OBJECTIVE OF STUDY

The main objective of our study is to do a market research of Products manufactured by Escorts Construction Equipment Ltd. This research will be basically on these products:1. Backhoe loader 2. Pick & carry cranes This also includes:1. To study the consumer perception after using these products. 2. To study the strategies followed by organisation to promote their products. 3. To make SWOT analysis of ECEL.

ESCORTS

E:- Ensures reliability and inbuilt quality S:- Save energy in all fronts C:- Cultivate safe habits R:- Reduce wastage T:- Take care of machines and materials S:- Strive for excellence

ESCORTS
COMPANY PROFILE
The Escorts group, with Escorts Ltd as its flagship company in among Indias leading corporations operating in diverse fields of AgricultureMachinery, Healthcare, Construction & material handling equipment, Automotive and Railway ancillaries information technology and Financial services. The group has 15 modern manufacturing facilities and an extensive marketing network spread across the country. The single word completely describes the character philosophy and success of the company which grow from a small beginning to one of the every changing dimensions. From its inception Escorts has firmly believed that success inspiring on being close to the customer thus every corporate Endeavour address itself to end user adjusting to ever changing market. At every step of the way Escorts had inducted the latest technology by forming alliances with worlds most advanced engineering. And electronic companies, constantly adapting technology according to Indias need and situation. At Escorts, there are many dimensions to a corporations role in society. Escorts is fully aware that the total well being of the society in which it operates is of critical importance to the prosperity and growth of business. As a responsible corporate citizen, Escorts has not only endeavored to encourage civic improvements, better health and education but also protect environment and natural resources. Social conscience of Escorts is mirrored in the establishment of community outreach and rural development programme. The company hs been running facilities such as charitable employees medical assistance and pension scheme, etc. the rural development programme, initiated by the company in

1977, has resulted in a tangible improvement in the quality of lives of thousands of people residing in 62 villages that encompass this programme. The objective of the community outreach programme is to redress the imbalance by providing the cardiac care to deprived and underprivileged across several states including Jammu & Kashmir. For nearly five decades, Escorts was merely one of Indias largest engineering companies, a prime mover on the industrial front, at every stage introducing products and technologies that helped to take country forward in key areas. The group has continued to grow and thrive on its ability to diversify and manage change. In keeping with the changed scenario, Escorts has made a smooth foray in the service sectors of Healthcare and cellular telephony. These two together with Agri-machinery business should catapult Escorts to find a rightful place in the global economy in 21th century.

ESCORTS
HISTORICAL BACKGROUND:The genesis of Escorts goes back to 1944 when two brothers, Mr. H. P. Nanda and Mr. Yudi Nanda, launched a small agency house, Escorts Agents Ltd. in Lahore. Over the years, Escorts has surged ahead and evolved into one of India's largest conglomerates. In this journey of six decades, Escorts has had the privilege of being associated with some of the world leaders in the engineering manufacturing space like Minneapolis Moline, Massey Ferguson, Goetze, Mahle, URSUS, CEKOP, Ford Motor Company, J C Bamford Excavators, Yamaha, Claas, Carraro, Lucky Goldstar, First Pacific Company, Hughes Communications, Jeumont Schneider, Dynapac . These valued relationships be it technological or marketing, are our highly cherished experiences treasures, which have helped us inculcate best in class manufacturing practices and to emerge as a technologically independent world class engineering organization. 1944- Launch of Escorts (Agents) Ltd. 1948- Pioneered farm mechanization in the country by launching Escorts Agricultural Machines Limited, with a franchise from the U.S. based Minneapolis Moline, for marketing tractors, implements, engines & other farm equipment. 1948- Launch of Escorts (Agriculture and Machines) Ltd. 1949 - Franchise of Massey Ferguson tractors for northern India 1951 - Escorts established Indias first private Institute of Farm Mechanisation at Delhi.

1953 -Escorts (Agents) Ltd. and Escorts (Agriculture and Machines) Ltd. merged to form Escorts Agents Pvt. Ltd. 1954 - 1st industrial venture of Escorts to manufacture piston rings in collaboration with Goetze of Germany, in an era when joint ventures of Indian firms with foreign companies were virtually unheard of. 1958 - Started importing Massey Ferguson tractors from Yugoslavia for marketing the same in India. 1959 - Collaboration with Mahle of Germany to manufacture pistons. Soon, Escorts became the largest producer of piston assemblies in India. 1960 - Set up of Escorts Limited 1961- Setting up of manufacturing base at Faridabad for manufacture of tractors in collaboration with URSUS of Poland and 50% indigenous components. Launch of Escort brand of tractors. Collaboration with CEKOP of Poland for manufacture of motorcycles and scooters. Escorts moves into high gear by nurturing the two wheeler culture. The first Rajdoot motorcycle rolls off the assembly line. 1969 - Escorts Tractors Limited was born. A technical and financial joint venture with the global giant Ford Motor Company, USA, to manufacture Ford tractors in India. The years ahead saw Escorts grow as the largest tractor manufacturer in India. Escorts Institute of Farm Mechanization (EIFM) established at Bangalore. Escorts Employees Ancillaries Ltd. (EEAL), a unique venture in industrial democracy comes into being. 1971 - 1st February, the first tractor FORD 3000 rolled out of the factory. Escorts diversifies and starts manufacturing construction equipment. 1974 - Crossing national boundaries, Escorts exports for the first time. After winning a global tender, 400 tractors were exported to Afghanistan, which was

perhaps the world's largest ever airlift of tractors. 1976 - FORD 3600, an advancement in Farm Mechanisation launched. Trial production of in-plant manufacturing of engine parts (Block & Head). 1977 - Escorts enters the world of self-developed technology by setting up its first independent R&D Center. Escorts Scientific Research Centre marked its beginning at Faridabad by developing its own Engines for E-27 and E-37. Due to constant technology absorption, indigenisation level touched 72% for FORD tractors. 2nd plant at Bangalore for manufacturing piston assemblies was set up.

1979 - Collaboration with JCB Excavators Ltd., UK for manufacture of excavators. 1980 - Foray into healthcare, Escorts Hospital and Research Center set up in Faridabad. 1983 - Escorts Tractors Limited (ETL) established a state-of-the-art research and development centre to spearhead newer breakthroughs in Farm Mechanisation and to maintain industry leadership. Line concept introduced for engine block machining. 11,000 ton floating dry-dock Escorts I launched. 1984 - JV Escorts - Yamaha to manufacture motorcycles 1984 - Signing of agreement with the Japanese bike giant Yamaha to manufacture motorcycles with Yamaha technology. Collaboration with Jeumont Schneider of France to manufacture EPABX systems Collaboration with Dynapac of Sweden to manufacture vibratory road compactors. 1985 - Escorts Tractors Limited (ETL) offered its first Bonus Issue (1:1). 1988 - Escorts Heart Institute and Research Centre (EHIRC), a world class cardiac care facility launched in New Delhi. 1989 - Joint Venture with Claas of Germany to manufacture harvester combines.
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1990-91 - First Public Issue in February 1991, over-subscribed four times. Shares listed on Delhi and Bombay Stock Exchanges. 1993 - FORD 3620 tractor launched. 1996 - Disengagement of joint venture collaboration with New Holland and launch of FARMTRAC Tractor. 1997 - Joint Venture with Carraro of Italy for manufacturing and marketing of transmission and axles. Joint Venture with First Pacific Company of Hong Kong - Escotel Mobile Communications. 1998 - POWERTRAC series of tractors launched. MoU was signed with Long Manufacturing Company, USA for setting up a Joint Venture in USA. 1999 - MoU for Joint Venture with a Polish Company POL-MOT was signed for assembly, manufacturing and marketing of Farm Machinery. 2004 - Divested Escotel Mobile Telecommunications to Idea Cellular TS16949 certification for Agri Machinery Group. 2005 Divested Escorts Heart Institute and Research Centre (EHIRC) to Fortis Healthcare. 2006 - Divested in Carraro India Ltd. Set up new manufacturing facility in Rudrapur for manufacture of new range of railway equipment.

The Escorts Symbol

The Escorts symbol means more than a seen by the eye. It has been prepared with certain objectives in mind and is symbolic in more than one way. The philosophy behind Escorts and E in the Escorts is Enterprise. The Hexagon is a symbol of productivity, precision when interposed as a nut. It symbolizes a craftsmanship, and mending productivity. The sprains superimposed of the Hexagon represent the workers and the people of the Escorts. This forms the letter E the first of Escorts a company even on the more changing unveiling the future.

ORGANIZATIONAL STRUCTURE

Escorts Limited

CHAIRMAN & MANAGING DIRECTOR Mr. RAJAN NANDA EXECUTIVE DIRECTOR & CHIEF OPERATING OFFICER Mr. NIKHIL NANDA DIRECTORS Mr. S.C. BHARGAV Dr. S.A. DAVE Prof. & Dr. M.G.K. MENON Dr. P.S. PRITAM VICE PRESIDENT-LAW & CO.SECRETARY Mr. G.B. MATHUR

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ESCORTS GROUP OF COMPANIES

AGRI-MACHINERY
ESCORTS Ltd. CARRARO INDIA Ltd. LONG AGRIBUSINESS LLC POL MOL ESCORTS SPOIKA ZOO

AUTO & RAILWAY COMPONENTS

ESCORTS Ltd.

ECINFORMATION & TECHNOLOGY

ISERVINDIA SOLUTIONS Ltd. ESCOSOFT TECHNOLOGIES Ltd. AUTOMATRIXINDIA.COM CELLNEXT SOLUTIONS Ltd. CA ESCOSOFT Pvt. Ltd.

HEALTH CARE
ESCORTS HEART INSTITUTE & RESEARCH CENTRE Ltd. ESCORTS HOSPITAL & RESEARCH CENTRE Ltd.

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CONSTRUCTION AND MATERIAL HANDLING EQUIPMENT

ESCORTS CONSTRUCTION EQUIPMENT Ltd.

FINANCIAL SERVICES
ESCORTS FINANCE Ltd.

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COMPANY AREAS OF SERVICES

AUTO COMPONENTS

Tractors
Escorts manufactures a wide range of tractors, automotive components, railway equipment and construction & material handling equipment. The group have several business units that manufacture a wide range of tractors under the brand names Escort, Farmtrac and Powertrac. The current range involves over 45 models ranging from 25HP to 80HP. The tractor division was started in 1960 with the first Escort tractors produced in 1965. In 1969, a partnership with Ford was set up to produce licensed Ford tractors for India. Ford became New Holland, which is currently part of CNH Global, which in turn is owned by the Fiat Group. Escorts has production locations in Mrgowo, Poland that was purchased from Pol-Mot in 2000, and in India. There was an assembly plant in Tarboro, North Carolina which was purchased from Long Agri, but the North American subsidiary went into receivership in 2008. Customers, dealers and creditors are still trying to work through the North American troubles. A new assembly plant was set up in 2008 in Ghana to assemble 2500 tractors a year. Escorts tractors are exported around the world to about 41 countries. In the USA, tractors built by Escorts were imported from India and Poland, and from LS Tractors in South Korea, all sold under the Farmtrac brand name.

Motorcycles
The motorcycle division of Escorts group started manufacturing Polish SHL M11 175cc motorcycles under the brand name Rajdoot from 1962. Various derivatives were produced with slight changes in cycle parts, suspension and transmission. Production continued for over four decades until it was phased out in 2005 due to emissions. In the early 80s, Escorts started making Yamaha motorcycles in India. Rajdoot 350 and Yamaha RX 100 were known for their performance and established Yamaha as a performance brand in India.135cc RXG, RX135 and RXZ
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followed along with small 4-stroke Yamaha motorcycles which were made to cater to the commuter market. The motorcycle manufacturing unit in Faridabad was sold to Yamaha India in the late 1990s when Escorts decided to quit the motorcycle business to concentrate on tractors and auto components.

CONSTRUCTION EQUIPMENT
Escorts Construction Equipment Limited (ECEL) was established in 1970 as the Yellow Line. With partners such as Doosan, Altec, Fassi Group, Hamm, Huata and IHI, ECEL builds forklifts, cranes, backhoes, and excavators, to name a few.

RAILWAY EQUIPMENT
Railway Equipment Division is a leading railway equipment manufacturer of the country for over three decades. Certified for ISD9002, the division has a large pool of engineering manpower. It has facilities for advanced product development, design, testing and validation. The division offers a range of products including air and electro pneumatic braking system, couplers, shock absorbers, composite brake blocks, rail fastening systems and vulcanized rubber components. The products incorporate technologies from world renowed companies like Schaku of Germany for couplers, Knorr Bremse of Germany four air brakes, General & railway. Escorts builds couplers, shock absorbers, brake systems and brake blocks for Indian Railways. Suppliers Pty Ltd. of Australia for rail fastening system, ICER of spain for composite brake blocks and Vulcanite of Australia for Vulcanized rubber parts. More technical collaboration options are being pursued to address the opportunities arising from modernization of Indian Railway Metro Projects.

INFORMATION TECHNOLOGIES
The Escort Groups foray into IT and Internet service is channeled through Escosoft Technologies (software) and Esconet Services (e-enabled services). The lather has developed 4-5 products automatrix.com, a B2B exchange for auto components, cell next, which provide internet access and
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evince to users of mobile telephony, Iserve an ISP in HARYANA, UP WEST and KERALA, a health portal and Escolife, a portal for insurance agents.

ESCOSOFT TECHNOLOGIES LIMITED

http://www.escoft-tech.com/ is an ISO9001 certified software venture of the Escorts Group offering one-stop, quality solutions, internationality, with a distinct cost advantage. In a short time since inception, Escosoft has access to more than 300 professionals, covering a wide range of expertise in such sectors as Financial, Healthcare, Telecom, Infrastructure Management & Security.

Ecosoft specializes in software development, application support services and IT outsourcing services on a fixed-price as well as time & material basis. Ecosoft strongly follows centric approach for delivering products and services, conforming to ISO9001 requirements. All processes of Escosoft are certified by KPMG.

We bring all these together to rapidly and reliably deliver the solutions and the value required at the intersection of advanced technology and the enterprise. Escosofts business divisions are centered around its services spectrum.

CELLNEXT SOLUTION LIMITED

Cellnext solution Ltd. is an established market leader in providing complete wireless IT & Internet solutions and services to all leading telecom operators and enterprises.

Cellnext has wide product portfolio and brand categories of messaging engines, unfied content aggregation, and enterprise application integrators. Companys core competence revolves around GSM and
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CDMA over data technologies like SMS, MMS, GPRS, JVR, and development of wireless applications over the same.

IServ INDIA SOLUTIONS Pvt. Ltd.

IServ India solutions is a part of the US$ 800 million Escorts Group and provides world class internet based solutions to both the retail and the enterprise sector in India. With its state-of-the-art network of IP based leased lines and a geographically distributed data centre that incorporates standards based technologies from world leader like sun Microsystems, Ciscom Netscape and Compaq. Iserve Indias solutions offer unparalled uptimes and customer driven SLAs.

ESCONET SERVICES LIMITED

Esconet services Ltd. a wholly owned subsidiary of Escorts Ltd. has launched automatrix, a collaborative e-commerce for buying and selling automotive components.

It was the first natural and collaborative platform aimed at the Indian automobile Industry.

ESCORTS FINANCE LIMITED

Escorts finance Limited (EFL) with a country wide infrastructure, and a strong professional work force, is a prominent name in the financial

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services industry offering a wide range of financial services to cater to the needs of its clients.

BUSINESS PROFILE

Escorts Finance Limited in 1987 and is non-banking financial company. It is primarily engaged in the business of hire purchase, lease financing, money market operations and merchant banking. It is a member of the Escorts Group of companies, which owes its origin to engineering/ manufacturing business, commenced over 50 years ago. Today the group is a leading and trusted name with diversified interests in a number of high growth industries including from machinery, two wheelers, construction and material handling equipment and auto ancillary products and financial sevices.

FUTURE PLAN

The companys future strategy is to largely focus on financing of group products and ensure a healthy growth rate and at the same time maintain a high capital adequacy ratio. The company also plans to increase the share of construction equipment business in its lending portfolio. The company has recently started plant hire of construction and other equipment as an additional facility for its client.

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ESCORTS LIMITED
Agri Machinery Group
The year was 1960 Escort setup a strategic Agri Machinery group to venture into tractors. By 1965, this group rolled out on the field our first batch of tractor under the brand name of Escorts. Having pioneered from mechanization in the country, Escorts has played a pivotal role in the agriculture growth in India for over five decades. One of the leading tractor manufacturers of the country, Escorts produces tractors in the 27-75 HP range and has already sold over 6lac tractors. Its tractors are marked under three brand name viz. Escort, Powertrac, Farmtrac. Escort brand of tractors are symbolic of reliability & trust and enjoy the confidence of farming community for the last 45 years. Powertrac brand of tractors are the most fuelefficient tractors in their respective categories that offer excellent value for money and have helped the farmers improve their quality of life. Farmtrac brand are the most powerful premium range of tractors that give maximum productivity to the farmers. Spanning these three brands the company has full range of tractors to cater to the domestic as well as overseas markets.

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The co0mpany is developing state-of-the-art highly fuel efficient engines with the assistance of AVL of Australia and have also entered into a joint venture with Carraro SPA of Italy for the manufacturing of transmission and axles. To sustain the present momentum and to realize the future goals, Escorts has invested Rs. 60 Crore towards strengthening new product development programmes and enhancement of R&D capabilities. Additionally, Rs. 400Crore has been invested towards modernization of its manufacturing facilities bringing them to international standards. The company has one of the most comprehensive distribution networks comprising of over 600 dealership/outlets and 30 area offices spread across the country. It has a manufacturing capacity of 75000 tractors per annum. Escorts agri machinery Group is looking at forward and backward integration through food processing, food chains and genetic engineering. It will be expanding its product range by launching highly specialized tractors and draft implements.

We have increased our reach from a major regional player to major global markets which stretch North America to Australia covering all the continents. Despite the strict competition by other major tractor manufacturers we have been able to gain constant volumes in the global market.

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Our products are marketed mainly in U.S.A, central and Eastern Europe through Poland, Ghana, Tanzania, Malaysia, Australia, Tunisia, Chile, Turkey, Sri Lanka, Kenya, Bangladesh, South Africa, and many other countries. To consolidate its presence markets, the company has ventures in the USA and Europe(Poland). Its has recently acquired a majority stake in Long Agribusiness LLC, a tractor distributing company in the USA and Pol-Mot Escorts spolka Z.O.O., Poland. Besides the USA and Poland, Escorts has strong presence in Turkey, Australia, Bangladesh, Sri Lanka, Nepal, Kenya, Tanzania, South Africa etc, through its dealers network in other potential countries. An escort has very ambitious plans to expand the dealers network in other potential countries in the coming year. By the end of the next year, the company hopes to be the largest exporter of tractors in the Indian Tractor Industry, besides tractors, the RR6 riding type paddy transplanter in association.

Material Handling Equipment ESCORTS CONSTRUCTION EQUIPMENT Ltd.

At Escorts Construction Equipment Limited, we have defined the evolution of India's Construction Equipment Industry over the past 36 years. When Necessary, even entered into partnerships with global technology leaders. In 1971, we introduced Pick n Carry Hydraulic Cranes Mobile Cranes. We Continue to be the World's No.1 manufacturer of this Product.

Picture Of the new Premises Of ECEL We successfully pioneered the concept of Backhoe Loaders in the late 70's.

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The World Class range of Vibratory Compactors that we first Introduced in the late 80's are today reputed to provide the most effective compaction solutions to the industry. Our Innovation Continued... Excavators , amongst the world's most advanced, that revolutionized earth moving technology in India in the 90's. Forklift Trucks that are today the preferred choice of the quality conscious users. In the new millennium, we presented a contemporary range of equipmentArticulated Boom Crane, Tower Crane, Crawler Crane & Power & Telecom utility material from the world leaders. We defined customer support by setting up the first pan India dealership network which has now strengthened to 80 plus strategic locations covering length & breadth of the country. It also has 17 business centers located at all the strategic points. In keeping with its commitment to total customer satisfaction & providing technologically superior products ECEL has tie up with a number of reputed Internationally company- FRANNA CRANES Pvt. Ltd., Australia and FASSI GRU INDRAULICHE, Italy for cranes, DAEWOO HEAVY INDUSTRIES, Korea for Forklifts, JLG INDUSTRIES INC., USA for Aerial Work Platforms.

PRODUCTS OF ECEL
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 MATERIAL HANDLING EQUIPMENTS:

Pick n Carry Cranes Slew cranes Crawler Cranes Truck Cranes Articulated Boom Cranes Tower Cranes Forklift Cranes Arial work Platforms Telehandlers Front End Loaders

COMPACTION EQUIPMENTS:

Tandem Vibratory Roller Vibratory Soil Compactor

UTILITY EQUIPMENTS
Electric/Telecommunications

EARTH MOVING EQUIPMENTS

Backhoe Loaders Wheel Loaders Motor Graders

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ESCORTS CONSTRUCTION EQUIPMENT LIMITED

MISSION
To achieve leadership in construction and material handling equipment business and attain benchmark in cost, quality and customer service in a manner that all our stake holders i.e Our employees, customers, vendors, dealers and shareholders will have a sense of pride in ESCORTS CONSTRUCTION EQUIPMENT LIMITED.

POLICY
We, at ECEL shall attempt to delight our customers by giving them produces for newer applications and with superior quality.

OBJECTIVE
Towards achieving our quality, we will finalize and issue company objectives on an annual basis. Based on these annual company objectives, all department head will develop the objectives for the department.

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CONSTRUCTION EQUIPMENT SECTOR IN INDIA

The Indian Construction Equipment sector has an estimated market size of US$ 2.4 2.6 billion for the year 2007. The industry has been growing due to the large investments made by the Government and the private sector infrastructure developments. The prospects of the construction equipment industry look attractive with a projected investment of US$ 320 billion in the infrastructure sector over the next few years. The Indian market is catered by about 200 domestic manufacturers (small, medium & large). Though the Indian construction equipment industry is a fraction of the global market, whose size is over US$ 75 billion, it has been growing at an average of 30 per cent annually compared to the global growth of 5 per cent. India is one among the top 10 markets for construction equipment and is one of the key international market. The growth in this industry is expected to be primarily due to investments in infrastructure, investments by the Government in the form of external borrowings and internal accruals by Public-Private-Partnerships (PPP) model. Indian firms are strengthening their existing operations for catering to the growing domestic demand and are also planning to expand to tap overseas markets. At the same time international majors have ambitious plans for India.

Sector Composition & Size

The following is the sector breakup of the construction equipment industry in India as of 2004. Product consumption constitutes the bulk of the segment with around 56 per cent while the unorganised sector contributes to around 15 per cent. Unorganised players are more prevalent in the relatively less technology intensive material handling, material preparation and concrete equipment segments. Construction & material handling equipment industry
Products Spare Parts Unorganised Sector Services Exports 56% 21% 15% 6% 2%

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The imports market is estimated around US$ 375 million. Of these, the earthmoving, excavation and hauling equipment categories command around 25 per cent. Imported used equipments, which include high end hydraulic mobile cranes, excavators, motor graders, vibratory compactors comprise a negligible 0.4 per cent of the total construction equipment market. Company JCB India BEML TELCON L&T Case/Komatsu Caterpillar India Ingersoll Rand Volvo ECEL Greaves Cotton ACE Ltd. Others Total Revenue (US$ Million) 329 307 283 156 143 105 99 61 37 36 944 2500 Market share 13.2% 12.3% 11.3% 6.3% 5.7% 4.2% 3.9% 2.4% 1.5% 1.5% 37.7% 100.0%

The exports of Indian construction equipment industry were estimated at US$ 35 million in 2004-05. The growth in exports in the period 2000-01 to

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2004-05 was around 30 per cent. The potential exports market for construction equipment from India is projected to be around US$ 100-120 million by 2010. Spare parts revenues range anywhere from 2029 per cent of the total sales for representative companies and are predominant in tunnelling and drilling equipments. Services revenues have been higher for global players at around 1120 per cent in comparison to 28 per cent of Indian players. The construction equipment industry in India has more than 200 players; however, the top 6 players occupy about 60 per cent of the market. The following are players and their contribution to the Indian construction equipment industry.

Industry Structure
India produces the entire range of construction equipment for different applications. The industry can be broadly classified under the following categories: Earthmoving equipment Road construction equipment Material handling equipment Tunneling and Drilling equipment Construction vehicles The following is the industry structure and the categories involved in the construction equipment industry: In terms of size, earthmoving equipment constitutes the biggest segment, accounting for nearly 57 per cent of the overall equipment market. Material Handling equipment and tunneling and drilling equipment follow with 13 per cent and 12 per cent respectively.

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The performance of each segment is discussed separately under various heads.

Spraying &

Conve Earthmoving Equipments

The earthmoving equipment market in India is estimated at about US$ 1.4 billion. The predominant sub-segment in this is excavators, which account for just over half the market. Backhoes account for 26 per cent and loaders for another 5 per cent share.
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The prime driver for earthmoving equipment is mining activities and construction industry. Within these industries, the key demand drivers going forward are likely to be road construction, urban infrastructure, irrigation, real estate, construction and mining.ors

Plastering Machines Cranes

Excavators
Excavators are extensively used in many roles such as digging of trenches and foundations, demolition, general grading/landscaping, heavy lifting (e.g. lifting and placing of large concrete pipes), river dredging, mining and brush cutting with hydraulic attachments. Excavators come in a range of capacities and are usually classified on the basis of tonnage. The lower end excavators, referred to as mini excavators, find greater usage in urban infrastructure development and road development. The heavier duty excavators are used in mining and heavy construction. In India, the level of technology of the equipment manufactured is at par with international standards with some exceptions being the limited usage of electronic controls and hydraulic systems and engines adhering to the latest emission norms. The excavator market in India was around US$ 733 million in FY06 with a total of about 4455 units being sold. There is a sizeable market for used equipment as well. Excavators have registered a 30 per cent CAGR (Compounded Annual Growth Rate) for the past four years. Given the long term
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nature of Indias infrastructure development plans, similar growth rate is expected in future as well. High end excavators incorporating modern technology are witnessing faster growth compared to the traditional low end excavators. In terms of tonnage, 618 tonne excavators have grown at a CAGR of 9 per cent while 18 22 tonne excavators have registered a growth of 23 per cent CAGR during the period of FY01-06. The 22-50 tonnes excavators have seen a CAGR of 35 per cent and over 50 tonnes have registered 19 per cent CAGR in the same period. Increase in the sales of smaller sized excavators is largely driven by irrigation projects. Increased privatisation of mining and capacity augmentation in cement industry has propelled the growth for larger excavators. The key players in this sector are Telcon, L&T-Komatsu, Volvo, CAT and JCB. Telcon is the market leader with about 50 per cent of the market.

New entrants gaining share

A product range catering to the entire basket of equipment requirement of the customer is one of the differentiators in the market place. Indian players have the advantage of long experience in the market, leading to deep relationships with buyers, well spread out service networks and a deep understanding of the customers current and emerging needs. Multinationals that are relatively new entrants have strengths in the areas of technology, presence across the spectrum of equipment and providing end-to-end solutions. New technology enables better quality of service, low cost of ownership (low fuel consumption, less downtime, ease of maintenance, etc.), better resale value and reliability even in case of overuse or abuse of the equipment. Presence across the spectrum enables the firm to present a one-stop shop to customers. End-to-end solutions to customers help in retaining customers over the entire equipment usage cycle, right from financing through service and maintenance, till resale/disposal. Based on these strengths, over the last few years, relatively new entrants into the Indian market have been gaining share at the expense of the traditional market leaders.

Backhoe
The backhoe loader, consisting of a tractor, front shovel/bucket and small backhoe in the rear is a versatile piece of equipment and is therefore often the only piece of heavy equipment brought onto small to medium landscaping projects. A backhoe can duplicate the work of a bulldozer, front end loader and excavator. The backhoe loader also has the advantage of being driven directly to
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the different job areas as opposed to other specialised machines which need to be towed into the site and require external power sources. India is the second largest market for backhoe loaders in the world with a market size of approximately US$ 358 million. The market has been growing at a rate of close to 37 per cent CAGR over last four years. Going ahead growth is likely to be at least 11 per cent CAGR over the next few years. Most industry players however expect much faster growth (around 30-40 per cent) in the near term. JCB India is the leader in this segment with a share of over 70 per cent. Other players include Telcon, L&T, Caterpillar and Terex. While technology plays a key role especially for lowering operating costs by making the machine more fuel efficient, it is not perceived to be as important for backhoes as it is for excavators. With more players and increased competition, price competition may increase. The drivers for this market have been the housing and urban construction. Backhoes are used for all construction applications and hence have a very high utilisation for renters. Backhoes are perhaps the only market in India amongst construction equipment that have reached a stage of maturity and scale where exports could be considered.

Loaders
Loaders are used mainly for uploading materials into trucks, laying pipes, clearing rubble, and digging. The flexibility of usage is low as compared to a backhoe and loaders are largely used as complimentary products for material re-handling in construction and mining applications. The total market for wheeled loaders was approximately US$ 64 million in FY06 with a total of about 1321 units being sold and has been growing at a CAGR of about 41 per cent over the last 4 years. The growth is expected to continue at 10 per cent CAGR over the next few years. As in the case of backhoes, faster growth of about 20-30 per cent is expected in the near term. Unlike excavators, the growth in loaders is greater in the lower capacity categories (<10T). Key players in the Loaders market are Caterpillar (~50 per cent share), JCB and Telcon with L&T Komatsu and Volvo being players with a relatively smaller presence. In the high capacity loaders market (>15T), Volvo is a significant player. Most of the customers for loaders are first time buyers and this is the reason for huge sales of lower end loaders. Just as it is for excavators, a complete range of products and comprehensive maintenance and service support are becoming the critical success factors for players in the industry. The demand of loaders is from increased global demand for iron ore mining activities in the country.

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Construction Equipment & Vehicles

Equipment in this category typically find multi purpose application for various construction activities. Some of the construction equipment used are road rollers, concrete equipment, mixers, hot plant mixers, stone crushers, compactors, pavers, pneumatic tyre rollers (PTR), dumpers, tippers, trailers, and others. Compactors account for majority of the market share of road construction equipment. There are two main types of compactors -Tandem Vibratory Rollers (TVR) and soil compactors. These are used for compaction of asphalt and soil respectively primarily in road construction. The road construction equipment market share was around US$ 175 million in FY 06. Of this, the compactor market (TVR and Soil Compactors) was about US$ 48 million, with a total of about 1076 units being sold (516 TVR and 560 soil compactors). Reconditioned equipment account for about 510 per cent of this segment. The segment has seen erratic growth over the last 3 years owing largely to delays in the road infrastructure development plans of the Government. However, the CAGR over the last 3 years has been healthy at 20 per cent. Going ahead, growth is likely to be at least 11 per cent CAGR over the long term. Demand for road construction equipment will be driven not only by road construction activities but also by irrigation, power projects and other construction activities. Some of the major players in this sector are Ingersoll Rand (IR), Escorts Construction Equipment Limited (ECEL), L&T and Greaves. These companies largely compete on price though there are differentiators around service support. The market is now led by Ingersoll Rand with around 37 per cent market share in the TVR and soil compactors market. Both ECEL and L&T account for about 22 per cent each in the TVR and soil compactor market. Greaves occupies fourth position with a share of 17 per cent a large part of which it has gained in the last year (increase in share from 9-17 per cent between FY05 and FY06) mainly at the expense of IR. Tunneling & Drilling equipment are primarily used for mining, irrigation, construction (road, ports, airports, railways, power, etc.), urban infrastructure, and pipeline infrastructure. The product range in this category includes Rotary / DTH drilling, hammer track drill, boring equipment, and demolition equipment. Bharat Earthmovers Limited (BEML) & Caterpillar lead the market of construction vehicles, consisting primarily of dumpers & dozers. The competitive advantage of construction equipment lies on technological superiority and a wide product portfolio. Its also important to maintain strong relationships with the large, organised buyers.

Material Handling Equipment

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The chart below explains the different material handling equipment and their market share. Pick and carry cranes is the largest segment with 27 per cent share of the US$ 325 million material handling equipment market. Slew cranes, crawler cranes and tower cranes together account for another 24 per cent. Forklifts have 12 per cent share. Material Handling Equipment Market Share Total Market Size ~ US$ 325 Million
Pick-n-Carry Cranes Forklift Slew Cranes Crawler Cranes Tower Cranes Others

27% 12% 11% 8% 5% 37%

Pick & Carry Cranes

Pick and Carry cranes provide wide range of applications and high cost economies in material handling requirements. Some of the typical uses include loading, unloading, moving, shifting and erecting material. The pick-n-carry crane segment in India has an estimated market size of US$ 87 million (3698 units), and these cranes comprise 27 per cent of the overall material handling market and over 50 per cent of the cranes market. The market has grown at a CAGR of 72 per cent in volume terms in the last 3 years. Going forward, the growth rate is expected to be in the range of 15-20 per cent over the next few years. The key drivers are the construction and industrial sectors. Within the construction sector the key demand driver is urban infrastructure (expected investment growth of 13 per cent annually). Within industrial applications, the key demand drivers are steel and power industries (growing at around 9 per cent annually). The major players in this segment are ECEL and Actions Construction Equipment (ACE). While ECEL has been the traditional leader in this segment, ACE has been gaining share. A third player Omega has been able to capture
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2.5 per cent of the market within one year of commencing production. The barriers of entry in this segment are low. The first movers have the added advantage of established sales, service and distribution network along with an existing component supplier.

Other Cranes
Other cranes prevalent in India primarily consist of slew cranes, crawler cranes and tower cranes. These are higher value, more sophisticated cranes than pick-n-carry cranes and are typically used for heavier duty work. The market for slew cranes is about US$ 35 million (300 numbers) with about US$ 13 million (180 numbers) of this being accounted for by imported used equipment. Within slew cranes, yard cranes are the most prominent, comprising 65 per cent of all new slew cranes. The crawler cranes market is about US$ 25 million (210 numbers) with imported used cranes comprising about US$ 9.5 million (110 numbers). Tower cranes are about US$ 15.6 million (175 numbers). In volume terms other cranes comprise about 16 percent of the overall cranes market in India, but in value terms these cranes account for almost 47 per cent of the market. While slew cranes have witnessed a CAGR of 34 per cent over the last 2 years, tower cranes have grown at 71 percent CAGR in the same period. Industry sources indicate a growth rate of between 15-20 per cent over the next few years. Demand for other cranes is driven primarily by the construction and industrial sectors. Within industrial applications, the key demand drivers going forward are likely to be the power, refinery and mining sectors. With increasing average scale of infrastructure and construction projects, the growth rate of slew (specifically yard/rough terrain) and tower cranes is likely to surpass the average growth rate of the overall cranes segment. With improved road networks by 2008-09, demand for truck mounted cranes may also witness a spike. In the slew cranes segment, used imports dominate the market, with Tractors India Limited (TIL) being the market largest domestic player. TIL and ECEL have a market share of around 32 per cent and 6 per cent in terms of volumes. Telcon is the sole player in the crawler cranes segment with a share of approximately 50 per cent by volume (balance is accounted for by used imports). Shirke Potain is the market leader in the Tower crane category with 50 per cent market share followed by ACE at 25 per cent market share. ACE plans to widen its product portfolio in the cranes segment through manufacture of Truck Mounted and Tower cranes. This segment has healthy growth prospects.

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Forklifts
Fork lifts are low tonnage vehicles used to transport materials stored in pallets, within limited spaces. Most forklifts are in the 1 tonne5 tonnes range, though equipment up to 20 tonne are available. The flexibility and speed these equipment offer make them ideal for repetitive material handling tasks especially in restricted areas like warehouses and yards. There are 3 types of forklifts based on fuel input - Diesel, Liquefied Petroleum Gas (LPG) and Battery. Each variant finds application in different industries based on the load factor determined by the power inputs, pollution etc. The current market is approximately of 2150 units per annum for forklifts with a market size of approximately US$ 38 million. The segment has been on a 20 per cent growth trajectory year-on-year and is estimated to grow at a CAGR between 10-20 per cent. Diesel powered forklifts comprise a bulk of the market size at 83 per cent and are likely to drive growth going forward. Demand for forklifts will be driven primarily by new capacity creation and increased automation in the manufacturing and logistics (warehousing) sectors. Forklifts contribute to making the end user industry organised and less labour intensive (in material handling). It has also increased the levels of palletisation and containerisation. Godrej and Voltas are the two major players having around 80 per cent market share, with Godrej having 48 per cent share. The forklifts market is highly price sensitive. Technology is presently not seen as a differentiator, but with the end user industries becoming more organised and competitive, it would become increasingly important.

BASIC FRAMEWORK

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ESCORT CONSTRUCTION EQUIPMENT LIMITED

RESEARCH METHODOLOGY
A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate action. The research process provides a systematic, planned approach to the research project and ensures all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question.

Research Design:
A research design is the overall framework of the plan used for the collection and analysis of the data in the financial statement. In corporate, any research, any report should be problem defined a plan for gathering and analysis of data. A time framework and budget estimate the research design and present in organised and systematic form. In fact a suitable research design guards against collection of the irrelevant data therefore results in more economy. I propose to conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. This stage shall help me to restrict and select only the important question and issue, which inhabit the growth in the industry. The various tasks that I have undertaken in the research design process are: Defining the information need.
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 Design the exploratory, descriptive and causal report.

Research Objective:
The first step is while conducting definition of research problem. The project undertaken is value addition that marketer make. The objective of the study is to find out the current market share of ECEL and suggesting the ways to increase the market share. Sub objectives of study are: To study the consumer behaviour regarding ECEL products. To make market strategy for ECEL products. To make SWOT analysis of ECEL.

Data Sources:
Primary as well as secondary source of data were used for the analysis. Primary data was collected through interview of customers. Secondary data comes through were: Company profile Company website Magazines, product catalogue, journal & newspaper etc. Search engine site

Research approach:
A personal interaction with customers has been the main approach to collect the information required. The research process has four distinct yet interrelated steps for research analysis.

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It has logical and hierarchical ordering. Each step is viewed as separate process that includes a set of task, step and specific procedure. The steps undertaken are logical, objective, systematic, reliable, valid, impersonal and ongoing.

EXPLORATORY RESEARCH The method I used for exploratory research was o Primary Data o Secondary Data

Primary Data
New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by questionnaire. Qualitative or quantitative data that are newly collected in the course of research, consists of original information that comes from people and includes information gathered from surveys, focus groups, independent observations and test results. Data gathered by the researcher in the act of conducting research. This is contrasted to secondary data, which entails the data gathered by someone other than the researcher information that is obtained directly from first- hand sources by means of surveys, observation or experimentation.

SECONDARY DATA
Information that already exists somewhere, having been collected for another purpose. Sources include census reports, trade publications, and subscription services. There are two types of secondary data: internal and external secondary data. Information compiled inside or outside the organization for some purpose other than the current investigation. Researching information, which has already been published? Market information compiled for purposes other than the current research effort; it can be internal data, such

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as existing sales-tracking information, or it can be research conducted by someone else, such as a market research company or the U.S. government.

Secondary source of data consists of books and websites

My proposal is to first to conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research.

DESCRIPTIVE RESEARCH
STEPS in descriptive research: Statement of the problem Identification of information needed to solve the problem. Selection or development of instruments for gathering the information. Identification of target population and determination of sampling plan. Design of procedure for information collection. Collection of information. Analysis of information. Generalizations and / or predictions.

Research Instrument:
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To carry out research, we used questionnaire research instrument. Questionnaire have completely open ended question to know respondent inter feeling, and Dichotomous, multiple choice and rating scale ended question. This also includes service related issues.

Sampling Plan:
After deciding on the research approach and instrument, marketing researcher must design a sampling plan: This call for three decisions.
1.

Sampling unit: Who to be observed? In our research target population include those customer who do business in small scale.

2.

Sampling size: How many people should be surveyed? Due to time and money constraint we covered only 50 respondents.

3.

Sampling Procedure: How should the respondent to be chosen? In our study, we covered only those customer who are using ECEL products.

LIMITATION OF THE STUDY

Time constraint: Time constraint from one of the biggest constraint.

The time available for the study was less as such it hinders the progress of the study.

Money constraint: The money available with researcher also imposed

a limitation on the comprehensive of the research.

Non coverage of certain aspect: Non availability of data hinders

progress of study.

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CONCEPTUAL FRAMEWORK
ESCORT CONSTRUCTION EQUIPMENT LIMITED
CONSUMER BEHAVIOUR REGARDING PICK n CARRY CRANES & BACKHOE LOADER The aim of marketers is to meet and satisfy target customers needs and wants better than competitors. Consumer behavior is the study of how individual groups and organization select, buy, use and dispose of goods, service, ideas or experiences to satisfy their needs and wants. Studying consumer provides clues for improving or introducing products or services, setting prices, devising channels, crafting message and developing other marketing activities. Marketers always looking for emerging trends that suggests now marketing opportunities. Consumer Behaviour regarding Pick n carry crane can be got by the five stage model, that is following:

Problem Recognition Information Search Evaluation of Alternatives Purchase Decision

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 Post Purchase Behaviour

Problem Recognition:The buying process states when the buyer recognizes a problem or need can be triggered by internal or external stimuli. Within an internal stimulus, one of the persons normal needs-hunger, thirst, sex-rises to a threshold level and becomes a drive, or need can be aroused by a external stimulus. A person may admire a neighbours car or see television ad, which trigger thoughts about the responsibility or making purchase. Regarding crane and Backhoe loader, consumer recognized need for buying a new machine, when he find himself unable to satisfy his consumer demand, or when he find that neighbour has bought a new company machine, and he has found it good. And just to try, he wants to buy that machine.

Information Search:A aroused consumer will be inclined to search for more information. The source of information, from consumer get information can be divided into following groups.
Personal:- Family, Friends, Neighbours, Acquaintances. Commercial:- Advertising, Website, Salesperson, Dealer, Packaging, Displays. Public:- Mass Media, Consumer rating organization. Experiential:- Handling, Examining, Using the product.

Regarding crane & Backhoe loader customer get information through friends, neighbours who are doing the same business, the sales person of the company & from past purchase. Then they contact to company or dealers.

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 Evaluation of Alternative:After getting information, customers evaluate the alternatives. Regarding construction equipment, in this segment customer evaluate the alternatives on the basis of engine, features & working & price. They give more preferences to price then quality. While evaluating the alternatives, they dont keep in mind the usage cost etc. Or you can say that most of the customers dont have sense for value for money.

Purchase Decision:In the evaluation stage, customers form preferences among the brands in the choice set. The company may also from an intention to buy the most preferred brand. In regarding Cranes & Backhoe Loader, when customer takes a decision to buy these machines, he has to take no. of sub-decisions, those are following: Brand Dealer Timing After sale service Payment method Insurance If financed from which bank Spare parts availability Capacity Solution Help in getting work etc.

There are many different types at risks that consumer may perceive in buying crane.

Functional risk: The product does not perform up to exception. Physical risk: The product process a threat to physical well-being or health
of the user or others.
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Financial Risk: The product is not worth the price paid.

In case of cranes, Escorts price is high among its competitors but in case of Backhoe Loader its price is according to the market or may be it is less than its competitor.

Post Purchase Behaviour:

After purchasing the product, customer compare the actual performance falls short of expectation, the consumer is disappointed; if it meet expectation customer is satisfied. If its exceed expectation customer is delighted. The level of satisfaction affects his future purchase, reference to friend. And in this case after sales service plays a crucial role, if servicing is good after purchasing a product and if it is on time then customer will be happy.

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SWOT ANALYSIS OF ECEL

STRENGTHS
Superior machine vis--vis competition

The strength of ECEL lies in its strong network, it has nationwide dealer network of above 45 dealers and has overseas. It has also 12 business centres located at all strategic point. It has the widest distribution network in India. Their product of high quality developed with latest and imported technology. ECEL has tie up with a number of reputed companies.

Their product range is also very large in Pick n Carry cranes. And they are the new entrant in Backhoe loader which manufactured and assembled with the latest technology. ECEL is backed by a strong and reputed Escort Group. This has got its own brand image.

ECEL has entered in the field of material handling equipment in 1971 since then they have got experience of around 35 years. ECEL has since emerged as the world largest manufacturer of Pick n Carry hydraulic mobile cranes.

It also has good man power with Experienced & talented professionals.

WEAKNESSES

ECEL had not entered into whole construction equipment industry. Their main focus is in Cranes, Compactors, Loaders & Forklifts.

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 According to the customer survey, ECEL customers are not happy with after sales service. From their point of view, servicing doesnt happen on time.

OPPORTUNITIES
Scope of increase in market share due to emergence of new markets Potential of increase in sale because of increasing concern an environment safely among the organisation. A government is paying more attention towards improving the infrastructure.

THREATS

In 1991 Indian adopted globalisation from them the bigger MNCs are coming and setting up their manufacturing base in India. It is a major threat for existing players. They have strong financial backups and it became a difficult for domestic firms to compete with them.

The industry is quite fragmented, in which small player play a very important role. The built customized products with cheaper quality techniques. They are eating up the market share of bigger players.

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MARKETING STRATEGY FOR PICK N CARRY CRANE & BACKHOE LOADER

BCG MATRIX

To use the chart, analysts plot a scatter graph to rank the business units (or products) on the basis of their relative market shares and growth rates.

Cash cows are units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to own as many as possible. They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Dogs, or more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for
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the company. They depress a profitable company's return on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is thought, should be sold off.

Question marks (also known as problem child) are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share. Stars are units with a high market share in a fast-growing industry. The hope is that stars become the next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When growth slows, stars become cash cows if they have been able to maintain their category leadership, or they move from brief stardom to dogdom.

As a particular industry matures and its growth slows, all business units become either cash cows or dogs. The natural cycle for most business units is that they start as question marks, then turn into stars. Eventually the market stops growing thus the business unit becomes a cash cow. At the end of the cycle the cash cow turns into a dog. The overall goal of this ranking was to help corporate analysts decide which of their business units to fund, and how much; and which units to sell. Managers were supposed to gain perspective from this analysis that allowed them to plan with confidence to use money generated by the cash cows to fund the stars and, possibly, the question marks. As the BCG stated in 1970: Only a diversified company with a balanced portfolio can use its strengths to truly capitalize on its growth opportunities. The balanced portfolio has: stars whose high share and high growth assure the future cash cows that supply funds for that future growth question marks to be converted into stars with the added funds.
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Practical use of the BCG Matrix

For each product or service, the 'area' of the circle represents the value of its sales. The BCG Matrix thus offers a very useful 'map' of the organization's product (or service) strengths and weaknesses, at least in terms of current profitability, as well as the likely cash flows. The need which prompted this idea was, indeed, that of managing cash-flow. It was reasoned that one of the main indicators of cash generation was relative market share, and one which pointed to cash usage was that of market growth rate. Derivatives can also be used to create a 'product portfolio' analysis of services. So Information System services can be treated accordingly.

ANALYSIS OF ECEL PRODUCT ON THE BASIS OF BCG MATRIX

Pick n Carry Cranes:- The product manufactured by ECEL in this category is already in Star position in the market. Only they need to sustain at that position by constantly improving in their product quality & providing better after sale service to build customer utility after using the product. Backhoe Loader:- ECEL is the new player in this product category. So this product is at question mark stage in BCG matrix, so company have to develop new feature in product and have to launch at low price than competitor price so that their product come up to stat position.

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MARKETING MIX
The marketers task is to device marketing activities and assemble fully intergrated marketing programs to create communicate and deliver value of consumer. The marketing programme consists of numerous decisions on value enhancing marketing activities to use. One traditional depiction of marketing activities is in term of the marketing mix which has been defined as the set at marketing tools the firm use to pursue its marketing objectives. Mc Carthy classified these tools into four broad groups which calls the four Ps of marketing: Product, Price, Place and Promotion. The four Ps represent the sellers view of marketing tools available for influence buyers, from a buyer point of view, each marketing tool is designed ti delivers a customer benefit. Robert Lauterborn suggested that the sellers four Ps corresponding to the customers four Cs.

Four Ps Four Cs

Product Customer solution

Price Customer cost

Promotion Communication

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Place Convince

PRODUCT:

A product is anything that can be offered to a market to satisfy a want or need. Products that are marketed include physical goods, Service, Experience, Events, Persons, Places, Properties organizations in foundations and ideas. This P of marketing mix include various variables related with product like quality of Product, Features, Brand name etc. According to my survey, each respondent said Escort Quality is Superb. Whether he is using Backhoe loader or Crane, but many of the respondents are not satisfied with after sales service. The main reason behind this is the Escort has been increasing in market share but Escort has not increased its Service engineer. Company should adopted competitive repositioning, because buyers mistakenly believe a competitors brand has more quality than it actually has.

PRICE:
Price denote the value of the product or services express in terms of money. It is a powerful instrument to both the buyer and the seller. In the market place pricing is dangerous and explosive marketers force. It must be used with great care. Pricing of crane have been set by considering the following parameters:

Cost of the product Commission Cost Custom Duty Competitors Price

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 Customers need and Attitudes In this segment, most of the customer are price sensitive, customer know that Escort quality is superb, but they give more preference to price than quality. Some of the respondents are buying competitors crane just because it has low price than Escorts. They should be convinced that price is not the only criteria to select a particular company machines, you have to see many things like usage cost, maintenance cost, disposal cost, customer benefits etc. if you buy a machine, just because it has a low prices, but requires frequent maintenance work. You will not have to pay maintenance cost but also opportunities cost. In case of Backhoe loader, Escort price is lesser than competitors price but in case of Cranes, Escorts price is higher than competitors price.

PLACE:
This is the third P of marketing mix. It includes channels of distribution, marketing coverage, their location and media of transportation etc. ECEL has a widest network in industry. ECEL has a strong network of 45 dealers all over India. It also has 12 business centers at all the strategic sites. ECEL has over 10 dealers abroad. Road & Rail transportation is used by company for transporting their cranes in India and water transportation for abroad.

DISTRIBUTION CHANNEL:
There are two types of distribution channel followed by company to sell its products. These are:
1. 2.

Company--------------------->Dealers----------------------->Customers Company------------------------------------------------------->Customers

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Even than Escort is known for late delivery. Gone are the days when customers have to wait for the product after making a deal. This is due to so much competition in market, if customer found any default weather in delivering the product then he might switch his purchase decision to any other competitor product. The reason for the late delivery is that demand is more than the production capacity. I think company should do major in working capital and increase its production capacity. It will lead to economic of scale, decrease the cost of the product and you are in the position to face competition strongly.

PROMOTION:
To promote the sale of the organization activities are considered essential. Promotion by definition is a persuasive communication, the message is arranged to facilitate the customer decision making. Promotion is one of the source of information at disposal by buyers. Firm may have the best product package, it may also have fair price but the people will not buy the product if they have never heard of it. Sales does not takes place automatically without communication. ECEL should adopt effective advertising strategy, they need to put banners & posters besides highways and near any construction sites. They should also adopt the sales approach strategy in which sales representative go and communicate to the new customers about the ECEL products. They can also inculcate these things for the promotion of their product: Personal selling Giving attractive warranties schemes Time to time company should organize parties and invite potential customers and ask their feedbacks about the products used by them. Escorts group advertisement. Escorts should distribute some utility with its brand name to the customers. Escorts must keep a separate uniform for the service people with its logo on it and keep mandatory to wear for them.

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CRITICAL SUCCESS FACTORS FOR MANUFACTRURES IN INDIA

1. After Sales Services
The share of revenue from service for Indian construction equipment manufacturers is estimated at around 2-8 per cent as against 12-20 per cent that global players enjoy. This indicates the potential for improving service revenue in the Indian market. As product technology improves across competitors, service would be the key differentiating factor to retain customers. Equipment in India are typically used for 15 to 20 years, indicating the significant potential for maintenance and service activities, apart from spare parts sales, across the usage cycle. Hence a clear focus on service is necessary for companies to grow and remain competitive. This needs to translate into developing capabilities in training, supply chain management and distribution reach.

2. Focus on R&D and Innovation

Indian construction equipment manufacturers invest very little in Research and Development (R&D) compared to global majors. This is a key lacuna that can hamper growth product innovation and new product development are key capabilities to maintain a pipeline of new products, which is critical for success in the increasingly competitive market. Customer training and education on the benefits of technology have to evolve in parallel with product technology development so that customers perceive value for the enhanced technology and also use the equipment correctly.

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3. Providing End-to-End Solutions

The capability for providing end-to-end services to customers is expected to be a key differentiator for players in the construction equipment industry in future. From the evaluation of equipment prior to purchase till disposal of used equipment, customers need a variety of services and players who can provide these in an integrated manner, stand to gain multiple benefits. For this construction equipment manufacturers may need to enter into collaborative ventures with financiers, insurance companies and rental companies.

4. Supporting Government Regulations & Policy

The Government of Indias focus on infrastructure development is the single biggest driver for the construction equipment industry. Policies that encourage manufacturing and retail activity also have a positive impact on the equipment market. Apart from these, some of the policies that are aimed at attracting investment in the sector include the following: All agencies and ministries of union and state government will work united with a shared vision for success. 100 per cent FDI is allowed for manufacturing purposes. Exemption from obtaining an industrial license to manufacture. Manufacturers are free to select the location of the project. Import duties reduced to encourage imports. Encourage exports from Export Oriented Units (EOUs), Special Economic Zones and Export Processing Units (EPUs). Locations with high growth potential to be supported by Government to bridge technology and productivity gaps. Skill up-gradation, physical infrastructure, environmental mitigations facilities to be provided by Government in selected areas of intervention. Schemes similar to SEZs can be developed for export oriented units with capital investment in plant and machinery over US$ 6 million.

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CONCLUSION
The Indian construction equipment industry is a key segment of the manufacturing sector and is poised for excellent growth in the coming years, based on Indias overall manufacturing sector and infrastructure growth. Earthmoving equipment, material handling equipment and road construction equipment are key segments expected to contribute to the bulk of the growth, driven by construction activity in the parent sectors. To leverage this opportunity, Indian construction equipment manufacturers need to focus on developing individual and pooled capabilities to develop global competitiveness across the sector. Collaborative endeavours to provide integrated services, industry bodies to promote the industrys interests and working with the Government to promote technology development are some of the key measures to be taken. In order to enhance their market share, ECEL need to improve its product quality, manufacturing capacity and serviceability followed by reduction in cost, increase in the product range and finally adopt more aggressive marketing strategies. The competitive edge lies in satisfying customers by delivering higher quality products at lower prices.

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ESCORTS CONSTRUCTION EQUIPMENT Ltd.

SURVEY OF CUSTOMERS
NAME:LOCATION:BUSINESS PROFILE:-

1. When you have requirement of construction equipment then how you generally search for product which will fulfil your requirement?

a) Company websites c) Print & visual media 2.

b) Suggestions from friends & colleagues d) Past experience

What you generally look into a product before finalising a deal? a) Quality d) Price b) Features & working e) After sales service c) Brand image

3.

Please tick the product you have purchased from Escorts in last 5 years? a) Backhoe loader c) Fork lift trucks b) Mobile pick & carry crane d) Others (Please mention) c) Vibratory rollers

4.

When have you purchased the product of Escorts? a) 0-1 years b) 2-4 years c) 4-6 years d) 6 or more

5.

Are you satisfied with the product? a) Yes b) No

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6.

Are you satisfied with after sales service provided? a) Yes b) No

7.

What was the lead time of the problem to get rectified? a) 1-2 days b) Less than a week c) 15 days d) 1 month

8.

If you want some changes in the product then those changes will be in:a) Quality b) Usage & Application c) Appearance d) Other

9.

How often a dealer contact you after delivering a product? a) Once in a week d) More than a month b) Once in 15 days c) Once in a month

10. Do you think Escorts prices are competitive in market? a) Yes b) No

11. Please tick marks the products of Escorts which you are not aware off? a) Backhoe loader (Digmax) c) Vibratory rollers g) Slew crane b) Hydraulic mobile pick & carry crane (Hydra, TRX etc.) e) Motor grader i) Tower crane f) Wheel loader

d) Forklift trucks

h) Truck mounted crane

j) Articulated boom crane 12. Do you think Escorts need to increase its promotion tools to create awareness of its products? a) Yes b) No

13. Please tick mark which you feel can be an effective media for promotion of Escorts products:a) Printed e) Sales approach 14. Please rate the different construction equipment manufacturing equipment companies on various parameters:b) Banners & posters c) Radio d) Visual

COMPANIES NAME ESCORTS JCB GREAVES ACE LIUGONG STANDARD OMEGA

QUALITY

PARAMETERS PRICE APPLICATION BRAND IMAGE

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SUGGESSIONS & RECOMMENDATION

GENERAL ISSUES:

Escorts must have provisions to have meeting with dealers & potential customers once in every six months. All the dealers need to be monitored by the company. A pick n carry crane model which will be equivalent to ACE in terms of price need to be introduced in market. Escorts have to distribute complimentary gifts on certain occasion to promote its products. Escorts service team have to meet customer on time to time basis to gain customer confidence. Spare parts availability should be there with all dealers.

TECHNICAL ISSUES:

ECEL have to do something to increase the crane speed on road. TRX OR F-15- There were no provision for cradle if company provide differential lock then it increase customer utility. Rear and front tyres should be heavy duty according to customers Stabilizer pressure is less in Backhoe loader. Customer is facing problem in valve leakage in Backhoe loader.

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 At the time of loading, temperature shown by machine will be high.

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