Case Study 3: Industrial Marketing (B2B Marketing) ABB (Asea Brown Boveri) Ltd, Bangalore

Background Core consultancy group (CCG) deals with the following generic spheres of management consultancy: Industrial marketing research(IMR) Consumer marketing research(CMR) Human resource development(HRD) Techno commercial feasibility(TCF) Idea generation technique(IGT) for diversification

The above five constitute the overall service mix of which IMR constitutes nearly 80% of the firms turnover in sales-value terms. Its major concentration is in the east, followed by the west, and efforts are on to popularize it in the north and south of India also. The major brains in CCG are: Director, Marketing services Director, Technical Director, CMR and HRD Director, Analysis Director, Western Region

There are a number of large and medium competitors- M/S TECS, the major competitors, is one of the largest management consultancy houses in India. Profile of the prospective buyer ABB is a very large and highly diversified organization located near Bangalore, where about 2000+ people work. In 2009-10, its sales turnover was Rs. 1800 crore. Its chief concentration is in the energy sector, followed by other areas like the manufactures of Railway locomotives. They manufacture both analog thyristor drives (ATD) and digital drives (DD). For the latter product, there are a number of competitors like Siemens India. A few very large parties like UMI are also reportedly planning to start local production. For the digital drives line, 80% is still imported from USA, Germany, Japan, etc. for direct use in sectors such as

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Integrated steel plants, Mini steel plants, and Industrial machinery manufacturers (Fertilizers, Chemicals, etc) and others.

ABB has decided to organize an all-India industrial marketing research on the DD line to assess its demand, potential present and future competitive positions, import scenario, overall growth rates of end use sectors, government policy, probable future market share, etc. All the DMU members are highly qualified and experienced. Vice president ,R&D General manager, Factory Marketing research manager Manager, corporate division President General manager, Marketing (Drives Division).

CCGS liaison officer at Bangalore had sent an email to the Director, Marketing services, on 1 February 2010 requesting for the preparation and submission of a research proposal to M/s ABB, through the local liaison officer, latest by 15 February 2010. The director was quite excited and, at the same time, confused about getting it done in just two weeks. On the other hand, he was fully aware of the following steps involved in the selling process. 1. Prospecting and lead generation( partially organized by the Bangalore- based liaison officer for CCG) 2. Handling Objections 3. Plan for presentation to the prospective client (several-sub-stages may be involved) 4. Closing the sales (even losing the order may also be involved) 5. Follow up The director had to give firm estimates to ABB regarding. The companies past and present relevant achievements, The expertise behind the proposed all-India study, The overall process of how CCG proposed to carry out this industrial marketing research, and time and cost estimates.

However, detailed work-scope as well as competitive strengths should be known, prior designing all the above.

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Given the time constraint as well as the inability to overspend, the director had to decide on the way he should act. He called the available seniors at Kolkata for an internal meeting. The major issue was-how to act? A: Decision making unit of ABB at Bangalore. Terms of reference yet to be defined. B: Task team from CCG. C: Task team from TECS, Mumbai, Which has organized about 1000, similar Studies in India, Africa, south east Asia, etc. They enjoy a very high reputation and image, though also known to be the most expensive.

Questions: 1. Discuss the Marketing Strategy CCG should use to get ABB Business. 2. Devise SWOT of CCG with TECS with the context of this MR project. 3. On what basis do you think ABB will decide to award the order & to whom. 4. Prepare a research Proposal.

Note: A research proposal is a systematic and scientifically designed quotation, highlighting a companys strengths and weaknesses( if Any), the time and cost estimate, the work methodology, etc.

Adopted and modified Source: Industrial Marketing by P.K.Ghosh Oxford Press. Karwak Case Studies Industrial Marketing (B2B Marketing)

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