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SUMMER PROJECT REPORT ON Strategic Marketing Intelligence In partial Fulfillment of Award of Post Graduate Diploma In Business Management By VIKRAM KUMAR MANDAL Under the guidance of Prof. AVK Murthy PGDM (BM) Entrepreneurship and Management Processes International New Delhi – 74 July 2010
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Ingersoll Rand summer project

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SUMMER PROJECT REPORT ON

Strategic Marketing IntelligenceIn partial Fulfillment of Award of Post Graduate Diploma In Business Management By VIKRAM KUMAR MANDAL Under the guidance of Prof. AVK Murthy

PGDM (BM) Entrepreneurship and Management Processes International New Delhi 74 July 2010

DECLARATION I VIKRAM KUMAR MANDAL hereby declare that the project entitled STRATEGIC MARKETING INTELLIGENCE is my original work, done by me. Now it is an asset of EMPI Business School, New Delhi. All the rights for using this project report lie with the company. Unauthorized copying, hiring, broadcasting, or rental of this project without permission from the organization will be considered illegal. VIKRAM KUMAR MANDAL

ACKNOWLEDGEMENT Presenting a project of this is an arduous task, demanding a lot of time. I cannot in full measure reciprocate the kindness shown and contribution made by various persons in this endeavor. I will remember all of them with gratitude. I am very grateful to my mentor Mr. A.V.K. MURTHY for his significant support extended for the successfully completion of the project as she supported me all through the project and devoted her precious time for me I am always beholden to my God, for always being with me and showing me the right way, my family, for always doing favors to me and my friends and colleagues consistently helped with encouragement, creative inputs and criticism throughout the project work, for always lifting my sights to higher vision, raising my personality beyond normal limitation and for realizing me my strengths and potential. VIKRAM KUMAR MANDAL

INDEX 1. Acknowledgement 2. Executive Summary 3. Company Profile 3 5 6

4. Vision 7 5. Corporate social responsibility 8 6. Products offered 9 7. Introduction 11 8. Product under study 16 9. Objective of Study 10. Research Methodology 11. Questionnaire

18 18 20 31 32 33

12. Findings and suggestions 13. Bibliography 14. Annexure

Executive summary

Ingersoll Rand Company is a multinational company and is providing industrial technologies in as Ingersoll Rand (India) ltd. It is providing air compressors for various industrial requirements ranging from 1 Hp to 2000Hp capacity of various models

The company is a market leader in Compressors division but the volume of sales is not satisfactory in the low capacity compressors ranging below 50 Hp, They intend to know the reasons and have started a program called as customer on demand which gives the database of the consumer who are using an air compressor The study and analysis of the marketing research reveals that Ingersoll Rand compressors are facing huge competition from local manufacturers who are doing really well in low capacity range compressors. To improve the volume of sales the main obstacle to Ingersoll Rand Company is the cost of the compressor and by reducing it there is a considerable increase in the volume of the sales.

Company Profile:

Ingersoll-Rand (India) Limited is a part of the Ingersoll Rand Company, a global innovation and solutions provider with powerful brands and leading positions within its markets. Ingersoll-Rand (India) Limited has its presence in India since 1921. The company established its first manufacturing plant in India in 1965 and became a public limited company in 1977.Today Ingersoll-Rand has manufacturing facilities in Ahmadabad that is ISO 9001:2008 certified and in Sahibabad that is ISO 9001:2000, ISO 14001:2004 & OHSAS 18001:2007 Certified. Ingersoll Rand products are widely appreciated in the market for their superior quality and reliability. With a strong sales presence in over 15 locations across the country and a strong national distributor network, Ingersoll-Rand (India) Limited is a dominant player in its business of providing solutions for the Infrastructure development, Industrial Solutions and Climate Control markets. It is amongst the country's largest exporters of engineered goods. With a history dating back to 1871, Ingersoll Rand and its family of brands represents a proven history in construction and mining, industrial and commercial markets. Through acquisitions, innovations and customer focus, today's Ingersoll Rand offers marketleading solutions and services that enable customers to create progress through a variety of industries and markets that touch everyday life. Ingersoll-Rand (India) Limited is an India-based company. It is a part of the Ingersoll Rand Company, a worldwide solutions provider. With a presence in over 15 locations across India and a national distributor network, the Company provides solutions for the infrastructure development, industrial solutions and climate control markets. Ingersoll-Rand (India) Limited is an exporter of engineered goods. The Company operates in the air solutions (AS) segment, which consists of reciprocating compressors, centrifugal compressors and system components. Ingersoll-Rand (India) Limited has manufacturing facility in Ahmadabad, India

Vision:Ingersoll Rand is a GLOBAL industrial enterprise with market leading brands, we are dedicating to driving shareholder value by achieving Dramatic Growth . By focusing on innovative solutions for our customers Operational Excellence .By pursuing continuous improvement in all of our operations Dual citizenshipBy bringing together the talents, energy, enthusiasm of all Ingersoll Rand people

Brand Values: IntegrityIngersoll Rand act in the highest legal and ethical standards in everything we do

RespectIngersoll Rand communicate and act in ways that respect and value the worth of all people, cultures, viewpoints and backgrounds

TeamworkIngersoll Rand team work together and share resources to provide greater value to our customers, employees, business partners and shareholders

InnovationIngersoll Rand use diverse skills, talents and ideas to develop innovative, imaginative and creative solutions to challenges

CourageIngersoll Rand speak up for what is right and take measured risks so the company can thrive

Corporate Social ResponsibilityIngersoll Rand sets an example by undertaking earnest Corporate Social Responsibility Initiatives. Ingersoll Rand machines and personnel have been actively involved in disaster relief work in regions affected by natural calamities such as during the Gujarat Earthquake (2001) and the Tsunami (2004). Ingersoll Rand has successfully partnered with the defense and other government agencies in these massive operations. Ingersoll Rand machines have come to be recognized as invaluable assets in disaster management.

Best brands from Ingersoll rand: Club car:As a division of Ingersoll Rand - the world leader in creating and sustaining safe, comfortable and energy efficient environments - Club Car is the worlds largest manufacturer of electric vehicles, and is proud to be on the forefront of environmentally responsible Zero Emission Vehicle (ZEV) technologies The Club Car product portfolio includes commercial utility vehicles, multi-passenger shuttle vehicles, and rough-terrain and off-road utility vehicles

Hussmann:Hussmann, a global manufacturer of refrigeration and food merchandising equipment, operates as part of the Ingersoll Rand Climate Control Technologies Sector Since 1906, Hussmann has been inspiring solutions by helping retailers preserve and display fresh foods. Today Hussmann is a world leader in manufacturing, selling, installing and servicing its merchandising equipment and refrigeration systems to customers throughout the world.

Hussmann serves a wide variety of customers involved in the global cold chain. These include supermarkets, mass merchants, warehouse clubs, convenience stores, drug stores and foodservice establishments. Hussmann inspires solutions in the areas of merchandising, food safety, shelf life extension, sustainability and life cycle value. Hussmann is focused on addressing the needs of its customers, providing solutions that provide superior value for their businesses.

SCHLAGE:Schlage has become a market leader in home and industrial security solutions. For more than 85 years Schlage has been providing innovative security solutions for schools, hospitals, hotels, condominiums and a host of other commercial buildings. Today, Schlage is at the forefront of cutting-edge technology such as wireless security products, biometrics and video solutions. With a wide range of products

THERMO KING:Thermo King is a global manufacturer of cooling systems supplying global markets. Its ten plants in seven countries design and builds refrigeration and heating units for trucks, trailers, rail cars and ocean-going containers. And air conditioning for buses, trains and urban mass transit.

TRANE:Trane, a business of Ingersoll Rand - the world leader in creating and sustaining safe, comfortable and energy efficient environments - improves the performance of homes and buildings around the world

Journey of Ingersoll Rand since 18711871 Simon Ingersolls steam-powered rock drill is patented Ingersoll Rock Drill Company is formed 1872 Rand & Waring Drill & Compressor Company is formed 1879 Rand & Waring changed to Rand Drill Company 1888 Ingersoll Rock Drill Company merges with Sergeant Drill Company to form IngersollSergeant Drill Company 1894 WR Grace named president of Ingersoll-Sergeant 1896 J. George Leyner invents the hammer drill 1902 Type X portable compressor line is introduced by Rand 1904 Panama Canal is started using Ingersoll-Sergeant drills 1905 Merger of Ingersoll-Sergeant Drill Company and Rand Drill Company to form IngersollRand Company. 1906 William Saunders becomes first president of Ingersoll-Rand 1907 Imperial Pneumatic Tool is acquired 1909 A.S. Cameron Steam Pump Works is acquired

1912 Jackhammer drill is invented (Trade name: Jackhammer) 1912 J.G. Leyner Engineering Works Company is acquired 1913 William Saunders becomes Ingersoll-Rands first Chairman 1925 Develops first commercially successful diesel electric locomotive engine; first diesel electric locomotive sold to Central Railroad of New Jersey 1927 Provides jackhammer drills and air compressors for work on Mount Rushmore 1934 First air-powered Impactool introduced 1936 George Doubleday elected chairman 1942 The Company is recognized for its wartime contributions with the coveted Army-Navy E Award

1948 The Quarrymaster is introduced; known as the first modern self-contained, mobile, airpowered rock drill for large-diameter blast holes 1954 Worlds first atomic-powered submarine is equipped with Ingersoll-Rand boiler-feed pumps and compressors 1955 Downhole drill is introduced 1955

Daniel C. Keefe elected chairman of the board 1959 Robert Johnson elected chairman 1967 William L. Wearly elected chairman 1968 The Torrington Company manufacturer of bearings and motion control products, is acquired 1968 Centac air compressor is introduced 1972 Company executive offices move from NYC to Woodcliff Lake, New Jersey 1974 Acquires Schlage Lock Company 1977 Builds the worlds fastest rescue drill for the South African Chamber of Mines 1980 Thomas A. Holmes elected chairman 1982 High speed centrifugal pump introduced 1986 Ingersoll-Rand and Dresser Industries form Dresser-Rand 1987 The Company re-enters China through joint venture with Xuanhua Pneumatic Machinery Limited 1988 Theodore H. Black becomes Chairman 1990

The ARO Corporation is acquired 1993 James E. Perrella elected Chairman 1995 Acquires Clark Equipment Company, including Bobcat, Club Car and Blaw-Knox 1996 Steelcraft, manufacturer of steel doors and frames, is acquired 1996 Zimmerman International Corporation, manufacturer of ergonomic material handling systems, is acquired 1997 Acquires Newman Tonks, European producer of architectural hardware 1997 Thermo King, manufacturer of transport refrigeration equipment, is acquired

1999 Harrow Industries, is acquired, including Locknetics (electronic security products). Recognition Systems (biometric security). Ives and Broadway (architectural hardware and bath fixtures.) 2000 Herbert L. Henkel elected chairman Acquires 100% ownership of Dresser-Rand Hussmann, manufacturer of stationary refrigeration equipment, is acquired Acquires Interflex, provider of time and attendance, scheduling and security systems Superstav, Czech Republic-based manufacturer of compact equipment, is acquired 2001

Kryptonite Corporation manufacturing of portable security products, is acquired 2003 Completes sale of Torrington 2004 Completes sale of Drilling Solutions and Dresser-Rand 2005 Acquires CISA, ITO and SuperRay Acquires majority interest in Shenzhen Bocom System Engineering Co. Ltd., a Chinabased provider of Integrated Security Technologies and Services Acquires Dolphin Electromagnetic Technologies, an India-based Provider of Integrated Security Technologies and Services Acquires Astrum GmbH, a Leading Developer of Personnel Scheduling and Management Software and Services Acquires United States Distribution Rights for Tramac Branded Hydraulic Breakers Establishes a Joint Venture for the Manufacture and Distribution of Door Locks with Taiwan Fu Hsing Industrial Co.

2006 Celebrates 100 Years of Trading on the New York Stock Exchange Acquires Geith International, an Ireland-based Equipment Attachments Manufacturer Acquires the Global Low-Pressure Air Business of BOC Edwards Acquires ZEKS Compressed Air Solutions, a Leading North American Provider of Compressed Air Treatment Technologies 2007 Acquires Remaining Interest of Instrum Rand Sells its Road Development Business Unit for $1.3 Billion to AB Volvo Signs an agreement to purchase privately owned Officine Meccaniche Industrial srl (OMI), a leading European provider of compressed-air treatment equipment Sells its Bobcat, Utility Equipment and Attachments Business Units for $4.9 Billion to Doosan Infracore

Announces definitive agreement to acquire Trane Inc. (formerly American Standard Companies) in a transaction valued at approximately $10.1 billion 2008 Completes acquisition of Trane Inc., a global leader in indoor climate control systems, services and solutions in a transaction valued at approximately $10.1 billion

2010 Ingersoll Rand is now valued at approximately $ 13 billion

Air Compressor:Air compressor is a versatile device used for supplying the compressed air for special requirements, it is used for any purpose that requires air in the reduced volume or increased pressure It is mostly used in the refrigerators, air conditioners, jet engines, commercial businesses, refining industries, manufacturing industries and automotive industries. Air compressor is being used in industries for more than 100 years.

Air compressor types:Air compressors are available in various types, which are designed to meet different requirements. Each of the type of air compressor may differ in cooling method, compression stages, lubrication and power source. Following are the three major types of air compressors a) Reciprocating air compressor b) Rotary air compressor c) Centrifugal air compressor

Reciprocating air compressor:Reciprocating air compressor makes use of piston to compress air and store it in a storage tank. Based on the number of compression stages, reciprocating type can be a single-stage or doublestage compressor. In single-stage, only one piston is used to compress air, whereas in doublestage compressor, there are two pistons for air compression.

Rotary air compressor:The rotary screw air compressors have become the most popular source of compressed air for industrial applications. A major reason is its simple compression concept. Air enters a sealed chamber where it is trapped between two contra- rotating rotors. As rotors intermesh, they reduce the volume of the trapped air and deliver it compressed to the proper pressure level. This simple compression concept with continuous contact cooling, allows the rotary screw air compressor to operate with temperatures approximately one half that generated by a reciprocating compressor

This lower temperature enables the rotary screw to operate in a fully loaded continuous duty cycle 24 hours per, 365 days per year, if necessary. Its ability to operate for extended periods of time makes the rotary compressor ideal for demanding industrial applications.

Centrifugal air compressor:Centrifugal air compressor or dynamic compressor is applicable when the demand for compress air is high. In this air compressor, a high speed rotating impeller increases velocity of air, which is directed towards a diffuser that converts the velocity of air into pressure. Centrifugal air compressor requires more energy to operate than the other two air compressors.

How an air compressor works:Air compressor consists of two major components - compressing mechanism and a power source. The compressing mechanism can be a piston, rotating impeller or vane, whereas the power is supplied by an electric motor or other energy sources. The compressing mechanism, as the name suggests, helps in compressing atmospheric air by using energy from the power source. The basic working principle of an air compressor is to compress atmospheric air, which is then used as per requirements. In the process, atmospheric air is drawn in through an intake valve; more and more air is pulled inside a limited space mechanically by means of piston, impeller or vane. Since the amount of pulled atmospheric air is increased in the receiver or storage tank, pressure is raised automatically. In simpler terms, free or atmospheric air is compressed after reducing its volume and at the same time, increasing its pressure. There is a pressure setting knob that can be manipulated as per the requirement of the operator. When the pressure increases to the maximum pressure setting in the receiver or tank, the pressure switch shuts off the intake of air in the compressor. When the compressed air is used, the pressure level falls. As the pressure drops to a low pressure setting, the pressure switch is turned on, thus allowing the intake of atmospheric air. Thus, the cycle continues in an air compressor.

Objectives of Project: To find market share of Ingersoll Rand compressors across India in selected regions To know the major competitors of Ingersoll Rand across India To find the unexplored market for future needs to increase market share To collect database of potential customers To know the customer expectations about the compressors

Marketing Research Methodology: Exploratory research:Exploratory research provides insights into and comprehension of an issue or situation, exploratory research is a type of research conducted because a problem has not been clearly defined.

Information process and source: Primary data: The data collected is the information that has been gathered for the researchobjectives at hand and is not collected for some other purpose other than research at hand The data collected is by visiting the companies personally and collecting the data from owners, managers, supervisors, and workers who are familiar with the air compressor on which they are working

The survey is organized all over India and in Bangalore various companies located inindustrial areas like Yeswanthpur, Peenya and kumbalgodu are covered to collect the primary data

Data was collected by face to face interviews and over phone No of companies visited 218 The questionnaire used is included with open ended, closed ended and scaled responses Sampling method Area sampling: A method in which the area to be sampled is subdivided into smaller blockswhich are selected at random and then sub sampled or fully surveyed; method is used when a complete frame of reference is not available.

Analysis of the Questionnaire:

Q. Since how many years you are using a compressor?

The compressors being used for more than 20 years and are not replaced Most of them are purchased recently from 4 years to 8 years

Q. What is the capacity of the compressor which you are using?

As per the requirement of the Branch manager of Ingersoll Rand the max capacity ofthe compressor is 20 HP and below 20 HP ranging up to 1 HP

Q. Are you satisfied with the current compressor?

Among the respondents 78.3 % are satisfied consumers with the compressor theyare using and there is little scope for them to change the compressor

21.7% of the respondents are not satisfied due to various reasons like after saleservice, availability of spare parts etc.

Q. Are you aware of Ingersoll Rand Air Compressor?

Almost 83 % of the respondents are aware of Ingersoll Rand compressor This suggests that people are well aware of the various options available in market before they purchase Approx 17% of the respondents are not aware of Ingersoll Rand compressor, so there is a necessity to make an advertisement campaign to make people aware of the compressor

Q. How do you rate the following aspects for purchasing a compressor?Low Cost Long lasting Consistency Certifications After sale service Spare parts Consumers rating in the aspect of cost Medium High Not considered

The general perception leads to a conclusion that the cost of the compressor should be comparatively low from the diagram 60% opting for low cost The consumers are not willing to pay high even there is considerable quality in the compressor as the data is valid for compressor below 20 HP

Q. How do you rate the following aspects for purchasing a compressor?

Customers rating in the aspect of long lasting

73.3% of the respondents are opting for a compressor which works for long time , from the data it is evident that even the compressors are being used for more than 20 years 4.6% of the respondents are not looking for long lasting feature probably to meet short term objectives

Q. How do you rate the following aspects for purchasing a compressor?

Customers rating in the aspect of Consistency

81% of the respondents are looking for a compressor which is consistent Ingersoll Rand compressors are consistent with the working condition but there should be a tradeoff between the cost and other features

Q. How do you rate the following aspects for purchasing a compressor? Customers rating in the aspect of Certifications

Half of the respondents interviewed are not particular about their compressor meeting all the certifications

Q. How do you rate the following aspects for purchasing a compressor?

Customers rating in the aspect of After sale service

73.7% of the respondents are looking for feature of after sales service Most of the local manufactures are not good in giving after sale service

Q. How do you rate the following aspects for purchasing a compressor?

Customers rating in the aspect of Spare parts

52.5 % of the respondents are looking for availability of spare parts after purchasing the compressor 30% are looking for spare parts moderately

Q. What is your opinion about Ingersoll Rand air compressor?

The general perception of Ingersoll rand company air compressor among the respondents 55% of them are considering it as costly 18% are considering it consistent 17.5 % are considering it reliable This strongly suggests that there is a need to compromise on the aspect of cost

Findings & Suggestions

The Ingersoll Rand company compressors are maintaining very high standards as per thespecifications of India and U.S.A standards

The consumers are looking for local manufactures of compressors as they are cheap andsturdy because the basic purpose of a compressor is to compress the air and it is being met

A compressor once purchased is used for more than 10 years depends on themaintenance, and installation place of the compressor

The Main competitors of Ingersoll Rand compressors are Chicago pneumatic, ELGI, MR,Mecco and SRIRAM compressor in the category of below 50 HP

Most of the compressors are competitors especially in the low capacity range i.e. under50 HP

Ingersoll Rand is a market leader in compressors with a wide range of up to 2000Hpcentrifugal compressors

If the company is ready to compromise on the cost aspect it can have more sales like it isdoing in high capacity compressors range

Bibliography:

http://www.ingersollrand-india.com/

http://company.ingersollrand.com/Pages/default.aspx

The catalogues provided by the company

Annexure: Questionnaire.

1. Name of the respondent:

2. Company/Industry name:

3. Personal details: Contact No: E mail Id : 4. Address of the company:

5. Which company air compressor you are using at present

6. What is the Model No of the Air Compressor ..

7. What is the capacity of the compressor..

8. Since how many years you are using the compressor a. Less than 5 years b. 5 years to 10 years c. 10 years to 15 years d. More than 15 years 9. Are you satisfied with the current compressor a. Yes b. No

10. Are you aware of Ingersoll Rand Air compressor a. Yes b. No

11. How do you rate the following aspects for purchasing a compressor Low Cost Long lasting Consistency Certifications After sale service Spare parts 12. How many hours do you use the compressor per day. Medium High Not considered

13. What is your opinion about Ingersoll Rand air compressor a. Reliable b. Consistent c. Costly d. Others, (Please specify)