SUMMER INTERNSHIP PROJECT REPORTON

MARKETING OPPORTUNITIES AT TRUST INSULATION CO. LTD.

IN PARTIAL FULFILLMENT OF FULL TIME MBA PROGRAM(2013-15)

Info@bkschool.org.in

SUBMITTED BY:

Abdulmahboob Shujaee (11301)

Date: 5/8/2014

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SUBMITTED TO:

Dipak Hadiya (Project Coordinator)

BK School of Business Management

Gujarat University, Navrangpura,

Ahmedabad-380009

Phone: +91 7926304811

ACKNOWLEDGEMENT

There are countless individuals who help us in making our journey of life successful and enriching. As I resume towards the end of my summer training, I take this opportunity to thank all those individuals who have contributed in one way or the other in making this journey of mine successful and a great learning experience which will help me in my future endeavors.

First and foremost, I would like to thank CEO of Trust Insulation Co. Ltd Mr. Abdul Masood Ahmadi, not only providing me with invaluable advice and guidance to carry on with my project work, but also motivating me throughout my training period.

I would like to express my sincere gratitude to Mr. Shoaib Ahmadi, Director of the company. He supported me continuously with his valuable knowledge and experience in the successful completion of the project.

And I also would like to thank all those who have either directly or indirectly contributed in the completion of my project.

Finally I want to thank B K School of management studies for providing me the opportunity to have practical experience with the corporate.

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TABLE OF CONTENT

1) Declaration 4

2) Chapter 1: Introduction to project 5

3) Chapter 2: Company profile and overview 7

4) Chapter 3: Area of study 16

5) Chapter 4: Finding and analysis 20

6) Learning outcomes and Suggestion 21

7) Manufacturing process 22

8) Chapter 5: Conclusion 25

9) Bibliography 26

10) Appendix 27

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DECLARATION

I, Abdulmahboob Shujaee, the undersigned, a Student of BK School of Business Management, Ahmadabad (Full Time MBA-2013-15), hereby declare that the Project Report entitled the study of MARKETING OPPORTUNITIES AT TRUST INSULATION CO. LTD. is submitted in partial fulfillment of the requirement for the summer internship project.

The project is undertaken as a part of Summer Internship Training during time period 24th May to 26th June, 2014. The matter embodied in this project report has not been submitted elsewhere by anybody for the award of any degree or diploma.

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INTRODUCTION:

Marketing can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and customer relationship management that also benefits the organization. Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer behavior and providing superior customer value. From a societal point of view, marketing is the link between a society's material requirements and its economic patterns of response. Marketing satisfies these needs and wants through exchange processes and building long term relationships.

But in my report I tried to study the Marketing opportunities at Trust Insulation Co. Ltd. in order to observe and implement the concepts which I have learned during MBA program.

It is because the company, with whom I have worked, doesn’t use to do much of marketing because it has a monopoly in the local market. But if they want to expand their business nationally as well as globally, then they have to do marketing.

OBJECTIVE:

My first and foremost objective is to evolve myself in term of marketing areas so that I could be able to learn the marketing in practical life and in corporate.

My other objective towards this move is to enhance my ability to learn the organization practically, so that I could be more prosperous in future in the field of marketing management.

In future I would like to have a Logistic company of my own, and this project made me explore and observe many market opportunities and problems relevant to insulated products and many other products, and I learned how to solve them through this helpful project, which is very helpful for my future business plan.

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Finally, To have practical experience to work with the company, to learn the consumer behavior, the management, and the way of attracting customers with the help of marketing which is lacking in this company.

SCOPE:

The only problem in Trust Insulation Co. Ltd. is that they are not using marketing because of their monopoly in the domestic market. Thus, they are not expanding their marketing practices to attract more customers such as, E-commerce, advertisement, ets.

Thus, this study can help the company to decide their marketing strategy which is not used by the company currently.

RESEARCH DESIGN:

Data Source : Primary data and secondary Research Method : Observation, Direct interaction and media tools Research Technique : Questionnaire and Interview Type of Questionnaire : Structured Type of Questions : Closed and Open ended Number of Questions : 9 Place : Kabul, Afghanistan

SOURCES OF DATA:

The study is conducted with the help of questionnaire therefore the main source of information is the answer given by the people. In addition to that I have collected the secondary data with the help of media tools such as Company’s magazines, internet, etc.

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COMPANY PROFILE:

Trust insulation Co. Ltd. is the pioneer of the expanded polystyrene insulation sheets producer in Afghanistan, and they are serving the nation since 2010. Their brands name “THERMOPORE” is now a well known household word. In fact many people are surprised to know that THERMOPORE and THERMOPORE-Blue are quality brands made by them and this implies that they have the monopoly dominance in Afghanistan for producing expanded polystyrene insulated products.

MissionTo strive to provide expanded polystyrene solutions, fulfilling our customer needs with quality product and service.

ObjectiveTo seek new product innovations in order to meet new market requirements and to continue to service customers with the technical support for their special needs.

What this company actually produces?

1. THERMOPORE:

Extremely low thermal conductivity (High R-value) High compressive strength and CFC Free Very light weight but strong Resistant to water absorption Most Economical choice of insulation

Sheets range from densities of 12kg/m3 to 45kg/m3 with standardized densities for a variety of applications. Sheets are available in sizes of 2m x 1m, 1m x 1m, 8 x 4 feet, 6 x 4 feet and 4 x 4 feet from ½ up to 24 inch thicknesses.

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2. THERMOSPRAY Polyurethane Spray Foam

Extremely low thermal conductivity Seamless application Quick curing time

Polyurethane is an insulation breakthrough. Sprayed as a liquid, it expands in seconds to many times its volume, forming a continuous layer with no gap. This provides Superior Energy Efficiency and much improved indoor comfort.

3. THERMOPORE Blue:

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What THERMOPORE-Blue® Does?

High Resistance to Heat/Cold. Insulates your roof permanently for the life of your building. Means more energy savings. Reducing electric / gas bills. Decreases 7oc to 9oc temperature as compared to un-insulated building. Economical against its utility and pays back in a short time. Increases the life of your building. Good sound insulation

What does THERMOPORE-Blue® Have?

Extremely low thermal Conductivity Meeting ASTM & Din Standards. Density 35kg/m3

PCSIR Tested & Approved. Reduced Water Absorption. Resistance to Ageing. From your trusted source. International standard Quality. Recommend Thickness 2” & 3”. Extremely low Thermal Expansion.

The Features of THERMOPORE

Extremely low thermal conductivity. Exceptionally light but very strong. Everlasting. CFC Free. High compressive strength. High ability to hold pressure. Easily cut, drilled or milled. High resistance to water vapor diffusion. Smooth, attractive finish. No effect with Bacteria and Fungi. Non-Toxic, non irritant and odorless. No reaction with many chemicals.

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THERMOPORE is ideal for

Thermal insulation of flat roofs, pipes and tanks. Insulation of cold stores. Insulation of Walls. Sound proofing of offices, homes etc. Fish net floats, life vest, buoys, etc. Shock absorption and insulated packaging. Cups for Hot & Cold Drinks.

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PRODUCTS OF THE COMPANY:

1. Insulation Sheets

Industrial Enterprises Manufactures the widest range and is capable of catering to all your insulation needs.

Density and Size:

Sheets range from density of 12kg/m2 to 45kg/m3 with standard densities for a variety of application, Sheets are available in size of 2m x 1m, 1m x 1m and 4 x 8 feet 4 x 4 feet from ½” up to 22 thick. Recommended roof insulation thickness 75mm (max) to 50mm (min) of THERMOPORE-Blue.

Application for Roof Insulation

PCSIR Laboratories had independently tasted and verified our product range to meet international standards as per ASTM and DIN codes

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Density

Water Absorptio

n

Flexural Strengt

h

Thermal Resistanc

e

Water Vapor Permeance

Immersion %

PsiF.ft2.h/

BtuMg/m2

12Kg/m3 4.0% 16 3.5 5.0

15Kg/m3 3.95% 27 3.8 4.9

18Kg/m3 2.85% 36 4.0 3.4

20Kg/m3 2.5% 41 4.2 3.4

30Kg/m3 0.3% 60 4.8 0.9

THERMOPORE-Blue®35Kg/m3 0.15% 110 5.85 0.3

2. Insulation Boxes

Boxes especially designed for perishable items such as vegetables, fruits, frozen meats, ice cream, fish and Medicines (vaccines).

Description L-Inch W-Inch D-Inch WT-InchSize 1 16.5 15.5 15.5 2

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Size 2 16.5 9.75 9.5 2Size 3 10.5 7 9.5 2Size 4 9.75 7.75 3 0.75Size 5 20.5 13.25 8.5 1Size 6 15.75 10.75 7 0.75Size 7 10 8 6.5 0.5Size 8 14.25 6.5 7.75 0.5Size 9 8 6.75 7.75 0.5

Size 10 6.5 6.25 4.75 1.5Size 11 6.5 5.5 4 1.5Size 12 14 12.75 6.3 2Size 13 9.25 7.75 8 1.5Size 14 7.25 5.25 3.25 0.5Size 15 14 8.25 10.25 2

3. Food Packing

   

Different kind of Lunch Boxes, Soup Bowl, Birani Box, Serving Trays and any food Packing as per customer requirement.

4. THERMOPORE Packaging Material

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Polyurethane foams have defined strength characteristics. THERMOPACK® provides safe handling and eliminates breakage of valuable products. THERMOPACK® packaging can easily be calculated designed to customer’s specifications. The broad spectrum of properties and individual adaptability of THERMOPACK® permits economical solution of packing problems which vary vastly from product to product, and from sector to sector.

5. THERMOPORE PIPE INSULATION

What should I do with hot/cold water in extreme weather?

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6. DISPOSABLE CUPS

Disposable cups are available in sizes of 125ml, 200ml, 220ml, and 240ml.

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BASIC SERVICES PROVIDED BY THE COMPANY:

Payment services like, credit payment for 15 days to 1 month. Free delivery to the loyal customers and to the ones who buy the product

regularly. Extra storage places for the sold materials. Staff and engineers for installing the product in term of construction.

AREA OF STUDY:

I conducted this study to figure out the marketing opportunities of Trust Insulation Co. Ltd. though the marketing efforts in this company are very weak because they are having monopoly dominance in the domestic market. And it is about expanded polystyrene which is produced by the company, but company yet not make any effort to attract the unaware customer, and they have no effort to expand it globally. Thus, my area of study is marketing in the company for new customer.

Expanded polystyrene

Expanded polystyrene (EPS) is a rigid and tough, closed-cell foam. It is usually white and made of pre-expanded polystyrene beads. EPS is used for disposable trays, plates, bowls and cups; and for carry-out food packaging (including the hinged lid containers popularly known as "clam shells"). Other uses include molded sheets for building insulation and packing material ("peanuts") for

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cushioning fragile items inside boxes. Sheets are commonly packaged as rigid panels (size 4 by 8 or 2 by 8 feet in the United States), which are also known as "bead-board". Due to its technical properties such as low weight, rigidity, and formability, EPS can be used in a wide range of different applications.

Expanded polystyrene foam (EPF) is a plastic material that has special properties due to its structure. Composed of individual cells of low density polystyrene, EPF is extraordinarily light and can support many times its own weight in water. Because its cells are not interconnected, heat cannot travel through EPF easily, so it is a great insulator. EPF is used in flotation devices, insulation, egg cartons, flats for meat and produce, sandwich and hamburger boxes, coffee cups, plates, peanut packaging, and picnic coolers. Although it is generally called Styrofoam, Styrofoam is a trademark of Dow Chemical Company and refers specifically to a type of hard, blue EPF used mainly in boating.

During the late 1800s, researchers seeking materials suitable for making film, carriage windshields, and various small items such as combs produced early plastics out of natural substances and chemicals. In making these plastics, the scientists exploited the natural tendency towards polymerization, in which two or more small molecules, or monomers, combine to form chains that are often very long. The resulting molecular chains, or polymers, comprise repeating structural units from the original molecules. One of the most familiar natural polymers is cellulose, the string of glucose molecules that forms a primary component of plant cell walls, cotton, paper, and rayon. Polystyrene is among the best-known synthetic polymers (others include polyethylene, polypropylene, and polyester). Styrene, the liquid hydrocarbon from which EPF is made, was derived in the late nineteenth century from storax balsam, which comes from a tree in Asia Minor called the Oriental sweet gum. In the early nineteenth century, completely synthetic plastics were developed from hydrocarbons, whose structure is conducive to easy polymerization. Polystyrene, the polymer from which EPF is made, was invented in 1938.

Foaming plastics were discovered indirectly, because in the beginning no one could see their advantages. Dr. Leo H. Baekeland, the American chemist who developed the first completely synthetic plastic, Bakelite, experimented with phenol (an acidic compound) and formaldehyde (a colorless gas) while trying to make a nonporous resin. When one of his mixtures unexpectedly began to foam,

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Baekeland tried to control the foam before realizing that it could have advantages. Following Baekeland's death in 1944, the first foamed phenolics were developed, soon followed by epoxy foam. A short time later, polystyrene was foamed. At first it was used mainly in insulation and flotation devices for boats, life preservers, and buoys. It was not until EPF replaced paper, kapok (made from the silky fibers that encase ceiba tree seeds), and other natural packaging protection that the substance became as popular as it is today. Its familiarity was furthered by the enormous growth of the fast food and takeout industries, which began to use EPF in burger boxes and coffee cups. Today EPF is easily the most recognized plastic.

However, despite EPF's popularity and unique features, it has recently come under attack because of the gaseous methane derivatives—chlorofluorocarbons (CFCs)—used to foam it. CFCs are inert, and harmless to humans and the environment upon their release. However, long after their first use, scientists realized that CFCs contribute to the depletion of the ozone layer as they decompose. The ozone layer is a layer of the atmosphere Polystyrene is made in a process known as suspension polymerization. After styrene is produced by combining ethylene and benzene, it is merged with water and a mucilaginous substance to form droplets of polystyrene. Next, the droplets are heated and combined with an initiator, which begins the process of polymerization. The droplets combine to form chains, which in turn combine into beads. Stopping the process with terminators is difficult, since the chains must be of a certain length to be of use.

That protects the earth against harmful ultraviolet rays from the sun. In 1988 representatives from 31 nations signed the Montreal Protocol, a treaty with which they resolved to halve CFC production by 1998. This agreement brought EPF to the world's consciousness as a threat to the ozone layer. While foam packaging is responsible for less than three percent of the CFCs being released into the atmosphere, EPF reduction has been targeted as a way to lower CFC levels, and new technology that explores ways to produce EPF without CFCs has flourished. EPF has also been singled out by environmentalists because it is not being recycled. Action has been taken, however, and programs are under way to see that a greater percentage of EPF will be recycled in upcoming years.

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ECONOMY OF AFGHANISTAN

The economy of Afghanistan has improved significantly since 2002 due to the infusion of billions of dollars in international assistance and investments, as well as remittances from Afghan expats. The recent improvement is also due to dramatic improvements in agricultural production and the end of a four-year drought in most of the country.

The government of Afghanistan claims that the country holds up to $3 trillion in proven untapped mineral deposits, which could make it one of the richest mining regions on earth. However, due to the conflicts, it remains one of the least developed countries in the world, Ranking 175th on the United Nations' Human Development Index.

The nation's GDP stands at about $34 billion with an exchange rate of $19.85 billion, and the GDP per capita is about $1,150. About 35% of its population is unemployed and 36% live below the national poverty line, suffering from shortages of housing, clean drinking water, and electricity. The Karzai administration along with international donors have remained committed to improving access to these basic necessities by prioritizing infrastructure development, education, housing development, jobs programs, medical care, and economic reform.

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FINDINGS:

No other competitors are there in Afghanistan to produce the same products which are being produced by Trust Insulation Co. Ltd.

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The products are energy efficient and cost effective in Afghanistan.

There is no possibility of E-Commerce for ease of selling of the products to customers, because most of the population in the country has no access to the internet.

Advertisement through media such as, news paper, radio, and television can be the only way to make the customer aware of the products.

There is less online trading and E-Commerce in the country, because only around 25% of people using internet and there is no scope by the company to make its product globally.

There is trade opportunity of the products like pipe insulation, and insulation sheets to the tropical countries (India, Pakistan, Arab countries), and the cold countries (Iran, Turkey) for the company, because these products are resistance to heat and cold, and its production is cost effective in Afghanistan.

Products such as pipe insulation, insulation sheet, and moulded packing products are more demanded than the products such as disposable cups and food packing in Afghanistan.

Apart from Afghans the products is demanded more by the foreign people who is there in Afghanistan for example, USA investors, and NATO staff.

There is no market mechanism for these products in the domestic market in Afghanistan.

In conclusion I can say that in Afghanistan the domestic products are not highly demanded by the people because they find foreign product cheaper and there are no protection and tariff for the products which are being imported from outside Afghanistan.

LEARNING:

Internship at the Trust Insulation Co. Ltd was kind of adventure, I have witnessed how they response and communicate to the customer, how they fulfill their

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requirement, how they make proposal for the materials and how news increase the market expectation and many more.

I learn the implementation of the marketing concept in the practical life, like importance of advertisement, important of relationship marketing, how one differentiate them from those of competitor, etc.

This study made me have more confident, it motivates me to handle and to start my own business which I dreamt and that is a candy factory.

I learned that the tax system in Afghanistan is not like the tax system in India that implies Afghan government is not tax oriented system. Thus, starting a business there is beneficial.

I witnessed and learned the procedure of factory operations.

I learn how to expand the company globally if the company start using E-Commerce with the help of their employees.

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THE MANUFACTURING PROCESS

First, styrene is made by combining ethylene and benzene. Next, the styrene is subjected to suspension polymerization and treated with a polymerization initiator, which together convert it into polystyrene. Once a polymer chain of the desired length has formed, technicians stop the reaction with terminating agents. The resulting polystyrene beads are then cleaned, and anomalous beads filtered out. To make small-cell EPF, workers then melt, add a blowing agent to, and extrude the beads. To produce smooth-skinned EPF, they pre-expand the beads, dramatically reducing their density. Next they heat and expand them before allowing them to sit for 24 hours so that they can cool and harden. The beads are then fed into a mold of the desired shape.

Making styrene

1 The basic unit of polystyrene is styrene, which is the product of a two-fold reaction. Ethylene and benzene, in the presence of a catalyst such as aluminum chloride, form ethyl benzene (C 8 H 8 ), which is then dehydrogenated (hydrogen is removed) at 1,112-1,202 degrees Fahrenheit (600-650 degrees Celsius) to form styrene (C 8 H 8 ).

Making polystyrene

2 Polystyrene is formed from styrene through suspension polymerization, a process by which tiny drops of the monomer (in this case, styrene) are completely surrounded by water and a mucilaginous substance. Supporting and surrounding the styrene globules, the suspension agent produces uniform droplets of polystyrene.

3 Next, a polymerization initiator is added to the droplets, which are suspended by heat radiation of about 212 degrees Fahrenheit (100 degrees Celsius). This results in free radicals, a group of atoms particularly likely to react with others because they contain unpaired electrons which are available for molecular bonding. Free radicals then combine at randomly to form chains of polystyrene.

4 Stopping the polymerization process is difficult. Terminators are introduced to the process to end it at the appropriate time. Though variable, chain length must fall within a certain range, because polystyrene

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with overly long chains won't melt readily, and polystyrene with short chains will be brittle.

Preparing the beads

5 After polymerization is complete, the mixture—consisting of beads made up of polystyrene chains—is cooled. These beads are then washed out and dried. Uniform bead size is achieved by sorting the beads through meshes which filter out over- and undersized beads.

Making expanded polystyrene foam

6 First, the beads of polystyrene must be expanded to achieve the proper density. This process is known as pre-expansion, and involves heating the polystyrene either with steam (the most common method) or hot air (for high density foam, such as that used for a coffee cup); the heating is carried out in a vessel holding anywhere from 50 to 500 gallons (189 to 1,892 liters). During pre-expansion, an agitator is used to keep the beads from fusing together. Since expanded beads are lighter than unexpanded beads, they are forced to the top of the vessel's cavity and discharged. This process lowers the density of the beads to three percent of their original value and yields a smooth-skinned, closed cell EPF that is excellent for detailed molding.

7 Next, the pre-expanded beads are usually "aged" for at least 24 hours in mesh storage silos. This allows air to diffuse into the beads, cooling them and making them harder.

Molding

8 After aging, the beads are fed into a mold of the desired shape. Low-pressure steam is then injected into and between the beads, expanding them once more and fusing them together.

9 The mold is then cooled, either by circulating water through it or by spraying water on the outside. EPF is such a good insulator

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RECOMMENDATIONS:

My recommendations are based on the study with experience and learning I have in this field.

Since, Afghanistan is a developing country and people are become more civilized and they seek to make more money through properties, therefore, their products such as (insulation pipe, insulation sheets) can be more demanded for them and apart from that the exports are slowly evolving and the product such as food packing, insulation box, moulded packing, can be very necessary products for them.

Hence, I recommend this company to make the entire above mentioned customers aware of its products through many ways such as:

Advertisement through media like

o Radio

o Television

o Newspaper

Sponsoring festivals, concerts, etc.

Enhancing sales person

The company is having monopoly in the domestic market so they are not spending much on marketing, but nothing lasts long, so in order to have fruits in future, I recommend them to start marketing.

Apart from that in order to expand business globally because there is opportunity for the company, they should increase the number of their personal and use internet as tool which is less useful in Afghanistan such as ERP, CRM, DRM, BPS, etc.

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CONCLUSION:

Finally, I can conclude that marketing is a vast field which can be applicable in every aspects of the company. Right now, the company doesn’t need marketing practice because it’s holding dominancy of the product in the market. Since I know, the market in Afghanistan is evolving and approaching more to globalization. Therefore, in near future the company must put its efforts to enhance the marketing progress constantly because the scope of marketing is not just limited to selling, but it is functioning as a life blood for the business.

Market is flexible and it changes rapidly which means it can’t be the same, in addition to that, more competitor who produces the same product will appear in the market, and the company should take precaution action in advance.

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BIBLIOGRAPHY

WEBSITES:

WWW.Wikipedia.com/marketinginafghanistan

WWW.Google.com/ Expandedpolystyrene

WWW.Madehow.com/Expanded-Polystyrene-Foam

http://afghanag.ucdavis.edu/other-topic/markets

http://www.jstor.org

http://www.hirsch-gruppe.com/homepage/com/geschaeftsfelder/technische_formteile/herstellung_eps_produkte/herstellung_eps_produkte.php?navid=31

BOOK:

Marketing Management by Philip Kotler

MAGAZINE:

Company magazine

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APPENDIX:

General questions that I have asked…!

1) How you connect with your customers?2) Monopoly is only reason you are not spending on marketing?3) Why you are not using internet as tool for marketing?4) How your product is different from other?5) Have you ever think to expand your business globally?6) How fluctuations arise in Afghan market?7) What is the process of operation?8) How you deliver your product to customer? How many level of channel you

use?9) Is there any after sell service?

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