DECLARATION I hereby declare that the Summer Internship Project report entitled “MARKET POTENTIAL OF ALCOVE TECHNOLOGIES Pvt. Ltd. IN NAGPUR” is an authentic work carried out by me under the guidance of Prof. ABHISHEK MUKHERJEE, Faculty, Magnus School of Business, Nagpur which is submitted for the partial fulfillment for the award of Master of Business Administration. This project is carried under the assistance of my company guide Ms. Rashmi. I further declare that the project carried by me is true to the best of my knowledge and no one else has submitted this project for the award of any degree or diploma to any other university.
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DECLARATION
I hereby declare that the Summer Internship Project report entitled
“MARKET POTENTIAL OF ALCOVE TECHNOLOGIES Pvt. Ltd. IN
NAGPUR” is an authentic work carried out by me under the guidance of Prof.
ABHISHEK MUKHERJEE, Faculty, Magnus School of Business, Nagpur
which is submitted for the partial fulfillment for the award of Master of
Business Administration. This project is carried under the assistance of my
company guide Ms. Rashmi.
I further declare that the project carried by me is true to the best of my
knowledge and no one else has submitted this project for the award of any
degree or diploma to any other university.
Date: Chandrashekhar Gajbhiye MBA Semester – II
Place:
ACKNOWLEDGEMENT
Successful and satisfactory completion of any significant task is the
outcome of invaluable aggregate contributions made by people from varied
fields from various radical directions explicitly or implicitly
First and foremost I would like to convey my sincere thanks to Prof.
Abhishek Mukherjee, Faculty Member, Magnus School of Business, Nagpur not
only for his valuable guidance but also for the unending encouragement that he
has given, for the successful completion of this project.
I am grateful to Mr. Mrutyanjay Pimplapure, Sr. Executive, Corporate
Relations Group, MSB, Nagpur for procuring this project, and providing the
facilities required for the completion of this project.
I would like to sincerely thank Ms. Rashmi, Marketing Manager, Alcove
Technologies Pvt. Ltd. and Mr. Ravi Rao, Chief Executive Officer, Alcove
Technologies for their valuable guidance and exposure of the corporate world.
My heartfelt thanks to all the members of Magnus Family and Alcove
Technologies Pvt. Ltd. for supporting me in the successful accomplishment of
this project.
Last but not the least I would like to thank my parents for encouraging
and supporting me and helping me in achieving pinnacle of success.
Chandrashekhar Gajbhiye
ABSTRACT
In today’s scenario Nagpur is booming in various sectors like IT, Insurance, Banking,
Pharmaceuticals, and Engineering with respect to educational and industrial facets. With the
advent of MIHAN (Multimodal International Hub At Nagpur) project their is tremendous
scope of Human resources in all sectors. To fulfill the requirements of various sectors and to
establish the firm in new market the study of market potential is required. The Summer
Internship Project topic “Market Potential of Alcove Technologies at Nagpur is helpful to
find out the following important aspects:
Potential Market: - It is a set of consumers who evinces interest in the marketers offer.
Target Market: - This is also called served market and refers to the market segment which a
firm chooses to serve. E.g. IT industries, banking sectors.
Market Penetration:- Market penetration refers to the number of clients /firms a company is
looking for to the no. of clients present in the target market. This ratio indicates the
opportunities for growth in the target market. By this topic Alcove Technologies may plan to
come up with strategies to exploit market potential and go for opportunities present in the
target market.
The topic is useful to find out the attraction of the client:-
i) Interest in the services provided by alcove tech. in nagpur.
ii) Income to be able to afford the services in nagpur market
iii) Access to the service/product
Market potential is the limit approached by the market demand as the industry’s marketing
expenditures approach infinity, for a given environment, in other market. In other words
market potential refers to the upper limit of market demand. There are three aspects involved
in defining market potential of Alcove Technologies at Nagpur
a) Defined market environment of nagpur
b) Marketing expenditure by the industry in nagpur
c) Market demand
1.1 INTRODUCTION OF MARKET POTENTIAL
MARKET POTENTIAL
MARKET
Market refers to a set of existing and potential buyers of a product/service.
POTENTIAL MARKET
This is set of consumers who evince interest in marketer’s offer.
TARGET MARKET
This is also called served market and refers to the market segment which a firm chooses to
serve
MARKET PENETRATION
Market penetration ratio refers to the total number of such consumers to the total number of
consumers’ in the target market. This ratio indicates the opportunity for growth in the target
market.
MARKET POTENTIAL Market potential is the limit approached by the market demand as the industry’s marketing
expenditures approach infinity, for environment.
THREE ASPECTS INVOLVED IN MARKET POENTIAL
a) Defined market environment
b) Marketing expenditure by the industry
c) Market demand
In this way the topic is helpful to alcove technologies to find out various factors to
establishing the firm in nagpur
MARKET DEMAND
Market demand refers to the, “total volume that would be bought by a defined time period in
a defined time period in a defined marketing environment under a defined marketing
programme”.
MARKET FORECAST
COMPANY DEMAND
This refers to a company’s share of the total market demand. It is subject to all the
determination of market demand plus the determination of the company’s market share.
COMPANY POTENTIAL
Company potential is the approached by company demand as its marketing effort increases
relative to its competitors. The absolute limit to this potential is the market potential and this
will be so only in a monopolistic situation.
SALES FORECAST
Sales forecast refers to the estimates of future sales of the company’s products. In a way, this
is the same as company demand.
MARKET POTENTIAL AND MARKET SIZING ANALYSIS
Market analysis services from Mapping Analytics help you know the economic opportunity
available to you in any geographic market. Whether you sell to consumers, to businesses, or
both, market sizing provides intelligence you need to deploy sales and marketing resources
effectively.
BENEFITS OF MARKET POTENTIAL ANALYSIS
Understand market potential for a single store, network of stores or a new market
Deploy resources effectively by ranking markets in priority order
Forecast total opportunity in terms of number of customers and revenue potential
Estimate your market share
Market: - This is often confused to imply a place where buyers and sellers meet. In reality
market only refers to a set of existing and potential buyer of a product/service. Place is only a
facilitator. In today’s marketing solution where buyer buy on the internet or on cell phones
and get their order delivered at home, place has ceased to ever perform the facilitating role.
Sellers represent competition to the firm or the alternatives from whom the buyer buys.
Potential Market: - This is a set of consumers who evince interest in marketers offer. It
may be noted that interest alone is not enough they must also have means (income) to buy it
and the offer should be accessible to them.
For e.g. Potential market of luxury homes are all consumer in the high income and
rich segment that have the resources to buy them. Also upper middle income and rich
segment who have the finance and the aspiration to acquire such a home are the potential
consumers. Now if these homes are made in all cities by several builders, it provides
opportunities for such a consumer- to own such a home. Thus, today it is the means (i.e.)
resources access and aspiration that define a potential market, for any Marketing offer.
Target Market: - This is also called as served market and refers to the market segment
which firm chooses to serve. Thus, in the above example of luxury homes, a builder may
choose to target, young professionals in major cities who have the resources or access to
resources and also aspire to own such a house.
Market Potential Ratio: - It refers to the set of consumers in the target market who have
bought luxury homes. Market penetration ratio refers to the total no. of such consumers to the
market. This ratio indicates the opportunities for growth in the target market. Other marketing
mix decision will be based on this decision.
Market potential:-
The forecasting exercise involves understanding market potential. Consider the example of a
product such as TV set. To estimate potential for T.V. set in India. We have to know no. of
household assuming that each household will have a TV sets, we can say that the market
potential of TV set is equal to no. of household in the country, and if we assume that six
people constitute a household, we have about 142 million households. Ideally, this is the
market. But then, we know that 25 percent of Indian Population is below the poverty level
and hence will not be able to buy TV sets. Besides almost 40% of Indians are in the low
income group and given the prices of TV sets, they too may not be afford it. So one is left
only 35% of total population which is the real market that need to be targeted one might ask
why this so? The answer lies in the fact that the size of any market is based on the no. of
buyers who might exist for a particulars marketing offer.
These buyers need to have three characteristics.
a) Interest for the product
b) Income to be able to afford the product
c) Access to the product
Based on these characteristics we have arrived; in the above example of television sets, at the
conclusion that 35% of total Indian population is the size of total market. The Market
Potential is the limit approached by the market demand as the industry marketing expenditure
approach infinity for a given environment.
In other words, market potential refers to the upper limit of Market demands.
Three aspects involve in defining market potential.
Defined market environment
Marketing expenditure by the industry
Market demand.
1.2 INTRODUCTION TO COMPANY
In company’s chosen lines of services offerings, company strives to be a leader
in service delivery, client satisfaction, professionalism, superior quality and innovation.
Alcove is an enabling company through its solutions and services. Alcove’s mission is to
assist global organizations to transform their business to next level of maturity.
A world class team of software and BPO professionals and engineers who have
been educated at the best universities in India and abroad are Alcove’s biggest asset.
Together, they bring expertise in information technologies, software design and project
management, business domain skills and client delivery and relations expertise.
Alcove also believes that company has the ability to source skills from multiple
locations, benefit their client organizations, and they are certain that their rates will help the
clients to achieve their goals of reducing the cost of application development and
maintenance.
Alcove is a leader in each technology domain and business domain. Those who
have been leaders are assisted by large pool of resources to deliver the software applications
and providing Systems Maintenance and support activities. Alcove Technologies have set up
and managed a large Offshore Development Center (ODC) in the past.
Alcove has delivered projects and services with CMM Level 5 / ISO 9001
Quality standards, managed large customer relationships/ business development /
organization & team building.
The word ‘Alcove’ is derived from a Latin word which means niche or special.
Alcove Technologies Pvt. Ltd. is a multi-faceted organization providing the following
Alcove services are managed by seasoned professionals and industry experts with decades of
experience in delivering strategic value to our global customers. Alcove’s professional
services team have served global organizations and delivered multiple complex projects in
each line of company services.
Alcove is recognized for its ability to provide thoughtful and efficient services based on an
intimate knowledge of company’s clients, business needs. Company strives to ensure their
clients, retain their competitive edge in the market place with their strong emphasis on quality
assurance, efficient processes, cost effective services and well qualified people.
Alcove has its objectives to provide cost effective and high quality solutions and services
using leading edge technologies through its secure state of the art facilities and infrastructure
to undertake large client projects in each of their service lines
VISION
In our chosen lines of business, we strive to the leader in service delivery, client
satisfaction, professionalism, superior quality and innovation. We aim to architect, develop
and implement state of the art and creative solutions and services for our global clients.
Our teams combine technical excellence with a superior understanding of clients
varied business needs and the environments in which they operate and delivery solutions and
products that exactly meets their requirements. We are committed to partnership with our
clients that add value and consistently exceed their expectations.
MISION
Alcove is an enabling company, through its solutions and services. Alcoves mission
is to assist global organization to transition their businesses to next level of maturity.
In carrying out its mission, Alcove aims to;
Assist our clients in transformation of business practices and processes in order to
establish and use secure, robust and efficient IT systems and Business processes
Provide state of the art, efficient and cost effective business solutions, computer
applications and related services and infrastructure support
Be a catalyst and a facilitator that integrates different stakeholders interests,
technologies and service providers, in order to develop sound business solutions for
mutual benefit
Adhere to and promote international best practices, standard and principles for the
benefit of our client organizations.
Alcove can ramp-up a large pool of skilled manpower on diversified platforms and
operating environments with extensive experience in software development, software
migration and product maintenance and support at short notices, if a client wants a quick can
be replicated at Alcove premises as required for a project.
Alcoves Human Resources (HR) philosophy, policies, and practices are built based
on outstanding employee relation management. The objective is to have the skills and staff to
support predictive, demand driven requests and needs for supporting our customers.
1.3 INTRODUCTON OF IT INDUSTRY
The computer systems design and related services industry is among the economy's
largest and fastest sources of employment growth. Employment increased by 616,000 over
the 1994-2004 periods, posting a staggering 8.0-percent annual growth rate.
The projected 2004-14 employment increase of 453,000 translates into 1.6 million
jobs, and represents a relatively slower annual growth rate of 3.4 percent as productivity
increases and offshore outsourcing take their toll. ("Industry output and employment
projections to 2014" by Jay M. Berman, Bureau of Labor Statistics).
However, the main growth catalyst for this industry is expected to be the persistent
evolution of technology and business' constant effort to absorb and integrate these resources
to enhance their productivity and expand their market opportunities.
Employment of computer and information systems managers is expected to grow
between 18 to 26 percent for all occupations through the year 2014. (Career Guide to
Industries 2006-07)
1.4 NEED OF THE STUDY
The project was undertaken basically by keeping in mind the best possible use of
available resources of Alcove technology covering predominantly, the study of the present
market potential of Alcove technology. The main reasons are
i. To study the Market Potential of Alcove technology in Nagpur in detail.
ii. How to increase the awareness of the Alcove technology in the corporate of
Nagpur?
iii. To ease the paper burden of staff by providing them information in the form of
compact disk.
iv. Increase the success rate for converting the positive clients into the loyal
clients of company in shortest possible time.
v. Study and suggestions for problems identified in market while going in
corporate.
vi. Analysis and rational assessment of job related knowledge.
vii. To search clients for the company so that company provide staffing solutions,
IT solutions, Recruitment and conduct training program.
1.5 AIMS AND OBJECTIVES
AIM:-
Market Potential of Alcove Technologies Pvt. Ltd. at Nagpur.
OBJECTIVES:-
1. To increase the sales of Alcove technology services and product by using marketing
communications such as Advertising branding, direct marketing, graphic design,
marketing, packaging, promotion, publicity, sponsorship, public relations, sales, sales
promotion, and online marketing.
2. To increase the awareness of the Alcove technology in the corporate of Nagpur.
3. To analyze the impact of promotion on customer buying behavior which help the
marketer for getting clients to avail an organization’s product and services to remain a
loyal long-term clients.
4. To study the market potential by analyzing the factors which govern the
Market Potential through identifying the market.
5. To study and understand Training and Development program of Alcove tech. pvt .ltd
6. To study different stages in training and development process along with identifying
Market Potential.
8. To suggest appropriate guidelines to Alcove to approach client.
1.6 VALUE ADDITION TO SELF AND COMPANY
In the final part of project, the responses and experienced opinions from companies and
managers are taken which proves to be very effective in providing services and the product. Their
rational analysis is done accordingly which clearly depicts the need of services and product to
improve performance. Some more suggestions are given at the end which I feel to be implemented
for improving overall performance of company.
As far as the researcher is concerned the in-depth study of market potential will be very
helpful in near future to company for solving the problems which arise while serving for their
clients. Also the understanding the clients’ choices will help immensely to know the clients
perception. The factors which were discussed in detail in the report are equally important.
While implement it in practical manner. It will definitely enhance the performance as well
as the image of the company.
This study gives me exposure of the corporate world which help me to enhance my
communication skills, leadership quality, persuasion and it helps to increase my creativity.
During my tenure at Alcove technology the researcher helped to provide service and the product worth approximately 3, 50,000 Rs. That is definitely a most beneficiary thing for the company during this period and also for me. It helps me to check my selling prospective.
Company has got new client for various services by which company can give service
to those client with satisfaction. During the project researcher has maintained relation with
Client Company. And gathered information of training program which followed by other
companies.
2.1 MARKET POTENTIAL MARKET
Market only refers to a set of existing and potential buyers of a product/service.
POTENTIAL MARKET
This is set of consumers who evince interest in marketer’s offer.
TARGET MARKET
This is also called served market and refers to the market segment which a firm chooses
to serve
MARKET PENETRATION
Market penetration ratio refers to the total number of such consumers to the total number
of consumers’ in the target market. This ratio indicates the opportunity for growth in the
target market.
MARKET POTENTIAL Market potential is the limit approached by the market demand as the industry’s marketing
expenditures approach infinity, for environment.
MARKET DEMAND
Market demand refers to the, “total volume that would be bought by a defined time period in
a defined time period in a defined marketing environment under a defined marketing
programme”.
2.2 MARKET FORECAST
COMPANY DEMAND
This refers to a company’s share of the total market demand. It is subject to all the
determination of market demand plus the determination of the company’s market share.
COMPANY POTENTIAL
Company potential is the approached by company demand as its marketing effort
increases relative to its competitors. The absolute limit to this potential is the market
potential and this will be so only in a monopolistic situation.
SALES FORECAST
Sales forecast refers to the estimates of future sales of the company’s products. In a way,
this is the same as company demand.
2.3 MARKET POTENTIAL AND MARKET SIZING ANALYSIS
Market analysis services from Mapping Analytics help you know the economic
opportunity available to you in any geographic market. Whether you sell to consumers, to
businesses, or both, market sizing provides intelligence you need to deploy sales and
marketing resources effectively.
BENEFITS OF MARKET POTENTIAL ANALYSIS
Understand market potential for a single store, network of stores or a new market
Deploy resources effectively by ranking markets in priority order
Forecast total opportunity in terms of number of customers and revenue potential
Estimate your market share
Market: - This is often confused to imply a place where buyer and sellers meet. In reality
market only refers to a set of existing and potential buyer of a product/service. Place is only a
facilitator. In today’s marketing solution where buyer buy on the internet or on cell phones
and get their order delivered at home, place has ceased to ever perform the facilitating role.
Sellers represent competition to the firm or the alternatives from whom the buyer buys.
Potential Market: - This is a set of consumers who evince interest in marketers offer. It may
be noted that interest alone is not enough they must also have means (income) to buy it and
the offer should be accessible to them.
For e.g. Potential market of luxury homes are all consumer in the high
income and rich segment that have the resources to buy them. Also upper middle income and
rich segment who have the finance and the aspiration to acquire such a home are the potential
consumers. Now if these homes are made in all cities by several builders, it provides
opportunities for such a consumer- to own such a home. Thus, today it is the means (i.e.)
resources access and aspiration that define a potential market, for any Marketing offer.
Target Market: - This is also called as served market and refers to the market segment
which firm chooses to serve.
Thus, in the above example of luxury homes, a builder may choose to
target, young professionals in major cities who have the resources or access to resources and
also aspire to own such a house.
Market potential ratio: - It refers to the set of consumers in the target market who have
bought luxury homes. Market penetration ratio refers to the total no. of such consumers to the
market. This ratio indicates the opportunities for growth in the target market.
Other marketing mix decision will be based on this decision.
Market potential:-
The forecasting exercise involves understanding market potential. Consider the example of a
product such as TV set. To estimate potential for T.V. set in India. We have to know no. of
household assuming that each household will have a TV sets, we can say that the market
potential of TV set is equal to no. of household in the country, and if we assume that six
people constitute a household, we have about 142 million households. Ideally, this is the
market. But then, we know that 25 percent of Indian Population is below the poverty level
and hence will not be able to buy TV sets. Besides almost 40% of Indians are in the low
income group and given the prices of TV sets, they too may not be afforded it. So one is left
only 35% of total population which is the real market that need to be targeted one might ask
why this so? The answer lies in the fact that the size of any market is based on the no. of
buyers who might exist for a particulars marketing offer.
These buyer need to have three characteristics.
d) Interest of the product
e) Income to be able to afford the product
f) Access to the product
Based on these characteristics we have arrived; in the above example of television sets, at
the conclusion that 35% of total Indian population is the size of total market. The Market
Potential is the limit approached by the market demand as the industry marketing
expenditure approach infinity for a given environment.
In other words, market potential refers to the upper limit of Market demands.
Three aspects involve in defining market potential.
a) Defined market environment
b) Marketing expenditure by the industry
c) Market demand.
Consider that the TV industry decides to cut its costs and that many manufactures
plan a new financial scheme, with no cash down payment, low interest rates and
payment through 24 monthly installments.
The government also reduce the excise duty on TV sets and customs duty on kits and
components use in TV manufacturing and more regional language multiple interest chances
are launched. All these have the effect of pushing up the market potential as new customer
groups will now be able to afford the product. Recession, on the other hand, sees a decrease
in sales. In fact they exist the product market and market potential reduces thus environment
plays a key role in Market Potential estimation.
Sales
Planned expenditure
Q2 Market potential
Q3 Market Forecast
Q1Market Minimum
E
Industry Expenditure on Marketing
(a)
(a) Marketing demand as a function of industry marketing expenditure
Industry Expenditure on Marketing
(b)
Marketing demand in two different Marketing Environment
Fig. Market Potential Demand and Forecast
Source:- Saxena Rajan ‘Marketing Management’ Market Measurement and forecasting,
Tata McGraw hill publishing company, third edition; chapter 10 page no.232
Defining Market Potential Analysis
Market potential analysis is a strategic tool to identify market
opportunities and to make resource investments in markets where they
will have the greatest return in the long run. Market potential analysis is not
used for short-term forecasting, but can help to target markets with high growth potential in
the mid to long term. Market potential analysis enables companies to: