Dredging Corporation of India Project Work

DREDGING CORPORATION OF INDIA LIMITED
CHAPTER-1
INTRODUCTION
1
DREDGING
CORPORATION OF INDIA
1.1 INTRODUCTION
Definition: A dredgers is a piece of equipment which can dig,
transport and dump a certain amount of under water laying soil in
a certain time.
The quantity of soil moved per unit of time is called Production.

Dredgers can dig hydraulically or mechanically. Hydraulic
diggings make use of the erosive working of a water flow. For
instance, a water flow generated by a dredge pump is lead via
suction mouth over a sand bed. The flow will erode the sand bed
and forms a sand-water mixture before it enters the suction pipe.
Hydraulic digging is Profit . W.J.Vlasblom Pagina 1 van 27 May

2003 Wb3408b Designing Dredging Equipment mostly done with
special water jets. Hydraulic digging is mostly done in soils such
as silt, sand and gravel.
Mechanical digging by knives, teeth or cutting edges of dredging

equipment is apply to cohesive soils. The transport of the
dredged soil can be done hydraulically or mechanically too, ether
continuously or discontinuously.
Hydraulically Mechanically Continuously Transport via pipeline

Transport via conveyor belts Discontinuously Transport via grab,
ship, car Deposition of soil can be done in simple ways fit by
opening the grab, turning the bucket or opening the bottom doors
in a ship. Hydraulic deposition happens when the mixture is
flowing over the reclamation area. The sand will settle while the
2
DREDGING
water flows back to sea or river. Dredging equipment can have

these three functions integrated or separated.
1.2 NEED FOR THE STUDY
The study of dredging is an area where ther is lot of scope for

marketing and out of which ocean dredging has assumed
tremendous importance in maintaining required depths at major
and minor ports and for the handling the traffic at the ports and
inland dredging will help in developing inland water ways for
navigation, maintaining the depth in irrigation cannal, lakes, and
rivers, restoration of storage capacities in reservoirs etc
So dredging is the area where there is lot of scope of marketing

and clients are scatterd not only all over the country but also
world wide
3
DREDGING
1.3 OBJECTIVES OF THE STUDY:
The practical study of D.C.I LTD, and its marketing activities has
been undertaken with the following objectives:
 To review and study the overall aspects of marketing of the

dredging corporation of India limited
 To study the ocean dredging and inland dredging and their

specific elements of marketing
 To study the marketing strategies of the dredging

corporation of India limited
 Analyze the marketing functions of dredging corporation of

India
 To study the other activities of dredging corporation of India
4
DREDGING
1.4 METHODOLOGY:
The study was conducted in the organization with a view to

analyse the marketing strategies in the dredging corporation of
india limited
Sources of data:-
a)primary data
As far as this topic is concerned different members of DCI had

been consulted to elicit required information, managers of the
concerned departments have been collected
b) secondary data
the aid of the following papers was taken to acquiring information
1) Through company annual reports and brouchers
2) through periodical reports
3) through the annual requirements of inland water ways

authorities of India
5
DREDGING
1.5 LIMITATIONS
 Data given is inadequate as the officials are compiled to the

norms of corporation
 To analyse the clients of DCI by form of quettionarries is not

possible as they are spread all over the world
 To analyze the competitors their data is almost a secret
 Dci is a service-oriented organization so various

interpretations may not hold good
6
DREDGING
CHAPTER-2
7
DREDGING
INDUSTRIAL PROFILE
2.1 INTRODUCTION TO INDUSTRY
Profile
The Dredging Corporation of India Limited (D C I) was established

in the year 1976 to provide dredging services to the Major Ports
of the country in India. D C I is a pioneer organization in the field
of dredging and maritime development. D C I is fully equipped to
8
DREDGING
offer the complete range of dredging and allied services to the

users in India and Abroad and to provide the vital inputs for the
national development. It's Head Office is strategically situated on
the east coast of India at Visakhapatnam, DCI helps to ensure
continuous availability of the desired depths in the shipping
channels of the major and minor Ports, Indian Navy, Fishing
Harbors and other maritime organizations. It further serves the
Nation in a variety of ways, be it capital dredging for creation of
new harbors, deepening of existing harbors or maintenance
dredging for the upkeep of the required depths at various Ports
along the 7,500 Kms coastline of India.
D C I owns most modern and sophisticated fleet consisting of

three Cutter Suction Dredgers and Ten Trailer Suction Dredgers.
D C I is an M.O.U. signing Company with Government of India.
D C I is a schedule B & a MINI RATNA- CATEGORY-I Public Sector

Enterprise. D C I is one among the Public Sector Undertakings of
India in which the Government has disinvested it's share holding.
The shares of the Company are listed at Delhi, Mumbai, Calcutta
& National Stock Exchanges of India
2.2 Industry Scenario:
The size of the Indian dredging industry is estimated to be

around Rs. 6000 crore of which the Dredging Corporation of
9
DREDGING
India (DCI) is a major player. Dredging companies also spread

their risk by involving themselves in other underwater
construction works, required in offshore oil exploration and
laying of oil and gas pipelines, inland waterways, building of
roads and bridges on water bodies and sea reclamation
projects. From the past data it can be safely assumed that the
industry would be bullish in the future. There also exists the
massive 600 crore project for deepening of the main approach
channel which has been proposed by Jawaharlal Nehru Port
Trust.
10
DREDGING
2.3 GOVERNMENT POLICY
New policy ends monopoly of Dredging

Corporation
Our Correspondent / Vishakhapatnam Feb 05, 2004,

The recent announcement by the central government on the
new national dredging policy has come as a major blow to
Dredging Corporation of India(DCI), exposing it to competition
from both domestic
11
DREDGING
2.6 MAJOR PLAYERS OF D.C.I
BOARD OF DIRECTORS
CAPT.
S.S.TRIPAT
12
DREDGING
HI
• CAPT.Shri. S.S.TRIPATHI - Chairman and Managing

Director
Dredging Corporation of
India Ltd.,
"Dredge House", Port
Area,
Visakhapatnam - 530
035, India
• Shri P.V.R. Murthy - Director (Finance)
Dredging Corporation of
India Ltd.,
"Dredge House", Port
Area,
Visakhapatnam - 530
035, India
• Shri.S.VasudevaRao,IPS
Chief Vigilance Officer
HEAD OF DEPARTMENT:
13
DREDGING
• Shri.A.KrishnaRao
General Manager GM
(Tech)
• Shri.A.Bose
General Manager
(HR)
• Shri.V.V.N.Murthy
Dy. General Manager
(IT)
• Shri.K.A.Sreekanth
Company Secretary
• Shri.K.Kiriti
General Manager
(Fin)
• Shri.M.SankaraRao
HOD(Ops)
• Shri.M.SankaraRao
HOD(Ops) (Mktg)
.
Capt.Shri.P.M.Sarava
nan
Dy. General Manager
(HSE)
14
DREDGING
2.i Composition of Board of Directors as on 31/03/2008:
Pursuant to the Articles of Association of the Company
The Members of the Board of Directors are appointed by the
President of India. Part-time Non-Official Directors are
Independent Director pursuant to Clause 49 of the Listing
Agreement. The composition of the Board as on 31/03/2008 is As
under:-Name Executive/ Non-Executive Official/Non-Official
Age Qualifications
i) Capt .S. S. Tripathi, - CMD Executive Whole-time official
ii) Cmde.G.V.Ratnam- ,DOT Executive Whole-time official
iii) Shri P.V.Ramana Murthy -DFN Executive Whole-time official
iv) Shri Rakesh Srivastava - IAS Non-Executive Part-time official
v) Dr.A.R.Goyal - Non-Executive Part-time official 53
vi) Dr.S.Narasimha Rao - Non-Executive Part-time Non-official
vii) Shri S.Balachandran - Non-Executive Part-time Non-official
viii) Dr. Debashis Sanyal- Non-Executive Part-time Non-official
ix) Prof.Gautam Barua - Non-Executive Part-time Non-official
2.5 ARTICLES RELATING TO OUR COMPANY
 DREDGING CORPORATION OF INDIA TO OPEN OFFICE IN

BAHRAIN,SETUP
 DREDGING CORPORATION OF INDIA RECIEVES BIDS FOR 1.5MNN

SHARES
Dredging Corporation of India
Limited
Type Public Sector Unit
Industry Dredging, Land

reclamation
Founded 1976
Headquart Visakhapatnam, India 2.6

ers INFORMATION
ABOUT D.C.I
Key people S.S.Tripathi(Chairman
and Managing Director)
M.S.Rao (Dy.Gen.
Manage(Ops.)
S.Vasudeva
Rao,IPS,Chief Vigilance
Officer
Products Maintenance Dredging,

Capital Dredging, Land
Reclamation, Beach
Nourishment
Revenue Rs.5,461,000,000
(Rs.546.1 crores), 2004-
2005
Employees 998 (2003)
Website www.dredge-india.nic.in
DCI Fleet
Trailer Suction Hopper Dredgers
 DCI Dredge - V
 DCI Dredge – VI
 DCI Dredge - VIII

 DCI Dredge - IX
 DCI Dredge - XI
 DCI Dredge - XII
 DCI Dredge - XIV
 DCI Dredge - XV
 DCI Dredge - XVI
 DCI Dredge - XVII
Cutter Suction Dredgers
 DCI Dredge - VII

 DCI Dredge - Aquarius
backhoe / dipper Dredgers
 DCI Dredge BH1
09/11/2010 the DCI Dredge BH1 was launched at shipyard De Donge

at Flushing East, Holland. Photo
Trivia
 DCI is superstitious about the number 13. No dredgers are named

with the number 13, nor are any cabins within the ships
Maintenance Dredging
Maintenance DredgingEvery Port or Harbour designed with certain

designed navigable depth in it’s channel or water bodies for the safe
entry and exit of ships. This depth will decrease due to deposition of
sediments and other material by the influence of littoral drift,
underwater currents, wave & tidal actions etc., in a course of time
which varies from Port/Harbour to Port/Harbour and depends on rate
of siltation. To restore it’s depth, removing the accumulated
material is inevitable in most of the Ports & Harbours. The process
of removing the accumulated material is called “Maintenance
Dredging”.
CapitalDredging
Capital Dredging The process of removing the “virgin” soil to create
the designed depth in the water bodies/adjacent to water bodies is
called “Capital Dredging”.
DCI is having two Cutter Suction Dredgers to meet he capital

dredging requirements in the India/Abroad. A New Cutter Suction
Dredger of 2000 Cu. M per hr dredging capacity will join the DCI
fleet during Oct-2004
Beach Nourishment
 Beach Nourishment The coastal line in the beach is subject to

deposition/erosion of sediments due to various reasons. However if
the rate of erosion is more than rate of deposition, it is necessity to
replace the quantity of erosion to maintain the coastal line intact.
The process of deposition of sediments in the coastal line from the
adjoining areas is called “Beach Nourishments”
DCI ‘s Dredge-XII and Dredge-XIV are capable of shore pumping up

to 2400m and Dredge-XVI and Dredge-XVII are capable of shore
pumping up to 2500m and rain bowing facility
Reclamation
 The process of raising the land level to create a artificial land either
just below or adjacent to water bodies is called “Reclamation”. The
fill material is generally used from the adjacent water bodies so as
to improve the depth in the water bodies as well as to use to same
for creation of land.
 DCI’s Cutter suction Dredgers and Trailer Suction Hopper Dredgers

Dredge-XII, Dredge-XIV, Dredge-XVI and Dredge-XVII are capable for
reclamation purposes.
2.7 Types of Dredging
• Capital Dredging
–Creating depths
• Maintenance Dredging
–Maintaining depths
• Inland Dredging
–Dredging in rivers, canals, lakes etc.
• Associated Activity
–Land reclamation and beach nourishment
• Other Dredgers
• Dredgers developed for specific situations.
• Example:-Side casing dredgers
-Dustpan dredgers
–Water injection dredgers

2.8 DREDGERS DETAILS
2.9 DREDGERS
DCI DREDGE-V
DCI DREDGE VI
DCI DREDGE-VIII
DCI DREDGE IX
DCI DREDGE- XI
DCI DREDGE-XII
DCI DREDGE XIV
DCI DREDGE XV
DCI DREDGE XVI
CUTTER SUCTION
DCI DREDGE VII

DCI DREDGE AQUARIUS
OTHER VESSELS
DCI TUG-VII
CHAPTER-3
COMPANY PROFILE
3.1 MISSION STATEMENT OF DREDGING CORPORATION
OF INDIA LIMITED
To provide Integrated dredging and related marine services for

promoting the country's national and international maritime trade,
beach nourishment reclamation, inland dredging, environmental
protection and ultimately to become a global player, in the field of
dredging.
3.2 HISTORY OF DREDGING CORPORATION OF INDIA
COMPANY HISTORY:
1976
- The company was originally incorporated as a private limited
Company on 29 March, and was subsequently converted into a public
limited
Company on 10 March 1992. The main object of the company is
Dredging activity i.e. engaged in executing capital and maintenance
dredging
for ports to open new parts and/or to expand the existing ports.
- Due to the difficulties experienced in catering to specialized
dredging requirements the Government of India decided to incorporate
a fully owned Govt. company under the Companies Act, 1956.
- Marine dredging ships are equipped with sophisticated equipment
Incorporating latest technology. There are 3 nos. cutter section
dredgers having a pumping capacity of 1000 cu.m./hr to 3640
cu.m./hr., 8 nos. trailer suction dredgers having a hopper capacity of
3450
cu.m. to 6500 cu.m. and 3 nos. inland dredgers having a pumping
capacity
of 100 to 200 cu.m./hr.
- Over the years, the corporation has developed expertise and
capability to undertake capital and maintenance dredging land
reclamation, desiltation of lakes and ponds, salvage and towage etc.
- 280,00,00 No. of equity shares issued, subscribed and paid up
(1,400 shares of these fully paid up; 279,98,600 shares issued for
consideration other than cash).
1984:
- It has acquired 3 Portable Cutter Suction Dredgers with a total
capacity of 16 lakh cu.m. Unlike the bigger sea going dredgers,
these portable dredgers can be dismantled into smaller sections,
transported on the road and reassembled in whichever site it is required
to
work.
2001
-Dredging Corporation is in the hunt for strategic partner in a bid
to get more exposure in foreign waters.
2002
-BSE informed its members that special margin of 25% has been
Imposed on dredging Corporation.
2003
-The crew/monthly paid workers at the behest of their union, Forward
Seimens Union of India served notice to the management of the company
that
They would commence their work to rule the agitation on DCI Dredgers.
-Dr Ramesh Gupta has ceased to be the directors of the Dredging
Corporation of India on completion of his term of 3 years.
-Dr.S Kathiroli, Project Director, National Institute of Ocean
Technology has been appointed as part time non-official director on the
board of Dredging Corporationof India Ltd.
2004
-Comes out with public issue of 5.60 million equity shares, receives
the highest subscription for a public offer of the government's stake
in a big-ticket company, cut-off price fixed at Rs 400 per share
2007
- Dredging Corporation Of India Limited has informed that Ministry
vide its letter No.PO-28028/20/2006-DCI dtd.7/9/2007 informed the
appointment of Capt. S.S.Tripathi as Chairman-cum-Managing Director
of the company. Capt Tripathi assumed charge as Chairman-cum-
Managing
Director of the company on 12/9/2007 from Shri A.K.Dhar. Shri A.K.Dhar
was holding the charge Chairman-cum-Managing Director DCI in addition
to his duties as Director (Finance).
3.3 OBJECTIVES OF DREDGING CORPORATION OF INDIA
LIMITED
MAIN OBJECTIVES:
[(Ref : As provided in the Memorandum of Association of DCI Limited
IIIA(1)]
1. To acquire and take over from the Government of India the MOST
(Ministry of Shipping and Transport) Dredger Pool and Central
Dredging Organization along with all or any of the assets, liabilities,
responsibilities and commitments of the Government of India in
connection therewith on which terms and conditions as may be
determined between the Government and the Company on its
incorporation.
2. To carry on all or any other business of owners, operators,

contractors, charters, agents, builders, wrights, brokers, repairers,
refitters, vendors and or salvagers of dredgers and dredging
equipment of all kinds including equipment afloat and ashore, ships,
oil tankers supporting craft, tugs, survey ships, light ships, barges
launches, lighters, floating cranes buoys, supply vessels, drilling
platforms, submersibles, amphibian vehicles, helicopters, marine
structures of all kinds pipe lines and special purpose vessels.
3. To carry on all or any of business of dredging, drilling, blasting,

land reclamation, shore nourishment, ocean, harbor and inland
towage, marine salvage, marine harbor and Inland towage, marine
salvage, marine construction, sub-sea structures, surveys and
associated work on land, in and under water in any part of the world.
4. To carry on all or any business of proprietors, managers and/or

operators of moorings, wharves, jetties and piers.
5. To carry on the business of Engineers, manufacturers, repairers,

assemblers, processors and/or fitters of engines, boilers machinery
and equipments and components thereof for dredgers and vessels of
all kinds and uses.
6. To carry on the business of consultants in all fields in which the
Company is engaged or authorized to engage in, including
dredging, dredger operation and management, dredging equipment
design, marine, mechanical, electrical, civil metallurgical and
electronic engineering, naval architecture, manufacture of ancillary
items and equipment, land reclamation and associated works, harbor
engineering, beach nourishment and shore protection, manufacture
of dredgers salvage equipment and ancillaries therefore; planning,
layout, repair, design or work necessary for execution of all the
above works for the benefit of the Company itself or for an outside
party with or without remuneration
3.4 SWOT ANALYSIS OF DREDGING CORPORATION OF INDIA
LIMITED
Strengths
• High technical competence, trained manpower, good quality top

management
Weaknesses
• Lack of full fledged marketing set-up because of full capacity

utilization in the past resulting from reserved market share
• High manning levels
Opportunities
• Maintenance dredging is a perennial requirement for ports

and India with its long coastline, resulting in good business
potential
• Growth opportunities in capital dredging from new ports
• Value added services for ports
• Dredging opportunities in South-East Asia & Middle East.
Threats
• Regulatory changes may erode dominant market share

• Preferential treatment in case of government contracts, if
removed, could impact growth and profitability
• Emerging competition from global dredging firms
eyeing India opportunities
• Low quotes by foreign companies with depreciated equipment to
capture market
Growth Strategy
• Maintenance Dredging
o DCI’S endeavor would be:
 To maintain market share in maintenance dredging as
DCI would capitalize on its know how of the Indian ports
in terms of soil, weather etc.
 DCI is also in the process of appointing marketing agents
abroad, identification of alliance partners etc. To
facilitate diverting part of its capacity to international
markets
Growth Strategy – Contd..
• Maintenance Dredging - Business

Environment in Addressable Markets
o Considering the regulations in international market and
availability of free market for foreign players, DCI can address
the market in the following countries:-
Singapore - Malaysia
Indonesia - Sri Lanka
Thailand - Taiwan
Philippines - Middle East
Bangladesh
3.5 UNIQUE ACHEIVEMENTS OF DREDGING CORPORATION

OF INDIA LIMITED
PAST ASSIGNMENTS
Major maintenance dredging assignments executed
Value of
work
(Average
Work done during of last
Sl. No. Client
the years 3
years)
Rs. in
Crores
1 Kolkata Port Trust, 1993-94, 1994-95, 385.00

Kolkata 1995-96, 1996-97,
1997-98, 1998-99,
1999-00, 2000-01,
2001-02, 2002-03,
2003-04, 2004-05,
2005-06, 2006-07,
2007-08 & 2008-09
1993-94, 1994-95,
1997-98, 1999-00,
New Mangalore
2000-01, 2001-02,
2 Port Trust, 36.00
2002-03, 2003-04,
Mangalore
2005-06, 2006-07,
2007-08 & 2008-09
1992-93, 1993-94,
1994-95, 1996-97,
Mormugao Port 1997-98, 1999-00,
3 18.05
Trust, Goa 2002-03, 2003-04,
2004-05, 2005-06 &
2008
1993-94, 1994-95,
1995-96, 1997-98,
Jawaharlal Nehru 1998-99, 1999-00,
4 Port Trust, 2000-01, 2001-02, 11.65
Mumbai 2002-03, 2003-04,
2004-05, 2005-06,
2006-07 & 2007-08
1990-91, 1992-93,
Cochin Port Trust, 1993-94, 1995-96,
5 30.59
Kochi 2001-02, 2002-03,
2003-04 & 2006-07
1993-94, 1994-95,
1995-96, 1996-97,
1997-98, 1998-99,
Kandla Port Trust,
6 1999-00, 2000-01, 52.97
Kandla
2001-02, 2002-03,
2003-04, 2004-05 &
2005-06
7 1992-93, 1993-94, 14.50

Mumbai Port
1994-95, 2002-03 &
Trust, Mumbai
2003-04
1992-93, 1993-94,
1996-97, 1997-98,
1999-00, 2000-01,
Paradip Port Trust, 2001-02, 2002-03,
8 37.49
Paradip 2003-04, 2004-05,
2005-06, 2006-07,
2007-08, 2008-09 &
2009-10
Visakhapatnam 1996-97, 2000-01,

Port Trust, 2001-02, 2002-03,
9 Visakhapatnam 2003-04, 2004-05, 19.53
2005-06, 2006-07 &
2007-08
Chennai Port, 1998-99, 1999-00,

10 14.66
Chennai 2001-02 & 2003-04
11 Indian Navy, Kochi 1997-98, 2001-02, 7.54

2002-03, 2003-04,
2004-05, 2005-06,
2006-07 & 2007-08
Indian Navy, 1992-93, 1993-94,

12 6.67
Mumbai 1998-99 & 2000-01
13 Okha Port, Okha 2001-02 6.39
Karwar Port,
14 1992-93 5.58
Karwar
Past Capital Dredging Assignments Executed
Value of
work
(Average
Work done during of last
Sl. No. Client
the years 3
years)
Rs. in
Crores
1 Essar, Hazira 1991-92 & 1993-94 23.10
Mormugao Port
2 1994-95 22.40
Trust, Mormugao
Kolkata Port Trust,

3 1994-95 22.40
Kolkota
Cochin Port Trust,

4 1994-95 19.60
Kochi
Kakinada Port,
5 1995-97 66.00
Kakinada
Jawaharlal Nehru
6 Port Trust, 1997-98 16.00
Mumbai
Paradip Port Trust,

7 1998-99 & 2002-03 19.90
Paradip
New Mangalore
8 Port Trust, 2000-01 26.70
Mangalore
Bharat Petrolium
9 Corporation, JNPT, 2001-02 30.32
Mumbai
Visakhapatnam
10 Port Trust, 2001-02 12.81
Visakhapatnam
Taichung Harbour,
11 2001-02 26.42
Taichung, Taiwan
12 Bahrain 2004-05 & 2005-06 96.40

PRESENT COMMITMENTS
Value of
Sl. Period Work
Port
No. (approx) Rs.
In Crores
Kolkata Port Trust

Maintenance 5 Years from January Rs.390.00 Per
1
Dredging at Haldia 2009 Year
Channels.
Visakhapatnam Port
Trust Annual
Maintenance
Dredging in NST and 5 Years from 2008-09 Rs. 6.00 Per
2
its approaches and to 2012 -13 Year
other areas of
Visakhapatnam Port
Trust.
Paradip Port Trust

Deepening of
January 2008 to June
3 channel at Paradip Rs. 234.52
2010
Port, Capital
Dredging.
New Mangalore Port

Trust
Maintenance 2 Years 2009-10 & Rs. 40.54
4
Dredging at NMPT 2010-11 Per Year
for the years 2009-
10 & 2010-11.
Murmagao Port 2009 Rs. 29.70 Cr.

Trust Maintenance
2010 Rs. 30.60 Cr
Dredging for the
5 years 2009, 2010 &
3.6 FUTURE PLANS OF THE COMPANY
Keeping the various developments in the dredging industry in view, this

company has initiated action in several areas, including
 consolidation of share in maintenance dredging in India
 More participation in capital dredging- acquiring necessary skills,

training company personnel, chartering dredgers
 Acquisition of dredgers with fuel efficient design and advanced

technology, fitted with sophisticated and state of the art
technology
 Reducing operational cost-focusing on fuel efficiency in ship

operations, streaming spare parts procurement systems
 Closing monitoring of repairs

B) FUNCTIONAL PROFILE
3.7 MARKETING:
MARKETING DEPARTMENT INTRODUCTION
While the marketing functions of the Corporation were being attended

to by the Contract Cell of Operations Department in 1999, a separate
Marketing Department has been set up to provide more focus on the
marketing functions keeping in view the Government policy to open
the dredging market to International Dredging Companies.
The basic objectives of Marketing Department is to focus more on the

business opportunities available in domestic and international markets
so as to ensure gainful deployment of dredgers and to expand its
market base outside India so as to take a proper mix of the market.
The main functions of the marketing are:
• to continuously work for optimizing the existing opportunities

• consolidate the existing market
• explore new market opportunities nationally and internationally
• identify the growth opportunities of the company in national and

international markets
• advise and assist management in acquiring additional resources

required to take the market demand and
• to assist the Corporation in diversifying the activities of the company

so as to enhance business of the company in the near future. At
present Marketing Department is headed by Dy. General Manager
and is assisted by Manager (Marketing) , and Asst. Manager
(Marketing ) to look after the marketing functions and to achieve the
over all objectives of the company. The Marketing Department is also
responsible for enhancing the corporate image of the company by
continuous interaction with the clients, obtaining feedback from the
clients and providing necessary inputs to the internal management for
enhancing the image of the company. The Head of the Marketing
Department is assisted by Asst. Manager (P R) in carrying out the
corporate image building and public relations activity of the company.
HR department is in the process of filling the vacant posts viz Genl.
Manager (MKTG) ,
3.8 PERSONNEL ADMINISTRATION :
MAN POWER:
The total number of employees (both Shore and Floating) in the
Corporation, Ist March, 2010 was 721, as against 767 during
the previous year, excluding MPWs.
EMPLOYMENT OF VARIOUS RESERVED CATEGORIES:
The manpower position with regard to various reserved categories is
as indicated hereunder:
A. Employment of SC/ST Candidates
The Corporation continued its efforts to fulfill its obligation in
providing employment opportunities to SC/ST candidates, in
accordance with the Government Policy. The overall representation
of SC/STs in the Corporation (bothShore and Floating
Establishments, but excluding MPWs) as on 31st March, 2010 was
SCs - 97, i.e., 13.45% as against prescribed percentage of 16.66%
and STs 39 i.e., 05.41 % as against the prescribed percentage of
7.5%.
B. Employment of Ex-Servicemen
The representation of Ex-Servicemen (both Shore and Floating) in
group
C and D categories in the Corporation was 13.28% and Nil as
against the percentage of 14.50% and 24.50% respectively as
prescribed by the
Government.
C. Employment of Physically Handicapped

The number of physically handicapped employees in the
Corporation as on 31st March, 2010 is 7 (seven), the group-wise
break-up A, B, C & D is
as furnished hereunder:-
Group Sanctioned Total strength No. of Percentage strength in
identified persons with posts with disabilities reference
actually to identified employed posts
The overall percentage of Group A&B posts comes to 3.27% of the

Identified posts in these Groups, which is higher than the
prescribed
3%. The overall percentage of Group C and D posts comes to 4.10%
of
the total sanctioned strength in these groups which is higher than
the
prescribed 3%. The Physically handicapped persons are being paid
additional conveyance assistance as per the Government
instructions.
D. Employment of women
The number of women employees on Rolls as on 31.03.2010 is 53

as
against 46 as on 31.03.2009. Out of them number of executives is
15 and
Non-Executives is 38.
Compliance with Governments Policy on Women:
Basing on the Supreme Court’s judgment and keeping in view the

Government instructions on sexual harassment of women at work
places, a
Complaints Committee headed by a woman officer was constituted
to
Inquire into the complaints of sexual harassment at work places. A
Complaints register is also being maintained.
DCI is a Life Member of the Forum for Women in Public Sector and
one
women’s representative from DCI has been nominated to the above
forum.
Apart from the Trade Unions, the problems, if any, relating
Particularly to women employees are looked into as and when the
same
are brought to the notice of the Management.
Existing Benefits and Welfare Measures for the Women Employees:
i) The women employees in the Corporation are entitled to 135 days
of
Maternity Leave.
ii) Special Casual leave not exceeding 14 working days is sanctioned
to
Regular women employees of the Corporation to undergo non-
puerperal
sterilizations.
iii) One day special casual leave is allowed to the regular women
Employees of the Corporation who had ICUD insertions.
iv) A rest room is provided exclusively for the women employees.
v) Working uniforms are provided to Group D women employees, as
per the scales prescribed in the Rules.
vi) The women employees are sponsored to various in- house and
also
external training programmes. Out of 53 women employees 24 had
undergone training during the past one year i.e., from 01.04.2009 to
31.03.2010.
WAGE SETTLEMENTS
A. Floating establishment:
i) The INSA-MUI (FG/HT) Agreements in respect of Floating Officers,
for
the periods from 2008 to 2010 and 2010 to 2012 have been
implemented.
ii) The 1NSA-NUSI Agreements, relating to Petty Officers for the
period
from 2008-10 was implemented upto 31/03/2010. The wage revision
is due
from 01/04/2010.
iii) The Wage Agreement of Crew for the period from 2008- 10 was
Implemented upto 31 /03/2010. The wage revision is due from
01/04/2010.
B. Shore establishment:
i) The Revised pay scales of Executives have been implemented

w.e.f. 01.01.2007
ii) Wage Revision for Non-Executive Employees in the Shore
Establishment is due from 01.01.2007 and negotiations are in
progress. INDUSTRIAL
RELATIONS:
The industrial relations in the Corporation continued to be cordial
throughout the year under report. WELFARE MEASURES:
The Corporation continued various welfare schemes viz., Family
Pension
Scheme, Group Gratuity Assurance Scheme, Personal Accident
Insurance
Coverage, Group Savings Linked Insurance Scheme, Contributory
Provident Fund, Maternity Benefit Scheme, Subsidised Canteen
Facility, Transport Subsidy, Medical Attendance, Leave Travel
Concession, Incentive Scheme for acquiring higher qualifications,
Merit Scholarship for the children of SC/ST employees, and
Mediclaim medical attendance facility for the retired employees etc.
Other welfare measures such as House Building Advance, HBA
Interest Subsidy, HBA Family Security Mutual Fund, Special casual
leave for maternity/paternity and incentives for adopting small
family norms and advances for childrens higher education, marriage
and purchase of computer etc., are extended to the employees.
PERSONNEL ADMINISTRATION:
•Manpower planning.
•Recruitment and training
•Job analysis, evaluation, monitoring and performance evaluation.
•Organization support services.
•For facilitating speedy and effective decisions the organization has
a management information systems division whose functions are :
•Data acquisition, evaluation and reporting to the concerned
departments and Chief Executive.
•Appraisal of project and Dredge performance Systems Engineering
and Appraisal of project and Dredge performance
•Systems Engineering and Automation on board dredgers.
•The dredgers are operated by experienced seafarers comprising
master marines with foreign going certificates.
•Chief Engineer Officers Electrical Officers and Radio Officers. They
are assisted by technical personnel crew for dredge operations,
maintenance of machinery etc. most of them were trained on board
out dredgers and also at reputed Institutes abroad in the fields of
dredging repairs and maintenance.
Most of the dredgers are provided with most modern electronic
equipment for position fixing, production monitoring etc. for
effective dredge operations. The Head Quarters of the Dredging
Corporation of India is equipped with latest computer systems with
integrated data processing facility for communicating with the
projects located in the different parts of the country. With the above
systems and expert manning at different parts of the organization,
both at the project fields, monitoring evaluation and control are built
in, so that the quality of the work will be consistent and uniform
through out the performance of the contract.
HUMAN RESOURCES: DCI in its fold has very senior master

mariners, marine /mechanical/civil engineers backed by vast
expertise in the operation and maintenance of sophisticated
dredgers. Technology is being continuously updated by imparting
training to the key personnel through expert dredge training
institutions in Holland. DCI has acquired expertise to undertake any
assignment, be it dredging, reclamation, salvage, vivil engineering,
construction or consultancy. DCI believes that a motivated and
trained work force is highly essential for any successful
organization. Apart from attractive remuneration, the corporation
provides good welfare activities including House Building Advance
at low interest.
INTERNAL CONTROL SYSTEMS AND THEIR

ADEQUACY:
The company has reasonable system of delegation at proper

levels and an adequate system of internal control commensurate
with its size and nature of its business. The company has an
adequate and independent internal audit department for conducting
extensive audit of various important operational and financial
matters both at head office and at projects. The internal controls are
reviewed by the internal audit department. The vigilance
department deals with vigilance and disciplinary cases with
emphasis on preventive vigilance.
C&AG conducts proprietary audit. The company has formed an audit

committee of directors consisting of four independent non-executive
directors, significant audit observations and follow up action thereon
are reported to the audit committee. The proceedings of the audit
committee are submitted to the board.
HUMAN RESOURCES DEVELOPMENT:

The Company is making sincere and concerted efforts for the overall
development of Human Resources, both on shore and floating
establishments.
During the year, 7 DCCP apprentices were inducted for training. Six
Management Trainees were also inducted in various disciplines,
during
the year. As part of social responsibility, students from local
institutions were guided for project works in Human Resource
Management, Labour Management, Marketing Management,
Information
Technology etc.,
Fifteen Electrical Officers and Seven Dredge Operators / Dredge
Engineers have undergone technical training. Lecture programmes
on
Work Culture, Enhancing Management Development, Leadership
were
arranged for the benefit of the employees by inviting eminent
academic
and professional personalities, during the year. As against target of
131 personnel to be trained under the MoU Targets, a total of 213
employees were trained in the specified program
MEMORANDUM OF UNDERSTANDING
For the 17th consecutive year, your company has signed Memorandum
of understanding with government of India for the year 2009-2010. The
company expects the rating of “VERY GOOD” FOR 2008-2009
YEAER 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
A.SHORE
EXECUTIVE 158 159 157 192 181 179

S
NON- 251 226 227 180 177 181

EXECUTI
VES
MANGEMEN - - - - 17 6
T
TRAINEE
S
TOTAL-A 409 385 384 372 375 366
B.
FLOATIN
G
OFFICERS 169 148 134 138 143 143
PETTY 66 60 43 20 39 22
OFFICER
S
CREW 270 256 254 239 39 22
MPW/DPL 20 20 3 - 1 1
TOTAL-B 325 484 434 397 393 356

GRAND 934 869 818 769 768 722
TOTAL
(A+B)
3.9 FINANCE DEPARTMENT:

FINANCELAL DEPARTMENT:
• Development and maintenance of accounting policies, internal and

external financial policy and control system.
• Financial analysis and contract review and report to board of
directors and government of India.
• Personal of Annual Accounts.
• Internal financial auditing and co-ordination with external auditing
authorities.
• Co-ordination with operations Department in rendering, project
execution and project closing.
BALANCESHEET OF 2010 RESULTS:
1. We have audited the attached Balance Sheet of DREDGING

CORPORATION OF INDIA LIMITED, VISAKHAPATNAM as at 31st March,
2010 and also the Profit and Loss Account of the Company for the year
ended on that date annexed thereto and the Cash Flow Statement for
the year ended on that date. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An Audit
includes examining on test basis evidence supporting the amounts and
disclosures in the Financial Statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub- section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure
hereto a statement on the matters specified in paragraph 4 and 5 of the
said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books.
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books
of account.
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Sub-section (3C) of Section 211
of the Companies Act, 1956.
(v) The provisions of Section 274(1 )(g) of the Companies Act, 1956
are not applicable to this company vide number 2/5/ 2001 -CL-V :
General Circular No.8/2002 dated 22-03-2002 issued by Ministry of
Law, Justice and Company Affairs, Department of Company Affairs.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
the Accounting Policies and Notes on Accounts give the information
required by the Companies Act, 1956, in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India.
(a) in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(b) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS REPORT
(Referred to in paragraph (3) of our Report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed assets.
(b) All the fixed assets have been physically verified by the
management during the year in a phased manner. As informed to us,
no material discrepancies were noticed on such verification.
(c) The Company has not disposed off substantial part of the fixed
assets during the year and the going concern status of the company
is not affected.
(ii) (a) Physical verification of inventory has been conducted by the
management at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size
of the company and the nature of its business.
(c) The Company has maintained proper records of inventory. As
informed to us, no material discrepancies were noticed on physical
verification as compared to the book records.
(iii) (a) The Company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956. In
view of the above, clause 4 (iii) (b), (c) and (d) are not applicable. (e)
The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. In view of the above,
Clause 4 (iii) (f) and (g) are not applicable. (iv) In our opinion and
according to the information and explanations given to us, there are
adequate internal control procedures commensurate with the size of
the Company and the nature of its business, for the purchase of
inventory and fixed assets and for sale of goods and services. During
the course of our audit, we have not observed any major weaknesses
in internal control.
(v) (a) According to the information and explanations given to us,
there were no contracts or arrangements referred to in Section 301
of Companies Act, 1956 that need to be entered into the Register
required to be maintained in pursuance of Section 301 of the
Companies Act, 1956. In view of the above, Clause 4 (v) (b) is not
applicable. (vi) The Company has not accepted any deposits from the
public during the year
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business. (viii) The
Central Government has not prescribed maintenance of cost records
under Section 209(1 )(d) of the Companies Act, 1956 in respect of
the nature of business carried on by the Company. (ix) (a) The
Company is generally regular in depositing the undisputed statutory
dues including Provident Fund, Investor Education and Protection
Fund, Income Tax, Sales Tax, Wealth Tax, ServiceTax, Customs Duty,
Cess and any other statutory dues with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of aforementioned dues were
in arrears, as at 31" March, 2010 for a period of more than six
months from the date they became payable. (b) According to
information and explanations given to us, there were no statutory
dues that have been deposited on account of dispute. (x) The
Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year. (xi) The Company has not
defaulted in repayment of dues to financial institutions or banks. As
there are no debentures, the question of repayment does notarise.
(xii) The Company has not granted loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, clause 4(xiii) of the Companies (Auditors
Report) Order, 2003 is not applicable to the company. (xiv) The
Company has not been dealing or trading in shares, securities,
debentures and other investments. There fore, clause4(xiv) of the
Companies (Auditors Report) Order, 2003 is not applicable to the
Company. (xv) The Company has not given any guarantee for loans
taken by others from banks or financial institutions. Therefore, clause
4(xv) of the Companies (Auditors Report) Order, 2003 is not
applicable to the Company. (xvi) The Company has not obtained any
term loans during the year and therefore, clause 4(xvi) of the
Companies (Auditors Report) Order, 2003 is not applicable to the
Company.
(xvii) The Company has not raised any funds on short-term basis or
long-term basis during the year and therefore, clause 4(xvii) of the
Companies (Auditors Report) Order, 2003 is not applicable. (xviii) The
Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under
section 301 ofthe Companies Act, 1956. (xix) The Company has not
issued debentures during the year and therefore, the clause 4(xix) of
the Companies (Auditors Report) Order, 2003 is not applicable.
(xx) The Company has not raised money by public issue during the
year and therefore, the clause 4 (xx) of the Companies (Auditors
Report) Order, 2003 is not applicable.
(xxi) In our opinion and according to the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during theyearthat causes the financial
statements to the materially misstated.
TURNOVER:
YEAR TURNOVER OF DCI
2006-07 626.21
2007-08 771.47
2008-09 832.22
2009-10 693.45
OPERATION DEPARTMENT:
While the operations departments monitor supervise the project units

for effective execution of the project, the project unit interacts with
client and operations departments at head quarters. In case of any
requirements deviating from those in contract, efforts are made to
resolve at project level and appraise the operation departments. Where
it requires the approval of head quarters, the same will be brought to
their notice forthwith along with action taken at project level. The same
is applicable in case of additional contractual requirements also. The
performance of project, with reference to the contract, plant and
equipment along with ancillaries and sub-contractor is documented by
every project unit and sent to head quarters for operations
department.At the same time, since DCI is a matrix type organization,
the project office interact with other departments at head office for
effective and qualitative functioning. Brief details of functions
supervised by other departments are given below.
TECHNICAL SERVICES:Repairs, maintenance and refit of dredgers and

ancillary crafts and equipment and fleet modifications. Purchase,
storage, transport and control of spares and stores and inventory
control of spares and stores. Development of fuel and lubrication
standards and generation of data base regarding performance of
equipment. Inspection of plant and equipment and certification.
Technical support for project unit and certification.
Technical support for project unit and identification of reliable

workshops.
ORGANIZATION STRUCTURE OF DCI
ORGANIZATION STRUCTURE:
The Organization Structure of DCI LTD is elected by the Government of
India. The Government of India will appoint the board of directors to
manage the company in terms of available power knowledge under the
article of Association. The Chairman and Managing Director is the Chief
Executive and Head of the organization and he executes his power from
the Head Office in Visakhapatnam.
ORGANIZATION STRUCTURE OF DCI
Balance sheet
Mar ' Mar ' Mar ' Mar ' Mar '
10 09 08 07 06
Sources of funds
Owner's fund
Equity share capital 28.00 28.00 28.00 28.00 28.00
Share application money - - - - -
Mar ' Mar ' Mar ' Mar ' Mar '
10 09 08 07 06
Preference share capital - - - - -
1,301.0 1,240.7 1,210.7 1,105.1
Reserves & surplus 3 8 8 1 965.01
Loan funds
Secured loans - - - - -
Unsecured loans - 5.51 16.53 30.16 46.39
1,329. 1,274. 1,255. 1,163. 1,039.
Total 03 29 32 26 40
Uses of funds
Fixed assets
Gross block 994.58 956.63 923.57 849.01 848.76
Less : revaluation reserve - - - - -
Less : accumulated
depreciation 710.12 644.37 591.87 552.06 515.29
Net block 284.46 312.26 331.70 296.95 333.47
Capital work-in-progress 269.13 238.50 235.52 143.22 24.41
Investments 30.00 30.00 24.50 14.50 5.50
Net current assets
Current assets, loans &
advances 982.69 988.76 933.20 977.24 914.18
Less : current liabilities &
provisions 237.25 295.24 269.60 268.65 238.16
Total net current assets 745.44 693.52 663.60 708.59 676.01
Miscellaneous expenses
not written - - - - -
1,329. 1,274. 1,255. 1,163. 1,039.
Total 03 29 32 26 40
PROFIT AND LOSS ACCONTING -2010
Profit & Loss
(Rs. in Crores)
Consolidated
Particulars Mar-10 Mar-09 Mar-08 Mar-07 Mar-06 Mar-05

INCOME :
Sales Turnover 645.43 685.28 705.37 572.95 506.97 524.85
Excise Duty 0.00 0.00 0.00 0.00 0.00 0.00
Net Sales 645.43 685.28 705.37 572.95 506.97 524.85
Other Income 49.99 160.97 66.15 66.99 52.02 55.50
Stock Adjustments 0.00 0.00 0.00 0.00 0.00 0.00
Total Income 695.42 846.25 771.52 639.94 558.99 580.35
EXPENDITURE :
Raw Materials 0.00 0.00 0.00 0.00 0.00 0.00
Power & Fuel Cost 172.70 203.16 202.72 172.06 145.91 114.88
Employee Cost 72.26 82.59 78.14 47.79 57.41 59.68
Other Manufacturing Expenses 258.37 411.75 270.32 154.82 94.29 91.01
Selling and Administration Expenses 13.09 16.97 21.15 13.94 13.16 20.58
Miscellaneous Expenses 34.56 17.32 5.17 6.10 36.25 67.34
Less: Pre-operative Expenses Capitalised 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenditure 550.98 731.79 577.50 394.71 347.02 353.49
Operating Profit 144.44 114.46 194.02 245.23 211.97 226.86
Interest 0.87 0.00 1.58 2.31 3.08 3.91
Gross Profit 143.57 114.46 192.44 242.92 208.89 222.95
Depreciation 66.02 52.68 41.73 36.58 37.09 47.10
Profit Before Tax 77.55 61.78 150.71 206.34 171.80 175.85
Tax 7.50 14.50 -5.05 16.50 17.50 73.50
Fringe Benefit tax 0.00 0.91 0.94 1.11 0.74 NA
Deferred Tax 0.00 0.00 0.00 0.00 -22.90 -10.94
Reported Net Profit 70.05 46.37 154.82 188.73 176.46 113.29
Extraordinary Items 0.00 0.00 0.00 0.01 0.01 0.01
Adjusted Net Profit 70.05 46.37 154.82 188.72 176.45 113.28
Adjst. below Net Profit 0.00 0.00 0.00 0.00 0.00 0.00
P & L Balance brought forward 296.72 287.73 232.55 153.36 71.49 7.75
Statutory Appropriations 0.00 0.00 0.00 0.00 0.00 0.00
Appropriations -22.20 37.38 99.64 109.54 94.59 49.55
P & L Balance carried down 388.97 296.72 287.73 232.55 153.36 71.49
Dividend 8.40 14.00 42.00 42.00 42.00 33.60
Preference Dividend 0.00 0.00 0.00 0.00 0.00 0.00
Equity Dividend % 30.00 50.00 150.00 150.00 150.00 120.00
Earnings Per Share-Unit Curr 24.52 15.71 52.74 65.03 60.92 38.82
Earnings Per Share(Adj)-Unit Curr 24.52 15.71 52.74 65.03 60.92 38.82
Book Value-Unit Curr 474.65 453.14 442.42 404.68 354.65 308.73
CHAPTER-4
THEORETICAL FRAME WORK
&
CONCEPTUAL DATA
THEORETICAL FRAME WORK
Marketing is a basic that it cannot be considered as a separate

function. It is the whole business seen from the point of view or its final
result, that is from the customers point of view. Business is not
determined by the producers, by the customers.
PETER F. DRUCKER
Marketing strategy[1][2] is a process that can allow an organization to

concentrate its limited resources on the greatest opportunities to
increase sales and achieve a sustainable competitive advantage[3]. A
marketing strategy should be centered around the key concept
that customer satisfaction is the main goal.
What is a marketing strategy?

A marketing strategy specifies a target market and a related
marketing mix. It is a big picture of what a firm will do in some market.
Two interrelated parts are needed:
1. A target market - a fairly homogeneous (similar) group of

customers to whom a company wishes to appeal
2. A marketing mix - the controllable variables the company puts

together to satisfy this target group .
Target marketing is not mass marketing
Note that a marketing strategy specifies some particular target

customers. This approach is called” target marketing” to distinguish it
form “mass marketing.” Target marketing says that a marketing mix is
tailored to fit some specific target customers. In contrast, mass
marketing- the typical production oriented approach –vaguely aims at
“everyone” with the same marketing mix. Mass marketing assumes that
everyone is the same – and it considers everyone to be a potential
customer. It may help to think of target marketing as the “rifle
approach” and mass marketing as the “shotgun approach”
The importance of target customers in this process can be seen in

Exhibit 2-2, where the target customer –the “C” – is at the center of the
diagram. The customer is surrounded by the controllable variables that
we call the “marketing mix”. A typical marketing mix includes some
product, offered at a price, with some promotion to tell potential
customers about the product, and a way to reach the customer’s place.
Marketing is a social and managerial process by which individuals

and groups obtain what they need and want through creating, offering
and exchanging products of value to others.
Marketing Mix deals with the way in which a business uses price,
product, distribution and promotion to market and sell its product.
The marketing mix is often referred to as the “Four P’s” - since the
most important elements of marketing are concerned with:
Mr. CATHY
 Product
 Price
 Place
 Promotion
Product - the product (or service) that the customer obtains.
Price - how much the customer pays for the product.
Place – how the product is distributed to the customer.
Promotion - how the customer is found and persuaded to buy the

product.
It is known as a “mix” because each ingredient affects the other

and the mix must overall be suitable to the target customer.
The marketing mix is the way in which the marketing strategy is

put into action - in other words, the actions arising from the marketing
plan.
What is marketing strategy planning?
Marketing strategy planning means finding attractive opportunities

and developing profitable marketing strategies. But what is a
“marketing strategy” ? We have used these words rather casually so far.
Now let’s see what they really mean.
Marketing strategy is a method of focusing an organization's energies

and resources on a course of action which can lead to increased sales
and dominance of a targeted market niche. A marketing strategy
combines product development, promotion, distribution, pricing,
relationship management and other elements; identifies the firm's
marketing goals, and explains how they will be achieved, ideally within a
stated timeframe. Marketing strategy determines the choice of target
market segments, positioning, marketing mix, and allocation of
resources. It is most effective when it is an integral component of
overall firm strategy, defining how the organization will successfully
engage customers, prospects, and competitors in the market
arena. Corporate strategies, corporate missions, and corporate goals. As
the customer constitutes the source of a company's revenue, marketing
strategy is closely linked with sales. A key component of marketing
strategy is often to keep marketing in line with a company's
overarching mission statement[4].
Basic theory:
1. Target Audience
2. Proposition/Key Element
3. Implementation
Types of strategies
Marketing strategies may differ depending on the unique situation of the
individual business. However there are a number of ways of categorizing
some generic strategies. A brief description of the most common
categorizing schemes is presented below:
 Strategies based on market dominance - In this scheme, firms are

classified based on their market share or dominance of an industry.
Typically there are four types of market dominance strategies:
 Leader
 Challenger
 Follower
 Nicher
 Porter generic strategies - strategy on the dimensions of strategic
scope and strategic strength. Strategic scope refers to the market
penetration while strategic strength refers to the firm’s sustainable
competitive advantage. The generic strategy framework (porter
1984) comprises two alternatives each with two alternative scopes.
These are Differentiation and low-cost leadership each with a
dimension of Focus-broad or narrow.
 Product differentiation (broad)
 Cost leadership (broad)
 Market segmentation (narrow)
 Innovation strategies - This deals with the firm's rate of the new
product development and business model innovation. It asks whether
the company is on the cutting edge of technology and business
innovation. There are three types:
 Pioneers
 Close followers
 Late followers
Growth strategies - In this scheme we ask the question, “How should

the firm grow?”. There are a number of different ways of answering
that question, but the most common gives four answers:
 Horizontal integration
 Vertical integration
 Diversification
 Intensification
A more detailed scheme uses the categories[6]:
 Prospector
 Analyzer
 Defender
 Reactor
 Marketing warfare strategies - This scheme draws parallels
between marketing strategies and military strategies.
Formulating a Market Strategy
BY REX STEWART
#006 AUGUST - SEPTEMBER - 1986
In the previous article, we talked primarily about tools to determine your

market niche and ways to utilize these tools in gathering information to
determine your store's market position. With this information gathered,
what do we do with it? On the board level, it should be utilized to
formulate a strategic plan or to review an already existing plan. More
importantly, on the staff level, the information gathered is the basis for
an operational marketing strategy.
A marketing strategy should be used as a working paper that guides the

store's operations for the next 1-2 years. The format of a marketing
strategy has three sections:
1.basic assumptions -- based on survey results and past planning

processes;
2. strategic goals -- goals for growth and fiscal health of the co-op;
3. achieving goals -- operational ideas for changes that will alter the
perception of the storefront by the public to conform to the
strategic goals.
(An advertising strategy, to be discussed in our next column, is a result
of the marketing strategy and needs to be treated as a separate
document. A market strategy creates the product to be advertised; the
advertising strategy defines the markets to be advertised in and the
media vehicles to be used.)
As mentioned earlier, it is important that corporate goals are

established through a strategic planning process before an operational
marketing strategy can be written. These corporate goals, along with
gathered data, will form the basis of the strategy formulation. The first
step is to analyze the corporate goals, asking three primary questions:
1) How do overall corporate goals relate to marketing? 2) Are the goals
achievable through store operation? 3) Are the resources available --
both capital and personnel -- to achieve these goals?
If these questions are sufficiently answered, you are ready to formulate

your strategy. From surveys and competition research (discussed in the
previous article), you have the basis for the analysis.
Analysis of market:
-->Is the market growing?

-->How large is present market (dollars and people)?
-->What determines the size of the market?
-->What services that relate to our business are currently being offered
in the market?
-->What services do customers desire?
-->How is market segmented; what is our appropriate and perceived
niche?
-->Is demand for product growing? consistent? declining? fluctuating?
-->Market shares of competitors: what are they and why do they have
them?
These answered questions, and additional questions specific to your

market, will give you a broad overview of the current market conditions.
Analysis of customer:
-->What is your customer base?

-->What are the perceived needs and wants of the customer?
-->What are the reasons they buy from your store or a competitor?
-->What % of their food dollar is spent at your store?
-->What is the demographic and psychographic profile of your average
customer?
-->What customers/trade area can be sufficiently serviced?
-->What services do they desire that you can sufficiently supply?
Supplier analysis:
-->Are they price competitive?

-->Do they provide the desired product lines of your customer base?
-->How do your suppliers compare with competitors (price, product,
wholesale services)?
-->Are they promotion and marketing oriented?
Competitor analysis:
-->Who are your primary and secondary competitors?

-->What are their strengths and weaknesses?
-->What are their strategies?
-->What is their share of the market?
-->What is their ability to service the market?
-->How do their resources compare to yours (size, management, buying
power, supplier services, etc.)?
-->What is the demographic/psychographic profile of their average
customer?
-->Advantages and disadvantages competition has over your store.
Cost analysis:
-->Cost of strategy (promotion, equipment, increased inventory,

advertising, etc.).
-->Effect on corporate profit -- does return on investment warrant
strategy implementation?
-->What are fixed and variable costs associated with implementation?
In completing this analysis, you have identified the key outside forces
and formed the basic assumptions that make your business what it is
today. Your next step is to use the analysis to set your strategic goals to
change or strengthen your market perception and niche.
The third step in completing the market strategy is achieving goals. This
is the nuts and bolts of the strategy -- operational ideas that will alter
the perception of the storefront by the public to conform to strategic
goals.
The development of the operational strategy starts from the ground up,
utilizing the people who have the most familiarity with the areas they
work in; this is where some of the best, most productive ideas come
from. A form needs to be developed to solicit comments from
appropriate staff members, with a determined timeline. This form should
spell out exactly what the task at hand is and the areas where ideas are
needed. This accomplishes two things: it allows all staff to participate in
the strategy development, and it allows a myriad of ideas and
suggestions to flow to the strategy coordinator for consideration.
The operational portion of the strategy starts with the stated purpose
and goals. Then, each area of operations is looked at, with stated goals
and objectives for each one. The areas commonly looked at in a retail
co-op are:
• product line development

• pricing
• sales (increasing sales per customer)
• services
• merchandising/ordering
• equipment, layout
• promotion (in-house)
• equity
• miscellaneous (policy effects, budgeting, operational plans, etc.).
Under these categories, the goals and objectives for operational change
are laid out.
This completes the formulation of the market strategy. The detailed

data-gathering analysis and goal-setting will allow you to create an
operational section of the strategy that addresses your store's long-term
needs and goals. It will give everyone in the organization a sense of
vision and working for a common goal. And it will give the manager the
ability to focus on long-term projects that integrate with other
departmental goals and object
DEVELOPING MARKETING MIXER FOR TARGET MARKETS
There are many marketing mix decisions:
There are many possible ways to satisfy the needs of target

customers. A product might have many different features. Customer
service levels before or after the sale can be changed. Various
advertising media- newspapers, magazines, cable, the Internet – may be
used. A company’s own sales force or other sales specialists can be
used. The price can be changed; discounts can be given, and so on.
With so many possible variables, is there any way to help organize all
these decisions and simplify the selection of marketing mixes.
Customer is not part of the marketing mix:
The customer is shown surrounded by the four Ps in Exhibit 2-4

Some students assume that the customer is part of the marketing mix-
but this is not so. The customer should be the target of all marketing
efforts. The customer is placed in the center of the diagram to show
this. The C stands for some specific customers- the target market.
A marketing program blends all of the firm’s marketing plans into one
“big” plan. See Exhibit 2.8. This program, then, is the responsibility of
the whole company. Typically, the whole marketing program is an
integrated part of the whole- company strategic plan we discussed
earlier.
We will emphasize planning one marketing strategy at a time, rather

than planning- or implementing- a whole marketing program. This is
practical because it is important to plan each strategy carefully. Too
many marketing managers fall into sloppy thinking. They try to develop
too many strategies all at once—and don’t develop any very carefully.
However, when new strategies are evaluated, it makes sense to see how
well they fit with the existing marketing program. And, we’ll talk about
merging plans in to marketing program Marketing strategy planning
may be very important to you soon—maybe in your present job or
college activities. In appendix C on marketing careers, we present some
strategy planning ideas for getting a marketing job.
THE IMPORTANCE OF MARKEING STRATEGY PLANNING
We emphasize the planning part of the marketing manager’s job for a

good reason. The “onetime” strategy decisions – the decisions that
decide that company is in and the strategies it will follow – usually
determine success, or failure. An extremely good plan might be carried
out badly and still be profitable, while a poor but well- implemented plan
can lose money. The case history that follows shows the importance of
planning and why we emphasize marketing strategy planning
throughout this text.
MARKETING STRATEGY PLANNING PROCESS HIGHLIGHTS

OPPORTUNITIES
We’ve emphasized that a marketing strategy requires decision

about the specific customers the firm will target and the marketing mix
the firm will develop to appeal to that market. We can organize the
many marketing mix decision in terms of the four Ps –Product, Place,
Promotion and Price. Thus the “final” strategy decisions are represented
by the target market surrounded by the four Ps. However, the idea isn’t
just to come up with some strategy. After all, there are hundreds or
even thousands of combinations of marketing mix decisions and target
markets that a firm might try. Rather, the challenge is to zero in on the
best strategy.
Narrow down to a superior marketing mix
A Marketing mix must meet the needs of target customers, but a

firm isn’t likely to get a competitive advantage if it just meets needs in
the same way as some other firm. So in evaluating possible strategies
the marketing manager should think about whether there is a way to
differentiate the marketingmix . Differentiation means that the
marketing mix is distinct from and better than what is available from a
competitor.
Screening criteria make it clear why you select a strategy
There are usually more different opportunities –and strategy

possibilities – than a firm can pursue. Each one has its own advantages
and disadvantages. Trends in the external market environment many
make a potential opportunity more or less attractive. These
complications can make it difficult to zero in on the best target market
and marketing mix.
THE SERVICE MARKETING MIX:
The marketing concept is equally applicable to organization in the

service sector and to manufactures of physical goods. Understanding
and identifying the needs and wants of the market under lies successful
marketing for services organizations and other types. Service has
special characteristics, which can affect marketing activities.
INTANGIBLE:
Services are intangible. Unlike physical products, they cannot be

moved, taste, felt, heard, or smelled before they brought.
INSEPARABLE: Service are typically produced and consumed

simultaneously. This is not true for physical goods, which are
manufactured, put into inventory, distributed through the multiple
resellers, and consumed later.
HETEROGENEOUS:
Service are highly variable, some doctors have excellent bedside

manners, there are less patients. Some surgeons are very successful in
performing certain operations, other are less successful. Service buyers
are aware of this variability and have to talk to others before selecting a
service provider.
PURISHABLE:
Service cannot be stored, some doctors charge patients for missed

appointments, because the services glue existed only at the point. the
perish ability of services is not a problem when demand steady, when
demand fluctuates, service firms have problems. to relate marketing
mix concept to services marketing is another way to begin. the
challenge of service marketing is to think creatively about marketing
mix through. And expending marketing is for services.
TRADITIONAL MARKETING MIX:
One of the most basic concepts in marketing is marketing mix

defined as the element or communicates with customers. The traditional
marketing mix composed of 4p”s i.e., product, place, promotion and
price.
These elements appear as core decision variable in any marketing

text of marketing plan the notion of mix implies that all of the variable
are interrelated and depended on each other to some extent. Further
the marketing mix philosophy implies that there is an optional mix of
four factors for given market segment at a given point of time.
KEY strategy decision areas for each of the 4p are requiring some
modifications when applied to services. For example traditionally
promotion is through of as involving decisions related to sales
promotion, and publicity.
In services, these factors are also important, but because services are
produced and consumes simultaneous, service delivery people(such as
clerks, ticker-takers, nurses, phone personnel, service engineers) are
involved in “real time“ promotion of the services even if their jobs are
typically defines in terms of the operational functions they perform..
Pricing also becomes very complex in services where “units costs

needed to calculate prices may be difficult to determines, and where the
customers frequently uses prices as a cue to quality.
EXPANDED MARKETING MIX FOR SERVICES:
Because services are usually produced and consumed simultaneously,

customers are often present in the firm’s personnel, and are actually
part of the service production process.
Also, because services are intangible customers will often be looking for
any intangible customers will often be looking for any tangible cue to
help them understand the nature of the service experience. These facts
have led to services to conclude that they can use additional variables
to commun8icate with and satisfy their customers. For example in the
hotel industry the design and décor of the hotel as well as the
appearance and attitudes of its employees will influence customer’s
perceptions and experiences.
Acknowledgement of the important of these additional variables has led

services marketers to adopt the concept of an expanded marketing mix
for the service shown in the three remaining columns in table given
above. In additional to the traditional 4’ps., the service marketing mix
includes people, physical evidence and process.
PEOPLE: All human who pay a part in service delivery and thus
influence the buyer’s perceptions, namely, the firm’s personal, the
customer in the delivery of a service itself.
How these people are dressed, their personal appearance, and their
attitudes and behavior, all influence the customer perceptions of the
service provider or centaur person can be very important. in fact, for
some services, such as consulting, counseling, teaching, and other
professional relationship based service, the provider is the service.
In other cases the contact person may play what appears to be a

relatively small part in service delivery dispatch. Yet research suggests
that even these providers may be the vocal point of the service
encounters that can prove critical for the organization.
PHYSICAL EVIDENCE: The environment in the service is delivered and

when and where the firm and customer interact, of any tangible
components that facilitate performance or communication of the
service.
The physical evidence of the service includes all of tangible

representations of the service such as brochures, letterheads, business
cards, report formats, signage, and equipments in some cases it
includes the physical facility where the service is offered, for example,
the retail ban branch facility may be irrelevant.
In other cases, such as telecommunications services, the physical

facility may be irrelevant. In this case, other tangibles such as billing
statements and appearance of the repair truck may be important
indicators of quality.
Especially when consumers have little on which to judge the actual

quality of service they will rely on these cues, just as they rely on the
cues provided by the people and the services process.
Physical evidence cues, provides excellent opportunities for the firm to

send consistent and strong messages regarding the organizations
purpose, the intended market segments, and the nature of the service.
PROCESS: The actual procedures, mechanisms, are maintained by flow
of activities by which the service delivery and operating system. the
actual delivery steps the customer experiences, or the operational flow
of the services, will also provide customers with evidence in which to
judge the services. Some services are very complex, requiring the
customer to follow a complicated and extensive series of actions to
complete the process.
Highly bureaucratized services frequently follow this pattern, and the

logic of the steps involved often escapes the customer. Another
distinguishing characteristic of the process that can provide evidence to
the customer is whether the service follows a production
line/standardized approach of whether the process is
empowered/customized one. None of these characteristics are another
form of evidence used by the consumer to judge service.
The three new marketing mix elements (people, physical evidence, and
process) are included in the marketing mix as separate elements
because they are within the control of the firms and any or all of them
may influence the customer’s initial decision to purchase a service, as
well as the customer’s level of satisfaction and repurchase decision.
STRATEGY FORMULATION
Goals indicate what a business unit wants to achieve; Strategy is a

game plan for getting there. Every business must design a strategy for
achieving its goals, consisting of a marketing strategy, and a compatible
technology strategy and sourcing strategy.
PORTER’S GEMEROC STRATEGIES

Michael porter has proposed three generic strategies that provide a
good starting point for strategic thinking; overall cost leadership,
differentiation, and foucs.40
• Overall cost leadership: the business works hard to achieve the

lowest production and distribution costs so that it can price lower
than its competitors and win a large market share. Firms pursuing
this strategy must good at engineering, purchasing,
manufacturing, and physical distribution. They need less skill in
marketing. The problem with this strategy is that other firms will
usually compete with still lower costs and hurt the firm that rested
its whole future on cost.
• Differentiation: The business concentrates on achieving superior
performance in an important customer benefit area valued by a
large part of the market. The firm cultivates those strengths that
will contribute to the intended differentiation. Thus the firm
seeking quality leadership, for example, must make products with
the best components, put them together expertly, inspect them
carefully, and effectively communicate their quality.
• Focus: the business focuses on one or more narrow market
segments. The firm gets to know these segments intimately and
pursues either cost leadership or differentiation within the target
segment.
The online air travel industry provides a good example of these three
strategies. Travelocity is pursuing a differentiation strategy by
offering the most comprehensive range of services to the traveler.
Lowest fare is pursuing a lowest- cost Strategy; and Last Minute is
pursuing a niche strategy in focusing on travelers who have the
flexibility to travel on very short notice.
According to Porter, firms pursuing the same strategy directed to the

same target market constitute a strategic group. This firm that
carries out that strategy best will make the most profits. Firms that do
not pursue a clear strategy and try to be good on all strategic
dimensions do the worst. International Harvester went out of the farm
equipment business because it did not stand out in its industry as
lowest in cost, highest in perceived value, or best in serving some
market segment; Porter drew a distinction between operational
effectiveness and strategy.
MARTKETING STRATEGY OF PORTER’S
 Target market: Teenagers and youth (15-25 years ) in the

Rs.10,000 and above monthly household-income families who are
trendy, ambitious and health conscious.
 Positioning: Tangy, energy drink form the Himalayas for bright
youth, and which is beneficial for body and mind.
 Product: Leafy material, packed in modern carton packs of 25
grams, 50 grams and 100 grams. The 25 grams packets, will be
trial packs, Which will be discontinued in the fourth year of
operation. The product has to be brewed like tea in boiling water,
preferably consumed without adding milk, sugar can be added for
taste
 Pricing: Available in Rs.49 for 25 grams, Rs.95 for 50 grams and
Rs.180 for 100 grams packs.
 Distribution: In select up market retail chains, health and beauty
stores, and up market kirana stores.
 Marketing communications: Focus on crating brand awareness
and a distinctive image based on the twin benefits of energy and
concentration with emphasis on exclusivity; high-profile product-
launch strategy involving toppers of competitive examination from
the target group with focus on publicity and media coverage.
Marketing research: Initial tracking studies to measure
differentiation, preference, market penetration, and repeat purchase
rate; to monitor the profile of the customers.
SERVICES MARKET SEGMENTATION:

Market segmentation has along been considered as one of the
most essential marketing concepts available to managers concerned
with marketing products. However, within the services sector marketing
the concept is, in general, underutilized, with much organization
adopting an unsophisticated approach taken is often to wait and see
which clients or customers come forward to buy a service to it. The
approach taken is often to wait and see which clients or customers
come forward to buy a service, or to offer a range of service without
focusing on the specific needs of needs of identified segments.
Broadly, a service company has the following three alternatives to

target market selection.
• An undifferentiated marketing approach where is no

recognition of distinct segments in the market. This is
sometimes termed market aggregation.
• A differentiated marketing approach where a company

identifies, for example, five segments in market, and develops
separate marketing mix programs aimed at each segment.
• A concentrated marketing approach where. Although there is

are cognition that are a number of discreet segment, the
company focuses its marketing mix primarily at one specific
segment.
Market segmentation is especially important for services in the current

competitive market place. Service industries are suffering from
increasing competition both in the number of competitors and in the
proliferation of service offerings. Market segmentation helps prevent the
waste of valuable resources by directing into those areas that will help
achieve success.
Service products are frequently not clearly differentiated. Market

segmentation offers the opportunity of gaining competitive advantage,
in a highly contested market, through differentiation. The market
segmentation approach involves identification of the benefits which
different homogeneous groups seek, allowing relevant features and
requirements to be determined and used as a source of service
differentiation.
Once the market augment has been selected, the process of target
marketing involves developing a positioning for the target segments
selected and then developing a marketing mix for each target market.
THE MEANING AND SIGNIFICANCE OF MARKETING
STRATEGY
Marketing strategy is the complete and unbeatable plan designed
specially for attaining the marketing objectives of the firm. The
marketing objectives indicates what firm wants to achieve, the
marketing strategy provides the design for achieving them.
It is the marketing strategy that decides the success of the

business unit level, which in turn decides the total corporate success.
the linkage between marketing strategy, it is only logical that marketing
strategy over all direction due from the marketing objectives of firm
FORMULATING THE MARKETING STRATEGY:

Marketing strategy is a well out lined plan. And there are definite
ways of formulating it. Basically formulation of marketing strategy
consists of two main steps:
 SELECTING THE TARGET MARKETING.
 ASSEMBLING THE MARKETING MIX.
This essence of the marketing strategy of any form can be grasped

from the firm’s target market and its mix. The target market show to
which the firm intends to sell the products, the marketing mix shows
how the firm intends to sell. Together they constitute the marketing
strategy platform of the firm.
SELECTING THE TARGET MARKETING:
To say target market is selection is a part of marketing strategy

developed is under statement. When the selection of the target market
is over, and important part of the marketing strategy of the firm is
already determined, defined and expressed.
ASSEMBLING THE MARKETING MIX:
The assembling the marketing mix means assembling, the 4p’s in the
right combination. Involved in this process are the choice of the
appropriate marketing activities and the allocation of the appropriate
marketing effort to each on of them.
MARKETING STRATEGIES FALL UNDER TWO GENERAL

CATEGORIES:
Major of business battle are infect fought with a differentiation base

strategy.
THE PRICE BASED MARKETING STRATEGY:
The business unit that opts for the price rout in its competitive
battle will enjoy certain flexibilities in the matter of pricing of its
products and use price as the main competitive demands. It will be
enjoying certain inherent cost advantages, which permit it, tore sort to a
price based fight.
THE DIFFERENT BASED MARKETING STRATEGY:
The marketing strategy based on different works in the principle

that any aspect of the offer and any activity of the firm can be made
distinctive compared with the competing offers. From the simple of
commodities to the most sophisticated of products and services, the
scope foe differentiation is tremendous.
MARKETING STRATEGIES FOR SERVICE FIRMS:
Until recently service firms lagged behind manufacturing firms in

their use of marketing. Many service businesses are small and do not
use formal management or marketing techniques. There are also
professional service businesses like law and accounting
Firms that formally believed it was unprofessional service to use

marketing. Other services business like school, hospitals faced so much
demand or so little competition until recently that saw no need for
marketing but this has changed.
SERVICE MAY BE DEFINED AS FOLLOW:
A service is any act or performance that one party can offer to

another that is essentially intangible and does not result in the
ownership of anything its production may not be ties to a physical
product.
Traditional 4p’s marketing approaches work well for goods but

additional elements require attention in service business. Booms and
Bitner suggested three additional 4p’s for service marketing PEOPLE,
PHYSICAL EVIDENCE, PROCESS because most services are provided by
people selection, training and motivation of employees can make a
huge difference in customer satisfaction. Ideally, employees should
exhibit competence, attitude, responsiveness, initiative, problem solving
ability, and goodwill.
Companies also try to demonstrate their service quality through
physical evidence and presentation the customer also does a physical
environment consisting of a building, interior, equipment, and furniture.
In view of this complexity, Gonroos has argued that service marketing
requites not only external marketing but also internal and interactive
marketing EXTERNAL MARKETING describes the normal work to
prepare, price, distribute and promote the service to customers. Internal
marketing describes the work to retain and motivate employees to
service to customers well.
MANAGING SERVICE QUALITY:
A service firm may win by delivering consistently higher-quality

device than competition and exceeding customer expressions. these
expectations are formed by their past experiences, word of mouth and
advertising. after receiving the service, customers lose interest in the
provider. If the perceived service meet of exceeds their expectations,
they are apt to use the provider again.
SERVICE QUALITY GAP MODE:
Parasuraman, zeithaml and beery formulated a service-quality model

that highlights the main requirements for delivering high service quality.
1. Gap between consumer expectation and management

perception:
Management does not always perceive correctly what customers want.

Hospital administrators may think that patients want better food, but
patients may more concern with nurse responsive.
2. Gap between management perception and service-quality
specification:
Management might correctly perceive the customers wants but not set
a specified performance standard. Hospital administrators may tell the
nurses to give “fast” service without specifying it quantitatively.
3. gap between service-quality specifications and service

delivery:
the personnel might be poorly trained, or incapable or unwilling to meet

the standard. or they may be held to conflicting standards, such as
taking time to listen to customers and serving them fast.
4. Gap between service delivery and external

communications:
Consumer expectations are affected by statements made by company

representative and ads. If a hospital brochure shows a beautiful room,
but the patient arrives and finds the room to be cheap and tack looking,
external communications have distorted the customer’s expectations.
5. Gap between perceived service and expected service:

This gap occurs when the consumer misperceives the service quality.
The physician may keep visiting the patient to show care, but the
patient may interpret this an indication that something rally is wrong.
“The same researchers found five determents of service quality.

These are presented in order of importance.”
RELIABILITY: The ability to perform the promised service dependably

and accurately.
RESPONSIVENESS: The willingness to help customers and to provide

prompt service.
ASSURANCE: The Knowledge And Courtesy Of Employees And Their

Ability To Convey Trust And Confidence.
EMPATHY: The provision of caring, individualized attention to

customers.
TANGIBLES: The appearance of physical facilities, equipment,

personnel, and communication materials.
MAJOR TRENDS IN CUSTOMER SERVICE:
Lele has noted following major trends in the customer service area.
1. Equipment manufactures are building more reliable and more

easily fixable equipment. One reason is the shift from
electromechanical equipment to electronic equipment, which has
fewer breakdowns and is more repairable. Companies are adding
modularity and disposability to facilitate self-servicing.
2. Customers are becoming more sophisticated about buying product

support services and are pressing for “services unbundling”. They
want sea rate prices for each service element and the right to select
the elements they want.
3. Customers increasingly dislike having to deal with a multitude of

service providers handling different types of equipment. Some third-
party service organization now services a greater range of
equipment.
4. Service contracts ( also called extended warranties), in which

sellers agree to provide free maintenance and repair services for a
specified period of time at a specified contract price, may diminish in
importance. Some new car warranties now cover 1,00,000 miles
before servicing. The increase in disposable or ever-fail equipment
makes customers less inclined to pay from 2 percent to 10 percent of
the purchase price every for a service.
5. Customer service choice increasing rapidly, and his is holding down

prices and profits on service. Equipment manufactures increasingly
have to figure out now to make money on their equipment
independent of service contracts.
4.2 MARKETING STRATEGIES OF DCI
The dredging is a new concept which came into recognition in 80s.

The dredging is a new area which is found as a remedy of substitute for
a lot of age old problems.
The clients of dredging i.e., dredging are scattered all around and
belongs to different fields. Dredging corporation of India is attending
almost all the clients through proper planning and co-ordination.
YEAR WISE DREDGING ACTIVITIES
A) During the year 1991-92.
 Dredging and reclamation for link read project NH-47A Cochin.

 Desolation of oil catch pit at Bhilai steel plant, Bhilai.
 Chartering of dredger-ID-II with ancillary equipment including
manning, managing and operation of dredger for dredger for
dredging at sand bar mouth of Ennore thermal power station
(ETPS) at Chennai.
B) During the year 1992-93
 Reclamation for cochin for link road project.
 Dredging for cochin navy with inland dredge-1.
C) During the year 1993-94
 Dredging and filling of southern end of WILLINGTON ISLAND AT

COCHIN.
 Dredging for Cochin navy w2ith inland dredger-1.
D) During the year 1994-95, 96-97, 97-98
 Chartering ID-IV for Ennore thermal power station.

 Dredging of sand bar channels and along side the wharf of old
Mangalore port.
 Dredging for Indian navy at cochin
E) during the year 1998-99,1999-2000,01-02,02-03,03-04,04-

05,05-06
 Dredging of low loft pump house of HPCL at Visakhapatnam.

 Capital dredging of Mirkarwada fishing harbor at Ratnagiri.
 Dredging of Cochin navy.
 Dredging at NTPC, Kayamkulam
 Dredging at Pondichery port.
 Dredging of Bunder basin at Kandla.
 Dredging of Ganga river for IWAI.
“Thus the Indian dredging market share of DCI is very large.”
PRODCEDURE OF CONTRACT UNDERTAKEING:
Generally the procedure of contract undertaking is made through

enquires. The enquires are sometimes from the DCI’s side and
sometimes it is from the client’s side.
a) Enquires from DCI’s side: Naturally in this type DCI will inform
the potential client about the usefulness of inland dredging and
DCI’s activities in this area and how it will be useful to the client.
b) Enquires from the client’s side: In other cases the client’s will
send a requisition about their needs of dredging and DCI’s
feasibility to take up that work. After studying the project
feasibility, DCI will enter into an agreement.
In both the cases, DCI’s price quotations follow the same procedure.
But before signing a project, DCI will conduct survey to see whether
the project is feasible to take up, then only contract will be signed,
otherwise it rejects the assignments.
PRICING POLICIES OF DCI:
The quotation of dredging project of DCI consists of a lot of a

factors. It is not a fixed or a standard rate. It takes numerous factors
into consideration while quoting a price for project undertaking.
The factors are:
a) Site conditions
b) Nature of material (sand, silt, clay).
c) Disposal distance
d) Elevation
e) Siltation during dredging
f) Idle periods
g) Availability of equipment.
“The price quotations depend largely on above said factors.”

PRICE STRUCTURE:
In dredging DCI first estimates the time which the project has to be
completed, before going for the estimation of the project.
1. Depreciation of equipment proposed.

2. Insurance.
3. Repairs and maintenance.
4. Spares and stores.
5. Fuel and lubricants.
6. Dredger manning.
7. Project establishments and manning.
8. Service contracts (jeep, car, boat, cranes etc.).
9. Telex, telephone, stationery.
10. Communication system.
11. Project office accommodation.
12. Electricity.
The expected life of the equipment is generally 14 years.

Depreciation is calculated on straight line method.
After calculating the expenditure of all the above said items, DCI will
include a 15% profit and then quotes the price.
“This is the procedure how DCI will from its price structure.”
CONSTRAINTS OF DREDGING:
The dredging is not a smooth way without; having ups and downs
in its way. It faces a lot of problems in its proceedings.
SUCH PROBLEMS FACED BY DCI ARE:
 Minimum infrastructure facilities like repairs, Spares,

 Bunkers, etc.
 Marine workshops
 Transportation
In dredging the clients are scattered all over the country some are
in remote places and some other are in underdeveloped areas. In some
cases, minimum infrastructure facilities like spares, repairs, bunkers are
not available at working site timely and quickly. This obstructs the
proceedings.
In some cases marine workshops are not available near the project.
They have to be arranged by head office or near by towns for repairs.
This delays the project duration and increase cost per unit. In some
cases it is not possible for the client to provide even crane assistance
and transportation of equipment has to be take care by DCI, it self.
DCI’S FLEET:
DCI owns most modern and sophisticated computer controlled fleet

consisting of two cutter suction dredgers, ten trailer dredger and three
inland dredgers. It has an annual installed capacity of 80,000 million cu.
mtrs.
DCI KEEPING PACE WITH MODERNISATION:
To remain major player in dredging DCI constantly up grade its

technology to international standard. Sophisticated electronic
equipment is used during dredging operations so that quality work could
be produced. DCI”s motto is quality service to the customers at cost
effective prices.
DCI is one of the MOU-signing PSU since 1992-93 and has consistently
achieved excellent rating so far.
DCI is one among the 31 companies in which the government has

disinvested its share holding. The shares of the company are listed on
DELHI, MUMBAI, & KOLKATA STOCK EXCHANGES.
DCI has given lot of thrust to instrumentation, specially on board

dredging. Training and maintenance is emphasized as also prompt
delivery. To provide a comprehensive range of service, DCI has over the
years built up a fund of expertise and art fleet of dredgers and related
equipment. The use of electronics in scanning the channel bed,
measuring the depths and widths particularly being focused on.To keep
face with the demand of the future, DCI plans to procure as well as
expand its service in India and abroad.
CONTRIBUTION TO THE SOCIETY:

Besides its own business of carrying out dredging activity for
national development DCI is contributing for the welfare of the society
also. during the year under review donations to the turn of rupees 14.76
lakhs been extended to various organizations which include hospitals,
education, institutions and welfare operations.
INDUSRIAL RELATIONS:
The human force in the organization is basically comprised up two

categories viz., floating establishment and shore establishment.
The shore establishment covers all the personnel working at various

project office situated all over India and head office at Visakhapatnam.
The floating employees include all the personnel working on board and
other floating crafts.
The total man power in the organization is 934 as on March 2008.

Dredging corporation of India believes in the theory that a motivated
and trained work force is highly essential for any successful defining
customer target and the best way to satisfy their needs and wants
competitively and wants competitively and profitability.
Marketing has its origin and in the fact that human are creatures of
needs and wants. Needs and wants create a state of discomfort, which
is resolved through acquiring products can satisfy a given need, product
choice is guided by the concept or value, cost and satisfaction. These
products are obtainable in several ways: self-production, coercion,
begging and exchange.
Most modern societies work on the principal of exchange which, means
that people specialize in producing particular products and trade them
for other things they need. they engage in transaction and relationship
building. a market is a group of people who share a similar need.
Marketing encompasses those activities involved in working with
markets, that is in trying to actualize potential exchanges.
SCOPE OF DREDGING:
From the origin of dredging as an idea, the conception is changing

from time to time. People in various fields are identifying the importance
of dredging to their requirements. Thus dredging has diversified into
various fields such as irrigation canals, drainage network, flood control,
industry rivers, reservoirs, tourism development, environmental
protection, water ways etc,. The requirement various from field to field
and client to client.
IRRGATION AND DRAINAGE NETWORK:
Agriculture, a large source of employment kin our country went

through a capped change the use of water for agriculture. Many
hectares of barren land was cultivated.
This leads to the construction and maintenance of irrigation canals

and drainage networks. but due to deforestation and erosion of soil
causes deposition of eroded soil in the river beds, reservoirs, irrigation
canals are silted up. The water reaches fields but water cannot be
absorbed into the soil as the ground water level is high, thus the water
should not stay in the fields after the time period, the way out of water
from fields is given by drainage network. But flow of water from the
fields brings huge masses of eroded soil into the drainage. The
salutation in the drainage network reduces its capacity and there is peril
at the sea approach drainage. As they are highly silted u, water cannot
from drainage into sea. Instead water flows back due to tides of sea and
this causing an artificial inundation damaging crop. To control this, the
remedy is to dredge the silted up blocks in drainage networks and at the
sea approaches.
FLOOD CONTROL:
Interested population in turn increased the need of land foe

agriculture and habitant.Acquisition of extra land brought only through
deforestation. The erosi0on of soil due to deforestation is causing
siltation in rivers. The siltation in rivers causing shallow depths
obstructing free flow of water and also resulting loss of area in rivers.
The lost area is gained by meandering and widening of rivers. This
makes the rivers though little is gained.
So, a moderate to heavy rainfall can be absorbed by the soil and all the
rainfall has to taken off from through drainages. Otherwise its flow into
rivers causes floods, as the rivers cannot sustain the present flow itself
and decreased capacity of rivers causes floods. The dredging of the river
beds and desiltation of shallow depths and nourishment of bank is the
best solution to the flood control. In the many measures of flood control,
ID, of drivers, drainage network, reservoirs and irrigation canal networks
is recognized as most important one
INDUSTRY:
Industries generally require huge quantities of water for vari9ous

purposes. They store water in reservoirs with huge capacity, from the
sea channels. Generally the channels are silted up due to tides of sea.
To remove this siltation and industrial waste like ash, the only remedy is
dredging. Now many industries like power plants, steel plants,
petroleum refineries, fertilizers are using the services of dredging.
In fishing harbors, the depths in approach channels have to be

maintained to provide adequate facilities for fishing vessels. This can be
achieved through dredging.
MAINTENANCE OF LAKES:
One of the main attractions of tourism are lakes like Dal lake in
Kadhmir, Ooty lake in Ooty, Hussain Sagar lake in Hyderabad etc. but
these lakes are silted up due to the deposition of mass of eroded soil of
neighboring areas, dumping of waste and also due to the unauthorized
drainage connections into them. Thus not only one factor, but a lot of
factors are obstructing the free flow of water and thus makes silt
deposited in lakes, thus siltation in lakes spoils ecology. The boating a
main attraction at these lakes gets spoiled. The panacea for all these
problem is I.D. Dredging of lakes will restore the same old attraction of
these lakes.
INLAND WATER WAYS:
By 2000 AD it is estimated that India will be earning Rs. 10,823

crores from exports while Rs. 15,370 crores will be spent on import of oil
production. Thus 74% of our earning will be utilized for energy. Can
India afford such a position. Water transport is energy efficient and cost
effective.
Cost per tone is lowest for inland water ways. These facts and
figures speak volumes in favour of inland water transport. Compared
other modes of transport systems, IWT creates minimum pollution and
other environmental hazards.
National transport policy committee in May, 1980 indentified ten

waterways to be declared as national waterways. Consequently the
Ganga-Bhaagirathi-Hoogly coast canal has been declared on national
water No.111.
To achieve these economics, through inland water transport, river

should have minimum depth for the free flow of vessels. This canals,
reservoirs, inland transport, environmental protection, power generation
etc. has made DCI to run its attention towards dredging.
DCI ACTIVITIES:
As a part of diversification DCI has entered the field of inland
dredging. The growing demand for dredging in various fields such as
rivers, canals, reservoirs, inland transport, environmental protection.
Power generation etc. has made DCI to run its attention towards inland
dredging.
CHAPTER-5
SUMMARY AND SUGGESTIONS
SUMMARY
Dredging operations appears to the very mundane and monotonous

affair, remaining the slit or any obstructive material from under water
and depositing it at a distance. Yet there is a tremendous magic in
dredging.
Dredging is the immediate measure for maintenance of edequate
depths of water for safe navigation at ports, navy, shipyards, etc..
While most of the people connect the magic of dredging with trade and
transport, there are many other equally or more important areas such
as flood controls, flood production, power generation, fresh water etc..
The summary page of Dredging Corporation Of India Ltd. captures the

details on its Live Prices, Key Fundamentals, Futures and Options
Quotes, Competitors, Comparative Analysis, Shareholding Pattern,
Financials, and community prediction.
As it is highly capital intensive, private parties could not enter the field
of ocean dredging, but in the area of inland dredging the growing
demand and low investment attracted the private parties and already a
few are in the market.
SUGGESTOINS:
In any area of business TO increase profit there are only two ways.
Reducing cost of production.
Increase the demand.

So in this areas of business that is dredging also there are two ways to
improvements its market operation or strategies.
 Increasing the demand
 Reducing cost of operations and unnecessarily wastes
So increasing the demand can be done in dredging through

popularization the concept by giving lot of publicity to the concept of
inland dredging
a) The concept of dredging and its benefits can be popularized

through paper statements
b) Seminars have to be conducted regularly between potential clients

and D.C.I has to informs them about its activates.
c) D.C.I has to be segment its clients property and advice then about
their dredging requirements and how D.C.I can handle them
d) D.C.I has to maintain good relations with clients and inform them
about the latest developments.
e) D.C.I can distribute its industries and other clients and can make
them remaining the concept dredging time to time.
CHAPTER-6
FINDINGS AND CONCLUSION
FINDINGS:
As D.C.I is a public sector cooperation it has many limitations, even if

D.C.I capacity utilization is 101% its competitors are left over, some
part of market share which is eventually servers.
Dredging operations appears to be mundane and monotonous

affair removing sand , slit, or any obstructive material from under
water and depositing it at a distance. yet there is a tremendous
magic in dredging.
Dredging is the immediate measure for maintenance of adequate

depths for safe navigations at ports ,navy, shipyard etc.
While most of the people connect the magic of dredging with trade and
transport there are many other equally or more important areas
,such as major ports ,shipyards, navy, water, transport, land
reclamations etc, where is dredging techniques can be applied to
procedure beneficial results for the ordinary human being.
Dredging is a capital-intensive industry. Under utilization of the capital

employed , affects the developmental growth of the country.
overutilization of the capital intensive assets will lead to early
exhaustion of the resources of the country. So in order to determine
optimum dredging resources, it is necessary to forecast the dredging
demand required to be met in terms of material to be removed
depths of channels , situations process dumping ,distance,
maneuverability etc. since dredging operations are carried under water
which are influenced by different variable parameters ,assessments of
dredging demand is quite difficult.
To meet the demand for dredging services ,all around the country, the
government of India decided to incorporate a fully owned government
organization under companies act of 1956.accordingly DCI has been
incorporate in the year 1976..
DCI stated its activities in meeting dredging demand. As time went on,
the importance of dredging has increased. to meet the growing demand
of dredging.DCI has diversified its activates where there is a lot of
scope and market Some of the common adverse environmental effects
are:
1. Effects associated with operations at dredging site:

1. Stationary dredgers any interfere with navigation and with
fishing unless advance programming and co-ordination avoids it.
2. Stationary installations such as under water cables, pipelines

and sewer out falls may be disturbed. Objectionable noise
especially at night may be discomfort.
3. Turbidity may be created at the dredging site.
4. Beach erosion may be disadvantageous to trawl fishing.
5. D.C.I stands 6th the world in the dredging industry, but many
international co-operations are nearly entering India for which
D.C.I has to reach international standards and try to achieve
next best position
6. Existing fleet is not sufficient to meet the present demand The

dredging is not a smooth way without having up’s and down’s in
its ways.. it faces a lot of problems in its proceedings.
Conclusion:
As dredging corporation of India limited is government organization, it
has a social responsibility. In national interest it has to popularize the
concept of dredging in the areas of ports, harbors, navy, shipyards,
marine organization etc…
Mainly there are two types of dredging namely sea dredging and inland
dredging. Out of which D.C.I ltd is mainly concentrating on sea dredging
The dredging market is yet in nascent stage the dredging market is to

be two stages expansion of dredging market is to be two stages
 One is be popularized D.C.I ltd, about its concept and activities
 The other is by creating potential demand for dredging
Campaign is to be done is some professional bodies like institute of

engineers if India, institute of architectects, public health
organization, tourism development bodies et…to popularized
functions and activities of DCI ltd.
At present DCI LTD is working in almost all the ports in India.

Earlier DCI LTD ruled the dredging market of India, but due to
recent introduction of new companies into Indian dredging
market,the market share of DCI LTD has come down.
CHAPTER-7
BIBILIOGRAPHY
BIBLIOGRAPHY:
AUTHOR NAME: A) PHILIP KOTLER

B) PETER DRUCKER
WEBSITES USED:
 WWW.GOOGLE.COM
 WWW.DREDGE- INDIA.COM
 WWW.DREDGER CORPORATION OF INDIA
LTD.COM

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DREDGING CORPORATION OF INDIA LIMITED

The quantity of soil moved per unit of time is called Production.

Hydraulic digging is Profit . W.J.Vlasblom Pagina 1 van 27 May

Mechanical digging by knives, teeth or cutting edges of dredging

Hydraulically Mechanically Continuously Transport via pipeline

water flows back to sea or river. Dredging equipment can have

1.2 NEED FOR THE STUDY

The study of dredging is an area where ther is lot of scope for

So dredging is the area where there is lot of scope of marketing

1.3 OBJECTIVES OF THE STUDY:

 To review and study the overall aspects of marketing of the

 To study the ocean dredging and inland dredging and their

 To study the marketing strategies of the dredging

 Analyze the marketing functions of dredging corporation of

 To study the other activities of dredging corporation of India

The study was conducted in the organization with a view to

As far as this topic is concerned different members of DCI had

the aid of the following papers was taken to acquiring information

1) Through company annual reports and brouchers

2) through periodical reports

3) through the annual requirements of inland water ways

 Data given is inadequate as the officials are compiled to the

 To analyse the clients of DCI by form of quettionarries is not

 To analyze the competitors their data is almost a secret

 Dci is a service-oriented organization so various

2.1 INTRODUCTION TO INDUSTRY

The Dredging Corporation of India Limited (D C I) was established

offer the complete range of dredging and allied services to the

D C I owns most modern and sophisticated fleet consisting of

D C I is a schedule B & a MINI RATNA- CATEGORY-I Public Sector

2.2 Industry Scenario:

The size of the Indian dredging industry is estimated to be

India (DCI) is a major player. Dredging companies also spread

2.3 GOVERNMENT POLICY

New policy ends monopoly of Dredging

Our Correspondent / Vishakhapatnam Feb 05, 2004,

2.6 MAJOR PLAYERS OF D.C.I

• CAPT.Shri. S.S.TRIPATHI - Chairman and Managing

 DREDGING CORPORATION OF INDIA TO OPEN OFFICE IN

 DREDGING CORPORATION OF INDIA RECIEVES BIDS FOR 1.5MNN

Type Public Sector Unit

Industry Dredging, Land

Headquart Visakhapatnam, India 2.6

Products Maintenance Dredging,

Employees 998 (2003)

Trailer Suction Hopper Dredgers

 DCI Dredge - VIII

 DCI Dredge - VII

backhoe / dipper Dredgers

 DCI Dredge BH1

09/11/2010 the DCI Dredge BH1 was launched at shipyard De Donge

 DCI is superstitious about the number 13. No dredgers are named

Maintenance DredgingEvery Port or Harbour designed with certain

DCI is having two Cutter Suction Dredgers to meet he capital

 Beach Nourishment The coastal line in the beach is subject to

DCI ‘s Dredge-XII and Dredge-XIV are capable of shore pumping up

 DCI’s Cutter suction Dredgers and Trailer Suction Hopper Dredgers

2.7 Types of Dredging

–Dredging in rivers, canals, lakes etc.

–Land reclamation and beach nourishment

• Dredgers developed for specific situations.

• Example:-Side casing dredgers

–Water injection dredgers

DCI DREDGE VII