Project Marketing by B2B Firms

What are Projects?

• Projects are large & complex transactions covering a package pf
products, services & works

• It’s designed to create a Capita asset that produces a benefit for the
buyer over an extended period of time.

• DMRC was conceptualised in 1969 & was executed in 2002.

 The Concept of a Project

Need Identification
Pre Feasibility study
Feasibility study
Identify funding agencies
Identify potential suppliers
Tender invitation
Negotiations
Planning + Design
Implementation + Trials + handover
High degree of Uncertainty

Unique buying process of each customer

Long term duration of transactions & negotiations

Fragmented buying centres

 360 infra projects show cost overruns of
Rs 3.88 lakh cr
New Delhi: As many as 360 infrastructure projects, each worth
Rs 150 crore or more, have shown cost overruns to the tune of
over Rs 3.88 lakh crore owing to delays and other reasons, a
report said.

The Ministry of Statistics and Programme Implementation

monitors infrastructure projects worth Rs 150 crore and above.
Of these 1,608 projects, 360 reported cost overruns and 550 time
escalation.

"Total original cost of implementation of the 1608 projects was

Rs 19,17,796.07 crore and their anticipated completion cost is
likely to be Rs 23,05,860.33 crore, which reflects overall cost
overruns of Rs 3,88,064.26 crore (20.23% of original cost)," the
ministry's latest report for June 2019 said.
Tech + Price together Tech +EMD
Price Separate

EMD
Tech Bid
Price Bid
Gearing up for Bid submission
Deciding whether to bid or not

Formulation of the bid offer

Understanding the risks & its mitigation

Finalization of the contract

Pre tendering activities
Client analysis
Competitor analysis
Strategic reasons
Resource availability
Pre Qualification
Risk & Mitigation
Strategy to win
Teaming Partners
Financing
Formulating the bidding team

Bid requirements

Client preference

Financing needs

Commercial Strategy

Technical requirements

Schedule requirements

Legal review
Proposal Manager

Bidding Team

Identify individual roles

Review timelines

Completion schedule

Signing Authority

Factor in unplanned leaves

Checklist for bid

Issues that need Management approvals

Clauses that need modification

Study Technical guarantees

Do we meet PQC

Is the work clear or ambiguous

Bid shipment
Supplier identified by client

Countries identified for sourcing

Is the Client well known

Any past association with Client?

Quality of relationship

Client relationship with Competitors

Past performance on similar In- country work

Finance for the project

Any foreign debt linkage to country of sourcing

Strength to raise funds

How is the Project being funded

Does the client have any req for buyer / supplier

credit
Are the T&Cs fair for all bidders

Is the schedule realistic

Any liquidity damages for delays

Payment Terms – fair & equitable

Conditions outside our control

Price Basis?

Taxation + Scope of delivery + Guarantees

Can the Technical guarantees be made

Technology / Knowledge experience

Teaming requirement with other agencies

Any licences needed?

Government approvals

Codes & Standards

Patents

Logistics for shipment

Construction Strategy
Realistic & Achievable?

Liquidity damages for delays

Incentives for early deliveries

Are the inputs from client time bound?

Force Majeure ( Unforeseen natural issues)

Bank Guarantee ( Covering the borrower)

Earnest Money ( escrow account + project faith)

Liquidated damages ( Underperformance +

delays)

Defect Liability Period ( X period in which the

equipment will be free from deficiency)