A PROJECT REPORT ON :EXPLORING CORPORATE GIFTING POTENTIALOF BAJAJ HOME APPLIANCES IN OKHLA INDUSTRIAL AREA a report submitted towards the partial fulfillment of the requirement of the two years full-time Post Graduation Diploma in Management. Submitted by Yadram Sharma (2008-10) Post Graduate Diploma in Management 1
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A PROJECT REPORT ON
:EXPLORING CORPORATE GIFTING POTENTIALOF BAJAJ
HOME APPLIANCES IN OKHLA INDUSTRIAL AREA
a repor t submi t t ed towards the par t ia l fu l f i l lment o f the
requ irement o f the two years fu l l - t ime Pos t Graduat ion D ip loma
in Management .
Submi t t ed by
Yadram Sharma
(2008-10 )
Pos t Graduate D ip loma in Management
Ro l l .No . :2k81 /m/38
ASIA PACIFIC INSTITUTE OF MANAGEMENT
3,4 - Ins t i tu t i ona l Area Jaso la , New De lh i
1
ACKNOWLEDGEMENT
"Success is any endeavor, calls for cooperation and guidance from seniors &
colleagues". This was aptly bought to me while undergoing my research work for the
project. It is impossible to thank the people who have helped me prepare my project, but I
would like to take the opportunity to express my profound gratitude and indebtedness to
the following.
Last but not the least the cooperation and my deep gratitude to Mr. Puneeet Saxena
(AREA MANAGER) & all of my friends for providing me all implicit and explicit
support during the project.
However, the describable contents source of inspiration and supervision at every stage of
the study was my project guide, Ms. Pratima Sharma. It was an honour to have worked
under her.
2
PREFACE
Someone has rightly said that practical knowledge is far better than classroom
teaching. During this project, I fully realized this and I came to know about how
does a person of concern Dept.of Company choose among a varied range of
products available to him.
The subject of my study is Marketing Research on Bajaj home appliances in Okhla
industrial area.
The report contains first of all brief introduction about Bajaj electrical limited, then
comes to introduction regarding "Exploring corporate gifting potential" & market
position of Bajaj home appliances. Finally there comes the data presentation and
analysis in the end of my report.
I also put forward some suggestions hoping that they will help in Bajaj electricals
limited to move a step forward to being the very best.
3
INDEX
1. Chapter 1
Executive summary of the project
2. Chapter 2
Profile of the company
Introduction
History
Product profile
Market share
Organizational chart
3. Chapter 3
Research Methodology
Objectives of the study
Scope of the study
Type of data
Data collection
Statistical tools used
Limitations of the study
4. Chapter 4
Finding & Analysis
SWOT Analysis
5. Chapter 5
Conclusion & Suggestions
6. Annexure
Bibliography
Questionnaire
4
CHAPTER 1
EXECUTIVE SUMMARY
OF
THE PROJECT
5
EXECUTIVE SUMMARY
Companies offering product or services will need to understand this new face of the
company/institute. 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 organizations 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 organizations to
buy the company's products and influence the future industry structure.
Keeping in view such stiff competition, it’s a miniscule effort from my
side under which I have tried to fulfill the following objectives:
1) To find out what does the purchaser of the home think about Bajaj electrical limited.
2) To study their preference for the bajaj home appliances.
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 purchasers satisfaction level in regards to the strength of the Bajaj
electrical limited.
6) To study the market prospects of Bajaj electrical limited.
The findings of the research lead to following conclusion
Some of the companies mainly prefer to purchase Bajaj electrical items than to
others
6
Dealers are at the View, that the company needs to have some incentive schemes to
promote more sales because philips and Usha are giving tough competition to
Bajaj Electrical Limited.
Most of the companies were the opinion that the company should adopt better
methods for promoting their brand due to the entrance of the company's
brand.
MAJOR FACTORS INFLUENCING
PURCHASING BEHAVIOUR:
The major factors that influence the purchasing 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 becomes the 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
7
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.
8
CHAPTER –2
PROFILE OF THE COMPANY
9
INTRODUCTION
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 adopted '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.
10
kamalnayan Bajaj, elder son of Jamnalal Bajaj, followed footsteps of his illustrious
father and consolidated the Bajaj 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 1994. .
11
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, our people provide an excellent competitive advantage to us.
We are looking at a collaboration for our luminaire business through 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.
12
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 1,500 crore by the year 2009-10.
"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. 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, brand building, and a growth of
revenues.
13
Last year, the company also came out with a rights issue a t 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 company
hopes to end the current fiscal with a revenue of around Rs 730 crore, an increase of 20
per cent over fiscal 2008-09.
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
14
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 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.
15
Mr Ramakrishnan said with the Power Grid according thrill 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.
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 per cent in
lighting. The company has also been able to take on the unorganized 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,"
16
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
ISO Certifications while the other BUs are on the anvil to obtain the same.
17
PRESS NEWS
Times of India January 22, 2008
Bajaj Electricals has reported a 93.8 percent rise in its net profit for the third
quarter ended December 31, 2007 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 2007-08.
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
. 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
GX 10
Powerful motor : 550 watts, 18000 rpm 5 year guarantee on motor 3 stainless steel jars Unbreakable polycarbonate jar handles Cord winder Overload protector
DX 5
Multiple, adjustable temperature levels Thermal fuse for additional safety Pilot light for thermostat operation Swivel cord outlet Large Sole Plate
Non stick coated sole plate
19
Cordless Kettle 1 Litre
1 Litre capacity Cordless operation for easy serving and
safety Auto shut off External water level indicator on both
sides
Self illuminating transparent switch
Aqua Naturale
Makes drinking water healthy and safe through seven stages of purification. It's a completely natural process. In fact, it's the only purifier that works without any resins. And without any electricity. What's more, it doesn't require a continuous flow of water supply.
The water that you drink is not only cleaned and sterilized but also made healthier through the addition of valuable minerals. Result: Healthy, refreshing water. Just as nature gives you.
Coolest RC 2004 – Rotochill
Made up of an attractive, corrosion-free engineered, thermoplastic material for durable performance
Latest state-of-the-art design Sleek and all new ultra modern looks Extra tough motor Uniform water distribution
Water level indicator
20
AX 4
4 brass burners with Stainless Steel body High efficiency burners Extra wide top accommodating large
vessels Available for LPG and PNG
with 5 year guarantee
1600 T3
16 Litre Capacity Stainless Steel inner chamber Keep Warm Function
0-60 minutes timer
Aquatherm Instant Gas Water Heater
Oxygen depletion monitor LED indicator for temperature Auto Shut Off
Company Showroom'World of Bajaj Electricals'Bajaj BhavanNariman PointMumbai - 400021Phone - 22023626
22
MARKET SHARE
Shareholding Pattern
As on 31st December, 2008
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
23
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, 2008 Under Clause 35 of the Listing
Agreement
Persons Holding more than 1% of the shares of the Company
24
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
25
ORGANIZATION HIERARCHY
1) Managing director-shri Shekhar Bajaj
2) President-R.Ramakrishan
3) Vice president
4) Executive director-Anant Bajaj
5) Regional manager –puneet saxena
6) Assistant manager
7) Senior sales executive
8) Sales executive
9) Financial coordinator
26
CHAPTER – 3
RESEARCH METHODOLOGY
“Innovating to set new standard”
27
RESEARCH METHODOLOGY
STATEMENT OF THE PROBLEM AND ITS SIGNIFICANCE:
The study is on “ explore corporate gifting potential and market condition of bajaj
home appliances with a special synopsis on competitive marketing strategies".
It covers aspects like market share of the company, buying attributes of corporate,
preference of the corporate etc. The study is a modes effort at understanding the
corporate 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.
My research project has a specified framework for collecting the data in an effective
manner. Such framework is called "research design".
28
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
“exploring corporate gifting potential of Bajaj home appliances in Okhla industrial
area(new 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.
Secondary are data that were collected for another purpose and already exist
somewhere.
29
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) Survey research:
Surveys are best suited for descriptive research. Surveys are used to learn about
organization’s knowledge, beliefs, preferences and satisfaction.
3) Behavioral data:
Organizations leave traces of their purchase behavior in store scanning data, catalog
purchase and customer database. Much can be learned by analyzing these data.
4) Experimental research:
The purpose of experimental research is to capture cause & effect relationship by
eliminating competing explanations of the observed findings.
30
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 depth interviews.
QUESTIONS ARE OF TWO TYPES:
1) Closed end questions
2) Open end questions
Closed end question include:
Dichotomous
Multiple choice
Likert scale
Open end questions include:
Structured questions
31
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 industrial area.that
will be sampled. Once the sampling unit is determined, a sampling frame must be
developed so that everyone in the target industrial area has an equal or known
chance of being sampled. I have completed my survey in okhla industrial area,new
delhi.
2) Sampling size:
How many organizations 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 90 company from different area of working in okhla.
3) Sampling procedure:
How should the respondents be chosen? To obtain a representative sample, a probability
sample of the population should be drawn.
32
S A M P L I N G
1) Probability sampling
It includes:
Simple random sampling
2) Non probability sampling
It includes
Convenience 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.
3) Collect the information
The data collection phase is most expensive and most prone to error. Four major
problems arise in this phase:
1) Other will give biased answers.
2) 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.
33
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.
34
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.
35
OBJECTIVES OF THF STUDY
The objective of the project ``exploring corporate gifting potential & to know the market
position of Bajaj home appliances "are as followed -
1) To find out what does the purchaser of the home think about Bajaj electrical limited.
2) To study their preference for the bajaj home appliances.
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 purchasers 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 home appliances.
8) To study strength and weakness of Bajaj home appliances.
36
LIMITATIONS OF THE STUDY
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 okhla industrial area 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 organizations have been selected which do not represent
the whole of the organization in the Delhi city.
5) Some of the organization do not take interest in filling questionnaire.
6) Some of the organizations give wrong answers due to lack of interest.
7) Some of the organizations are biased.
37
CHAPTER – 4
FINDINGS & ANALYSIS
38
DATA ANALYSIS AND INTERPRETATION
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.
39
1) Which home appliances do you use as a gift items ?
TABLE -1
Bajaj 23
Usha 13
Philips 28
Inalsa 18
Maharaja 8
GRAPHICAL REPRESENTATION:
GRAPH -1
INTERPRETATION:
The result shows that maximum number of companies use Philips (28) whereas Bajaj
users are (23), Usha users are (13), inalsa users are (18) & maharaja users are (8).
40
2) From how much time you are using Bajaj product?
TABLE-2
LESS-1 YEAR 10%1-2YEAR 20%
2-3YEAR 40%
4-ABOVE 30%
GRAPHICAL REPRESENTATION:
GRAPH-2
INTERPRETATION:
From the above interpretation it is clear that 10% users have less than 1 year old buying
history. 20% users are buying it from 1-2 year , 40% users are buying it from h 2-3 years
whereas 30%users are buying it from more than 8 years .
41
3) Which home appliances do you think is best & why?
TABLE-3
Bajaj 30%
Philips 40%
Inalsa 20%
Usha 10%
Maharaja Nil
GRAPHICAL REPRESENTATION:
GRAPH-3
INTERPRETATION:
40% companies said Philips home appliances are best, 30% prefer Bajaj ,20% prefer inalsa
whereas l0% said maharaja is best.
42
4) What are the strengths of Bajaj home appliances?
TABLE-4
Strengths No. of Respondents
Quality 45
Look 30
Price 15
GRAPHICAL REPRESENTATION:
INTERPRETATION:
45 companies said quality is the Bajaj strength, 30 companies said look is its strength whereas
15 said price as its strength.
43
5) What is the marketing prospect of Bajaj home appliances?
Table –5
Marketing prospect of Bajaj Home
appliances
Percentage
Good 60%
Average 30%
Bad 10%
GRAPHICAL REPRESENTATION
INTERPRETATION
60% of companies said good about marketing prospect of Bajaj home appliances, 30%
said it as average whereas 10% said it as bad.
44
6) Are you satisfied with the margin you got by purchasing Bajaj home
appliances?
TABLE-6
Yes 70%
No 30%
GRAPHICAL REPRESENTATION
INTERPRETATION
70% of the companies are satisfied by the margin whereas 30% companies are not
satisfied by the margin. They want more margin on Bajaj home appliances.
45
7) How much percentage of companies prefer following a gifting brands?
TABLE – 8
Brands Percentage of customer
Philips 30%
Bajaj 25%
Usha 25%
Inalsa 10%
Maharaja 10%
GRAPHICAL REPRESENTATION
INTERPRETATION
The above table shows that 30% of companies want to purchase Philips .25% of
companies want to purchase bajaj, 25% of companies want to purchase Usha &
10% of customers want to purchase maharaja&inalsa
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8) What are the reasons for switching companies from Bajaj electricals to other
electrical companies?
TABLE
Reasons No. of respondents
Large delay in servicing 55
Lack of marketing strategies 25
GRAPHICAL REPRESENTATION
INTERPRETATION
From the above table we conclude that major reasons for switching buyers to other brand
are large delay in servicing & lack of market strategies.
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9) How would you rank Bajaj electrical on a scale of 10?
TABLE
Rank 1 20
Rank 2 45
Rank 3 25
GRAPHICAL REPRESENTATION
INTERPRETATION
The above table shows that 45 respondents ranked Bajaj as second, 20 respondents
ranked Bajaj as first whereas 25 respondents ranked Bajaj as third.
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10. Does Free gift (or coupon redeemable for a gift, including a discount coupon) enclosed in the package along with a product, influence you when you purchase your gifting items.
Yes 80No 10Total 90
Ho: There is no significant difference b/t the preference when they offer free gift or not.
H1: Free gift have significantly more impact on preference of product then without gift
p=0.88
standard error =0.048
Z=(p-µ)/standard error =7.92
tested at 10% significance levelZ= 1.29
As value of Z fall in the rejection region, so we will accept H1this shows that the impact of free gift is more on the preference of product
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11.You prefer home appliances products in __________ packaging.
Favournon favour total
Small 58 32 90Large 32 58 90Total 90 90 180
Ho: There is no significant impact of packaging on preference of gifting product.
H1: Small packaging has significantly more impact on preference of gifting product then large.
Eij=(row*col)/N
x2=(fo-fe)2/fe=7.9055
tabulated value of X21..10=2.70
So, this falls in rejection region and therefore we accept H1therefore small packaging has significantly more impact on preferences of gifting product
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12. How much preference do you give to that co. who offers eco-friendly packaging’s (like paper packs instead of poly packs)?
Definitely will buy Will buy 58Undecided 32Will not buy Definitely will not buy Total 90
Ho: there is no significant difference in preference given to co. which offer Eco-Friendly packaging (µ=3)H1:there is significant difference in preference given to co. which offer Eco-Friendly packagings (µ<3)
X=2.0222
µ=3
standard error=0.0721
Z=(x-µ)/standard error =8.32
tested at 10% significance level
Z= 1.29
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As value of Z fall in the rejection region, so we will accept H1 hence we conclude that organization prefer to buy products from co. which offer Eco-Friendly packaging. 13.How satisfied are you with the packaging offered by the Bajaj electrical ltd.?
Very satisfied 16Somewhat satisfied 58Somewhat dissatisfied 16Dissatisfied Total 90
People do not give high importance to packaging only and there are other parameter also which have impact on the buying behavior of the purchasing department of any
organization.
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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 of Bajaj electrical limited"
Ability to convince the companies through market representation.
Joint venture would increase database& product range.
Increase their presence at dealer point.
To use market leader strategies.
Threats:
Presence of other competitors with good capture of market eg
Philips, Usha, inalsa.
Loyalty of consumers to other brands.
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CHAPTER – 5
CONCLUSION & SUGGESTION
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CONCLUSION
From the analysis following inferences can be drawn:
Some of the companies mainly prefer to purchase Bajaj electrical items than to
others because they have been users of Bajaj company for the last 5-6 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 more sales because philips and Usha are giving tough competition to
Bajaj Electrical Limited.
Most of the companies 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 electrical items.
Most of the buyers give their preference to quality and service of home
appliances. Therefore company should take proper steps for improving the
service facility for Bajaj home appliances.
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The purchase decision of the companies 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.
buyers of Bajaj electrical products prefer the overall look as compare to
other electricals. So the company should try to maintain it always.
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RECOMMENDATIONS
I would like to recommend some points to the company. This is on the basis of the survey
and analysis of the study conducted in okhla industrial area, New 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 buyers 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 buyers 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-
Form
Features
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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
Communication
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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 Philips 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:
The major principal of offensive warfare is concentration of strength against
weakness.
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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