrade themselves with the
change of scenario so as to retain and rope in customers in order to show the
reflection in their margins. Competition is the mother of new product development.
Thus, in order to make ourselves more competitive and chiseled in the market we
(carrier) have come up with some new services which will make us stand apart in
the market and augment our business. The description of our new services has been
briefly mentioned later on.
We have considered all the possible pros and cons so as to make it happen in
reality. We believe that our customers will like our service and will benefit from
the same.











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SECTION 1: Business Analysis
Company Name : Carrier Air condition and Refrigeration Ltd.
New Product Name: X-FRESHO SERVICE
Product Type: Service Pack
Amount to be raised: Rs. 106 crores.This amount will be raised from various
sources as follows:
1. Equity.
2. Debt (Bank loans and debentures).
3. Preference shares
Project Duration: 5 years
Company Profile:-
Overview Of Carrier AC:-
Founded in 1915 by Dr. Willis H. Carrier, the inventor of modern air
conditioning. Headquartered in Farmington, USA. Carrier is the worlds largest
provider of Air-conditioning, heating, and Commercial Refrigeration Systems
(HVACR). Carrier is a part of United Technologies Corporation, USA. With 2008
revenue of $58.7 billion, UTC is a conglomerate operating in the high technology
space. The UTC group operates in aerospace & Building systems with companies
like Carrier (air-conditioning), Otis (Elevators), Pratt & Whitney (Jet- engines),
Sikorsky (Helicopters), UTC Fire & Security (Chubb & Kidde), and Hamilton
Sundstrand and UTC power.
Carrier Profile:-
Carrier has developed into being the worlds largest provider of air
conditioning, heating and commercial refrigeration systems (HVACR) with
operations in more than 170 countries, employing approximately 41,000 people
worldwide and revenues of $14.9 billion in 2008.

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Over the decades, Carrier name has become synonymous with reliability,
innovation, commitment, superior technology, cutting-edge manufacturing and
world-class performance. It also has one of the most prestigious installation bases
in the world.
Carrier started its operations in India with setting up of companies namely
Carrier Aircon Limited in 1986, and Carrier Refrigeration Private Limited in 1992.
Carrier brought to the Indian consumer, access to advanced technology and air-
conditioning and refrigeration products from the worldwide product portfolio of
Carrier. In October, 2006, Carrier Aircon merged with Carrier Refrigeration and
the name of the merged entity was changed to Carrier Air-conditioning &
Refrigeration Limited (Carrier India). Carrier India's manufacturing facility at
Gurgaon produces air conditioning equipments including Window Room Air
conditioners, Hi- Wall Splits, Slimpak Splits, Cassette Splits, Ducted Splits and
Chillers. It also manufactures Refrigeration Equipments including Cold chain
equipment comprising of Cold Rooms, Truck Refrigeration & Bus Air-
conditioning system, Freezers, Visi Coolers & Super Market Products.
Product Description:-
Carrier's refrigeration and food service equipment play a vital role in the
protection and preservation of our global food supply. Serving the beverage, food
service and food retail industries, our refrigeration solutions are built on next-
generation technologies and a diligent focus on safeguarding food and beverages
for consumption. Our food service equipment covers a vast array of applications
from innovative cooking and heating solutions to frozen dessert dispensers. We
offer sanitation products that ensure clean and hygienic food service and retail
environments. We take pride in designing and manufacturing state-of-the-art
display cases that enhance food presentation and maximize product sell-through.
Whether you operate a restaurant, hotel, convenience store or supermarket, Carrier
has a range of premium refrigeration and food service equipment solutions to meet
your diverse needs.
Customers look at the value of their assets over the entire lifecycle of the
store. We have developed a comprehensive portfolio of services to protect and
enhance their investment, supporting food safety, regulatory compliance, energy
efficiency, and sustainability. The ranges of services are clubbed in as one service
pack called X-Fresho Service.


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The services are discussed briefly hereunder:

1. 24/7 Response provides customers with expert monitoring and proactive
management of alarms. It is offered as an option to Carrier maintenance
agreements and can help customers save on labor and increase sales
efficiency by reducing the impact of breakdowns and emergency visits.
2. Maintenance agreements offer three comprehensive maintenance packages
adapted to customer needs: Advanced, Enhanced, and Elite, providing
solutions ranging from classical maintenance and regulatory inspections to
the most advanced preventive and corrective maintenance programs,
including e*Service solutions and fast reaction to breakdowns.
3. Store modernization enhances the value of existing refrigeration systems,
and Carrier offers a range of solutions that include the latest refrigeration
technology. Carrier improves existing stores by upgrading features in areas
such as merchandizing and lighting, heat exchangers, compressor racks, fan
motors, sensors and controls, and refrigerant management. Upgrades deliver
customer value through improved merchandizing, energy efficiency and
store labor productivity.

MARKETING OBJECTIVES:-

1. To attain ZERO customer complaints about our products refrigerator.
2. To make our products more durable with increased efficiency.
3. To position our services as a value addition to our range of products.
4. To constantly improve on our services with innovation.
5. To make our services as our unique selling proposition for our products.
6. To reach out to every prospective client.
7. To create market dominance in this kind of servicing in the market.
8. To track all our existing buyers and provide the services.
9. To increase companies Goodwill value with our new services.
10. To keep up to our promises.
11. Sales volume based
12. Sales turnover based




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FUND FLOW STATEMENT
PARTICULARS
AMOUNT
PER UNIT
AMOUNT
(IN CR.)
TOTAL
AMOUNT
(IN CR.)
NET TOTAL
1. Cost of the project
a.Infrastructure development

50
b.Research and Development

10
c.Technology transfer cost

1.74
Total cost of the project (A)

61.74
2. New Product Development
a.24/7 customer care
i. Tollfree number rent 0.1
ii. Telephone cost 500 0.0036
iii. Computer cost 40,000 0.29
iv. Salary of the customer care 12000 0.12
v. lighiting and overhead 0.03
vi. Cost of furniture 0.08
vii. Internet charges 500 0.0036
viii. Stationaries expences 0.03
ix. Sundyr expences 0.02
Total customer care cost (x) 0.6772
b. Maintenance Agreement
i. Salary of the servicemen 15000 0.72
ii. Travelling cost of servicemen 4000 0.19
iii. T&D cost 0.5
iv. Inspection cost 0.02
Total maintenance cost (y) 1.43
c. Store Modernization
i. Heat Exchanger 200 4
ii. Fan Motor 100 2
iii. Sensor and control 150 3
iv. Compressor Racks 100 2
v. Refrigerant management cost 250 5
Total store modernization cost (z) 16
Total new product development cost (B) 18.1072
3. Marketing Cost
a. Selling and General Adminstrative
cost
800 16
b. promotion cost 500 10
Total marketing cost ( c ) 26
Total cost ( A + B + C ) 105.8472

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How does the service pack fit Carrier?
Carrier is a company founded on a history of innovation. Beginning with Willis
Carriers pivotal invention of the first mechanical air conditioning system, Carrier
has consistently introduced new technologies and industry "firsts" that have forever
changed the way we live, work and play. From revolutionary improvements to
health care, manufacturing processes, research, building capacities and food
preservation to art and historical conservation, general productivity, indoor
comfort, and much more, Carrier is committed to creating new possibilities that
enhance peoples comfort and improve their lives. Carrier is the leading
organization in service orientation in India. So for sustainable development,
Carrier is coming up with the above mentioned range of services to ensure
sustenance as well as increase market share in retail industries.
STRENGTH:-
1. First to develop exclusive dealer network.
2. It has a strong setup, Willis Carrier Engineering Center, to provide technological
support to develop new products and upgrade existing ones.
WEAKNESS:-
1. Poor IMC techniques that leads to poor penetration among the masses.

PESTEL analysis:-
Political factors. These refer to government policy such as the degree of
intervention in the economy. Carrier goods and services do a government
want to provide? Political decisions made an impact on Carrier AC
infrastructure.
Economic factors:- Interest rates, taxation changes, economic growth,
inflation and exchange rates. As we see economic change can have a major
impact on a firm's behavior.


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Social factors:-. Changes in social trends made an impact on the demand for
carrier products and the availability of parts. The ageing population also has
impact on demand.
Technological factors: new technologies create new products and new
processes. Technologies reduce costs, improve quality and lead to
innovation. These developments can benefit consumers as well as the
organizations providing the products.
Environmental factors: environmental factors include the weather and
climate change. Changes in temperature can impact on the service. With
major climate changes occurring due to global warming and with greater
environmental awareness this external factor is becoming a significant issue
for firms to consider.
Legal factors: these are related to the legal environment in which Carrier AC
operate. Retail firms have legal rules to adopt any product. Carrier AC
maintains all the rules for betterment.
Competitor analysis:-
The Challenge:-
Where to innovate
How to spread out a structured innovation culture
How to build a long-term effective process to get new ideas happening

Development and Solution:-

Together with the senior management team at Carrier, MCE developed a Customer
Specific Solution based on the business reality of Carrier. The purpose of the
interactive workshop was to:
develop a common understanding of innovation
explore innovation roads and define the innovation focus
integrate an innovation process in the business strategy and align it with existing
processes and strategy

Results and Benefits:-

The workshop was a success, with almost all participants feeling it was relevant to
their organizations needs. It provided a set of tools and techniques to identify

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opportunities for innovation, and provided a common understanding to create new
innovation processes within the company.
For innovation to pay off, it has to create value for the customer. Just as R&D
teams need a better understanding of the customers, marketing and commercial
teams should be better informed about technology and business issues. Structurally
combining customer insight and market foresight sets the foundation for successful
Innovation.


SECTION 2:-
Technology Acquisition Strategy:-
As we are launching a service not a materialistic product so there is no technology
acquisition strategy or any licensing fees were included.
Generic Marketing Strategies:-
Analysis of the Questionnaire:
1.

This graph states that how much punctual the staffs are hence a clear idea can be
retrieved from the graph regarding the staffs. Hence after seeing the graph it is
34%
50%
10%
3%
3%
Staff's Punctuality
EXCELLENT
GOOD
AVERAGE
FAIR
POOR

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clearly understood that 50% of the employees are very much punctual which helps
us in delivering a service to the customers.
2.

From this graph it is also evident that the staffs way of greeting is also excellent.
3.

The staffs are even very friendly in their nature towards the customer which can
be clearly understood from the graph.
40%
23%
17%
13%
7%
Staff's way of greeting you.
EXCELLENT
GOOD
AVERAGE
FAIR
POOR
37%
27%
30%
3%
3%
Staff's friendly Attitude
EXCELLENT
GOOD
AVERAGE
FAIR
POOR

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4.

This graph shows that the staffs are very much knowledgeable as maximum
queries of the customers are answered by the staffs.
5.

The staffs are even very well aware of the product or service because 47% of the
customers say that they are happy with the staffs product knowledge.

30%
40%
17%
6%
7%
Staff's answer to your queries
EXCELLENT
GOOD
AVERAGE
FAIR
POOR
47%
30%
17%
3%
3%
Staff's Product/Service Knowledge
EXCELLENT
GOOD
AVERAGE
FAIR
POOR

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6.

40% of the customers say that the staffs provided them with proper suggestions.
7.

50% of the customers say that the staffs were very much courteous in their
approach and hence they are very happy with the staffs.


34%
40%
10%
13%
3%
Quality of suggestions provided by
staff
EXCELLENT
GOOD
AVERAGE
FAIR
POOR
50%
33%
7%
3%
7%
Staff's Courteousness/Soft Skills
EXCELLENT
GOOD
AVERAGE
FAIR
POOR

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8.

44% of the customers have said well about our product and hence they are happy
with our product.
9.

43% of the customers are happy with our customer service and very much satisfied
with it.

40%
44%
10%
3% 3%
Please rate your level of your
satisfaction with our
services.
EXCELLENT
GOOD
AVERAGE
FAIR
POOR
43%
37%
7%
3%
10%
Overall, how would you rate our
customer service?
EXCELLENT
GOOD
AVERAGE
FAIR
POOR

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Section 3:-
The marketing mix design:-
Technology problems:-

1. Management of email
2. Making sure our IP does not leave when our employees do
3. Staying up to date with what solutions are available
4. Lack of financial resources. Technology budgets are no longer increasing.
Companies are having to make do with their current technology, even when
asked to expand services and increase their value proposition.
5. Lack of technical expertise. Technical Support departments are running
leaner than ever. Any attempt to adopt new technology or service models
requires external resources to implement.
Our Company is planning for a multi-tiered technical support system. The number
of levels a business uses to organize their technical support group is dependent on
a business need, want, or desire as it revolves around their ability to sufficiently
serve their customers or users. The reason for providing a multi-tiered support
system instead of one general support group is to provide the best possible service
in the most efficient possible manner. Success of the organizational structure is
dependent on the technicians understanding of their level of responsibility and
commitments, their customer response time commitments, and when to
appropriately escalate an issue and to which level.A common support structure
revolves around a three-tiered technical support system.

Tier/Level 1(T1/L1):-

This is the initial support level responsible for basic customer issues. It is
synonymous with first-line support, level 1 support, front-end support, support line
1, and various other headings denoting basic level technical support functions. The
first job of a Tier I specialist is to gather the customers information and to
determine the customers issue by analyzing the symptoms and figuring out the
underlying problem. When analyzing the symptoms, it is important for
the technician to identify what the customer is trying to accomplish so that time is

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not wasted on attempting to solve a symptom instead of a problem. Once
identification of the underlying problem is established, the specialist can begin
sorting through the possible solutions available. Technical support specialists in
this group typically handle straightforward and simple problems while possibly
using some kind of knowledge management tool. This includes troubleshooting
methods such as verifying physical layer issues, resolving username and password
problems, uninstalling/reinstalling basic software applications, verification of
proper hardware and software set up, and assistance with navigating around
application menus. Personnel at this level have a basic to general understanding of
the product or service and may not always contain the competency required for
solving complex issues. Nevertheless, the goal for this group is to handle 70%-
80% of the user problems before finding it necessary to escalate the issue to a
higher level. In other industries (such as banking, credit cards, mobile telephony,
etc.) 1st level support is carried by a call center that operates extensive hours (or
24/7) acting as "initial sink" for user requests and, if required, creating an incident
to notify other business teams/units to satisfy user request (provide new pin,
blocking stolen credit cards/mobile phones/SIMMs). In some industries, 1st line
support actually requires very good knowledge of the products, terms and
conditions offered by the business rather than technical information itself (Retail /
Wholesale).

Tier/Level 2(T2/L2):-

This is a more in-depth technical support level than Tier I containing experienced
and more knowledgeable personnel on a particular product or service. It is
synonymous with level 2 support, support line 2, administrative level support, and
various other headings denoting advanced technical troubleshooting and analysis
methods. Technicians in this realm of knowledge are responsible for assisting Tier
I personnel solve basic technical problems and for investigating elevated issues by
confirming the validity of the problem and seeking for known solutions related to
these more complex issues. However, prior to the troubleshooting process, it is
important that the technician review the work order to see what has already been
accomplished by the Tier I technician and how long the technician has been
working with the particular customer. This is a key element in meeting both the

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customer and business needs as it allows the technician to prioritize the
troubleshooting process and properly manage his or her time. If a problem is new
and/or personnel from this group cannot determine a solution, they are responsible
for raising this issue to the Tier III technical support group. In addition, many
companies may specify that certain troubleshooting solutions be performed by this
group to help ensure the intricacies of a challenging issue are solved by providing
experienced and knowledgeable technicians. This may include, but is not limited to
onsite installations or replacements of various hardware components, software
repair, diagnostic testing, and the utilization of remote control tools used to take
over the users machine for the sole purpose of troubleshooting and finding a
solution to the problem.

Tier/Level 3(T3/L3):-

This is the highest level of support in a three-tiered technical support model
responsible for handling the most difficult or advanced problems. It is synonymous
with level 3 support, back-end support, support line 3, high-end support, and
various other headings denoting expert level troubleshooting and analysis methods.
These individuals are experts in their fields and are responsible for not only
assisting both Tier I and Tier II personnel, but with the research and development
of solutions to new or unknown issues. Note that Tier III technicians have the same
responsibility as Tier II technicians in reviewing the work order and assessing the
time already spent with the customer so that the work is prioritized and time
management is sufficiently utilized. If it is at all possible, the technician will work
to solve the problem with the customer as it may become apparent that the Tier I
and/or Tier II technicians simply failed to discover the proper solution. Upon
encountering new problems; however, Tier III personnel must first determine
whether or not to solve the problem and may require the customers contact
information so that the technician can have adequate time to troubleshoot the issue
and find a solution. In some instances, an issue may be so problematic to the point
where the product cannot be salvaged and must be replaced. Such extreme
problems are also sent to the original developers for in-depth analysis. If it is
determined that a problem can be solved, this group is responsible for designing
and developing one or more courses of action, evaluating each of these courses in a

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test case environment, and implementing the best solution to the problem. Once the
solution is verified, it is delivered to the customer and made available for future
troubleshooting and analysis.

Creating the brand: Carrier AC X-Fresho Service:-

Communicating brand strategy is key to a great brand name. Words project
both meaning and feeling. We want that the brand name should communicate in a
way that fits our overall brand strategy, whether thats straightforward
functionality or more emotional. If it does, every time somebody mentions the
name, its an advertisementone you didnt have to pay for. Our service pack
deals with the objective of providing sound and immediate technical support to the
customers for the retail food refrigerators, which will further help to maintain the
freshness and quality of the food preserved in the refrigerator and hence the name
X-Fresho. We had taken help from the company Brand Identity Guru Inc. for
developing a winning brand name for the service pack. They had done the
following steps to create the name:
Analytical survey of the competition to completely comb through the entire
range of our competitors to determine which brand names and product
names are a hit with our market. This information helped the naming team
determine the positioning strategy of our brand name.
Positioning. Heres where a great deal of the heavy lifting happened. They
helped us hone in on our brands core values and create a foundation of
understanding and ideas from which a winning brand name would come.
Name conceptualization. Proper name development begins by taking the
positioning strategy and exploring it from multiple angles and analyzing
how weintend to use it in our marketing, advertising and branding efforts.
Then, they would start creating name options.
Trademark. They screened promising name possibilities through their
trademark law firm to determine the feasibility of using them as brand
names. This step is to help us by preventing costly lost time that might occur
if our company warms up to a certain name only to find it cant be used
when we try to register it.
Creative mockups. A standard component of our naming service is creating
conceptual marketing materials that feature promising name ideas. This

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could include ad treatments, graphical layouts and stories to give us an idea
of our future with this brand name.
Final deliverable. We got a short list of final, legally feasible names along
with an in-depth positioning strategy for each.
IPR Related Issues:-

Since Carrier AC is coming up with a service pack which would rather involve
training and development of staff for providing services associated with our
product retail food refrigerator on the technical affairs based on the companys
own researched and developed technology, there is minimum scope for technology
transfer cost and Intellectual Property Rights issues.

Pricing Policy:-
We are using Cost plus Pricing Method. It is used primarily because it is easy to
calculate and requires little information. There are several varieties, but the
common thread is that one first calculates the cost of the product, then includes an
additional amount to represent profit. The method determines the price of a product
or service that uses direct costs, indirect costs, and fixed costs whether related to
the production and sale of the product or service or not. These costs are converted
to per unit costs for the product and then a predetermined percentage of these costs
is added to provide a profit margin. The general practice of determining price
under this method is to estimate average variable cost (AVC) and add to it fair
margin of profit ( P = AVC + AVC(m), m is called mark-up percentage ).
There is potential growth opportunity for this kind of a service pack in the market.
Retailers have been purchasing these kinds of retail food refrigerators from Carrier
as well as its other competitors all over India, and there has always been a demand
for quality service for these products. Carrier has made good use of this potential
demand and has taken this as a nice opportunity to launch this service pack.
The price is set as Rs. 442 for the entire one unit of service pack. The breaking up
of the cost is shown below:
Fixed Cost: Rs. 8.6536crores (approx) for 50000 units and variable cost: 10.08
crores (approx) for 50000 units

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REFERENCES & WEBLIOGRAPHY:-

http://www.carrierindia.com/about_carrier.asp
http://www.carrier-
refrigeration.com/News.824.0.html?&tx_ttnews[tt_news]=247&cHash=fb0f87
5092090d16ee4ee65a2baaa3ac
http://www.corp.carrier.com/Carrier+Corporate+Sites/Corporate
http://en.wikipedia.org/wiki/Michael_Porter

Slides & Reading materials of B2BM of Dr.Saji KB Nair