Welcome to Lectureson

B2B- Business to Business marketing

First Lecture: Introduction

India Emerging as an Industrial Super Power

Challenges for

Marketing & Sales Executives

Prof. V. K. Chhabra

CONTENTS & COVERAGE

1. What Distinguishes B2B from B2C?

2. Introduction to consultancy group of Tatas

3. Tatas most diversified industrial group

4. Other industrial groups and selected companies

5. Rapid Fire Question-Answer Session On Indian Economy

6. Globalization of Indian Economy

CONTENTS & COVERAGE

6. Product segmentation : Industrial marketing

7. Manufacturing sector: Broad product Classification

8. Modular approach to business plan for B2B

9. B2B business plan: 10 Ps

10. Major thrust sectors of investment in India

What is B2B:

“Goods and services sold for any use other than personal consumption”

(It is notnot the nature of the product, it is the reason for the

transactiontransaction.)

What Distinguishes B2B from B2C?

TSMG : Leading Management Consulting Firm( Need based consulting support )

ConsultingServices

TCSTata Consulting Engineers (TCE)

Tata StrategicManagement Group

(TSMG/TECS)

TSMG: Corporate strategy planner & solution provider

Portfolio

Identification of project idea

Industry analysis & sales forecasting

Formulation of business plan

Macro/micro economic studies

Clients

Large industrial houses

Private/ public sector firms

MNC s

Financial bodies

Ministries, etc

ProductsConsumer durables, Industrial products,

Service sector, Infrastructure projects

Tata Group: Largest & most diversified industrial group

Tata Group is the India’s most respected and professionally managed private sector industrial empire.

Annual turnover $55 billion(Rs2,31,000crs)

Employs 3.50 lakh people world wide

Encompasses seven business sectors amongst 98 Companies1. Engineering and automotive (Tata motors, Voltas)2. Materials (Tata Steel)3. IT & Communication (TCS, Tata Indicom ,etc)4. Chemicals (Tata Chemicals, Rallis,etc)5. Energy( Tata Powers)6. Consumer products (Titan, Tanishiq, Tata Tea, etc)7. Services( Taj Hotels, Croma, West Side, Star Bazaar etc)

Selected Reputed Indian Firms Groups/ Firms

( Figures are turnover for 2007-08)

• L

Reliance Industries Ltd

($35 billion)

Vimal fabrics, Textile fibres, plastics & other petroleum products

Birla Group

( $25 billion)

Textiles( Century), cement( Grasim) , aluminium( Hindalco),

fertilisers( MRPL) etc

Hindustan Unilever Ltd

(Rs14,5000 crs.)

Soaps, detergents, shampoos, ponds

tea, ice creams, Kissan products, food products, etc

ITC Ltd

(Rs15,000 crs.)

Cigarettes, Hotels, paper, ready to eat food items, Biscuits, potato chips, Life style, exports, etc

Maruti Suzuki India Ltd

(Rs 19,000 crs.)

Passenger cars

ICICI Bank (Services)

(Rs. 60,000 crs)

Banking

L & T Ltd

(Rs30,000 crs)

Industrial equipment, (cement), infrastructure, etc

Rapid Fire Question-Answer Session On Indian Economy

1. Pre and post liberalization era of Indian economy

2. Contribution in GDP from service, industry and agriculture

3. India and china on high growth path of economy against negative growth in the developed countries( financial tsunami)- see table

4. What do you understand by Globalization of the Indian economy- see table

5. Which are the basic industries of India

6. Which are the new age industries

India & China shore up world growth

Country Economic growth rate(%)

2009 2010

India 5.1 6.5

China 6.7 8.0

USA -1.6 1.6

U.K -2.8 0.2

France -1.9 0.7

Japan -2.6 0.6

Russia -0.7 1.3

Globalization of Indian Economy

Globalization of Indian Economy

•Shifting focus from domestic market to exports

•Mergers and Acquisition

•Focus on value added products

•Targeting untapped markets

•Import of latest technology& global cost competitiveness

•Greater inflow of FDI

•Focus on SEZ

Product segmentation : Industrial marketing

Product classification

Manufacturing@ Services Infra structure

Industrial &

Consumer products

Banking InsuranceAviation

CommunicationHotels

Fast food RetailMedia

Entertainment, etc

AirportsSea portsRailways

Roads/ high waysPower, SEZ, etc

B2B in Manufacturing sector( Broad Classification)

1. Mining (coal, iron ore, bauxite, crude oil, etc)

2. Ferrous and non ferrous industries (steel, aluminum, copper, zinc, alloys, etc)

3. Capital goods and engineering industries ( industrial machinery, machine tools, hand tools, turbines, material handling equipment, etc)

4. Automobiles and components( commercial vehicles, cars, buses, two wheelers, etc)

5. Textile industry( raw materials, cloth, garments, etc)

B2B Manufacturing sector: Broad Classification

6. Chemical industry (including petroleum products, etc)

7. Paper & paper products

8. Cement and cement products

9. Pharmaceuticals

10. Consumer durables and entertainment electronics (television, refrigerators, washing machines, air conditioners, etc)

11. FMCG products( soaps, detergents, shampoos, tooth paste, etc)

12. Food industries (sugar, tea, milk products, processed fruits & vegetables, etc)

Modular approach to business plan for B2B

Four stage modular approach

Four stage modular approach

Stage 1. Macro FactorsStage 1. Macro FactorsStage 2: Micro Factors

(Industry/ product related)Stage 2: Micro Factors

(Industry/ product related)

Stage 3Marketing

business plan

Stage 3Marketing

business plan

PESTL analysis

PoliticalEconomical

SocialTechnological

Legal

PESTL analysis

PoliticalEconomical

SocialTechnological

Legal

Current industry statusFuture potential

Competition analysisConsumer awareness

SWOT Michael porter analysis

Current industry statusFuture potential

Competition analysisConsumer awareness

SWOT Michael porter analysis

TEN Ps TEN Ps

Stage 4B2B

Stage 4B2B

Business Plan Mix of B2B: 10 Ps

1. Promoters/ partners: Background, vision, mission, credibility, global exposure, etc

2. Planning: Short, medium and long term planning in terms of market opportunities, investments, risk, etc

3. Product: Classification/segmentation, quality, features, servicing, brands etc

4. People: Type of customers, purchasing power, consumer decision making process & behavior, etc

5. Place: Market trends, future growth, competition, regional segmentation, channels of distribution, number of intermediaries, inventories etc)

Business Plan Mix of B2B: 10 Ps

6. Pricing: price range and levels, fixed/ negotiated, discounts, terms& conditions for payments, credit facilities, etc

7. Promotion: personal selling, advertising, sales promotion, direct marketing & public relations/ publicity

8. Positioning: In the competitive environment and multi brand positioning is important

9. Profits: Corporate goals, sales & profitability analysis

10. Packaging: For consumer products it functions as promotional measure whereas for industrial products safety and protection

Major thrust areas of investment in India

• Automobiles, auto components and engineering goods

• Textiles and garments

• Pharmaceuticals, chemicals and petroleum based products

• Consumer durables & FMCG

• Electronics, computers & Information Technology

• Telecommunication

• Processed food products

• Retailing, insurance, banking, tourism & hospitality, real estate, etc

• Infrastructure( power, ports, airports, roads, railways, SEZ, etc)

Thanks for your

participation!