SDMIMD, Mysore I

A Market Study on B2B Sales

Report by

Ajay SA (PGDM No. 13126)

Work carried at

BASF,The Chemical Company

Submitted in partial fulfilment of the requirement of

Summer Internship Programme

Under the Supervision

Mr. JaswanthSobhana

Sales Manager,

BASF, Construction Chemicals Division,

Bangalore

EXECUTIVE

SUMMARY

Project Title: “A Market Study on B2B Sales of BASF “

Supervision: Mr JaswanthSobhana

Name of the Student: Ajay SA

PGDM No: 13126

This project aims at identifying the market condition and market study for concrete

admixtures, so that company can identify the strategy to repair B2B sales.

BASF Construction Chemicals Division, wholly owned by the BASF group operates across

India, Nepal and Bhutan. Our market segmented structure means that you can rely on the

proximity of a local company with the backing of a global group.

Regional offices in four metro cities - Mumbai, Delhi, Kolkata, Bangalore, headed by

Regional Managers

The current study focusses on the B2B Sales and the study has been conducted in Bangalore

and Mysore which are tire 1 & tire 2 cities.

The research work included survey and in-depth interviews with the dealers. The

questionnaire was used to record the response by dealers.

The project, which was blend of market research was quite a learning and satisfying

experience

The thesis describes the above mentioned work in detail.

Name of the student Supervisor

Ajay SA (13126) Mr JaswanthSobhana

SDMIMD BASF, Bangalore

ACKNOWLEDGEMENT

This summer internship project is just not merely doing the project, but it is also to get the

first-hand experience of the industry. It is rightly said that no one is as good as all of us. This

statement underlines the significance of the contributions of people in order to make any

effort a success. This endeavour of market research could not have met its end without the

assistance and wishes of many individuals who made this effort possible. I am thankful to our

institute ‘SDMIMD, Mysore” for providing us an opportunity and encouragement to

undergo project training in BASF company.

I would like to take this opportunity to express my gratitude to my corporate guide

Mr.JaswanthSobhana, Sales Manager, BASF, who provided me the opportunity to execute

the project which not only was important for the organisation but also allowed me to have

practical insights of the corporate world and improved my perspective.

I would like to thank my faculty guide Dr.NilanjanSengupta for being there always to

support whenever I needed it. This enabled me to make this project a blend of academics and

practice.

At last, I want to appreciate the incessant support of my friends and relatives who helped in

seeking a number of appointments within the industry and made the data collection possible.

Ajay SA

13126

Contents ORGANIZATION CERTIFICATE .....................................................................Error! Bookmark not defined.

Executive Summary .............................................................................................................................................. II

Acknowledgement ................................................................................................................................................ III

COMPANY INTRODUCTION .......................................................................................................................... 1

Introduction to the Project topic ..................................................................................................................... 2

Organizational Context .................................................................................................................................... 2

Objectives of the research ................................................................................................................................ 2

Product Definition ................................................................................................................................................ 3

Research Purpose ................................................................................................................................................. 3

Research Users ...................................................................................................................................................... 3

Research Design .................................................................................................................................................... 3

Research Boundary .............................................................................................................................................. 4

Pilot Study ............................................................................................................................................................. 4

Field Work / Data Collection ............................................................................................................................... 5

Qualitative Research ........................................................................................................................................ 5

1. Quantitative Research ................................................................................................................................. 5

2. Population Selection..................................................................................................................................... 5

3. Research Methodology ................................................................................................................................ 6

4. Type of research ........................................................................................................................................... 6

Exploratory Research ....................................................................................................................................... 6

Descriptive Research ........................................................................................................................................ 7

Sample Plan ........................................................................................................................................................... 7

Information Requirement Planning .................................................................................................................... 7

Data Analysis and Graphical Presentation......................................................................................................... 8

Dealers Analysis .................................................................................................................................................... 9

Competitors Analysis ......................................................................................................................................... 10

Results and Discussions ...................................................................................................................................... 12

SWOT Analysis ................................................................................................................................................... 12

Important Findings............................................................................................................................................. 13

Recommendations ............................................................................................................................................... 13

CONCLUSION ................................................................................................................................................... 14

SIP Learning’s ...................................................................................................................................................... 15

Market Research Questionnaire used ................................................................................................................... 16

SDMIMD, Mysore 1

COMPANY INTRODUCTION

Established as Master Builders in 1909 -100 years pedigree

Inventors metallic aggregate dry shake hardener, 1909

Inventors of precision non-shrink grout, 1934

Developed the world's first epoxy grout, 1954

First Superplasticiser based on Melamine 1966

Invented DELVO, the hydration control admixture, 1989

Patented the most versatile APS resin system for repairs that sets at -25oC

to +45oC, 1993

Invented PCE based Hyper Plasticizers Glenium in Japan, 1986

First Self compacting Concrete (SCC) in Japan, 1989

First Concrete Produced in Space with NASA, 1994

Zero Energy System for precast concrete production, 2001

SureTEC- slump retention technology for ready mix concrete, 2005

GLENIUM 8008 - Admixture for Ultra-High Strength Concrete (>120

MPa) , 2007

Introduction to the Project topic

BASF proposed to do a market survey on B2B sales on the products which are going to be

produced by BASF Company. Towards this end BASF decided to commission a market

research project to be undertaken by SDMIMD students as a summer internship projects.

The objective was to understand the market and the demand for its products.

Organizational Context

The organization wants to explore the possibility of sales in B2B market. Since BASF has a

good distribution channel throughdealers for its products all over the country.

A detailed study of the market was done across India but I was assigned with tier 1 & 2 cities

like Bangalore and Mysore.

Objectives of the research

The overall objective ‘Is to study the market for B2B sales in India and the major concern is

with Tier 1 & 2 cities’.

This has been divided into the following sub-objectives:

1. Price

2. Brands and competitors

3. Preference in buying.

4. Industrial market research

“The aim of marketing is to know and understand the customer so well the product or service

fits him and sells itself’ – Peter Drucker

Kotler on Marketing – “Marketing is an organizational function and a set of processes for

creating, communicating, and delivering value to customers and for managing customer

relationships in ways that benefit the organization and its stake holders”. Marketing is the

process of planning and executing the conception, pricing, promotion, and distribution of

ideas, goods and services to create exchanges that satisfy individual and organizational goals.

Market Research - Definition: The process of gathering, analysing and interpreting

information about a market, about a product or service to be offered for sale in that market,

and about the past, present and potential customers for the product or service; research into

the characteristics, spending habits, location and needs of your business's target market, the

industry as a whole, and the particular competitors you face. (http://www.entrepreneur.com)

“Marketing research is a systematic problem analysis, model building and fact finding for the

purpose of improved decision-making and control in the marketing of goods and services.” –

Philip Kotler

Industrial market Research - The importance of industrial market research cannot be over-

stated because it defines the specific target markets and products that will produce increased

sales and higher profit margins. More specifically, industrial market research defines the

companies that are most like your best customers and most likely to need what you sell in the

marketplace.

PRODUCT DEFINITION

Improving concrete, Repairing concrete, Protecting concrete

RESEARCH PURPOSE

The purpose of the study was to explore the Sales in B2B market. The study also needs to

analyse the consumer satisfaction about BASF Products.

RESEARCH USERS

The research analysis will be used by the top management. This analysis will aid them to do

further detailed study and to take certain strategic decisions.

RESEARCH DESIGN

The survey initially begin internally in BASF, collecting data of internal report on the

domestic market place, information on distribution, regional buying pattern and any

complaints from consulted person in BASF and the representatives of BASF in Bangalore

and Mysore region. After the guidance from the BASF management we submitted a

Questionnaire designed by me, after proper scrutiny and sanction of the Questionnaire I

started with Survey in the places assigned for me.

As mentioned above I had to conduct the survey across the city of Bangalore and Mysore for

a sample size of 20- 25.

Research Questions

1. To understand the buying behaviour of the consumers of product.

2. What is the potentiality of the market and feasibility of capturing the market.

3. To what extent brand awareness of the BASFhelp the company to sell products in the

market?

4. What are the major factors/features that influence purchases?

5. Which brands are preferred by dealers and in different market?

6. What is the level of satisfaction of dealers?

RESEARCH BOUNDARY

1. Research was conducted across many parts of India wherein I was assigned with tier

1& 2 cities like Bangalore and Mysore.

2. Target group was dealers / Wholesalers, Builders.

PILOT STUDY

A pilot study was conducted in Mysore city to understand the market here and get the in

depth analysis and to know how the people will respond and what kind of Questions to be

asked and what are Dealers and builders Expectation.

FIELD WORK / DATA COLLECTION

Since this is a descriptive type of research, the hypothesis is tentative and speculative in

nature. So survey will be done with the help of the questionnaire where we consider

equivalence, measurement and sampling.

Qualitative Research

The Purpose of this is to provide BASF with the detailed qualitative information like people’s

opinions, attitudes and intentions. In-depth interview was used to explore and understand the

attitudes of the potential customers towards the BASF products and subsequent qualitative

research was used to measure how widespread these attitudes are.

The Qualitative phase will probe the following:

1. Observations – Open Ended Questions, Information by observing people and places

at a research site.

2. In-depth Interviews.

1. QUANTITATIVE RESEARCH

Interview is structured with close-ended Questions in questionnaire. Collecting data such as

ratings, frequencies for statistical analysis

The Quantitative Phase will probe the following:

1. Estimate price sensitivity and purchase likelihood.

2. Identify features and benefits that drive purchase likelihood.

3. Assess how target consumers want to design and purchase the product.

2. POPULATION SELECTION

Study was done using the true representation of population who are be into the construction

field, builders, dealers of the company etc. Survey was also conducted with the Wholesale

Dealers who supply Chemicals and related materials to the shops and users to get the better

picture and understand the market. Questionnaire was used to get the in depth analysis of the

market for Chemical products and get the detailed picture of it. For the ease of Research,

every city was divided into four Parts where i can get the responses from the customers and

where the majority of these will be situated.

3. RESEARCH METHODOLOGY

The survey was started internally in BASF, collecting data of internal report on the domestic

market place, information on distribution, regional buying pattern. Collected the data on the

requirements of the research and this was very helpful and is indicative of the likely domestic

market place and indicate strengths and weakness that will help in segmentation. An external

search through my own channels and collection of secondary data also took place, so that

helped to obtain and analyse existing market.

4. TYPE OF RESEARCH

Exploratory Research

Exploratory research is generally used to clarify thoughts and opinions about the research

problem to provide insights on how to do conclusive research. The results of the exploratory

study can give valuable inputs for the second study. It helps in developing and refining the

plan for the research. During the first ten days of the research exploration was carried

out.During this phase unstructured in-depth interviews were conducted with some builders

and dealers within the aforesaid industries so as to appreciate the significance and magnitude

of the market. After this phase questionnaires were developed.

Descriptive Research

The survey was conducted using the questionnaires. Various scales and parameters were

included in the questionnaire to draw the value expectations of the buyers. The questionnaires

were in tune with the objectives of the research study.

SAMPLE PLAN

Break up of Sample Plan:

Builders in Bangalore and

Mysore(Combined)

(Organized and Unorganized)

10

Dealers/ Wholesalers in Bangalore

and Mysore (Combined)

10

INFORMATION REQUIREMENT PLANNING

Source of

Information

Information Required Scaling Approach

Builders

Purchase Behaviors

Frequency of Purchase

Price Preferred

Brand Awareness

Largely Nominal or

Ordinal

Manufacturer Distributors

Problems Facing

Additional Features

Retailers &

Wholesalers

Dealers

Brands Available & Price

of each brand.

Frequency of Purchase of

each brand.

Additional Features

Largely Nominal or

Ordinal

DATA ANALYSIS AND GRAPHICAL PRESENTATION

Bangalore:

Bangalore is the capital city of the Indian state of Karnataka. Located on the Deccan Plateau

in the south-eastern part of Karnataka, Bangalore is India's third most populous city and fifth-

most populous urban agglomeration.

Bangalore is having total population of 8.426 Million People which is spread over 741 km²

Survey Conducted:

As per the total survey conducted in Bangalore city in specific locations it is found that

around many builders and contractors use chemicals while constructing.

Major Market Leaders (Bangalore and Mysore):

BASF

FORSEC

PEDILITE

SIKA

Preference of Brands by DEALERS & BUILDERS (Bangalore and Mysore)

N Sum Mean

Price 25 62 2.48

Quality 25 77 3.08

Ease of Availability

25 70 2.8

Packaging 25 66 2.64

Size Availability 25 71 2.84

1 – Least Important, 2- Neutral, 3- Important, 4 – Very Important

The values are interpreted as follows,

Lower the mean no. – Least Important Character

Higher the mean no. – Most and Very Important Character

Here from the table we can observe that Price has been given less importance and Quality has

been pressurised a lot which means consumers are ready to pay but at the same time the

quality of the product should also be at the best but they still do prefer for the medium

pricing.

DEALERS ANALYSIS

Does Builders/dealers seek your suggestion as to the brand they can buy?

Dealers

10

Builders 10

Both

20

Major factors taken into consideration for stocking products

1 – High, 2 – Medium, 3 – Low

N Sum Mean

Customer Demand 23 23 1.00

Profit Margin 23 33 1.43

Advertisement 23 45 1.96

Availability 23 23 1.00

Incentives 23 38 1.65

Brand Awareness 23 38 1.65

Packaging 23 30 1.30

Performance 23 23 1.00

Credit Period 23 35 1.52

The values are interpreted as,

Higher the mean no. – Less preference has been given to such strategies

Lower the mean no. – High preference has to be given to such strategies

Here the data obtained were analysed by using Mean method. Respondents were asked to

rank major size and shapes which are most preferred and fast moving on a scale 1 to 3.

COMPETITORS ANALYSIS

22

78

Yes

No

For any business, there is always a set of players who control the market. Any firm which

wants to enter into a business must understand those players to make plans accordingly. In

Chemical construction market too there are a number of well-established and experienced

players.

BASF

FORSOC

PEDILITE

SIKA

RESULTS AND DISCUSSIONS

The research has resulted in the following outcomes which will help the organization in not

only understanding the market but also in designing the strategy for B2B sales of BASF.

SWOT ANALYSIS

External Environment

Opportunities

Potential to become market leader by increasing brand awareness of BASF products.

Very huge chemical market

Threats

Local and experienced players in the market

Well-known brands which are available at low cost.

Internal Environment

Strengths

Business Experience

Brand value

Financial Strength

World Class Production

Commitment on high quality products.

Market leader

Human Capital

Strong distribution network.

IMPORTANT FINDINGS

Price

Respondents are satisfied the price of the current products. To gain initial foothold in

the market it is recommended to launch a product with 2-5% discount compared to the

competitor’s prices to gain fast response of the price sensitive customers.

Market Response

With approx. average 50% of the customers responding in yes and not sure to a new

supplier, it is the best time to take advantage of the optimism among the customers.

Brand

BASF needs to take advantage of its brand value by focusing on this market. This market

promise huge scope and premium pricing for the brands.

RECOMMENDATIONS

Since BASF is having strong Distribution network it can either use the same

distribution channel if it thinks it is feasible to start manufacturing the patches.

If the company does the reverse engineering of the leading market leaders product and

try to maintain the same quality or if it wishes it can invest on R&D and try develop

new variety or try improvise the quality of the product then it can capture the market

easily

Promotional strategies like distribution of free samples to the users has to be done so

that they will get an awareness about the brand and also they will test the products

Consumers are willing to try new brands if the quality of the Product are good and

price remains almost the same which they are paying as of now.

Company also has to distribute tools kit freely at the initial stage and should also think

of launching the Bonding gum since it is also very essential while the process of

repair takes place and majority use same Brands bonding gum because that fixes

firmly.

Dealers wishes they get more Profit margin and medium increase in credit period

might help them so that they can push the product to the consumers and also promote

the product.

CONCLUSION

The quality, price and quantity are the major attributes governing the buying behaviour of the

Chemical products. Dealers sell all type of brands and so even BASF has to influence the

builders and dealers in buying the BASF products.

As described in the earlier stage of the report how potential is the markets of Bangalore and

Mysore cities, I think it is right time for the BASF to go with brand awareness and

promotional strategies.

Since BASF has financial, operational and marketing capabilities to create a mark in this

business, it can positively enter and ensure success.

The report presents the response of builders and dealers on various parameters. This will help

the organisation to have pragmatic view of the market. The study has revealed the value

expectation of the customers in the tube and tyre repair market.

It is recommended that the firm should target to enter the market as a follower and gain

experience and then expand its operations to become a leader.

At last, the report makes an attempt to open new avenues for the organisation. It is expected

that taken decisions in this regard will go a long way to bolster the operations of BASF to

enable it to become more prosperous and admired brand.

SIP LEARNING’S

Summer Internship Program is a very viable way through which corporate structure and life

can be felt in a span of two months. Being working as a Marketing intern at BASF, not just it

helped me in broadening the horizon for the works to be carried out in the marketing

department of an organisation but also helped in a significant way to understand various

prospects of market and current market scenario. While working on my project work, I came

across many things and all that served as a great deal of learning. SIP also serves as a place

where we can apply all the concepts learnt through classroom lectures and the practical

aspects related with the same. It paves the way to learn to know, manage and deliver

responsibilities and accountabilities in an efficient way.

While doing the survey, what’s in it for me? Because until and unless there’s no value

creation no one is interested in anything. So at the end of the day, one has to sell himself to

become productive for any organisation.

MARKET RESEARCH QUESTIONNAIRE USED

QUESTIONNAIRE FOR DEALERS & BUILDERS

Distributor Name

Product Distributor of

Contact Information

Name

Designation

Telephone no

How long have you been a (company) dealer?

How much of your profit is derived from (company) products?

0-25%

25%-50%

50% & Above

Which of the following (company) product do you fully support at this

time?

Compared to (market leader), how does (your product) offer advantages in

selling situations?

Strong advantage

Slight advantage

About the same

Slight disadvantage

Strong disadvantage

Compared to (market leader), how does (your product) offer advantages in

profitability?

Strong Advantage

Slight Advantage

About the same

Slight disadvantage

Strong disadvantage

Which product line do you see as offering a stronger competitive position

to (company) dealers?

Pedilite

Fosroc

Sika

BASF

Which of the following best describes the influence you feel you have with

(company) senior management?

A lot of influence

Some influence

Very little influence

No influence

How do you rate (company) on the following Pedilite

Fosrac

Sika

BASF

Which of the following administrative areas would you say presents the

greatest opportunity improvement? (Choose any two)

Order processing

Shipping

Billing and credit service

Inventory tracking