Summer training reports s atya ppppppppppppppppppp

ON

OPPORTUNITIES:

A company which serves over 1 billion people per day in more than 200 countries with refreshing series of

more than 400 products has always have great opportunities to grab. Some of these opportunities are :

• Countries like India, company have great opportunities to serve over 1 billion people.

• In India company have more than 60 percent market share only with 11 products, So here big opportunity

to offer more than 400 brand products from its product basket.

THREATS:

A company which serves in more than 200 countries is always prone to threats. Some of these threats are :

• Government Policy.

• Market Competitors mainly PepsiCo.

• Dependent over distributor for distribution.

• Wrong weather forecasting for production.

• Cultural Restrictions.

3…..
OBJECTIVE OF STUDY

OBJECTIVE

MBA is a stepping stone in the management career. In order to achieve practical, positive and concrete

results, the classroom learning needs to be effectively feted to the realities of the situation existing outside

the classroom.

Every study is incomplete without having a well planned and concrete exposure to the student, Management

studies are not exceptional. Scope of the work at this level is very ranging.

So, my MBA institute provide us opportunity to work in external environment by Summer Internship

Program and the Management Thesis. So, I decided to prepare my thesis on Coca Cola India. This

Management Thesis will provide sound basis to adopt the theoretical knowledge and on the other hand it will

give me the opportunity for exposure to the real market situation, it will give me the base practical

experience which will be helpful throughout my professional career.

My topic of this management thesis is “Comparative Study of Different Promotional Schemes Adopted by

Coca Cola India”.

The main objective of this thesis is to study the different promotional schemes adopted by Coca Cola India

in the past and in present and compare the merits and demerits of these schemes. In this thesis I will also

try to focus on the impact of these schemes both on the market and on the management of the Company.

In my initial study about the company I found that all the schemes are designed around the 3 P‟s which are

PLANET, PEOPLE and PORTFOLIO.

LIMITATION

LIMITTIONS

Following are the limitation for Coca Cola Company and trainees too are:

The report is time barred .

Volatility in the Sparkling soft drink market just because of seasonal effect.

Bad perception in the mind of general public due to recent pesticides controversy.

Competitor providing better schemes to increase its market share.

Weak distribution network, particularly in some part of India.

Company has offer very few products in India from its impressive product profile of more than 400 products

across the globe.

Some products are expensive as compared to its close competitors.

The Company relies on numerous groups to work together to make our brands available to consumers

throughout the world.

Questionnaire data was not filled properly by the retailers & even some of them refused to fill the same.

4………………..
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Factual material or Data unknown or untapped so far can be obtain from many sources direct or indirect. It

is necessary to involve a systematic procedure to collect es¬sential data. Relevant data, adequate in

quantity & qual¬ity sufficient reliable and valid should be collected. For this purpose one may use various

devices. For each and every type of research certain tools are used to gather new facts or to explore new

field are needed. The selection for suitable for collecting various kinds of information is the main purpose.

The researcher may use ore or move of the tools in combination. He should familiarize himself with the

nature, merits & limitation of these tools. I am also attempt to learn how to constructed and use them

effectively. There are various tool of data collection. Before making major, decision about tool of data

collection.

1. Observation:

The observation method is the most commonly used method especially in studies relating to behavioral

sciences. In a way we all observe things around us but this sort of observation in not scientific observation.

Observation becomes a scientific tool and the method of data collection for the researches, when it serves a

formulated research purpose, in systematically planned and recorded. Under the observation method, the

information in sought by way of investigator's own direct observation without asking from respondent. The

main advantage of this method in that subjective bias eliminated, if observation in done accurately.

Secondly the information obtained under this method relates to what event is happening it is not

complicated by either the past behavior or intention or attitudes.Thirdly this method is independ¬ent of

respondents willing to respond and as such is rela¬tively less-demanding of active cooperation on the part

of respondents as happen to be the case in the interview or the questionnaire method. However observation

method has various limitations.

Firstly it is an expensive method. Secondly, the informal ion provide by this method in very limited.

Sometimes we talk of controlled and uncon-trolled observation if observation takes place in the natural

setting, it may be termed as uncontrolled obser¬vation, but when observation takes places according to

definite, pre-arranged plans, involving experimental pro¬cedure, the same is then termed controlled

observation.

2. Interview Method:-

The interview method of collecting data involves presentation of oral-verbal stimuli and reply in term of oral-

verbal responds. This method can be used through personal interviews and if possible through telephone

in¬terview. A. Personal interviews:

Personal interview method requires a person known as the interviewer asking questions generally in a face

to face contract to the other person(§). This sort of interview may be in the form of direct personal

investi¬gation or it may be an indirect oral investigation. In the case of direct personal investigation the

interviewer has to be collect.

Information personally from the sources con¬cerned. He has to be on the spot and has to meet people from

whom data has to be collected. This method is par¬ticularly suitable for intensive investigation. The method

of collecting information through personal interview is usually carried out in a structured wav. As such we all

the Interviews as structured inter-views. Such interviews involve set of predetermines questions and of

highly standardized tech¬niques of recording.

Thus the interviewer in a structured interview follows a rigid procedure had clown, asking questions in a

form and order prescribed. As against it the unstructured interviews are characterized by a flex¬ibility of

approach to questioning.

Unstructured interviews do not follow a system of predetermined question and standardized techniques of

recording information. In a non structured interview, the interviewer is allowed much greater freedom to ask

in case of need the supplementary questions or at times he may omit certain questions if the situation so

requires. Unstructured interviews also demand deep knowledge and greater skill on the part of the

interviewer.

With a variation in interview-techniques, the major advantages and weakness of personal interview can be

enumerated in general way. The chief merits of the interview method are as follows:-

(I) More information and that too in greater depth can be obtained.

(ii) Interviewer by his own skill can overcome the re¬sistance, if any if the respondents, interview method

can be made to yield an almost perked sample of the general population.

(iii) There is greater flexibility under this method as the opportunity to restructure questions is always there,

especially in case of constructors interviews.

(iv) Personal information can as well be obtained easily under this method.

But there are also certain weaknesses of the interview method.

1. It is a very expensive method especially when large and widely spread geographical sample is taken.

2. There remains the possibility. Of the bias of inter¬viewer as well as that of respondent, there also

remains the head chief of supervision and control of interviews.

3. This method in relatively more-time-consuming, especially when the sample in large and recalls upon the

respondents are necessary. .

4. Under the interview method the interviews required for selecting and supervising the field-staff is more

complex with problems.

B.Telephone interviews:-

This method of collecting information consists in contacting respondents on telephone itself. It is not a very

widely used method, but plays important part in industries surveys, particularly in devolved regions. It is

more flexible in comparison to mailing method because in this method, direct contract between respond and

interviewer.

3. Questionnaires:-

This method of data collection is quite popular, particularly in case of big enquiries. It is being adopted by

private individuals, research workers, private and public organizations and even by Governments. In this

method a questionnaire is sent (usually by post) to the persons con-cerned with a request to answer the

questions and return the questionnaire.

A questionnaire consists of a number of questions printed or typed in a definite order on a form or set of

forms. A questionnaire is mailed to respondents who are expected to read and understand the questions and

write down the reply in a space meant for the pur¬pose in the questionnaire itself. The respondents have to

answer the question on their own.

The method of collecting data by mailing the questionnaires to respondents in most expensively em¬ployed

in various economic and business surveys.

Merit

1. There is low cost even when the universe is large and widely spread geographically.

2. It is free from the bias of the interviewer. Answers are in respondents own words.

3. Respondents who are not easily approachable can also be reached conveniently.

4. Large samples can made use of and there the results can be made more dependable and reliable.

Demerits:-

1. Low rate of return of the duly filled in questionnaires biased due to the no response is often

indeterminate.

2. It can be used only when respondents are educated and coopering.

3. The control over questionnaires may be lost once it is sent.

4. There is also the possibility of ambiguous replies or omission of replies altogether to certain question

inter¬pretation of omission is difficult.

Main aspect of questionnaire

Quite often questionnaire is considered as the heart of a survey operation. Hence it should be very carefully

constructed. If it is not properly set up, then the sur¬vey is bound to fail. This fact requires us to study the

main aspect of questionnaires.

1. General Form:-

So for as the general for of a questionnaire is concerned, it can either be structured or unstructured

questionnaire. Structured questionnaires are those questionnaires in which there are definite concrete and

Teditemine questions. When those characteristics are not resent in a questionnaire, it can be termed as

unstruc-ared on non structured questionnaires.

2. Question Sequence:-

In order to make the questionnaire effective and to ensure quality to the replies received, a researcher

should pay attention to the question sequence in pre-par-g the questionnaire.

3. Question formulation and wording:-

With required to this aspect of questionnaire, the researcher should note that each question must be very

clear for any sort of misunderstanding can do harm to a survey. Question should also be impartial in order

not to give are biased picture of true state of affairs.

4. Schedules:-

Data collection through schedules is very much like the collection of data through questionnaire. The lit¬tle

difference which lies in the fact that schedules (Performa containing a set of questions) are being filled in by

the enumerators who are specially appointed for this purpose. These enumerators along with schedules go

to respondents, put to them the questions from the Performa in the order the questions are listed and

record the re¬plies in the for the same in the Performa. Enumerators explain the aim and objects of the

investiga¬tion and also remove the difficult which any respondent may feel.

After going through the Company profile, the first step to start my thesis is the collection of data from

different sources like consumers, distributors and the company management through the personal

interviews and questionnaires. The second step will be the comparison of the collected data and to represent

it through the following standards:

ANOVA: Analysis of variance is a collection of statistical models, and their associated procedures, in which

the observed variance is partitioned into components due to different explanatory variables.

T- TEST: T-test is any statistical hypothesis test in which the test statistic has a Student's t distribution if the

null hypothesis is true. It is applied when sample sizes are small enough that using an assumption of

normality and the associated z-test leads to incorrect inference.

BAR CHART: A bar chart, also known as a bar graph, is a chart with rectangular bars of lengths proportional

to that value that they represent. Bar charts are used for comparing two or more values. The bars can be

horizontally or vertically oriented. Sometimes a stretched graphic is used instead of a solid bar.

PIE CHART: A pie chart (or a circle graph) is a circular chart divided into sectors, illustrating relative

magnitudes or frequencies or percents. In a pie chart, the arc length of each sector (and consequently its

central angle and area), is proportional to the quantity it represents. Together, the sectors create a full disk.

It is named for its resemblance to a pie which has been sliced.

DATA ANALYSIS

ANALYSIS

The soft drink market of India are by and large controlled and governed by the soft drink giant company,

COCA-COLA and PEPSI. Except these two, there is a very weak and limited participation is felt by the

CADBURY SCHWEEP.

The only presence of the two giant company doesn‟t mean absence of competition rather a neck to neck

competition, a dual of strategy and counter strategy is all time present to capture a greater market share.

For extracting the total strength, two companies have a wide variety of soft drink.

Different flavour and different packs are available from both the companies. Let us take a glimpse of the

different flavour available for both the company.

Flavour Coca-cola Pepsi

Cola Thums-Up, Coke Pepsi

Clear Lemon Sprite Mountain Dew, 7-Up

Cloudy Lemon Limca Lemon Mirinda

Orange Fanta Mirinda

Fruit Juice Maaza Slice

Soda Kinley Everess

Water Kinley Aquafina

By the survey of retailers out lets, we have got the relative demand of each different flavour both the

companies

Flavour Coca-cola Pepsi

Cola Thums-Up, 35

Coke 25 Pepsi 40

Orange Fanta 60 Mirinda 40

Cloucly Lemon Limca 80 Lemon Mirinda 20

Clear Lemon Sprite 45 Mountain Dew 35

7‟ UP 20

Fruit Juice Maaza 80 Slice 20

Soda Kinley 45 Evress 55

Water Kinley 40 Aquafina 60

TOTAL 410 290

DEMAND OF COLA FLAVOUR IN

RURAL AREA

For cola flavour coca-cola has two product‟s coke and Thums-UP and Pepsi percentage in shown below.

Flavour Company Product Demand in %

Cola Coca-Cola Thums-UP 35

Coke 25

Pepsi Pepsi 40

It is represented by the following pie chart.

DEMAND OF ORANGE FLAVOUR IN

RURAL AREA

For orange flavour coca-cola has the product name is Fanta and Pepsi has the product range is Mirinda.


Orange Coca-Cola Fanta 60

Pepsi Mirinda 40


DEMAND OF CLOUDY LEMON FLAVOUR IN RURAL AREA

Coca-cola has the most popular product limca in cloudy lemon flavour and Pepsi has Lemon Mirinda.

The relative demand is shown in the following table.


Cloudy Lemon Coca-Cola Limca 80

Pepsi Lemon Mirinda 20


DEMAND OF CLEAR LEMON FLAVOUR

RURAL AREA

IN clear lemon coca cola has sprite, pepsi has two products . products in this are 7-up and Mountain Dew.



Clear Lemon Coca-Cola Sprite 45

Pepsi Mountain Dew 35

7‟-Up 20


DEMAND OF FRUIT JUICE IN RURAL AREA

In fruit juice Coca-Cola product is Maaza and Pepsi product is Slice. The demand of percentage is shown

below :-



Fruit _Juice Coca-Cola Maaza 80

Pepsi Slice 20


DEMAND OF SODA IN RURAL AREA

Coca-Cola has the product Kinley in Soda and Pepsi has Evress. The demand of % is shown below :-


Soda Coca-Cola Kinley 45

Pepsi Evress 55


DEMAND OF WATER IN RURAL AREA

And the final and lost product from Coca-Cola is water KINLEY and the PEPSI is Aquafina . the demand of

percentage is shown below :-


Water Coca-Cola KINLEY 40

Pepsi AQUAFINA 60


DEMAND OF COCA-COLA AND PEPSI IN

RURAL AREA

OVER ALL MARKET DEMAND OF COCA-COLA AND PEPSI

Over all demand of Coca-Cola and Pepsi in Shahadra area is 58% coca-cola and 42% of PEPSI.

DEMAND OF COCA-COLA AND PEPSI IN VARIOUS CUSTOMER GROUP IN RURAL AREA

On the basis of survey and with the help of questionnaire. The demand of coca-cola and pepsi in various

customer group is presented in the following table:-

Customer Company Demand of %

MALE COCA-COLA 65

PEPSI 35

FEMALE COCA-COLA 55

PEPSI 45

CHILDREN COCA-COLA 70

PEPSI 30

DEMAND OF FEMALE CUSTOMER GROUP N RURAL AREA

The demand of Female customer group is represented by the following chart:-

DEMAND OF VARIOUS PACKS OF COCA-COLA IN RURAL AREA

PACK DEMAND IN %

200 ML 40%

250/300ML 30%

500 ML 12%

1 Litre 3%

1.5 Litre 5%

2 Litre 10%

DEMAND OF CHIILDREN CUSTOMER GROUPIN THE RURAL AREA

THE DEMAND OF CHILDREN CUSTOMER GROUP IN RURAL AREA IS REPRESENTED BY THE FOLLOWING PIE

CHART:

FINDINGS

FINDINGS

With the predetermined objective for finding the customer demand and retailers respondent for Coca-Cola

product is AGRA CITY area. A detail survey of the retailer and proper analysis of the available data has been

done.

Coca-Cola is having a greater customer demand for its product. Bur PEPSI is no longer for behind. They are

also coming up with their full strength and has started to capture the market with & customasssers.

The total marked of Shashadra can be grouped in to main areas, Nand Nagri, Dilshad garden, Bhajanpura,

Gokulpuri, Jyoti Nagar, Maan sarovar park, , Mojpur, Karaval Nagar, Bhajanpura, Sleempur, Sewa Dham

Road. All there are quite vast and possess a fish customer demand. Numbers of outlets there from kirok

toretorement. Denbite of bisg demand and loge number of our lets, company provider only and distributors

SUGGESTION AND CONCLUSIOON

SUGGESTION

Sometimes the delivery vans of Coca-Cola starts late from the distribution point and that of rivals reach

early .so eateries, which generally serve soft drinks in the glass, buy the soft drinks from the delivery van

which arrives first.

Salesman at the delivery van to be inconsistent on certain meters likes the concept of broken bottles. When

dealing with the shop and the eatery owners some salesman do exchange bottles while some do not?

Finally, Following are the findings and suggestions after analyzing all data:

Promotional scheme played important role in the sale of carbonated drinks.

Availability is also the important factor in the sale of cold drink after taste.

RTM and Red are the most successful policy of the company.

Free bottles per crate offer will be more successful if it is club with the RED scoring instead of Sales

Executive decision.

Consumer are most interested in Bumper prize policy of promotion.

CONCLUSION

From the analysis of the data, it can be concluded that the market share of Coca-Cola is more than the

market share of Pepsi. The demand of Coca-Cola‟s product is more with the comparison of Pepsi product.

Supply of various flavours is not adequate. Flavour likes Limca and Maaza have a high customer demand,

but their supply is irregular. Competitors are taking advantage of this

Replacement procedure of faulty bottles is very low. It promotes retairs dissatisfaction.

It can be noticed that the company has spent a lot on its advertising and sales promotion, its sales are

better. The only thing that is lacking to some extent is service. So by enhancing the quality of service and

also by modifying some of the routes of distribution, the company can gain more turnover from the market

what the company just doing is just concentrating on increasing the sales without bothering the relationship

with the retailers. So, instead of relying on volume of sales, the company should try to build a long-lasting

relationship with the retailers.

ANNEXURE

Questionnaire

QUESTIONNAIRE FOR RURAL CONSUMER

Name :

Age : Gender :

Address :

City :

Q.1 Do you take carbonated drinks?

a) Yes b) No

Q.2 On what criteria do you select the drink of your choice? Rank the following in order of your preference.

a) Taste ( ) b) Brand ( )

c) Availability ( ) c) Advertisement ( )

Q.3 Do promotional schemes affect the choice of your drink?

a) Yes b) No

Q. 4 Which one of the following policies affects your selection of drink?

a) Discount Policy b) Promotional Policy

Q. 5 Four different companies launch different promotional schemes on their respective drinks. Rank

these schemes in order of your preference that will change your buying decision.

a) Money back offer on the bottle cap. ( )

b) Prizes on the bottle cap. ( )

c) Prices on the specific number of bottle caps. ( )

d) Bumper prize. ( )

QUESTIONNAIRE FOR RURAL DEALER

Outlet Name: Dealer Name:

Address :

Q1. Which marketing strategy or scheme dramatically affects the sale of Carbonated drinks?

a) Availability b) Proper Merchandizing

c) Good Advertising d) Low Price/Cost

Q2. Rank the following offers in order of your preference that attracts you the most to sell a particular brand

of carbonated drink?

a) Brand that offer discounts ( )

b) Brand that offer good promotional schemes ( )

c) Brand that offer stock on credit basis ( )

d) Brand that offer good marketing support ( )

Q3. What is the effect of RTM (Route to Market) scheme on the sale of Coca Cola products?

a) Increase b) Decrease

Q4. What is the effect of the implementation of RED (Right Execution Daily) scheme on the sale of Coca Cola

products?

a) Increase b) Decrease

Q5. What is the percent increase in the sale of Coca Cola products after the implementation of RED and RTM

schemes?

a) Not Increase b) Increase 1 - 25%

c) Increase 26 - 50% d) Increase 51 - 75%

e) Increase 76 - 100% f) Increase more than 100%

Q6. Coca Cola Company is offer free bottles per crate on the basis of following criteria. Rank the following in

order of your preference.

a) On the basis of sale per day. ( )

b) On the basis of prime location. ( )

c) On the basis of RED scoring. ( )

d) Decision made by the company‟s Sales executive. ( )

REFERENCES

Finally, Following are the references which are used to collect the data till date:

Agra Sales and Marketing.

www.cocacola.com.

www.cocacolaindia.com

Different dealers in Agra and Aligarh.

Consumers.

Competitors.

posted by muqeem khan at 8:19 pm 1 comments

friday, january 29, 2010

jaypee
SUMMER TRAINING REPORT

ON

REAL ESTATE TRENDS IN THE CURRENT MARKET

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

ROLL NO. - ………….

INDUSTRY GUIDE UNDER THE SUPERVISION O

ACKNOWLEDGEMENTS

It was a great opportunity for me to work with JP Group, one of the leading companies in Real Estate

business in India. I am extremely grateful to those who have shared their expertise and knowledge with me

and without whom the completion of this project would have been virtually impossible.

Firstly, I express my sincere gratitude and thank to…….., Manager, Marketing, JP Group Industries, …….,

New Delhi for whose kindness I have the precious opportunity of attaining training at JP Group. Under his

brilliant untiring guidance I could complete the project being undertaken on the “REAL ESTATE TRENDS IN

THE CURRENT MARKET” successfully on time. I would also like to thank the overwhelming support of all

those people who helped me a lot with their suggestions and ideas in the making of this project report.

I would also like to thank my faculties of ……..for their constant enthusiastic encouragement and valuable

suggestions, without which this project would not have been successfully completed.

I would also like to thank my parents and rest of my family members for being patient and very supportive

always especially during the project study.

PREFACE

This report is one of a series based on an analysis undertaken by contraction and infrastructure Group to

increase the body of knowledge in India about the significance of real-estate industry in facilitating economic

productivity and enhancing National competitiveness. The reports aim to increase the house community's

understanding.

A project team within construction India has undertaken this work - with the assistance, in some cases, of

contract expertise, and the cooperation of all provincial and territorial governments in the provision of house

and devolvement authority.

CONTENTS

Certificate

Acknowledgement

Preface

CHAPTER 1. INTRODUCTION

1.1 GENERAL INTRODUCTIONS ABOUT THE SECTOR.

1.2 INDUSTRY PROFILE.

CHAPTER 2. PROFILE OF THE ORGANIZATION

2.1 ORIGIN OF THE ORGANIZATION

2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION

2.3 PRESENT STATUS OF THE ORGANIZATION

2.4 PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION COMPETITORS

2.5 MARKET PROFILE OF THE ORGANIZATION

CHAPTER 3. DISCUSSION ON TRAININGS

3.1 OBJECTIVE OF THE STUDY

3.2 DESCRIPTIONS OF LIVE EXPERIENCES

CHAPTER 4. STUDY OF SELECTED RESEARCH PROBLEM

4.1 STATEMENT OF RESEARCH PROBLEM

4.2 RESEARCH DESIGN AND METHODOLODY

4.3 ANALYSES OF DATA

4.4 SUMMARIES OF FINDINGS

4.5 SUMMARY OF LEARNING‟S EXPERIENCE

CHAPTER 5. DATA INTERPRETATION

CHAPTER 6. CONCLUSION AND RECOMMENDATIONS

Bibliography

Annexure

CHAPTER 1

1.1: GENERAL INTRODUCTION

REAL ESTATE INDUSTRY

The Delhi Residential real estate market has maintained its buoyancy in 2004. The growing housing demand

of the burgeoning middle and upper middle class supported by the competitive low interest rates continues

to fuel the growth of the suburban residential market.

This growth is evident in the overall evolution of the residential developments in the suburbs highlighted by

the new highland mid end developments in Gurgaon and Noida, such as World Spa,Pinnacle, Belmonte,

Uniworld City, The Forest etc. All these projects boost of high specifications in terms of quality of

construction in comparison to the previous projects along with luxurious amenities and facilities. Also most

of these projects have witnessed recompilation bookings to the extent of 75 to 80% both by endusers and

investors.

The South Delhi residential market is mirroring a similar market sentiments the suburban region, the only

difference being in the profile of the buyer. The demand is mainly led by small time investor group looking

to place their funds in relatively liquid assets (as compared to other Real-Estate options) with a steady

return on investment.

This heightened demanding South Delhi from investors (which include Indian residents as well as NRI

investor) and end users has lead to a shortage of good quality stock in the prime areas. It is interesting to

note that in the last 6-8 months, the supply and demand dynamics in the market have reflected a complete

turnaround with demand outstripping the supply. This scenario has resulted into a

25-30% rise of capital values in colonies such as Vasant Vihar, Westend, PanscheelsPark, Defence Colony,

Golf Links etc.

Rising trend of foreign investment in integrated townships.

Foreign investment in the integrated township sector is displaying a rising trend after the Government of

India, in the first quarter of 2002, allowed up to 100% foreign direct investment (FDI) for the development

of integrated townships with a minimum area of 100 acres. Although the policies governing investment in

the sector are still largely restrictive in terms of pre-conditions for interested parties,

major developers, especially those from South East Asia, have been active in collaborating with local

partners to execute large integrated township projects in major cities across the country.

The first FDI project in the sector was a 100-acre residential township proposed for development in Delhi‟s

suburban business district of Gurgaon. Indian infrastructure and property consultancy firm Feedback

Ventures Ltd tied up with Malaysian developers Kontur Bintang and Westport for this project.

The total capital outlay is estimated to be USD 160 million.

Another Malaysian firm, IJM Berhad, is also involved in two major projects – a 2,200-unit apartment project

in the southern city of Hyderabad in a joint venture with the Andhra Pradesh Housing Board (APHB) and a

500-acre integrated township in SAS Nagar in Mohali, in North India, for which a memorandum of

understanding (MoU) has been signed with the Punjab Urban Development Authority (PUDA).

Two more prominent projects are underway in Bangalore and Chennai, involving Singapore-based

developers Keppel Land and Lee Kim Tah Holdings respectively. While Keppel Land‟s Bangalore

project is in association with private developer Purvankara Projects, Lee Kim Tah Holdings has signed a MoU

with the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) for the Chennai project.

These five major projects, committed within a span of two years since FDI was allowed in the sector, is

testimony to the fact that regional developers are optimistic about the Indian real estate market, particularly

the residential segment. However, a marginal relaxation in foreign investment pre-requisites is needed to

further align India‟s real estate market with its regional counterparts.

ECONOMIC OUTLOOK:

The Centre for Monitoring Indian Economy (CMIE) estimates that, India's gross domestic product (GDP) will

grow significantly by 2003-2004. From July 1, for high-value real estate transactions, Form 37(I) Income

Tax clearances are not required. Budget 2002 had provided for the repeal of this provision allowing the

government the pre-emptive right to purchase immovable property. This is a progressive step that

significantly reduces the three-month waiting period before large-value transactions could be registered. A

Rs 50 billion (US$1.02 billion) Urban Reforms Incentive Fund (URIF) has been proposed to motivate

agencies at every level to undertake infrastructure reforms. Extra funds have been announced to those

States pushing reforms, especially in the context of the Urban Land Ceiling Act. The soft interest rates

regime has lowered cost of funds to housing finance institutions, translating into a drop in interest rates.

This has triggered off a large take-up of finance by end users.

CURRENT SCENARIO:

Office markets showed signs of revival towards the end of Q1 2002, post September 11. Outsourcing drove

these to India of 'back office operations' of financial institutions and call centers. However, the market saw

some uncertainty as a result of tensions on the India-Pakistan border. The subsequent travel warnings

issued by some Western governments delayed decision-making. The market is now looking more buoyant,

with most corporate perceiving the travel advisories as an over-reaction.

In Delhi, rental and capital values continue to be soft and the principle business districts are seeing

movement of small corporate from secondary markets to the CBD, focused on A or B+ grade buildings. The

suburban markets of Gurgaon and Noida are driven by larger space requirements of IT-enabled service

(ITES) providers, primarily call centers. Major corporate offices are also relocating from the CBD to Gurgaon,

primarily driven by quality and size of space offered. Landlords are offering single flexible and divisible floor

plates of up to 25,000 sq ft.

There is a clear link between shifting corporate destinations and the boost this provides to housing. This is

evident in Gurgaon in Delhi where residential take-up has been in tandem with corporate influx. The middle

to upper middle class residential market is active across the country. This market is driven by:

Tax incentives offered by the government on housing loans.

Lack of other attractive investment options such as the stock market or personal savings schemes.

Improvement of transport linkages.

Good quality products offered at reasonable cost by developers to boost lack-lustre markets

The last quarter saw fresh leasing activity in Gurgaon with space commitments of approx. 150,000 sq. ft.

However, values are expected to continue to be under pressure as new supply of over 65,000 sq. ft. is

added.

In the next 8-12 months, demand for IT enabled services will be in excess of 1.2-1.4 million sq. ft.

Approximately 65% of this demand is likely to be split over 6 cities: Mumbai, Pune, Delhi, Bangalore,

Hyderabad and Chennai.

RESIDENTIAL VALUES:

Location Capital Values

Rs/ sq ft. Rental Values

Rs/sq. ft./ month

CENTRAL DELHI

Prime 10,200-18,500 100-150

SOUTH DELHI

Prime 14,500-15,500 140-150

Secondary 13,500-14,000 80-100

WEST DELHI

Prime (New Rajender Nagar) 12,300 50

Secondary 1,200-1,900 20-30

EAST DELHI

Prime 10,000-12,500 25-50

Secondary 1,200-1,500 15-20

GREATER NOIDA

Land 3,5000- 60,000 -

Apartments 11,200- 12,500 -

OFFICE MARKET

CURRENT SCENARIO:

Corporate take-up is driving Delhi's office market as well as call centers and other IT-enabled users.

Tenants are generally seeking fully fitted office space. In the CBD, such space is often vacated by corporate

who have relocated to the suburbs. Sometimes landlords fit out space to attract good tenants. Takers of

smaller office space such as Infar, Tellabs and Frederic R Harris in the CBD have opted for fully fitted

facilities, vacated by previous tenants. In Gurgaon and Noida too, there has been take-up of fully fitted

accommodation.

Most landlords offer air conditioning and power back up, supported by professional real estate property

management. In the CBD, landlords of properties such as Ashoka Estate and Hindustan Times House have

improved these buildings, which have enabled them to upgrade tenant profile.

The industrial areas of Udyog Vihar, Okhla and Mohan Co-operative too are seeing take-up by IT-enabled

services. In the suburbs, developers have land and schemes, which are being marketed to corporate with

large build-to-suit requirements. Noida and Gurgaon offer buildings with such larger floor plates which cater

to large space users.

At present, Noida has better road infrastructure than Gurgaon. However, a six-lane flyover project on the

National Highway 8 is scheduled to start soon in Gurgaon. This will improve the road connectivity to

Gurgaon from Delhi.

Both Noida and Gurgaon have emerged as prime residential locations, which produce an English-speaking

workforce capable of servicing call centres, and IT enabled services companies. There are

approx 40 call centres operational in Gurgaon and Noida. Call centres typically employ upwards of 100

people at a per-person-per-sq ft ratio of 70. Call center space take-up is therefore typically in excess of

7,000 sq ft upto approx 200,000 sq ft. Large players such as GE Capital, EXL Services, Spectramind and

Daksh have head counts upwards of 2,500 operating out of multiple locations.

OFFICE VALUES:


Rs/ sq ft. Rental Values

Rs/ sq ft./ month

PRIME

Connaught Place A Grade** 17,000-19,000 100-150

Connaught Place B Grade** 15,000-16,500 70-100

SECONDARY

Bhikaji Cama Place# 13,000-14,000 50-60

Nehru Place# 13,000-14,000 30-50

Okhla Industrial Estate* 7,000-9,000 50-70

Okhla Industrial Area* 5,000-6,500 30-35

Mohan Cooperative*^ N.A. 25-60

SUBURBAN

Gurgaon A Grade 6,000-7,000 45-50

Gurgaon B Grade* 5,200-6,000 25-30

Noida A Grade 8,000-10,000 60-80

Noida B Grade 5,500-6,000 20-25

Greater Noida 6,400- 7,000 -

RETAIL

CURRENT SCENARIO:

Rentals are improving due to paucity of space in traditional retail areas of Connaught Place, South

Extension, Greater Kailash I & II, Basant Lok, PVR complex and New Friends Colony.

Retailers are moving towards the affluent areas of Vikaspuri, Rajouri Garden, Pitampura and Vaishali in

Ghaziabad. Approx 2.2 million sq ft of retail space will become available in the Delhi region over the next

few years in approximately 15 malls, which are currently under construction.

Restaurants are major drivers of Delhi‟s retail sector, in areas such as Basant Lok, Vasant Vihar, South

Extension and Defence Colony.

RETAIL VALUES:


Rs/ sq. ft. Rental Values

Rs/ sq. ft./ month

Connaught Place

Inner Circle 8,000-9,000 120-150

Outer Circle - 70-100

South Extension 20,000-25,000 250-325

Basant Lok 12,000-15,000 110-120

PVR Saket 10,000-12,000 110-125

GK-I 20,000-25,000 250-350

GK-II 8,000-9,000 80-100

New Friends Colony 9,000-10,000 90-110

Noida 8,000-9,000 90-100

Gurgaon 5,000-6,000 50-60

Greater Noida 4,000- 6,000 -

RETAIL

DLF, MGF, Sahara and Ansals are each developing shopping malls in Gurgaon.

Regents Plaza is a shopping mall covering an area of 70,000 sq ft over four or five floors. It is going to be

exclusively hosting fashion designers like Giorgio Armani, Versace & Gucci.

RESIDENTIAL

Feedback Ventures is developing 100acre residential development in Gurgaon

DLF has launched Trinity Towers, a 4 BR condominium development in Phase V Gurgaon

ATS Infrastructure has launched Phase II of ATS Greens in Sector 50, NOIDA

Kamalka Lakelands is a 9-hole golf course real estate project in Gurgaon

GESCO has launched Central Park, a 2,3, 4 BR condominium development in Gurgaon

Ardee Infrastructure is constructing The Residency, 4-BR, serviced, and uni-bed, low-rise apartments near

South City, Gurgaon

COMPARATIVE:

PROMOTER

AREA PRICE

(basic) LOCATION

NRI CITY

PUTTING

GREENS 2104 Sq.ft

1900/-Per sq.ft

3 Bed room G.NOIDA

NRI CITY

PUTTING

GREENS 2362 Sq.ft 1900/-per sq.ft

4 Bed room G.NOIDA

NRI CITY

PUTTING

GREENS 4244 Sq.ft 2100/- per sq.ft

Penthouse G.NOIDA

PARSVNATH

PLATINUM 1500 Sq.ft G.NOIDA

ATS GREENS

VILLAGE 1300 Sq.ft

1500 Sq.ft

1750 Sq.ft

2800 Sq.ft 1700/-Sq.ft NOIDA

EXPRESSWAY

SEC-93A

STELLAR KINGS COURT 2003.5 Sq.ft

1702 Sq.ft

1507 Sq.ft 1650/- Sq.ft

WESTEND HEIGHTS

DLF 2700 Sq.ft

2500 Sq.ft 2000/- Sq.ft

2500/- Sq.ft GURGAON

ELDECO

GREEN MEADOWS SAVANNAH

1330 Sq.ft

GARDENIA

1510 Sq.ft

VERDANA

1610 Sq.ft

1595/- Sq.ft

1589/- Sq.ft

1660/- Sq.ft G. NOIDA

SEC Pi

PARSVNATH

GREEN VILLE 2000/- Sq.ft

Ground Floor

1950/- Sq.ft

1st and 2nd Floor GURGAON

ELDECO

RESIDENCY

GREENS TULIP

1665 Sq.ft

CARNATION

1455 Sq.ft

DAFFODIL

1200Sq.ft

1595/- Sq.ft

1566/- Sq.ft

1490/- Sq.ft G. NOIDA

SEC Pi

PROMOTER

AREA PRICE

(basic) LOCATION

SOUTHEND

FLOORS 925Sq.ft

1412 Sq.ft

1490 Sq.ft

1570 Sq.ft 1486/- Sq.ft

1338/- Sq.ft

1342/- Sq.ft

1433/- Sq.ft SEC 48-49,SOHNA

ROAD

GURGAON

UNITEC

THE CLOSE UNIVERSAL

2000,2480,3170 sq.ft

INTERNATIONAL

RS. 2350/- Per sq.ft

Rs.2500/- Per sq.ft GURGAON

1657,1990,2113 sq.ft Rs.2000/- sq.ft GREATER NOIDA

COMPANY PROFILE

Jaypee Group was founded by Mr. Jai Prakash Gaur in 1958 as a civil contracting firm. In 1979, they came

to be known as Jaiprakash Associates Private Ltd (JAPL). Jaypee Rewa Cement Plant (JRCL) with an initial

capacity of 1 million tonnes was established in 1980. This marked the beginning of Jaypee Group's

stronghold in the cements industry in India. Continuing the legacy was Jaypee Bela Cement Plant (JBCP) in

1996 with an initial capacity of 1.9 million tonnes.

The hospitality business of Jaypee Infratech is splendiferous with brand names in themselves. In 1980, JAPL

set up Hotel Siddharth and Hotel Vasant Continental in New Delhi, landmarks in their respective areas.

These were luxury epitomized and a centre places for all the key business conferences. Another crowning

glories are Jaypee Place Hotel Agra and Jaypee Residency Manor Mussoorie. Both Jaypee Palace and Jaypee

Residency Manor are iconic structures giving new definitions to hospitality business.

Jaypee Group's associate business areas extend to:

o Hydropower Projects operational in Bapsa- II and Karcham Wangtoo (H.P.) and Vishnu Prayag

(Uttaranchal).

o Other Hydropower and Irrigation Projects under execution in Dulhasti and Baglihar in J&K, Tehri in

Uttaranchal, Teesta - V in Sikkim, Tala in Bhutan, Sardar Sarover in Gujarat, Omkareshwar in M.P. and

Alimineti Madhva Reddy Project in Andhra Pradesh.

o Educational institutions at Samirpur and Solan in Himachal Pradesh, Noida and Anoopshahar in Uttar

Pradesh and Guna in M.P.

o 5 Star and 5 Star Deluxe Hotels in Mussoorie, Agra and Delhi.

o Golf Resort in Greater Noida, U.P.

o Taj expressway Project connecting Agra with Noida.

o Integrated Township in Greater Noida.

o Information Technology

The integrated township by Jaypee Group is Jaypee Greens. This is 450 acres of peace and tranquility of the

wilderness in Greater Noida. It includes two golf resorts, villas, penthouses, condominiums, studio

apartments, commercial complexes and shopping malls. Jaypee Infratech in an upcoming real estate and

construction company as far as new projects are concerned. It is already an established brand name in other

key business areas it covers. In residential and commercial properties developments, Jaypee is an emerging

name and will continue their rising story with the quality standards touching a new high.

CHAPTER 2

2.1 ORIGIN OF THE ORGANIZATION

The Jaypee Group is a well diversified infrastructural industrial conglomerate in India. Over the decades it

has maintained its salience with leadership in its chosen line of businesses - Engineering and Construction,

Cement, Private Hydropower, Hospitality, Real Estate Development, Expressways and Highways. The group

has been discharging its responsibilties to the satisfaction of all its shareholders and fellow Indians, summed

by its guiding philosophy of "Growth with a Human Face"

2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION

Transforming challenges into opportunities has been the hallmark of the Jaypee Group, ever since its

inception four decades ago. The group is a diversified infrastructure conglomerate and has a formidable

presence in Engineering & Construction along with interests in the power, cement and hospitality. The

infrastructure conglomerate has also expanded into real estate & expressways.

ENGINEERING & CONSTRUCTION

The Engineering and Construction wing of the group is an acknowledged leader in the construction of multi-

purpose river valley and hydropower projects. It has had the unique distinction of executing simultaneously

13 hydropower projects spread over 6 states and the neighboring country Bhutan for generating 10,290 MW

of power. The group has been assigned “CR1” grade by ICRA Ltd indicating very “Strong Contract Execution

Capacity with best prospects of timely completion of projects without cost overruns etc. for projects with

average value of Rs.2500 crores.” It is the only group in India, which pre-qualifies on its

own for the bidding of various projects that are awarded in the country.

A leader in engineering & construction of hydropower projects in India, the Company has the largest market

share in the Indian hydropower, E&C and EPC sector having participated in 54% of hydropower projects

developed in 10th 5-Year Plan in different capacities.

The company also has the distinction of executing three out of five hydropower projects contracted on an

EPC basis in the country till March 2007. Two of these, 300 MW Chamera - II and 520 MW Omkareshwar,

have been completed ahead of schedule.

The 900 MW Baglihar (Stage-I and II) hydroelectric project in Jammu & Kashmir, in the challenging

environment of the State with 22 million cubic meters of concrete, has been the largest EPC project

executed in the country in hydropower sector, so far.

The key non-EPC projects completed/under execution across India are -

• 1450 MW Sardar Sarovar Project, the largest water resource project in India,

• 1000 MW Tehri Dam, Asia's highest rockfill dam.,

• 1000 MW Indira Sagar Power House, second largest surface power house in the country.

•

•

• 1500 MW Nathpa Jhakri Power House, the largest underground surface power house in the country.

The in house Design and Consultancy company, Jaypee Ventures Pvt. Ltd. (JVPL), gives JAL a competitive

edge over its rivals. The design and engineering arm has been awarded “CT1” grade by ICRA with CIDC (The

Construction Industry Development Council). This is the highest rating assigned to consultants in the field of

engineering.

CEMENT

Jaypee group is the 3rd largest cement producer in the country. It produces Ordinary Portland Cement and

Pozzolana Portland Cement under the brand names “Buland” and “Buniyad”. Its Cement Division currently

operates modern, computerized process control cement plants with an aggregate capacity of 9.0 MTPA. The

company is in the midst of capacity expansion of its cement business in Northern, Southern, Central,

Eastern and Western parts of the country and is slated to be a 25 MTPA cement producer by the year 2010

and 30.5 MTPA by 2011 with Captive Thermal Power Plants totaling 308MW.

Post expansion the Group will have 8 integrated cement plants supported by 308 MW of Captive Thermal

Power, 8 split location plants, 11 railway sidings and one jetty giving the Group a pan India presence in

cement sector.

POWER

Jaypee Group, an integrated power player in the country after having established a strong presence in the

Hydro-Power Sector has initiated its entry into Thermal Power Generation, Power Transmission and

also forayed into Wind Power.

The group with its operational projects of 300 MW Baspa-II (Himachal Pradesh) and 400 MW Vishnuprayag

(Uttarakhand) is India‟s largest Private sector Hydro-power producer.

Besides this, 1000 MW Karcham Wangtoo project (Himachal Pradesh) is under advanced stage of

implementation. In addition to these, with 2900 MW projects (2400 MW Lower Siang & 500 MW Hirong )

coming up in Arunachal Pradesh and 720 MW (270 MW Umngot and 450 MW Kynshi Stage –

II) in Meghalaya , the Group will have total hydro-power generation capacity of over 5000 MW.

The Group is also in the process of implementing 2 x 660 MW pit head based Nigrie Thermal Power Plant in

District Singrauli of M.P. and is setting up through M/s Suzlon, 50 MW of Wind Power in two phases of 25

MW each in Maharashtra.

The Group is setting up Transmission System associated with 1000 MW Karcham Wangtoo Hydro Electric

Project. The Transmission Project will consist of a 230 km long transmission line between Wangtoo in

Himachal Pradesh and Abdullapur in Haryana.

HOSPITALITY

The Group owns and operates 4 Five Star Hotels, two in New Delhi and one each in Agra and Mussoorie with

a total capacity of 643 rooms. Another state-of-the-art resort and SPA of 250 rooms is being set up in

collaboration with SIX SENSES at Greater Noida.

REAL ESTATE AND EXPRESSWAYS

The Group is a pioneer in the development of India‟s first golf centric Real Estate. Jaypee Greens - a world

class fully integrated complex consists of an 18 hole Greg Norman Golf Course. Stretching over 450 acres, it

also includes residences, commercial spaces, corporate park, entertainment and nature in abundance.

The Group is constructing 165 km long 6 lane Yamuna Expressway project from Noida to Agra and

ribbon development on 6250 acres at five or more locations along the expressway for commercial,

industrial, institutional, residential and amusement purposes, will also be undertaken as an integral part of

the project. In addition to this, 1047 km long 8 lane Ganga Expressway from Greater Noida to Ballia

(Eastern Uttar Pradesh) will also be developed by the Group which will be the largest private sector

infrastructure project in India.

SOCIAL COMMITMENTS

The group has always believed in growth with a human face and to fulfill its obligations it has set up

Jaiprakash Sewa Sansthan (JSS), a „not-for- profit trust‟ which primarily serves the objectives of socio –

economic development, reducing the pain and distress in society and providing education at all levels of the

learning curve with sixteen schools, two ITI‟s and three universities.

For over 3 decades now Jaypee Group has supported the socio-economic development of the local

environment in which they operate and ensure that the economically and educationally challenged strata of

the work surroundings are also benefited from the group‟s growth by providing education, medical and other

facilities for local development.

Apart from this sustaining the ecological balance is of paramount importance. Our ecological management

approach has led to efficient and optimum utilization of available resources, minimization of waste. Our

group has also taken green initiatives, afforestation drives, resources conservation, water conservation, air

quality control & noise pollution control and created a “green oasis‟‟ amidst the limestone belt at our cement

complex in Rewa.

Because we know, the environment is the prime essence of healthy life and healthy living as what we do

today will be reaped by the next generation.

2.3 PRESENT STATUS OF THE ORGANIZATION

Jaiprakash Associates registers phenomenal growth in turnover for H1FY09

PAT for H1FY09 at Rs 330.39 crore, up 35.71%; EBIDTA at

Rs 803.51 crore, up 34.5%

PAT for Q2FY09 up by 96.03% to Rs 203.13 crore; EBIDTA

up 60.79% at Rs 451.85 crore

H1FY09 Results (all comparisons with H1FY08)

• Total Income at Rs 2474.75 crore, up by 28.44 % from Rs 1927 crore

• EBIDTA at Rs 803.51 crore, up by 34.5% from Rs 597 crore

• PAT at Rs 330.39 crore, up by 35.71 % from Rs 243.46 crore

• PBT at Rs 475.51 crore, up by 38.54% from Rs 343.24 crore

• EPS of Rs 2.82, up by 27.03 % from Rs 2.22 per share

• Operating profit margin increased to 34 % from 30.9 %

• PAT margin increased to 13 % from 12.6 %

Q2FY09 Results (all comparisons with Q2FY08)

• Total income at Rs 1286.63 crore, up by 39.52% from Rs 922 crore

• EBIDTA at Rs 451.85 crore, up by 60.79% from Rs 281 crore

• PAT at Rs 203.13 crore, up by 96.03 % from Rs 103.62 crore

• PBT at Rs 284.37 crore, up 88.66% from Rs 150.73 crore

• EPS of Rs 1.73, up by 82.1% from Rs 0.95 per share

• Operating profit margin increased to 38 % from 30.4 %

• PAT margin increased to 16 % from 11.27 %

Highlights

• First Interim dividend @ 15% per equity share (Re. 0.30 per equity share of Rs 2/-) for the year 2008-09

• JAL‟s wholly owned subsidiary – Jaypee cement Limited is in the process of setting up 3 MTPA plant in

district Krishna, Andhra Pradesh for which mining lease has been allotted

• Setting up a cement plant of 3MTPA at Amrapatan in district Satna

• Setting up a cement plant of 2MTPA in district Satna

• MOU with Govt. of Chhattisgarh for setting up cement plant of 1.5 MTPA & Captive power plant of 25 MW

in Chhattisgarh

• 3 MOUs with M P Trade & Investment Facilitation Corporation limited (TRIFAC), a Govt. of M.P.

undertaking

• Allotted 1,00,00,000 equity shares of Rs 2/- each for cash at a premium of Rs 395/- per share to JVPL,

against a equal number of share warrants issued to them at the rate of Rs 397/- per warrant

Segmental Division Results Highlights – H1 FY09

• Turnover from cement division (including cement products) at Rs 1060.79 crore

• Turnover from Engineering Division (including real estate & others) at Rs 1413.96 crore

Segmental Division Results Highlights – Q2 FY09

• Turnover from cement division (including cement products) at Rs 500.14 crore

• Turnover from Engineering Division (including real estate & others) at Rs 786.49 crore

New Delhi, October 21, 2008; Jaiprakash Associates Limited (JAL), the flagship of Jaypee Group is the

leading infrastructure conglomerate having business interest in cement and cement production, engineering

& construction, power, hospitality and real estate recorded remarkable performance with total income of Rs

2474.75 crore for the first half of FY 09; an increase of 28.44% as compared to Rs 1927 crore in the

corresponding previous period. EBITDA for H1FY09 improved to Rs 803.51 crore; an

increase of 34.50% as compared to Rs 597.40 crore in the corresponding previous period. Net profit for the

H1FY09 was at Rs 330.39 crore as against Rs 243.46 crore in H1FY08. The earnings per share (EPS) for

H1FY2009 stood at Rs 2.82 per share.

Higher input costs resulted in higher expenses for the first half year which increased to Rs 1671.24 crore

from Rs 1329.39 crore, an increase of 25.72% as compared to the same period in last fiscal.

JAL‟s all operating subsidiaries – Jaiprakash Hydropower Ltd., Jaiprakash Power Ventures Ltd., Jaypee Hotels

Ltd. with its robust performance has made JAL a unique organization, whereby bucking the general trend

total income for the Q2FY09 registered a growth of 39.52% and stood at Rs 1286.63 crore.

EBIDTA for Q2FY09 was at Rs 451.85 crore. Operating margins for Q2FY09 stood at 38%. The share of

revenue from cement division (including cement products) during the quarter constituted 38.87% of

the Revenue while engineering division (including real estate & others) during the quarter constituted

61.13% of the revenue.

Net profit at Rs 203.13 crore for the quarter ended September 30, 2008 registered a robust growth of

96.03% over the corresponding quarter of the previous year. Continued improvement in operational

efficiencies and cost control measures has enabled it to register an increase in the Operating Margins to 38

% from 30.4% in Q2FY08. Higher input costs resulted in higher expenses for the quarter which increased

from Rs 641.20 crore to Rs 834.78 crore, an increase of 30.19% as compared to the same period in last

fiscal.

Commenting on the Company‟s performance for H1 & Q2 FY2009, Mr. Manoj Gaur, Executive Chairman,

Jaiprakash Associates Ltd., said, “Strong fundamentals of the organization combined with

diversification in related businesses with each business on its own strength achieving remarkable growth has

helped JAL to achieve all round improved performance. In the current fiscal, the momentum in all the

business sectors be it cement, E&C and power remains strong and unaltered. As the organization has

achieved financial closure of each project/s in time and

despite anxious credit conditions, JAL projects are on right track and we are committed to post handsome

growth quarter after quarter”.

With each business on growth trajectory Jaypee Group in last twelve months has added over 4200 new

people in its work force and the human capital base of the group has now grown to 20, 000 people

approximately. The company expects that approximately 600 more people are expected to join the group in

next six months.

Mr. Gaur further explained, “Contrary to general perception of down syndrome in real estate, the real estate

division of the group has clocked sale of 4 mn sq. ft. in last eleven months out of which 1.7 mn sq. ft. has

been sold in the first half of the current fiscal i.e. (period April 08 to September 08). The impeccable track

record of JAL in execution and with no forex exposure, we are confident that the real estate business of the

group shall continue to march forward with unabated momentum as clocked so far”.

OUTLOOK

All the sectors of the company are on track to register robust growth and work is progressing in the right

direction with momentum. The group‟s aggregate new cement capacities in excess of 6 MT are under

advanced stages of completion and plants are poised to be commissioned at Sidhi (MP), UP and Gujarat. By

the end of the fiscal the group shall have in excess of 18 MTPA of cement capacity in operation. Construction

work on approximately 135 km of the expressway (165 km Yamuna Expressway project)

is in progress. Financial tie-up of the expressway project has been completed and the project is scheduled to

be completed by 2010. The power business of the company is also progressing well and

both, Baspa - II and Vishnuprayag projects are generating energy in excess of their design energy. Work on

the group‟s 1000 MW Karcham-Wangtoo project is progressing on fast track basis with the project

slated for commissioning six months ahead of schedule. The company has also completed Phase – I of 450

MW Baglihar project in J&K in keeping with its reputation of successfully completing projects in the most

challenging conditions. JAL has got nil foreign exchange exposure that can be adversely affected due to the

global turmoil. Its series III foreign currency convertible bonds (FCCBs) issued in 2007 are due for

conversation only in 2012. JAL, has the strongest credentials when it comes to project execution, building

new capacities, be it hydropower or cement and has consistently delivered in enhancing shareholder value.

2.4 PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION COMPETITORS

MAJOR COMPETITORS IN THE REAL ESTATE MARKET

UNITECH

Unitech entered civil engineering in 1974 with its sights firmly set on the future. And that's where our vision

is fixed today. Building upon experience and expertise Unitech is constantly looking for ways to improve all

our lives. From power transmission lines and highways to theme parks, from steel plants to

residential developments, from indoor stadiums to hotels our work is often pioneering and always

challenging. Our enviable track record proves our ability to deliver.

Launch of Iconic Towers - AQUA & TERA (part of the Unitech Grande)

Imagine living in masterpieces of Architecture, the tallest residential buildings in NCR.A tribute to the men

and women who outperform mere potential.

Launch of Uniworld City in Mohali (part of the Chandigarh Tricity.)

17th Jan'08. Surrounded by acres of greenery, Uniworld City. Mohall is just a 15 minutes drive away from

the Chandigarh airport as well as from the proposed Mohali airport.

Launch of residential project Harmony at Uniworld City in Kolkata

16th Aug'07

An ensemble of impressive towers enclosing a breathtaking Central Park, Harmony is located in southeast

corner of Uniworld City.

DLF

The DLF group is a leading real estate developer in India. The group has over 224 million sq. ft. of existing

development and 748 million sq. ft. of planned projects. DLF is committed to quality, trust and customer

sensitivity, and deliver on promises with agility, financial prudence and in tune with the highest global

standards. The company has also entered into several strategic alliances with global industry leaders.

The core business traditionally has been into three prime divisions: Homes, Offices and Shopping Malls. To

these DLF has added three more divisions: Hotels, Infrastructure and SEZs.

With over six decades of excellence, DLF is a name synonymous with global standards, new generation

workspaces and lifestyles. The Group has a distinction of developing commercial projects and technology

parks that are at par with the best in the world.

DLF has pioneered the 'walk-to-work' concept in the 3,000-acre DLF City, where well-planned residential

developments are integrated with modern business and commercial complexes. DLF's contemporary

workplaces are equipped with modern facilities that synchronize functional efficiencies with aesthetic appeal

and have been identified as preferred destinations by leading MNC's and Indian corporate, including many

Fortune 500 companies.

Business Enterprise in real estate industry are expanding at phenomenal pace to meet the ever expanding

demand for office and commercial space, especially for the knowledge industry.

Recent research carried out by McKinsey NASSCOM estimates the total demand for office space to go up to

500 million sq.ft. in the next 10 Years with IT/BPO contributing 60-70%. The remaining 25-40% shall be

met by non-IT and manufacturing sectors.

Built on a foundation of strong lineage and an established reputation, DLF Home Developers, the residential

business group of DLF, has been a trendsetter in contemporary urban development and housing. These

developments have always been all embracing with comprehensive solutions for eminent and quality living.

DLF has pioneered some of the best-known urban housing and retail destinations in Delhi including South

Extension, Greater Kailash, Rajouri Garden, Model Town, Hauz Khas and Kailash Colony.

Featuring International standards geared to serve customer needs, the Group's complexes are truly a

reflection of quality living and contemporary lifestyles. The product categories of the Group deliver the

synergistic strengths of good architecture, appropriate designs, impressive aesthetics and safety features.

The Group is also establishing partnerships with reputed leaders in the field of education, healthcare, and

hospitality services.

DLF‟S DOMINANT CURRENT POSITION IN INDIAN HOMES SEGMENT

PIONEERED TOWNSHIPS AND GROUP HOUSING IN INDIA

• 220 million square feet developed as colonies and townships in the past, including 17 million square feet of

residential properties

• Offers superior products in the super-luxury category

• Several world-class projects in the pipe-line

• Expansion into multiple cities across country

INDIA‟S LEADING PLAYER IN HOMES:

• Three generations of relationships with customers

• Trusted brand

• Superior execution track record

SUPERIOR PLANNING AND EXECUTION

UNIQUE ABILITY TO CREATE INTEGRATED TOWNSHIPS

• Pioneered the development of integrated townships with DLF city

• Creating the right mix of high quality housing, state-of the art offices, IT parks, world-class shopping

malls, digital entertainment, leisure and recreation, efficient Infrastructure, schools, hospitals and other

community spaces like parks and clubs

STRONG SALES AND MARKETING ENGINE

• Large network of dedicated direct sales agents

• Close working relationships with financing institutions

• High-caliber in-house team well positioned across the country

ANSAL PLAZA:

Ansal Plaza in Delhi at HUDCO Place revolutionized the shopping tradition as it brought the western mall

culture and changed the task of shopping into a major style statement. Built by Ansal - API, in a prime

location of South Delhi, Ansal Plaza soon changed the face of New Delhi. Ansal Plaza in New Delhi

accommodates many international brands. It boasts of exquisite infrastructure with huge underground

parking lot. The open air ampi-theatre in the centre of Ansal Plaza Delhi is very famous for organizing music

shows, kavi-sammelans, exhibitions, promotional activities as well as fashion shows. The astounding

construction with fountain and lush green surroundings has made Ansal Plaza, a landmark in Delhi.

The two major brands at Ansal Plaza are Marks & Spencer and Shoppers' Stop. One can find all major

brands in it. It can be called a "one stop shop for all." It accommodates garment shops, book shop, music

shop, mobile shop, candy shop, gift shop, jewelry shop, sports accessories shop, art gallery, toy shop,

beauty shop and many more. Several popular fast food joints are also housed in there like Subway, Mc.

Donald's, Amoretto's, Geoffrey's, Pizza Express and Nescafe. The Funkie Orbit is a major attraction for kids.

Ansal Plaza is one of the important malls in New Delhi that also offers exclusive services of Hutch, J&K Bank

and Club Mahindra Holiday.

Ansal Plaza is undoubtedly a paradise for shopping freaks as the excellent services provided with the best of

brands available all under one roof. It has certainly become a brand in itself. Indiahousing.com offers the

address of Ansal Plaza to meet all your shopping needs.

REAL ESTATE LIST

Ansals

Parsvnath Noida

HDIL Housing Development and Infrastructure Ltd.

Unitech Property

Ansal Plaza

Ashiana Builders and Developers

Arun Dev Builders

Unitech Kolkata

Ansal API

K Raheja Universal Builders

HDIL Issue

Vatika City Builders

Ansal Buildwell

GMR Infrastructure

Unitech India

Omaxe Group India Limited

Ansal Housing and Construction Limited

Prestige Homes

Unitech Builders India

Triveni Constructions and Properties

Parsvnath City

Mahagun Builders

Unitech Bangalore

Vatika Group

Parsvnath Builders

Shipra Real Estate Group

Unitech Greater Noida

TDI Developers

Parsvnath Gurgaon

Mahindra GESCO Developers

Vipul Builders Gurgaon

TDI Constructions and Builders

DLF Group India

DLF IPO

DLF Properties

DLF Gurgaon

DLF Kochi

DLF Projects

DLF Chennai

DLF Kolkata

DLF Golf Club

DLF Builders

DLF Flats

DLF Malls

DLF Real Estate

DLF Apartments

DLF Phase 1

DLF Phase 2

DLF Phase 3

DLF Phase 4

DLF Phase 5

DLF SEZ

Eldeco Group

Gaursons

Supertech Builders And Developers

Jaipuria Group

Kalpataru Builders

Sahara Infrastructure

Shipra Group

Confident Group

Eros Group

Goel Ganga Group

Montvert Builders And Developers

Alpine Group

Pushpanjali Builders

Achievers Builders

JMD Builders

Tata Housing

Prestige Builders

Shriram Builders

Dwarkadhis Builders

Kanakia Builders

Shapoorji Pallonji Group

Adarsh Developers

Appaswamy Real Estate Builders

Chaitanya Builders

Navin Group of Builders

M2K Developer

Crossings Republik

Emaar MGF Group

Godrej Properties

Panchsil Realty Group

Bearys Group

Vascon Engineers

D S Kulkarni Builders & Developers

Oberai Constructions

Purvankara Builders

Jaypee Infratech

Larsen & Tourbo

HUDCO

CREDAI

Kolte Patil Developers

Future Group

2.5 MARKET PROFILE OF THE ORGANIZATION

The Jaypee group is a well diversified infrastructural industrial group of India with a turnover of over

Rs.3000 crores (USD 650 million) that commenced its operations in 1972 as a partnership firm then known

as Jaiprakash Associates.

Three decades later with growth and diversification the group is now engaged in the businesses of

Engineering and Construction, Manufacturing & marketing of Cement, Development of Hydro-Power projects

in the Private sector, Engineering Design and Consultancy Services, Expressways and Highways

Development, Hospitality, Golf Resorts and Real Estate Development and Information Technology.

JAL, an acknowledged leader in the construction of multi-purpose river valley and hydropower projects,

is capable of undertaking any such project anywhere in the world on EPC (Engineering, Procurement and

Construction) basis. It has the experience and expertise to successfully complete such projects in

challenging terrain under severe and adverse weather conditions. Most of the hydropower projects of the

company are located in the Himalayas, which throws up major geological surprises including ruptured rocks,

squeezing rock conditions and water bodies, frequently making the task that much more

challenging and tough. The company has executed around 127 km. of tunnelling work, mostly in the

Himalayan range.

The group has a unique niche in the private power sector on Build Own Operate basis with :

300 MW Power Station in Baspa, Himachal Pradesh already in operation (India‟s largest Hydroelectric Power

Station in Private Sector) producing more than 1200 million units of clean & green energy, annually.

400 MW Vishnuprayag Power Project in Uttaranchal in advanced stage of implementation which is slated for

commissioning by mid 2006, to produce 2000 million units of clean & green energy.

1000 MW Karcham Hydro Power Project now being taken for implementation in Himachal Pradesh with

planned completion by 2010, to produce 4560 million units of energy

THE VARIOUS GROUP COMPANIES ARE:

Jaiprakash Associates Ltd. is the flagship company of the Group and an acknowledged leader in construction

of river valley and hydropower projects on turnkey basis and has been in the business for more than 3

decades. The company has had the unique distinction of executing simultaneously 13

hydropower projects spread over 6 states and the neighbouring country of Bhutan for the generation of

10,290MW of power. It is the only engineering company in India to be assigned "CR1" grade by ICRA

indicating 'very strong contract execution capacity' for hydropower (EPC) contracts with average values of

upto Rs.2,000 crores. The company has now made its foray into highway construction.

The Cement Division of Jaiprakash Associates Ltd. located at Rewa, Madhya Pradesh has 3 plants (and a

grinding unit), with an aggregate production capacity of 7 million tonnes per annum. This is the single-

largest cement complex at one location in India.

Jaiprakash Hydro-Power Ltd. is a subsidiary of Jaiprakash Associates Limited and is operating the 300 MW

Baspa-II power station in Himachal Pradesh after commissioing it in June 2003.

Jaiprakash Power Ventures Ltd. and Jaypee Karcham Hydro Corporation Ltd. are implementing the 400 MW

Vishnu Prayag hydroelectric project in Uttaranchal and the 1,000 MW Karcham-Wangtoo hydoelectric project

in Himachal Pradesh respectively.

Jaypee Ventures Ltd., the design and engineering arm of the group for mega hydroelectric projects has been

assigned CT-1 grade by the Credit Rating Agency (ICRA) and the Construction Industry Development

Council (CIDC). This is the highest rating assigned to consultants in the field of engineering.

Jaypee Hotels Ltd. has four 5-star deluxe hotels, 2 in Delhi and 1 each in Agra and Mussoorie.

Jaypee Greens Ltd. is developing the 450 acre, Jaypee Golf Resort, with the 18-hole 'Greg Norman

Signature' golf course already operational. This international 18-hole championship course, with a length of

7,343 yards, is the longest in India and third largest in Asia.

Jaiprakash Enterprises Ltd. undertakes contracts of civil engineering construction of varying magnitude in

various parts of the country including complex industrial construction of large size thermal plants.

JIL Information Technology Ltd. the infotech arm of the Group has pioneered India's first digital classroom

teaching aid, 'Bhartiyavidya'. It also delivers high quality, cost-effective IT-enabled software sloutions and

services.

Jaiprakash Sewa Sansthan, a „not-for-profit' Trust, is the service wing of the Group with special emphasis on

education at all levels of learning curve. This education initative is catering to over 9,000 students through

12 institutions including 3 centres of higher learning.

Jaypee Greens presents first of its kind Golf centric real estate development in India located in Greater

Noida - Stretching over 450 acres of nature,and includes a 18 Hole championship level Golf Course, Golf

Resort& Spa, an Integrated sports complex, 60 acre nature reserve, lakes and landscaped parks. The Star

Court masterfully crafted apartment towers of 15 storeys, are like islands in the sky, surrounded by

landscaped greens. Each apartment offers expansive views of the golf course and landscaped greens,

inviting the light and nature, indoors.

Jaypee Greens is a venture of Jaypee Group, a well-diversified infrastructural and industrial group with a

turnover of over Rs. 3500 crores. Jaiprakash Associates Limited is the flagship company of the Group and is

an acknowledged leader in construction of River valley and Hydropower projects, Engineering and

Construction, Cement manufacturing, Hospitality, Real Estate Development, and Infrastructure development

in the form of Expressways and Highways

CHAPTER 3

3.1 OBJECTIVE OF THE STUDY

To present an overview of the Real Estate Industry.

To critically analyze the Future Trends in Real Estate Industry.

To critically evaluate the position and prospect of major players in Real Estate Industry.

To enquire about the future prospect of Real Estate Industry

3.2 DESCRIPTIONS OF LIVE EXPERIENCES

This is one of the primary things that are required within the company. During my visits to different

Company, I came across that there is no awareness of the company in the form of posters, stands and other

related things. One thing that I would like to recommend would be the introduction of more promotional

activities so as to generate more revenues for the company. Company can introduce more--

– Schemes

– Get together‟ for channel partners

– Brand recognition in the market

– To Keep more inventories

– Advertisement in Institutional Areas

Although every effort has been in to collect the relevant information through the sources available, still

some relevant information could not be gathered.

Busy Schedule of Concerned Executives: The concerned executives were having very busy schedule

because of which they were reluctant to give appointment.

Time: The time duration could not provide ample opportunity to study every detail of the company.

Unawareness: Executives were unaware of many terms related to same while asking to them.

Confidential Information: As the company on account of confidential report has not disclosed some figures.

Moreover, in some cases separate accounts of division are not separately maintained thereby, leading to

restrictions in study.

4.1 STATEMENT OF RESEARCH PROBLEM

Research is a common language refers to a search of knowledge. Research is scientific & systematic search

for pertinent information on a specific topic, infect research is an art of scientific investigation. Research

Methodology is a scientific way to solve research problem. It may be understood as a science of studying

how research is don‟t scientifically. In it we study various steps that are generally adopted by researchers in

studying their research problem. It is necessary for researchers to know not only know research method

techniques but also technology.

The scope of Research Methodology is wider than that of research methods.

The research problem consists of series of closely related activities. At times, the first step determines the

native of the last step to be undertaken. Why a research has been defined, what data has been collected

and what a particular methods have been adopted and a host of similar other questions are usually

answered when we talk of research methodology concerning a research problem or study. The project is a

study where focus is on the following points:

4.2 RESEARCH DESIGN AND METHODOLOGY

Research is a common language refers to a search of knowledge. Research is scientific & systematic search

for pertinent information on a specific topic, infect research is an art of scientific investigation. Research

Methodology is a scientific way to solve research problem. It may be understood as a science of studying

how research is don‟t scientifically. In it we study various steps that are generally adopted

by researchers in studying their research problem. It is necessary for researchers to know not only know

research method techniques but also technology.

The scope of Research Methodology is wider than that of research methods.

The research problem consists of series of closely related activities. At times, the first step determines the

native of the last step to be undertaken. Why a research has been defined, what data has been collected

and what a particular methods have been adopted and a host of similar other questions are

usually answered when we talk of research methodology concerning a research problem or study. The

project is a study where focus is on the following points:

RESEARCH DESIGN:

A research design is defined, as the specification of methods and procedures for acquiring the Information

needed. It is a plant or organizing framework for doing the study and collecting the data. Designing a

research plan requires decisions all the data sources, research approaches, Research instruments, sampling

plan and contact methods.

Research design is mainly of following types: -

1. Exploratory research.

2. Descriptive studies

3. Casual studies

EXPLORATORY RESEARCH:

The major purposes of exploratory studies are the identification of problems, the more precise Formulation

of problems and the formulations of new alternative courses of action. The design of exploratory studies is

characterized by a great amount of flexibility and ad-hoc veracity.

DESCRIPTIVE STUDIES :

Descriptive research in contrast to exploratory research is marked by the prior formulation of specific

research Questions. The investigator already knows a substantial amount about the research problem.

Perhaps as a Result of an exploratory study, before the project is initiated. Descriptive research is also

characterized by a Preplanned and structured design.

CASUAL OR EXPERIMENTAL DESIGN :

A casual design investigates the cause and effect relationships between two or more variables. The

hypothesis is tested and the experiment is done. There are following types of casual designs:

I. After only design

II. Before after design

III. Before after with control group design

IV. Four groups, six studies design

V. After only with control group design.

VI. Consumer panel design

VII. Exposit facto design

4.3 ANALYSES OF DATA

A) DATA COLLECTION METHOD

PRIMARY SECONDARY

Direct personal Interview

Indirect personal Interview

Information from correspondents Govt.publication

Mailed questionnaire Report Committees & Commissions

Question filled by enumerators. Private Publication

Research Institute

PRIMARY DATA:

These data are collected first time as original data. The data is recorded as observed or encountered.

Essentially they are raw materials. They may be combined, totaled but they have not extensively been

statistically processed. For example, data obtained by the peoples.

SECONDARY DATA:

Sources of Secondary Data

Following are the main sources of secondary data:

1. Official Publications: Publications of the JAYPEE REAL ESTATE and by the corporate office of JAYPEE REAL

ESTATE.

2. Publications Relating to Trade: Publications of the trade associations, stock exchange, trade union etc.

3. Journal/ Newspapers etc.: Some newspapers/ Journals collect and publish their own data, e.g. Indian

Journal of economics, economist, Economic Times.

4. Data Collected by Industry Associations: For example, data available with JAYPEE REAL ESTATE.

5. Unpublished Data: Data may be obtained from several companies, organizations, working in the same

areas. For example, data on JAYPEE REAL ESTATE magazines.

Period of Study: This study has been carried out for a maximum period of 8 weeks.

Area of study: The study is exclusively done in the area of marketing. It is a process requiring care,

sophistication, experience, business judgment, and imagination for which there can be no mechanical

substitutes.

Sampling Design: The convenience sampling is done because any probability sampling procedure would

require detailed information about the universe, which is not easily available further, it being an exploratory

research.

Sample Procedure: In this study “judgmental sampling procedure is used. Judgmental sampling is preferred

because of some limitation and the complexity of the random sampling. Area sampling is used in

combination with convenience sampling so as to collect the data from different regions of the city and to

increase reliability.

Sampling Size: The sampling size of the study is 50 users.

METHOD OF THE SAMPLING

PROBABILITY SAMPLING:

It is also known as random sampling. Here, every item of the universe has an equal chance or probability of

being chosen for sample.

Probability sampling may be taken inform of:

SIMPLE RANDOM SAMPLING

A simple random sample gives each member of the population an equal chance of being chosen. It is not a

haphazard sample as some people think! One way of achieving a simple random sample is to

number each element in the sampling frame (e.g. give everyone on the Electoral register a number) and

then use random numbers to select the required sample.

Random numbers can be obtained using your calculator, a spreadsheet, printed tables of random numbers,

or by the more traditional methods of drawing slips of paper from a hat, tossing coins or rolling dice.

SYSTEMATIC RANDOM SAMPLING

This is random sampling with a system! From the sampling frame, a starting point is chosen at random, and

thereafter at regular intervals.

STRATIFIED RANDOM SAMPLING

With stratified random sampling, the population is first divided into a number of parts or 'strata' according to

some characteristic, chosen to be related to the major variables being studied. For this survey, the variable

of interest is the citizen's attitude to the redevelopment scheme, and the stratification

factor will be the values of the respondents' homes. This factor was chosen because it seems reasonable to

suppose that it will be related to people's attitudes

CLUSTER AND AREA SAMPLING

Cluster sampling is a sampling technique used when "natural" groupings are evident in a statistical

population. It is often used in marketing research. In this technique, the total population is divided into

these groups (or clusters) and a sample of the groups is selected. Then the required information is collected

from the elements within each selected group. This may be done for every element in these groups or a

subsample of elements may be selected within each of these groups.

NON PROBABILITY SAMPLING

It is also known as deliberate or purposive or judge mental sampling. In this type of sampling, every item in

the universe does not have an equal, chance of being included in a sample.

It is of following type:

CONVENIENCE SAMPLING

A convenience sample chooses the individuals that are easiest to reach or sampling that is done easy.

Convenience sampling does not represent the entire population so it is considered bias.

QUOTA SAMPLING

In quota sampling the selection of the sample is made by the interviewer, who has been given quotas to fill

from specified sub-groups of the population.

JUDGMENT SAMPLING

The sampling technique used here in probability > Random Sampling.

The total sample size is 50 profiles.

4.4 SUMMARIES OF FINDINGS

BUSINESS STRATEGIES OF THE REAL ESTATE INDUSTRY

THE MARKETING CONCEPT

The marketing concept is a business philosophy that challenges the three business orientations we just

discussed. Its central tenets crystallized in the mid-1950s.

• The marketing concept holds that the key to achieving its organizational goals consists of the company

being more effective than competitors in cre¬ating, delivering, and communicating customer value to its

chosen target markets.

The marketing concept has been expressed in many colorful ways:

"Meeting needs profitably."

"Find wants and fill them.'

"Love the customer, not the product."

"Have it your way.' (Burger King)

"You're the boss." (United Airlines)

"Putting people first." (British Airways) "Partners for profit." (Milliken & Company)

Theodore Levitt of Harvard drew a perceptive contrast between the selling and marketing concepts:

Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with

the seller's need to convert his product into cash; marketing with the idea of satisfying the needs of the

customer by means of the product and the whole cluster of things associated with creating, delivering and

finally consuming it.

The marketing concept rests on four pillars: target market, customer needs, integrated marketing, and

profitability. They are illustrated in Figure where they are contrasted with a selling orientation. The selling

concept takes an inside-out perspective. It starts with the factory, focuses on existing products, and calls for

heavy selling and promoting to produce profitable sales. The marketing concept takes an outside-in

perspective. It starts with a well defined market, focuses on customer needs, coordinates all the activities

that will affect customers, and produces profits by satisfying customers. see the Marketing Insight “Scholars

and Dollars: Marketing and Selling Comes to College”.

TARGET MARKET

Companies do best when then choose their target market(s) carefully and prepare tailored marketing

programs

CUSTOMER NEEDS

A company can define its target market but fail to correctly understand the customers' needs. Consider the

following example:

A major chemical company invented a new substance that hardened into a marble ¬like material. Looking

for an application, the marketing department decided to tar¬get the bathtub market. The company created

a few model bathtubs and exhibited them at a trade show. They hoped to convince manufacturers to

produce bathtubs with the new material. Although bathtub manufacturers thought the tubs were at-tractive,

none signed up. The reason soon became obvious. 7he bathtub would have to be priced at $2,000, whereas

most bathtubs sold in the $500 range. For the higher price, consumers could buy tubs made out of real

marble or onyx. In addition, the bathtubs were so heavy that homeowners would have to reinforce their

floors.

Understanding customer needs and wants is not always simple. Some customers have needs of which they

are not fully conscious. Or they cannot articulate these needs. Or they use words that require some

interpretation. What does it mean when the customer asks for an 'inexpensive" car, a 'powerful' lawn

mower, a 'fast' lathe, an "attractive" bathing suit, or a 'restful" hotel?

Consider the customer who says he wants an inexpensive car. The marketer must probe further. We can

distinguish among five types of needs:

1. Stated needs (the customer wants an inexpensive car)

2. Real needs (the customer wants a car whose operating cost, not its initial price, is low)

3. Unstated needs (the customer expects good service from the dealer)

4. Delight needs (the customer would like the dealer to include a gift of a U.S. road atlas)

5. Secret needs (the customer wants to be seen by friends as a savvy consumer)

Responding only to the stated need may shortchange the customer. Consider a woman who enters a

hardware store and asks for a sealant to seal glass window panes. This customer is stating a solution,

not a need. The salesperson might suggest that tape would provide a better solution. The customer may

appreciate that the salesperson not her need, not her stated solution.

A distinction needs to be drawn between responsive marketing, anticipative market¬ing, and creative

marketing. A responsive marketer finds a stated need and fills it. An anticipative marketer looks ahead into

what needs customers may have in the near future. A creative marketer discovers and produces solutions

customers did not ask for but to which they enthusiastically respond. Hamel and Prahalad believe that

com¬panies must go beyond just asking consumers what they want:

Customers are notoriously lacking in foresight. Ten or 15 years ago, how many of us were asking for cellular

telephones, fax machines, and copies at home, 24-hour discount brokerage accounts, multi valve

automobile engines, compact disc players, cars with on-board navigation systems, hand-held global satellite

positioning re¬ceivers, automated teller machines, MTB, or the Home Shopping Network?

Why is it supremely important to satisfy target customers? Because a company's sales each period come

from two groups: new customers and repeat customers. One estimate is that attracting a new customer can

cost five times as much as pleasing an existing one. And it might cost sixteen times as much to bring

the new customer to the same level of profitability as the lost customer. Customer retention is thus more

important than customer attraction.

INTEGRATED MARKETING

When all the company's departments work together to serve the customer's interests, the result is

integrated marketing. Unfortunately, not all employees are trained and motivated to work for the customer.

An engineer once complained that the salespeople are "always protecting the customer and

not thinking of the company's interest'! He went on to blast customers for "asking for too much." The

following example high¬lights the coordination problem:

The marketing vice president of a major European airline wants to increase the air¬line's traffic share. His

strategy is to build up customer satisfaction through pro¬viding better food, cleaner cabins, better trained

cabin crews, and lower fares. Yet he has no authority in these matters. The catering department chooses

food that keeps down food costs; the maintenance department uses cleaning services that keep down

cleaning costs; the human resources department hires people without regard to whether they are naturally

friendly; the finance department sets the fares. Be¬cause these departments generally take a

cost or production point of view, the vice president of marketing is stymied in creating an integrated

marketing mix.

Integrated marketing takes place on two levels. First, the various marketing functions-sales force,

advertising, customer service, product management, marketing re¬search-must work together. Too often

the sales force thinks product managers set prices or sale quotas "too high"; or the advertising director

and a brand manager all ¬not agree on an advertising campaign. All these marketing functions must be co-

or¬dinated from the customer's point of view.

Second, marketing must be embraced by the other departments; they must also "think customer."

According to David Packard of Hewlett-Packard: "Marketing is far too important to be left only to the

marketing department!" Marketing is not a department so much as a company wide orientation. Xerox goes

so far as to include in every job description an explanation of how that job affects the customer. Xerox

fac¬tory managers know that visits to the factory can help sell a potential customer if the factory is

clean and efficient. Xerox accountants know that customer attitudes are af¬fected by Xeroxs billing accuracy

and promptness in returning calls.

To foster teamwork among all departments, the company carries out internal mar¬keting as well as external

marketing. External marketing is marketing directed at people outside the company. Internal

marketing is the task of hiring, training, and motivating able employees who want to serve customers well.

In fact, internal mar¬keting must precede external marketing. It makes no sense to promise excellent

service before the company's staff is ready to provide it.

Managers who believe the customer is the company's only true 'profit center' consider the traditional

organization chart in Figure 1.8(a)- a pyramid with the pres¬ident at the top, management in the middle,

and front-line people and customers at the bottom-obsolete. Master marketing companies invert the chart,

as shown in Figure 1.8(b). At the top are the customers; next in importance are the front-line people who

meet, serve, and satisfy the customers; under them are the middle managers, whose job is to support the

front-line people so they can serve the customers well; and at the base is top management, whose job is to

hire and support good middle managers. We have added customers along the sides of

Figure 1.8(b) to indicate that all the company's managers must be personally involved in knowing, meeting,

and serving customers.

PROFITABILITY

The ultimate purpose of the marketing concept is to help organizations achieve their objectives. In the case

of private firms, the major objective is profit; in the case of nonprofit and public organizations, it is surviving

and attracting enough funds to perform useful work. Private firms should not aim for profits

as such but to achieve prof¬its as a consequence of creating superior customer value. A company makes

money by satisfying customer needs better than its competitors. Consider Frank Perdue's phi¬losophy:

Most companies do not embrace the marketing concept until driven to it by circumstances. Various

developments prod them to take the marketing concept to heart:

• Sales decline: When sales fall, companies panic and look for answers. Today, newspapers are experiencing

declining circulation as more people rely on radio, TV, and the Internet for their news. Some publishers now

realize that they know little about why people read newspapers. These publishers

• are commissioning consumer research and attempting to redesign newspapers to be contemporary,

relevant, and interesting to readers. They are also starting Web pages.

• Slow growth: Slow sales growth leads some companies to search for new markets. They realize they need

marketing skill to identify and select new opportunities. Wanting new sources of revenue, Dow

•

• Chemical entered consumer markets and invested heavily to acquire consumer marketing expertise to

perform well in these markets.

• Changing buying patterns: Many companies operate in markets characterized by rapidly changing

customer wants. These companies need more marketing know- how if they are to track buyers' changing

values.

• Increasing competition: Complacent companies may suddenly be attacked by powerful competitors. AT&T

was a regulated, marketing-naive telephone company until the 1970s, when the government began allowing

other companies to sell telecommunications equipment. AT&T plunged into

• the marketing waters and hired the best marketers it could find to help it compete. Companies in

deregulated industries all find it necessary to build up marketing expertise.

• Increasing marketing expenditures: Companies may find their expenditures for advertising, sales

promotion, marketing research, and customer service to be poorly done. Management then decides it is time

to undertake a serious marketing audit to improve its marketing. In the course of converting to a

marketing orientation, a company faces three hurdles: organized resistance, slow learning, and fast

forgetting.

BUSINESS AND MARKETING ARE CHANGING

We can say with some confidence that 'the marketplace isn't what it used to be.” It is changing radically as a

result of major societal forces such as technological advances globalization, and deregulation. These major

forces have created new behaviors challenges:

Customers increasingly expect higher quality and service and some customization They perceive fewer real

product differences and show less brand loyalty They cab obtain extensive product information

from the Internet and other sources, peel ting them to shop more intelligently. They are showing greater

price sensitive their search for value.

Brand manufacturers are facing intense competition from domestic and foreign brands, which is resulting in

rising promotion costs and shrinking profit margins. They are being further buffeted by

powerful retailers who command limited shelf space and are putting out their own store brands in

competition with national brands.

Store-based retailers are suffering from an oversaturation of retailing. Small retail¬ers are succumbing to

the growing power of giant retailers and "category killers.' Store¬-based retailers are facing growing

competition from catalog houses; direct-mail firms; newspaper, magazine, and TV direct-to-customer ads;

home shopping TV; and the In¬ternet. As a result, they are experiencing shrinking margins. In response,

entrepre¬neurial retailers are building entertainment into stores with coffee bars, lectures, demonstrations,

and performances. They are marketing an 'experience" rather than a product assortment.

COMPANY RESPONSES AND ADJUSTMENTS

Companies are doing a lot of soul-searching, and many highly respected companies are changing in a

number of ways. Here are some current trends:

• Re-engineering: From focusing on functional departments to reorganizing by key processes, each managed

by multidiscipline teams.

• Outsourcing: From making everything inside the company to buying more goods and services from outside

if they can be obtained cheaper and better. A few com¬panies are moving toward outsourcing

•

•

• everything, making them virtual companies owning very few assets and, therefore, earning extraordinary

rates of return.

• E-commerce: From attracting customers to stores and having salespeople call on offices to making

virtually all products available on the Internet. Consumers can access pictures of products, read the specs,

shop among on-line vendors for the best prices and terms, and click to order and pay. Business-to-business

purchas¬ing is growing fast on the Internet: Purchasing agents can use bookmarked Web sites to shop for

routine items. Personal selling can increasingly be conducted electronically, with buyer and seller seeing

each other on their computer screens in real time.

• Benchmarking: From relying on self-improvement to studying "world-class per¬formers' and adopting

"best practices."

• Alliances: From trying to win alone to forming networks of partner firms.

• Partner-suppliers: From using many suppliers to using fewer but more reliable sup¬pliers who work closely

in a 'partnership" relationship with the company.

• Market-centered: From organizing by products to organizing by market segment.

Global and local: From being local to being both global and local.

• Decentralized: From being managed from the top to encouraging more initiative and "intrepreneurship' at

the local level.

Summer training reports s atya ppppppppppppppppppp

Summer training reports s atya ppppppppppppppppppp

Recommended

Recommended

More Related Content

Similar to Summer training reports s atya ppppppppppppppppppp

Similar to Summer training reports s atya ppppppppppppppppppp (20)

Recently uploaded

Recently uploaded (20)

Summer training reports s atya ppppppppppppppppppp