Transcript What is B2B
Welcome to Lectures on 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 Distinguishes B2B from B2C? What is B2B: “Goods and services sold for any use other than personal consumption” (It is not the nature of the product, it is the reason for the transaction.) TSMG : Leading Management Consulting Firm ( Need based consulting support ) Consulting Services TCS Tata Consulting Engineers (TCE) Tata Strategic Management Group (TSMG/TECS) TSMG: Corporate strategy planner & solution provider Clients Portfolio Large industrial houses Identification of project idea Private/ public sector firms Industry analysis & sales forecasting MNC s Formulation of business plan Financial bodies Macro/micro economic studies Ministries, etc Products Consumer 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 Companies 1. 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) Reliance Industries Ltd ($35 billion) Birla Group •( $25 L billion) Vimal fabrics, Textile fibres, plastics & other petroleum products 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 economysee 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 •Shifting focus from domestic market to exports •Mergers and Acquisition •Focus on value added products Globalization of Indian Economy •Targeting untapped markets •Import of latest technology & global cost competitiveness •Greater inflow of FDI •Focus on SEZ Product segmentation : Industrial marketing Product classification Manufacturing@ Industrial & Consumer products Services Banking Insurance Aviation Communication Hotels Fast food Retail Media Entertainment, etc Infra structure Airports Sea ports Railways Roads/ high ways Power, 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 Stage 1. Macro Factors PESTL analysis Political Economical Social Technological Legal Stage 2: Micro Factors Stage 3 (Industry/ product related) Marketing business plan Current industry status Future potential Competition analysis Consumer awareness SWOT Michael porter analysis TEN Ps Stage 4 B2B 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!