AIRTECH PVT.

LTD.
DHARWAD

EXECUTIVE
SUMMARY

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 AIRTECH PVT.
LTD.
DHARWAD

EXECUTIVE SUMMARY

INTRODUCTION:

Airtech Pvt. Ltd. is one of the leading manufacturers of work holdings

solutions. An ultimate objective of every organization is to satisfy the needs
and wants of their customers in which quality and distribution are one of the
most important things.

This in plant project is undertaken by me to know the over all structure

of the organization and the production process and marketing management.

TITLE OF THE PROJECT

“PROJECT REPORT ON MARKETING MANAGEMENT”

OBJECTIVES OF THE STUDY:

• To study the overall firm functions of Airtech pvt. Ltd.
• To study the marketing aspects of the industry.
• To identify the main problem, if any in different departments during
my study.
• To study the marketing strategy of Airtech.
• To study the product quality and features.
• To derive a conclusion from the observations made during the
internship period.

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METHODOLOGY:

Types of Data:
• Primary Data
Primary data is collected from all heads of the department by face
to face interaction.

• Secondary Data
The secondary data is collected through by internet, company
profile and industry analysis.

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COMPANY
PROFILE

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COMPANY PROFILE

Name of the unit : “AIR TECH PRIVATE LIMITED”.

Location : 5th km, National Highway No.4

Next to Agriculture College,
Village Narendra,
DHARWAD-580005.
KARNATAKA

Banker : State Bank of India.

Certificate : Registered under Companies Act 1956.

Auditor : MIS P G Ghali ( chartered accountant)

Brand name of the company : AIRTECH

Year of incorporation : 1980.

Constitution : Private Limited Company, governed by

BOD'S

Area occupied : 60 acres.

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HISTORY & INCEPTION OF THE COMPANY

Airtech Company was set up in the year 1980 when a team of qualified
engineers comes together with a vision of a company that would serve the
technical needs of the market. Hence they established a manufacturing unit
at DHARWAD that begins it manufacturing with concentric Coventry
chucks as its first product.

The Airtech is a private company, at the beginning it is registered as

small concern at DHARW AD for manufacturing of Concentric Coventry
Chucks as its first product. The dynamism of the promoters and their desire
to prove superior work holding tool saw new chucks and tools for work
holding being added regularly to the range.

The company is registered under the company's Act 1956 as AIRTECH

PRIVATE LIMITED, with the initial investment of Rupees 5,00,000. Nature
of the company is machine tool manufacturing.

The airtech is involved in the production of power chucks, rotary

cylinders, etc... beginning in 1980 with the manufacturing of concentric
Coventry chucks, they have grown as one of the leading manufacturer of the
chucks. In fact, they provide the complete work holding solutions.

Constant interaction with the customers and continuous product

innovation spanning two decades, have helped them to add to their range of
standard products. The technical competence gained has also helped them to

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provide the cost effective customized solutions to some of the most complex
work holding requirements. They have also developed a range of the
matching cylinders.
Airtech adopt a system of continuous checks and inspections right from
raw material to finished products, to ensure a consistently superior product.

Research & Development has been yet another area of focus at AIR
TECH PRIVATE LIMITED a modem CAD (Computer Aided Design)
centre manned by qualified personnel has not only seen the introduction of
new products but improvement on existing range, based on the continuous
feed back from the customer. This dedication has ensured that APL [Airtech
Private Limited] always stays a step ahead.

AIRTECH has believed that an organization can stay healthy if it can

keep pace with rapidly advancing Indian industry, which is focused on
taking global challenges to become a global power.

Founders of the company:

1. Mr. Lajpath Rai Sukbji.

2. 2. Mr. D.Dhumb.
3. Mr. M.B.Suhindra Rao.
4. Mr. P.G.K Murthy.
5. Late N.Sukravalas.

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Nature of the business:

Manufacturing of chucks and cylinders is according to the diagram or

specification prescribed by the customer in order to meet the customer
satisfaction and requirements.

SECTOR DETAILS

Persistence in growth prospects of the Indian economy was evident in

most sectors of the industry, in particular amongst the major users of
machine tools. A consistent enhancement in performance was observed in
most segments of the Indian automobile.

India's machine tools sector is a critical part of the overall

Manufacturing sector, as it provides the machinery that delivers
manufacturing output and drives productivity and growth. Growth in the
manufacturing sector has led to a rapid increase in demand, especially for
increasingly sophisticated CNC machines. While imports have risen to' meet
the demand, local capacity in machine tools needs to be built to cater to long
term growth.

User segments, such as, automobiles and auto components and

consumer goods are the key drivers for demand. Machine tool manufacturers
will need to focus on the needs of these segments and look at developing
customized products. In addition, thrust on R&D and innovation would be
required to maintain technological parity with global players and remain
competitive.

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Automotive Sector:
Indian automotive industry continued with its momentum of steadfast
performance in output, clocking a growth. Growth was skewed with most
key segments in the auto sector witnessing high turnover and a few growths
in previous years.

Capital Goods Sector

Indian capital goods industry was clearly the success story of the
Indian industry's performance in 2007-2008 and a major contributory to the
high manufacturing growth.

High growth was evident in all segments of the capital goods industry.
Segments such as diesel engines, earthmoving & construction equipment,
industrial furnace, pumps, transformers, textile machinery and tractors had a
high growth.

Consumer Durable Sector

Akin to the auto sector, I was a see-saw performance I the country's
consumer durable industry, although on the whole it had eighth successive
year of good to moderate growth.

CNC& Conventional Machine Tools

In keeping with the focus of the Indian industry towards enabling
manufacturing excellence, CNC machine tools comprised bulk of the
manufacture from the Indian stable. Conventional machine tool
manufactures likewise registered high growth in these years.

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VISION, MISSION & OBJECTIVES

Vision:
• To create quality standards that will be bench mark in work holdings.
• To design, develop and manufacture high precision work holding that
are
• second to none.
• To build the brand image that would be preferred by choice not by
persuasion.

Mission:
• Build an organization that installs in every employee a sense of
dedication, true camaraderie and a feeling of one family.
• Make working in Airtech a passion rather than a duty.
• To be a social responsible, environment friendly organization that
cares.
• For the society and environment it belongs to.

Objectives:
• To serve the engineering industries.
• To earn profit.
• To give customer satisfaction.
• To supply quality goods.

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QUALITY POLICY
• Dynamic leadership.
• Expert engineers for expert work.
• Customer contribution and care.
• Leading manufacturer of chucks.
• Continuous interaction with the customers.
• Provision of work holding solution.

At AIR TECH quality is never an after thought. With a philosophy

of getting everything "Right First Time" ingrained at every level of the
organization, they have worked hard to attain quality at all levels. A
sophisticated metrology center equipped with latest facilities like co-
ordinate Measuring Machine, Hardness Testers, etc help them over come
any kind of errors.

At AIR TECH, they try their best to ensure that no product leaves the
plant unless it is thoroughly tested and certified by a team of quality
specialists, because they know that these work holdings work under severe
and exacting conditions.

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INFRASTRUCTURE FACILITIES:
About Skin from Dharwad on national highway, AIRTECH is situated.
The plant is 60 acres which provides good & sufficient facilities to the
employees such as:
 Good ventilation.
 Polycentric control & good electricity facility. ~ Rest rooms for
workers.
 Canteen facility.
 Wide packing area.
 Good transportation facility.
 Free medical facility & visiting doctors.

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PRODUCT PROFILE:

Airtech Pvt. Ltd. manufactures three kinds of machine products.

They are:

1. Chucks
2. Cylinders
3. Chuck jaws.

1. Chucks:
In simple words chuck is defined as rotating work holding device. It is
one of the important accessory component in lathe, grinding, milling
machines etc.. the wedge design of the chuck has a self locking features that
prevent the accidents and it does not loose its gripping power even at cutting

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loads with high repeatability. It is fitted to the spindle for holding the jobs of
different shapes and size.

Chucks are specified by:

• Type of chucks: APL manufactures manual and power chucks.
• Number of jaws: APL manufactures 2 and 3 jaws chucks.
• Maximum diameter it can hold: APL manufactures chucks with
diameter
• Ranging from 130 mm to 1000 mm.
• Open centre diameter.
• Maximum gripping force.
• Maximum speed.

APL has designed chucks operating at 6000 rpm. APL produces

standard as well as specialized chucks. Standard chucks are
manufactured to hold the standard jobs. Specialized chucks are
manufacture according to the specification of
customers.

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Wedge Type Big Bore Chucks(WBB)

2. Cylinders
These are used for operating power operated chucks, cylinders activate
the chucks via the draw bar passing through the spindle bore, cylinders

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should provide the correct operating forced to match the chuck.

Some cylinders are specially design for high speed CNC bar and
chucking lathes, they are also used in figure chucks, clap application and
special chucks.

1. Chuck jaws
APL manufactures standard, soft, hard and special chuck jaws. All
soft jaws are made of high carbon steel. They hard revisable jaws are made
of case hardened steel special jaws are offered to customers specifications or
to suit customer's components.

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WH WC WHCB

CC QCJ BFC

PCC PSC SCD

Sub- product profile:

The following table shows the product profile:
Product Model Dimensions

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Hollow chucks WH 130,165,200,250,380,450,530,610

110,125,160,200,250,305,400,530,
Closed centre WC
610
Power chuck

Ultra high speed power WHCB 165,200,250,315,400,500

operated hollow chuck
Eccentric compensating
CC 160,200,250,315,400
power
chuck
Quick change jaw power QCJ 160,200,250,300,380,450,500
chuck

Ball fulcrum power chuck BFC 160,200,250,300,380,450,500

Power operated collect chuck PCC 25,40,60,80

Front operated power collect FOCC 40,60

chuck

Stationary power chuck PSC 165,200,250,315

Diaphragm chuck SD/SCD 160,200,250

WH- This wedge type chuck is actuated by rear mounted hydraulic cylinder
via a draw bar passing through the machine spindle bore.
WC- This chuck is similar to the chuck but does not have through.

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Permissible operating speeds are lower than hollow chucks. Obviously,

these are coupled with only closed centre hydraulic and pneumatic cylinders.
WHCB- These are basically hollow chucks. Counter balancing weights are
incorporated to reduce the effect of centrifugal forces which are inherent at
higher speed.
CC- The chuck can also be used as a self centering chucking chuck with the
use of a cantering insert. This chuck has to be coupled with 1 closed centre
hydraulic cylinder.
QCJ- This is basically an open centre chuck but with2 specific features.
One, the wedge design is modified for better grouping force and second, the
jaws are modified to facilitate quick change over.
BFC- These are most suitable for forged components. The jaws design such
that they exert pulling action on the job. The chuck is of a totally sealed
construction and needs almost nil maintenance.
PCCDLR- These are hollow type chucks and are manufactured to suit
standard or specific collects available with the customer.
FOCC- These chuck are self contained i.e. the cylinders is built into the
chuck body itself. The draw pipe is totally avoided. All parts are made of
case hardened steel fully hardened and ground for long life.
SD/SCD- These chucks ideal for grinding machines or light turning work.
There are no sliding or wearing parts. The chuck utilizes the inherent
strength of spring actions.

CUSTOMERS

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APL has sufficient customers those can be broadly classified in to 4

groups, they are:
 OEM (Original Equipment Manufacturers)
• Laxmi Machine Works, Coimbatore.
• ACE Designer Bangalore.
• Jyoti Machine, Rajkot.
• HHT, Bangalore.

 Public and private companies

• Bajaj Auto, Aurangabad.
• Telco, Dharwad and Pune.
• BHEL Banglore.
• HAL Banglore.

 Government organizations
• Railways.
• Defence.
• Power supply plant.

 Other users
Small scale industries in and around HUBLI, DHARW AD.

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COMPETITORS INFORMATION

APL is one of the major work holding companies in India. Even

though it faces huge competition from various companies, such as
• GMT (Guindy Machine Tools), Chennai.
• Scientific Engineering Corporation (SECO), Gurgron Punjab.
• Chennai clamping Devices.
• Jaws manufacturing, Pune.

APL offers not only standard work holding but also total solutions in
work holding. In fact, this is why the APL' s customers are spanning various
sectors like auto components manufacturers, ordinance factories, railways
and machine tool manufacturers.

These are competitive in cost margin. This can be manageable by the

APL through its quality and the service. It is eligible to compete with other
components.

They even face the competition from various international companies,

hence competitors can be classified as Indian and foreign competitors.
Details of them are as follows:

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INDIAN COMPETITORS.
 Gundy Machine Tools Ltd, Chennai (GMT)
GMT was the first company, which started its manufacturing
power chucks in India in the year 1950 with technical knowledge from
BERG Germany.
They are sti111eading the market with 44% market share. OEM
prefers their chucks because of,
1. Superior quality product.
2. Marketing set up is sound.
3. They have various sales and service staff/office in Delhi, Mumbai,
Chennai, Bangalore and many more tire one cities.
Their prices are 10-15% more than APL but 20-305 lower than imported
chucks. Their production capacity is high hence it helps them to meet the
market demand.

 Scientific engineering corporation (SECO)- Puniab

This company is manufacturer of scroll operated manual chucks since
1950. It started manufacturing power chucks and cylinders since 1995-1998.
Quality is inferior but price and presence wise, it is making dent into
end user sector. OMEs are not giving the preference to its products. It has
dealers and stockiest in almost all the industrial towns.
It is coming up very fast and may be an eye sore for GMT and APL in
near future.

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 Chennai Clamping Device (CCD). Chennai

This company is in a way off shoot of GMT. They were dealers for
GMT for quite a long time. Somewhere in 2002, some design and shop floor
personnel of GMT resigned and joined this company and stars
manufacturing power chucks and cylinders.
They do not have good manufacturing set up. They are storing in
marketing especially in Chennai and pune. In their anxiety to come up fast
and secure second place, they are picking up design, shop floor and sales and
service people from APL and GMT. Their quality is not up to the mark but
yet is able to sell and recondition good numbers of chucks.
APL has to be very vigilant and have to keep watch on their activities.

 Jaws Manufacturing. Pune

This company is basically chuck spare part manufacturer. Started
reconditioning GMT, APL and imported chucks. Now they are
manufacturing
jaws brand power chucks and cylinders. It also manufactures precise manual
chucks. They sell most of their products through dealers. But it is very
famous in Pune and surrounding area.

MNC'S COMPITATORS:
• ROHM, Germany.
• SMW - Auto block.

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• Kitagawa-Japan.
• ITW USA & India (Hyderabad).

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DEPARTMENTAL STUDIES
• PLANNING AND PURCHASE DEPARTMENT.
• PRODUCTION DEPARTMENT.
• QUALITY CONTROL DEPARTMENT.
• MARKETING DEPARTMENT.
• FINANCE DEPARTMENT.
• ADMINISTRATION AND HR DEPARTMENT.

PLANNING AND PURCHASE DEPARTMENT:

, The planning and purchase department is lead by planning Manager. He
manages all the activities of planning & purchase department.

PLANNING DEPARTMENT:
The company gets the orders from various suppliers as well as from
perspective customers, after seeing to its terms and cost aspects planning
department issues acceptance order. But for certain specialized tool some
parts of product that can not be carried out in the company then planning
department will out source such activity. After it comes from outsourced
agency department
is responsible for the proper execution of purchase orders once accepted.

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Planning process is done with the help of following diagram

Customer representation

Product specification

Status of raw material

Production Outsourcing

PURCHASE DEPARTMENT :

Raw material is classified into 4 types at APL, they are:

1) Raw Material:
This consists of the basic material which is raw in stake like carbon
steel and alloy steel etc...
2) Components:
These are sub parts which are required as a part in the final product
like screw, nuts bolts etc... also comes carbon steel and alloy steel screws.
3) Consumable:
This are the inputs consumed while carrying out production such as
oil, lubricants etc..
4) Packing material:
These are the materials used for the final packing of products.
Purchase department procure the raw material for standard products one
month before but for special products it follows just in time technique.

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Suppliers
APL gets raw material from the following suppliers. They are:
1) Hi-tech forge, Bangalore.
2) Rukmani forge, Bangalore
3) Sona steel, Mumbai.
PRODUCTION DEPARTMENT:

This department is lead by manager. There are two supervisors

working on design oriented products. Goods are produced in batch
production process is as follows.

Production plant is quite big and clean in which workers can work
without any problem of dust and foul and production process will be
conducted in shift basis. There are two shifts for workers in production plant
each shift of 8 hours.

First shift starts from 8:30am to 5:00pm

Second shift starts from 5:00pm to 1:30am

In production department there are 50 machines. Monthly they will

produce 300 chucks and 100 cylinders. The time required to produce 1
chuck is 5 hours & for 1 cylinder is 6 to 8 hours. In production department
there are 80 workers in one shift.

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1) Raw Materials:
The raw materials will be taken from Bombay, Bangalore & Belgaum.
This consists of basic material which is raw in stake like carbon steel, rough
forged steel and alloy steel etc.

2) Turning Process:
First operation in the production is turning process. In this the work
operation held in a lathe and rotated while the cutting tool or cutter removes
the metal from the work piece.

3) Milling Process:
Next operation, a hole is produced at the work piece before forcing a
rotating cutter known as drill bit through the work piece.
In boring operation an existing drilled hole is enlarged by using a
cutter known as boring bit. Remaining is the finishing of drilled hole to an
accurate size using fluted tool called as reamer.

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4) Grinding process:

It refers to a branding or wearing away by friction of material. It is

accomplished by forcing the war piece against a rotating grinding wheel
made of abrasive material process is as follows:

Phase Grinding

Surface Grinding

Slot Grinding

External Grinding

Internal Grinding

5) Heat Treatment.
It’s a process of heating & cooling of metal or alloys in order to obtain
certain desired properties such as hardness, toughness and strength.

6) Inspection:
Components are then sent to inspection where tolerance & size of
each component is checked. When these are approved components are sent
to serration process.

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7) Serration:
It is the process where teethe or hard surface of jaws for firm grip. The serration
can be used to move the haws to hold war pieces of different size.

PRODUCTION PROCESS CHART

Raw Materials

Turning Process

Milling Process

Grinding Process

Heat Treatment

Inspection

Serration

Cleaning

Etching

Assembly

Testing

Packing and Dispatch

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8) Cleaning:
Components are cleaned with oil, which also prevents rusting before it
is taken to the further process.
9) Etching:
For each & every product a number is given, the trade mark of APL is
printed on the product.
10) Assembly:
This involves joining of different components or parts produced
during the production process in order to complete a single finished product.
11) Testing:
Finished assembled products are tested for maximum speed and
maximum gripping force and maximum diameter it can be hold
12) Packing & dispatch:
A wooden box & thermocol is used for packing. Care is taken in such
a way that there such not be any chance of damage while transporting the
goods.

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QUALITY CONTROL DEPARTMENT

The quality control department is lead by manager. Main function of

this department is to check the design/drawings. This is very important
department from quality point of view because quality and reliability are the
hall mark of APL products.
APL adopts a system of continuous check and inspection right from
raw materials to finished product stage.
In case of outsourced product the department checks the product if
quality is not up to the mark then it is rejected.

Quality control process is done by the following authority.

Manager

Engineer

Supervisor

Workers

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MARKETING PROCESS:
Marketing is a process by which companies create value for customers
and build strong customer relationship in order to capture value from
customers in return.

MARKETING DEPARTMENT OF AIRTECH:

Marketing department plays an important role in every organization.

It carry outs its activities as follows.

MARKETING MANAGER

Asst. MARKETING MANAGER CUSTOMER CARE MANAGER

MARKETING EXECUTIVES SERVICE ENGINEERS

REPRESENTATIVES DEALERS

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FUNCTIONS OF MARKETING DEPARTMENT

 Controlling information flow between head office and dealers or

representatives.
 Sales reports are sent every week by individual area representative to
the main office.

 Orders from and sales from is issued and sent to the head office and
factory in time.
 Conducting marketing development activity.

This department is lead by Mr. Vinay Kumar Rai, who manages the
marketing and sales activities of the organization, today the change is
occurring at acceleration rate, the situation will not remains same always to
cope with, today the APL is not only introducing new products but also
improvement on the existing range based on the continuous feed back from
the customers.
Marketing is the link between the producer and customers. All efforts
made to produce will simply go waste unless there is proper channel to
market the product.

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FINANCE DEPARTMENT

This is department is lead by finance manager. For this department,

personnel should have enough qualification and skills regarding the
maintenance of project, transaction of the firm and to prepare and maintain
the balance sheet and annual report by the year end superior through their
orientation given in training for new personnel.

APL is maintaining separate department for the purpose of accounting

“Tally software package is used for accounting”. General banking
transactions are carried out through SBI.

FINANCE MANAGER

ASSISTANT FINANCE MANAGER

ACCOUNTANT

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1. Strategy:
This is an ideal route that the organization has chosen for its future growth, a
plan in an organization formulated to gain the competitive advantage.

2. System:
The company has a unique integrated system in all the departments.
The execution of order is followed by top-to-bottom. This includes
formal and informal procedure including the innovation system,
compensation system, management information system and capital
allocation system, which governs every day's activities.

3. Style:
The leadership approach of top management and the organization's
overall operating approach, also the way in which the employees present
themselves to out side world, suppliers and clients. The decision making is
participative in nature where all the middle level and lower level
management is aloud to suggest the idea in the decision making process.

4. Staff:
The organization's human resource refers to how people are trained,
developed, specialized, integrated, motivated and how their career is
managed.
The APL has effective staff of participative in nature with positive attitude
towards organizational goal and also performing efficiently with effective
results in achieving organizational goal.

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5. Skill:
What the company does best, the distinctive capabilities and
competencies that resides in the organization. APL' s process of training the
employees is on the job training. Whereas off the job training, which is
theoretical in nature & provides over all design of the job. The company is
fully equipped with skilled faculty to train employees. Her the training
period is for one year.

Skills include:
 Communication skills
 Presentation skills
 Listening skills
 Technical skills
 Managerial skills

6. Shared value:
Originally called super ordinate goals, the guiding concepts and
principles of organization value and aspiration often unwritten that go
behind the conventional statement of corporate objective the fundamental
ideas around which a business is. This thing influence's a group of people to
work together for a common goal.

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Responsibilities of accounts department:

1) Preparation of cash transaction, vouchers, day book, checking cash
disbursement.
2) Distribution of salary and wages.
3) Preparing monthly operational data which includes the production,
sales, raw materials and income expenditure.
4) Maintaining cash book, collection book and data entry in computer.

ADMINISTRATION & HR DEPARTMENT

This department is lead by the administration manager. There are 80
permanent workers & 40 temporary workers. The temporary workers work
on the contract basis. This department is authorized by Employees State
Insurance Act [ESI Act], Bonus Act, Gratuity Act, Wages Act and Factories
Act and also
the Safety & welfare measures.

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Sales Turnover of Airtech Pvt. Ltd.

Sales turnover
Financial year
(Rs. In lakhs)
2004-2005 455
2005-2006 635
2006-2007 562
2007-2008 1300
2008-2009 764
2009-2010 687

Sales turnover (Rs. In lakhs)

1400

1200

1000

800

600 Sales turnover (Rs. In lakhs)

400
200
0
2003- 2004- 2005- 2006- 2007- 2008-
2004 2005 2006 2007 2008 2009

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SWOT ANALYSIS
Strength:
⇒ APL has very good image in the eyes of
their customers since they produce the chucks as per the prescribed
specification by customers. Even the prompt payments to their
vendors/suppliers make them different from others.

⇒ It has the goodwill in domestic market.

⇒ Quality of their products are one of the

strength of APL, even in the absence of ISO certification they have
achieved the sense of reliability in industry.

⇒ They enjoy the location benefits since it

is situated besides NH-4 i.e. Pune-Bangalore highway, 6KM away from
railway station.

⇒ They are highly concerned about the

Research and development activities even there is much scope for this,
which plays a vital role in new product development and design.

⇒ Since from its inception APL has not

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faced any problem regarding sticks, lockouts, which indicates the

cordial relationship between management and workers.

Weakness:
• Labor turnover is one of the major problems of APL. They are
paying very less salary to operational level of employees; another
reason is that they themselves don't want to continue with the old
temporary operational level of employees. The candidate whom they
feel capable of doing proper work, to such candidates they offer
permanent employment.

• Inability to meet the market demand.

• They are unable to attach the foreign demand due to no ISO

certificate.

• They are facing a huge problem of distribution indirectly it is

affecting the customer relationship.

• One of the major weaknesses of APL is that there is much

confusion regarding delegation of authority between different
departments.

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Opportunities:
 Company can expand its business to large extent since
they are unable to meet market demand, reliable quality, and good
customer relationship.

 They enjoy the benefit of labor in Dharwad since there

are many ITI Diploma colleges, students from those colleges are hired
at very cheap rate even these students also want an experience so both
are benefited with this.

 Since it is situated besides highway they can solve the

distribution problem facing by APL.

 As the company is going for ISO certification in the days

to come this
may help the company to enter into global market.

Threats:
 More than 300 chuck-manufacturing companies are present in

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industry that creates stiff competition.

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PROJECT
OVERVIEW

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MARKETING MANAGEMENT

Introduction:
Market is a place where the sellers and buyers assemble to exchange
their products for money and vice-versa. Marketing is very much integral to
market. Production precedes marketing.

Marketing management is the art and science of choosing target

markets and building profitable relationship with customer.

Meaning:
Market is the set of actual and potential buyers of a product or service.
Marketing is the performance of those business activities that direct the flow
of goods and services from producer to consumer or users. Marketing is
managing profitable customer relationship.

Definitions:
Marketing is defined by the American Marketing Association [AMA]
as "the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large."

The chartered Institute of Marketing defines marketing as "the

management process responsible for identifying, anticipating and satisfying

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customer requirements profitably."

Marketing Process:

Marketing is a process by which companies create value for customers

and build strong customer relationship in order to capture value from
customers in return.

Marketing Department of AIRTECH:

Marketing department plays an important role in every organization. It
carry outs its activities as follows.

MARKETING MANAGER

Asst. MARKETING MANAGER CUSTOMER CARE MANAGER

MARKETING EXECUTIVES SERVICE ENGINEERS

REPRESENTATIVES DEALERS

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Functions of marketing department

 Controlling information flow between head office and dealers or

representatives.
 Sales reports are sent every week by individual area representative to
the main office.
 Orders from and sales from is issued and sent to the head office and
factory in time.
 Conducting marketing development activity.

This department is lead by Mr. Vinay Kumar Rai, who manages the
marketing and sales activities of the organization, today the change is
occurring at acceleration rate, the situation will not remains same always to
cope with, today the APL is not only introducing new products but also
improvement on the existing range based on the continuous feed back from
the customers.

Marketing is the link between the producer and customers. All efforts
made to produce will simply go waste unless there is proper channel to
market the product.

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MARKETING MIX:
The marketing mix is the set of controllable tactical marketing toolsproduct,
price, place and promotion, which the firm blends to produce the response, it
wants in the target market.
Elements of the marketing mix are often referred to as 'the four Ps':
 PRODUCT.
 PRICE.
 PLACE.
 PROMOTION.

PRODUCT:
Product means the goods and services combination the company
offers to the. Target market. The product consists of polices and procedures
relating to be offered and services to be rendered. It also includes research
and development programs and the new product policy.

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PRODUCTS OF AIRTECH PVT. LTD

Airtech Pvt. Ltd. manufactures two kinds of machine products. They
are:
1. Chucks
2. Cylinders

1. Chucks:
In simple words chuck is defined as rotating work holding device. It is
one of the important accessory component in lathe, grinding, milling
machines etc... the wedge design of the chuck has a self locking features that
prevent the accidents and it does not loose its gripping power even at cutting
loads with high repeatability. It is fitted to the spindle for holding the jobs of
different shapes and size.

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Chucks are specified by:

 Type of chucks: APL manufactures manual and power chucks. .
Number of jaws: APL manufactures 2 and 3 jaws chucks.
 Maximum diameter it can hold: APL manufactures chucks with
diameter ranging from 130 mm to 1000 mm.
 Open centre diameter.
 Maximum gripping force.
 Maximum speed.
APL produces standard as well as specialized chucks. Standard
chucks are manufactured to hold the standard jobs. Specialized chucks are
manufactured according to the specifications of customers

.2. Cylinders
These are used for operating power operated chucks, cylinders
activate the chucks via the draw bar passing through the spindle bore,
cylinders should provide the correct operating forced to match the chuck.
Some cylinders are specially design for high speed CNC bar and chucking
lathes, they are also used in figure chucks, clap application and special
chucks.

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Closed Centre Power Chuck Model WC

This wedge type chuck is actuated by a rear mounted hydraulic or
pneumatic cylinder via a draw bar passing though the machine spindle bore.
Offered with standard or long jaw stroke, this compact and high rigid chuck,
offers powerful gripping and high repeatability. Deal for CNC applications
the chuck has a sea-locking design.
Hollow Power Chuck. Model WH
This wedge type chuck is actuated by a rear mounted hydraulic or
pneumatic cylinder via a draw bar passing though the machine spindle bore.
ideal for CNC applications this compact, rigid, and light weight chuck offers
powerful grip together with high repeatability
Ultra High Speed Power Operated Hollow Chuck - Model
WHCB
Provided with centrifugal balancing system, to compensate the
centrifugal force of the base jaws, the hollow chuck lends itself ideal to ultra
high-speed applications. Designed for the latest generation of CNC
machines, this chuck makes optimum use of the latest hi-tech cutting tools.

Front Operated Self Contained Power Chuck. Model WHFO

The Hollow Wedge Type Chuck contains built in pneumatic cylinder
and distributor unit. Due to design restrictions, the chuck must be operated
only when the spindle is not in rotation. It is ideal for bar work pipe etc since
the draw tube is not required. Unlike the Open Centre Chucks (Model WH),
the full hollow bore of the machine spindle can be accessed for the

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maximum bar size.

Closed Centre Power Chuck. Model WC
The wedge type chuck is actuated by a rear mounted hydraulic or
pneumatic cylinder via a draw bar passing though the machine spindle bore.
Offered with standard or long jaw stroke, this compact and high rigid chuck,
offers powerful gripping and high repeatability. Ideal for CNC applications,
this chuck has a self-locking design.
Hollow Power Chuck Model WH
This wedge type chuck is actuated by a rear mounted hydraulic or
pneumatic cylinder via a draw bar passing though the machine spindle bore.
Ideal for CNC applications, this compact, rigid, and light weight chuck
offers powerful grip together with high repeatability.
Ultra High Speed Power Operated Hollow Chuck. Model
WHCB
Provided with centrifugal balancing system, to compensate the centrifugal
force of the base jaws, this hollow chuck lends itself ideal to ultra high-
speed applications. Designed for the latest generation of CNC machines, this
chuck makes optimum use of the latest hi tech cutting tools.
Front Operated Self Contained Power chuck Model WHFO
The Hollow Wedge Type Chuck contains built in pneumatic cylinder
and distributor unit Due to design restrictions, the chuck must be operated
on when the spindle is not in rotation. It is ideal for bar work pipe etc since
the d raw tube is not required. Unlike the Open Centre Chucks (Model WH),
the full hollow bore of the machine spindle can be accessed for the

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maximum bar size.

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PRODUCT QUALITY

Product quality has two dimensions-level and consistency. In

developing a product, the marketer must first choose a quality level that will
support the product's position in the target market. Here, product quality
means performance quality -the ability of a product to perform its functions.
At AIR TECH quality is never an after thought. With a philosophy of getting
everything "Right First Time" ingrained at every level of the organization,
they have worked hard to attain quality at all levels. A sophisticated
metrology center equipped with latest facilities like co-ordinate Measuring
Machine, Hardness Testers, etc help them over come any kind of
errors.

At AIR TECH, they try their best to ensure that no product leaves the
plant unless it is thoroughly tested and certified by a team of quality
specialists, because they know that these work holdings work under severe
and exacting conditions.

• Dynamic leadership.
• Expert engineers for expert work.
• Customer contribution and care.
• Leading manufacturer of chucks.
• Continuous interaction with the customers.
• Provision of work holding solution.

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BRANDING & PACKAGING OF PRODUCT:

Branding & packaging are two aspects relating to product presentation.

BRANDING:
The word 'branding' has its origin to the word 'brand'. A brand is a
name, word, symbol or mark used to identify a product and to differentiate it
from the competitive product.

According to American Marketing Association:

"A brand is a name, term, sign, symbol, or design, or a combination of

them, intended to identify the goods or services of one seller or group of
sellers and to differentiate them from those of competitors"

Branding is a process of assigning a distinct name to the product so as

to differentiate it from the competition product of similar nature.

In this APL the branding of chucks & cylinders are made to

differentiate it from the competition product of similar nature. The brand
name used for chucks and cylinders in APL is "AIR TECH".

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PACKAGING:
Packaging is considered as an important element of product mix.
Some marketers even consider it as a 'fifth P' along with product, price,
place, and promotion. Packaging has been variously defined. One of the
most quoted definition is "packaging is the art, science and technology of
preparing goods for transport and sale.
Functions:
Packaging should perform the following five functions.
1) Production: packaging should protect the product from damages in the

process of transit, storage and use.

2) Appeal: packaging should attract and appeal to the customers.

3) Performance: The package must perform the test for which it is

primarily designed.
4) Convenience: This is the fourth function of packaging. The package

should be convenient to use, i.e. opening and closure of the package.

5) Cost-effective: Finally, the package must be cost-effective also. While

deciding on package cost, costs incurred in storage and handling of

empty packages and filled packages, transport cost for distributing
filled packages along with their insurance cost for the transit period,
losses due to breakage or spoilage of the product, etc, should be taken
into consideration.
In APL the packaging of product is made with wooden box and
thermocoal. Care is taken in such a way that there such not be any chance of
damage while transporting the goods.

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PLACE:
Place includes company activities that make the product available to
the target consumers. Place represents the location where a product can be
purchased. It is often referred to as the distribution channel. This element
includes policies and procedures relating to the channels to be used between
the plant and the consumer, the degree of selectivity among wholesalers and
retailers and attempt to co-operation of trade.

DISTRIBUTION CHANNELS:
Production is for consumption. Having produced the products, these
need to be made available to the final users of the product. A proper
distribution channel should be selected to reach the customers.
According to American Marketing Association:
"A channel of distribution or marketing channel is the structure of
intra company organization units and extra-company agents and dealers,
wholesaler and retail, through which a commodity, product or service is
marketed"

MARKETING STRATERGY OF APL:

APL will sell the products through the dealers, company appointed
representatives (agent) & direct selling to the regular customers.
APL uses only one type of distribution channel, i.e. direct selling.
When the distribution of the product is direct from the producer to the
consumer or end user is direct selling.

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DIRECT SELLING:
This method is also referred to as producer to consumer channel.
Under this channel, the producer of goods attempts to make a direct contact
with the ultimate user of goods.
The advantages of direct selling method:
1) Close relationship to the consumers makes the producer constantly
aware of changes and other consumer needs.
2) Profit does not go to the middle-men.
3) Goods get to the consumer more quickly because they do not have the
travel through intermediaries or middle-men.

APL has regular customers. Those can be broadly classified in to 4

groups, they are:
1. OEM (Original Equipment Manufacturers)
• Laxmi Machine Works, Coimbatore.
• ACE Designer Bangalore.
• Jyoti Machine, Rajkot.
• HHT, Bangalore.

2. Public and private companies

• Bajaj Auto, Aurangabad.
• Telco, Dharwad and Pune.
• BHEL Banglore.

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• HAL Banglore.

3. Government organizations
• Railways.
• Defence.
• Power supply plant.

4. Other users
Small scale industries in and around HUBLI, DHARWAD.

TRANSPORTATION:
APL will transport the goods to the end users through the couriers and
the transportation charge will be breed by the company itself.

STORAGE:
The APL has a huge layout and the raw materials are kept outside
or in open space because they need fresh air. They cannot be kept in
closed rooms. The APL is not having any storage room, they keep the
raw material like carbon steel and rough forged steel outside only.

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PRICE:
The price is the amount a customer pays for the product. It is
determined by a number of factors including market share, competition,
material costs, product identity and the customer's perceived value of the
product. The business may increase or decrease the price of product if other
stores have the same product.
In APL the price of the product is different from one product to
another, because they fix the price on the size of the product means the
dimensions of the product like Hollow chucks having dimension 130,110,
etc. the price of the chucks starts from Rs.20,000/- on wards.
The price of the chucks & cylinders are flexible. Because the price
level is depends on the dimensions of the product.

Discounts & Allowances:

Discount & Allowances are reductions to a basic price of goods or
services. The purpose of discounts is to increase short-term sales, move out-
of date stock, reward valuable customers, and to encourage distribution
channel members to perform a function, or otherwise reward behaviors that
benefit the discount issuer.

The APL will give discount to the dealers from 10 to 15% of the sales
price & give allowances to the representatives as a commission from 2 to 3%
of sales.

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PROMOTION:
Promotion means activities that communicates the merits of the
product and pursued target customers to buy it. This element includes
special selling plans or devices directed at or through the trade, from of
devices for consumer promotions and trade promotions. Promotion is more
than just advertising or personnel selling.
Promotion is more than just advertising or personnel selling. The
marketing manager can use publicity, public relations, and various other
forms of promotion. But most important, the marketing manager must
develop a blend of all the possible promotional ingredients in order to
accomplish his objectives.

Promotion Methods
It will be useful to classify promotional methods in three categories as
personal selling, mass selling and sales promotion.

1. PERSONAL SELLING:
Personal selling involves direct face to face relationships between
sellers and potential customers.
The APL has the fixed and regular customer and its promotion method
is personal selling.

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2. MASS SELLING:
Mass selling seeks to communicate ideas or information to large
numbers of customers at the same time. Advertising is the main form of
mass selling. Advertising is any paid from of promotion of ideas, goods or
services, by an identified sponsor. It involves the use of such media as the
following:
• Magazines and newspapers,
• Outdoor posters, signs, skywriting etc.,
• Radio and television
• Catalogs, directories and references
• Direct Mail, E-Mail
The APL uses only one media i.e. advertisement that to only in
technical magazines & automation magazines.

3. SALES PROMOTION:
Sales promotion activities can make both personnel and mass selling
more effective by coordinating both effects. Sales promotion men may
design and arrange for the distribution of catalogs and directory references.
The APL has the different types of catalogs which contains
information about over all organization & information about products.

Sales promotion targets: Sales promotion specialists must be flexible,

exerting their efforts in the areas which most need improvement. They may
tailor their programs for company salesmen, middlemen, consumer or

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"others" such as engineers, architects and public officials.

PROBLEMS OF MARKETING DEPARTMENT

In this Airtech Pvt. Ltd. Company as, I have analyzed there is no such
big problem in the marketing department. Then also they are facing some
problems like:
1. Pricing and delivery problem.
2. Service problem.
3. Stocks.

1. Pricing and delivery:

The APL will face the problem in pricing of the product that to in
regional level selling. As the price of the product is reasonable in APL and
the quality is also good, but the other competitor may fix the price of the
similar type product at lower rate and the quality is same then, the customers
may go and purchase product which is having low price. So here the APL is
facing the problem.

The APL is sometimes facing the problem of delivery. As the regional

level customers are far away from the production company, the problem of
delivery will arise, it's because of transportation cost and transportation
service.

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2. Service problem:
All the customers of APL are away from the manufacturing concern, so
the APL is facing the problem of giving the services to the customers. As the
APL wants to render the service to the customers, but the customers are far
away from the company, then also the APL will render the services but not
in a proper way. This is another problem faced by the marketing department.

3. Stocks:
APL will have the problem of stocks. Some times the customer without
giving the order to produce asks the products, at that time if the APL has that
much of product then they will deliver them, if they didn't have much
product to deliver then it is facing the problem.

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FINDINGS
• Airtech Pvt Ltd, is not having any branches. Means it is not having
any different outlet location to meet out the demand & to capture the
market of whole India

• Airtech Pvt Ltd lacks in providing good quality of service.

• Airtech Pvt Ltd. has not yet obtained ISO [Indian Standard
organization] certification for their products.

• Airtech Pvt Ltd. is having the only few marketing strategies are
advertisement in technical magazines

• Airtech Pvt. Ltd uses only one type of distribution channel known as
direct selling and it is also called as zero level distribution.

• Airtech Pvt. Ltd. sometimes have problem in pricing and delivery of

the finished goods.

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SUGGESTIONS

• The company should open the branches at different places, as the

customers are away from the production company. It's helpful to
transport the goods and to meet out the demand & to capture the
market of whole India
• The company should aim at improving its marketing network by
enhancing its dealer networks and sales force to gain a strong foot
hold in the untapped market which would further help the company
boost its brand image
• The company should use better marketing strategies other than
advertisement in technical magazines.
• Promotional activities should be conducted in the new markets to
attract new industrial customers with highlighting the unique features
of the company.
• Customer enquiries should be handled effectively and product features
should be communicated to the customer with all the specification
details at the initial stage of enquiry.
• The company should appoint native service personnel as it would
reduce time consumed and help to generate more customer
satisfaction.
• The company should aim at increasing the quality of packaging.

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CONCLUSION

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CONCLUSION

The Airtech Pvt. Ltd. is initially started as a small scale industry,

producing only concentric Coventry chucks as its first product. But now
because of continuous product innovation, suppliers Co-operation and
constant interaction with customers helped them to add their range of
standard variety of products. Now it is called as Micro Small & Medium
Enterprises.

After doing the analysis I also came to know that the Airtech products
are acquiring more importance in the market. The only thing is that they
have to improve in services and deliveries as well as to provide more
advertisements regarding existing and new products. And they are
maintaining the quality of products in a good manner.

APL will become one of the best engineering companies in the India
and world even though having tuff competition from Multi National
Companies.

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ANNEXURE

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QUESTIONARIES

1. Which type of Marketing Strategy do you follow?

a) Advertising b) Hoardings

2. Which type of distribution channel will you prefer for your products?
a) Zero level Distribution b) One level Distribution
c) Two level Distribution

3. Which class of cus.tomers will you prefer to buy your product?

a) Public and Private Company. b) Government organization.
c) Equipment manufacturers. d) All the above.

4. Do you provide any discount on the product?

Yes No

5. If yes, then how much percent will u provide discount to the dealers?
a) 10% b) 15% c) 4% d) 10% to 15 %

6. Which level of competitors do you have?

a) National Level.
b) Regional Level.
c) Both levels.

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7. Do you publish any advertisement of product in the television?

Yes No
If yes, then go to Question No.9

8. If No, then through which media do you publish?

a) Advertising in the Mechanical Magazines.
b) Advertising in the Daily News Papers.
c) Advertising in the Internet.

9. How do you Transport the goods to the end users?

a) Couriers. c) Lorries.
b) Buses.
10. Do you manufacture any fixed sizes for Chucks?
Yes No
If yes, then go to Question No.

ll. If No, then on what basis do you manufacture chucks? a) On the Basis of
Manager's specification.
b) On the basis of customer specification.
c) On the basis of Production Manager's specifications.
d) None of the above.

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BIBILOGRAPHY
• Company catalogs and broaches.
• www.airtechindia.com
• Industry Journals & Magazines.
• Books:

• Principles of marketing By, Philip Kotler.

• Entrepreneurial Development By, S.S. Khanka.

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THANK YOU

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