Bajaj Electricals Limited

APROJECT REPORT

On Bajaj Electricals

Submitted in partial fulfilment for the degree ofBachelor of Business Administration,

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY.

By Shubham Pal

BBA (2010-2013)

IDEAL INSTITUTE OF MANAGEMENT & TECHNOLOGY

DELHI-110092

1

INTRODUCTION

2

INTRODUCTION

The behaviour is characterized by the uniqueness of individual expectations, the

preference for multiple options, propensity to abandon brand loyalty and switch to

competing brands that give higher value. The new breed is willing to import to

satisfy specific requirement It is difficult to clarify this generation by

conventional demographic factors and unless their thought process and buying

behavior are fully understood, decisions on product designs and packaging,

branding and distribution channels are likely to be misplaced. With the

inevitability of change looming large over horizon, Indian companies must learn

from their western counterparts; not only to identify the sources, timing and

direction of the changes likely to effect. India, but also the new competencies and

perspective that will enable them to respond to these changes comprehensively and

effectively.

Companies offering product or services will need to understand this new face of

the customers. The changing demographic profile of the population in terms of

education, income, size of the family and so on, are important but what will be more

substantive in days to come will be the psychographics of the customer ice how they

feel , think or behave. Marketers will have to constantly monitor and understand

the underlying psycho graphics to map their respective industries are moving and

decide what needs to be done, by way of adding value that motivates customers

to buy the company's products and influence the future industry structure.

3

Consumer durables like fan, bulbs, tube lights, geysers play an important role for a

small sweet home to a multipurpose project. To market the -- ct and to establish brand

loyalty, a good marketer has to go to real customers. The behavior differ one from

another. It is essential to know their decision process, the factors influencing their

behavior, the competitors marketing strategy and position in the market.

On going through the market survey, I found different types of dealers trough

which I can able to analyze the behavior of customers towards geysers , their

decision regarding the purchase of geysers, choice of brand, company and its

benefits.

MAJOR FACTORS INFLUENCING

CONSUMER BEHAVIOUR:

The major factors that influence the consumer behavior are:

Product Price

Place

Promotion mix

PRICING AND MARKET SHARE:

Pricing is undoubtedly one of the most important decision areas of marketing. Price

and sales volume together decide the revenue of any business. As the sales

volume in itself is dependent on price, pricing really becomes the key to the

revenue of the business. Pricing is crucial to pro I-] is as well. Pricing becomes the

4

vital decision area on account of certain other factors besides its crucial role in

bringing revenues and profits to the business.

PRICING METHOD/PRICING STRATEGIES:

There are several methods of pricing: Cost based pricing

Demand based pricing

Competition based pricing

Product line oriented pricing

Differentiated pricing

MARKET SHARE:

Market share constitutes the total market captured by Bajaj electrical limited in the

whole consumer durable industry. During my survey I found out that the market

share in different areas are different because of different geographical regions,

climate and number of different companies.

The market share is determined by the help of total consumption of the

particular area and the consumption of particular company's product in that area.

The market share of Bajaj electrical limited is growing with every financial year.

5

COMPANY PROFILE

6

COMPANY PROFILE

The bajaj group of India owes immense gratitude to their founding father whose

vision and dedication over the years has greatly helped to build a business house

that can set standard in Indian industry.

Jamnalal Bajaj was the founding father of the Bajaj Group. The dopted 'fifth' son of

Mahatma Gandhi, and the 'merchant prince' who held the wealth he created in

trust for the people of his country, Trust - a simple word that contains a whole

philosophy handed down by Jamnalal Bajaj to his successors. He valued

honesty over profit.

7

Jamalnayan Bajaj, elder son of Jamnalal Bajaj, followed footsteps of his illustrious

father and consolidated the baja jj foundation. With characteristic foresight and

pragmatic; vision, he launched a steady diversification programme which gave

the current name "Bajaj" both its shape and size. His unique management style created

a work culture that matched well with the national spirit he had inherited.

Ramkrishna Bajaj took over the reins of the "bajaj group" in 1972 after Kamalnayan

Bajaj and steered the Group from strength to strength for over 22 years. He had also

actively participated in the freedom struggle of the country. In post independent India,

he had led the youth movement.

Shekhar Bajaj, Chairman & Managing Director of Bajaj Electricals Ltd., started his

career with Bajaj Sevashrarn after which he worked at Bajaj International, the groups

export company. Mr. Shekhar Bajaj joined Bajaj Electricals in 1980, became the

Managing Director in 1987 and took over as the Chairman and Managing Director in

8

1994. Mr. Bajaj is the Chairman of Bajaj Group companies Baj~.:i;j International and

Hercules Hoist Pvt. Ltd. and on the Board of Directors of Bajaj Auto and

IDBI Bank. He was the President of ASSOCHAM, former President of Indian

Merchant Chambers (IMC) and Council for Fair Business; Practices (CFBP)

9

HISTORY

People don't just bring their brains to work: they also bring their hearts and soul.

They want to feel passionate about what they are doing and be a part of whatever is

great. We at Bajaj Electricals Limited, recognize this truism and seek out and strike

a dialogue straight with the hearts and souls) of our employees. Here is a quote from

Mr. Shekhar Bajaj, our Chairman and Managing Director -

"Every individual has the potential to perform if he or she gets proper motivation,

the right opportunity and the freedom to work. In the long run success is

achieved when ordinary people perform extraordinarily. It is important to keep an

open mind rather than drawing preconceived impressions about people. More

often that not, such impressions will be proven wrong."

Faster, Higher, Stronger - is our maxim, our way of individual and organizational

performance. This is how we managed a successful business turnaround in Bajaj

Electricals Ltd - with and through each one of our employees. And not only our

excellent brand of products, cur people provide an excellent competitive advantage to

us.

Bajaj Electricals Ltd. is planning to enter into a licensing agreement for its luminarie

business.

10

We are looking at a collaboration for our luminaire business :-7~ough a licensing

agreement as there is a need for technologically superior products which are state-of-

the art. We are in advanced discussions. I cannot disclose anything further at this

stage," Bajaj Electricals chief operating officer and president R Ramakrishnan said.

The luminaire business is one of the five special business units (SBUs) of the

company. The others are appliances, pans, lighting and the engineering business.

Bajaj Electrical luminaires find applications in the engineering, power, steel, cement,

fertilizer, chemical and petrochemical sectors.

Earlier, Bajaj Electricals had entered into a licensing agreement with Morphy

Richards of the UK for its irons. This tie-up also entails a technology transfer.

The company is targeting revenues of Rs 1,000 crore by the year 2007-08.

"The biggest contributor to this will be the engineering business. Till

recently, we were only into the manufacture of power transmission towers. Now,

we will be installing them too," Mr Ramakrishnan added. The engineering and

projects business is also the fastest growing business.

This business has an order book of over Rs 150 crore and has grown by over 85%,

senior company executives said. The company clocked net sales of Rs 505.26 crore in

the last fiscal and is expected to add around 25% to its topline this-_-) fiscal, he said.

11

The company which had been facing tough times a few years back has bounced back

after the implementation of a restructuring exercise.

This entailed the reorganisation in to five SBUs, reduction in _crest rates, brand

building, and a growth of revenues.

Last year, the company also came out with a rights issue at premium of Rs 15 per

share. Further, the company also of out of the die-casting business by giving a VRS at

the plant, selling the development rights of the land and entering into a non-compete

clause with a competitor.

Revamp helps Bajaj Electricals Turn Around

Hindu Business line

January 31, 2005

K. Giriprakash

V. K. Varadarajan

Bangalore Jan 30, 2005: BAJAJ Electricals has restructured its entire operations,

including shutting down some of its loss-making ventures, as part of its plans to

turnaround the company.

Bajaj Electricals' President and Chief Operating Officer, Mr R. Ramakrishnan, told

Business Line that the restructuring has helped the company to turnaround and now

it expects to double its revenues to about Rs 1,000 crore within three years. The

12

company hopes to end the current fiscal with a revenue of around Rs 630 crore, an

increase of 20 per cent over fiscal 2003-04.

Mr Ramakrishnan said it had roped in Accenture Consulting to chart out a

turnaround for the company. As per the new plan, Bajaj Electricals dropped its

matrix structure for its organisation in favour of separate business units for each of

its businesses.

It now has five separate business units - engineering and projects, luminaire,

appliances, fans and lighting. "Each of these units compete as separate businesses with

its, competitors," Mr Ramakrishnan said. The company also got rid of unviable

businesses.

For example, it shut down its diecast operations and offered VRS to 180 people. It

also sold surplus land of the unit.

He said the company also went in for financial restructuring by swapping high cost

funds with low cost long-term debt. The banks too have lowered interest cost and

increased the moratorium for another two years.

The company plans to invest about Rs 20 crore, spread over the next fiscal, to

double the existing capacity in its engineering unit to execute its Rs 160 crore

13

worth of fresh order from Powergrid Corporation for erection and commissioning of

power transmission tower.

Mr Ramakrishnan said the engineering unit, which registered a growth of 88 per cent

over the last fiscal, is expected to outpace other business units. The company expects

about 25 per cent of its revenues to come from its engineering business, he said.

Mr Ramakrishnan said with the PowerGrid according theril the status of approved

EPC contractors, it expects bigger orders from the power company. He pointed out

that with an estimated investment proposal of Rs 75,000 crore by Powergrid

Corporation, there was a huge opportunity for the company.

Mr.Ramakrishnan said the company had entered into a licensing arrangement with

Trilux, a leading European luminaries brand and a market leader in

lighting in Germany. The tie-up, though is aimed to market the products to

premium segments in the country, could lead to manufacturing Trilux products in

the long term. Trilux would complement

Bajaj's own products to provide full spectrum of lighting products, he said. Similarly,

Bajaj's tie-up with UK's leading small appliances brand Morphy Richards had helped

it to position itself in the premium end of the market.

Mr Ramakrishnan said Bajaj Electricals has a market share of between 15 per cent

and 20 per cent in the appliances segment, 20 per cent in luminaries and 10

14

per cent in lighting. The company has also been able to take on the unorganised

sector by offering competitive pricing of its products in the lower end. "Our

China sourcing strategy has helped us to buy from the world's best without

compromising on the quality of the products," he said.

Bajaj International Pvt. Ltd. is an associate company of Bajaj Electricals Limited

(BEL), and is a part of The Bajaj Group which has an annual turnover of US$

1.4 billion, employing approximately 33,000 people.

The Brand 'Bajaj' is a mark which guarantees highest international quality standards.

It signifies an uncompromising attitude towards any divergence frorn quality

products.

Our group company Hind Lamps Ltd. has had a manufacturing venture with Philips

Holland for more than five decades for GLS and Miniature Lamps and for Fluorescent

Tubes.

15

Bajaj Electricals Keeps on Shining More...

Bajaj Electricals Limited (BEL) is a part of the "Bajaj Group" of India who are

in the business of s teel , sugar, two wheelers & three wheelers. Bajaj

Electricals is well established in their range of products such as lamps & tube

lights, luminaires, small household appliances, ceiling fans & table fans and

turnkey engineering services. The company has been in existence for the last 60

years and has steadily grown and expanded its business both in domestic and

international markets.

Bajaj Electricals has 20 branch offices and 4 regional offices spread in different

parts of the country besides being supported by a chain of about 600

distributors, 2500 authorised dealers, over 60,000 retail outlets and over 200

service franchisees

BEL today has five major business units comprising of lighting, luminaires,

electric fans, home appliances, turnkey engineering projects. BEL's export

activities are well supported through its International division. The Company

has recently forayed into electric power generation through wind energy in its

quest to reduce the depletion of fossil fuels and preserved the environment.

Total Quality Management (TQM) has taken roots in some important business

processes of the Company. Few business units of the company have already received

16

ISO Certifications while the other BUs are on the anvil to obtain the same. BEL

has many technology tie-ups and collaborations with major international players, the

details of which are given under business activities.

17

PRESS NEWS

Times of India January 22, 2005

Bajaj Electricals has reported a 93.8 percent rise in its net profit for the third

quarter ended December 31, 2004 at Rs 4.75 crore as against Rs 2.45 crore in the

corresponding period of last fiscal. Revenues from operations during the quarter

were higher at Rs 170 crore as against Rs 126 crore i n the same period of 2003-04.

Leading the Way

Corporate Dossier

Economic Times

January 14, 2005

Shekhar Bajaj, Chairman & MD, Bajaj Electricals Ltd.

A leader sets an example for others to emulate, and hence must be a high-level

performer. He's also respected by subordinates and colleagues, alike. He

must embody honesty, integrity and trustworthiness.

A leader is knowledgeable and well read and must guide and empower his

subordinates to perform their best.

18

He must also be supportive to his subordinates and fair at his workplace, at all

times. He must be sympathetic, yet firm when required. A leader is one who enthuses

people by giving credit when it's due, whom it's due to, gracefully and quietly.

A leader is a builder of performance-oriented teams. He builds on people's strengths

and helps overcome their weaknesses. A leader is one who is whole-heartedly

committed to the organisational goals and aspirations. A leader is the organisation, in

essence.

These are points from the speech I made at a management conference 10 years ago,

and these simple management truths are still relevant in running Bajaj Electricals today.

Since the past 25 years that I have worked in Bajaj Electricals, I have seen

many ups and downs - some that challenged my ideals and others that inspired me

to continue.

One of the most important things for a leader is that he should be aware that

he is the pillar in unfavourable times and the sole motivator for his

employees when the ship starts to sink.

He shouldn't be demoralised when things aren't going as expected, nor should

he be jubilant when things are going well. He's the one to support and

19

motivate his team to tackle the impossible and find solutions to the most complex

problems.

It's more valuable to take decisions fast, even with a few mistakes rather than

delay decisions.

Around three years back, we were going through a downturn, I realised that unless we

reduced our costs and make ourselves trimmer and take other corrective actions, the

company wouldn't be able to turn around.

Therefore, we instated a five-pronged strategy through the theme 'War for Profits',

where all members of Team Bajaj were involved in controlling fixed costs,

reducing working

Capital, improving margins, increasing volumes and getting ,,ut of loss-making

businesses.

Restructuring must be done easily only during a downturn, as everybody feels the

need to change and are open to taking risks.

For any organisation, people are the key assets and therefore communication is vital.

20

Effective communication during bad times is imperative as opposed to

suppressing

information. I have learned that a pat on the back can go a long way, reaping more

benefits than just financial rewards.

Our focus on achieving a turnaround bore fruit when the company improved

its market share in our restructured five business units. We extended and added

value to our portfolio of products and solutions to meet differing customer

needs.

In addition to our aggressive marketing activities we explored strategic

alliances with business partners around the globe. Quality is important but soon

it will be taken as given.

What is going to differentiate different companies are innovation, service and

distribution.

Every individual has the potential to perform if he or she gets the proper

motivation, the right opportunity and the freedom to work. In the long run, success

is achieved when ordinary people perform extraordinarily.

21

It's important to keep an open mind rather than drawing pre-conceived

impressions about people. More often than not, such impressions will be proven

wrong.

A majority of labour problems arise because of improper management rather than the

easily blamed labour attitude.

Mahatma Gandhi succeeded in uniting multi-lingual Indians against the British

rule (in an era of no technological communications) because he could relate

to the masses - as he understood their problems because he lived with them,

like them, and empathised with them.

Our strategy is to capture the bottom of the pyramid. India's population of 100 crore -

from a liability can be converted into an opportunity for growth and profitability.

I would like to end with a quotation by Lau-tzu - the founder of Taoism

A leader is best when people barely know that he exists. When his work is done, his

aim fulfilled, they'll all say, "We did it ourselves".

22

PRODUCT PROFILE

Bajaj Storage Water Heater

Energy Efficient Horizontal

10 year guarantee on copper tank

30% energy savings over ISI norms

2 year comprehensive guarantee including heating element

Available in 10 litre capacity

Energy Efficient Vertical




Available in 10 litre capacity

Energy Smart Horizontal


Imported Combistat



Available in 10, 15, 25, 35 and 50 litre capacity

Energy Smart Vertical


Imported Combistat



Available in 6, 10, 15, 25, 35 and 50 litres capacity

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Majesty IQ Horizontal


Imported Combistat

PUF insulation for 30% energy savings over ISI norms


Rust-free enginnering plastic body

Available in 15, 25 and 35 litre capacity

Majesty IQ Vertical


Imported Combistat

PUF insulation for 30% energy savings over ISI norms


Rust-free engineerign plastic body

Available in 15, 25 and 35 litre capacity

Majesty Vertical


Imported Combistat

Glasswool insulation for 30% energy savings over ISI norms


Rust-free enginnering plastic body

Available in 15 and 25 litre capacity

24

Bajaj Instant Water Heater

Majesty Instant


Rust-free engineering plastic body

Multiple safety system


Available in 1 litre and 3 litres capacity

Majesty IQ Instant


Rust-free engineering plastic body

Imported capillary thermostat

Rapid and normal heating option

Multiple safety system

25

Bajaj Instant Gas Water Heater

Aquatherm Instant Gas Water Heater

Oxygen depletion monitor

LED indicator for temperature

Auto Shut Off

20 minute timer

26

Office LocatorHead Office51, Mahatma Gandhi RoadFortMumbai - 400023Phone - 22043780, 22043733Fax - 22828250

Registered Office45/47, Veer Nariman RoadFortMumbai - 400023Phone - 22043841, 22045046Fax - 22851279

Company Showroom'World of Bajaj Electricals'Bajaj BhavanNariman PointMumbai - 400021Phone - 22023626

27

MARKET SHARE

Shareholding Pattern

As on 31st December, 2010

Under Clause 35 of the Listing Agreement

A1

CategoryPromoter's holdingPromoters*

No. ofShareheld

ofshareholding

Indian Promoters 5693850 65.88

2

Foreign Promoters

Persons acting in

Nil Nil

104440 1.21

concert#

Sub Total:

5798290 67.09

B

3

Non-Promoter's holding Nil

Institutional Investors Nil

a(i) Mutual Funds 500 0.01

a(ii) Unit Trust of India 150 0.00

b(i) Banks 6687 0.08

b(ii) Life Insurance 746010 8.63

b(iii) Corporation of India

Oriental Insurance

108000 1.25

c

Company Ltd.

Flls

Nil Nil

Sub Total: 861347 9.97

4 Others

a Private Corporate 389298 4.50

Bodies

28

b Indian Public 1567010 18.13

c NRIs/OCBs 5905 0.07

d Any Other - Non 5430 0.06

e Resident

Foreign Companies

15600 0.18

Sub Total: 1983243 22.95

Grand Total: 8642880 100.00

as defined in Regulation 2(h) of SEBI (Substantial Acquisition of Shares and Takeovers)

Regulation, 1997. The promoter's holding shall include all entities in the promoter's

group-individual or body corporates.

# as defined in Regulation 2(e) of SEBI (Substantial Acquisition of Shares and

Takeovers) Regulations, 1997.

Note:

1. Total Foreign shareholding including Foreign Promoters, Fils, NRIs/OCBs

Foreign Banks, Foreign Nationals and GDR & ADR holdings is 26935 i.e. 0.31% of

the total issued equity capital.

Shareholding Pattern as on 31st December, 2010 Under Clause 35 of the Listing

Agreement

Persons Holding more than 1% of the shares of the Company

29

SL.

No.

A

1

Name of Shareholder

1. Promoters:

Jamnalal Sons Pvt. Ltd.

No. of

Share

1429541

to

equity

capital

16.54

2 Bajaj Auto Ltd. 1719676 19.90

3 Hind Musafir Agency Pvt. Ltd. 200000 2.31

4 Bajaj International Pvt. Ltd. 200000 2.31

5 Shri Shishir Kamalnayan 136400 1.58

6 Bajaj

Shri Rahulkumar Kamalnayan

114000 1.32

7 Bajaj

Shri Shekhar Bajaj

190680 2.21

8 Shri Madhur Bajaj 90786 1.05

9 Shri Anant Bajaj 175366 2.03

B 2. Foreign Promoters:

Non-Promoter's holding:

3a. Mutual Funds & UTI

3b. Banks

Nil

Nil

Nil

Nil

Nil

Nil

8.63

Life Insurance Corporation

of India 1.25Oriental Insurance 108000

Company Ltd.

3c. Flls

4a. Private Corporate Bodies

4b. Indian Public

4c. NRIs/OCBs

4d. Any Other - Non Resident

4e. Foreign Companies

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

30

ORGANIZATION HIERARCHY

1) Managing director

2) President

3) Vice president

4) National sales manager

5) Regional manager

6) Assistant manager

7) Senior sales executive

8) Sales executive

9) Financial coordinator

31

OBJECTIVE OF THE

RESEARCH

32

OBJECTIVES OF THF RESEARCH

The objective of the project ``factors affecting consumer buying behavior& to know the

market position of Bajaj geysers "are as followed -

1) To find out what does the user of the geyser think about Bajaj electrical limited.

2) To study their preference for the geyser brand selection.

3) To study the market opportunities of Bajaj electrical limited to help in the

formulation of marketing strategy.

4) To suggest some measures to make Bajaj electrical limited more competitive.

5) To study the customers satisfaction level in regards to the strength of the Bajaj

electrical limited.

6) To study the market prospects of Bajaj electrical limited.

7) To study the reasons behind best geysers.

8) To study strength and weakness of Bajaj geysers.

33

RESEARCH

METHODOLOGY

34

RESEARCH METHODOLOGY

STATEMENT OF THE PROBLEM AND ITS SIGNIFICANCE:

The study is on "factors affecting consumer buying behavior and market

condition of bajaj geysers with a special synopsis on competitive marketing

strategies".

It covers aspects like market share of the company, buying attributes of

customers, preference of the customer etc. The study is a modes effort at

understanding the consumers attitude about Bajaj electrical ltd, which has a very

good market share as their competitors.

Research simply means a search for facts-answers to questions and solution to

problems. It is a purposive investigation. It is an organized enquiry. In other words

research means search for knowledge and research methodology is a way

systematically solve the research problems.

It is a science of studying how the search is actually done. It presents the source of

data collection, the sampling procedures and tools of investigation and limitation of

the study.

35

My research project has a specified framework for collecting the data in an

effective manner. Such framework is called "research design".

The research process:

It includes following steps

1. Defining the research problem & research objective:

The definition of the research problem includes the study of the topic

“factors affecting consumer buying behavior & market position of Bajaj geysers in

Delhi ".

2. Developing the research plan:

Second stage for developing the research plan calls for gathering the

information.

It consists of -

Data sources:

The researcher can gather primary data, secondary data or both.

Primary data are data freshly gathered for specific purpose or for a specific

research project.

36

Secondary are data that were collected for another purpose and already exist

somewhere.

Research Approaches:

Primary data can be collected in five ways:

1) Through observation:

Fresh data can be gathered by observing the relevant actors and settings.

2) Focus group research:

Focus group research is a gathering of six to ten people who are invited to spend

a few hours with a skilled moderator to discuss a project.

3) Survey research:

Surveys are best suited for descriptive research. Surveys are used to learn

about people knowledge, beliefs, preferences and satisfaction.

4) Behavioral data:

Customers leave traces of their purchase behavior in store scanning data, catalog

purchase and customer database. Much can be learned by analyzing these data.

37

5) Experimental research:

The purpose of experimental research is to capture cause & effect relationship by

eliminating competing explanations of the observed findings.

RESEARCH INSTRUMENTS:

Three main instruments used in collecting primary data are

1) Questionnaires:

A questionnaire consists of a set of questions presented to respondents.

Questionnaire needs to be carefully developed, tested and debugged before they are

administered on large scale.

2) Psychological tools:

Psychological tools consist of laddering techniques & depth interviews.

3) Mechanical devices:

Mechanical devices are occasionally used in marketing research. Galvanometer

measures the interest or emotions aroused by exposure to a specific ad or picture.

38

QUESTIONS ARE OF TWO TYPES:

1) Closed end questions

2) Open end questions

Closed end question include:

Dichotomous

Multiple choice

Likert scale

Semantic differential

Important scale

Open end questions include:

Completely unstructured

Word association

Sentence completion

Pictures

39

SAMPLING PLAN

After deciding the research plan and research instrument, the marketing researcher

must design a sampling plan. This calls for three decisions:

1) Sampling unit:

Who is to be surveyed? The market researcher must define the target population that

will be sampled. Once the sampling unit is determined, a sampling frame must

be developed so that everyone in the target population has an equal or known

chance of being sampled. I have completed my survey in south & east Delhi.

2) Sampling size:

How many people to be surveyed? Large samples give more reliable results than small

samples. It mainly refers to no of respondents from the universe. My sample size

consists of 50 dealers of different home appliances brands.

3) Sampling procedure:

How should the respondents be chosen? To obtain a representative sample, a

probability sample of the population should be drawn.

40

SAMPLING MAY BE

1) Probability sampling

It includes:

Simple random sampling

Stratified random sampling

Cluster sampling

2) Non probability sampling

It includes

Convenience sampling

Judgment sampling

Quota sampling

SAMPLING TECHNIQUE USED:

Due to constraint of tine, convenient sampling is used. This sampling method

involves purposive or deliberate selection of particular units of the universe for

constituting a sample, which represents the universe. In this population elements

are selected for inclusion in the sample based on the ease of access.

41

3) Collect the information

The data collection phase is most expensive and most prone to error. Four major

problems arise in this phase:

1) Some respondents will not be at home.

2) Other respondent will not cooperate.

3) Other will give biased answers.

4) Some interviewers will be biased.

4) Analyze the information

The next to last step in the marketing research process is to extract findings from the

collected data. Different types of statistical techniques are used.

5) Present the findings

As the last, the researcher presents the findings. The researcher should present

findings that are relevant to major marketing decisions.

6) Decision making

After completing all phases decision is formulated that is advantageous for the

organization. Decisions made are checked and implemented by managers.

42

STATISTICAL TOOLS USED:

Tabulation of data & develops frequency distribution.,

Averages and measure of dispersion are computed.

Simple and complex tables are used.

One dimensional diagrams are used e.g. bar diagrams.

Two dimensional diagrams are used e.g. pie diagrams.

Graphs are used.

Sampling methods are used.

43

DATA ANALYSIS

&

FINDINGS

44

DATA ANALYSIS AND FINDINGS

The following pages give an in depth analysis and interpretation for the data collected

from dealers. Each aspect of analysis is shown separately accomplished with

tabulatation, a graphical representation and an interpretation for the same.

Fifty dealers were taken to collect the information or data.

45

1) Which geysers do you deal in?

TABLE -1

Baj aj 40

Usha 3 5

Venus 20

Reckold 45

Spare hot 10

GRAPHICAL REPRESENTATION:

GRAPH -1

INTERPETATION:

The result shows that maximum number of dealers deal in Reckold geysers (45)

whereas Bajaj dealers are (40), Usha dealers are (35), Venus dealers are (20) &

Sparehot dealers are (10).

46

2) How old is your retail outlet?

TABLE-2

LESS-1 YEAR 10%1-4YEAR 20%

4-8YEAR 40%

8-ABOVE 30%


GRAPH-2

INTERPETATION:

From the above interpretation it is clear that 10% dealers have less than 1 year old retail

outlet, 20% dealers have 1-4 year old retail outlet, 40% dealers have 4-8 years old retail

outlet whereas 30% dealers have more than 8 years old retail outlet.

47

3) Which geyser do you think is best & why?

TABLE-3

Bajaj 20%

Reckold 50%

Venus 10%

Usha 20%

Sparehot -


GRAPH-3

INTERPETATION:

50% dealers said Reckold geysers are best, 20% prefer both Usha & Bajaj whereas l0%

said Venus is best.

48

4) What are the strengths of Bajaj geysers?

TABLE-4

Strengths No. of Respondents

Quality 25

Look 20

Price 5


INTERPRETATION:

25 dealers said quality is the Bajaj strength, 20 dealers said look is its strength whereas 5

dealers said price as its strength.

49

5) What is the marketing prospect of Bajaj Geysers?

Table –5

Marketing prospect of Bajaj Geysers Percentage

Good 60%

Average 30%

Bad 10%

GRAPHICAL REPRESENTATION

INTERPRETATION

60% of dealers said good about marketing prospect of Bajaj geysers, 30% said it as

average whereas 10% said it as bad.

50

6) Are you satisfied with the margin you got by selling Bajaj geyers?

TABLE-6

Yes 70%

No 30%


INTERPRETATION

70% of the dealers are satisfied by the margin whereas 30% dealers are not

satisfied by the margin. They want more margin on Bajaj geysers.

51

7) For which brand of geysers the demand is high?

TABLE-7

Brand Demand

Bajaj 25%

Reckold 40%

Usha 20%

Venus 10%

Sparehot 5%


INTERPRETATION

From the above graph we conclude that maximum demand is of Reckold (40%), then

there is a demand of Bajaj followed by Usha & Venus.

52

8) How much percentage of customer prefer following brands?

TABLE – 8

Brands Percentage of customer

Bajaj 35%

Reckold 30%

Usha 25%

Venus 10%

Sparehot 0%


INTERPRETATION

The above table shows that 35% of customers want to purchase Bajaj geysers,

30% f customers want to purchase Reckold geysers, 25% of customers want to

purchase Usha geysers & 10% of customers want to purchase Venus geysers.

53

9) What are the reasons for switching customers from Bajaj geysers to other

geysers?

TABLE – 9

Reasons No. of respondents

Large delay in servicing 35

Lack of marketing strategies 15


INTERPRETATION

From the above table we conclude that major reasons for switching customers to other

brand are large delay in servicing & lack of market strategies.

54

10) How would you rank Bajaj geysers on a scale of 10?

TABLE – 10

Rank 1 10

Rank 2 30

Rank 3 10


INTERPRETATION

The above table shows that 30 dealers ranked Bajaj as second, 10 dealers ranked

Bajaj as first whereas 10 dealers ranked Bajaj as third.

55

SWOT ANALYSIS

Strengths:

Brand image

Product quality

Product awareness in the market.

Dealers distributed widely across the country.

Good will in the market.

Older player in the market.

Weakness:

Lack of market strategies.

Lack of advertisement.

Delay in servicing facility.

Lesser promotion effort.

Opportunities:

Take advantage of brand image --Ba~jaj electrical limited"

Ability to convince the dealer through market representation.

Can afford major tie-ups.

Joint venture would increase database& product range.

Increase their presence at dealer point.

To use market leader strategies.

Threats:

56

Presence of other competitors with good capture of market eg

Reckold, Usha, Venus.

Loyalty of consumers to other brands.

57

SUGGESTION

58

SUGGESTIONS

I would like to recommend some points to the company. This is on the basis of the

survey and anal\-sis of the study conducted in south & east Delhi.

1) The company should keep up its good work and should provide good sere-ice

for its product at proper time, so that that the major dissatisfaction among the

dealers and customers is not created.

2) The company should give much emphasis on incentive schemes and more margin of

profit so that dealers are able to make more sales and have more profit for the

company.

3) Since the purchase decision of the customer is mostly influenced by the dealers

therefore the dealer should be fully equipped with the best of information and

some gifts at certain purchases.

4) The company should work on positioning i.e. act of designing the company's

offering and image to occupy a distinctive place in the mind of the target market.

5) Company should use differentiation tools:

In product differentiation it should focus on-

59

Form

Features

Performance

Durability

Reliability

Repairability

Design

In service differentiation it should focus on-

Ordering ease

Delivery

Installation

Customer consulting

Maintenance & repair

Miscellaneous

In personnel differentiation it should focus on-

Competence

Competence

Courtesy

Credibility

Reliability

Responsiveness

60

Communication

In channel differentiation it should focus on-

Coverage

Expertise

Performance

In image differentiation it should focus on-

Symbols

Symbols

Colors

Slogans

Special attributes

6) Company should also focus on events and sponsorships.

7) As Reckold and Usha are market leaders whereas Bajaj is market challenger in

home appliances it should use market challenger strategies which are given below

Frontal attack:

In pure frontal attack, the attacker matches its opponent's product, advertising.

price & distribution. The principal of force says that the side with greater

manpower will win.

Flank attack:

61

The major principal of offensive warfare is concentration of strength against

weakness.

Encirclement attack:

The encirclement maneuver is an attempt to capture a wide area of the enemy's

territory.

Bypass attack:

The most indirect assault strategy is bypass. It means bypassing the enemy and

attacking easier markets to broaden one's resource base.

Guerrilla warfare:

It consists of waging small intermittent attacks to harass and demoralize the

opponent and eventually secure permanent footholds.

8) Wall paintings, pamphlets_ distribution procedure in the public can also help in the

promotion of Bajai geysers.

62

LIMITATIONS

63

LIMITATIONS

Every person try to do the work in the best possible way, but yet he/she faces

certain difficulties. But still proper care was taken to present the report in the best

possible way, but still the difficulties which was faced are as follows-

1) Area of survey is also limited as survey was conducted in south Delhi & east Delhi

only.

2) Time and other factors, which are beyond human limitation, have also a bearing on

the study.

3) Sample size taken for the study is quite small and it therefore does not represent the

whole population.

4) Since only limited number of dealers have been selected which do not represent the

whole of the dealers in the Delhi city.

5) Some of the dealers do not take interest in filling questionnaire.

6) Some of the dealers give wrong answers due to lack of interest.

7) Some of the dealers are biased.

64

CONCLUSION

65

CONCLUSION

From the analysis following inferences can be drawn:

Some of the dealers mainly prefer to sell Bajaj geysers than to Reckold

geysers because they have been dealers of Bajaj company for the last 30

years. Secondly because of background reputation of the company.

Dealers are at the View, that the company needs to have some incentive

schemes to promote m re sales because Reckold and Usha are giving

tough competition to Bajaj Electrical Limited.

Most of the dealers were the opinion that the company should adopt better

methods for promoting their brand due to the entrance of the company's

brand.

More promotional efforts are needed on the part of the company in

media advertising so that each and every person comes to know

about the Bajaj geysers.

Most of the consumers give their preference to quality and service of geysers.

Therefore company should take proper steps for improving the service

facility for Bajai geysers.

66

The purchase decision of the consumers is mostly influenced by dealers

due to their hold on the product and experience in dealing with that product.

So it is very necessary to have very good relationship with dealers & to give

them benefits as far as possible.

Consumers of Bajaj geysers prefer the overall look as compare to other

geysers. So the company should try to maintain it always.

67

ANNEXURES

68

QUESTIONNAIRE

NAME OF DEALER :

ADDRESS :

NAME OF SHOP:

Which geysers do you deal in?

Bajaj [ ]

Usha [ ]

Venus [ ]

Reckold [ ]

Spare hot [ ]

How old is your outlet?

1-4 year [ ]

4-8 year [ ]

8 years & more [ ]

Which geyser do you think is best & why?

1)

What are the strength of Bajaj geyser?

1)

What is the marketing prospect of Bajaj geyser?

Good [ ]

Average [ ]

69

Bad [ ]

Are you satisfied with the margin you are get by seling Bajaj geysers?

Yes [ ]

No [ ]

For which brand of geyser the demand is high?

Bajaj [ ]

Usha [ ]

Venus [ ]

Reckold [ ]

Spare hot [ ]

How much percentage of customers prefer following brands geysers?

Bajaj [ ]

Usha [ ]

Venus [ ]

Reckold [ ]

Spare hot [ ]

What are the reasons for switching customers from Bajaj geysers to other

geysers?

1)

2)

How would you rank Bajaj geysers on the scale of 10?

______________________________________________________________

70

BIBLIOGRAPHY

71

BIBLIOGRAPHY

PERSONS

Mr. Gaurav Saxena--

WEBSITES

www.bajajelectrical.com

www.google.com

MAGAZINES

Business in India

BOOKS

Marketing Management by Philip Kotler

72

http://www.google.com/

http://www.bajajelectrical.com/

Bajaj Electricals Limited

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