Beruflich Dokumente
Kultur Dokumente
By
DECLARATION
I, Arjun Thomas Eugene, do hereby declare that the Summer Internship Project entitled
Recommendation of Promotional Strategies for Hydraulic Breaker & Implementation of Mobility
in CRM in Larsen & Toubro, Construction & Mining Machinery, has been undertaken by me as
part of my studies in the degree of Master of Business Administration. I have completed this study under
the guidance of Dr. Rupesh Kumar. M, Associate Professor of Marketing, Institute of Management,
Christ University, Bengaluru and Mr. Prakesh Hegde, Head’ System Development , L&T Bangalore.
I also declare that this work has not been submitted for the award of any degree, diploma, fellowship or
any other title in this University or any other University.
Place: Bengaluru
Date: Arjun Thomas Eugene
Register No 1527607
ii
CERTIFICATE
This is to certify that the Summer Internship Project submitted by Mr. Arjun Thomas Eugene on the
title Recommendation of Promotional Strategies for Hydraulic Breaker & Implementation of
Mobility in CRM is a record of project work done by him during the academic year 2015-17 under my
guidance and supervision in partial fulfillment of Master of Business Administration. This Summer
Internship Project has not been submitted for the award of any degree, diploma, fellowship or any other
title in this University or any other University.
Place: Bengaluru
Date: Dr. M. Rupesh Kumar
iii
ACKNOWLEDGEMENT
First, I thank the Vice Chancellor Dr Fr Thomas C Matthew of Christ University for giving me the
opportunity to do my summer internship project.
I thank Prof. Suniti Phadke, Dean, Fr Thomas T V, Director, and Prof C N Kshetragna, Head-Marketing,
Institute of Management, Christ University for their kind support.
I wish to take this opportunity to express my deep sense of gratitude to thank Mr. Prakesh Hegde (Head
of system development) for his invaluable guidance throughout my project. I sincerely thank L&T. for
providing me with an opportunity to work in the Sales Department to get an insight about Sales and
Market Execution.
I thank Dr. M. Rupesh Kumar (Associate Professor) – CUIM, for his support and guidance during the
course of my summer internship. I remember him with much gratitude for his patience and motivation,
but for which I could not have submitted this work.
I thank my parents for their blessings and constant support, without which this summer internship would
not have seen the light of day.
v
TABLE OF CONTENTS
Declaration ii
Certificate iii
Certificate from the Company iv
Acknowledgements v
Table of Contents vi
List of figures ix
Executive Summary x
CHAPTER 1
INTRODUCTION 1
1.1 L&T CONSTRUCTION AND MINING MACHINERY 2
1.2 EXCAVATORS/TRACK HOES 3
1.3 INTRODUCTION MOBILITY IN CRM 6
1.3.1 MOBILE CRM 6
1.3.2 EMPLOYEE ADVANTAGES 8
1.3.3 FIRM ADVANTAGES 8
CHAPTER 2
OVERVIEW 9
2.1 EARTH MOVING ANDMINING EQUIPMENT INDUSTRY 10
2.2 INDIAN CONSTRUCTION AND MINING INDUSTRY 2015 10
2.3 GLOBAL CONSTRUCTION AND MINING INDSTRY 2016 11
2.4 LARSEN AND TOUBRO – HISTORY 12
2.5 BUSINESS AREAS OF THE COMPANY 13
2.6 L&T CONSTRUCTION AND MINING EQUIPMENT 15
2.7 ROCK BREAKER – INTRODUCTION 17
2.7.1 ROCK BREAKER – APPLICATIONS 18
2.7.2 CURRENT MARKET TRENDS AND MAJOR DEMAND DRIVERS 18
2.7.3 EMERGING TECHONOLOGY TRENDS 18
2.7.4 THE PARAMETERS OF SELECTING A ROCK BREAKER 19
2.7.5 PRODUCT RANGE KOMATSU HAS TO OFFER 19
2.7.6 FEATURES 22
2.8 TOP 10 COMPETITORS 22
2.8.1 MARKET – ROCK BREAKERS 23
2.8.2 THE INDIAN MARKET POTENTIAL 24
2.9 KOMATSU LIMITED 25
2.9.1 KOMATSU HISTORY IN INDIA 26
CHAPTER 3
METHODOLOGY 29
3.1 STATEMENT OF THE PROBLEM 30
3.2 OBJECTIVES OF THE STUDY 30
3.3 TOOLES AND TECHNIQUE 30
3.4 LIMITATIONS 31
3.5 SEGMENTATION 31
3.6 PROMOTIONAL STRATEGIES 32
3.7 PROMOTIONAL STRATEGIES AT L&T 33
3.8 MOBILITY IN CRM – IMPLEMENTATION PROCESS 35
3.8.1 EXISTING CRM AT L&T 36
CHAPTER 4
ANALYSIS 37
4.1 QUESTIONNAIRE ANALYSIS 38
CHAPTER 5
LEARNINGS AND DELIVERABLES 42
5.1 LEARNINGS 43
5.2 DELIVERABLES 43
5.3 SCREEN SHOTS OF THE MOCK APP 44
CHAPTER 6
FINDINGS, SUGGESTIONS AND CONCLUSION 45
6.1 FINDINGS 46
6.1.1 PROMOTIONAL STRATEGIES 46
6.1.2 MOBILITY IN CRM 46
6.2 SUGGESTIONS 47
6.2.1. SUGGESTIONS FOR PROMOTIONAL STRATEGIES 47
6.2.2 SUGGESTIONS FOR MOBILITY IN CRM 50
6.3 CONCLUSION 51
LIST OF FIGURES
viii
EXECUTIVE SUMMARY
The summer internship program at Institute of Management, Christ University is aimed at introducing
the students to a real time corporate environment that allows him/her to apply his/her skills and abilities
that have been learnt via theory.
This report is the documentation of summer internship project done at L&T Construction and Mining
Equipment at their Regional sales office at Cubbon Road Bangalore from 4-April-2016 to 31-May-2016.
L&T is a market leader in the heavy machinery and construction industry and has been serving the
customers around the world with its wide range of equipment for more than 78 years. The Summer
Internship Program at L&T Construction & Mining Machinery involves suggestion of promotional
strategies for Rock Breaker Machines and implementation of mobility in CRM. This was achieved by
conducting a survey among the sales executives and preparing a presentation for the office. From the two
objectives, the objective of implementing mobility in CRM has already begun.
The learnings from my SIP project includes a close association of the theory what we study with the
application in real business. I got a clear understanding about how to design a questionnaire, conduct
survey, detailed insight about factor analysis. How various marketing activities are conducted in L&T,
various promotional activities initiated at L&T, how segmentation and positioning is done etc.
ix
I. INTRODUCTION
1|Page
1.1 L&T CONSTRUCTION & MINING MACHINERY
L&T Construction & Mining Machinery is a part of the highly successful L&T Group, engaged in
the marketing and servicing of a wide range of equipment, deployed in the core sectors of the
economy. They are the leading manufacturers of hydraulic excavators in the Indian market for
over three decades. Over the years, L&T has introduced cutting-edge technology to the Indian
market, while meeting high standards of safety, reliability and productivity.
L&T is the authorized distributor of Komatsu Limited, Japan, for the Indian market. The product
portfolio includes Dozers, Rear Dumpers, Hydraulic Excavators, Wheel Loaders, Motor Graders
and Wheel Dozers. The range varies from small, medium to large-size excavators for varied
applications. L&T also distributes multi-axle heavy duty tipper trucks from Scania, Sweden.
With a highly-proactive sales network connecting strategic locations, coal belt areas, granite
clusters and activity centers, L&T looks to expand into newer markets, while consolidating on
existing territories. These products have enabled L&T to create new productivity standards in the
industry. They also provide unmatched product support to customers for service and parts through
a countrywide footprint of modernized service centers and dealer locations.
Construction equipment is used for the construction of residential and non-residential buildings,
for surface and strip mining operations, for new power and manufacturing plants, for logging
operations and for adding to or renovating infrastructure, such as sewage and water lines, roads,
bridges and tunnels. Mining equipment firms produce machinery used in underground mining and
minerals processing operations.
Machines built by the construction equipment industry are usually classified into ten types:
backhoes; bulldozers; construction and surface mining rock drill bits; construction tractors and
attachments; off-highway trucks; pile-driving equipment; portable crushing, pulverizing, and
screening machinery; powered post hole digging machinery; motor graders and paving machinery;
and surface mining machinery.
Machines built by the mining equipment industry consist of coal breakers, cutters and pulverizers;
underground mining core drills; minerals processing machinery; mining cars; stationary rock
crushing machinery; excavating machinery; and conveyor systems.
2|Page
1.2 EXCAVATORS / TRACK HOES
Excavators, also known as a track hoe, is a heavy equipment consisting of a boom, dipper stick,
bucket and cab on a rotating platform. The cab sits atop an undercarriage with tracks or wheels.
All movement and functions of the excavator are accomplished through the use of hydraulic fluid.
Excavators come in two basic forms, tracked and wheeled. The tracked excavator is more common
place, due to it having better flotation and traction characteristics than the wheeled excavator.
These machines are used in many different industries due to their versatility. The track hoe is
perfectly designed for a wide range of services, including:
loading, unloading and installing track panel and installing diamonds, retarders and
switches
snow removal
The Rock Breaker equipment I am basing my project on is an attachment that comes for a wide
range of excavators.
3|Page
Figure 1.1 Komatsu PC300 Excavator
4|Page
In this particular summer internship project conducted at L&T Construction & Mining Equipment
the main objective was to suggest promotional strategies for the new range of Rock Breaker
equipment that comes as an attachment to track hoes. It has been noticed that there is no promotion
done for this range of equipment as it is relatively new to the market and the target audience is
very limited. Completion of the project includes a survey and an interview with the senior sales
manager to get a deeper understanding of the promotional strategies that are accepted by the
customers. This was done with the help of Mr. Sandeep AP from L&T.
The second part of this project was to help the office in the implementation of mobility in CRM
by pointing out the benefits of using it. It caught the attention of my corporate mentor that the
present technologies imploded in sales are not used by the sales team efficiently. In order to address
this issue, he asked me to make a presentation portraying the benefits of using mobility in CRM.
This was done using a Prezi presentation and the development of a mock app for showing the
convenience of using mobility in the existing CRM.
5|Page
1.3 INTRODUCTION – MOBILITY IN CRM
The secondary objective of the project was to help in the implementation of mobility in CRM. This
objective was achieved with the help of a presentation and the development of a mock app which
was submitted to my mentor, Mr. Prakash Hegde. The information used in the presentation is
explained in detail here.
A mobile CRM is simply your CRM integrated into a mobile platform. It is able to make use of
your phone's available functions like camera and geo-location to interact and work with your
present CRM module to give you better response times and thus achieving better productivity. All
your calls, texts and e-mails related to sales can be collectively seen and collaborated. It helps
employees update and interact with customer data wherever they are. It can also give live reports
and forecasts.
In general, it helps eradicate (to a limit) the present business problems like:
No sales forecast
No sales performance
Unavailability of product information
Long process for approval
Need to depend on individuals and,
Unavailability of customer interaction
Taking the vast opportunities through CRM, we have advantages such as:
The sales force with immediate access to purchases history, accounts, product information,
promotional offers and final price list can increase their sales values.
Companies that are not providing mobility options are struggling to fill their vacancies as
people do not prefer the traditional method of carrying a laptop and running from one lead to
6|Page
another. With mobility, the sales people are free to use the device they are comfortable with.
This will also make them motivated.
With mobility enabled, the interactions involved within the process is reduced drastically, and
thus more time can be put into new deals and opportunities. It also helps the sales force to
make more sales, resulting in revenues for you and commissions for them.
With mobility, you are able to provide the right information at the right time. This helps the
sales people answer the questions that is shot out by a lead. Sales closes faster as the sales
people is reactive to the queries and buying process.
Cash flow is the life blood of an organization. Using mobility in CRM reduces the time
between service delivery and billing thus helping you gain cash velocity.
Reducing the number of steps between the source of data and the collection of data improves
the accuracy of the information. Errors and misinterpretation can happen whenever there is lag
time or re-keying of data. Mobile technology provides the means to simplify data collection in
the field for better accuracy and real time data availability.
In the field, the device can be as important as the data collection. Laptops can set up a “barrier”
between the customer/lead and the sales technician. With an iPad or Surface device, the
experience is more collaborative and less intrusive.
It Increases Productivity
More and more employees, especially service delivery personnel complete their work without
ever going into the office. Technology today allows you to extend the organization to fully
support and embrace the remote workforce. Depending on priorities, automated scheduling
7|Page
will route employees to the most critical jobs or the closest jobs. With full information, the
technician can get to work upon arrival, without having to ask customers questions that have
already been answered. Automated processes allow the technician to focus on service delivery
instead of filling out forms.
It Improves Insight
The amount of information that is collected and available for every aspect of business today is
overwhelming. Information overload does not help employees make better decisions or deliver
better service. To get the full value from data, people need meaningful data that directly applies
to their role in the organization. The ability to go to one place and get all the information that
you need to accomplish the job at hand builds productivity and inspires better decisions.
8|Page
II.OVERVIEW
9|Page
2.1 EARTH MOVING AND MINING EQUIPMENT INDUSTRY
The earthmoving and mining equipment section lists equipment that has been designed primarily
to move earth and minerals in large earthmoving and mining projects. Some of this equipment
finds it place in other applications, however, and the use of bulldozers and articulated trucks on
road and highway projects are just a couple of examples.
One area of surface mining includes giant machines such as drills, electric shovels and giant
draglines, some of which have buckets that are capable of moving 160 cubic yards of material in
one scoop. Although somewhat smaller than the electric shovel or especially the giant dragline,
the mass excavator also fits here, which is basically a large version of the excavator that is used
more for mass excavation than for more limited exaction or trenching.
Underground mining equipment is aimed at moving material in a very headroom and space
environment. You will notice similarities with some of the surface mining equipment as well as
some very specialized pieces developed specifically for the underground mining application.
Mining and Construction Equipment demand during 2014 contracted by over 15% with 46-47,000
units from 72,100 three years back in 2012. Segments such as backhoes and heavy mobile cranes
were some of the worst impacted while wheel loaders fared a tad better. Despite various reforms
related to the infrastructure segment, the MCE industry did not witness traction in demand during
the first half of CY2015 also. Projects being stalled/shelved and abandoned continued to plague
the market due to sector specific issues, product viability issues and in some cases due to promoter
cash flow constraints. However, the demand in the Indian MCE industry picked up towards the
end of the current fiscal (October 2015 to March 2016), with demand for MCE growing by 6-7%
during 2015-16, followed by a sharper pickup of 20-25% during 2016-17. 2016 promises to be a
better year for most of the product segments as a result of the ongoing policy measures leading to
absorption of surplus inventory in the market. Scale up in demand for MCE is often not stable,
with assured job orders and cash flows triggering strong buying, as construction activity is picking
up momentum.
10 | P a g e
2.3 GLOBAL CONSTRUCTION AND MINING INDUSTRY 2016
Global demand for construction and mining equipment contracted by 8-10% in 2015-16.Weak
commodity prices are expected to cut-down capital expenditure by global resource majors such as
Rio Tinto, Vale and BHP Billiton among others, well into the next year leading to a fall in demand
for Mining equipment globally over the next 12 months. Further, investment in construction
activity would be based on chances given by local government policies and economic scenario
across the globe. The pace of growth in the global construction industry stabilized in 2015,
standing at 2.7% in real terms, unchanged from that recorded in 2014. There will be a slight
acceleration in output growth in 2016, with the pace of increase edging up to 2.8%, supported in
part by an improvement in global economic growth highlights from key global MCE majors--
Caterpillar Inc., Hitachi Construction Machinery Co. Limited and Komatsu Limited etc.
11 | P a g e
2.4 LARSEN & TOUBRO - HISTORY
L&T is one of the largest private sector companies in India to spread its business in various
domains like technology, engineering, construction and manufacturing.
Figure 2.1 (a) Henning Holck Larsen Figure 2.1 (b) S.K Toubro
L&T was founded by two Danish engineers who came to India on behalf of Danish engineering
firm F L Smidth & Co in connection with the merger of cement companies that later grouped into
the Associated Cement Companies. Henning Holck–Larsen and S.K. Toubro founded Larsen &
Toubro as a partnership firm in 1938 which in 1946 was made a limited company. The humble
beginning of one of India’s largest conglomerate was from a small office in Mumbai, which was
so small that only one of the partners could use the office at a time. ECC (Engineering Construction
Corporation Limited) was made a fully owned subsidiary of L&T in 1944.
12 | P a g e
The Second World War resulted in cutting of supplies from Denmark which forced Larsen and
Toubro to start manufacturing in India and it resulted to be a grand success. L&T made many tie
ups with foreign companies and marketed their products in India. This include marketing of
Tractors from Caterpillar. On Feb 6 1946 after their conversion of company as Limited saw
expansions as they started offices in Chennai Kolkata and New Delhi.
By 1950 they were successful in completing multiple project at various parts India which include
steel plant at Rourkela and Amul plant. In 1956, a major part of the company's Bombay office
moved to ICI House in Ballard Estate. A decade later this imposing grey–stone building was
purchased by L&T, and renamed as L&T House – it’s Corporate Office. 1960s saw many changes
in all levels one of the founder S.K Toubro retired. Many new subsidiaries were started. By 1973
Larsen and Toubro became one among India’s top 25 companies. Today L&T and its success story
represent the Image of modern India.
Turnkey Projects
Construction
Financial Services
Shipbuilding
13 | P a g e
Larsen & Toubro Ltd. (L&T) Networks
14 | P a g e
2.6 L&T CONSTRUCTION AND MINING EQUIPMENT
L&T Construction & Mining Machinery is part of the highly successful L&T Group, and engaged
in marketing and servicing of a wide range of equipment, deployed in the core sectors of the
economy. They are the leading manufacturers of hydraulic excavators in the Indian market for
over three decades. Over the years, they have introduced cutting-edge technology to the Indian
market, while meeting high standards of safety, reliability and productivity.
L&T is the authorized distributor of Komatsu Limited, Japan, for the Indian market. The product
portfolio includes Dozers, Rear Dumpers, Hydraulic Excavators, Wheel Loaders, Motor Graders
and Wheel Dozers. The range varies from small, medium to large-size excavators for varied
applications. L&T also distributes multi-axle heavy duty tipper trucks from Scania, Sweden.
With a highly-proactive sales network connecting strategic locations, coal belt areas, granite
clusters and activity centres, L&T looks to expand into newer markets, while consolidating on
existing territories. These products have enabled L&T to create new productivity standards in the
industry. We also provide unmatched product support to customers for service and parts through
a countrywide footprint of modernized service centres and dealer locations.
L&T Construction & Mining Machinery is driven by an innovative spirit and a constant quest for
top-class quality and sustained leadership.
In 1975, L&T started operations in Bangalore to manufacture hydraulic excavators for the first
time in India, with technical collaboration from Poclain SA, France. The company introduced
several models of excavators in the Indian market with enormous success, followed by other
crawler and wheeled equipment as well. In 1998, L&T-Komatsu Limited was formed as a joint
venture company between L&T and Komatsu Asia Pacific Pte. Ltd, Singapore, which is a wholly-
owned subsidiary of Komatsu Limited, Japan, one of the global giants in construction & mining
industry.
L&T has since acquired the shareholding of Komatsu in L&T-Komatsu Limited effective 15th
April 2013. Accordingly, the name of the company is changed to L&T Construction Equipment
Limited. The plant houses advanced CNC machines, robotic welding facilities, hydraulic shop and
automated assembly lines to roll out Hydraulic Excavators of various sizes – from 7 ton to 45 tons.
The products are benchmarked to international standards in design, materials, manufacturing and
15 | P a g e
quality. The plant is certified under ISO-14001 for environment management system and OHSAS-
18001 for occupational health & safety management system.
The product chosen for the suggestion of promotional strategies in this project is Komatsu
Hydraulic Breakers JTHB Series, consisting of 14 models. L&T Construction and Mining
equipment is the Indian distributors of Komatsu products. They handle the pre sales, sale and post
sales of Komatsu products. So a brief knowledge about this organization is also needed for
understanding this report.
16 | P a g e
2.7 ROCK BREAKER- INTRODUCTION
A rock breaker is a machine designed to manipulate large rocks, including reducing large rocks
into smaller rocks. They are typically used in the mining industry to remove oversize rocks that
are too large or too hard to be reduced in size by a crusher. It is powered by an auxiliary hydraulic
system from the excavator, which is fitted with a foot-operated valve for this purpose.
Additionally, demolition crews employ the hoe ram for jobs too large for jackhammering or areas
where blasting is not possible due to safety or environmental issues.
17 | P a g e
2.7.1 ROCK BREAKER – APPLICATIONS
Rock breakers are mainly used in diverse applications such as secondary breaking, rock breaking
in quarries, primary breaking, foundation, concrete, trenching/pipeline, tunneling/scaling and road
cutting. Specifically, secondary breaking is carried out in big quarries, foundation/breaking is in
building projects in cities and primary breaking is in mines. Besides this, applications such as
building demolition and tunneling are some other applications in India. Upcoming global
applications such as piling and underwater breaking may find some scope in India in the future.
Though there is a challenge in estimating the real market for hydraulic breakers in India, we can
fairly calculate it as approximately around 4,600 units in 2012, 3,800 units in 2013 and then around
4,000 units in 2014 and 2015. The major drivers for this growth will be the road and infrastructure
projects in the pipeline and the positive outlook of the mining industry that will lead to an increased
demand. Therefore, we can expect the market to grow to around 4,600 units in 2016.
From a hydraulic breaker, apart from optimal output, customers expect higher availability, low
maintenance cost and reduced noise output. To guarantee this demand, hydraulic breakers today
are pre-loaded with features optimal for maximizing productivity as well as long life of the carrier
and minimum machine downtime such as:
High power to weight ratio - Rock breakers should be able to deliver a higher blow energy
with the lowest possible dead weight.
Minimum components - will ensure low maintenance and auto lubrication ensures the
productive time is efficiently utilized.
Efficiency - will be achieved by converting less hydraulic power of the excavator to the
maximum hydraulic output by keeping the excavator safe while ensuring maximum output.
Features such as short side bolt with vibration reducing vulcanized rubber sleeves and
protected threads available in L&T-Komatsu hydraulic breakers that will ensure that the
equipment is able to work in the night with minimal noise even in big cities.
18 | P a g e
The rock breaker should invest the required energy on the rock to ensure maximum output
and least input cost.
Customers evaluate various factors before selecting the suitable brand/type of rock breakers for
their project. Type of application for which the breaker is being used for such as boulder breaking,
under water, tunneling or primary breaking is actively considered. Additionally, factors such as
the expected productivity where the rock breaker should be able to excavate the required tonnage
so as to meet or exceed the productivity requirements of the project and finally what is the working
space/site available for the rock breakers to operate within are also considered. Selection of
different modes while operating the breaker according to the operating conditions, leads to reduced
fuel consumption of the excavator.
Whether you’re tearing out a reinforced concrete abutment, scaling a tunnel, or running a pedestal-
boom at the quarry, L&T-Komatsu hydraulic breakers can assist you by providing superior impact
energy for exceptional performance in a variety of rock and concrete demolition applications. It
showcases 14 products in the Mini, Mid and Large range. These models covers weights from 90kg
to 4,550 kg for machine classes from 0.7 to 70 tons. With such a vast range cover, you are
guaranteed to find the right tool for the job.
19 | P a g e
Mini Range
Medium Range
Figure 2.5 – Rock Breakers Mini and Medium Size with Specifications
20 | P a g e
Large Range
21 | P a g e
2.7.6 FEATURES
High impact energy: A combination of 70% nitrogen gas and 30% hydraulic energy
provides powerful impact for high-performance productivity.
Simple design, longer life: With only 2 moving parts and a built-in dust prevention system,
you get maximum uptime and reliability.
Fewer parts: Up to 30% fewer parts than competition for reduced operating costs and less
maintenance.
Versatile with any carrier: Low sensitivity to back pressure means the Komatsu breaker
can be used with virtually any carrier.
Atlas Copco
Sandvik
Montabert
Furukawa
Soosan
Toku
NPK
Okada
Indeco
Daemo
22 | P a g e
From this list, the first 8 constitutes 60% of the total market share. The promotional strategies
mainly adopted by these manufacturers are trade discounts and advertisements given in heavy
machinery review magazines. The leader in promotion and sales is Atlas Copco, which also has a
very strong online presence.
DAEMO, 739
VOLVO, 55
CP, 54
G.B., 43 DOWIN, 110
SOOSAN, 79
Figure 2.7 – Rock Breakers Market
Economy segment
15% Bottom
Figure 2.8 – Rock Breaker Sales And Segmentation (583 units)
23 | P a g e
2.8.2 THE INDIAN MARKET POTENTIAL
The Indian market offers a huge potential for L&T-Komatsu rock breakers. Though the market
appeared stagnant for the last three years, after the realization of "achhe din'' there is a good market
potential in the next few years to come.
Growth can be expected in the second quarter of 2016 because of the new government projects
announced across India. L&T-Komatsu will continue to work towards the launch of improved and
different models of breakers to increase our reach to various segments of customers. If all goes
right and the business environment supports the market, then the expected market is between 7,000
to 8,000 units of breakers in the next five years.
The rock breaker segment has always been vital for various infrastructural developments like
constructions, demolitions, project expansion works, among others. Many expansion projects have
been planned in the highway sector, especially in hilly terrains and tunneling works. Further,
underground projects like Metro, pipelines, etc., are underway. All these developments mean that
the requirement for rock breakers is gradually increasing like never before.
Mining is another area where rock breakers find major applications. Though the global mining
industry is on the decline, India is witnessing a reverse trend. There is a lot of momentum since
last year due to opening up of iron ore mining and the government's plan to double the quantum
of coal mining in the coming years. Rock breakers are sure to find increased applications in mining
activities in the coming years. Rock breakers are largely deployed as attachments with excavators,
shovels, and backhoe loaders. With infrastructure projects taking off, especially in road and Metro
segments, there is huge demand for the above mentioned equipment in the coming years. This will
add to the demand for rock breakers as attachments to these equipment. All these positive
sentiments have collectively prompted major players in the rock breakers market to work on
meeting the emerging demands from construction and mining segments.
With the Budget 2016-17 out, all the eyes are on the government to see the measures that will be
taken. Construction and mining industries are in particular keen on the outcome of the Budget
measures and are gearing up with their future course of action.
24 | P a g e
2.9 KOMATSU LTD
Komatsu Ltd., established in 1921, is a diversified provider of industrial-use products and services.
While remaining an international leader in the field of construction and mining equipment, the
Company engages in other business, such as industrial machinery and vehicles, logistics,
electronics and other solutions-based operations. By upholding "Quality and Reliability" as the
most important management policy, Komatsu is resolutely committed to providing safe, innovative
products and services that best meet the needs and expectations of its customers around the world.
Apart from a number of manufacturing units in Japan, Komatsu has plants in the US, Canada,
Mexico, Brazil, UK, Germany, Italy, Sweden, Norway, Russia, Indonesia, Thailand, China and
India.
Komatsu, as one of the world's largest manufacturers of construction, mining and utility
equipment, is proud to provide its customers with leading-edge technology and excellent after-
market support, and the quality that can be relied upon.
Komatsu provides a wide array of construction and mining equipment, ranging from super-large
machines capable of mining applications to mini units for urban use. The range also includes a
huge variety of attachments, along with system products.
Other Products offered by Komatsu include Forest Machines, Forklift Trucks, Large Press System,
Medium Sized and Small Presses, Sheet-metal Machinery, Machine Tools, Excimer Lasers and
Temperature-Control Equipment.
25 | P a g e
2.9.1 KOMATSU HISTORY IN INDIA
Komatsu entered into a technology transfer agreement with a government organization and
progressively introduced wide range of construction machines, manufactured by the
collaborating organization. Accordingly, to support the government company, in the year
1969 Komatsu shifted its liaison office to Bangalore.
Appointed Larsen & Toubro one of the leading company in construction and engineering
industry as the authorized distributor in India to market and support a wide range of
Komatsu construction and mining equipment.
Komatsu entered into an agreement with Larsen & Toubro to jointly manufacture world
class small and medium sized hydraulic excavators. This establishment is named as L&T-
Komatsu Pvt. Ltd., wherein we produce six different models of hydraulic excavators,
namely PC71, PC130, PC200, PC300, PC450 and the recently introduced PC210 with on-
board advanced information communication technologies.
Established Komatsu India Pvt. Ltd. (KIPL) a wholly owned subsidiary of Komatsu group
of company, Japan and built a world class indigenous manufacturing facility near Chennai,
Tamil Nadu. This facility manufactures mining dump trucks of 60 ton (HD465) and 100
26 | P a g e
ton (HD785); also established branch office in Bangalore to support the distributor's
activities across India.
Established Industrial Machinery Division in Gurgaon near Delhi to fulfil the increasing
demand for quality industrial press machines and metal fabricating machines.
27 | P a g e
Komatsu India Pvt. Ltd. (KIPL) Networks
2x Parts depots
6x Frontline office
28 | P a g e
III.METHODOLOGY
29 | P a g e
3.1 STATEMENT OF THE PROBLEM
No promotional strategies for the new range of rock breaker machines that comes as an
attachment to the excavators.
No mobility in CRM even though the sales team needs it.
3.2. OBJECTIVES OF THE STUDY
The objective of the study is to suggest promotional strategies for heavy equipment attachment
-rock breakers that comes in JTHB category with respect to the ideas and suggestions given
out by the sales executives.
To increase the productivity of the company by implementing Mobility in the existing CRM
software of the office through educating the sales team and the authorities about its importance
in the present sales scenario.
List down the potential uses of mobility and how convenient it is to use
Identifying the present CRM system in the office
Develop a mock mobile based app integrated with the present CRM to exhibit the user
friendliness to the sales team
30 | P a g e
Make a presentation to show in the office that can convince the sales team to adopt mobility
3.4. LIMITATIONS
The time period of study was only for two months so it was not possible to check how
efficient the suggested methods are.
The sales staff were not that easy to convince about the new trends in promotion as well as
the technology trends. They were not that receptive, and did not like changes.
3.5 SEGMENTATION
The rock breaker’s market is globally segmented into 3. They are as follows:
Premium Breakers
Value Breakers
Basic Breakers
This segmentation is done mainly based on price and performance with different OEMs.
Figure 3.1 Breaker Segmentation on Price & Performance (Source: L&T Construction and Mining Machinery)
31 | P a g e
3.6 PROMOTIONAL STRATEGIES
Promotion is one among the key elements of the marketing mix consisting: Product, Price, Place,
and Promotion. This is a very important component in marketing as it boosts the brand recognition,
acceptance and sales. Promotion is comprised of various elements like:
Advertising
Communication through mass media (TV, Radio, Magazines), the firm pays for this type of
communication.
Public Relations
This is the process of developing a positive relationship between the organization, the media and
the public. Good public relationships involves creating favorable publicity through the media and
minimizing the impact of negative situations.
Sales Promotion
Promotions are designed to create a short term increase in sales. Example: money off coupons,
discount codes and “flash sales".
Personal Selling
Sales interaction between the firm's sales representative and a consumers on a one to one basis.
This involves sending marketing mediums like brochures to a named individual or an organization.
Firms collects lists of names, e-mails and phone numbers for this purpose. This is highly effective
when the direct mail recipients (collected names and addresses) are within the firm's target market.
Internet Marketing
Placing advertisements on internet pages through programmes such as Google's AdWords, and
placing it on pages where there is a high probability of your customers viewing them.
32 | P a g e
Social Media
Firms posts daily or even hourly messages on social media such as Facebook and Twitter to keep
customers interested in their organization and to stay active in the news feeds. They even run
promotions, flash sales and discounts just for their social media readers.
Sponsorship
This is the process of paying up for an event which has a large number of audience so that your
brand is visible to a large public and thus lifting up the recognition factors. Sponsorship is
commonly used in sporting events; player's clothing and stadiums will be covered in the firm's
branding and even the tournament may be named after the firm.
Here at L&T’s Construction and Mining Equipment marketing office, the above suggested
promotional strategies are not implemented as they might have felt that it may not be effective as
the machines that are dealt with are very high end not useful to the general public. The only
promotions happening here is through word of mouth and the sales are mostly from loyal
customers and government work departments according to the sales chief. Therefore, while
figuring out the ways to help develop promotional strategies for the rock breaker machine, the
questions that I compiled, and the answers to them are as follows:
How can the firm send marketing messages to their potential buyers?
As the product comes as an attachment to the excavator machines, the potential buyers will
obviously be the present owners of excavators or track hoes. Therefore, the best way to
send marketing messages to the potential buyers is by taking out a list of all the excavator/
trackhoe owners, arranging and sorting them on the basis of models they hold, and calling
them later. They should be briefed on the product specifications, why and when to use it.
After this, their addresses can be gathered and brochures including the specifications and
price range can be given out. The same can be done via e-mails also. Another suggestion
is to sell the rock breaker along with the excavator to new customers with additional
discounts or extended service warranties.
33 | P a g e
When is the best time to promote the product?
The best time to promote the product would have been the time of its launch as the potential
users may not be knowing even of the existence of this product. The launch should have
been grand and very public. The present range of rock breakers in the market are of
premium class. Therefore, the potential must be used to the maximum by giving out the
best possible promotions available.
Can the firm reach out to potential audience and buyers through television ads?
No. The chances of promotion through television ads will not be useful as the potential
customers may not be a constant viewer, or a viewer at all as they will be in the job fields
most of the time.
Social media won’t be an apt choice for reasons similar to why the television ads won’t
work. However, promotion through the internet has chances of working as the potential
users browse the internet for features and modifications that can be made to their present
equipment. Therefore, a strong online presence of the product will help it get noticed by
the users and can guide to a potential lead.
The major competitor to this product in the field is Atlas Copco. They are a leading
manufacturer and distributor of heavy and mining equipment. The promotional strategies
used by them are mainly channeled online. They have very informative websites and
articles regarding the product range they have got to offer. Another of their promotional
strategy is to make their brand visible by making all their executives take part in global and
national summits and meetings in the heavy equipment field. They talk and take classes
there, thus making the brand more visible and known to the public. They also provide
webinars and gives out interviews for online magazines. These are all promotional
strategies one way or another.
34 | P a g e
3.8 MOBILITY IN CRM - IMPLIMENTATION PROCESS
After getting an in-depth knowledge about the present CRM (after sales module), the next step
was to figure out ways to integrate their present CRM modules into a mobile application along
with additions that can be put into use via smart phone (Geo Location, Camera, Messaging etc).
After arranging the functions and features that is expected by an employee from mobile CRM, a
mock application was developed using photoshop just to show the employees how user friendly
mobile CRM can be, and to show them the innovations that can be bought about. This was put out
to them using a prezi presentation, demonstrating the advantages of using mobility. Even though
the sales team was very receptive to the presentation, the senior managers was doubtful whether
the sales team will put good use to it as the existing technology itself is not used properly. However,
they think change into mobile phones from the bulky laptops will encourage the sales team to use
the existing CRM process efficiently.
35 | P a g e
3.8.1 EXISTING CRM (AFTER SALES MODULE) PROCESS AT L&T
36 | P a g e
IV.ANALYSIS
37 | P a g e
4.1 QUESTIONNAIRE ANALYSIS
Data regarding the current promotional strategies employed by L&T for the rock breaker machine
was collected through a survey conducted among a population of 20 sales executives in the office.
Through this primary data collection, the information I collected is given below:
Q1: What is your opinion regarding the present promotional strategies used in L&T for the Rock
Breaker Machine?
From the graph, we can see that the sales team is not satisfied with the promotional strategies used
at L&T CME. From the 20 respondents, 4 has said it is very bad, 11 are under the impression it is
bad and 5 respondents thinks it is average.
Q2: Which advertising media among this do you think will work the best for this machine?
38 | P a g e
Majority (75%) of the respondents thinks that advertisements through magazines or newspapers
are the best.
None of them has suggested television ads, 14 respondents suggests websites and social media
advertisements can also be adopted.
Q 3: Which selling methods among this do you think will work the best for this machine?
Upon conducting an interview with a few sales people, I came to know about the present selling
methods. The multiple choices to the answers were then made according to this answers.
According to the respondents, personal selling and direct mail are the best ways to find leads and
convert them. None of them thinks telemarketing would prove helpful.
Q4: Which promotional tools among this do you think will be effective for the Rock Breaker
segment?
According to the respondents, direct marketing is the best promotional tool that can be adopted by
L&T for increasing the sales of Rock Breaker Machine. Followed by sales promotion (discounts).
39 | P a g e
They see little scope in media advertisements and event sponsorships. However, none of them
thinks public selling and public relations can be used as an effective promotional tool for the
machine.
Q5: Do you think discount offers made by the company are influential to the customers (In the
case of Excavators)?
90% of the sales executives thinks that discount offers made by the company will have a positive
impact on the sales decision of the customers. Whereas 10% is under the opinion that discount
options does not have any influence on the customer’s buying decision as they will relate quality
to price. Since excavator’s sales is influential on the rock breaker’s sales this information is very
relevant.
Q6: How important is price in the purchase decision process of your customers (In the case of
Excavators)?
40 | P a g e
2 respondents thinks that price is least important to the buying decision of the customer as there is
no considerable price difference in the products offered by the competitors. Apart from this factor,
customer loyalty also plays a major role in this decision. 3 respondents thinks that pricing is of
average importance to the buyer due to reasons similar to the prefixed set. 11 respondents thinks
that pricing is important to the customers as some of them maybe new to the field and may not be
loyal to the brand. For these set of customers, even the slightest change in price can influence the
purchase decision. 4 respondents are under the idea that pricing is the decision setting variable in
the sale of rock breaker machines.
Q7: Does the purchase decision of your customers change if the company provides financial
facility/instalment facility?
As L&T does not provide credit or instalment facilities as of now, 70% of the respondents feel
there is a chance it can alter the decision of the customer. Whereas, 30% of them is sure that this
will be a decision variable and can boost up the sales.
41 | P a g e
V. LEARNINGS &
DELIVERABLES
42 | P a g e
5.1 LEARNINGS
A detailed understanding about various marketing activities initiated in the organization
and reason for adopting the same.
Understood the working principle behind rock breakers
Got a better understanding about how to go about creating and executing a survey.
Got a chance to look into real-time data and find out the impact of various promotional
strategies on sales.
5.2 DELIVERABLES
Helping the office in implementing mobility in CRM was the secondary objective of the project.
It was noticed by the systems head that even though there is an excellent CRM the sales executives
have not been using it properly. The reason for this improper usage was because of the lack in
mobility of the CRM. My part in this was to convince the authorities and sales executive to use
mobility. This was done using a presentation and development of a mock mobile CRM application.
The screenshots of the mock application is given in the next page.
43 | P a g e
5.3 SCREENSHOTS OF THE MOCK APP
44 | P a g e
VI. FINDINGS,
SUGGESTIONS &
CONCLUSION
45 | P a g e
6.1 FINDINGS
6.1.1 Promotional Strategies
No promotional strategy is implemented in the rock breaker segment right now.
The survey conducted among the sales executives suggests that more promotional methods
should be used for the successful sale of the machine.
The only source of sales right now is from loyal customers and government construction
agencies.
The reasons for low sales can be attributed to no promotions, high pricing strategy
compared to competitors, and lack of discounts.
Direct marketing is the best possible promotional strategy according to the sales executives.
Advertising through magazines, websites, and social media is the best way to send
marketing messages about these products.
Personal selling and direct sales are the best ways to sell the product.
6.1.2 Mobility in CRM
Mobility is not currently employed in L&T
L&T did not adapt to mobility because of its cost and training expenses
Employees are not using the present CRM efficiently because of the difficulty they have
in meeting clients and leads with heavy laptops
Now it is a must for L&T sales office as the sales team is practically youth and gadget
savvy
Sales team sees the requirement for mobility for easing out their sales process
Most of the similar firms has adopted mobility long back
46 | P a g e
6.2 SUGGESTIONS
6.2.1 Suggestions For Promotional Strategies
From the survey conducted among the sales executives, it is evident that they want more promotion
in the rock breaker division of the office. Promotional strategies in B2B is very different than in
B2C. Mere suggestion of strategies will not work thus. In B2B also, when it comes to heavy
equipment, the promotion is very much different than other B2Bs. Even though the sales
executives suggested that print media, websites and social media will do the work, comparing their
present strategies with the competitor’s promotional strategies, the suggestions that were
recommended to the office are as follows:
The website is likely to be the first place potential buyers who are investigating the equipment will
go to find information about the offerings. In order to provide everything they are looking for and
improve the chances that they make a step to contact, or make a purchase, the website should be
robust, responsive and thorough.
Clear Navigation
The homepage should give the viewer a complete understanding of what we offer, as well as clear
links to more specific pages. Most people skim through copy on webpages, so add bullets and call-
out boxes for clarity and ease. Be sure that the navigation is kept as simple as possible
If a business is looking into buying a piece of heavy equipment, it’s critical that they know the
specs of the equipment offered. For this, it is necessary to include every product offered on site.
Make sure to add additional items that can be purchased to modify the equipment for the needed
purposes.
Photos
Images speak much louder than words, and can add a great deal of visual clarity to text. Invest
money in high-quality, professional photos, and include them on the site.
47 | P a g e
Purchasing Information
Make sure to make it 100% clear how sales process works. Are orders accepted online? Do you
offer rentals? Do you work with businesses directly? Keep this information simple for easier
understanding by the readers.
Facebook is not only for B2C companies. In today’s world, Facebook business pages are expected,
so regardless of the fact that your company is in the heavy equipment industry, you should still
have an active Facebook presence. This process can be delegated too someone you trust in the
office.
It is wise to create a YouTube channel. A channel is the perfect platform to clearly illustrate what
the equipment is capable of, and can be much more interesting than images. Videos of your
equipment in action, video testimonials from happy customers can be posted. Not only will this
helps address important aspects of the equipment, but also educate the consumers, YouTube is a
convenient platform for giving real action information about the equipment.
Every industry has its own unique professional publications, and many people see them as a go-to
resource for staying up to date with industry news and trends. Build connections with these
publications, and reach out to the editorial staff and see if they are looking for guest articles or
columns. Many of them are open to this kind of arrangement. You cannot talk about your product
as being better than another, but you’ll at least get your name and company some visibility. Plus,
if the publication is online, it can be a great way to build high-authority links to your site.
48 | P a g e
Offer Your Expertise
Since the company is well known in the field, executive managers will be seen as experts in the
field. Give out interviews and talk in conferences. Writers for industry publications may want to
speak with you about your company or the field in general. If so, be willing to offer your expertise.
No one wants to read an unhelpful or generic article, so you have to be prepared to share useful,
insightful information.
Do attend the major conferences and conventions in the industry. Most heavy equipment
manufacturers are hesitant to do it. However, it helps increase the recognition and a vast number
of leads.
Giving trade discounts to the dealers will help boost up the velocity of sales in new dealerships.
As every customer may not be a loyal one, and as the product is new, we have to initiate the sales
process through this method.
49 | P a g e
6.2.2 Suggestions For Mobility In CRM
As there are many mobile platforms in the present scenario, it is best if you could make apps for
the major platforms like Windows Mobile, Android, iOS, and Blackberry.
Supply Tablets
Not everyone maybe having the phones that can meet the app requirements. It is suggested to give
the sales team tablets as they have better battery life and bigger screens.
The sales force will not be having much use of the mobility CRM application if it is not user
friendly.
Make sure that the present desktop CRM is updated to be used side by side with the CRM
application.
It is best to make off line entries possible as the application can be used when there is no cell phone
reception also. The newly entered data will be synced with the database when the reception is
available again.
In the app, integrate all functionalities of the smart phone so that the sales executive can use
features such as camera, geo location, storage, calls, messaging and e mail from the app itself. It
also helps keep log of the communications made between the sales executive and the customer or
a lead.
50 | P a g e
6.3 CONCLUSION
During the course of internship, various promotional strategies that are to be used in the promotion
of heavy machineries and mining equipment was understood. The technology and working
principle of the rock breaker machine was understood in detail, and the service end for L&T
equipment was studied. The office was happy to know the sales team’s insight on promotional
methods for the machine, and the suggestions given were taken positively. Apart from these, the
CRM module at L&T was understood in detail and the benefits of integrating mobility into it was
counted. The difficulties faced by the sales team and management due to inefficiency in CRM was
also seen. The suggestions given to the head systems development regarding mobility in CRM was
well received and the initiative was taken to implement mobility.
51 | P a g e