A MAJOR PROJECT REPORT ON “Customer Buying Preference towards Laptops A Comparative Analysis of Lenovo and Acer Laptops” Submitted in partial fulfillment for the award of the degree Master of Business Administration Chhattisgarh Swami Vivekananda Technical University, Bhilai . Submitted by, RAHUL PRAKASH SINGH MBA 4th Semester Session 2013-15 Approved By, Guided By, DR.SOUREN SARKAR PRATHEMESH TELANG Head of the Department Asst.Professor (FMS) Shri Shankaracharya Group of Institutions Faculty of Management Studies Approved By AICTE (Managed by ShriGangajali Education Society, Bhilai)
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Customer Buying Preference towards Laptops A Comparative Analysis of Lenovo and Acer Laptops
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A
MAJOR PROJECT REPORT
ON
“Customer Buying Preference towards Laptops
A Comparative Analysis of Lenovo and Acer Laptops”
Submitted in partial fulfillment for the award of the degree
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entered the smartphone market in 2012 and as of 2014 is the largest vendor of
smartphones in Mainland China. In January 2014, Lenovo agreed to acquire the
mobile phone handset maker Motorola Mobility from Google.
Lenovo is listed on the Hong Kong Stock Exchange and is a constituent of the
Hang Seng China-Affiliated Corporations Index, often referred to as "Red
Chips".
In 2009, Lenovo was the fourth largest vendor of personal computers in the
world The Company is the largest seller of PCs in China, with a 28.6% share of
the China market, according to research firm IDC in July, 2009. It reported
annual sales of $14.9 billion for the fiscal year ending 2008/2009.
In India :
Lenovo has gained significant market share in India through bulk orders to
large companies and government agencies. For example, the government of
Tamil Nadu ordered a million laptops from Lenovo in 2012 and single-handedly
made the firm a market leader. Lenovo distributes most of the personal
computers it sells in India through five national distributors such as Ingram
Micro and Redington
Given that most smartphones and tablets are sold to individuals Lenovo is
pursuing a different strategy making use of many small state-centric
distributors. Amar Babu, Lenovo's managing director for India, said, "To reach
out to small towns and the hinterland, we have tied up with 40 regional
distributors. We want our regional distributors to be exclusive to us. We will, in
turn, ensure they have exclusive rights to distribute Lenovo products in their
catchment area." As of 2013, Lenovo had about 6,000 retailers selling
smartphones and tablets in India. In February 2013, Lenovo established a
relationship with Reliance Communications to sell smartphones. The
smartphones carried by Reliance have dual-SIM capability and support both
GSM and CDMA. Babu claims that the relative under-penetration of
smartphones in India represents an opportunity for Lenovo.
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Lenovo has assembled a team of senior managers familiar with the Indian
market, launched mobile phones at all price points there, and worked on
branding and marketing in order to build market share. As of February 2014,
Lenovo claims that its sales of smartphones in India have been increasing 100%
per quarter while the market is only growing 15-20% over the same period.
Lenovo did marketing tests of its smartphones in November 2012 in Gujarat
and some southern cities, where Lenovo already had a strong presence.
Lenovo's strategy has been create awareness, maintain a broad selection of
phones at all price points, and developing distribution networks. Lenovo
partnered with two national distributors and over 100 local distributors. As of
February 2014, more than 7,000 retail outlets in India sold Lenovo
smartphones. Lenovo has also partnered with HCL in order to setup 250
service centers in 110 cities
In India, where Lenovo is relatively unknown, Lenovo grants distributors
exclusive territories, but allows them to sell computers from other companies.
Lenovo uses its close relationships with distributors to gain market intelligence
and speed up product development.
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Company Profile of Acer
Acer Inc. is a Taiwanese multinational hardware and electronics corporation
specializing in advanced electronics technology and is headquartered in Xizhi,
New Taipei City, Taiwan. Acer's products include desktop and laptop PCs,
tablet computers, servers, storage devices, displays, LED, LCD and plasma
televisions, smartphones and peripherals. It also provides e-business services
to businesses, governments and consumers. In 2014 Acer was the fourth-
largest personal computer vendor in the world. In the early 2000s, Acer
implemented a new business model, shifting from a manufacturer to a
designer, marketer and distributor of products, while performing production
processes via contract manufacturers. In addition to its core business, Acer
owns the largest franchised computer retail chain in Taipei, Taiwan.
Acer was founded by Stan Shih, his wife Carolyn Yeh, and a group of five others
as Multitech in 1976, headquartered in Hsinchu City, Taiwan.
It began with eleven employees and US$25,000 in capital. Initially, it was
primarily a distributor of electronic parts and a consultant in the use of
microprocessor technologies. It produced the Micro-Professor MPF-I training
kit, then two Apple II clones; the Microprofessor II and III before joining the
emerging IBM PC compatible market, and becoming a significant PC
manufacturer. The company was renamed Acer in 1987.
Acer increased worldwide sales while simultaneously reducing its labor force
by identifying and using marketing strategies that best utilized their existing
distribution channels. By 2005, Acer employed a scant 7,800 people
worldwide. Revenues rose from US$4.9 billion in 2003 to US$11.31 billion in
2006.
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In the mid-2000s years, consumer notebooks have been almost the sole
growth drivers for the PC industry, and Acer's exceptionally low overheads and
dedication to the channel had made it one of the main beneficiaries of this
trend. Acer grew quickly in Europe in part by embracing the use of more
traditional distribution channels targeting retail consumers when some rivals
were pursuing online sales and business customers. In 2007 Acer bought
Gateway in the USA and Packard Bell in Europe and became the Number 3
world provider of computers and number 2 for notebooks, and achieved
significant improvement in profitability. Acer has been striving to become the
world`s largest PC vendor, in the belief that the goal can help it achieve
economy of scale and garner higher margin. But such a reliance on the high-
volume, low-value PC market made Acer exposed when buying habits changed.
2013 re-organization
On November 2013 Chairman and CEO J.T. Wang, and President Jim Wong,
both resigned due to the company's bad financial performance. Wang had
already been reportedly due to leave Acer at year's end to be replaced by
Wong. Acer founder Stan Shih has taken over as board chairman and interim
president as the company searches for a new candidate to assume the role of
presidency. The position of CEO will be eliminated and its responsibilities
transferred to the chairman or president, according to Acer in order to
improve decision-making efficiency. On December 23 Acer named Jason Chen,
vice president of worldwide sales and marketing at Taiwan Semiconductor
Manufacturing, as its new president and CEO, effective Jan. 1. Entertainment
industry executive and former actress Nancy Hu was named CFO and
Spokesperson as of May 1, 2014.
In India :
Acer's subsidiary in India is Acer India (Pvt) Limited, and was incorporated as a wholly owned subsidiary of Acer Computer International, Ltd. in 1999. It is a notable vendor in key segments such as education, desktop computers and low profile notebooks for education. The headquarters are in Bangalore, India
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CHAPTER-3
LITERATURE REVIEW
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Definition of Buyer Behavior:-
Buyer behavior is ―all psychological, Social and physical behaviors of
potential customers as they become aware of evaluate, purchase,
consume and tell others about product & service.
Customer buying Decision Process:-
1. Problem identification:-
Problem recognition occurs when a buyer becomes aware of a difference
between a desired state and an actual condition.
Problem deification called need recognition by some is the point where
a potential buyer determines that they have an unfulfilled need want or
desire.
The recognition may result from internal stimuli (e.g. hunger, tired,
the need for additional help, etc.).
The recognition may result from external stimuli (e.g. an
external requirement, an ad, a suggestion from a someone, the creation of
a new position, the retirement of a key individual).
2. Information Search:-
The consumer tries to collect information regarding various
products/service. Through gathering information, the consumer learns
about completing brands and their features. Information may be
collected form magazines, catalogues, retailers, friends, family
members, business association, commercial, chamber of commerce,
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telephone directory, trade air etc. Marketers should find out the source
of information and their relative degree of importance to the
consumers.
Personal Sources:- Family, friends, neighbor, as quittances.
The customer, satisfaction is a function of closeness between the buyer,
expectation and the products Perceiver performance. The larger the gap
between expectation and performance, the greater is the consumer
dissatisfaction.
Factors which influence the consumer buying intention for laptops:
FACTORS
Price
Brand Name
Looks and Stylishness
Offers and Discounts
Advertisement & Promotions
After sales service
Processing speed
Battery Life
Availability
Warranty and Guarantees
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CHAPTER - 4
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It deals with the objective of a research study, the method of defining the research problem, the type of hypothesis formulated, the type of data collected, method used for data collecting and analyzing the data etc. The methodology includes collection of primary and secondary data. OBJECTIVES OF THE STUDY To identify various factor which affect customer buying preference
To determine those factor which influence the buying preference
of customer towards Laptop the most.
To compare the buying preference level of the customer toward Lenovo and Acer Laptops
RESEARCH PLAN A research design is a basis of framework, which provides guidelines for the rest of research process. It is the map of blueprint according to which, the research is to be conducted. The research design specifies the method of study. Research design is prepared after formulating the research problem.
RESEARCH PLAN
Research Design: Descriptive
Research Method Used Survey
Research Technique Used Questionnaire
Data Collection (location) Users
Sampling Size 50
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INFERENCE
The research design used in report is Exploratory and the research
method used is survey method. The technique used for survey is the
Questionnaire Technique.
DATA COLLECTION
Data are the raw materials in which marketing research works. The task of data collection begins after research problem has been defined and research design chalked out. Data collected are classified into primary data and secondary data PRIMARY DATA Questionnaires were used for collecting primary data. DESCRIPTIVE RESEARCH The study follows descriptive research method. Descriptive studies aims at portraying accurately the characteristics of a particular group or situation. Descriptive research is concerned with describing the characteristics of a particular individual or a group. Here the researcher attempts to present the existing facts by collecting data.
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CHAPTER - 5
DATA TABULATION,
ANALYSIS AND
RESULTS
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Data Tabulation, Analysis and Results
1. There were 50 Respondent out of which 32 have shown interest
towards Lenovo laptops whereas 18 have shown interest towards
Acer Laptops.
2. Ratio of the factors influencing purchase intensions for Acer laptops.
64%
36%
Respondent Ratio
Lenovo Acer
12%
3%
11%
10%
12% 9%
11%
10%
12%
10%
Acer Laptops
Price
Brand
Looks
Offers
Ad
AfterSales
Speed
Battery
Availability
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3. Ratio of the factors influencing purchase intensions for Lenovo
laptops.
4. Comparison of the different factors influencing purchase intensions
for Lenovo and Acer Laptops.
12%
12%
10%
9%
11% 8%
10%
9%
11%
8%
Lenevo Laptops
Price
Brand
Looks
Offers
Ad
AfterSales
Speed
Battery
Availability
0
1
2
3
4
5
6
7
Comparison of Factors
Acer
Lenovo
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CHAPTER – 6
FINDINGS OF THE STUDY
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This study is based on 10 Factors of Laptop which are considered
by a customer while purchasing.
64% of respondent have shown their interest towards purchasing
Lenovo Laptops.
36% of respondent have shown their interest towards purchasing
Acer Laptops.
Brand Name is the most influencing factor for customers while
purchasing laptops.
Price, looks and availably are the other factors which influence
customers more than other factors.
Comparatively Brand Name is the factor which influences the
customers towards purchasing Lenovo Laptops whereas
Availability is the Factor which influences the customers towards
purchasing Acer Laptops.
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CHAPTER - 7
RECOMMENDATION
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RECOMMANDATION
Lenovo should work on its Price Mix.
Lenovo should work on increasing the Performance of the
Laptops.
Lenovo should provide better availability..
Lenovo should concentrate on providing after sales services.
Acer should work on to improve its Brand name.
Acer should provide more offers and discounts to the customers.
Acer should improve its advertisement and promotion activities.
Acer should work on the speed of its laptops.
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CHAPTER-8
LIMITATION
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Limitation
Samples are collected from Bhilai city only considering that are the
representatives of entire market that may not be universally true. The
mental status of the respondent has not been considered that might
have influenced the accuracy of the data.
The study is having some limitation as follow:
The sample size is 50 which is very small.
The time given for the survey is too less for the study.
The study is done in Bhilai region because survey in all the area is
very time consuming, which is not possible during academic
session.
Time complexity is yet another limitation.
Mental status of the users might affect the survey.
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CHAPTER-9
CONCLUSIONS
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CONCLUSION
In India Bothe Lenovo and Acer laptops have a very bright future. There
are many different models with both these companies. This research
state that Price, processing speed, battery-life, performance and other
features are important factors, which affect the purchase intension of
customers. So both the company should focus on these dimensions as
well as on other dimensions which influence to purchase intension of
customers.
Both the Companies are performing equally on some factors like
Advertisement and after sales service, but still in some areas there is a
significant difference in the performance of both the companies.
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