A PROJECT REPORT ON PRICING STRATEGY OF SONAL ENGINEERING SUBMITTED TO UNIVERSITY OF MUMBAI UNDER THE PARTIAL FULFILLMENT OF MASTER OF MANAGEMENT

STUDIES SUBMITTED BY ROHIT SUNIL PRADHAN M.M.S. MARKETING UNDER THE GUIDANCE OF Mr. SWAPNIL BAMBARKAR PNP PRABHAKAR PATIL EDUCATION SOCIETY INSTITUTE OF MANAGEMENT STUDIES ALIBAG,RAIGAD- 402201

A PROJECT REPORT ON PRICING STRATEGIES

SUBMITTED BY ROHIT SUNIL PRADHAN (MARKETING) 2012-2013

In the fulfilment of Summer Internship of University Of Mumbai PRABHAKAR PATIL EDUCATION SOCIETY INSTITUTE OF MANAGEMENT STUDIES VESHVI AT- POST, TALUKA- ALIBAG, PIN-402 201

SONAL ENGINEERING PLASTIC FABRICATOR

ACKNOWLEDGEMENT I would like to thank our director Dr. Saha for give opportunity to do project. I am also thankful to Prof. Swapnil Bambarkar of PPES Institute of management studies for his help encouragement and resourceful guidance. I would like to thank Mr. Anil Chintaman Mhatre(CEO) of SONAL ENGINEERING PLASTIC FABRICATOR for giving me an interesting topic for my project from which I got valuable knowledge. I would also like to thank Mr. Chintaman Mhatre (product Manager) of SONAL ENGINEERING PLASTIC FABRICATOR he have supported me a lot for my project. I am very much thankful to Mr. Arun pokhrankar(Sr. Exc.) of SONAL ENGINEERING PLASTIC FABRICATOR. He has provided me all the require information for my project. And also thanks to all my friends for their support and help.

DECLARATION

I, ROHIT SUNIL PRADHAN, student of SY. MMS(Marketing)-3rd semester of PRABHAKAR PATIL EDUCATION SOCIETY

INSTITUTE OF MANAGEMENT STUDIES, ALIBAG, Hereby decleared that I have completed this project on PRICING STRATEGY in SONAL ENGINEERING PLASTIC FABRICATOR for the academic year 2012-2013.

This information submitted is true and original to the best of my knowledge.

CONTENTS

SR.NO. 1 2 3 4 5 6

PARTICULARS Project title Certificate Declaration Acknowledgement List of table Chapter 16.1 Introduction of project 6.2 Executive summary 6.3 Project profile 6.4 Importance of study 6.5 Objective of study Chapter 2Company profile 7.1 Introduction of company 7.2 Vision, future prospectus 8.1 Data introduction 8.2 Analysis 8.3 Conclusion Chapter 3-Comparitive analysis Chapter 4 10.1 Observations 10.2 Findings & suggestions 10.3 Conclusions 10.4 Bibliography

9 10

Chapter 1 INTRODUCTION TO PROJECT

This project report gives the information about how the company decides the pricing strategy to get the profit.

Pricing strategies for products or services encompass three main ways to improve profits. These are that the business owner can cut costs or sell more, or find more profit with a better pricing strategy. When costs are already at their lowest and viable.sales are hard to find, adopting a better pricing strategy is a key option to stay.

Merely raising prices is not always the answer, especially in a poor economy. Too many businesses have been lost because they priced themselves out of the marketplace. On the other hand, too many business and sales staff leave "money on the table". One strategy does not fit all, so adopting a pricing strategy is a learning curve when studying the needs and behaviors of customers and clients. Pricing strategies for product or services encompass three main ways to improve profits. These are that the business owner can cut costs or sell more, or find more profit with a better pricing strategy. When costs are already at their lowest and sales are hard to find, adopting a better pricing strategy is a key option to stay viable. Merely raising prices is not always the answer, especially in a poor economy. Too many businesses have been lost because they priced themselves out of the marketplace. On the other hand, too many business and sales staff leave "money on the table". One strategy does not fit all, so adopting a pricing strategy is a learning curve when studying the needs and behaviors of customers and clients.

EXECUTIVE SUMMARY

This project was done at Sonal Engineering Plastic Fabricator(SEPF),Alibag.Pricing strategies has a significant effect in determining and presenting marketing position and result of operation to increase the profit.This project helped a lot to understand the pricing strategies used by the marketing manager. This project is basically made for understanding the pricing strategies which company used.

PROJECT PROFILE Name of Project: Pricing Strategy

Location: Sonal Engineering Plastic Fabricator At-Bhaimala Post-Kamarle Tal-Alibag Dist-Raigad

Pproject description:

MODELS OF PRICING Cost-plus pricing: Cost-plus pricing is the simplest pricing method. The firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price. This method although simple has two flaws; it takes no account of demand and there is no way of determining if potential customers will purchase the product at the calculated price. This appears in two forms, Full cost pricing which takes into consideration both variable and fixed costs and adds a % markup. The other is Direct cost pricing which is variable costs plus a % markup, the latter is only used in periods of high competition as this method usually leads to a loss in the long run. Creaming or skimming In most skimming, goods are sold at higher prices so that fewer sales are needed to break even. Selling a product at a high price, sacrificing high sales to gain a high profit is therefore "skimming" the market. Skimming is usually employed to reimburse the cost of investment of the original research into the product: commonly used in electronic markets when a new range, such as DVD players, are firstly dispatched into the market at a high price. This strategy is often used to target "early adopters" of a product or service. Early adopters generally have a relatively lower price-sensitivity - this can be attributed to: their need for the product outweighing their need to economise; a greater understanding of the product's value; or simply having a higher disposable income. This strategy is employed only for a limited duration to recover most of the investment made to build the product. To gain further market share, a seller must use other pricing tactics such as economy or penetration. This method can have some setbacks as it could leave the product at a high price against the competition. Limit pricing A limit price is the price set by a monopolist to discourage economic entry into a market, and is illegal in many countries. The limit price is the price that the entrant would face upon entering as long as the incumbent firm did not decrease output. The limit price is often lower than the average cost of production or just low enough to make entering not profitable. The quantity produced by the incumbent firm to act as a deterrent to entry is usually larger than would be optimal for a monopolist, but might still produce higher economic profits than would be earned under perfect competition. The problem with limit pricing as a strategy is that once the entrant has entered the market, the quantity used as a threat to deter entry is no longer the incumbent firm's best response. This means that for limit pricing to be an effective deterrent to entry, the threat must in some way be made credible. A way to achieve this is for the incumbent firm to constrain itself to produce a certain quantity whether entry occurs or not. An example of this would be if the

firm signed a union contract to employ a certain (high) level of labor for a long period of time. In this strategy price of the product become limit according to budget. Loss leader A loss leader or leader is a product sold at a low price (i.e. at cost or below cost) to stimulate other profitable sales. This would help the companies to expand its market share as a whole Market-oriented pricing Setting a price based upon analysis and research compiled from the target market. This means that marketers will set prices depending on the results from the research. For instance if the competitors are pricing their products at a lower price, then it's up to them to either price their goods at an above price or below, depending on what the company wants to achieve . Penetration pricing Setting the price low in order to attract customers and gain market share. The price will be raised later once this market share is gained Price discrimination Setting a different price for the same product in different segments to the market. For example, this can be for different classes, such as ages, or for different opening times. Premium pricing Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation, are more reliable or desirable, or represent exceptional quality and distinction.

Predatory pricing Aggressive pricing (also known as "undercutting") intended to drive out competitors from a market. It is illegal in some countries. Contribution margin-based pricing Contribution margin-based pricing maximizes the profit derived from an individual product, based on the difference between the product's price and variable costs (the product's contribution margin per unit), and on ones assumptions regarding the relationship between the products price and the number of units that can be sold at that price. The product's contribution to total firm profit (i.e. to operating income) is maximized when a price is chosen that maximizes the following: (contribution margin per unit) X (number of units sold). Psychological pricing

Pricing designed to have a positive psychological impact. For example, selling a product at $3.95 or $3.99, rather than $4.00. Dynamic pricing A flexible pricing mechanism made possible by advances in information technology, and employed mostly by Internet based companies. By responding to market fluctuations or large amounts of data gathered from customers - ranging from where they live to what they buy to how much they have spent on past purchases - dynamic pricing allows online companies to adjust the prices of identical goods to correspond to a customers willingness to pay. The airline industry is often cited asicing success story. In fact, it employs the technique so artfully that most of the passengers on any given airplane have paid different ticket prices for the same flight. Price leadership An observation made of oligopolistic business behavior in which one company, usually the dominant competitor among several, leads the way in determining prices, the others soon following. The context is a state of limited competition, in which a market is shared by a small number of producers or sellers. Target pricing Pricing method whereby the selling price of a product is calculated to produce a particular rate of return on investment for a specific volume of production. The target pricing method is used most often by public utilities, like electric and gas companies, and companies whose capital investment is high, like automobile manufacturers. Target pricing is not useful for companies whose capital investment is low because, according to this formula, the selling price will be understated. Also the target pricing method is not keyed to the demand for the product, and if the entire volume is not sold, a company might sustain an overall budgetary loss on the product. Absorption pricing Method of pricing in which all costs are recovered. The price of the product includes the variable cost of each item plus a proportionate amount of the fixed costs and is a form of cost-plus pricing. High-low pricing Method of pricing for an organization where the goods or services offered by the organization are regularly priced higher than competitors, but through promotions, advertisements, and or coupons, lower prices are offered on key items. The lower promotional prices are designed to bring customers to the organization where the customer is offered the promotional product as well as the regular higher priced products. Premium decoy pricing

Method of pricing where an organization artificially sets one product price high, in order to boost sales of a lower priced product. Marginal-cost pricing In business, the practice of setting the price of a product to equal the extra cost of producing an extra unit of output. By this policy, a producer charges, for each product unit sold, only the addition to total cost resulting from materials and direct labor. Businesses often set prices close to marginal cost during periods of poor sales. If, for example, an item has a marginal cost of $1.00 and a normal selling price is $2.00, the firm selling the item might wish to lower the price to $1.10 if demand has waned. The business would choose this approach because the incremental profit of 10 cents from the transaction is better than no sale at all. Value-based pricing Pricing a product based on the value the product has for the customer and not on its costs of production or any other factor.

Nine Laws of Price Sensitivity and Consumer Psychology They are: 1. Reference Price Effect buyers price sensitivity for a given product increases the higher the products price relative to perceived alternatives. Perceived alternatives can vary by buyer segment, by occasion, and other factors. 2. Difficult Comparison Effect buyers are less sensitive to the price of a known or more reputable product when they have difficulty comparing it to potential alternatives. 3. Switching Costs Effect the higher the product-specific investment a buyer must make to switch suppliers, the less price sensitive that buyer is when choosing between alternatives. 4. Price-Quality Effect buyers are less sensitive to price the more that higher prices signal higher quality. Products for which this effect is particularly relevant include: image products, exclusive products, and products with minimal cues for quality. 5. Expenditure Effect buyers are more price sensitive when the expense accounts for a large percentage of buyers available income or budget. 6. End-Benefit Effect the effect refers to the relationship a given purchase has to a larger overall benefit, and is divided into two parts: Derived demand: The more sensitive buyers are to the price of the end benefit, the more sensitive they will be to the prices of those products that contribute to that benefit. Price proportion cost: The price proportion cost refers to the percent of the total cost of the end benefit accounted for by a given component that helps to produce the end benefit (e.g., think CPU and PCs). The smaller the given components share of the total cost of the end benefit, the less sensitive buyers will be to the component's price. 7. Shared-cost Effect the smaller the portion of the purchase price buyers must pay for themselves, the less price sensitive they will be. 8. Fairness Effect buyers are more sensitive to the price of a product when the price is outside the range they perceive as fair or reasonable given the purchase context. 9. The Framing Effect buyers are more price sensitive when they perceive the price as a loss rather than a forgone gain, and they have greater price sensitivity when the price is paid separately rather than as part of a bundle.

Marketing - Pricing approaches and strategies There are three main approaches a business takes to setting price: Cost-based pricing: price is determined by adding a profit element on top of the cost of making the product. Customer-based pricing: where prices are determined by what a firm believes customers will be prepared to pay Competitor-based pricing: where competitor prices are the main influence on the price set Lets take a brief look at each of these approaches; Cost based pricing This involves setting a price by adding a fixed amount or percentage to the cost of making or buying the product. In some ways this is quite an old-fashioned and somewhat discredited pricing strategy, although it is still widely used. After all, customers are not too bothered what it cost to make the product they are interested in what value the product provides them. Cost-plus (or mark-up) pricing is widely used in retailing, where the retailer wants to know with some certainty what the gross profit margin of each sale will be. An advantage of this approach is that the business will know that its costs are being covered. The main disadvantage is that cost-plus pricing may lead to products that are priced un-competitively. Here is an example of cost-plus pricing, where a business wishes to ensure that it makes an additional 50 of profit on top of the unit cost of production. Unit cost Mark-up 100 50%

Selling price 150 How high should the mark-up percentage be? That largely depends on the normal competitive practice in a market and also whether the resulting price is acceptable to customers. In the UK a standard retail mark-up is 2.4 times the cost the retailer pays to its supplier (normally a wholesaler). So, if the wholesale cost of a product is 10 per unit, the retailer will look to sell it for 2.4x 10 = 24. This is equal to a total mark-up of 14 (i.e. the selling price of 24 less the bought cost of 10). The main advantage of cost-based pricing is that selling prices are relatively easy to calculate. If the mark-up percentage is applied consistently across product ranges, then the business can also predict more reliably what the overall profit margin will be.

Customer-based pricing Penetration pricing You often see the tagline special introductory offer the classic sign of penetration pricing. The aim of penetration pricing is usually to increase market share of a product, providing the opportunity to increase price once this objective has been achieved. Penetration pricing is the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, to attract new customers. The strategy aims to encourage customers to switch to the new product because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. In the short term, penetration pricing is likely to result in lower profits than would be the case if price were set higher. However, there are some significant benefits to long-term profitability of having a higher market share, so the pricing strategy can often be justified. Penetration pricing is often used to support the launch of a new product, and works best when a product enters a market with relatively little product differentiation and where demand is price elastic so a lower price than rival products is a competitive weapon. Price skimming Skimming involves setting a high price before other competitors come into the market. This is often used for the launch of a new product which faces little or no competition usually due to some technological features. Such products are often bought by early adopters who are prepared to pay a higher price to have the latest or best product in the market. Good examples of price skimming include innovative electronic products, such as the Apple iPad and Sony PlayStation 3. There are some other problems and challenges with this approach: Price skimming as a strategy cannot last for long, as competitors soon launch rival products which put pressure on the price (e.g. the launch of rival products to the iPhone or iPod). Distribution (place) can also be a challenge for an innovative new product. It may be necessary to give retailers higher margins to convince them to stock the product, reducing the improved margins that can be delivered by price skimming. A final problem is that by price skimming, a firm may slow down the volume growth of demand for the product. This can give competitors more time to develop alternative products ready for the time when market demand (measured in volume) is strongest. Loss leaders The use of loss leaders is a method of sales promotion. A loss leader is a product priced below cost-price in order to attract consumers into a shop or online store. The purpose of

making a product a loss leader is to encourage customers to make further purchases of profitable goods while they are in the shop. But does this strategy work? Pricing is a key competitive weapon and a very flexible part of the marketing mix. If a business undercuts its competitors on price, new customers may be attracted and existing customers may become more loyal. So, using a loss leader can help drive customer loyalty. One risk of using a loss leader is that customers may take the opportunity to bulk-buy. If the price discount is sufficiently deep, then it makes sense for customers to buy as much as they can (assuming the product is not perishable). Using a loss leader is essentially a short-term pricing tactic for any one product. Customers will soon get used to the tactic, so it makes sense to change the loss leader or its merchandising every so often. Predatory pricing (note: this is illegal) With predatory pricing, prices are deliberately set very low by a dominant competitor in the market in order to restrict or prevent competition. The price set might even be free, or lead to losses by the predator. Whatever the approach, predatory pricing is illegal under competition law. Psychological pricing Sometimes prices are set at what seem to be unusual price points. For example, why are DVDs priced at 12.99 or 14.99? The answer is the perceived price barriers that customers may have. They will buy something for 9.99, but think that 10 is a little too much. So a price that is one pence lower can make the difference between closing the sale, or not! The aim of psychological pricing is to make the customer believe the product is cheaper than it really is. Pricing in this way is intended to attract customers who are looking for value. Competitor-based pricing If there is strong competition in a market, customers are faced with a wide choice of who to buy from. They may buy from the cheapest provider or perhaps from the one which offers the best customer service. But customers will certainly be mindful of what is a reasonable or normal price in the market. Most firms in a competitive market do not have sufficient power to be able to set prices above their competitors. They tend to use going-rate pricing i.e. setting a price that is in line with the prices charged by direct competitors. In effect such businesses are pricetakers they must accept the going market price as determined by the forces of demand and supply. An advantage of using competitive pricing is that selling prices should be line with rivals, so price should not be a competitive disadvantage.

Pricing based on Marketing Mix stratyegys One of the four major elements of the marketing mix is price. Pricing is an important strategic issue because it is related to product positioning. Furthermore, pricing affects other marketing mix elements such as product features, channel decisions, and promotion. While there is no single recipe to determine pricing, the following is a general sequence of steps that might be followed for developing the pricing of a new product: 1. Develop marketing strategy - perform marketing analysis, segmentation, targeting, and positioning. 2. Make marketing mix decisions - define the product, distribution, and promotional tactics. 3. 4. Estimate the demand curve - understand how quantity demanded varies with price. Calculate cost - include fixed and variable costs associated with the product.

5. Understand environmental factors - evaluate likely competitor actions, understand legal constraints, etc. 6. Set pricing objectives - for example, profit maximization, revenue maximization, or price stabilization (status quo). 7. Determine pricing - using information collected in the above steps, select a pricing method, develop the pricing structure, and define discounts. These steps are interrelated and are not necessarily performed in the above order. Nonetheless, the above list serves to present a starting framework. Marketing Strategy and the Marketing Mix Before the product is developed, the marketing strategy is formulated, including target market selection and product positioning. There usually is a tradeoff between product quality and price, so price is an important variable in positioning. Because of inherent tradeoffs between marketing mix elements, pricing will depend on other product, distribution, and promotion decisions. Estimate the Demand Curve Because there is a relationship between price and quantity demanded, it is important to understand the impact of pricing on sales by estimating the demand curve for the product. For existing products, experiments can be performed at prices above and below the current price in order to determine the price elasticity of demand. Inelastic demand indicates that price increases might be feasible. Calculate Costs

If the firm has decided to launch the product, there likely is at least a basic understanding of the costs involved, otherwise, there might be no profit to be made. The unit cost of the product sets the lower limit of what the firm might charge, and determines the profit margin at higher prices. The total unit cost of a producing a product is composed of the variable cost of producing each additional unit and fixed costs that are incurred regardless of the quantity produced. The pricing policy should consider both types of costs. Environmental Factors Pricing must take into account the competitive and legal environment in which the company operates. From a competitive standpoint, the firm must consider the implications of its pricing on the pricing decisions of competitors. For example, setting the price too low may risk a price war that may not be in the best interest of either side. Setting the price too high may attract a large number of competitors who want to share in the profits. From a legal standpoint, a firm is not free to price its products at any level it chooses. For example, there may be price controls that prohibit pricing a product too high. Pricing it too low may be considered predatory pricing or "dumping" in the case of international trade. Offering a different price for different consumers may violate laws against price discrimination. Finally, collusion with competitors to fix prices at an agreed level is illegal in many countries. Pricing Objectives The firm's pricing objectives must be identified in order to determine the optimal pricing. Common objectives include the following: Current profit maximization - seeks to maximize current profit, taking into account revenue and costs. Current profit maximization may not be the best objective if it results in lower long-term profits. Current revenue maximization - seeks to maximize current revenue with no regard to profit margins. The underlying objective often is to maximize long-term profits by increasing market share and lowering costs. Maximize quantity - seeks to maximize the number of units sold or the number of customers served in order to decrease long-term costs as predicted by the experience curve. Maximize profit margin - attempts to maximize the unit profit margin, recognizing that quantities will be low. Quality leadership - use price to signal high quality in an attempt to position the product as the quality leader. Partial cost recovery - an organization that has other revenue sources may seek only partial cost recovery.

 Survival - in situations such as market decline and overcapacity, the goal may be to select a price that will cover costs and permit the firm to remain in the market. In this case, survival may take a priority over profits, so this objective is considered temporary. Status quo - the firm may seek price stabilization in order to avoid price wars and maintain a moderate but stable level of profit. For new products, the pricing objective often is either to maximize profit margin or to maximize quantity (market share). To meet these objectives, skim pricing and penetration pricing strategies often are employed. Joel Dean discussed these pricing policies in his classic HBR article entitled, Pricing Policies for New Products. Skim pricing attempts to "skim the cream" off the top of the market by setting a high price and selling to those customers who are less price sensitive. Skimming is a strategy used to pursue the objective of profit margin maximization. Skimming is most appropriate when: Demand is expected to be relatively inelastic; that is, the customers are not highly price sensitive. Large cost savings are not expected at high volumes, or it is difficult to predict the cost savings that would be achieved at high volume. The company does not have the resources to finance the large capital expenditures necessary for high volume production with initially low profit margins. Penetration pricing pursues the objective of quantity maximization by means of a low price. It is most appropriate when: Demand is expected to be highly elastic; that is, customers are price sensitive and the quantity demanded will increase significantly as price declines. Large decreases in cost are expected as cumulative volume increases. The product is of the nature of something that can gain mass appeal fairly quickly. There is a threat of impending competition.

As the product lifecycle progresses, there likely will be changes in the demand curve and costs. As such, the pricing policy should be reevaluated over time. The pricing objective depends on many factors including production cost, existence of economies of scale, barriers to entry, product differentiation, rate of product diffusion, the firm's resources, and the product's anticipated price elasticity of demand. Pricing Methods To set the specific price level that achieves their pricing objectives, managers may make use of several pricing methods. These methods include:

Cost-plus pricing - set the price at the production cost plus a certain profit margin. Target return pricing - set the price to achieve a target return-on-investment.

Value-based pricing - base the price on the effective value to the customer relative to alternative products. Psychological pricing - base the price on factors such as signals of product quality, popular price points, and what the consumer perceives to be fair. In addition to setting the price level, managers have the opportunity to design innovative pricing models that better meet the needs of both the firm and its customers. For example, software traditionally was purchased as a product in which customers made a one-time payment and then owned a perpetual license to the software. Many software suppliers have changed their pricing to a subscription model in which the customer subscribes for a set period of time, such as one year. Afterwards, the subscription must be renewed or the software no longer will function. This model offers stability to both the supplier and the customer since it reduces the large swings in software investment cycles. Price Discounts The normally quoted price to end users is known as the list price. This price usually is discounted for distribution channel members and some end users. There are several types of discounts, as outlined below. Quantity discount - offered to customers who purchase in large quantities.

Cumulative quantity discount - a discount that increases as the cumulative quantity increases. Cumulative discounts may be offered to resellers who purchase large quantities over time but who do not wish to place large individual orders. Seasonal discount - based on the time that the purchase is made and designed to reduce seasonal variation in sales. For example, the travel industry offers much lower offseason rates. Such discounts do not have to be based on time of the year; they also can be based on day of the week or time of the day, such as pricing offered by long distance and wireless service providers. Cash discount - extended to customers who pay their bill before a specified date.

Trade discount - a functional discount offered to channel members for performing their roles. For example, a trade discount may be offered to a small retailer who may not purchase in quantity but nonetheless performs the important retail function. Promotional discount - a short-term discounted price offered to stimulate sales.

CHAPTER-2 COMPANY PROFILE Name: SONAL ENGINEERING PLASTIC FABRICATOR Business Philosophy of SEPF Enhance performance of existing business Explore the new opportunities Hunt new fields of business activities

Business Status of SEPF SEPF is a largest manufacturer of FRP gratings in India. SEPF is known for its best quality of storage tanks and chemical processing equipments. SEPF had supplied various FRP industrial products to every leading corporate of India. SEPF got sizeable export business since last 6 years. SEPF is only organization who got ISO 9000:2008 standard in Alibag tahasil.

Core area of business Operations in: Manufacturing of GRP and FRP industrial product. Service provider of repair maintainance, erection installation and annual rate contracts. Turn key projects. Designing and manufacturing of special purpose FRP equipments.

Main Clients of the company: TATA Steel limited Tata Steel Limited (BSE: 500470) (formerly Tata Iron and Steel Company Limited, abbreviated as TISCO) is an Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group. Its marketing headquarter is located at Tata Centre in Kolkata, West Bengal. It is the twelfth-largest steel producing company in the world, with an annual crude steel capacity of 23.5 million tonnes, and the largest private-sector steel company in India measured by domestic production

Reliance Industries limited Reliance Industries Limited (RIL) (BSE: 500325, NSE: RELIANCE, LSE: RIGD) is an Indian conglomerate company headquartered in Mumbai, Maharashtra, India. The company operates through three business segments: petrochemicals, refining, and oil and gas; other divisions of the company include textiles, retail business, special economic zone (SEZ) development and telecom/broadband business. RIL is one of the largest publicly traded company in India by market capitalisation and is the second largest company in India by revenue after Indian Oil Corporation.[2] It is also India's largest private sector company by revenue and profit. The company is ranked 99th on Fortune Global 500 list of the world's biggest corporations for the year 2012.

ESSAR Steel limited Essar Steel is one of the leaders in the country and abroad in the steel sector. The company has a number of international centres like the Minnesota Steel LLC, a company located in the USA, Algoma Steel in Canada, Greenfield projects in Vietnam, Steel plant in Indonesia, and Integrated steel plant Trinidad and Tobago.[4] It has a current capacity of 8.6 million tonnes which they plan to raise to 14 mt by 2011-12

ONGC Oil and Natural Gas Corporation Limited (ONGC) (NSE: ONGC, BSE: 500312) is an Indian multinational oil and gas company headquartered in Dehradun, India. It is one of the largest Asia-based oil and gas exploration and production companies, and produces around 77% of India's crude oil (equivalent to around 30% of the country's total demand) and around 81% of its natural gas.[2] It is one of the largest publicly traded companies by market capitalization in India.[3] ONGC has been ranked 357th in the Fortune Global 500 list of the world's biggest corporations for the year 2012.[1] It is also among the Top 250 Global Energy Company by Platts.[4] ONGC was founded on 14 August 1956 by the Indian state, which currently holds a 74.14% equity stake. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, and owns and operates over 11,000 kilometers of pipelines in the country. Its international subsidiary ONGC Videsh currently has projects in 15 countries

RCF limited Rashtriya Chemicals & Fertilizers Ltd. (RCF) (BSE: 524230)is a PSU (Public Sector Undertaking) in India under the Ministry of Chemicals and Fertilizers, Government of India based in Mumbai[2]. RCF is one of the leading producers of fertilizers in India and is a Miniratna company, a status awarded by the Government of India.

Uttam Galva Steel limited Uttam Galva Steels Ltd) is one of the largest manufacturers of cold rolled steel and galvanized steel in Western India. The company business of procuring hot rolled steel and processing it into CR and further into GP and Colour Coated Coils

JSW JSW Steel Ltd: is an Indian steel company owned by the JSW Group based in Mumbai, Maharashtra, India JSW Steel is among India's largest steel producers, with a capacity of 10 MT as of 2011. Sajjan Jindal led enterprise JSW Group is one of the largest business conglomerates in India with a strong presence in the core economic sector. It had grown from a steel rolling mill in 1982 and is presently a multi business conglomerate worth US$5 billion.

Aquapharm Chemical Pvt. Limited Incorporated in 1977 with the primary objective of manufacturing 'Desalting Kits' for the Indian Armed Forces. Product range expanded to include basic chemicals like Phosphonates, Biocides and Low Molecular Weight Polymers in addition to Water Treatment chemicals and services. Leading Water Treatment service provider in India for more than a decadeWater Treatment division sold in 1998 to Aquazur Ltd., U.K., a division of Nalco Chemicals, USA.

Excel Industries limited Since its inception in 1941, Excel Industries Limited has been known as a pioneer in the area of crop protection chemicals for the Industry as well as the farming community. Today it has successfully leveraged its strengths to emerge as a leader in a range of speciality and performance chemicals Thermax limited Thermax. D Ltd. is an Indian energy and environment engineering company based in India; and in Britain. It manufactures boilers, vapours absorption machines, offers water and waste solutions and installs captive power projects. Thermax is also a historic brand name of boilers, and the name of a former toughened-glass company.

Competitors for SEPF Sant Mechanical Industries Pvt. Ltd.

Cost-plus pricing: pricing is the simplest pricing method. The firm calculates the cost of producing the product and adds on a percentage (profit) to that price selling price. Skimming: In most skimming, goods are sold at higher prices so that fewer sales are needed to break even.

Ansari Industries

Limit pricing: A limit price is the price set by a monopolist to discourage economic entry into a market, and is iilegal in many contries. Loss leader: A loss leader or leader is a product sold at a low price (i.e. at cost or below cost) to stimulate other profitable sales. This would help the companies to expand its market share as a whole.

Mohan Polymer

Market-oriented pricing: Setting a price based upon analysis and research compiled from the target market. This means that marketers will set prices depending on the results from the research. Penetration pricing: Setting the price low in order to attract customers and gain market share. The price will be raised later once this market share is gained.

Plastic Engineering Works

Price discrimination: Setting a different price for the same product in different segments to the market. For example, this can be for different classes, such as ages, or for different opening times.

Premium pricing: Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price.

Perfect Plastic Fabricator

Predatory pricing: Aggressive pricing intended to drive out competitors from a market. It is illegal in some countries. Contribution margin-based pricing: Contribution margin-based pricing maximizes the profit derived from an individual product, based on the difference between the product's price and variable costs

History of SEPF: SONAL ENGINEERING PLASTIC FABRICATOR situated at Bhaimala, Post- Kamarle, Taluka- Alibag, District- Raigad. This is the proprietory concerned established in the year 1997. Mrs. Ankita Anil Mhatre is the proprietor of the company. Mr.Anil Chintaman Mhatre is the CEO of the company who is looking after designing of FRP industrial products. He is also involved in marketing as well as production. The company produced various FRP industrial products such as Storage tanks, Gratings, Cable trays and Chemical process equipments.

Safety: Safety is important for every industry rules must be obeyed by everyone in the industry to avoid harmful hazard. Each company has safety manager. Safety manager and supervisor maintain safety environment and employees as well as factory, the safety culture in SEPF is one of its kind has been developed looking into many potential hazard of manufacturing industry.

PERSONAL PROTECTIVE EQUIPMENTS: GAS MASK: Gas mask is provided with suitable absorbing chemical. This chemical absorbs exile gases and alloy only to oxygen. They filters the gases which dangerous for breathing. DUST MASK: It protects respiratory system from harmful chemical for breathing. APRON: Apron is used for protective of body and clothes clean. Aprons are made up of different material like PVC, cotton, rubber etc.

HAND GLOVES: Hand gloves are used for protective hand from heat chemical cut etc. The rubber hand gloves and PVC hand gloves used for hazard chemical handling. GOGGLES: Goggles are used for protecting eyes from heat chemical dust etc. HELMET: Helmet is used for protecting of head.

EAR PLUG: Ear plug are used for safety of the ear from the high noise in the industries. SAFETY SHOES: Safety shoes are for protection of the feet and lags from heat, electricity and feeling any hard material on the leg.

TO BE ASSURED BEFORE EXECUTION OF JOBS:

Wind direction

Fire extinguisher

Manual call point

Loud phone safety shower work carried out

CARE TO BE TAKEN BY EMPLOYEES: Understanding the job properly before working on it. Learn carefully the chemical used their hazard properties. Read and understanding notice board around factory. Used apron, helmet, safety goggles, gas mask, safety belts whenever necessary. Safety away from drug while working. Total manpower of SONAL ENGG.PLASTIC FABRICATOR is about 102 personeles from management to workers.

Supervisory(Technical) Supervisory(Non-Technical) Skilled Workers Unskilled Workers

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Besides this to do various jobs organization depute the contractor for extra manpower. Raw Material Information: Raw material contain RESIN and GLASS-FIBRE. The resin is having various types of Grades.As well as glass fibres had various forms such as glass mat,rowing threads,choppes and surface rowing. Besides this some sort of chemical and bondings are applied as per requirements. For sake of various colours pigments and dyes are used with resin.According to design haredwares are used for finished products. Products and Uses: 1.FRP gratings.FRP gratings are used as flowring in multifloored plant.It is also used as a steps for stair cases.

2.FRP Cable trays. FRP Cable trays are used to carry electrical cables in industrial plant. 3. FRP Storage tank. Many chemical plants are using to store chemicals with FRP storage tank. 4.Various chemical process equipments.According to requirement of client, SEPF designed and manufactured various chemical equipments.

MARKETING STRATEGY OF SONAL ENGINEERING Sonal engineering plastic fabricator is the manufacturer of Fibre Reinforced Plastic product which are of industrial application, such as Cable trays, Gratings, Storage tanks, Structures, Vessels, Processing equipments etc. Our clients are from various industries such as Chemical industry, Pharmaceutical industry, Steel industry, Fertilizer industry, Oil explorer industry. Our products are used for industrial purpose which could be very special. Naturally the specification could be vary customer to customer. We are manufacturing various products as per designs of our client. In short our products are tailormade. As to requirement and specification of client, it is to be manufactured. As our products are industrial and of special purpose, the marketing strategy is entirely different than, consumer commercial products. We produce product which are having large categories and different specification as per the requirement of clients. Where as consumer products are manufactured in single category at large scale. Hence they have to design their marketing strategy to sell large quantity of their products in open market which size is also large. The utility of our product is restricted to single client, where as utility of consumable products is in unlimited consumers. Naturally marketing of consumable product is masses oriented where as our marketing strategy is client oriented. We dont have multilevel marketing and we dont entertain multi level outlets. Where as manufacturer of consumable product have to maintain the chain of distribution like wholesellers, stockist, retailers etc. While marketing in our case, advertisement could not be useful tool for marketing purpose. In our line one could withstand only on quality of product. Generally manufacturer in our line enlisted themselves with reputed industries as vendor. While applying of vendorship one should have to give detail information about his organisation. This information contains technical, financial and legal registrations aspects of the organisations. After verifying the information provided to principle, the industry allotted the vendorship. Being a vendor the every enquiry of your dine could be sent to vendors by the principle company. Beside this, requirementor enquires published in newspapers and tenders are to be invited by various industries for their required products. In response to such enquires tenders are to be submitted to the companies with technical bid and commercial bid. We got special experience. Once we entertained any industry by supplying their requirement and if they satisfy with the quality of product, the officials of the industry recommended our

name to their sister concerns or allied units of their industry. It was also experienced that any officer who is aware about our quality, after leaving the company where he worked and joined any other industry, he suggest our name at time of the procurement of the require product, which would be of our dine. In short the quality of our product is unbeatable you can get better chance to get an valuable orders and your client base could be vide. We also participate in various exhibitions of FRP products. Where all types of people come along and observe your products. We got good platform to display our various products. We also notice that our other rivals having their capacity, skills etc. In such exhibitions. We come to know the various market needs. So that way such type of exhibitions make you aware about variety of product range as well as new techniques and different types of raw material available. We also tie up with the manufacturer of FRP products for certain deals. According to capacity to carry the manufacturing products of different category. We share the orders. Supposed if certain project may required storage tanks, different pipes and fitting, gratings, cable trays. Total volume could be beyond the capacity of single manufacturer. In such case we tie up other manufacturer and share the quantity with him as to production skill of particular category. If our skill and production quality superior in manufacturing of tanks and other one is having better craftsmanship in manufacturing of pipes and fittings than volume of tank was undertake by us and quantum of pipings and fittings were let up to him. Ofcourse such type of tie ups for certain jobs and on temporary basis. We also have contacts with various consultant who managing agencies while project errection for the industry who launch new projects and expansion of their existing projects. Such consultant recommend our name for particular product to interested company or industry. Such industry or company to visit our factory to observe our ability to produce or to manufacturing capacity Sonal Engineering Plastic Fabricator undertake annual maintainance contract. So regular clients asked the services of maintainance and repairings for their plant. As to our experience we found Domestic market is fair enough to fetch good profit margin. This is due to freight outward. Normally foreign clients asked the rates to their nearest port. So freight up to their port curtails our profit margin. And our experience is that from our factory to Nhava Sheva port we have to pay handsome amount for local freight. So considering the amount of freight grabs our profit margin.

SWOT ANALYSIS Strength: 1.It is having 40% more strength as compare to conventional material. 2.It is also having very light weight. 3.Since this is light weight it is easy to install and erect.

4. This is NON-CORROSIVE, hence it is maintaince free. Weakness: 1)Lack of skilled labours

SEPF is manufacturing FRP industrial products as per the requirement of the customer. That is why there are tailormade products.The design could be vary as per requirement and need of the customer. Hence the prices could be vary as per requirement of the customer. Normally, client invites the tenders from various manufacturers. That is why the client is having very commanding role about the prices because he would have more choices. The client of SEPF are industrial houses and hence he could have good technical knowledge. Since clients knows technicalities, there are very short chances to dectate price terms by manufacturer. As and when the design is critical, there could be chance to manufacturer to dectate price terms. Overall prices are decided by market conditions and involvement of other players who completing the tenders. But it is also true the client who are industrial houses are aware about capacity and integridity of FRP manufacturer. So they preferred product quality, accuracy and durability of FRP product. Some products such as piping and fittings could have better margin, since such pipings are specially designed for their specific purpose. So some products which got specific role in the manufacturing process are designed specially, such products could get high prices. SEPF launched GRP pultruted products which are having some important features as follows, Light weight and heavy strength. Eye catching and bright colours. Non corrosive and hence long lastings. Easy to install and errect. No maintainance cost. Since these GRP products are machine made, the cost effective measures could be applied and manufacturing cost could be controlled. SEPF could be hunt the large market. At present there are very less players in the market.