CHAPTER:-1 INTRODUCTION OF COMPANY

OVERVIEW
Corporate head: ITI DOORVANINAGAR, BANGALORE Bangalore (Karnataka) Naini (near Allahabad UP) Rae Bareli (UP) Mankapur (UP) Palakkad (Kerala) Srinagar (Jammu & Kashmir) Network system unit: - Bangalore Regional officers: - New Delhi Bangalore Kolkata Lucknow Mumbai Chennai Hyderabad Bhubaneswar Bhopal Ahemdabad Kochi Supported by 36 area offices all over the country Manpower R&D : - 1294 : - Bangalore, Naini, & Mankapur

Manufacturing units: -

Quality system: - ISO 9000:2000, ISO 14001:2004

ITI A GLIMPSE
ITI Ltd is Indias largest and first public sector unit developed to manufacture telecommunication products with the latest technology. This is bedrock upon which India is launching its contribution to the worlds telecommunication revolution. ITI Ltd is the premier public sector undertaking of the country. It was the first public sector unit to be opened by government of India after independence in the year 1948-49. It was located at Bangalore. The activities of this public sector were manufacturing mechanical telephone instrument & exchanges Due to advancements in technology in the field of electronics, ITI started its expansion program in the field of electronic in 60s. Communication is our business was the motto adopted by ITI. With this motto in mind, ITI started its business in communication field. From a small beginning, it has grown in to a month multiunit enterprise with manufacturing units at Doorvani Nagar & electronics city in Bangalore, Mankapur, Naini, & Rae Bareli in UP, Pallakad in Kerala & Srinagar in J & K, in addition to these manufacturing unit located at Bangalore for undertaking installation & maintenance of telecommunication equipments through the country which is now renamed as Network communication Business group. The company has a strong in house R & D infrastructure attached to the independent business group. The main R & D divisions are located at Bangalore & Naini. Looking forward at the technology, the R & D is engaged in continuous development & absorption technology. A large number of companys products are covered under the Self Certification Scheme by the major consumer i.e. Department of Telecommunication.

ITI IS KNOWN FOR

Manufacturing of telecommunication equipments Value added services Turnkey projects. Network management Research and Development Mobile Radio Trunked service Software Application.

MISSION
To be the leader in the domestic market and an important global player in voice, Data and Image communication by providing total solution to customer. To build on core competencies to enter business areas.

Organisation chart

Chairman & Managing Director

K.L. Dhingra.

Director (Marketing) R.K. Agrawal

Director (Finance) Ravi Khandelwal

Director (Production) K.K. Gupta

Director N.K. Joshi Director S.P. Kochar Company Secretary Mrs. Rachana Chaudhary. Independent Director Prof. M. Balakrishan Mr. T.S. Narayanasami Dr. S.K. Chaudhuri.

MANAGEMENT OF CHAIN
Ministry of Telecommunication Chairman Managing Directors Board of Directors Executive Directors (EDR) General Manager (Head of unit) Assistant General Manager Deputy General Manager Chief Manager Manager Deputy Manager Assistant Manager Engineer Assistant Engineer Staff (Employees)

CHAIN OF NEW UNITS

In addition to the present unit at Bangalore, manufacturing the telephone & transmission equipment, it has grown in to a multiunit enterprise with other manufacturing enterprise with other manufacturing units established at Doorvani Nagar & electronic of Bangalore, Mankapur, Naini, Rae Bareli, Pallakad in Kerala & Srinagar in Jammu & Kashmir. The company now manufactures the entire range of telecommunication equipment right from telephone instruments to equipment for Satellite Earth Stations catering to the DOT, MTNL, Defense services, Railways & state electricity boards. It also tries to meet the requirements of the private customers for automatic exchanges. Besides this ITI also produces the road-traffic signals of high reliability & variety of tonometry & tele-control equipment. The latest production of ITI today is SDH & WILL. In future ITI is planning to switch over to ATM from SDH. Apart from supplying to the domestic market ITI has also taken up Turnkey projects abroad & has been exporting its products as many as 20 other countries. The company has received fewer tenders as compared to global competition. On the basis of its quality & price, it is striding towards attaining organizational excellence. ITI is today n market-oriented company, growing in to total solution provider. It is striving towards achieving excellence.

SPECIAL ACHIEVEMENT
During the year under review, the company has produced 3.06 million lines of switching equipments that included 200kl of new C-DOT MAX XL Exchange. Bulk production of SMPS to tune of Rs 28.70 crore & bulk production of Digital Microwave (SDH) equipments were its major achievements. Optical fiber systems (SDH), being newly inducted in the Indian network were supplied for the first time. The company is placed first for supply of 1.69 million line of new technology exchange & for supply of 770 numbers of 2/140 Mbs Optimux along with regenerator.

PLANTS
1. BANGALORE PLANT (Established in 1950) 2. SRINAGAR PLANT (Established in 1970) 3. NAINI, ALLD PLANT (Established in 1971) 4. RAE BARELI PLANT (Established in 1973) 5. PALAKKAD PLANT (Established in 1975) 6. MANAKAPUR PLANT (Established in 1980)

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AWARDS
Excellent performance PSE awards in the year 1997-98 given by INDIAN INSTITUTE OF INDUSTRIAL ENGINEERING. Best CHIEF EXECUTIVE GOLD AWARD by INTERNATIONAL GREEN L & SOCIETY on September 17, 1998. FACT MKK NAIR PRODUCTIVITY AWARD by KERALA STAT

PRODUCTIVITY COUNCIL. INSPECTION SCHEME (AIS) of PALAKKAD plant has been certified under APPROVER SUPPLEMENT OCB 283 crore equipment to DOT, MTNL. INDUSTRIAL SAFETY AWARD by NATIONAL SAFETY COUNCIL.

JOINT VENTURES
Widening its area of operation, ITI teamed up with PACIFIC INTERNATIONAL COMPANY to manufacture micro earth stations. The result is ITI equatorial Satam Ltd. (IESL); beside this earth station IESL also undertakes turnkey projects in various parts of the world. ITI Communication Pvt. Ltd. (ITIC) is a joint venture company set up in Singapore with the main objective of promoting exports of ITI products to other countries. Fibcom India Limited, New Delhi, has also made joint venture with NKT Denmark for SDH/ PDH fiber optical product The ITI has collaborated with a number of foreign-based companies having the latest technology. They are as follows. Name of the Company M/s Siemens/Nee M/s Ericson M/s AWA Country Japan Sweden Australia Technology For Marr/ PCM. For level measuring unit. For SCATS road traffic system. 11

M/s Nee M/s Alcatel M/s Comedge

Japan France Singapore

For PCM (26 version) For large digital Switch For cordless phones

ISO 9000 SERIES STANDARDS

The International Organization for Standardization (ISO) is the specialized international agency for Standardization, at present comprising the national standard bodies of 91 countries including India. ISO is made up of approximately 180 Technical Committees. Each technical committee is responsible for one many areas of specialization. The object of ISO is to promote the development of standardization & related world activities with a view to facilitating international exchange of goods & services & to develop cooperation in the sphere of intellectual, scientific, technological & economic activity. The results of ISO technical work are published as international standards.

WHY THEY SHOULD BE USED?

The ISO 9000 is an opportunity & a challenge to developing nation. They can now know with a good degree of certainty the level of quality that purchasers expect. They can also learn the prerequisites & characteristics of good quality assurance & quality management. The challenge to the developing nation is to motivate processors & manufacturers to adopt & implement these standards & to establish a credible national quality registration scheme, which will be recognized by the trading partners. With the increasing number of markets & industries, third party quality assessment & registration is becoming a pre-requisite for doing the business, ISO 9000 is considered the minimum acceptable level for a supplier, & those who cannot demonstrate this level may not have difficulty in selling in certain markets; they may be barred from those markets.

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Without ISO 9000: registration can face higher insurance rates or be denied insurance in some markets. In addition 9000: series standards also Motivates exporters Sets a baseline Establishes reasonable standard for government procurement Focuses training & professional development Sets general markets procedure for regulating health & safely Reduces time consuming audits by customer & regulators Give marketing advantages & EC 92 positioning Raises levels of motivation, co-operation, workmanship & quality awareness Improves efficiency, reduces scrap & rework

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MAJOR LANDMARKS
YEAR 1971.72 1973.74 1980-81 1981-82 1986-87 1986-88 1989-90 ACHIEVEMENTS Start of production. Production of Telephone developed in house. Assoc ham awards for promotion of ancillary industries Establishment of computer centre Collaborations. Face to update Telephone manufacturing. Technology & establishment of P.C.B. Single & Double sized P.C.B. & production of 140 mibt optical line equipment & regenerator in collaboration with M/s Denmark. 1991-92 Introduction of 565-mibt optical line equipment & manufacturing of in-house design Telephone model ME-91 & TPS -90 1994 1995 1996 1997 1998 1999 Advanced of optical line equipment. Implement Q.D.C. & ISO 9000. Collaboration with M/s Fibcom India Ltd. & Solar photovoltaic were manufactured. Developed MARR & manufactured it along with 8 mbit & 140 mbit opticmux equipment. Production of DDF focus version. Started in the worlds latest equipment i.e. Digital loop Carrier (PDH) & production of 2/15 single channel equipment. 2000 Developed & production of D.L.C. (SDH) & Access terminal along with the production of the central office terminal racks. 2001 2002 COT (central office terminal) reckers system. Development of fiber Distribution frame. 14

2003 2005 2006 2008

Development of FORDAR for defence. Calibnation with AC CATFC for manufacture of ADSC. STM-1, STM-4, STM-16 STM-1. STM-4, STM-16, Transmission equipment DWDM.

CUSTOMERS
About 90% of the ITI products are supplied to BHARAT SANCHAR NIGAM LIMITED (Formally known as DEPARTMENT OF TELECOMMUNICATION / DOT). The other significant customers of the company are as follows. Bharat Sanchar Nigam Limited (BSNL) Videsh Sanchar Nigam Limited (VSNL) Maha Nagar Telephone Nigam Limited (MTNL) Railways Defence Banks Corporate Factories / Offices Steel/ Power/ Oil Sector General Public

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IMPLEMENTATION OF GOVERNMENT POLICY OF ECONOMIC LIBERALIZATION AND ITS CONSEQUENCES

The monopoly of ITI was broken by Govt. of India in 1991 as by opening the door to the private sector & thus competition emerged. ITI has been selling its instrument since 1968 to the Govt. sector, previously the Telecom sector was under total control of Govt. with change and open door policy of Govt. selling pattern has been changed therefore ITI has also entered the market and is facing competition with others. Some major problems faced by ITI are as follows Missing good professionals in marketing area Lack of availability of raw material on time Lack of autonomy to take decision Need more innovation and technology upgradation Need more employee support Large quantity of waste products Lack of awareness in workers Fund crisis Low market potential

REASONS FOR PROBLEM

Faulty Government policy Non availability of orders Fund crisis Excessive overhead expenditure Lack of publicity and advertisement Lack of sales promotion schemes Lack of upto date features as per customers demand

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COMETITIVE BACKGROUND
Till 1991, ITI enjoyed monopoly, but very soon after 1992 the position was completely changed. It was also one of the sectors that had been liberalized. This sector was thrown open to the private sector and thus competition stepped in ITI has been selling basic telephone instruments and transmission equipments since 1968 to the Govt. sector. Till now, the telecom sector was entirely in the control of the Indian Govt. but with the liberalization and open door policy the selling pattern changed and ITI had to face competition with the major players like the following :Competitors of Telephone instruments: BPL BEETEL TATA PANAPHONES ORPAT PUNWIRE BEL WETSON

Competitors for Radio Equipments: ARM NATALCO PCL MCS PUNWIRE SHYAMWIRE

Competitors for Transmission Equipments: HFCL DSC (at present TELLABS)

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NATALCO UTL BEL HTL FUJITSU ALCATEL

Competitors for EPABX System

BPL TELCOM L & T LIMITED L G ELECTRONICS NORTHERN TELECOM TATA TELECOM SIEMENS INFORMATICS SYSTEM LIMITED SAMSUNG ELECTRONIC CORPORATION

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BIO-DATA (ITI-NAINI)
Name Business address Phone no. Fax no. Website Email Year of registration Registered office ITI Ltd Naini ITI Ltd Naini Mirzapur Road, Allahabad 211010 0532-2687401-07 0532-2687345, 2686008 itiltd-india.com iti_nni@itialld.co.in 1971 New Delhi, Bangalore, Kolkata, Lucknow, Mumbai, Chennai Hyderabad, Bhubaneswar, Bhopal, Ahmedabad, Kochi. Government council India). Head of the Unit Employee strength Product line Market Competitors Mr. P.K. Gupta. 1294 Various models of Telephones & different types Of Transmission Equipment. BSNL, VSNL, MTNL, NTPC, ONGC, Railway, Defence, Corporate & General public HFCL, FIBCOM, BEL, TEJAS, SIEMMEMS, PUNCOM, HUAWEI, ZTE, ETC. Ministry of Telecommunication. (Govt of

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MANAGEMENT OF ITI LTD :- NAINI UNIT

UNIT HEAD Mr. P.K. GUPTA DEPUTY GENERAL MANAGER (W&C) Mr. A.K. AGRAWAL CHIEF MANAGER FINANCE Mr. R.K. CHAWLA

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ITI Ltd. NAINI

COMPANY PROFILE
ITI Ltd., Naini was established in the year 1971 as the second senior most of the ITI group. It is one of the giants of the Telecom Industry, which is situated 16 kilometers from the holy city of Allahabad. It employs a large of staff members including officers. Since it is situated 16 kms from the main city, it has provided the employees with buses as the mode of transport. It also provides other facilities like I.T.I. colony for lodging of the workers, medical facility and schooling facility for the employees ward etc. In Naini there are four departments, namely, Telephone Equipment Division (TED), Telephone Instrument Division (TID), Central Division. Research and Development (R&D). Beginning with a moderate production of 1.66 crore in 1971 it reached to 306 crore in 1992-93. But in 295-96 it received a major setback just after the implementation of liberalization policy. During the year the performance of I.T.I. Naini division dropped drastically. The total sales were estimated at 73 crore in the year 1995-96 in the 1998-99 the sales boomed to 10 crore.

MANPOWER
Manpower profile as on 1st June 2011:OFFICER NON-OFFICER TOTAL STRENGTH 791 503 1294

The value, ethics, interpersonal chemistry and congenial working environment make this organization a cohesive, articulate and goal directed unit. The collective wealth of experience of the management personnel in the field of production, quality, control, formulation, marketing, sales, finance and accounts well for the organization future. The work culture aims to mobilize, direct and sustain individual efforts and encourage active participation of every member of the organization. Continuous 21

efforts are being made to enrich human resource with the aid of orientation programmes,

RESEARCH AND DEVELOPMENT

ITI has the most modern, well-equipped & technologically advanced R & D division. The R & D is backed by a modern & systematic computer laboratory, automatic test system laboratory, micro electronic & quality assurance laboratory. It is also using SMD machine printed card assembly that has a capacity of 5000 components/hour. The raw materials are accepted for production. Management wants to charge prices that will least cover the total production costs at a given level of production. Factors like overhead, material cost, laboratory costs, excise duties etc. determine the price of a product. Manufacturing only after it is found to he of the best grade by the in-house and independent laboratories. Finished products are sent to the market only on approval of the a department.

HRD AND WELFARE ACTIVITIES

There is a well equipped training centre or the HRD centre where various kinds of training takes place for the upliftment of trainees of professional courses by experienced officials in the respective field. The apprentices of ITI are students from Management, Engineering and also for Diploma courses. The training classes are conducted throughout the year. Hence there is a special training centre to conduct and coordinate this kind of training. ITI has implemented many welfare schemes for the upliftment of the employees like medical facilities, canteen facility, transport facility, safety and bonus etc.

PERSONNEL AND INDUSTRIAL RELATIONS

The companys faith in harmonious industrial relations was characterized by readiness of the Union Officers Association

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Management to work in union for growth of the company. Employee morale and high level of commitment was the key factor in achieving the highest level of performance. A satisfied workforce is the greatest asset for any organization. The degree of satisfaction could be judged by analyzing the industrial relations climate of the company. Now for the last ten years there is only one trade union in the unit and the election of office bearers is held every year by a secret ballot. This practice has lead to a peaceful atmosphere in the organization.

WORKERS PARTICAPATION IN MANAGEMENT

The ITI unit has given full participation to the workers representatives to have equal rights to raise their issues and grievances in the following areas : Sports Council Welfare Committee Provident fund Committee Canteen Management Committee Community for the award of the best work to the workman for outstanding performance each year. Death Relief Fund Committee House allotment committee for workers.

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SWOT ANALYSIS OF ITI LTD. NAINI

STRENGTH Company name Product quality Full government support Oldest & well established public sector company Huge capacity of manufacturing Efficient after service OPPORTUNITY BSNL communication to provide telephone Connection on demand Skilled employees are there New opportunities to enter into cellular phone services are there They can also enter into electronic manufacturing Lack of proper customer surveys. Entry of new competitors. parts THREATS Poor service quality Not able to meet deadlines Not able to meet the demand. Does not have good coordination with the dealers and retailers Lack of teamwork spirit sales WEAKNESS Low non-DOT market share High pricing. Lack of proper marketing strategy, ineffective & inefficient promotional strategy. Unable to maintain product quality Overstaffing of employees

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CHAPTER:-2 CONCEPTUAL DISCUSSION

MARKETING
Marketing boasts a rich array of concepts and tools

WHAT IS MARKETING?

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Marketing, more than any other business function, deals with customers Understanding creating, communicating and delivering customer value and satisfaction are at the heart of many modern marketing thinking and practice. We may define MARKETING as. Marketing is the delivery of customer satisfaction at a profit Two fold goal of marketing is to attract new customers by promising superior value and to keep current customers by delivering satisfaction. What does the term Marketing mean? Many people think of marketing only as selling and advertising. It is no wonder, every day we are bombarded with television commercials, newspaper ads, direct mail campaigns, Internet pitches and sales calls. I however selling and advertising is only the tip of the marketing iceberg. Although they are important, they are only two of many marketing functions and are often not the most important ones. Today, marketing must be understood not in the old sense of making a sale telling & selling but in the new sense satisfying customer needs selling occurs only after the product is produced By contrast, marketing starts long before a company has a product.

Social definition of Marketing:We define Marketing as a social and managerial process where by individuals and groups obtain what they need and want through creating and exchanging products and value with others.

Managerial Definition:Pater Drucker, an eminent management theorist puts it this way Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas goods, services to create exchanges that satisfy individual and organizational goals

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ITI NEED FOR THE MARKETING DEPARTMENT

Till 1993-94 ITI enjoyed being the only producer in this field of Telecommunication in India. It had the power of monopoly, which was snatched away as the Governments policy was introduced. Previously ITI was producing and the market was buying it at the price at which it was being offered and desired by ITI. With the entry of competitors. ITI felt the need for a Marketing department. Hence in 1994, in the month of April the Marketing department was established. Its main challenge is to bring back the lost glory of ITI. For this they are supposed to keep up to date the changing answers of the following five questions: What business we are in? Who are our main customers? What does your customer want and desires? How can we best distribute our products to then? How can we make communications with them more efficiently?

MISSIONS AND OBJECTIVES

The company entered the New Year with an objective of achieving new horizons in the year 2000. It entered the order book position of Rs. 1000 and had set an internal production target of Rs. 2000 crores for the millennium year 2000. The Company rollouts business plans, which will have greater focus on the emerging technologies as a result of convergence of communication and computing. The thrust of the company will be on providing turnkey solutions for it and data communications. The company has launched a new millennium with the following aim : To increase Productivity To achieve Profitability To accept Parivartan

A new operation called Operation Chetna has been introduced which aims at increasing the following:27

Profitability Rejuvenation Repositioning Creation of demand Creation of product image and personality Mass awareness about the product Provision of efficient after sales service Periodic arrangement of marketing research Product modification and diversification as per customers specification Increase in sales Profits through customer satisfaction Generate demand for telecom products through innovation To become a strong service provider with major business thrust in telecom network operations and value added services. Strengthen the technology scanning capabilities to benchmark their products / services against global standards, identify new products, enable better maker buyer decisions and identify potential partners.

Thus the missions and objectives may be stated as under :-

Achieve global quality standards in all the products in the shortest time. Introduce effective planning and control system for achieving delivery schedules, streamlining production over the whole year and better inventory control.

Create an environment that cares for the individuality and dignity of employees. Create a sense of achievement and involvement in the company.

Marketing Plan
The marketing plan operates at two levels. The strategic marketing plan lays out the broad marketing objectives and strategy based on an analysis of the current market

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situation and opportunities. The tactical marketing plan outlines specific marketing tactics including advertising, merchandising, pricing channels and service.

Market Oriented Marketing Strategy

Market oriented marketing strategy is the managerial process of developing and maintaining a viable fit between the organization objectives, skills and resources and its changing market opportunity. The aim of strategic planning is to shape the companys business and product so that they yield target profits and growth. It is the marketing strategy that decides the success at the business unit level which in turn decides the total corporations success. The linkage between marketing strategy and overall corporate success is indeed direct and vital. And in this linkage lies the significance of marketing strategy. To understand strategic planning, we need to reorganize that most large companies consists of four organizational levels: Corporate level Division level Business unit level Product level

Corporate headquarter is responsible for designing a corporate strategic plan to guide the whole enterprise it makes decisions on which businesses to start or eliminate. Each division establishes a plan covering allocation of funds to each business unit within the division. Each business unit develops a business unit strategic plan to carry that business unit into a profitable future. Finally, each product level (product level line, brand) within a business unit develops a marketing plan for achieving its objectives in its product market.

Motto of Mktg. Department

Making waves in communication

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Establishment of ITIs Marketing Department

The marketing system of ITI is in its infancy days. The requirement of this very section was realized when many rival companies entered in the same business area due to adopting liberalized economy by Govt. of India. There fore this department came into existence in April 1994. The another reason to establish marketing division is to get series of ISO certificates so that the product can be sold in global market.

MARKETING Inter relationship with other departments PRODUCTION CONTROL (X) To get delivery schedule of Standard / Existing products. SYSTEM / CUSTOM ENGINEERING For technical compliance, equipment configuration, technical literatures, equipments, charts and related matters. TECHNICAL COSTING Cost break up of existing products as well as newly developed products. In addition it will also provide competent level costing for the purpose of spare selling. SALES (X) For the feedback of dispatches and payments. R&D For technical clarifications related to customer made billed products required by the customers. FINANCE

For arranging bid security against BSNL / NON BSNL tenders. MARKETING PROCEDURE OF ITI, NAINI REVIEW OF TENDER STAGE

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The function of the marketing begins with the seeking for the tender & then receiving the tender from the customers, which may be any of the following. Bharat Sanchar Nigam Limited Direct from Institutional Customers Corporate marketing section Regional offices These above mentioned sources of enquires may be of two types. Enquiry inviting tender bids Urgent requirements of the customer.

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TENDER ENQUIRY
After the receipt of the tender enquiry the marketing department studies & if the requirements is different, a preliminary meeting. For taking decisions & a final decision is taken. Tender document is taken. Tender document is then sent to the system engineering department. Technical compliance statement, equipment configuration & technical questionnaire are prepared by the system engineering department after getting the tender document by the marketing department & is again sent back to the marketing department for further action. The marketing department finalizes the point to point compliance of commercial terms. If any clarification is required, the same is obtained from the customer. Delivery schedule is taken from divisional head / concerned shop in charge / production control. After receiving the configuration from the system engineering the bid rate is finalized in consultation with the technical costing & management. On receipt of all the above information the tender form is filled up & all the relevant information is attached to it as cited in the bid form. Finally the tender is submitted to the purchaser. At the time of tender opening, generally one representative from marketing / regional offices is present. Comparative bids statement is also prepared.

REVIEW ON RECIEPT OF ORDER

On receipt of Letter of Intent (LOI) or Advance Purchase Order (APO) copies are sent to sales (X) and ink signed copy to DM (BR). The marketing departments sends APO / LOI acceptance to customer after getting the feed back information, delivery schedule, and price schedule & price schedule & equipment details as acceptable to us.

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On receipt of the firm order, PO copies are sent to Sales (X) for dispatch advice & also to the concerned sections & ink signed copies to DM (BR) Marketing department also participates in the monthly review meeting for delivery schedule & customer related problems coordinated by production control.

Present marketing strategy of ITI:The function of marketing department begins with seeking for the tender, then receiving the tender from the customers come from: Bharat Sanchar Nigam Limited

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Direct from institutional customer Corporate marketing section Regional offices

After receiving the tender they rotate a circular to plan and produce their product according to norms. If there is any doubt regarding the order, they contact marketing department, otherwise get the technical compliance statement requirement and technical leaflet. After checking all the technical aspect by system engineering department delivery schedule is made by production department so that the order can be completed within timeframe. After this the material list is sent to technical department. Then it is transferred to purchase department to purchase material. After getting the order marketing department issue an order copy to the sales department for the execution, get details of material supplied against respective order from the sales department. By supply of furnished product to the related concern and received by that firm within time work of marketing department use to complete. Theoretical backdrop and literature review about the project is required Product under study Product market Various transmission equipments BSNL & NON BSNL (ONGC, VSNL, MTNL, Railway, Defence, Electricity board, Private offices, General public)

Earlier status of the organization - :

DOT (now BSNL) was the only to establish infrastructural facility of telecom in the country The telecom field was reserved only for the public sector Being public sector ITI enjoyed full support of Govt. It produces product as per demand of DOT.

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There was a positive co-ordination between DOT & ITI as a result it was the Profitable public sector enterprise.

Present status of the organization -:

ITI is one the largest sufferers of the liberalization policy. Apart from ITI, BSNL is purchasing products from other companies. ITIs market share is decreasing due to reduction of orders. ITI is suffering due to high labour / overhead cost.

OBSERVATION
By analyzing annual reports and other documents wee can observe that in this cut throat competition ITI is continuously incurring loss due to its competitors. So to move up ITI should redefine its marketing strategies against the present scenario of liberalized economy to capture its old market share. The major buyer of the telecommunication products is the Bharat Sanchar Nigam Limited (BSNL)/ Department of Telecommunication (DOT). The BSNL has changed purchase system with the changed policy of globalization. Earlier BSNL used to purchase the products from ITI only, but now it is providing equal opportunities to all the manufactures of telecommunication products. The BSNL has now adopted the various marketing strategies like Tender Purchase System to have better quality product at a lesser price. ITI has adopted various marketing practices like -: Through open tenders Through distribution channel By direct enquiries from customers Through BSNL circles.

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Strategies which ITI marketing department should adopt Targeting Strategy

Decision about targeting centre on two major strategies-the concentration strategy and the multisegment strategy. Whether a company chooses one or other, the decision should be based on a clear understanding of company capabilities and resources the nature of the competition and the characteristics of the product market.

Concentration Strategy
When an organization directs its marketing efforts towards a single market segment by creating and maintaining are marketing mix it is employing a concentration strategy. The main advantage of the concentration strategy is that the firm can analyze the characteristics and needs of a distinct customer group and then focus all its energy on satisfying that groups needs. A firm can generate a large sales volume by reaching a single segment. Concentrating on one segment also means that a company puts all its eggs in one basket clearly a disadvantage. If a companys sales depend on a single segment and the segments demand for the product declines, the companys financial strength declines as well.

Multisegment Strategy
An organization directs its marketing efforts at two or more segments by developing a marketing mix for each selected segment. After a firm uses a concentration strategy successfully in one market segment, it sometimes expands its efforts to additional segment. A business can usually increase its sales in the aggregate market through a multistage segment strategy because the firms mixes are being aimed at more people the company with excess production capacity may find a multisegment capacity advantageous because the role of products to additional segments may absorb this

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excess capacity. On the other hand, a multisegment strategy often demands a greater number of production processes, materials and people thus production costs may be higher than with a concentration strategy. A multisegment strategy using firm ordinarily experiences higher marketing costs. Because this strategy usually requires more research and several different promotion plans and distribution methods, the costs of planning, organizing, implementing and controlling marketing activities increase.

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CHAPTER:-3 PRICING POLICIES

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INTRODUCTION TO PRICING
Pricing is perhaps the most important component in the marketing mix. while all other elements in the marketing mix are cost factors, price is a revenue or income. Pricing determines the viability of any business project because the demand and sales revenue depend on the price. It is equally important for profit making and non-profit making organizations. Fixing price is a problem for both.

WHAT IS A PRICE?
Price is commonly known as the exchange value of a product or service expressed in terms of money. Price is paid for whatever services of products we receive, such as rent for a house, fee of the Doctor, interest for the money etc. Whatever compensation we pay for a particular product or service, we call the same as price in the strict sense of the term. Price can be considered as the level between the buyer and the seller regarding what catch item must get. Price is a device for translating into quantitative terms the perceived value of a product / service to the customer. Throughout most of history, prices were set by negotiation between buyers and sellers. Fixed price policies - setting one price for all buyers is a relatively modern idea that arose with the development of large scale retailing at the end of the nineteenth century. Now some one hundred years later, the Internet promises to reverse the fixed pricing trend and take us back to an era of dynamic pricing charging different prices depending on individual customer and situations. Price is the only element in the marketing mix that produces revenue. Price is also one of the most flexible elements of the marketing mix. Price can be put in other words as-:

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Total market offerings = Bundle of Expectations / satisfactions = Price

IMPORTANT OF PRICING
Pricing constitutes one of the four factors of marketing mix is an indicator of its importance in the marketing programme. Price is equally important to both the seller and buyer. Price denotes the value of the product / service expressed in terms of money. The exchange of goods and services for transfer of ownership is possible only when the buyer and seller settle the price and buyer agrees to pay or pays for it. The demand and supply theory in economics is purely based on price mechanism. The supply and demand conditions in the market is influenced by price, or in other words price will changed according to demand and supply position in the market. Price is the regulator of profit, production and distribution. Price also regulates the consumption of a product to a very great extent, because price is the main factor in making buying decisions by buyers. Pricing also influences the marketing objectives of the company. Many areas of marketing are directly influenced by pricing, such as Sales volume, Profits, Trade margin, Return on investment, Product image, Sales promotion strategies etc. pricing is also used as a sharp weapon in the marketing strategy in the competitive market.

FACTORS AFFECTING PRICING

There are many factors, which would affect the pricing decisions. These can be grouped into as internal or external factors. Most of the internal factors have a direct relationship with the objective of pricing. For instance, the image of the company has a direct effect on the pricing. The internal factors are the factors, which are from within the organization & are controllable by the management. The external factors are those concerned with customers, competitors in the market in particular. These

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factors especially competition, government policy and control etc. have to be taken care of while formulating pricing strategies of the company.

INTERNAL FACTORS AFFECTING PRICING DECISIONS MARKETING OBJECTIVES

Before setting price, the company must decide on its strategy for the product. If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price will be fairly straight forward. Thus, pricing strategy is largely determined by decisions on market positioning. At the same time, the company may seek additional objectives. The clearer the firm is about its objectives, the easier it is to set price. Examples of common objectives are survival, current profit maximization, market share leadership and product quality leadership.

MARKETING MIX STRATEGY

Price is only one of marketing mix tools that a company uses to achieve its marketing objectives. Price decisions must be coordinated with product design, distribution and promotion decisions to form a consistent effective marketing program. Companies often position their products on price and then base other marketing mix decisions on the prices they want to charge. Here price is a crucial product-positioning factor that defines the products market, competition and design. Many firms support such price positioning strategies with a technique called target costing, a potent strategic weapon. Target costing reverses the usual process of first designing a new product, determining its cost, and then asking. Can we sell it for that ? instead it starts with an ideal selling price based on customer consideration, and target cost that will ensure that the price is met.

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Other companies de-emphasize price and use other marketing mix tools to create nonprice positions. Often, the best strategy is not to charge the lowest price, but rather to differentiate the marketing offer to make it worth a higher price.Thus the marketer must consider the total marketing mix when setting prices.

COSTS
Costs set the floor for the price that the company can charge for its products. The company wants to charge a price that both covers all its costs for producing, distributing and selling the product and delivers a fair rate of return for its effort and risk. A companys costs may be an important element in its pricing strategy. Companies with lower costs can set lower prices that result in greater sales and profits. A companys costs take two forms, fixed and variable. Fixed costs (also known as overheads) are costs that do not vary with production or sales level. Variable costs vary directly with the level of production. Total costs are the sum of fixed and variable costs for any given level of

EXTERNAL FACTORS AFFECTING PRICING DECISIONS THE MARKET AND DEMAND

Whereas costs set the lower limit of prices, the market and demand set the upper limit. Both customer and industrial buyers balance the price of a product or service against the benefits of owing it. Thus before setting prices, the marketer must understand the relationship between price and demand for its product.

COMPETITORS COSTS, PRICES AND OFFERS

Another external factor affecting the companys pricing decisions is competitors costs and prices and possible competitor reactions to the companies own pricing moves.

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OTHER EXTERNAL FACTORS

When setting prices, the company must also consider other factors in its external environment. Economic conditions can have a strong impact on the firms pricing strategies. Economic factors such as boom or recession, inflation and interest rates affect pricing decisions because they affect both the costs of producing a product and consumer perceptions of the products price and value. The company must also consider what impact its prices will have on other parties in its environment. How will resellers react to various prices? The company should set prices that give resellers a fair profit, encourage their support and help them to sell the product effectively.

PRICING POLICIES
The management may decide on the policies to be formulated for pricing its products. Pricing can be based on the need of the consumers, or on the cost of production and marketing or on the market conditions. Need-based pricing is adopted by the government for public services like health, education etc. cost based pricing or mark up pricing is followed by many companies, such as supply of items on a periodic/ contract basis and products which less competitors etc. the market based pricing is necessary for consumer goods. Depending upon the products and their position in the market, the management has to decide the policies to be followed in pricing. The management has to decide the policies to be followed in pricing. The management has several pricing options in deciding the prices. Some companies may decide to follow one price policy or variable price policy or to act as leader in the market as regard as price is concerned. The one price policy is found to be quite sound and reasonable. The company follows a fair and fixed policy in line with the normal price market price, which ensures reasonable profit. Under the variable price policy the buyers/ customers are

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discriminated and bulk buyers and valuable customers are offered favorable terms while others are not given the same

PRICING APPROACHES COST BASED PRICING

The simplest pricing method is cost-plus pricing: adding a standard markup to the cost of the product. To illustrate markup pricing we may consider the following example -: Variable cost = $10 Fixed cost = $ 3, 00,000 Expected unit sales = 50,000 Now, cost/ unit is given by -: Unit cost = Variable cost + Fixed cost/ Unit sales = $ 10 + $ 3, 00, 000/ 50,000 =$ 16 Now, suppose the estimated markup is 20% on sales, then the markup price is given by -: Markup price = Unit cost / (1- Desired Return on Sales) = $ 16/ (1=0.2) = $ 20 Thus the charged price would be $20 and the profit would be $4 per unit.

VALUE BASED PRICING

An increasing number of companies are basing their prices on the products perceived value. Value- Based pricing uses buyers perceptions of value. Value Based pricing means that the marketer cannot design a product and marketing program and then set

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the price. Price is considered along with the other marketing mix variables before the marketing program is set.

COMPETITION BASED PRICING

Consumers will base their judgments of a products value on the prices that competitors charge for similar products. One form of competition- based pricing is going rate pricing, in which a firm bases its price largely on competitors prices, with less attention paid to its own costs or to demand. The firm might charge the same, more or less then its major competitors. Competition-based pricing is also used when firm bid for jobs. Using seated bid pricing, a firm bases its price on how it thinks competitors will price rather than on its own costs or on the demand. The firm wants to win a contract, and winning a contract requires pricing less than other firms. Yet a firm cannot set its price below a certain level. It cannot price below cost without harming its position. In contrast, the higher the company sets its price above its costs, the lower its chance of getting the contract.

PRICING STRATEGIES
Pricing policies are general guidelines for recurrent and routine issues in marketing. Strategy is a plan of action to adjust with changing conditions of the market place. New and unanticipated developments may occur. These situations demand special attention and relevant adjustments in the pricing policies change from time to time. The types of strategies that a company may adopt may of the following types.

MARKET SKIMMING PRICING

Many companies that invent new products initially set high prices to skim revenues layer by layer from the market. Market skimming makes sense only under certain conditions. First the products quality and image must support its higher price and enough buyers must want the product at that price. Second, the costs of producing a smaller volume cannot be so high that they cancel

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the advantage of charging more. Finally, competitors should not be able to enter the market easily and undercut the high price.

MARKET PENETRATION PRICING

Rather than setting a high initial price to skim off small but profitable market segments, some companies use market penetration pricing. They set a low initial price in order to penetrate the market quickly and deeply, to attract a large numbers of buyers quickly and win a large market share.

PRODUCT LINE PRICING

This means setting the price steps between various products in a product line based upon cost differences between the products, customer evaluations of different features and competitors prices.

PRICE ADJUSTMENT STRATEGIES

The two popular types of price discounts are -: Cash discount A cash discount is a quantity reduction to buyers who pay their bills promptly. Such discounts are customary in many industries and help to improve the sellers cash situation and reduce bad debts and credit-collection costs. Quantity discounts

A quantity discount is a price reduction to the buyers who buy large volumes. By law, quantity discounts must be offered equally to all customers and must not exceed the sellers cost savings associated with selling large quantities. These savings include lower selling, inventory and transportation expenses.

PRICING STRUCTURE OF ITI

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During 1996-97, ministry of communication decided that ITI would get 30% as a reserved quota of any tender with L.I. price of the tender For the rest 70%, if ITI companies then ITI will also get orders from BSNL. As per the planning of communication ministry, ITI gets at least 1800 crores (as reserved quota) plus share received through tender (i.e. 70%), But the problem with I.T.I. is that it will supply all the orders in L1 rate of tender of each item. That is why I.T.Is profit margin is very low and at the same time it is on the no profit, no loss basis. As I.T.I. is getting an advance of 75% against reserve quota of 30% so I.T.I. is not facing any financial problem for the procurement of material at least. Factors like overhead, material cost, laboratory costs, excise duties etc. determine the price of the product.

TECHNICAL EQUIPMENTS

COSTING OF THE TRANSMISSION

Product costing is done with the help of the database computer system. Whenever a new product is introduced Technical Costing Section demands Bill of Material from the computer center for all assemblies and sub-assemblies in order to list out various assembly and mechanical components involved in that particular product. The EDP department generates Bill of Material after receiving input data form System Engineering, which consists of parent codes and route codes. After ascertaining that the complete Bill of Material is available with EDP, Technical costing asks the EDP to link the inventory rates with latest Inventory Rate Master, which is being updated with the latest, weighted average Rates (WAR). Whenever no purchases are made during the year, last years rates are taken. Even there are items for which rates may not be available, under such situation EDP gives a Master list of Not in to mechanical costing. This situation occurs due to the reason of either a substitute material being used or the purchase order rate is not appearing for new items from purchase department. After applying the normal levies, as the case may be in the purchase order, we calculate the price of the material & feed in the Not in Master.

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After feeding the rates from penned figure in the Not in the Master EDP complete Bill of Material & linking with the inventory, rates are given to Technical Costing for checking any discrepancies in the rates. Unit measures particularly the copper wires & others are given in Kg & the unit measure with the Bill of Material in given in GM. Extra care is being taken by technical costing in this regard.

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For mechanical components, the methods department is supplying the process sheets/ layouts. The raw materials used, size, specification, & weight of raw material to make 1000 components as given in the process sheet/ layout. We calculate the cost of mechanical components in following format. Component code

R.M. & specification

Size of R.M.

Quantity WT. /1000 WAR Rate

Material cost The material cost of the material component is fed in the not in the master along with the P.O. rates. After feeding all the inventory rates, P.O. rates for new items & material cost of mechanical component, EDP supplies us with the three statements of cost: Assembly & sub-assembly wise cost sheet. Value added cost sheet. Final cost sheet.

Assembly and sub-assembly wise cost statement for individual assembly item is given which includes cost of all inventory items and mechanical component in that particular assembly or sub-assembly Value added statement consists of various subsequent assemblies are added in the main assembly cost. Final cost statement consists of the cost of complete assembly and sub-assembly cost and added value is given. 50

For labor cost calculation the time standards of various assembly, sub-assembly, mechanical components and main assembly of the product is sought. Normally the standards hours are for 1000 numbers. The standard hours are fed in the Bill of Material along with the time standard. The shop Average Rates are calculated once in year taking into account the pay details of all operative against whom DPRs are booked which is supplied by the EDP department. Since EDP only calculates one-year material cost and the labor and overhead costs are calculated by feeling the information in the PC, overhead percent is applied based on the 1986 approved by DOT and BICP.

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CHAPTER:-4 RESEARCH METHODOLOGY

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INTRODUCTION OF RESEARCH METHODOLY

In addition to information about competitors and environment happenings, marketers often need formal studies of specific situations. In such situations, the marketing intelligence system will not provide the detailed information needed Managers will need marketing research. We can define research methodoly as the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization. Every marketer needs research. A company can conduct marketing research in its own research department or have some or all of it done outside, depending on its own research skills and resources. The marketing process research has four steps:Defining the problem and research objectives

Developing the research plan or review the literature Research Design (including sample design)

Collection of data

Analysis of data

Interpreting and adapting the findings

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STEP:1 DEFINING THE PROBLEM AND RESEARCH OBJECTIVE

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DEFINING THE PROBLEM AND RESEARCH OBJECTIVE

The marketing manage and the researcher must work together to define the problem carefully, and they must agree on the research objectives. Defining the problem and research objectives is often hardest step in the research process. After the problem has been defined carefully, one of the following objectives must be set : Exploratory research Descriptive research Casual research

PROBLEM
ITI being in this business for so long understands the ups and downs of this business very well. Hence when the problem aroused due to liberalization and also due to entrance of competition and ITI started loosing its market share and incurring losses, it changed its pricing strategy and new policies were introduced. But still it continued to be in losses even though its profits were increasing. Hence, it was necessary to find out what the actual reason was for losses that were being incurred. For this reason we carried on with this research to find: Whether the people were satisfied with the product or not and with the after sales service? Whether the price was competitive or not? Whether there was a demand in the market? Why there was a lost being incurred every year even when the company sales were increasing?

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APPARENT PROBLEM
The apparent problem for losses being incurred was that prices were not competitive enough hence the company was going into losses. Even when the pricing strategy has been changed it was not right for quoting tenders. It was also necessary to find whether there was acceptance for the product in the market. It was also necessary to find whether repeat purchase was there or not Customer might be buying it due to companys goodwill but after one purchase was there a repeat purchase or not ? It was also necessary to find out the competitors strength and how it was affecting the sales of I.T.I.

OBJECTIVE
The research objective was to find a solution for the above problem. I.T.I. being a pioneer in the telecom business and being the boss would like to hold the same position. It therefore wanted to get an in depth view of the above stated problem. Hence the objectives were: To get knowledge about the present marketing & pricing structure of ITI. To bring about the marketing positioning of the ITI products with regards to the marketing & pricing factors. To bring forth the degree of brand awareness amongst the customers. To get acquired with the relatively preferred brand & the reason behind their success of being preferred.

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STEP:2 REVIEW THE LETRATURE

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DEVELOPING THE RESEARCH PLAN

The second step of marketing step of the marketing research process calls for determining the information needed, developing the plan for gathering it efficiency, and presenting the plan to marketing management. The plan outlines sources of existing data and spells out the specific research approaches, sampling plans and instruments that researchers will use to gather new data. The information required in detail regarding the project was collected and and analyzed, but the step taken before collecting this information was to decide actually what information was required. I lance am proper analysis was made to decide what information was needed. The information required was as follows:-

Pricing Strategy
What is the current pricing strategy? Was there any other pricing strategy earlier? When was it changed? Is there any problem with the current pricing strategy? Was this pricing strategy adopted? Has this pricing strategy been effective?

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STEP: 3 RESEARCH DESIGN (INCLUDING SAMPLE DESIGN)

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RESEARCH DESIGN
Research design is a preplanning of research in which manner the research should be conducted it is a type of blue-print as in the case of building construction or we say it is a frame according of which we for research. Research plan or Design is formulated keeping in view the problem which is to be analyzed. A Research Design may be explanatory, descriptive or an experiential in nature. As per convenience i have adopted descriptive method of Research Design.

Problem Definition
Downfall in demand of ITIs telephones in the market Deterioration in market share of ITI Expansion of competitors network

Project under study

Telephone instruments Exchange equipments

Market segment under study

BSNL NON-BSNL

SAMPLING PLAN
A sample is a segment of population selected to population as a whole. Ideally the sample should be representative so that the researcher can make accurate estimates of the thoughts and behaviors of the larger population. Designing the sample requires three decisions. First, who is to be surveyed? Second, how many people should be surveyed? Third, how should people in the sample should be chosen? Regarding my research process the sample selected includes the telephone exchanges, BSNL and railways of Allahabad.

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Sample technique Area sampling

Area sampling is one in which research involves populations that can be grouped by identifiable geographic areas like blocks, housing tracts, communities. Then it is possible to use a version of cluster sampling known as area sampling. Since the sample in my research was limited and small, I divided the samples into areas of Allahabad. Sample size and population size : The sample size selected by me was 55.

REASONS FOR SELECTING THIS SAMPLING TECHNIQUE AND SAMPLE SIZE

The reasons for selecting the sample size are -: The customers profile of ITI is small, as there are bulk purchasers of ITI transmission equipment. They place big orders through tenders. The sample was large enough to represent the whole population. The sample was large enough to derive the information needed to reach to a particular conclusion.

The reasons for selecting the following sample techniques are

The area has sufficient samples to obtain information. The area contains the most important customers of ITI. The area was easy to cover. The area contained customers who could give the right information, as they had been associated with ITI for a long time. The area has samples that could give unbiased view.

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STEP:4 COLLECTION OF DATA OR SOURCES OF INFORMATION

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COLLECTION OF DATA OR SOURCES OF INFORMATION

After deciding what information is required the next step is to decide which the various sources of obtaining are. There are various sources from where this information could be collected or gathered. Choosing the right source for collecting data is of prime importance.

PLANNING PRIMARY DATA COLLECTION

In case of collecting the primary data use of questionnaire was thought to be effective and hence the first step was to design a questionnaire. The questionnaire contains all the relevant questions covering the information needed. The questionnaires were given to the respondents to get filled. Personal interviews were conducted and personal observation was made to see the buying habits of the customers. Designing a plan for primary data for primary collection calls for a number of decisions on research approaches, contact methods, sampling plan and research instruments.

RESEARCH APPROACHES
Observational Research is gathering of primary data by observing people, actions and situations. Consumer packaged-goods marketers might visit supermarkets and observe shoppers as they browse the store, pick up products and examine packages and make actual buying decisions. Some marketing research firms now offer singlesource data systems that electronically monitor both consumers purchases and consumers exposure to various marketing activities in an effort to better evaluate the link between the two. Survey research is the approach best suited for gathering the descriptive information. To get knowledge about the peoples attitudes, preferences or buying behavior can be found out easily by asking individually directly. Survey research is most widely used method for primary data collection and is often the only method used in a research study. The main advantage of the survey research is its

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flexibility. It can be used to obtain different kinds of information in many different situations. Depending on the survey design, it may also provide information more quickly at lower costs than observational or experimental research

CONTACT METHODS
Information can be collected by mail, telephone, personal interview or online. Mail questionnaires can be used to collect large amounts of information at a low cost per respondent. Respondents may give honest answers to more personal questions on a mail questionnaire than to an unknown interviewer, in person or over the phone. However, mail questionnaires are not flexible. They usually take longer to complete and the response rate is often low. Telephone interviewing is one of the best methods for gathering information quickly and it provides greater flexibility than mail questionnaires. However, with telephone interviewing the cost per respondent is very high. Also, people may not want to discuss personal questions with an interviewer. Personal interviewing takes two forms: individual and group interviewing. Individual interviewing involves talking with people in their homes or offices, on the street or in shopping malls. Group interviewing involves talking with people for a few hours with a trained moderator to talk about a product, service or organization.

RESEARCH INSTRUMENTS
In collecting primary data, marketing researchers have a choice of two research instruments the questionnaires and the mechanical devices. The questionnaire is by far the most common instrument, whether administered in person by phone or online. Questionnaires are very flexible. The form of each question can influence the response. In my research process I made use of the questionnaires. The questions chosen were simple and to the point covering the relevant points and also keeping in mind the purpose of the project. It covers all the aspects of the project and contains questions about customer expectations, the product features, competitors knowledge

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and the views of the customers regarding what they are looking for in the equipment in the long run.

REASONS FOR CHOOSING THE QUESTIONNARES AS THE RESEARCH INSTRUMENT

It gives respondent a clear comprehension of the questions. It includes the respondent to want to cooperate and trust that the answers will be kept confidential. Stimulates responses through greater introspection, plumbing of memory or reference to records. It gives instructions on what is wanted and the manner of responding.

GATHERING SECONDARY INFORMATION

Secondary data consists of information that already exists somewhere, having been collected for another purpose. Researches usually start by gathering secondary data. the Companys internal database provides a good starting point. The significance of the secondary data can hardly be understood. In my research process the secondary data played a major role as the customer are less but place orders through tenders which are in bulk. I used sources like Company Profile and Annual Report of ITI.

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OVERVIEW OF RESEARCH PROCESS:-

Research type Research Design Sample size Population size Primary data

:::-

Descriptive research Descriptive research design 55

:- 2000 :- Questionnaire and Unstructured Interview with Employees and staff

Secondary Data Analysis style Reporting style

:- Annual report and company profile :Graphs :- Interpretation, finings, suggestion, limitation of project , conclusion.

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STEP: 5 DATA ANALYSIS

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Ques:1:-What was the Awareness of the transmission equipment manufacturers in their customermind
COMPANY ITI BEL MAC FIBCOM HFCL OTHERS NUMBER OF RESPONSES 17 11 10 8 5 4 % OF RESPONSES 30.9% 20% 18.1% 14.5% 9.09% 7.2%

CHART:1 Awareness of Equipments

35 30

No of responses & its %

25 20
No .of responses

15 10 5 0 ITI BEL MAC FIBCOM HFCL OTHERS

% of responses

COMPANY NAMES

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Ques:2 Which equipments required most by the customers ?

EQUIPMENTS RADIO EQUIPMENT OPTICAL FIBERS DIGITAL MUX EQUIPMENT OPEN WIRE SYSTEM MULTIPLEXING EQUIPMENT FDM NO RESPONSE NUMBER OF RESPONSES 15 12 8 10 6 4 Company names % OF RESPONSES 27.2% 21.8% 14.5% 18.1% 10.9% 7.2%

CHART :2 Demand of Equipments

No Of responses & Its %

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COMPANY EQUIPMENTS

Ques:-3 What was the reasons for not buying ITIs equipment?
ATTRIBUTES DELAY IN FULFILLING ORDERS COMPARATIVELY MORE DEFECTS LACK OF PROMOTIONAL DISCOUNTS NUMBER OF RESPONSES %OF RESPONSES 35 14 6 63.6 25.4 10.9

CHART:3 REASON FOR NOT BUYING EQUIPMENT

70 60 50 40 30 20 10 0 Delay in fullfillinf orders Comparatively m ore defects Lack of Promotional discounts No of responses % of its responses

No of responses & its %

ATTRIBUTES OF PRODUCT

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Ques :4 Which features/ attributes desired in the transmission equipment?

ATTRIBUTES LOWER PRICES AFTER SALES SERVICE MAINTENANCE COST QUALITY COMPANYS REPUTATION NUMBER OF RESPONSES 13 11 10 7 6 % OF RESPONSES 23.6% 20% 18.1% 12.7% 10.9%

OVERALL PRODUCT OTHER (GUARANTEE PERIOD)

4 4

7.2% 7.2%

CHART:-4 FEATURES DESIRED IN TRANSMISSION EQUIPMENTS

No of resp onses & its %

ATTRIBUTES OF PRODUCT

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Ques: 5. Rating the companies with the equipment being manufactured by them according to satisfaction of the attributes / features found in them ?
(i) 2/34 OPTIMUX

ATTRIBUTES EASE OF USE EASY DETACHABILITY LONG PHYSICAL LIFE COMPARATIVELY MORE DEFECTS AFTER SALES SERVICE

MAC RESPONSES 10 8 7 6 5

% 18.1 % 14.5 % 12.7 % 10.9 % 9.09 % 12.7 % 10.9 % 7.2%

HFCL RESPONSES 15 10 8 6 0 6 7 3

% 27.2 % 18.1 % 14.5 % 10.9 % 0% 10.9 % 12.7 % 5.4%

ITI RESPONSES 16 11 5 10 5 0 11 6

% 29.09% 20% 9.09% 18.1% 9.09% 0% 20% 10.90%

MAINTENANCE COST 7 COMPANYs REPUTATION PRICE ECONOMY 4 6

CHART: 5(A)

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RATING THE COMPANIES WITH EQUIPMENT FEATURES

No of res po nse s& its %

ATTRIBUTES OF PRODUCT(A)

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(ii)

STM 1
FIBCOM RESPONSE 15 9 5 % 27.2% 16.3% 9.09% ITI RESPONSE 13 11 4 % 23.63% 20% 7.27%

ATTRIBUTES EASE OF USE EASY DETACHABILITY LONG PHYSICAL LIFE

COMPARATIVELY MORE DEFECTS AFTER SALES SERVICE

7.27%

14.5%

9.09%

10.9%

MAINTENENCE COST

7.27% 10.9% 12.7%

4 5 4

7.27% 9.09% 7.27%

COMPANYs REPUTATION 6 PRICE ECONOMY 7

CHART:5(B)

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RATING THE COMPANIES WITH EQUIPMENT FEATURES

No of resp onses & its %

ATTRIBUTES OF EQUIPMENTS

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STEP : 6 INTERPRETATION AND FINDING

INTERPRETATION AND FINDING

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The next step after arranging the data is to interpret the findings and arrange them according to priority. The market survey has been done, and now it is necessary to interpret the findings so to impart a much better understanding Interpretation is an important phase of the marketing process. Form the interpretation of the findings of my research it can be easily said the pricing policy is not a problem for ITI.

THE FINDINGS ARE AS FOLLOWS -:

ITI products are preferred due to lower prices. After sales service is excellent. Maintenance cost is also very low as compared to its competitors. Latest technology proves to be a boon for the company. Sales are lost due to its inability to supply the products on time. Competition has also come up with latest technology. Products of ITI are easy to handle and are easily detachable.

The research was to find out why loss was being incurred, when the sales were rising. In my research I found that the equipment being manufactured by I.T.I. satisfied people and its quality is good. So why there was a loss?

The interpretation is as follows:The awareness of the I.T.I. equipments was 30.9% as compared to BEL (20%), HFCL (9.09%), MAC (18.1%), FIBCOM (14.5%) and others (7.2%). The equipment of I.T.I. in demand required mostly by the customers are 27.2% radio equipments, 21.8% optical fibers, 14.5% digital MUX equipments, 18.1% open wire equipments and 10.9% Multiplexing equipment FDM.

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Those who did not choose I.T.I. equipments were 63.6% due to delay in supplying orders on time, 25.4% due to having comparatively more defects and 10.9 due to lack of promotional benefit The features/ attributes that the customers are looking for in the equipment are :20% said low price 9.09% good sales service 18.1% low maintenance cost. 29.02% good quality of product. 11.8% for technical collaborations 20% for company reputation. 5.9% said overall product should be good. The price economy is 7.2% for MAC, 5.4% for HFCL and 10.9% for I.T.I. In case of STM-1 it gets tough competition from FIBCOM. For item 2/140 Mb .

LIMITATIONS

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Though utmost care was taken so that aspects of the problem remained untouched but still there were certain constraints that could not be overlooked. The following were the main constraints in my project. 1:-The paucity of time restricted the field of survey. 2:-The topic of the project was very delicate hence people were afraid to give their views openly. 3:-The secondary data was not very auto date. 4:-The sample unit was not very sufficient. 5:-Some of the respondents were not available. 6:-Personals biases and perceptions of the respondent may have stopped him from giving the right information. 7:- The respondent may not have understood the actual implication of the question.

RECOMMENDATIONS
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Strategy of marketing mix modification 1. PRODUCT -: New products those are in demands in the market should be identified. Durability of the product should be enhanced. Some of the existing products should be innovated. 2. PRICE -: ITI should try to reduce the prices of its products for attracting new customers and to win over competitors customer. This can be done by reducing the manufacturing costs and the overhead expenses. Also, the company can encourage discount and credit facility. 3. PROMOTION -: Perhaps, it may be the key of ITIs survival in the present market. ITI should encourage and adopt new sales promotion schemes. These schemes can be fruitful in enhancing the sales volume, trade rebate, discounts guarantee etc. are tools of promotion. 4. PUBLICITY -: It holds the key factor for the success of any business in the present scenario of competition. ITI can review its old glory by adopting appropriate advertisement and publicity channel. ITI should adopt consumer oriented marketing schemes. ITI should try to establish direct contacts with the people to generate awareness of products to know their requirement. Strategies for other modification -: 1. Research and development should be encouraged. 2. Warrant should be replaced by replacement guarantee. 3. Marketing professionals should be recruited so that high-tech marketing environment is generated due to widening of marketing concepts and technical ideas.

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4. More professional approach need to be adopted in dealing with the competitors. Others -: 1. There should be proper motivation to employees for better performance. 2. The induction of proper training to employees for effective operation. 3. The company should establish a well-organized marketing information system to have a view of customers opinion. 4. Establishment of marketing research team. 5. Essential measures should be taken up to cut down the expenditure. 6. Management should pay more attention for the upgradation of technology to meet the global standard.

CONCLUSION
1. ITI has a clear monopoly in terms of telephone equipment supply to BSNL and has majority in case of equipments supplied to BSNL. 81

2. For instruments supplied to BSNL, ITIs share is 30%. 3. ITI highly depends on BSNL for orders they do not pay attention towards advertising and publicity. 4. Approximately 70% of its ultimate consumers are satisfied from ITIs equipment. 5. High overhead expenses have resulted in high price of ITIs products. 6. ITIs competitors have switched to replacement guarantee. During my research, I came to know that the management of ITI has changed its strategy recently and has set some new objectives which are as -: 1. Generation of demand through innovation. 2. Supply of finished product within stipulated time. 3. Go through mini tie-up with MNCs or technically advanced companies for new range of products. 4. Strengthening technology scanning capability to benchmark the product against global standards.

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CHAPTER: 5 APPENDIX

QUESTIONNAIRE

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I say thanks for agreeing to spare 5 minutes of your time for filling up this questionnaire. NAME:NAME OF THE ORGANIZATION: ADDRESS: PHONE NO. :...................................................... ...................................................... ......................................................

1. What is the main business activity that takes place in this establishment? 2. Could you please tell which company comes first to your mind when we ask about Transmission Equipment Manufacturers? 3. Could you please name two or more companies? 4. Have you ever used products being manufactured by ITI? (YES/NO) 5. If YES then what are the products what are the products of ITI which are being used by you? 6. What are the reasons for choosing this equipment? 7. If NO, what are the probable reasons for not buying ITIs equipment? 8. While buying the Transmission equipment did you consider any other equipment of any other company? 9. Do you really think that there is a difference between quality and technology provided by ITI and that of other companies? 10. Do the ITI products need frequent after sales service? 11. Do you get the delivery of products on time? 12. What features / attributes are you looking for in the transmission equipment when you purchased it? (Rate 1 to 8)

Price Overall product

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Quality Company reputation Guarantee period After sales service Maintenance cost Tie up

BIBLIOGRAPHY

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Kotler Philip, Marketing Management, Analysis, Planning, Implementation and Control, tenth edition, 2000 Prentice Hall India. Dilele, Simken, Pride, Ferrel Concepts and strategies, second European edition. ITI unaudited annual report. Institution reference books. ITI website. www.itiltd.org

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