Project Report On

Project Report On

“Building Marketing Strategy For Selling Transformers”

Submitted to: Mr.Sanjay Udgirkar

Submitted by: Navsikander Singh Brar Roll No: PG20071239 IILM Gurgaon

DECLARATION

I Navsikander Singh Brar a student of IILM Institute of Higher

Education Gurgaon, hereby declare that all the information, facts and

figures furnished in this report are based on my own findings and

experience gathered during my summer training at GE Power. This

information has been used for purely academic purpose.

I hereby declare the work was done by me and suitable information

has been downloaded from websites and some gathered from the

company.

The project report is the result of my own hard work and self belief.

Signature of Student

Name: Navsikander Singh Brar

Date : 28-7-08

ACKNOWLEDGEMENT

An effort is not complete and successful till the people who make it

possible are given due credit for making it possible. I take this

opportunity to thank all those who have made the endeavor of mine

successful for me and for all.

The entire journey from the very idea of this project to reality would

not have been possible without the guidance of many experienced

people. Firstly, I would like to thank my mentor Mr.Naushad Mullick

and my college staff.

I thank all of you for being supportive and at the same time tolerant at

the times when I would be pressing you for information during your

busy schedule. This project would not have completed without your

support.

I would like to give a special thanks to Mr.Sanjay Udgirkar, Mr.Ravi

Sehgal my Guide, for the inputs that came in from you at all points

critical, in the making of this project. I also extend deep sense of

gratitude to my faculty members for the guidance and support.

Contents

About GE

GE in India

Company hierarchy

GE infrastructure

Transformer

Market growth

Factor affecting sales of transformer

SWOT analysis of GE in India

PEST analysis

Major players in India

Competitor study

GE ‘s edge over its competitors

GE drawbacks

Market problem

Research design

Market strategy

Recommendations

References

The

Company

About GE

CEO of GE Jeff Immelt

GE is imagination at work- - a diversified technology, media, and

financial services company focused on solving some of the world’s

toughest problems. With products and services ranging from aircraft

engineering, power generation, water processing and security

technology to medical imaging, business and consumer financing,

media content and advance materials, GE serves customers in more

than 100 countries and employs more than 3,00,000 people

worldwide.

GE is focused on growth and is committed to achieving worldwide

leadership in each of its business.

The company is organized into six market focused group. GE

infrastructure, GE commercial financial services, GE industrial, NBC

universal, GE health care and GE consumer finance. This structure is

aimed at expanding the company’s growth capability and positioning

the company for sustained growth.

Commitment:

GE is committed to serving the communities where we do business,

providing our customers with innovative, high-quality products and

services and protecting the health of our workers and our

environment.

Integrity

Our reputation for honest and reliable business conduct, built by so many people over so many decades, is tested and proved in each business transaction we make.

Social Performance

GE leaders and employees support the communities that we call

home.

Environment, Health & Safety

We are committed to keeping our workers safe on the job and

ensuring compliance with environmental regulations.

Quality

GE employees embrace Six Sigma's customer-focused, data-driven

philosophy and apply it to everything we do.

Innovation

We pride ourselves on our rich history of "industry firsts." Synergy

within our broad base of GE businesses helps us define the cutting

edge of innovation

GE in IndiaTejpreet singh CEO of GE India

GE has been in India since 1902, when it installed India’s first hydro

power plant. Today, all of GE’s global businesses have a presence in

India and the company has become a significant participant in a wide

range of key services, Technology and manufacturing industries.

Employment across India exceeds 12000.

Over $1 billion of exports from India support GE’s global business

operations around the world. GE has experienced success in sourcing

products, services and intellectual talent from India for its global

businesses. GE pioneered the concept of software sourcing from India

and is one of the largest customers for the IT services industries in

India.

India is one of the world’s most exciting growth markets and many of

the country’s needs today are synergistic with the solutions offered by

GE businesses. With a diverse portfolio of products and services

ranging from aircraft engines, power generation, water processing and

security technology to medical imaging, business and consumer

financing, electrical and power protection and advanced materials. GE

in India offers a compelling “One GE” proposition that will help

accelerate many of India’s priorities.

As India moves towards its goal of becoming a global leader, GE is

committed to being a growth partner to India.

At GE, we strive to be both a good and a great company. Every day,

the company strives to be a responsible corporate citizen, to perform

with integrity and to serve our employees, customers and other stake

holders responsibly. Strong corporate citizenship is about constant

improvement and we constantly work to improve the lives of the

communities in which we live and work.

Company Hierarchy

GE Energy India

Region Executive

New Units (PG) Energy Services (ES)

Sales Director & Team Regional General Manager (RGM)

Power Services T&D OC ENVS

Sales Director Sales Director Sales Director Sales Director

& Team & Team & Team & Team

T&D Transmission & DistributionOC Optimization & ControlENVS Environmental Services

GE Infrastructure

GE infrastructure is a high-technology platform comprising some of

the fastest-growing businesses within GE. From transportation to

meeting energy needs to water purification, GE infrastructure spans

the globe offering world-class solutions to some of today’s most

pressing issues.

GE infrastructure is working in India towards building a strong

foundation with the future in mind. The diverse requirements of

customers are met by offering sophisticated solutions tailor-made to

their individual needs.

The pillars of GE’s infrastructure are:

GE- Aviation, Commercial engines

GE and CFM international engines are the ideal solutions for India’s

growing commercial aviation requirements. Whether the need is

power for regional jets to connect secondary cities, or narrow- body

aircraft for longer domestic routes, or wide-body aircrafts for

international routes, GE’s engines provide an ideal value proposition

to airline customers.

GE Commercial Aviation Services

GE commercial aviation services (GECAS) is the commercial aircraft

financing and leasing business of GE. With three decades of long-

standing with more than 200 airlines in some 60 country, GECAS has

a fleet of some 1300 owned aircraft and managers nearly 300 for other

airline. Most of GECAS –owned fleet is made up of modern airbus

and Boeing narrow body, with wide body aircraft, regional jets and

freighters as well. GECAS provides a variety of aircraft financing to

airfreight operators around the world and has freighter conversion

program in place to convert 737,727 and 767 passenger aircraft into

freighters

GE –aviation, military systems operation

Military systems operation is vital component of the Indian aerospace

community. The F404-GE-IN20 engine for India’s Light Combat

Aircraft (LCA) demonstrator is the latest derivative of the F404

family. The –IN20 version incorporates proven single- engine feature

foe outstanding safety and reliability along with improved operational

and handing characteristics. GE also has a manufacturing license and

technical assistance agreement with Hindustan Aeronautics Limited

(HAL) for the manufacture of LM2500 Gas turbines in India-six of

which have been procured for the project 17 program

GE transportation

GE transportation is a global technology leader and supplier to the

railway industry .GE offers cutting edge solutions related to diesel-

electric locomotives and its modernization and its signalling portfolio

include on-board and wayside signalling product and train inspection

system meeting international railway norms

GE Energy

GE energy business supplies a full spectrum of power plant solution,

ranging from fossil fuel technology to renewable energy, to suit

customer specific requirements. Offering includes equipment-only

packages, engineered packages or total turnkey projects. GE

technology gas and steam turbine, hydro turbine, wind turbine and

nuclear units account for more than 10% of India’s power generation

installed capacity. With more than 200 customers in the Indian

subcontinent, GE’s energy business also offers an array of

transmission and distribution product and services, as well as

condition monitoring products and services, optimization services,

energy rentals, aero derivative technology, wind energy, gas fuelled

reciprocating engines, hydro power, solar technologies and nuclear

energy

JENBACHER GAS ENGINES

GE Water and process Technologies

GE water and process technologies is a leader in the engineered

chemical treatment and process system offering, new generation

specialty, chemicals, consumables for RO equipment & pre –

treatment for plant utilities such as boilers, cooling towers, waste

plants. The new generation product offering includes chex for heat

exchange, ACE product foe boiler applications for high acid crude

treatment, APES-new generation polymers and dispersant for cooling

water applications and mobile water for emergency water requirement

GE Sensing

GE has united the technological innovation and experience of industry

leaders in the industry leaders in the design and manufacture of

advanced measured and sensor – based solution into one world –class

business. Druck General Eastern, kaye, nova sensor, parametric.

Thermometric and Ruska are now under one name GE sensing. This

new company, with operation in india and throughout the world,

offers a broad range of product and services that help customer solve

challenges and drive productivity.

GE money

GE money is one of the leading providers of financial services to

consumer & retailers in India, offering a range of innovative financial

products to suit its customer needs . It has a strong retail distribution

network in over 5500 outlets across 60 locations and is a leader in a

wide range of product. Strong operation is backed by the latest

information technology support by product line. Its CRM program is

among the most successful customer retention program in Indian and

a single database housing nearly 2.5 million customer account, latest

technology and centralized operations ensure the best services

standards in the industry. With strong joint venture partner in maruti

and state bank of India with 1.9 million cardholders, GE money

continues to add value to its customers and partners in India

The

Project

Transformers

GE entered a joint venture partnership with Xignux and their

transformer subsidiary Prolec in 1995, focused on delivering quality

power equipment products. Today, GE-Prolec offers a full range of

transformer products for the utility, residential, commercial,

industrial, and energy markets. Complying with all applicable

standards, these products provide flexible, reliable, and robust designs

to support the customer's various substation and power plant

applications. A complete line of accessories and state-of-the-art

monitoring and diagnostics can complement your transformer solution

to ensure performance optimization during the life of the equipment.

Power Transformers

To utilities and industrials, GE-Prolec power transformers are the

product of choice because they deliver the reliability and performance

required due to their design, manufacturing and support

characteristics. These characteristics aid our customers in offering the

best level of energy supply.

Types

Step down, Generator Step-up, Autotransformers, Shunt Reactors,

Auxiliaries for both Single and Three Phase application

5 - 650 MVA maximum rating

Up to 1550 KV BIL

High Voltage up to 550 KV

Low Voltage up to 230 KV

50 or 60 Hz

On Load and Off-load tap changers

Distribution Transformers GE-Prolec offers a complete line of liquid-filled distribution

transformers that meet or exceed applicable ANSI/IEEE standards.

With high voltage up to 34.5kV and capacity up to 12 MVA, GE-

Prolec transformers are used in a wide range of residential,

commercial and industrial applications. High-grade materials,

combined with sophisticated engineering design systems are key

elements of a transformer that will deliver years of high-reliability

service.

Network Transformers Utility network systems provide continuity of service that is

unmatched in the industry. Transformers are operated in parallel

within grids to serve multiple customers; individual transformer

failures do not interrupt service to any customers on the grid. GE's

network transformers provide superior corrosion protection using

Reeves zinc-rich epoxy costing. Computer aided design tools help

yield the most KVA per cubic foot of vault space available in the

industry today.

Achieving high reliability for critical loads and high-density load

areas are challenges that our network transformers can help you

overcome. Optimal voltage control can be achieved with our

microprocessor controlled voltage regulators and our power factor

correction equipment delivers the power quality that your customers

demand.

Voltage Regulators Voltage regulators are used by IOU, REC, municipal, and industrial

customers to automatically maintain, or regulate, system voltage

levels within a pre-set band width. GE's voltage regulators are

recognized for designs that have long life with low maintenance

expenses.

We are concerned with the Power transformers

of 400KV only.

India’s Power and Distribution Transformers Market to Grow Exponentially by 2012

Realizing the importance of private participation in the power sector,

India is strengthening its policies to encourage private investments.

The country’s Electricity Act of 2003 caused the compulsory

unbundling of the state electricity boards to improve their operational

efficiencies, thus creating new market demand for better transmission

equipment. As a result the Indian power and distribution transformers

market is growing rapidly, according to a recent study by Frost &

Sullivan, a global growth consulting company. The Frost & Sullivan

studies found that revenues in this industry totalled US$1.04 billion in

2005, and are likely to reach $5.31 billion in 2012.

"Government's emphasis on the transmission and distribution sector

reforms and investments are showing signs of fruition, thus creating a

phenomenal growth opportunity for the Indian transformer market,"

explained Frost & Sullivan Research Analyst S. Bharath Srinivasan.

"Due to rapid economic development and government's target of

‘power for all by 2012,' the Indian power sector will need to replicate

what has been achieved during the last 50 years in the next 10 years."

The growing presence of global participants in the power and

distribution transformers market is a cause for concern for local

Indian manufacturers, according to Frost & Sullivan. International

Manufacturers have expertise in segments such as extra-high-voltage

power transformers and standardized substation technologies.

Moreover, the Frost & Sullivan analysis found that minor investments

in transformer research and development in India pose a challenge to

domestic participants, who eventually pair up with multinational

giants for high-end technologies. The global price hike in transformer

raw materials such as copper, aluminium and oil caused transformer

prices to increase in India, the report found. Also, a shortage of cold-

rolled grain oriented steel is further escalating the price of this

essential transformer core material. With growing demand and price

both rising, Indian manufacturers are finding it difficult to maintain

margins in the long term, thereby transferring the burden of increased

costs to the end users, according to Frost & Sullivan.

The regulatory structure of the power sector has faced some

uncertainties in India due to the reluctance and failure of certain states

to put the regulations into practice, the study found.

Furthermore, utilities are confronting financial problems because of

high T&D losses, thus increasing their debt. Despite these setbacks,

the power sector in India is likely to remain buoyant, according to

Frost & Sullivan.

Reforms in the sector and the enlargement of the power distribution

network under India’s Accelerated Power Development and Reforms

Program is driving the growth and strengthening of sub-transmission

lines. In addition, the increase in transmission grid reliability will

result in heightened demand for power transformers, the analysis

shows.

"Other than the central and state utilities plans for power capacity

addition, private sector investment is also expected to have a profound

influence on the development of the power industry," noted Frost &

Sullivan's Srinivasan. "Also, aging equipment is creating potential for

a booming replacement market and this demand will be sustained by

the growth in industrial demand."

Factors affecting sale of transformers

The factors that largely affect the sale of Transformers are:

Price:-

The price of the Transformer is the most prominent factor that affects

the sales. If the price offered by a company is more than the price

offered by any other company, then the company with a lesser price is

likely to have more sales. But it is not so every time, because some

time the brand and quality compensates the price of the product,

Because if offered a better quality and a reputed brand the customers

are willing to pay a higher price. The price also includes the shipping

cost and installation cost. We normally ignore the transportation and

installation charges, but sometimes these charges are really huge. As

transformers are very heavy and bulky, it takes a lot of labour and

time to install it. This also contributes to the overall cost of the

transformer.

The price of a GE transformer comes to ~ INR 300,000 - INR

350,000 / MVA as a thumb rule which is appreciably higher than

what local manufacturers provide in India.

Rise in price of Steel and Copper:-

The price of raw materials i.e. steel and copper also plays a major role

in the sale of transformers. The price of raw materials determines the

manufacturing cost of the transformer and thus increases its final cost.

The price of steel has gone higher considerably with in past years.

This is shown by the graphs shown above and below.

Copper is also a vital part of the transformer. Inside the transformer

the winding on its core is made from copper. Thus the price of copper

also plays a major role in the final price of the transformer thus

affecting its sales not only in India but throughout the world.

Technological advancements:

The new technology also affects the sale of transformers. As we know

that everyone wants to possess the latest technology gadgets. So in the

transformer market as technology is changing daily, the demand of

newer and improved transformers is increasing. The demand of older

transformers is decreasing and so is their cost going down as no one

wants to buy the older technology at higher prices. This is a big

problem for the manufacturers. The value of the inventory in their

store decreases when newer technology comes to play in the market.

Thus to sell that stock the manufacturers have to lower the prices.

DILIVERY TIME

As delivery play very important role in the sale of the transformer. If

the delivery time is long then this will affect the sale of the

transformer. For every consumer delivery time is one of the important

factors for the selection the organization.

Delivery time play an important role because delivery time is directly

proportional to the cost of the transformer. More the delivery time

more the cost of the transformer. Transporting of the transformer is

such a costly process that it affects lot on the overall cost of the

transformer. As GE has a problem in delivery time because GE has no

production unit in India, that why GE is facing lots of problem in

establishing the business in India.

BRAND / QUALITY Brand or quality is also one of the important factor which play an

important role in the sale of the transformer.

Across the company, GE employees embrace Six Sigma's customer-

focused, data-driven philosophy and apply it to everything we do. GE

also works with their customers and suppliers to achieve the highest

levels of quality possible.

GE continue to build on successes by sharing best practices across all

of our businesses, putting the full power of GE behind our quest for

better, faster customer solutions.

MARKET DEMAND

Other factor which effect the sales of the transformer is Market

demand .If the market demand is high it is obvious that the sales of

the transformer is also increase There is directly proportional

relationship between the market demand and sales of the transformer

World electric transmission and distribution equipment demand is

likely to rise 4.4 percent annually through 2011. The industrial and

commercial sector will see the strongest gains as cogeneration

proliferates and products such as high voltage transformers become

more common outside of the utility sector. The market demand also

depends on the economy state of the country. When we talk about

India, we see it as a very fast growing economy. The demand of the

power distribution equipment in such a nation is likely to be very

high. Govt of India is planning to set up a number of new power

plants to meet the growing energy demand in the country, thus they

will need a number of high quality transformers. Thus there will be a

substantial increase in the demand of transformers in the country.

Swot analysis of GE in India

Swot analysis is a two by two matrix, which shows the Strengths,

Weakness, Opportunities and Threats of the product abut which we

are talking.

Strengths Weakness

Opportunities Threats

Strengths of GE

Brand

Quality

Varity of products

Better service

Better technology

Weakness

No manufacturing facility in India

Has to deliver all the products from USA to the destination

Higher prices

Takes longer time to deliver the products to customer

Not established in Indian transformer market

Opportunities

It can exploit and capture the huge Indian market

Customers in India now want better quality and technology products.

GE can explore this segment

Customers in India are mostly Government organizations, if GE get a

few contracts, it can capture a large share of market

Threats

Competitors

Changing market trends

Changing market demand

Higher shipping cost, order time

PEST Analysis

Political factors: The political factors include

Monopolies legislation

Environmental protection laws

Taxation policy

Employment laws

Government policy

Legislation

The political scenario in India is very favourable for the foreign

companies that want to enter Indian market. The government is

following the open door policy and it is inviting the foreign

companies to invest in India and sell their products in Indian market.

This will provide employment to a large number of people.

Economic Factors: The economic factors include

Inflation

Employment

Disposable income

Business cycles

Energy availability and cost

In India the economy is really booming, there is a great demand of

power distribution equipment and the demand is to rise in the coming

years. Moreover the country is a developing country and there are

many power generation and power transmission projects going on in

the country. The customers are also willing to pay higher prices if

they are offered better quality and branded equipment.

Socio-cultural Factors: The socio-cultural factors include

Demographics

Distribution of income

Social mobility

Lifestyle changes

Consumerism

Levels of education

The socio-cultural factors also favour the company’s plans.

Technological Factors: The technological factors include

New discoveries and innovations

Speed of technology transfer

Rates of obsolescence

Internet

Information technology

The technological factors also favour the company. The company has

the latest technology used in manufacturing transformers. It has the

best engineers and a well developed R&D department which enables

GE to develop newer and more effective technologies.

Major players in Indian Transformer Market

BHEL has been by far the leading player in PPE with a market share

of 65% of the installed base in India. Other players are Siemens, GE,

Alstom , Ansaldo and Hanjung. BHEL, Siemens and ABB (now

Alstom) dominated the Indian power plant equipment industry till

1991. With IPPs and international competitive bidding setting in,

players like Mitsubishi, Hanjung, Hyundai and Chinese manufacturers

are also making their presence felt.

GE was not selling the 400KV transformers in India till now. GE

realised that there is a great opportunity in Indian market. Now it is

entering the Indian market in a big way. It is aiming to sell power

transformers of good quality, parts and services in India.

Competitor study

The main competitors of GE in Indian market are companies like

BHEL

Siemens

ABB (Alstom)

Ansaldo

Hanjung

The main market share is captured by BHEL. The others are also well

established. Almost all the competitors have a manufacturing facility

in India from where they manufacture and supply the product to the

customers. This enables them to lower their delivery time and also the

shipping cost thus lowering the overall cost of the product. These

companies have well developed marketing strategies to market their

product, this gives them a competitive advantage. More over their

price tag is also very competitive and beats GE’s price tag by a good

significance. On the other hand the regular service and change of

spare parts is also very quick and in less cost, while GE has to import

all its parts from USA or from warehouses in nearby countries. BHEL

is a government concern company so it holds a major advantage as

most of the customers in India are the government organizations. The

competitors also provide cheap and quicker service of the

transformers.

GE’s Edge over its competitor

The factors where GE has an edge over its competitors are:

Brand name: The brand name of GE around the world is the biggest

advantage of GE over the competitors. In today’s market brand is the

driving force behind most of the purchase that a customer does.

Transformer is a very expensive product. The customer wants to have

a product that lasts long and doesn’t give problems in operation, thus

they prefer products of good brands.

Technology: GE has the most modern technology. So its products

are also technically much advanced than its competitors. This is a

great advantage that GE has. The competitors in Indian market are

mostly Indian companies that do not have the latest technology.

Quality of products: the quality if the product is another point where

the company holds the advantage over its competitors in the Indian

market.

Quality of services: GE not only offers high quality products but

also high quality services for the products. It believes in building long

term relations with its customers. The competitors are also providing

good services but it does not match the quality of GE.

GE drawbacks

The factors where GE loses to its competitors are:

GE is a very well developed company but still it has some drawbacks

in India where it loses to its competitors. The main problem is that GE

does not have a manufacturing facility in India; it has to import its

products from other countries where it has a manufacturing facility

(mainly from USA). This leads to many problems; the delivery time

of the products (time taken by the company to deliver the products to

the customers) is much more that what its competitors promise. The

other problem arising is the shipping cost. The shipping cost of

transporting transformers is very high. This cost adds to the total cost

of the product which is already priced higher than that of the

competitor’s products. The other problem is that the competitors are

established in the market and GE is a new entrant in the Indian

transformer market. GE has to find customers and establish itself in

the market but its competitors are already established in the market.

They have loyal customers who buy their products. Because

purchasing a transformer from a company is also building a long term

relation between the company and the customer. More over GE has a

higher product price, which may be a major drawback in the price

conscious Indian market.

The price of a GE transformer comes to ~ INR 300,000 - INR

350,000 / MVA

Marketing problem

There is no dough that GE is the one of the best organization in world.

For the Indian transformers market GE is a new organization, so it

will take long time for it to be well known in Indian market. GE has

recently launched its power transformers in India. The sales are low.

GE needs a good marketing strategy for selling its transformers in

Indian market. They need to frame strategies and develop a good

image in the market to attract loyal customers.

RESEARCH DESIGN

A research design is a framework or blueprint for conducting the

marketing research project. It details the procedure necessary for

obtaining the information needed to structure and/or solve marketing

research problems. The research design provides a specific detail as to

how to implement the approach. A good research design will ensure

that marketing research project is conducted effectively and

efficiently. Typically, a research design involves the following

components, or tasks:

Define the information needed.

Design the exploratory, descriptive and /or causal phases of the

research

Specify the measurement and scaling procedures

Construct and pretest the questionnaire or an appropriate form

of data collection

Specify the sampling process and sample size

Develop a plan for data analysis.

Research designs may be broadly classified as exploratory or

conclusive researches. The primary objective of exploratory research

is to provide insights into, and an understanding of the problem

confronting the researcher. The information needed is only loosely

defined at this stage and the research process adopted is flexible and

unstructured. The primary data is qualitative in nature. Usually these

researches are followed by further exploratory research or conclusive

research.

Conclusive research is done to assist the decision maker in

determining, evaluating and selecting the best course of action to be

taken in a given situation. The objective of conclusive research is to

test specific hypotheses and examine specific relationships.

.

In this project I have done Exploratory research. And I have used

secondary data.

Marketing Strategy

Strategy has three levels:

Market strategy

Business strategy

Functional strategy

Market strategy is of two types, Market Expansion and Market

focus.

RESEARCH DESIGN

EXPLORATORY CONCLUSIVE

DESCRIPTIVE CAUSAL

CROSS SECTIONAL LONGITUDANAL

SINGLE CROSS-SECTIONAL

MULTIPLE CROSS-SECTIONAL

In Indian market the competitors are well established (BHEL holds

nearly 65% of the market share) and have a large number of

customers that are loyal to the company. GE is a new entrant in the

400KV transformer segment, so it is not profitable to compete with

the well established competitors having Quality, Brand and

technology as the only weapons. Instead GE should use the

Expansion strategy for selling its 400KV transformers in Indian

market.

The conventional market is the government organizations involved in

the transmission and distribution of Power. Beside this the company

has to identify new markets.

The possible markets can be the private power generating and

transmission companies like Reliance etc, the big industrial plants that

need a very high voltage of power like that of 400KV, big housing

complexes and societies that need a different substation.

These markets can be explored and targeted. Most private companies

desire high quality, technically advance, reliable and durable products

and are also willing to pay more for all these factors. GE is has an

edge in these factors and has a very good brand image. Thus it should

position its products on basis of quality, technology and brand.

Business strategy is analyzing the structure of the organization and

restructuring it if needed. For example if the company wants to sell its

products in whole country it has to setup marketing and sales offices

in all parts of the country. It can be state wise or zone wise, if there is

not an adequate staff it needs to recruit more staff.

The company can also find a middle man who has very good contacts

or can bring possible customers to the company.

Functional strategy deals with applying the strategy in the market.

First the company has to make a budget for promotion of its product.

Then according to the budget it should decide which means of

promotion to choose. The possible methods of promotion can be:

Giving advertisement in the Newspapers preferably on the front

page.

The company can send its marketing officials to the office of the

state electricity boards, power generation and distribution

companies, electricity ministers and other targets to tell about

their product and promote it.

Press conference can be organized for gaining the required

publicity for the product.

Moreover lobbing (though illegal) can be used to raise the price

in the transformer market so that GE can decrease the price gap

between the price of the competitor and GE’s price tag.

Recommendations

The recommendations for GE are

It should not fight with the existing competitors in the market, as

it will be risky and will require a large number of resources.

Instead the company should opt for the expansion strategy.

The delivery time of the product adds to the overall cost of the

product. GE has to import its products from its manufacturing

facility in USA, this increases the delivery time of the product.

The company can forecast the sales and can store the products in

the ware house in advance so that in could supply the product

directly from the ware house to customer and reduce the

delivery time.

Marketing and sales office can be set up in different states of in

different zones of the country so that the vastness of the country

can be efficiently covered. Skilled staff should be recruited to

run these offices.

References

www.geenergy.com

www.ge.com

www.google.com

www.wikipedia.com

www.siemens.com

www.bhel.com

www.siemens.com

www.abb.com

Secondary data available in the company

Marketing strategy

By- O.C.Ferrell

Michael D.Hartline

Market research

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