Project on Guglani

PROJECT ON

ANALYZING AND COMPARING MARKETING AND FUNCTIONAL STRATEGIES OF GUGLANI CONSTRUCTIONS AND SIMPSON CONSTRUCTIONS

Submitted by:

Name- SUGAM GUGLANI

Registration no.- FT-10-IB-852

CERTIFICATION

GUGLANI CONSTRUCTIONSH.NO 580 SECTOR-9 FARIDABAD

TELEFAX- 0129-4158797 CELL: 09873737979

This is to certify that Mr. Sugam Guglani of IILM-GSM college has done his summer internship training in GUGLANI CONSTRUCTIONS from 9th May to 25th June 2011.

Ravinder Kumar Guglani

(Head of Guglani Constructions)

DECLARATION FORM

I hereby declare that the Project work entitled Comparing Guglani

Construction’s marketing and functional strategies with International

construction strategies submitted by me for the Summer Internship

during the Post Graduate Diploma in Management Program to Institute

for Integrated Learning in Management, Greater Noida is my own

original work and has not been submitted earlier either to IILM GSM or to

any other Institution for the fulfillment of the requirement for any course of

study. I also declare that no chapter of this manuscript in whole or in part is

lifted and incorporated in this report from any earlier / other work done by

me or others.

Place : FARIDABAD

Date : Signature of Student

Name of Student : SUGAM GUGLANI

Address : H.NO 580 Sec 9

ACKNOWLEDGEMENT

We think if any of us honestly reflects on who we are, how we got here,

what we think we might do well, and so forth, we discover a debt to others

that spans written history. The work of some unknown person makes our

lives easier every day. We believe it is appropriate to acknowledge all of

these known persons; but is also necessary to acknowledge those persons,

we known have directly shaped our loves and our work.

I express my gratitude to Ravinder Kumar Guglani for giving me

opportunity to work with him and make the best out of my internship.

I thank my college, IILM for being the constant driving force to put to

practice, the theoretical knowledge that I imparted from the program.

I thank my mentor Mrs. Ritu Sehjpal for taking me through the course of

internship.

Last but not the least, I take this opportunity to thank my parents and

friends who have been with me and offered strength and moral support.

Sugam Guglani

Executive Summary

My Project is Marketing and Functional strategies of Guglani Constructions.

The study was conducted at various sites in Faridabad.

The project was of 8 weeks duration. During the project, I had a discussion with the executives and staff to collect the data and also made use of company records and annual reports. The data collected were then compiled and analyzed.

CompanyGuglani Construction company is a licensed designed/build firm with a staff of professionals skilled in architectural design and construction management. Ravinder Kumar Guglani established the business in 1990 to fill the needs of the community for a commercial builder. For early 22 years Guglani name in construction has stood for quality, integrity and progress.

ServicesGUGLANI CONSTRUCTIONS offers comprehensive services designed allow the company to do whatever it takes to finish a project. Some of these services include; design work, remodeling and alterations, permitting, site preparation, carpentry, cement foundations, painting, and plumbing and utilities installation.

MarketThe construction area is booming at this moment, overall business growth during the past seven years has averaged approximately 9.5% and is expected to continue for at least the next four years. This makes for a very attractive market for Contractors.We will be concentrating on the customers that will provide us with the greatest margin, in other words those clients desiring office building construction.

INDEX S.NO CONTENT PAGE

1. Executive summary 5

2. Introduction of Company 6-12

Introduction 6

Mission 7

Vision 8

Objectives 9-10

SWOT Analysis 11-12

3. Introduction of project 14-26

Marketing Strategies of Guglani construction 14

Marketing Strategies of Simpson construction 15-16

Functional strategies of Guglani constructions 17-18

Functional strategies of Simpson constructions 19-21

Challenges/ Problems 22-23

Measures to overcome 24

Our Projects 25-31

Conclusion 32

Bibliography 33

MISSION

Since 1990, Guglani Constructions has become the construction solution for regional retailers. High-volume market leaders in

industries such as finance, mobile communications, specialty housing turn to Guglani Constructions for all construction services. New stores, open-store remodels, re-branding campaigns and regulatory compliance are all handled by one source. Guglani Constructions begins with preconstruction planning and does it all: design, budget planning, pricing, site surveys, permitting, construction work and more. Start to finish.

Unique features such as dedicated program managers, customizable web-based online project management tools, and multiple-location national capability set Guglani Constructions apart. From blue-collar expertise on the construction site to sophisticated business acumen in the office, brings an educated mentality and consultant’s approach rarely combined in the construction trade.

“We service our clients so they go nowhere else for their construction needs.”

THE VISION

Simple goals for success: Get better to grow strategically.

Process improvement. People improvement. Performance improvement. Company growth happens in proper balance with performance. In servicing clients with excellence, Guglani Consrtuctions seeks to align itself with retailers who can leverage its unique services: three brands for planning, executing and finishing. In turn, these clients become strategic growth partners.

“We want to provide excellent customer service. In doing that, we will continue to be profitable and grow at the right pace.”

OBJECTIVES

At Guglani Constructions, we know from experience that there are three important elements to a successful project: Professional workmanship, quality materials and effective customer relations. To accomplish these objectives:

They maintain owner and management involvement in all our field operations – our owner and management team have over 20 years combined experience in the construction and development fields.

They keep constant communication between our on-site personnel and central office. This enables us to expedite work and quickly address on-site issues to keep jobs on schedule.

Their professional office staff is trained to handle customer calls promptly and efficiently. Our sales staff has the product knowledge to help you choose the right product, suited to your specific needs. And we maintain a 24-hour emergency phone number so you can reach us anytime, day or night.

They offer the peace of mind you get from our own five-year labor and material limited warranty and extended limited warranties backed by the largest construction material manufacturers in Faridabad.

They belong to the Better Business construction, Faridabad Contractors Association and Rental Housing Association of Faridabad.

SWOT ANALYSIS

STRENGTH

1) Employment in the field of construction.2) Private sector housing boom and commercial building

demand.3) Low cost, well educated and skilled labor.4) Sufficient availability of raw material and natural resources.

WEAKNESS

1) Distance between construction projects reduces business efficiency.

2) External allocation of large contracts becomes difficult.3) Huge amount of money is needed to be invested in this

industry.4) Chances of natural disadvantage.

OPPORTUNITIES

1) Continuous private sector housing boom will create more construction opportunities.

2) More flexible delivery techniques are now available.3) Financial support like loan, insurance and growth in income

of people is in support of construction company.4) Changing construction techniques creates more

opportunities for our businesss.

THREATS

1) Current economic situation may have an adverse effect on our construction business.

2) Infrastructure safety is a challenging task for our business.3) Lack of political willingness and support on promoting new

strategies.4) Inefficient accessibility in planning and concerning the

infrastructure and signs.

INTRODUCTION OF THE PROJECT

COMPARING MARKETING STRATEGIES OF GUGLANI CONSTRUCTIONS WITH INTERNATIONAL CONSTRUCTION COMPANY

Marketing strategies of GUGLANI CONSTRUCTIONS

1) Advertisements via Banners, pamphlets, newspapers, internet.

2) Dress code of laborers and name and phone no. written on their dress.

3) Contacting various architects and tell them to recommend us if somebody is in any need of any contractor and in return offering him some percent of profit share.

4) Offering the prospects with some beneficial schemes such as-

Silver scheme (providing the customer only with a structure and the rest of the work he will do himself)

Golden scheme (offering them with fully painted rooms, fans, lights, curtain rods and sufficient wood work)

Platinum scheme (offering the customer with a fully furnished home including every facility such as wooden floorings, air conditioners, geezers, modular kitchen and bathrooms etc)

Marketing strategies of Simpson constructions.

Prioritize Customers

In the construction business, it takes only a few good customers to make up the substantial part of your income. Define who your best customers are and stage your advertising around them. Narrowing your prospects ensures that your marketing dollars do not go to waste.

Localize Marketing

When you are on-site in a lived-in neighborhood, there are potential customers all around. Place a sign on the corner with your name and tag line. Distribute door hangers that tell a little more about your services. You can even ring doorbells while placing door hangers to present a more personal message.

Create a Website

You need an online presence. Your website should have contact information and a digital resume. Feature your best work and let your potential customers know what your benefits are. Include customer testimonials and your own credentials. Include pricing and information on the costs of building and remodeling.

Become an Expert

If you have worked in construction very long, you are sure to have a few tips and tricks in your pocket. Offer a newsletter with advice and information. A weekly or monthly email newsletter doesn't cost much and keeps you on your customers' minds. Write blogs and articles for placement online with your name and website listed in the "About the Author" section. You may need to hire a writer; to keep costs low, hire a local college student at a lower price than a professional.

Reward Referrals

Referrals are one of the best ways to gain customers. Offer your current customers a gift card or cash when they bring you

business. When your business is strong and your customer service is excellent, the referrals will not be hard to come by. Print business cards to make referrals easy for your customers. Simply hand out extras and ask customers to give them out when referring your business to others.

Sell Your Specialty

Your company provides a service in a way that others do not. You may work special hours that accommodate customers better. You may have a large crew and finish jobs in amazingly short periods. Or you may do specialty work that is not offered in your area. However you are unique, advertise that quality by talking about it or creating a tag line that can be placed on marketing materials such as door hangers and business cards.

COMPARING FUNCTIONAL STRATEGIES OF GUGLANI CONSTRUCTIONS WITH INTERNATIONAL CONSTRUCTION COMPANIES

FUNCTIONAL STRATEGIES OF

GUGLANI CONSTRUCTIONS

(Following details are for a 1500 sq ft house)

BRICKS

Approx. 40,000 pieces X 3.5 Rs. per piece= Rs. 1,40,000

CEMENT

450 Bags X 280 Rs. per bag = Rs. 1,26,000

STEEL

Approx. 2.5 Kg / sq. ft. X 40 Rs per Kg. = Rs. 1,50,000

SAND / STONE DUST

Approx. 3000 cubic ft. X 35 Rs. per cubic ft. = Rs. 1,05,000

MARBLE

Approx. 1600 sq. ft. X 50 Rs. per sq. ft. = Rs. 80,000

LABOR

120 Rs. per sq. ft. X1500 sq. ft. = Rs. 1,80,000

Rs. 7,81,000/1500 (sq. ft.)=Rs.520/sq. ft.

Above stated cost estimate is only for a structure of a 1500 sq. ft. building.

Distribution of cost

BricksCementSteelSandMarbl;eLabourProfit

FUNCTIONAL STRATEGIES OF

SIMPSON CONSTRUCTIONS

MUD AND CLAY

The amount of each material used leads to different styles of buildings. The deciding factor is usually connected with the quality of the soil being used.

2500 cubic ft. X 1$ per cubic ft. = $ 2500

ROCK

Rock structures have existed for as long as history can recall. It is the longest lasting building material available, and is usually readily available.

1000 cubic ft. X $ .75 per cubic ft. = $ 750

CONCRETE

Concrete is a composite building material made from the combination of aggregate and a binder such as cement.

1000 cubic ft. X $ 1.2 per cubic ft. = $ 1200

METAL

Metal is used as structural framework for larger buildings such as skyscrapers, or as an external surface covering. There are many types of metals used for building. 

Approx 3 Kg per sq. ft. X $ 1 per kg. = $ 4500

CEMENT COMPOSITES

Cement bonded composites are made of hydrated cement paste that binds wood or alike particles or fibers to make pre-cast building components. Various fiberous materials including paper and fiberglass have been used as binders.

500 Bags X $ 5 per bag = $ 2500

BRICKS

Approx. 30,000 bricks X $ .10 per piece = $ 3000

LABOR

Approx $ 4 per sq. ft. = $ 6000

BUILDING PRODUCTS

In the market place the term building products often refers to the ready-made particles/sections, made from various materials, that are fitted in architectural hardware and decorative hardware parts of a building.

A custom designed house on an excellent site using basic finishes will cost $15/sq. ft.

A custom designed house on an excellent site using standard finishes will cost $17/sq. ft.

A custom designed house on an excellent site using luxury items such as expensive bathroom or lighting fittings will cost at least$19/sq. ft.

If the site is "good", but not excellent, add 7% to the cost.

If the site is "difficult", add at least 20% to the cost.

Renovations cost twice as much, per sq ft, as new home construction or extensions.

Analyzing both the companies on their Marketing Strategies and Functional strategies.

As far as marketing strategies are concerned, Guglani Constructions is doing its business in a smaller scale as compare to Simpson Constructions of U.S.A.As a result, their marketing strategies will b some how different. Guglani Constructions would be preferring local customers and try to convert local prospects to their customers and on the other hand Simpson Constructions aims at doing their business activities in a larger area.

There is also a huge difference in the functional strategies of both the companies as the quality and the quantity of the raw material used by both the companies differs. Details of Raw material-

BRICKS

Guglani Constructions uses approx. 40,000 bricks in a 1500 sq. ft building, where as Simpson constructions uses Approx 30,000 bricks for the same area. It differs because of the size of the brick. Here in India normal size of a brick is 6” long and 3” wide but in U.S.A. normal size of a brick is 8” long and 4” wide.

CEMENT

Guglani constructions uses approx. 450 bags where as Simpson uses 500 bags for the same because their climatic conditions are different as compare to India. Their climate is much cooler, so the buildings require more cement for a better strength and performance.

STEEL

Steel usage by Guglani Constructions is around 2.5 kg per sq. ft. while Simpson uses 3 kg per sq. ft. It is because they uses less of sand / stone dust as compare to Indian construction companies. Stone dust holds all the material, and to avoid any problem, Simpson uses more of steel.

Distribution of cost

BricksSandSteelmarbleCementProfitLabor

CHALLENGES / PROBLEMS

1. Labor problem

Nowadays labor resource has become one of the biggest challenge in construction company. Their demand for high

wages, not easily available, unskilled resource etc. are some of the challenges that our company is facing.

2. Fraud / ethics

A large proportion of our company report being the victim of serious economic crimes. While theft of assets might be regarded by some as an accepted risk of doing business, regulators are taking a hard line on companies who turn a blind eye to these activities. Guglani constructions should also be aware of the impact this can also have on their reputation and share price.

3. Risk Management

Construction projects are high risk. They present enormous fiscal requirements and unusual logistical challenges for companies constructing new office buildings, plants or production facilities. Underestimating risk can lead to poor procurement strategy or the lack of skilled resources to actively manage the risk of project implementation may lead to poor decision-making.

4. Resolving disputes

The inherent and often unexpected risks on a new construction project present key challenges to engineering and construction companies. For example, if a project is delayed or disrupted, significant resources are engaged and

management time consumed. The outcome can have serious consequences on corporate value.

5. Sustainability

Our company is demonstrating varied responses to the new range of pressures, expectations and drivers of developing a sustainable business strategy. The more forward-thinking company is addressing the issues and actively engaging with their range of stakeholders to understand the risks and opportunities.

6. Relationships with sub contractors

Guglani Constructions is under constant pressure to improve margins, reduce costs and improve predictability. Developing long-term relationships with key strategic suppliers is a key part of delivering this strategy. This involves construction companies motivating their contractors to be pro-active.

MEASURES TO OVERCOME THE PROBLEMS

1. Solving Labor Issues

Guglani Constructions is trying to solve all the problems related to labor by understanding their needs and then

come to a mutual point where both the parties are satisfied.

2. Eliminating fraud element

The company is trying extremely hard to eliminate fraud from its business activities. For this, the company has appointed several supervisors who will keep an eye on each and every activity taking place on sites.

3. Reducing risk element

The company is trying to reduce risk from its business as much as they can, so that it the business can run smoothly and without any hurdle.

4. Solving disputes with parties

It is a possible thing that the company can have disputes with the parties, such as delay in possession, delay in supply of raw material, payment related disputes, disputes related preferences etc. So Guglani constructions is trying to solve these type of disputes with the parties so that there is no harm in its goodwill in the market.

OUR PROJECTS

House No. 335 Sec-9 Faridabad

Estimated cost- Approx 1000 Rs. Per sq ft.

Estimated profit- 4 Lakhs.

Time taken to construct- 10 Months

Problems faced- Initial disputes but resolved later

House No. 2210 Sec-9 Faridabad

Estimated cost- 900 Rs. per sq ft.

Estimated profit- 2 Lakhs.

Time taken to construct- 7 Months

Problems faced- Less space for raw material

Non co operative neighbors.

House No- 2273 Sec 9 Faridabad

Estimated cost- 1100 Rs per sq ft

Estimated profit- 5 Lakhs

Time taken to construct- 1 Year

Problems faced- Dispute with sub contractor

Delay in payment from the owner.

House No. J-104 Sec 10 Faridabad

Estimated cost- 550 Rs per sq ft (only for structure)

Estimated profit- 3 Lakhs

Time taken to construct- Under process

Problems faced- No problems till now.

House No.- D-123 Sec 11 Faridabad

Estimated cost- 700 Rs per sq ft (2006)

Estimated profit- No profit.

Time taken to construct- 9 Months

Problems faced- Payment problems.

- House No. F-135 Sec-10 Faridabad

Estimated cost- 1000 Rs. per sq ft.

Estimated profit- Under process

Time taken to construct- Under process

Problems faced- Labor problem.

House No. 10 Sec 8 Faridabad

Estimated cost- 1000 Rs per sq ft

Estimated profit- 5 Lakhs

Time taken to construct- 15 Months

Problems faced- Labor problem

Non co operative owner.

CONCLUSION

Above Stated are the information about Guglani Constructions. Then comparing and analyzing the marketing and functional strategies of Guglani Constructions Vs Simpson Constructions. And at last we come to a conclusion that working style i.e. strategies used by both the companies are totally different as in quality and quantity of raw materials, working environment, cultural environment etc.

BIBLIOGRAPHY

www.constructionupdate.com

www.simpson estimating.com

www.buildzoom.com

www.simpson const.com