1

(Affiliated to Madurai Kamaraj University)

Madurai – 625005

“A STUDY ON BUSINESS VERTICALS, COMPETITOR ANALYSIS AND

BRAND STRATEGY AT GRUNDFOS PUMPS INDIA PVT LTD, CHENNAI”

A Summer Internship Report in partial completion of Masters in Business Administration at

Thiagarajar School of Management, Madurai

April – June 2012

By,

GOKULNATH S

Reg No. 1111059

Under the guidance of

Internal Guide: Prof. Mrs.V.SELVALAKSHMI

External Guide: Mrs.DEEPALAKSHMI, Senior Executive Communication,Grundfos

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CERTIFICATE

This is to certify that this internship on “A STUDY ON BUSINESS VERTICALS,

COMPETITOR ANALYSIS AND BRAND STRATEGY AT GRUNDFOS PUMPS

INDIA PVT LTD, CHENNAI” is a bonafide work done by Mr. GOKULNATH.S in

partial fulfillment of the requirements for the award of the degree of the Master of Business

Administration, under my guidance. To the best of my knowledge this is her original effort

and has not been submitted for the award of any degree, diploma or certificate of this

University or any other university.

Principal, Faculty Guide,

Dr. M. NAGA RAJU ASST. PROF. V.SELVALAKSHMI

Thiagarajar School of Management Thiagarajar School of Management

Madurai.625005. Madurai.625005.

Place: Madurai

Date:

Accredited by NBA, AICTE for 3 years from January 22, 2008

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DECLARATION BY THE CANDIDATE

GOKULNATH.S

Reg No – 1111059

II MBA

THIAGARAJAR SCHOOL OF MANAGEMENT

MADURAI – 5

I, GOKULNATH.S, hereby declare that the project report entitled “A STUDY ON

BUSINESS VERTICALS, COMPETITOR ANALYSIS AND BRAND

STRATEGY AT GRUNDFOS PUMPS INDIA PVT LTD, CHENNAI” was

undertaken at Grundfos, Chennai is the record of authentic work carried out by me during the

period from 16th

April To 08stJune and has not been submitted to any other university or institute

for the award of any degree/diploma etc.

Place: Madurai Signature of the candidate

Date:

(GOKULNATH.S)

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GOKULNATH.S +91-9445926626

gokulnath@in.com

______________________________________________________________

Career objective:

To work in a competent atmosphere this enables me to cope with the

emerging trends to widen my spectrum of knowledge for the process of concern.

Academic Qualification:

Year of passing

Qualification Institution % or CGPA

2013 M.B.A

Thiagarajar school of

management

Madurai -625005

6.8/10

2011 B.E (E.C.E)

SKR Engineering

College,

Poonamallee, Chennai -600123

65

2007 HSC Kurinji Hr.Sec School,

Namakkal – 637003.

82.3

2005 MATRIC Kurinji Matriculation

School,

Namakkal– 637003

85.5

Technical Skills:

Operating Systems : windows 9X+, Linux, Android OS.

Programming Language : MATLAB, SPSS.

Highlights

Areas of interest Banking, Services, Telecommunication Well knowledge in Networking and in mobile communication Information System analyser Quick learner Tech-savvy . References: It will be provided at the time of interview.

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Other qualifications and skills:

Certification in WIRELESS TECHNOLOGY from BSNL with First Class

Member in ISTE and IEEE as student chapter.

Coordinator of BETA in SKR engineering college

LinkedIn Profile:

http://www.linkedin.com/profile/view?id=102391394&trk=tab_pro

Industrial Exposure:

Industrial visits made:

o Satish Dhawan Space Centre, ISRO, Sriharikota.

o National Atmospheric Research Laboratory, Tirupathi.

o Loyal Textiles, Kovilpatti.

Attended SEBI investor analysis Programme.

Projects undertaken:

“RADAR SYSTEM ANALYSIS AND DESIGN FOR CLUTTER, MOVING TARGET

INDICATOR AND TARGET TRACKING” USING MATLAB Portfolio management of FORD

Special interests:

Reading tech magazines ,Gadget freak

Adventurous Travelling and Listening light music

Personal Information:

Name : Gokulnath.S

Date of Birth : 21st April 1990

Father’s Name : Selvaraju.P

Address : 3/1 Navithan kattu street, Periyapatty (PO)

Namakkal – 637002.

Declaration:

I hereby declare that the information stated above is true to the best of my knowledge.

Madurai

Gokulnath.S

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TABLE OF CONTENTS

CHAPTER TOPIC PAGE NO.

1 Introduction 9

1.1 Introduction about Grundfos 10

1.2 Objective of the study 11

1.3 Grundfos green building 12

2 Literature Review, Industry &

Company Profile 13

2.1 Literature review 14

2.2 Industry Profile 16

2.3 Company Profile 18

2.4 Grundfos India 19

2.5 Grundfos Slogan 20

2.6 Grundfos Values 21

3 Business Verticals and SWOT Analysis 23

3.1 Business Verticals 24

3.2 Marketing Departmental Structure 25

3.3 GIN‟s Vision and mission 26

3.4 GIN‟s Marketing goals 26

3.5 Marketing responsibilities 26

3.6 Group Marketing Policy 27

3.7 Distribution Channels 28

3.8 SWOT Analysis 29

3.9 PESTEL analysis 36

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4 Branding & Departmental activities 37

4.1 Branding 38

4.2 Internal Branding 39

4.3 Branding Tools 41

4.4 Branding promotions 44

4.5 Sales 45

4.6 Service Department 51

4.7 After Sales Service 53

4.8 Supply Chain Management 54

4.9 Logistics 56

4.10 Purchases 61

4.11 Value chain 64

5 Learning‟s & Conclusions 65

5.1 Learning‟s 66

5.2 Conclusions 71

6 Appendix 72

6.1 Acronyms 73

6.2 Bibliography 74

6.3 Work Diary 75

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ABSTRACT

The project titled as “A STUDY ON BUSINESS VERTICALS, COMPETITOR

ANALYSIS AND BRAND STRATEGY IN GRUNDFOS PUMPS INDIA PVT LTD.,

CHENNAI” has been done as a part of my MBA curriculum. The main objective is to study the

competitor analysis with which competitor to compete and their strategies and planned actions and

also deals with the brand strategy. The Group branding strategy shall ensure that customers,

potential employees and other stakeholders will increasingly think of Grundfos as the most

responsible, most future-oriented and most innovative pump group in the world.

The major finding of the study reveals the various causes for grundfos industry is due to

pricing and several foreign players entrants into the market .Grundfos view is to sustain for the long

term in the market and therefore they have to pull more customers and have to retain their old

customers

Place: Gokulnath.S

Date:

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CHAPTER 1

INTRODUCTION

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1.1 Introduction about Grundfos:

Grundfos, The Danish Company‟s annual production of 16 million pumps comes from 14

production facilities across the globe, employing over 16,000 workers. The Indian pump market, in

the 1990s, was a manufacturer's worst nightmare. It was extremely fragmented, highly price

sensitive, cared little for technology or brands. Over 80 per cent of sales came from scores of small

players.

In 1999, Grundfos started up by setting a assembling unit in Chennai. It soon realised that managing

this notorious market was not as difficult as it had initially feared. Eleven years later, today, its

products have created a Rs 500-crore market for premium pumps, of which Grundfos controls half.

Grundfos pumps start at Rs 5,000 and go up to Rs 50 lakh - representing a mark-up of two times

over the nearest equivalent, especially in industrial applications. It is now present in all segments

incluing marine pumps. They are the only player to provide customised solutions in the pump

industry.

Grundfos identified potential region for selling their pumps. They classified those regions as STAR

regions.The STAR countries include Brazil, China, South Africa, Egypt, Russia and India.They

further concentrates on energy consumption and device their technology to reduce it in several

ways. They are having well talented research and development team comprising of 80 people in

GIN. GIN is known for their innovative pumping technology.

They are using forward contracts with regards to finance departments and having 120 days credit

period, in marketing they go for outsourcing some of their activities , in HR department they are

using Pocket Software for payroll, they are tie up with naukri.com and recruits the candidates via

that and in operation department they are computerized for orders and delivery and having tiee up

with Blue Dart Services. In 2010, all over world they are integrated with management information

system.

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Keyfigures (million euro.) 2011 2010

Turnover 2.841 2.633

Ordinary profit before tax 270 322

Profit bef. tax as % of turnover 9.5 % 12.2 %

Consolidated Equity Capital 1.653 1.563

Return of Equity Capital 11.9 % 16.8 %

Total assets 2.613 2.610

Number of employees 17.481 16.609

Financial Sheet

1.2 Objective of the Study:

The objective of the study reveals around

- Study on their business verticals

- SWOT Analysis on different segments and PESTEL Analysis

- How they Brand their company and what tools are using it

- Challenges facing by them.

Duration of Study:

2 Months - April 16, 2012 to June 8, 2012.

Department: Marketing

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1.3 GRUNDFOS GREEN BUILDING:

With the concept of sustainable architecture catching up, Grundfos India reiterates its commitment

to sustainability by investing in greening their factory premises and receiving Gold certification

under IGBC Green Factories Rating System.

The movement of green buildings is slowly and steadily growing in India and almost 1.2 billion

square feet of constructed buildings in India (either built or under construction) have already been

pre-certified by Leadership in Energy and Environmental Design (LEED). To put this in

perspective, this accounts for almost 4.8% of the overall built up space in India of 25 billion sq.

feet. The growth of green architecture in India is a continuing upward trend and it is being estimated

that by 2030, green buildings would account for almost 30% construction in India.

Green buildings are the buildings that are environmentally responsible and a healthy place to live

and work in. The careful choice of materials used in its construction and energy efficient operation

of the building are the hallmarks of a Green Building. These buildings address energy-efficiency by

paying attention to critical operations like Air-conditioning, lighting with optimal utilization of

water with an eye on its distribution, economic usage, discharge, conservation and it re-use, thereby

ensuring an ecological balance with its surrounding environment.

Amongst the newly certified green buildings, Grundfos, the Danish pump major, recently

completed their new factory in Chennai and received Gold certification under IGBC Green

Factories Rating System. Their earlier office building in Chennai is also previously LEED Gold

certified and with this new feather in their hat, the company has further reiterated their commitment

to sustainability and green development. 'The overall Grundfos goal is that when this generation

delivers planet Earth to the next generation, it should be a cleaner and more energizing place than

the place that we inherited'

“Grundfos green building in Chennai, the first building to be LEED certified in Grundfos Global

community is the living embodiment of the principles Grundfos stands for”

The cost of the building when constructed was 10% more than the conventional buildings; however

it uses 25% less energy and 40% less water than any conventional building. A major part of the

investment went to the special glazing used in the windows, which lets the light in and at the same

time keeps the heat out, cutting on air conditioning costs.

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CHAPTER 2

LITERATURE REVIEW,

INDUSTRY AND COMPANY PROFILE

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2.1 LITERATURE REVIEW:

1. CHALLENGES OF BRANDING IN A B2B CONTEXT

Sheena Leek1, George Christodoulides

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Birmingham Business School, University of Birmingham,

Edgbaston,

Birmingham B15 2TT. Tel: 0121 414 6226

ABSTRACT

Purpose of the paper and literature addressed: The existing body of research knowledge on

brand management has been predominantly derived from business to consumer markets,

particularly fast moving consumer goods. Business-to-business branding has received

comparatively little attention in the academic literature due to the belief that industrial buyers are

unaffected by the emotional values corresponding to brands. As a result branding in business-

to-business marketing is at the nascent stage of its development.

Main Contribution: The aim of the current paper is to critically review the extant research with

a view of consolidating the literature and propose a future agenda for research on B2B branding.

The models of both consumer and business to business branding need to be examined and

assessed in order to determine whether further refinement is needed. It is necessary to

determine what level of branding i.e. product or company is useful to buyers in determining their

purchase criteria.

Keywords: Branding, B2B brands, Literature review,

2. CUSTOMER-BASED BRAND EQUITY: A

LITERATURE REVIEW

Chieng Fayrene Y.L.,

Curtin University of Technology, Malaysia,

CDT 250, 98009 Miri, Sarawak, Malaysia

ABSTRACT

Brand equity is a concept born in 1980s. It has aroused intense interest among business strategists

from a wide variety of industries as brand equity is closely related with brand loyalty and brand

extensions. Besides, successful brands provide competitive advantages that are critical to the

success of companies. However, there is no common viewpoint emerged on the content and

measurement of brand equity. Brand equity has been examined from financial and customer-based

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perspectives. This paper will only study the customer-based brand equity which refers to the

consumer response to a brand name. The aims of the study are to review the dimensions of

customer-based brand equity by drawing together strands from various literature and empirical

studies made within the area of customer-based brand equity. A conceptual framework for

measuring customer based brand equity is developed to provide a more integrative

conceptualization of brand equity

Keywords: brand equity, brand awareness, brand associations, brand loyalty.

3. The Impact of SWOT Analysis on Achieving a Competitive Advantage: Evidence from

Jordanian Banking Industry

Mahmoud al-Rousan

Chair of Marketing Department, Jadara University, Jordan

E-mail: Mahmod_Alrousan@yahoo.com

Farid Qawasmeh

Chair of Business Administration Department, Jadara University, Jordan

E-mail: Drfaridqawsmeh@yahoo.com

ABSTRACT

The Jordanian banking sector is currently facing higher and stronger foreign competition. There are

now as many as 28 domestic and foreign banks operating in the Jordanian market. For such banks to

stay in business and grow in this highly competitive environment, they should respond positively to

all sources and types of foreign as well as domestic competition. In this study, we empirically

examine the relationship between implementing SWOT analysis and achieving competitive

advantage from the point of view of Jordanian banks' executive managers. We found a positive

relationship between SWOT analysis and dimensions of competitive advantage. Several

recommendations were suggested such as calling for mergers, acquisitions or coalitions among

smaller banks so as to enhance the banks' competitive stance.

Keywords: SWOT Analysis, Competitive Advantage, Strategic Track.

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2.2 INDUSTRY PROFILE

The pump industry is a very large industry and plays a critical role in almost every facet of

our lives such as water supply, fire protection, oil & gas, power plants, waste water treatment, sump

pumps at homes, processing chemicals, foods & pharmaceuticals and many more.

Pumps are the vital elements in an enormous range of fluid handling applications & range

from small household pumps to immense units utilized in the water, chemical and energy industries.

Pump performance requirements and duties vary considerably in terms of materials of construction,

wide range of temperature, pressure, viscosity, density etc. Pumps are employed in almost all the

industries.

The greatest demand for pumps is for moving water from waterways& sources to residential

& industrial users & then to remove the waste water from these users through treatment & discharge

back to the waterways. Of the total revenue of $ 22 billion, water alone constitutes $ 10.2 billion.

In India, the pumping of drinking water from small wells is still a major need whereas in

Singapore large pumping systems are needed to move drinking water in from Malaysia. The Indian

Pump industry has more than 500 manufacturers with worker strength of over 30,000 producing

about 1.2 million pumps. Indian market for pump is estimated to be Rs. 25000 million growing at

an annual rate of 8%.

In India, the manufacture of pumps has by now a history of nearly eighty years. Pumps

being the basic equipment for every sphere of the national economy, the Indian pump industry have

in its own growth, contributed immensely to the economic growth of the country. The enterprise in

the Indian pump industry merits appreciation for the achievements of prompt and competent

indigenization of almost every type of pump, of pumps in gigantic sizes, of pumps of a variety of

constructional features and operational sophistications and of pumps in a variety of materials of

construction. The industry has over the years built up great potential to meet challenges. It has also

worked with good foresight and resilience to adapt to emerging trends, be it the compliance with the

requirements of the Quality systems as per ISO 9000 series of standards or the exposure to the

global competition, prompted by the liberalization of the economy.

The following review surveys some notable achievements and developments of pumps and

of the capabilities of the Indian pump industry to fulfill the country‟s domestic demand from

various sectors.

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Applications of pumps

Various applications of pumps are listed below:

Transportation: It is a prime function.

Circulation: For homogenizing the temperature and / or composition of fluid.

Mixing: Two or more streams can be connected at the suction of pump & mixing can achieved.

Injecting: High pressure can be developed by using pump and fluid can be injected in pipe or tank.

Metering: Pumps can be used as metering device.

Pressure Reducing Device : Rotary Pumps can be used for reducing the pressure in polymers.

Agitator Pumps : Submersible pump keep the solids in suspension & prevent setting.

Vacuum Generation: Liquid ring vacuum pumps are well known. Dry vacuum pumps are also

developed.

Reactor : When two liquids are to be reacted with very small residence time then pump can be used.

Cavitations Reactor : When one liquid and another in vapor form are to be reacted, the principle of

cavitations can be used.

Indian pump industry at present met the pump requirements of 95% of applications.

The Challenges ahead

Stabilizing the head characteristics of large, high specific – speed mixed flow pumps by using CFD

(Computational Fluid Dynamics) techniques.

Predicting the performance curves of pump using CFD.

Eliminating vibrations & off – design pressure & flow fluctuations.

Finding solutions to both rotor & structure related vibrations using FEA (Finite Element Analysis).

Performance & life of pump is drastically affected due to cavitation. Improved blade shapes

reduces / eliminates cavitation damage.

Develop highly reliable pump such that no standby pump is required.

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2.3 COMPANY PROFILE

GRUNDFOS a Denmark based company is one of the World‟s leading Pump manufactures.

Grundfos a name synonymous with high quality and energy efficient pumps and pumping solutions,

round the globe.

The company is well known for its product reliability, credibility, innovation, consultancy

and prompt service. It is our Mission - the basis of our existence - to successfully develop, produce

and sell high quality pumps and pumping systems worldwide, contributing to a better quality of life

and healthy environment. Grundfos is constantly striving to make its products not only more user-

friendly and reliable but also energy saving and efficient, so that both users and the environment

benefit from their improvements.

Wherever an efficient and energy saving pump solution is required, Grundfos has a high

quality solution that can be used. Grundfos have a wide range of pumps and pumping solutions

catering to various applications – Heating and hot water service systems, Cooling and air-

conditioning systems, Industrial applications, Pressure boosting and liquid transfer, Ground water

supply, Domestic water supply, Sewage and wastewater, Dosing and Renewable energy systems,

etc. It has solutions for different market segments – Domestic Building Services, Commercial

Building Services, Industry, Waste water and Water Supply/irrigation and environment.

The company produces in excess of 15 million pumps in a year and the consistency in

product finish/performance is primarily due to the modern production processes and the very strict

monitoring of the quality of the products. The group is represented by 82 sales companies in 45

countries with a turnover of over USD 3602 Millions. The sales volume is handled through the

distributor/ dealer network in more than 100 countries with 13 manufacturing units all over the

world.

Grundfos, established in 1945, has gone a long way in integrating the modern advances in micro-

electronics into pumps for operating and controlling the pumps and pumping systems. These would not have

been possible but for the importance that GRUNDFOS attaches to R&D. In order to maintain its leading

position, Grundfos constantly places a great deal of emphasis on customer-oriented Research and

Development; Customers are consulted when new products are developed or when established products are

improved. R&D make use of the latest technology within the pump industry, collaborating with universities

and higher educational institutions in search of new and better solutions for the design and function of the

products.

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2.4 GRUNDFOS India

The Indian operation Grundfos Pumps India Pvt Ltd started in the Year 1998 is a 100%

subsidiary of Grundfos – Denmark, and is located in Chennai. It has 21 branch/home offices and 10

service centers and operates with over 100 dealers and distributors. Grundfos India is also

responsible for the business in Bangladesh, Bhutan and Maldives.

The Chennai facility was inaugurated in March 2005 and is a certified Green building with a

GOLD rating from the Us Green building council. This is the first Industrial office building to be

certified in India. The facility houses the production, warehouse, service, training centre and offices.

Its design embodies all the values of Grundfos as a company when it comes to energy and

environment. The manufacturing facility in Chennai was set up to assemble reliable energy efficient

pumps to save the customer and the country energy costs and reduce their impact on the

environment.

The future for Grundfos India lies in bringing in new technology to suit the Indian markets

and Indian customers, GRUNDFOS pumps provide the ultimate solution to the pumping problems

with the lowest life cycle cost to its users.

Grundfos is the world‟s largest pump manufacturer, with more than 18,000 employees

globally. The annual production of more than 12 million pump units, circulafor pumps (UP).

Submersible pumps (SP), and centrifugal pumps (CR) is approximately 50% of the world market

for these pumps. Grundfos also produces electric motors for the pumps as well as a considerable

amount of electric motors for separate merchandising. Furthermore, Grundfos develops and sells

state-of-the-art electronics for controls for pumps and other systems. Grundfos is the full range

supplier of pumps and pump solutions, represented in every part of the world.

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2.5 GRUNDFOS SLOGAN

Be – Think – Innovate

BE

Being responsible is our foundation. We know that we have a responsibility towards the

people who are Grundfos, towards the innovative soul of Grundfos, as well as towards the

surrounding world. Whatever we do, we make sure that we have a firm and sustainable basis for

doing it.

THINK

Thinking ahead makes innovation possible. We encourage a certain Grundfos way of

thinking that is founded on the belief that everyone must contribute by using his or her judgment

and foresight. We are looking for commitment and ideas in everything we do in order to make the

best solutions. We think-and then we act.

INNOVATE

Innovation is the essence. It is the innovations that make grundfos unique. We stand out

because of our ability to constantly create new solutions to the ever-changing demands of the pump

business. We meet every challenge, and we are never afraid of taking the initiative – remaining true

to our ideals is the basis for our ongoing renewal. Innovation is the Soul of grundfos.

Mission of the company

It is the mission-the basis of the existence-to successfully develop, produce and sell high-quality

pumps and pumping systems world-wide, contributing to a better quality of the and a healthy

environment.

Vision of the company

The customers acknowledge company as the leading producer and partner when it comes to

high-quality pumps-both in terms of performance and the environment.

The customers acknowledge Grundfos as the leading producer and partner when it comes to

high-quality pumps – both in terms of performance an the environment.

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The rest of society recognizes and regards Grundfos with respect as a result of responsible

conduct in relation to the laws of the society, the principles of democracy, local traditions and

the environment – as well as relations to the people whose lives and circumstances they touch.

2.6 GROUP VALUES

1. Sustainable Department

Respect fro environment energy consumption use of materials

Health and safe working condition to attract present and future employees

Little stain on our surrounding cleanliness and more energizing place which we inherited

2. Focus On People :

10000 employees all over the worlds most basic and fundamental need of humanity.

Respect of rights.

Treat employees as family members and good friends

Employees are not treated as resources like machineries building and capital.

People are human being with ideas, sense of commitment, needs desire, sense of

responsibility, skill and competence and sometimes problems.

3. Global Thinking:

Glob Department

global mindset

Need for high quality pumps all over the world.

Need for consulting services all over the world differs.

Focus on regional production facilities and local set up cannot accomplish by forcing

Danish culture

4. Open And Credible Conduct

People must find credible and trust trustworthy company active information policy.

Achieve responsible participant in public debate we shall be open and honest.

5. Leadership

Want to be a market leader in pump industry.

Establishes production facilities in or close to every largest market.

Continuously support research into new materials so that can meet demand for effective

safe and energy efficient systems.

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6. Partnership

Reliable long term partners not just as suppliers.

Advising customers they can receive the product which meets exact needs not more or

less.

Close geographical proximity.

7. Responsibility

Both in business and in society in general harmozine with environment

Explore new method to protect environment

Environment friendly solutions.

Social responsibility towards both employees and local community

Reduced work

Capability and flexible working conditions.

8. Independence

Private company and main share holder is Paul due Jensen foundation.

Healthy financial solution

Group will remain as an independent company in accordance with wishes of foundation.

A high profit level as a means to groups continuous existence and development not a

goal in itself.

GRUNDFOS COVERS THE APPLICATION AREAS

Heating and hot water systems

Cooling and air conditioning systems

Industrial applications

Pressure boosting systems

Ground water supply

Domestic water supply

Sewage & waste water

Environmental applications

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CHAPTER 3

BUSINESS VERTICALS AND SWOT ANALYSIS

24

3.1 BUSINESS VERTICALS:

Grundfos pumps India operates over 85 different countries including India and they are most

responsible, most future oriented and innovative pump supplier in the world. In India, they are

producing NB and NK pumps and doing local assembly for some of the pumps. They have seven

branch offices, 145 point of sales centre and 15 authorized service centre.

The business verticals of grundfos India is classified into five types. They are

1. Domestic Building services

- Installations in one or more houses

2. Commercial Building Services

- Installations in and around large buildings

Eg: Institutions, Hospitals, Hotels, Office buildings, Apartments & Resorts

3. General Industry & Process Industry

- Equipment with a built-in pump

Eg: Automobile, Tyre, Cement, Chemical,etc

4. Waste water Treatment

- Installations in and around water supply.

- Installations for irrigation, agriculture, golf courses, etc

- Large pumps and pumping systems used predominantly in Municipal and large private

instrastructure projects.

25

3.2 STRUCTURE OF MARKETING DEPARTMENT

Chief Executive Officer

Chief Marketing Office

Senior Communication

Executive

Senior sales executives

Sales administration

26

3.3 Gin’s Marketing Vision and mission

To penetrate, position, consolidate Grundfos India (GIN) as a high-quality, innovative pumps supplier and

solution provider by creating right market opportunities to the sales team and channels in order to achieve

identifiable growth, year- on-year in each of the segments that it operates in, and thereby delivering

perceivable benefits to its customers.

3.4 GIN’s marketing goals

Continue the growth rate that GIN has had over the last years

Improve market shares

Identify Growth areas before others and be the most active player

The way to achieve is

o Branding and aggressive promotion

o Key account partnership

o Channel network expansion

o Identify emerging market segments and activate sales process

o Appropriate products for the mass markets

3.5 Marketing Responsibilities

EExxtteerrnnaall CCoommmmuunniiccaattiioonn

>> EExxhhiibbiittiioonnss// SSeemmiinnaarrss

>> GGiiffttss // GGiimmmmiicckkss ((PPOOSS aanndd ffoorr eevveerryy sseeggmmeenntt))

>> DDeeaalleerrss ccoonnffeerreenncceess // llaauunncchheess

>> CCoo--oorrddiinnaattiioonn wwiitthh SSaalleess ooffffiicceess

>> AAddvveerrttiisseemmeenntt -- EExxtteerrnnaall ccoo--oorrddiinnaattiioonn ((mmeeddiiaa cchhooiiccee,, rraatteess eettcc))

IInntteerrnnaall ccoommmmuunniiccaattiioonn

>> AAddvveerrttiisseemmeenntt -- ccrreeaattiivvee//nneeww iiddeeaass

>> CCaattaalloogguueess // BBrroocchhuurree uuppddaattee ((IInnddiiaa cceennttrriicc))

>> NNeewwsslleetttteerrss ((DDeessiiggnn // ccoonntteenntt // ccoonncceepptt))

27

>> NNeeww pprroodduucctt rreelleeaasseess ((ddiissttrriibbuuttiioonn ooff nneeww pprroodduuccttss ddeettaaiillss eettcc))

>> PPRR

>> WWeebbssiittee uuppddaattee

>> CCaattaalloogguueess ddiissttrriibbuuttiioonn

>> CCaassee ssttuuddyy--PPrreeppaarraattiioonn -- IInnddiiaa vveerrssiioonnss iinn aallll bbuussiinneessss aarreeaass..

3.6 GROUP MARKETING POLICY

In its long-term market strategy the Grundfos Group will primarily focus on markets with big future

potential but at the same time strive to become the most global pump group in the world? The

Group marketing strategy will be implemented in close co-operation with the market segments and

sales regions. In all markets as well as the individual market segments, the Group will work to

achieve a market share big enough to become a market leader. Furthermore, marketing activities

will be based on know-how within the fields in which the Grundfos product range is applied.

In its marketing activities the Group will use quality, environmental awareness and energy

consciousness as decisive parameters. In its sales activities the Group will always make use of high-

level ethical marketing practices. In his/her sales efforts no member of Grundfos‟ staff may talk

unfairly about any competitor.

Grundfos companies shall play an active role in relation to trade associations and local authorities to

the extent to which it is considered to increase Grundfos‟ influence. In order to protect the Grundfos

corporate image and to establish good customer relations, each Grundfos company shall provide the

best possible after-sales service through its own service organization supplemented by Grundfos-

authorized service partners.

Any decision to market Grundfos‟ products in areas where the Group is not represented by

Grundfos companies, branch offices or joint venture companies must be made by Group

Management.

28

The world market for industrial pumps will grow by just 19 percent through 2015 when it

will reach $40 billion.

Top ten Players in The pump Market

1. Itt

2. Flowserve

3. KSB

4. Sulzer

5. Grundfos

6. Ebara

7. Weir

8. Baker Hughes

9. Schlumberger

10. Clyde Union

3.7 Distribution Channels

The following are some common distribution channels.

1) Manufacturer -> Branch -> Distributors -> Retailer

2) Manufacturer -> Distributors -> Showroom -> Retailer

3) Manufacturer -> Retailer

4) Manufacturer -> Agent -> Export

29

3.8 SWOT Analysis:

Overall Segment

Strength

1. Superior product performance over competitors

Aggressive of media plan to broadcast the product quality

2. Having good customer reference

To be used in the market to increase the dealer base and customers

3. Availability of pumps with master distributor

Quicker delivery is one of the advantage in the market to increase the dealer counts

2. Weakness

1. Gap in product range over competition

Pumps from DAB to cover the GAP

2. Service availability / Sales network

Expansion of sales / service network

3. Brand awareness – Domestic market

Increase brand awareness through various promotional activities.

3.Opportunities

1. Growing spending power.

Appointment of dealer /media plan on life

Style/Availability of pumps at major sanitary counters

2. Awareness for energy efficient and quality products

Reference of users list and power savings data to be put in the web site and posters at dlr

place

30

3. India to become the hub for sanitary ware manufacturing market

Appointment of more sanitary dealers as direct dealers

Local competitors having poor quality

Retrofit market

Threats

1. Copy cats

Media release differentiating over competition and Patent rights for pumps

2. Low cost pumps from China

Media release differentiating over Chinese Pumps.

SWOT Analysis Segment wise:

DBS

Strengths:

1. Superior product performance over competitors – to sustain

2 Aggressive of media plan to broadcast the product quality

Weakness

1. Gap in product range over competition

Pumps from DWT to cover the GAP

2. Service availability / Sales network

Expansion of sales / service network

31

3. Brand awareness – Domestic market

Increase brand awareness through various promotional activities

Opportunities:

1. Appointment of dealer /media plan on life

2. style/Availability of pumps at major sanitary counters

3. Awareness for energy efficient and quality products

4. Reference of users list and power savings data to be put in the web site and posters at dealer.

place

5. India to become the hub for sanitary ware manufacturing market

6. Appointment of more sanitary dealers as direct dealers.

Threats:

1. Copy cats

Media release differentiating over

Competition and Patent rights for pumps

CBS

Strengths:

1. Dedicated technical team

Faster/Effective presales support.

2. Brand Image & Goodwill – To sustain

Positioning new products.

3. Competitive deliveries

32

Strength to sustain

Weakness:

1. Price

2 SEZ & Localisation (Green field Project)

Opportunities:

1. Growing realty sector & Infrastructure

Focus on metro & tier II cities.

2. 400 cr. INR fire market (New to GIN)

leveraging using our brand image

Threats:

1. Local production of global competition.

Faster localization of products

2. Local pump manufacturers/ Copy cats entering CBS

To position DWT products.

IEM

Strengths:

1. Brand Image – To sustain

Positioning of new products.

2. Network

Retain, train & walk along the distribution network which is dedicated.

3. Solutions through FPV

Keep looking for opportunity beyond obvious and provide the right solution through FPV.

33

Weakness

1. Slow reaction to market feed back.

Periodic review to improve response.

2. No Products for High Pressure Desalination application or Boiler Feed

Acquire or Develop new products to meet the customer requirements

3. Fragmented Approach on specific demand from the customer

Collective approach for all products is needed.

Opportunities:

1. Industry Market is growing at 10% +

Focus more on IEM customers based on COO concept.

2. Huge potential for ES/HSC/Sanitary/High pressure pumps

Product range with acceptable prices.

3. Awareness on Energy conservation is getting better and better.

Education on Energy conservation & techniques is important.

Threats:

1. International Players with comparable quality are setting up shops in India

To be more agile in covering the market thro proper network and our Team.

2. C -Market is becoming bigger and the A –Market is getting saturated.

Dual brand strategy and positioning products according to the market

34

WW

Strengths:

1. Proven project handling capacity, one stop solution for project mgmt.

2. Close interaction with customer on explain our project capabilities of providing complete

pumping solution with controls.

Weakness:

1. Project conversion time

Work on selected projects where GIN stands a chance.

2. High Price

Identifying vendors for local sourcing for accessories.

Opportunities:

1. Infrastructure investments by government

Identify potential project for Grundfos (EUROPE/WB aided Projects) & work with

consultants.

2. Stringent pollution controls norms.

Positioning our products / product line inline with requirement & work with authorities on

specification.

Threats:

1. Growing Local Players

Concentrate on selling more higher KW rating pumps.

2. International players becoming aggressive by providing entire solutions (ITT).

We should also concentrate more on providing solutions than products.

35

Total Pump Market -2010

Total Pump Market – 4500 cr

Served Market – 3400 cr

Pump Market in the year 2010

Project Cycle

36

3.9 PESTEL Analysis

ECONOMICAL

The inflation rate in India was recorded at 7.55 percent in May of 2012 an its remain to be sticky

FDI in Manufacturing, Service sectors, Construction Power and Pharmaceuticals

Rupee getting devalued

SOCIO CULTURAL

Urbanisation - Increasing trend

Lifestyle change- Increasing trend

Consumerism

Increase in Educational standard

TECHNOLOGICAL

Demand for Energy Efficient products

Demand for automation

Localisation of products (Cost effectiveness)

Development on renewable

JV on technology to meet local demand

POLITICAL

Policy paralysis

Political Instability

LEGAL

Stringent norms on waste disposal

Energy certifications (BEE)

Subsidy on renewables

Penalties on inefficient Industries for

power consumption.

ENVIRONMENTAL

Awareness on Global warming

Awareness on waste recyling

Increase in Green Buildings

Synergies between organisations to be environment friendly.

37

CHAPTER 4

BRANDING AND DEPARTMENTAL ACTIVITIES

38

4.1 BRANDING

The main objective of branding is to improve the long term business sustainability of the Grundfos

Group. This means that branding is an investment in: creating capital value, ensuring a platform for

future business growth and enabling on-going profitability. All this by building as much value as

possible into the corporate brand. The Branding process should be seen as both a defensive and an

offensive strategy.

Defensive in the respect that the good reputation and loyalty towards Grundfos particularly in some

business areas primarily in Europe should be kept intact. But also defensive in the sense that it

should be seen as a counteraction to increased purchasing power in the distribution chain and

amongst OEM-customers. On the other hand Brand Building is an aggressive step in the market to

pave the way for a more profitable business and a more wide-ranging business than it would be

possible without branding activities. Since the market overall is stagnating or growing very slowly

in core markets - branding should therefore be seen as an attempt to conquer market shares.

Grundfos is one of the world‟s leading pump manufacturers who originated in Denmark. From a

brand perspective, Groundfos has a firmly established Industry brand presence in Europe and

worldwide with more than 80 companies in over 55 countries. Grundfos is looking to expand to

Russia, India and Brazil, where they identified as potential markets fo their future

As with many Business-to-business (B2B) industry brands, Grundfos products may not be known

as a brand to the end consumer because they act as component supplier in the value chain to other

firms and projects. However, their B2B customers are ensured that 'the equipment is among the

absolute best in the market.', which seems to be their brand promise to their customers.

As an industrial brand Grundfos is seeking to build their reputation and trust with other firms in

many different countries. This means they have to identify not only what their customers want, but

also how they can best 'add value' to their offering. What constitutes as 'added value' is driven by

the national culture and custom of the host county.

'Value add' or 'value addition' in economic terms means that Grundfos is including monetary

benefits to its goods over the cost of production. In marketing the definition 'value add' is not

always defined as 'monetary value'. 'Value' can be given to customers for example through

warranties or through any other specific means of contract benefits.

39

Scandinavian brands in general are known for their distinct Western minimalist designs and their

very functional, forward thinking design. Although Scandinavian products are often driven by

efficiency, they are easy to use and pleasing to the eye. Grundfos engineering is based on these

principles and communicates these values.

The ongoing challenge for the branding of Grundfos will be to carry the promise of quality

(e.g. 'among the absolute best in the market.') to all its global markets in a consistent way that is

understood by the locals (e.g. : be>think>innovate).

4.2 Internal branding

It is of vital importance that we deliver the brand in our daily business, which means that customers

recognize the values we communicate in the performance, action and service we give the market.

To be able to do so, we must ensure that the meaning of the branding concept is clear to everybody

internally and that it is obvious what the values mean.This integration must be visible on all levels

of the organization from the overall corporate level down to each member of the staff.

We create this effect by ensuring on all levels:

1. Awareness about and commitment to the branding process and the necessity of it

2. That the values serve as realistic guidelines

3. Results are made visible

4. Recognition is given to those "living the brand".

In order to fulfill the expectations that we create for our customers, we have to make sure that our

internal branding process runs non-stop. The notion of creating extended value around the physical

product has to be clear - and we must be willing and able to live out the brand on all levels -

corporate, business unit and functional.

Employees

Branding only works when each employee shows understanding and willingness towards the basic

qualities of the branding concept.

40

Activities involve:

Employee satisfaction survey

Employee development interview

Employee 3 months' interview

Employee recognition.

Brand Hexagon

41

4.3 BRANDING TOOLS:

Customers' ability to recall and recognize the brand under different conditions and link to the brand

name, logo, jingles and so on to certain associations in memory. Critical importance since

Customers will not consider your brand if they are not aware of it.

Brand awareness

It is the probability that consumers are familiar about the life and availability of the product. It is the

degree to which consumers precisely associate the brand with the specific product.It is measured as

ratio of niche market that has former knowledge of brand. Brand awareness includes both brand

recognition as well as brand recall.

Grundfos India Vs. Brand awareness in the Indian market

Building brand awareness in the Indian market became a key role where all team members were

involved in recently, the power of word of a mouth, getting through to existing and probable future

clients using digital mediums which became the trend of business environments with least cost.

During the last few months, Grundfos India adopted and implemented a strategy of spreading the

word and not only building a brand awareness network but also keeping it well maintained using the

prevailing marketing trend now that is Social media networking.

Social Media Networking creates opportunities to:

Adds a human element to your business or product

Engage with customers directly but informally while hanging out online

It is fun and simple to do once you know how

Get traffic to your website

Create buzz around your website, product or service or brand

Create inbound links to your website for the search engine ranking benefit

Creates loyalty and trust.

42

TOOLS:

Facebook:

Facebook platform can be used in business environments for networking, locating business leads, as

a method of intercompany communication, as a platform to organize and track events and as a

medium to provide updates, due to its popularity, Facebook could be used to promote a new

product, service or performance by word of mouth through “friends” within a social network.

On April 2012 Grundfos India started to get use of the popular social platform creating a page fed

with all recent events took place with photos, videos and topics related to water issues. A rich

content of an eye catchy designed welcoming page to attract visitors to join, a continuous updates

took and still taking place on new issues which extended to sharing all with our fans such as

pressing local events in India.

Facebook fan page also plans to include in future Grundfos India website, you tube official channel

and LinkedIn engineers group which all are subject to change upon future plans.Fan page created an

informal communication channel direct to Grundfos India using our page‟s wall were all posts are

displayed and discussed which is something we‟ve targeted since page creation is.

YOUTUBE

During 2007 Grundfos India started a YouTube official channel to share all ranges from

professional levels of media, the idea behind building the channel is to provide an authorized

centralized source of corporate videos that extends to events, activities we participate in.

YouTube page also has information about the company history, website, recent activities and

keyword tags which is a branding word spread to whoever might even search YouTube randomly.

Grundfos India is not only posting videos on YouTube but also conducting activities of

subscriptions to other corporates/ individuals involved in the field of technology, water, engineering

and environment within India and abroad which created new subscriptions both sides.

The channel is an effective traffic generator to the website, FB fan page and to other Grundfos

channels on YouTube, all connected to present one big network of media which means Grundfos

India visitor is basically a Grundfos visitor.

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Mailer Campaign

Mailer campaign is essential to any organisation aiming for a fair share of the market place.

Through Globase email mailer campaign over direct mailers can be appreciated by the fact that it

reaches thousands of prospects almost immediately and at a very low cost of production. The ROI is

quite high in these types of mailer campaigns. The success rate of such mailer campaign is also

measurable.

Microsite:

A microsite (sometimes called a marketing site) is a site with a specific content mission, e.g., it

focuses on getting leads for one special product or service. Such websites are often built on

keyword rich domain names. Grundfos build many micro or marketing sites because more sites

mean more searchable content and this means more chances to get found.They are having separate

websites for commercial building services, fire fighting systems, etc..

Apple Store

Grundfos Pumps India, for the first time, reaches its customers through GO CAPS, a mobile

solution on the GO, for the professionals.They are always trying to simplify the way to

communicate with their stakeholders. The objective has been to put the power of choice and

selection in the hands of customers and enable them to take informed decisions with all the required

data. We feel confident that GO CAPS will go down well with customers - existing and future. GO

CAPS saves time on pump control, reporting and data collection with the mobile platform and it

also provides, live pump data feeds, easy to follow-up tips and guidance. It works with all the

Grundfos e-pumps and communicates both via radio & infrared technology.

Mass Media:

Grundfos reaches millions of people through mass media. They use radio as the medium and ads are

coming up in radio city 91.1 in 16 cities and 8 times a day for about four months. For that they

spent about 52 lakhs.

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4.4 Branding Promotions

The Incredible Indian Pump Yatra is a mobile exhibition which aims to showcase,

demonstrate, communicate and educate customers about the industrial range of Grundfos pumps by

visiting various industrial area. This innovative Pumps on Wheels will travel over 50 cities across

India .Key people at HVAC OEM tell you how they support and add value to all phases of your

business.

Grundfos India has inaugurated its second Authorized Service centre at Bangalore under

their distributor, M/s.BisineerSales & Marketing on 3rd September 2010.

Customer Support

Grundfos Pumps India Pvt. Ltd, headquartered in Chennai, with sales offices at various

locations - Delhi, Mumbai, Kolkatta, Bangalore, Pune, Cochin, Hyderabad, Nagpur and Vizag, has

a wider network of Dealers/Distributors and POS Dealers who have been established to offer sales

and service support to all our customers. At Grundfos, Our main focus and emphasis is on

professional After-Sales- Support providing round the clock service to all our customers. The

support includes all but not limited to providing technical advice, maintenance of pumps supplied

by Grundfos either directly or through our Dealers, Warranty services and Non-Warranty services.

After-Sales-Service support has been re-defined and re-structured in order that all our Service

personnel are trained to be effective in attending the complaints and to be proactive in their

approach. Chennai HQ has its own warehouse and assembly facilities that include state-of-the-art

testing facilities, workshop for repair of all the pumps that Grundfos sells in India and around the

world. The facilities also have full fledged training room and all our Service partners are included in

the monthly training program that covers hands-on training on all the pumps that Grundfos sell and

service in India.As we move towards more customer focused approach, we also conduct training in-

house at our customer premises and the training program is tailor made to suit the specific needs of

every individual customer. As Grundfos had been handling most of the complaints through our

Dealers/Distributors over the past few years since inception, we had received a few complaints in

the past with regard to handling of complaints by our service partners. This has prompted us to

establish direct contact with all our customers in order that we get to know all your past experiences

to enable us correct ourselves and offer a more professional service and improve upon further. Sure,

this is not an exercise from Grundfos to conduct a pinpointing exercise but a transparent approach

to get in direct touch with all our customers and also to correct us for positive and fruitful

partnerships in the future. Grundfos has many training programs planned in the coming months and

45

we shall be pleased to receive your interest in attending the training programs and Grundfos shall

ensure that these trainings are conducted professionally at your premises or at our facilities

at Chennai to suityour needs.We also attach here with the addresses of our Grundfos Authorized

Service Centers in the major cities of Delhi, Mumbai and Bangalore apart from Chennai with

contact focal points in each of these offices.We trust we have certainly made a good beginning and

we solicit your kind co-operation in making this venture a great success and moremutual beneficial

partnerships in the forthcoming years.

4.5 SALES

INTERNAL SALES/ DEPARTMENT STRUCTURE:

CEO

SENIOR ENGG - CSU

SENIOR EXEC - CSU

ENGG - CSU

EXEC - CSU

JUNIOR ENGG - CSU

OFFICER - CSU

SENIOR MANAGER - CSU

46

Prime functions of internal sales:

Special pricing and best price for pumps.

Post sales (Order Execution).

Delivery commitment to customers.

Order execution:

Order receipt.

Booking order in ERP.

Sending order acceptance to the customers.

Follow-up for clearance cum payment.

Invoice to customers.

Maintaining delivery performance.

Pre sales:

Pricing and delivery for required specifications in case of special pumps.

Assisting the external sales for documentation for tender preparation.

Pricing is done for the products, this pricing is done based on the projects, competition

involved, expected price of the customers, commission to the distributors and finally

concerned RM recommendation.

After collecting all the details, analysis is done on the order value and improvement to GIN

future business and base CTR as per pricing guidelines.

47

FLOW CHART FOR ORDER PROCESSING

Order from Customers

Booking of Orders

Order Acceptance to customers

(Information of readiness of materials to customers)

Getting Clearance/Payment from

Customers

Stock Withdrawal & Generate Invoice

Dispatch of Materials

Delivery to the customers

48

ORDER EXECUTION

Each item order should have the following 4 details:

Part code:

A unique 8 digit alphanumeric code. This code is set by Grundfos Denmark.

Description:

It represents the technical part of the items, which states the nature and type of pumps,

concerned voltage and other details.

Quantity:

The number of items that have been placed for order.

Price:

The concerned list price per piece.

Steps involved in Order Execution:

1. Order from Customers

Purchase order from distributors/ industrial dealers/ POS dealers is received through

mail, courier or by fax.

Purchase order will be standard one.

Purchase order has PO date, terms of payment, part no, description etc.

2. Booking order in ERP

Order is booked.

3. Order Acceptance to Customers:

Performa invoice is to be spooled in the notepad in text format, from ERP system and

forwarded as order acknowledgement to dealers.

This Performa Invoice gives the details about delivery dates, which enables the dealers to

plan for clearance and payments.

4. Getting Clearance/ Payment from customers

Follow-up is done with the customers for clearance.

Clearance received with payments for items readily are invoiced with discount structure as

per the payment terms.

49

Pricing and storing of invoices:

A record of the order of the customers that has been acknowledged and booked in is called

Performa Invoice. The Performa Invoice should be filled in a proper manner. Consignee name and

address has to be taken care. Enter the sales order in document. It is stored as text format.

5. Stock Withdrawal & Generate invoice:

Enter stock withdrawal from. Enter the order number and delivery date. Line, corresponding part

numbers, quantities with their prices will arrive in the screen. Enter the line no, which has to be dispatched.

Perform the same operation for dispatching more number of quantities. After withdrawal of stocks, enter into

“Print delivery Invoices” and give the sale order number and generate the invoice.

6. Dispatch of materials:

After the stock withdrawal the copy of the invoice is sent to the customers, and the

respective materials are ready to dispatch.

7. Maintaining Delivery Performance:

The Performa Invoice is maintained to ensure the delivery dates committed.

50

LIST OF DEALERS, DISTRIBUTORS

Some of the Dealers for Grundfos India are:

1. A.K.Engineers.

2. Bee Gee Associates.

3. Asian Trading.

4. Empire Tube wells.

5. Teach Pumps.

Some of the Distributors for Grundfos India are:

1. BI Marketing & Service Pvt Ltd.

2. Siddhart Electricals.

3. Sukruth Agencies.

4. Revolve Engineers.

5. Supertech Engineering & Trade Pvt Ltd.

6. Multitech Hydro Systems.

7. Union Enterprise Pvt Ltd.

8. Jay Pumps Pvt Ltd.

Some of the OEM‟S of Grundfos India are:

1. Ion Exchange.

2. Thermax Ltd.

3. aquatech industries.

4. Rochem

5. Ace Manufacturing.

6. Electronica machine Tools.

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4.6 SERVICE DEPARTMENT:

Timely service for scheduled maintenance, fast scheduled for “none scheduled” stoppages. This is

the essence of service agreement Grundfos is connected to. Whether it is bottom of the tank or

water utility plant much attention is given to pumps.

Grundfos after-sales service includes advice on how to carry out cost-effective preventive

maintenance so that costly downtime is kept to a minimum and scheduled favorably. Moreover,

maximum use can be made of the time when a pump is taken out of action for servicing.

GRUNDFOS India has set up a service and training in order to cater to the local Indian market, in

keeping with its global policy of being close to customer. The service center has state of the art

service equipment and test beds. The training center is fully equipped to hold hands-on training

simultaneously for around 100 people per session. This ensures that all end-users, distributors, sales

engineers, service engineers, technicians as well as the company personnel are thoroughly trained in

the use, operation and maintenance of Grundfos pumps. Basically, the service department performs

the following tasks in a sequence to avoid a trouble free experience with GRUNDFOS, they are:

a) Erection.

b) Commissioning.

c) Troubleshooting.

d) Over hauling.

Grundfos India Training Center has very successfully trained around 700 persons including its own

employees, engineers & technicians of distributors, dealers, OEMs and end users. Service

Franchisees are being trained to look after service wherever Grundfos Pumps have been installed.

Also- service centers are being set up in major cities in India so that clients can be served in the

shortest time possible.

52

SERVICE DEPARTMENT STRUCTURE:

CEO

SR MANAGER – SERVICE AND TRAINING

MANAGER TRAINING

SR. ENGG. SERVICE PROJECT

EXECUTIVE

TRAINING

EXEC SERVICE

COORDINATOR

DEPUTY MANAGER SERVICE

ASST MANAGER SERVICE-

BANGALORE

SR. ENGG.SERVICE

WEST

ENGG. SERVICE

EAST

ENGG SERVICE

GUJARAT

ENGG SERVICE

BANGALORE

ENGG SERVICE

COIMBATORE

ENGG SERVICE

MALDIVES

ENGG SERVICE

ROURKELA

SR. MANAGER CONTROL &

SERVICE

EXEC SERVICE

COORDINATOR

OFFICER SERVICE

CHENNAI

OFFICER CUSTOMER

SERVICE-DELHI

SR.SERVICE

TECHNICIAN

SERVICE

TECHNICIAN

53

The Service department in Grundfos India has segregated their workflow in the following ways

After sales service.

Training.

Technical Service.

Energy audit.

4.7 AFTER SALES SERVICE:

After sales service is the service provided to the customers after the pump is commissioned in the

end user‟s place. Once the pump is commissioned then automatically the after sales service role will

be taken by the service department.

Major Roles and Responsibilities of the service department:

The resolution time of the pump failures has to be given priority.

The customer‟s complaints have to be resolved within a stipulated time.

Preventing the pump failures by making regular health checkups in the end user‟s site.

Proper training should be given to the channel partners and to the customers to ensure that

they can individually install the pump and maintain them.

Assisting the customers in the installation and commissioning of the pumps.

The pumps are repaired at various authorized service centers within the stipulated time.

Planning the stock for spares and to maintain the right spares to service various pumps.

Failure analysis and preventive action plan should be made for various pumps.

To maintaining the customer complaint system and the repair register.

Conducting energy audit.

Credit notes/debit notes preparation.

Creating FOC‟s for the material, which is sent under warranty replacements, commercial

goodwill, warranty goodwill, transit damages.

Various measurements are analyzed on monthly basis and the monthly reports are created

based on the results.

Reducing the pump failures by proactive visits and training.

Ensuring our channel partners to provide good customer service.

54

The dealers and distributors are asked to maintain the spares stock and proper tools to

service the customers.

The checklists have to be followed during servicing/repairs.

Training and skill up gradation of GIN service personnel.

Once the pump is repaired the service report has to be sent to the customers.

4.8 SUPPLY CHAIN MANAGEMENT

Supply chain management ( SCM ) is the term used to describe the management of the flow of

materials, information, and funds across the entire supply chain, from suppliers to component

producers to final assemblers to distribution (warehouses and retailers), and ultimately to the

consumer. In fact, it often includes after-sales service and returns or recycling. SCM typically

involves coordination of information and materials among multiple firms. It pertains to both

qualitative and quantitative aspects of facility location decisions. This includes models of facility

location, geographic information systems (GIS), country differences, taxes and duties,

transportation costs associated with certain locations, and government incentives Exchange rate

issues fall in this category, as do economies and diseconomies of scale and scope. Also it looks after

all issues related to the flow of goods through the supply chain, including transportation,

warehousing, and material handling.

Supply chain management is subdivided in 3 categories:

1. PLANNING

2. PURCHASE

3. LOGISTIC

55

SUPPLY CHAIN MANAGEMENT (SCM) STRUCTURE:

PURCHASE

PLANNING LOGISTICS

SUPPLY CHAIN MANAGER

BRIAN RAMMEKJAER

ASST MANAGER

PLANNING

SENIOR ENGG

VENDOR

DEVELOPMENT

SENIOR ENGG

PURCHASE

SENIOR ENGG

LOGISTICS

COORDINATOR

LOGISTICS

SR. TECHNICIANS

TECHNICIANS

SENIOR EXEC

PLANNING

ENGG PLANNING

CEO – RANGANATH.N.K

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4.9 LOGISTICS

The process of getting goods to customers has traditionally been called physical

distribution. The physical distribution starts at the factory. Managers choose a set of warehouses

and transportation carriers that will deliver the goods to the final destinations in the desired time or

at the lowest total cost. Recently, physical distribution has been expanded into the border concept of

supply chain management. Logistics involves planning, implementing, and controlling the physical

flow of materials and final goods from points of origin to points of use to meet customer‟s

requirements at a profit.

LOGISTICS OBJECTIVES

The objective of logistics is “getting the right goods to the right places at the right time”.

In Grundfos India we follow two types of logistics they are:

Inbound Logistics

Outbound Logistics

In GIN push chain manufacturing is undergone and the orders are made only on

purchase. The planning department will place the orders and based on that productivity undergoes.

PLANNING

Effective utilization of man, material and time is known as planning. The planning which it

plays a major function in all the companies. It‟s the main concept in all industries, which is used to

plan the materials for making the complete product. Generally we have to forecast the materials that

it is needed for outgoing and forthcoming process.

In Grundfos, planning is categorized as follows

Planning

Material planning Production Planning

Material planning is a methodology and system used to plan and manage manufacturing operations

that is needed for assembly.

Production planning is a process of plan and control the manufacturing activities of a company.

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Gin Planning Process:

Internal sales

Plan & order placed

OC

Invoice & details

Clearing

Customs

Logistics

GRN

The internal sales department places the order from customers and they commit the delivery

according with the planning department.

Then planning department views the materials that are to be ordered and they place the order

to the vendor/ supplier.

The supplier confirms the order and sends the order conformation date through mail.

For sea freight shipments original invoice and packing list are required along with bill of

lading. Original Bill of Lading is not required if it is surrendered at the time of shipment and

original is required if it is not surrendered to clear the material from port by clearing agent.

In case of airfreight copies of the Air Way Bill as well as the copies of invoice and packing

list are sufficient.

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Shipment received through sea or Air freight based on the requirement is either stocked in

bonded warehouse.

Whenever the process is over and then the material is ready to dispatch means, then the

corresponding mail is send to internal sales department

PRODUCTION PLANNING

Production planning is a process of producing a specification of the manufacturing

operations to be performed by different functions and workstations over a particular time period.

Production scheduling depends on the factor such as availability of materials, customer delivery

requirements and maintenance schedules. It is applicable to all products that is assembled and tested

here.

Planning

Assembly plan

Production

Logistics

Stock Withdrawal

Assembled

The planning is done for the material that is to be assembled and ready for delivery.

Then the planning schedule is given to the production department for assembly process.

Generally the plan must be given in advance to the production department i.e, day before

afternoon.

Then the production department makes the bill of material for respective order.

Based on BOM, the materials are issued to the assembly section from the logistics

department.

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Before assembling, parent items are broken into child item and corresponding material is

entered in and then the assembly report is run based on then the stocks are withdrawal and then the

materials that are needed for assembly is assembled.

Assembly is based on the delivery dates of the customers and if there is any low lead- time

occurs for an order. We have to assemble the components based on the priority level of the

customers.

The organization maintains the stock order for certain products e.g. CH, JP boosters for

certain products if follows back to back ordering e.g. large CR pumps.

First the orders received are checked for availability in ex stock. The pumps are spares that

are not available in stock are consolidated and keyed in the purchase order assigned for the week

and sent to GSI (supplier).

Hence the process is cyclic for the assembled production.

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FLOW CHART FOR PRODUCTION PLANNING

INTERNAL SALES INDENT

ASSEMBLY PLAN

WORK ORDER

PRODUCTION

MATERIALS ISSUED (LOGISTICS)

BOM

ASSY/ TESTING

ROUTE CARD

UPDATE IN SCALA

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4.10 PURCHASE

Purchase plays a vital role in all the companies that it is used to procure the materials, which

is required for the process of products and non-products. Generally the order is placed to procure

the materials which is classified as follows

Purchase

Direct order Indirect Order

(Our Products) (Other than our products)

Direct order:

The order that is raised is used to procure the materials needed for the product, which is to be

finished is known as direct order.

Mainly this order is fully ordered for the company products. For example pump assessable

components / materials i.e., manifold, electrical items (Drive) etc.

Indirect order:

The order that is raised in is used to procure the materials other than the product i.e., fixed assets is

known as indirect order.

Generally all the orders are placed to the vendors, and then they send the order confirmation to us.

And also they send the invoices for the materials that are ordered by us. From those details we

provide the payments for the ordered items to our vendors and then they clear the materials to us.

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FLOW CHART FOR MATERIAL PLANNING

Material Needed & Plan

Order raised to vendor

Order conformation

Dispatch Details

Delivery

Logistics

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4.11 VALUE CHAIN

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CHAPTER 5

LEARNINGS AND CONCLUSION

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5.1 LEARNINGS:

These are the following findings revealed from the study:

- Bringing in high-tech, energy efficient and durable products

- Continuously educating decision-making authorities

- Never cutting price at the cost of quality

- Starting with the top end of the market and then targeting the mid-segment

- Never diluting the brand value

- Leveraging the technological superiority to the hilt

- GIN has a big scope for a giant leap with the right products.

- Value addition to end user supported by innovation- key focus area

- In DBS they are consistently growing (20 – 25%). Their major share is from

premium segment only. By having products for B segment with Dual Brand

strategy, localisation and acquisition there is a potential to grow further significantly

(30-35%).

- CBS growth has been significant (35-40%) except 2009 (-3%). The margins are less

compared to other segments, local assembly/production of Horizontal Split Case &

End Suction pumps will help to improve margins.

- Industry growth has been consistent (30-35%) except 2009 (-1%). Their major share

is from CR and machine tool pumps through Boiler, water treatment, Industrial

washing and machine tool OEMs. This segment is becoming stagnant.

- Focus on other industries by adding new products with appropriate localisation from

peerless, Standart and Hilge from the group (acquired companies ) will facilitate

sustaining this segment growth.

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- In Industry and CBS we are dominant player in CR, Hydro, HVAC but need to

improve fire & WW.

- Wastewater segment consistently growing (35-40%), with focus on new products

(Mixers, Flow makers and GIN Flex) & with Stringent Govt. regulations growth rate

is expected to increase.

- They are the dominant players in CBS and Industry Segment.

- They acquired so many companies and so far they not mixed up with their brand and

selling in their own name.

- Grundfos pumps are maintenance-free

- Being in premium segment, they never compromise on price or quality.

- They establish their superiority on energy efficiency, payback time, technology and

durability.

- Grundfos pump is one of the leading pumps manufacturers in the world.

- The company exports the products to many countries

- They are doing emotional branding to pull customers..

- The total number employees in Grundfos are 256.

- The company has a well organized and coordinated organizational structure.

- The company‟s treat the employee‟s very well.

- The company ensures high quality to all its products.

- The company always tries to maintain good customer relationship.

- The company building is eco friendly and green building.

- Grundfos responses quickly to their customer needs and services.

- Being innovated in nature, Grundfos is updated in technology.

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- They integrate their work through management information system.

- They gave credit period of 60days for bulk orders.

- They brand their product using social media an mass media tools.

- GIN using forward contract tools for their hedging.

- They operate on different verticals orderly through their well planned strategy.

- Collaborative environment with lots of emphasis on training and development.

Access to the the grundfos world and information.

- Constantly communicate with their customers and stakeholders.

- Established trustworthy relationship and act as responsible supplier management.

- They minimizing our environmental footprint, which reduces costs and preserves the

environment as a sound basis for achieving business success in the long run.

- They have innovative, enthusiastic and skilled workforce

- They provide user friendly supporting solution.

- Since they are building their products on their own, relying on others for ependant is

very less.

- They are linking CRM system with customer database

- They are good sales team and sales presentation are made for customers with sound

knowledge.

- Pricing department place important role when it comes to negotiating.

- Senior peoples in organization gather every October to discuss sales forecast for their

respective countries and separate monthly targets are setuped to review periodically.

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How are they Reaching the target Customers?

AWARENESS:

Grundfos launches mobile campaign as part of creating awareness and aiming high for the ground

presence. Through experiential marketing they developed this and give exposure to lot of sales

people. So far they covered 680+ industries, 2853 prospect leads and had 32000 customer

impressions through this activity. Through this they attempt to engage customers and initiate

dialogues, enticing them to draw close to the brand and build long term associations.

They also using several other tools like mass media, social media like facebook, google plus and

through word of mouth marketing to create awareness among the people. Thus Grundfos has well

established its brand in the community.

Grundfos also provides energy saving and efficient pumps to their customers. Thus it will be helpful

for them in long run and also saves our energy resources. They are well known for their innovation.

They try to simply the operation of pump activity. They are also training the people how to use it

well?.

Grundfos have brought a paradigm shift in Indian pump Industry by introducing its stainless steel

pumps 10 years ago and it continue to lead the way in promoting energy efficient and

environmentally friendly pumps which are truly world class. They are becoming associate sponsors

for several expos and trade events.

Awareness

Dialogues

Relationship Building

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DIALOGUES:

Dialogue campaigns with the purpose of creating awareness and commitment to the Grundfos

website and electronic newsletter. They created lot of e-learning modules and product brochures.

They also used some of the viral films. Thus dialogues strengthen both parties and is use to create

synergy. Grundfos not only says about values, but also lives them out.They also taking active role

in social responsibility. Their Sales team had well trained people to deliver presentations to the

industries. In Grundfos they do what they say, and they say what they do. The sales people are

knowledge persons and able to influence people. They delivering premium quality in everything

they do. For them Profit is a means to growth – not a goal in itself.

RELATIONSHIP BUILDING

Grundfos keeps contact with their customers through their separate database system, they keep

updating their customers on their new products and launches. They have separate helpdesk

number for servicing and getting feedback from them to improve their area.They using various

metrics for tracking the responses from their customers and through that they plan the strategy

according to that.

Since 2002 their core values of BE-THINK-INNOVATE have been supplemented by the principles

in the UN‟s Global Compact. Together they are the basis of the holistic approach to Corporate

Social Responsibility (CSR) that you‟ll meet at Grundfos. In 2008 Grundfos made a strategy for

CSR until 2014. Plans of action have been made for five main areas: Excellent CSR Performance,

climate, dialogue with partners, well founded business ethics and access to water for the poor.

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5.2 Conclusion:

Pumps play a dominant role in the sectors like agriculture, production of oil and natural gas,

petroleum refining, petrochemicals, power generation, domestic and household utilities, etc, and

contribute a major part in nation‟s economy

Pump is not a new concept in the Indian industry. In fact, the „Pichkari‟ which Lord Lrishna and

his playmates used for splashing coloured water on Gopies, can be termed as the oldest reference to

a pump concept, especially of the reciprocating plunger type. Thus, pumps must be an Indian

invention, but commercial production of pumps in India, as contemporarily understood, is quoted to

be way back in the first decade of twentieth century..

The resilience exhibited by the Indian economy, in the midst of the turmoil in South Eastern

economics and politically motivated economic sanctions, has underscored the basic growth-

prospective characteristics of the Indian economy. That should be a strong enough base to reason

that except for the place of the growth rate, growth by itself will be always there. Since pumps are

needed in every sector of the economy, the Indian pump industry will always grow.

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CHAPTER 6

APPENDIX

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6.1 ACRONYMS

GIN – Grundfos India

POS - Point of Sales

CBS - Commercial Building Services

DBS - Domestic Building Services

RM – Regional Manager

PO – Purchase Order

OEM – Original Equipment Manufacturer

ERP – Enterprise Resource Planning

PDCA Cycle– Plan Do Check Act cycle

HVAC – Heating Ventilation & Air Conditioning

BOM – Bill of Materials

AWB – Air Way Bill

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Bibliography

> www.in.grundfos.com

> www.thinkingbuildinguniverse.com

> Business Marketing – Havaldar - Tata McGraw-Hill Education, 01-May-2010

http://books.google.co.in/books/about/Business_Marketing_Text_Cases_3E.html?id=AaiDAI4a7wYC&redir

_esc=y

> www.youtube.com/grundfosindia

> www.youtube.com/branding

> www.brandingcommunity.com

> Pumps India – The complete magazine about pump industry

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