Amity Business School

PRESENTATION
ON

MARKETING STRATEGIES OF KHD HUMBOLDT WEDAG

Presented By
Rishu Jain
A0101916284
MBA Class of 2018
Section D - 54

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Introduction
KHD Humboldt Wedag is a Multinational Organization having its head office
situated in Cologne Germany.

It was started in the year 1974. Entered Indian Cement Industry in 1982 with
collaboration with Cimmco Birla Ltd.

The fundamental business is to Design, Engineering and Supply of Cement Projects

of different capacities.

Company focuses on providing the competitive and environmentally friendly

products to the cement and mining industries.

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Objectives of Study

The main objectives of study are as follows

How the marketing strategies are formulated to achieve the desired outcomes as
per the mission of the company.

To analyze the different Marketing Channels.

To analyze the Marketing Mix of the company.

To identify the strengths, weaknesses, opportunities and threats by the help of

S.W.O.T Analysis Method.

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Research Methodology
Secondary Data was collected through
Magazines
Books
Internet
Business Articles
Company Annual Report
Interaction with Industry Guide

Data was collected through secondary sources which includes Companys Manual,
Companys Presentation, Books, Internet, Magazines, Company Annual Report and
Business Articles was used to collect the data, which served the purpose in
understanding the marketing strategies of KHD Humboldt Wedag.

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Industry Trends

Cement manufacturers are investigating new strategies to decrease production costs

while expanding profitability. They are additionally inspired about broad
automation to cut down and enhance quality.

Leading manufacturer are putting intensely in R & D in the regions of plant

operations, utilization of alternative fuels, emission reduction and quality
production of goods.

Cement Machinery makers have been setting up "ash" handling of plants to process
results into sellable items. In this manner, acquiring additional income to the client
while diminishing emission and waste.

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Industry Stucture
Cement production is spread evenly across the nation over as it is normally made
near construction sites.

Cement Machinery Industry Structure

Category Large Medium Small

KHD Humboldt Wedag Loesche Sabash Enginerring

Key Players FL Smidth Gebr. Pfeiffer Sabko Industries

ThyssenKrupp Industries Fives FCB Ashoka Group

Walchandnagar Laxmi Engineering

Industries

CPW Chandrapur Works

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Analysis

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Marketing Strategies

To implement the proven business model which enables to expand balanced

portfolio of diversified products and geographies for the construction industry in a
sustainable way.

Utilization of an strong financials to build the leadership positions within the

regional markets, leveraging the scale of the Group to fund expansion through the
acquisition and allocating of resources appropriately to deliver growth.

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Marketing Channel

Marketing Channel

Communication Channel Service Channel

Distribution Channel

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Communication Channel:

The Communication Channel receives and allocates the messages from the target
buyers through different medium such as magazines, mail, telephone, events,
posters, articles, Internet, Business Summits etc. about its products and its
offerings.

Distribution Channel:

The Company uses direct distribution channel for selling its products and services
through Visits to customer office and plants, Internet, Mail or Mobile Phones.

Service Channel:

The company uses the service channel in which the engineers can visit the plant
and checks the plant and then give the estimate and make a blueprint of it how to
install the heavy machinery which could be effective and efficient so the output can
be achieved effectively and efficiently.

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Marketing Mix
The Marketing Mix is about putting the right products or a combination
thereof in the place, at an appropriate time, and at the correct price. The one
should know each and every aspect of the business plan.

Marketing Mix consists of 4 elements such as: Product, Price, Place, and
Promotion.
Product

Promotion
Marketing Price
Mix

Place

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Product:

The company offers technology for cement manufacturing plants as; Pyro
Processing, Grinding, Process Automation which serves the customers in an
effective and efficient manner with low emission rate of CO2.

Price:

The prices of the product are different as per project requirement of the
production capacity, scope of supply or the requirement by the customer.

The price of the heavy machines which are produced by KHD Humboldt
Wedag are competitive as compared to the other competitors in the same
segment which produces the same type of products which provide the same
output to the cement manufacturing industry.

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Place:

The KHD Humboldt Wedag also operates in different regions and serves the
customers with their best products and services in an effective and efficient manner.

The five major Customer Service Centre are located in:

Germany, Cologone
India, Delhi
USA, Atlanta
China, Beijing
Russia, Moscow

Promotion:

KHD Humboldt Wedag has a limited set of customers because of which company
do not spend much on promotions.

The promotional activities are performed as Business Presentation, Events, Global

Summits, Magazine Articles, Print Ads, Direct Mail, Social Activities, Word of
Mouth, Public Relations and Social Media Platform.
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 SWOT Analyisis
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Strengths Weaknesses
Niche Player. Company may operate in unstable geographical
Strong Experienced Management. region throughout world.
Reduced production costs. There might be a lack of customer relationship.
Minimized Co2 emission products. Competitive Market.
Excellent reputation for high quality technology. Too many activities carried out in a high cost
Customer trust the KHD brand. environment.
R&D of products for upgradation takes longer
time.

Opportunities Threats

Strong demand for basic materials. Potential for political disruptions.

Expansion in global markets in different segments.
Market changes fast.
New trends can increase market size.
Strong market growth, with cement consumption
forecast of 3.6 billion tons in 2020.
Bulk of growth in Asia, Eastern Europe and North
America
Currency Fluctuations.
Increasing Costs.
Emergence of low cost competitors (e.g. China).
Financial threat if orders are not completed on time.
Internal controls and growth funding opportunities
must be adjusted to reflect the larger size of the
business.
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Findings
According to the observation it was found that the company focuses only on Cement
Machinery. Whereas other competitors are diversified in different segments and different
industry.

KHD Humboldt Wedag is the Global market leader in Design, Engineering and Supply of
Cement Plants.

The products are of the high quality and offers their customers with higher output in the most
cost effective manner.

Products are environmental friendly which emits the minimized CO2, leading to the clean
environment.

Company has its own R & D Department for making the faster and effective changes as per the
technology.

Company do not promote its products because it is the renowned name amongst the customers
and company prefer cost cutting in advertising and promotions.

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Problem Statement

There are currency fluctuations in the market because of different regions to be

served.

The company faces the internal control and growth funding opportunities must be
adjusted to reflect the larger size of the business.

The research and development of products for upgradation takes longer time.

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Recommendations
The organization should also diversify in other sectors like its competitors and
penetrate the market in industrial service goods.

The organization must focus on product promotion instead of promoting

environment majorly and less of its product range.

Marketing Department should lead classes on some key points with the social
awareness of the organization.

The employees in the organization are very rigid in nature.

Technology must be upgraded for research and development of machinery

products.

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 Conclusion Amity Business School
It helps to understand the Industry Trends and Future Market Outlook.

It helps to understand the Marketing Channels used for reaching the customers.

Lack of presence on social media platforms.

Only promote through direct selling or business events.

Marketing strategies helps to analyze the market trends and how to cater the
customers effectively and efficiently.

It helps to understand how the market uses different marketing tools to promote
and make sales to the customers.

The study also differentiate the KHDs Roller press and FL Smidth Roller Press
which is the USP products of both the companies.

After analyzing the performance from past trends it is understood that the
company is facing challenges because of decline in industry trends due to limited
target customers. 18