kpcl : strategic marketing management
DESCRIPTION
This is project on strategic marketing management of my friends who done on Kirloskar Pneumatics company ltd.TRANSCRIPT
Kirloskar Pneumatics Co. Limited
1. Anuja Mathur 2. Santosh Gaikwad 3. Himanshi Jain 4. Himanshu Vishwakarma
1003 1005 1007 1009
SYNOPSIS• We have evaluated the organization in terms of internal, external customers, business process
and product portfolio.
• We have evaluated the Vision and Mission statement of KPCL, keeping in the mind the
stakeholders. We found that Vision was easy to remember and understandable but Mission was
not understandable.
• We have mapped the interest and expectation of Stakeholders by comparing the financial report
of KPCL for 3 conservative years.
• We found that KPCL have good wide range of product portfolio to serve its customers, They even
deals into CSR activities like Vasundhara.
• Even we found that company don't carry any dispute regarding government payables, its Nil.
• We have analysed and mapped KPCL has product oriented, this organization has implemented
many cost reduction measures.
• We try to highlight KPCL grey areas and analysed the customers dissatisfaction and given
profound reasons responsible.
• We have compare the companies Strength, weakness, opportunity and Threat using SWOT,
TOWS matrix.
• We have analysed and segmented the companies market based on Niche segment.
PRODUCT PORTFOLIO
Air Compressor Division Air Conditioner Refrigeration and Processed Gas Transmission Division
Reciprocating air compressors screw air compressors centrifugal air compressors
1. RHBP compressors
2. Vertical reciprocating
3. Railway brake systems
1. Oil injected
2. Diesel engine driven
3. Diesel screw
Compressor for RS Refrigeration Systems Process gas system Vapour absorption chillers
Category : 03 Products : 12 Variety : 6
Pinions & bull gears Marine gear box Helical gear box Wind turbine gear box Turbo transmission
for locomotive
GROWTH IN LAST 4 YEARS
Year Increase in sales
2010-2011 8%
2011-2012 35%
2012-2013 -17%
2013-2014 -7%
Year Increase in profit
2010-2011 -8%
2011-2012 40%
2012-2013 -23%
2013-2014 -17%
“In an ever changing world one thing
that will remain constant is our
Commitment towards all our
stakeholders”
PROMOTION AND ADVERTISING
• Advertising campaign began on CNN in 2007-08 for Africa, Middle East and Europe
markets.
• In 2011 advertisement showing the engineering DNA of the company started on english
news channels.
• The Indian ad shows the group as a one-stop shop for any engineering solution for water
and power generation.
• Vijay Varma, president, Kirloskar Proprietary stated “Proprietary is spending between Rs.
10-12 crore annually on this brand promotion”.
13%
25%
15%
47%
Air Compressor Market
KPCL ELGI Engersoll otherINGERSOLL
COMPETITOR ANALYSIS
Parameters
Competitors
KPCLELGI Ingersoll
1. Market Share 25% 17.7% 13%
2. Market Growth (2012-13) 15% -10% -22%
3. Revenue (2013) crore 1144.5 581.35 448.3
4. Price Levels 1.5L to 4L 19K to 11L 2L to 6L
5. After sales service Good Average Good
6. Technology Skills High High Low
7. Dealers 114 + 165
(world wide)
- 200
8. Place Global(40
countries)
Global Global
9. Weakness Capacity
constraints
Sales and
distribution
Slow change
10. Promotions Trade fairs and
exhibition
ACMEE and
INTEC.
By implying
societal values
through CSR,
Green
innovation
Green initiative
and commercial
ads.
KPCL INGERSOLL ELGI
AIR COMPRESSORS
Reciprocating Air Compressors
Screw Air Compressors
Centrifugal Air Compressors
AIR COMPRESSORS
CAGI Data Sheets
Small Reciprocating Air Compressors
Rotary Contact-Cooled Air Compressors
Rotary Oil-Free Air Compressor
PET Compressed Air Solutions
Centrifugal Air Compressors
Compressed Air Treatment
Compressed Air Controls & Automation
Compressed Air Services
Compressed Air White Papers
Product Recall Information
PISTON COMPRESSORS
Oil Free Compressors
Oil Lubricated Compressors
Electric Lubricated Screw Compressors
EN Series Compressors
EG Series Compressors
Horizon Series Compressors
90 – 250 KW Single-Stage Horizon
EE75 – EE160 Two-Stage Horizon
Electric Oil-Free Screw Compressors
Two-Stage Water Cooled 90 – 315 Kw
Portable Compressors
Diesel Powered
Electric Powered
Railway Compressors
Electric Locomotive
Diesel Locomotive
Electric Multiple Unit
Air Conditioning, Refrigeration & Process Gas Division
(ACR & PG)
Equipment (Compressors for refrigeration
system), Refrigeration Systems (Industrial
refrigeration packages, Customized turnkey
projects,
Screw compressor package
Containarised Ice & water chilling plants &
Marine HVACR)
Process Gas Systems (CNG compression
packages & Gas compression packages)
Vapour Absorption Chillers ( HP Steam Driven
VAC’s and Direct Fired VAC’s)
ARO Pumps
Diaphragm Pumps
Piston Pumps & Packages
Filter Regulator Lubricators
Lubrication Equipment
Pneumatic Valves & Cylinders
Air Accessories
offers Total Compressed Air management solutions
for its customers
Air Conditioning, Refrigeration & Process Gas Division (ACR & PG)
Equipment (Compressors for refrigeration system), Refrigeration Systems
(Industrial refrigeration packages, Customized turnkey projects,
Screw compressor package
Containarised Ice & water chilling plants & Marine HVACR)
Process Gas Systems (CNG compression packages & Gas compression
packages)
Vapour Absorption Chillers ( HP Steam Driven VAC’s and Direct Fired VAC’s)
ARO Pumps
Diaphragm Pumps
Piston Pumps & Packages
Filter Regulator Lubricators
Lubrication Equipment
Pneumatic Valves & Cylinders
Transmission Division (TRM)
Pinions & bull gears
Marine Gear box
Helical / Bevel Helical Gear units
Wind Turbine Gear Boxes
Turbo Transmission for Locomotive
Forward / Reverse Turbo Transmission For Locomotive
Air & Electric Tools
Cordless Tools
Construction Tools
Cutting & Hammering Tools
Drilling
Fastening
Impactools
Ratchets
Riveting
Surface Preparation / Finishing Tools
Lifting / Material Handling
Handling Devices
Handling Devices / End Effectors
Torque Tubes
Lifting Devices
Balancers
Hoists
Winches
Support Structures
Arm Systems
Beam Clamps
Jib Cranes
Rail Systems
Tractors
Trolleys
ELGI
RELATIVE MARKET SHARE
(cash generation)
MA
RK
ET
GR
OW
TH
RA
TE
(cas
h u
sag
e)
LOW 1 HIGH
0%
10%
HIG
H
KPCL (Air Compressor Division)
BCG Matrix
Ingersoll
CONCEPT NO. 1 (ANSOFF’S MATRIX)
Market Development Diversification
• Air compressors
• Vapour absorption chillier
Market Penetration
• Screw air compressors
Product Development
• Reciprocal air compressors
• Transmission products
• Process gas system
PRODUCT
MA
RK
ET
OLD NEW
OLD
N
EW
MICHAEL PORTER FIVE FORCES
KPCL
Ingersoll
Atlas cop
co
• MODERATE - HIGH bargaining power of
supplier.
• Lesser alternatives, due to highly
specialised product offerings.
• Higher switching cost.
• LOW threat of substitutes.
• Specific raw materials are used.
• For eg. renewable sources of energy.
• MODERATE bargaining power of buyers.
• Buyers seek for along term relationships.
• Customised industrial gearboxes
• LOW threat of new entrants.
• Few no. of players in the market.
Bargaining power of buyers
Threat of
substitutes
Threat of
new
entrants
Bargaining power of suppliers
CONCEPT NO. 3 THE SPACE MATRIXFINANCIAL STRENGTH
ENVIRONMENTAL STRENGTH
CO
MP
ET
ET
IVE
AD
VA
NTA
GE IN
DU
ST
RY
ST
RE
NG
TH
Worst -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 Best
-2.3
1.67
Competitive Strategy
Aggressive StrategyConservative Strategy
Defensive Strategy
CALCULATIONSCompetitive Advantage
1.6
Manufacturing Skills -3
-
2.33After sales service -2
Brand recognition -2
Industry Strength
Employee satisfaction 3
4
Barriers to entry 5
Financial Strength
-2.3
Revenue 1
1
Profit 1
Environmental Strength
Inflation -2
-
3.33Technology -3
Demand elasticity -5
ANALYSIS
• The industry is considered attractive and the
business is neutral on competitive
advantage
• The business is weak financially but
environmental stability is reasonable.
• To strengthen the balance and to provide
the funds for expansion, it can merge with a
cash rich company who is looking for
opportunities to expand.
Managing Director Rs ( 2012-13 )
Salary – (2013 – 2014 ) 4,955,000 4,200,000
Other perquisites 729,577 652,239
TOTAL Rs TOTAL Rs
Gross Remuneration 55,143,613 68,102,595
2013-14 2012-13
Long Term Loans and Advances 57,537,089 80,332,917
Short Term Loans and Advances 110,438,639 87,689,728
RECOMANDATIONS :--
1) Salary is a concern that comes under managerial remuneration , starting from House rent
allowance to Other perquisites thereby affecting Gross Remuneration . Volumes are speaking for
itself within just a year .
2) They are spending heavily on Advertisements and Publicity Expenses
So can there be a possibility to spend less on the 4 p’s of marketing mix i.e Promotion . Thus by
concentrating more on other aspects of marketing mix .
• Transmission division revenue – 679 million (stagnation of
growth…and stock of infdian railways)
• Revenue per dealer – 525.9/200 - 2.6 crore / dealer
• Customised industrial gearboxes
• Total expenses – 465 crore -> 525 crore
Thank You…!!!