A PROJECT REPORT ON A STUDY OF RETAILER OPINION SURVEY OF MARKETING MIX OF ACER PRODUCT IN HYDERABAD A Project Report Submitted by Mukesh Kumar Gupta (Regd No: 10/108) In partial fulfillment for the award of the degree Of POST GRADUATE DIPLOMA IN MANAGEMENT (2010- 2012) IN MARKETING ICBM – School of Business Excellence Member ACBSP 1
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A PROJECT REPORT ON
A STUDY OF RETAILER OPINION SURVEY OF MARKETING MIX OF ACER
PRODUCT IN HYDERABAD
A Project Report
Submitted by
Mukesh Kumar Gupta
(Regd No: 10/108)
In partial fulfillment for the award of the degree
Of
POST GRADUATE DIPLOMA IN MANAGEMENT
(2010- 2012)
IN
MARKETING
ICBM – School of Business Excellence
Member ACBSP
1
BONAFIDE CERTIFICATE
This is to certify that the project entitled, “A STUDY OF RETAILER OPINION SURVEY
OF MARKETING MIX OF ACER PRODUCT IN HYDERABAD” is a bonafide record of
interim report carried out by MUKESH K KUMAR GUPTA at Institute of Computers and
Business Management, Hyderabad, has successfully completed his summer training project at
ACER INDIA PVT LTD , Hyderabad from 27th April 2011 to 3rd June 2011 . He has worked
sincerely in this duration and has completed the project successfully. For the partial fulfillment
for the award of Post Graduate Diploma in Management (PGDM) to the best of my knowledge,
this is an original piece of work.
I wish him all the very best in his career Endeavour’s.
SIGNATURE SIGNATURE
Academic Director Guide
Prof. Jitender Govindani Asso. Prof. Prem Latha Menon
2
DECLARATION
I, MUKESH KUMAR GUPTA declare that project report titled, “A STUDY OF
RETAILER OPINION SURVEY OF MARKETING MIX OF ACER PRODUCT IN
HYDERABAD” has been completed by me in ACER INDIA PVT LTD. under the
guidance of Mr. Yashpal (Asst. Sales manager) and Ms. Prem Latha Menon (Prof,
Dept. of Marketing) faculty of ICBM.
I hereby declare that the project is completely my work. It has been submitted to
Institute of Computers and Business Management for partial fulfillment of the
educational session and allotment of marks.
Hyderabad
DATE: Mukesh Kumar Gupta
3
CERTIFICATE OF THE GUIDE
This is to certify that the work incorporated in this Project Report entitled “A STUDY OF
RETAILER OPINION SURVEY OF MARKETING MIX OF ACER PRODUCT IN
HYDERABAD Submitted by MUKESH KUMAR GUPTA , is his original work and completed
under my supervision.
Date: 10/09/2011 Guide Signature:
Place : Hyderabad Prof. Prem Latha Menon
4
ABSTRACT
Acer India Private Ltd. was incorporated in India from September 1999, it has its head
office in Banglore and branch offices in many of major cities like Pune, Nagpur, Delhi, Mumbai,
Hyderabad etc. Acer has its manufacturing plant located in Pondicherry. Acer is into
manufacturing and selling of the product like Notebooks, Net books, Projectors, Desktops,
Business PC’s, Consumer PC’s and Monitor LCD. With in short period of time Acer hold an
outstanding position of No.3 in Notebook segment and No.1 in Monitors and Net books that too
with less manpower. Acer is 100% channel committed and it is considered to be fastest growing
PC manufacturer.
With less manpower Acer shows good productivity from the figure that it has year on year
growth of 180%. Acer business works on channel marketing where its channel partners
contribute to increase its sales every time than the previous month. Acer has good interaction
with its channel members and they completely understand how to organize the performance of
the work of channel. Acer has build up the channel model where it uses the concept of both
direct and indirect channel marketing. Acer has got the network which is made up of suppliers,
distributors, and ultimately customers who “partner” with each other to improve the performance
of the entire system. These lead to form a strong value delivery network. The strong distribution
channel helps Acer to achieve competitive advantage over its competitor like Dell and HP by
building a strong long-term relationship with its channel partners. Acer understands the
contribution of the channel members in adding the value to the company.
In order to built up a strong distribution channel it is essential to take effective channel
management decisions which helps the company to select the potential channel members,
managing and motivating the channel members and evaluating channel members. Acer has made
a specific Channel design where it can analyze the consumer needs and set the objectives, it also
go for identifying the major alternative by which more sales can be done and after identifying it
evaluate the major alternatives.
Acer establishes a strong channel relationship by considering the channel member’s need in the
same way that it considers end user’s need. However, the needs of both of them are completely
different from each other. For establishing a good channel relationship, it is necessary to consider
5
the aspect like delivery, profit margins, incentives packaging, training and promotional help. The
distribution channel consist of many parties each seeking for its own objectives. In order to have
systematic and smooth flow it is necessary to maintain the strong relationship with the channel
members by trusting and understanding each other’s need. This help to design a particular
channel arrangement which can be which can be independent or dependent.
Acer has certain channel model which helps to generate the revenue from the partner that results
into regular change in product quality as per the end user need and also the changes in channel
partner performance on end user satisfaction and loyalty.
From the survey done it has been observed that Acer has varieties of product with highly enabled
technology and well design but they are lacking in the product recognition rather than brand
awareness. That means, Acer need to perform huge amount of promotional activity not only for
the consumer but also for channel members. Conducting training session for retailers and
channel members is utmost need for the Acer in today’s market. Because the only reason is they
have got the product with good configuration and better technology and that too with less price
but the end user are moving towards brand like Dell and HP who are providing the same
configured product as huge price. This is because a Acer lacks in promotions.
So for this purpose Acer have to focus on strengthening and measuring the quality of partner
service and they have to support the marketing and account management. Acer is looking
forward to conduct more training session and road show together with the channel members
which will enable the company to reveal the latest product in the market and that could aware
customer about the product along with features and price. It is necessary to conduct a survey
when the company manufacture good product but still it lacks somewhere, Acer Market survey
has make them know to which steps they to put forward in order to have smooth channel flow
and increase in sales.
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ACKNOWLEDGEMENT
I wish to express my deep sense of gratitude and indebtedness to Mr. Yashpal (Asst
Manager Sale), Acer India (Pvt) Ltd, Hyderabad, for giving me an opportunity to work
under him and also for the keen interest, valuable guidance and constant encouragement they
gave me during the project work.
I am grateful to Mrs. Ritu Zarar Chair Person, Prof. S. Zarar, Principal and Jitender
Govindani, Director, Institute of Computer and Business Management, School of
Business Excellence, Hyderabad, for providing necessary facilities during the study.
I also express my sincere thankfulness to my mentor Ms. Prem Latha Menon for her kind
advice, suggestions and constant help in lot of various ways during project course.
7
DECLARATION
I hereby declare that the project report entitled “A STUDY OF RETAILER OPINION SURVEY OF
MARKETING MIX OF ACER PRODUCT IN HYDERABAD” is a work undertaken by me for ‘Acer
India Pvt Ltd, during the academic year 2009-2011 and submitted to the ICBM-School of
Business Excellence in partial fulfillment of Post Graduate Diploma in Management (PGDM)
taking Marketing as my specialization.
I also declare that this project is a result of my own effort and that has not been copied from
any one and has not been submitted to any other University or Institution.
Place :
Date : Mukesh kumar Gupta
8
TABLE OF CONTENT
Sl. No. TOPIC Pg. No.
1 CHAPTER 1 12
a) Objectives of the Study 13
b) Need of the Study 13
c) Research Methodology 13
d) Limitations of the Study 14
2 CHAPTER 2 16
a)Literature of review 16
3 CHAPTER 3 25
a)Industry profile 25
b)Company profile 29
4 CHAPTER 4 41
DATA ANALYSIS AND INTERPRETATION 42
5 CHAPTER 5 56
FINDINGS 56
SUGGESTION 57
CONCLUSION 59
6 BIBILIOGRAPHY 61
7 APPENDIX-QUESTIONNAIRE 62
LIST OF TABLES
9
TABLE NUMBER TABLE TITLE PAGE NUMBER
1
Acer Product availability in retail outlet
42
2
Ranking of ACER based upon sales performance
43
3
Sales of the following ACER Products for the last month
44
4
Ranking the following Acer product on scale of 1-4 based their sales promotion offer
45
5
ACER should focus on more advertisement
46
6
modes of advertisement 47
7
pricing strategy of Acer product 48
8
Acer product occupy the maximum shelf space in your retail outlet
49
9
Acer product prefer to display 50
10
ACER products available on time
51
11
Rate the following ACER Products based on their timely Delivery
52
10
12 Rating the ACER Products based on their color & design
53
13 satisfied with your channel partner
54
CHAPTER 1CHAPTER 1
Objectives of the studyObjectives of the study
Need of the studyNeed of the study
Research methodologyResearch methodology
LimitationsLimitations
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OBJECTIVES OF THE STUDY:OBJECTIVES OF THE STUDY:
Acer India Pvt. Ltd stands in No.2 position in terms of Notebook PC and No. 1 in terms of Net
books and Monitors. In spite of having very less work force, Acer manages to be there in such
outstanding position this is only because of the well-built, tough and strong Distribution
Channel. The main objective of this project is:
1. To study the retailers opinion about ACER product.
2. To know the highly sold ACER product by the retailer.
3. To know about the rating of offers given by ACER
4. To know about the mostly promoted products of ACER.
5. To examine & analyses the 4p’s of ACER.
NEED OF THE STUDY12
1. To know how a company works using different marketing channels to reach to end
users.
2. How Acer uses different channels to market its product.
RESEARCH METHEDOLOGY
The primary sources of data collection used in study are:
a. Questionnaire
b. Interview
We prepared a sample collection of Questionnaires which we distributed to each channel
member we visited. The questionnaire gives us detailed information of how is consumer
behavior pattern about purchasing notebooks, what extra does channel member need from Acer,
where is Acer lacking etc. Due to the short period of time it was not possible to cover each and
every question and to obtain there answer so we tried to ask the uncovered question in some
other shop within the same area. In order to save the time we forwarded the questionnaire to all
channel members’ email Id which provided us the additional benefit of covering some extra
channel member and partners.
As mention earlier, it was time consuming for dealer to answer every question so we decided to
take another technique of data collection. Interview was best method that helps us to gather
information about the project study. From this method we succeed to ask as many of questions
and used to get a chance to observe the channel member behavior with the customers. This helps
us to obtain good response rate and it was possible to ask in-depth questions. Unlike
Questionnaire method, it was a serious approach by the respondent resulting in accurate
information. We tried to cover all the aspect of asking Structured, semi-structured and
unstructured questions. In a meanwhile, we also started conducting telephonic interview and
asking very few questions to dealers regarding the offers, that Acer is providing and making
aware of some new product to the dealers.
13
LIMITATIONS
Acer is completely Channel committed; it has wide range of distributors and channel partners
located in all across AP. So obtaining data from each and every channel member was not
possible in such short period of time. In the Hyderabad, there are more than 500 distributors who
are dealing with notebooks and other related product of different brands including Acer.
We have chosen Questionnaire and Interview as our primary tool for data collection. So covering
each and every question to channel member proved time consuming and loss of customer for
dealers. So, we have emphasized on asking sales of Acer and position of the brand with respect
to its competitor.
While facing the interview there were few dealers we come across with whom we faced
communication problem, in the way that they are more towards regional language. This proves to
be one of limitation in collecting the data.
Reliability of answer was the another issue that we come came across, due to the shortage of
time for the dealer they were giving the quick answer in terms of the brand position, since time
was valuable to them and they were always in hurry to finish the questionnaire and interview.
From the survey done following were major Limitations:
a. Shortage of time
b. Number of Channel Members
c. Communication problem
d. Reliability of data
e. Channel member Behavior
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CHAPTER 2
Literature Review
LITERATURE REVIEWLITERATURE REVIEW
CHANNEL MARKETING
Set of interdependent organizations involved in the process of making a product or service
available for use or consumption by the consumer or business user
The Network of partners in the value chain that cooperate to bring products from producers to
ultimate consumers
a. These include wholesalers, retailers, agents, brokers etc
b. They are called intermediaries, middlemen, dealers, resellers or distributors
c. However, the prevailing view is that channel members are more than just middlemen
15
d. They are comrade-in-arms
e. They are marketer’s first customers and partners; they add value to the marketer’s
offer
Nature and Importance of marketing channels:
a. Channel choices affect other decisions in the marketing mix like pricing, place,
promotion and marketing communication.
b. The strong distribution channel help Acer to achieve competitive advantage over the
competitors by building healthy and long term relation with the channel members.
c. Channel decisions involve long-term commitments to the other firms.
Contribution of channel members in adding the Value:
a. Intermediaries require fewer contacts to move the product to the final purchaser.
b. Intermediaries help match product assortment demand with supply.
c. Intermediaries help bridge major time, place, and possession gaps that separate products
from those who would use them.
Key function performed by the channel members:
i. Information
ii. Promotion
iii. Contact
iv. Matching
v. Negotiation
vi. Physical distribution
vii. Financing
viii. Risk Taking
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i. Information
A distributor knows the real market, they are aware of the customer’s likes and dislikes. They
can push the product by observing the needs and demands of the customers. Each dealer or a
distributor carry lump sum amount of information regarding which brand is doing well in the
market, and which product are selling as a hot cake. They carry information about all the brands
and push the product, which fit, into the customer’s financial need. Now a day’s notebooks have
become a primary need for a corporate consumer as well as students, and accordingly large
brands including Acer is trying to meet the need of target consumer, but the information resides
in the channel members who understand how the customer mind set is and which kind of product
he is looking for.
Companies utilizing resellers for selling their products depend on distributors to provide
information that can help improve the product. High-level intermediaries may offer their
suppliers real-time access to sales data including information showing how products are selling
by such characteristics as geographic location, type of customer, and product location (e.g.,
where located within a store, where found on a website). If high-level information is not
available, marketers can often count on resellers to provide feedback as to how customers are
responding to products. Either this feedback can occur through surveys or interviews with
reseller’s employees or by requesting the reseller allow the marketer to survey customers.
ii. Promotions
There are channel members who exclusively sales those brands with whom they are tied up as
business partner; they use big posters to attract consumer in their stores and displays which helps
to gain point of purchase.
Besides issues related to physical handling of products, distribution decision is affected by the
type of promotional activities needed to sell the product to customers. For products needing
extensive salesperson-to-customer contact (e.g., automobile purchases) the distribution options
are different than for products where customers typically require no sales assistance (i.e., bread
purchases).They encourage sales of the product through their own advertising efforts and using
other promotional means such as special product displays.
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iii. Cost Savings in Specialization
Members of the distribution channel are specialists in what they do and can often perform tasks
better and at lower cost than companies who do not have distribution experience. Marketers
attempting to handle too many aspects of distribution may end up exhausting company resources
as they learn how to distribute, resulting in the company being “a jack of all trades but master of
none.”
iv. Reduce Exchange Time
Not only are channel members able to reduce distribution costs by being experienced at what
they do, they often perform their job more rapidly resulting in faster product delivery. For
instance, consider what would happen if a grocery store received direct shipment from EVERY
manufacturer that sells products in the store. This delivery system would be chaotic as hundreds
of trucks line up each day to make deliveries, many of which would consist of only a few boxes.
On a busy day a truck may sit for hours waiting for space so they can unload their products.
Instead, a better distribution scheme may have the grocery store purchasing its supplies from a
grocery wholesaler that has its own warehouse for handling simultaneous shipments from a large
number of suppliers. The wholesaler will distributes to the store in the quantities the store needs,
on a schedule that works for the store, and often in a single truck, all of which speeds up the time
it takes to get the product on the store’s shelves
v. Financial Support
Resellers often provide programs that customers easily purchase products by offering financial
programs that ease payment requirements. These programs include allowing customers to:
purchase on credit; purchase using a payment plan; delay the start of payments; and allowing
trade-in or exchange options.
vi. Negotiation
From the survey done in market it has-been observed that the customers are price cautious rather
than feature cautious so it becomes necessary for channel member to offer best suitable product,
18
which fit in to their need. For this purpose channel members have to negotiate in order to
purchase the product of our brand other customer will be diverted to other brand resulting into
the loss of single customer. This function will help the company to increase the sales of laptop
and this can be achieved by offering more numbers of offers to channel members.
vii. Physical Distribution
Physical distribution involves storing and moving the products from raw material to the final
consumer. This process takes place in both direct and indirect channels, where channel member
either take the stock from the national distributor or from the sub-distributor and as per the
demand carry forward to the end user, which is termed as back to back. Back to back concept is
used by almost all kind of T2 and T3 level of partners who demands for the stock as per the
requirement order by end user from the National distributor they are registered with or from the
sub-distributor, if in case the stock is not available to any of them then, they directly called to the
Acer office and make available for the final consumer.
Costs of Utilizing Channel Members:
a. Loss of Revenue
Resellers are not likely to offer services to a marketer unless they see financial gain in
doing so. They obtain payment for their services as either direct payment (e.g., marketer
pays for shipping costs) or, in the case of resellers, by charging their customers more than
what they paid the marketer for acquiring the product (termed markup). For the latter,
marketers have a good idea of what the final customer will pay for their product which
means the marketer must charge less when selling the product to resellers. In these
situations, marketers are not reaping the full sale price by using resellers, which they may
be able to do if they sold directly to the customer.
b. Loss of Communication Control
Marketers not only give up revenue when using resellers, they may also give up control of
the message being conveyed to customers. If the reseller engages in communication
19
activities, such as personal selling in order to get customers to purchase the product, the
marketer is no longer controlling what is being said about the product. This can lead to
miscommunication problems with customers, especially if the reseller embellishes the
benefits the product provides to the customer. While marketers can influence what is being
said by training reseller’s salespeople, they lack ultimate control of the message.
c. Loss of Product Importance
Once a product is out of the marketer’s hands, the importance’s of those products are left up
to channel members. If there are pressing issues in the channel, such as transportation
problems, or if a competitor is using promotional incentives in an effort to push their product
through resellers, the marketer’s product may not get the attention the marketer feels it
should receive.
Number of Channel Levels:
The number of intermediary levels indicates the length of a marketing channel. For marketers
the choice of distribution design comes down to selecting between direct or indirect methods, or
in some case choosing both. Thus, there are two types of Distribution channels:
a. Direct Channels
b. Indirect Channels
a. Direct Channels
b. Indirect Channels
DIRECT CHANNELS
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With a direct distribution system, the marketer reaches the intended final user of their
product by distributing the product directly to the customer. That is, there are no other
parties involved in the distribution process that take ownership of the product. The direct
system can be further divided by the method of communication that takes place when a
sale occurs. These methods are:
i. Direct Marketing Systems
With this system the customer places the order either through information gained from non-
personal contact with the marketer, such as by visiting the marketer’s website or ordering
from the marketer’s catalog, or through personal communication with a customer
representative who is not a salesperson, such as through toll-free telephone ordering.
ii. Personal Selling Systems
The key to this direct distribution system is that a person whose main responsibility involves
creating and managing sales (e.g., salesperson) is involved in the distribution process,
generally by persuading the buyer to place an order. While the order itself may not be
handled by the salesperson (e.g., buyer physically places the order online or by phone) the
salesperson plays a role in generating the sales.
iii. Assisted Marketing Systems
21
Under the assisted marketing system, the marketer relies on others to help communicate the
marketer’s products but handles distribution directly to the customer. The classic example
of assisted marketing systems is eBay which helps bring buyers and sellers together for a
fee. Other agents and brokers would also fall into this category.
INDIRECT CHANNELS
With an indirect distribution system, the marketer reaches the intended final user with the help of
others. These resellers generally take ownership of the product, though in some cases they may
sell products on a consignment basis (i.e., only pay the
Supplying company if the product is sold. Under this system, intermediaries may be expected to
assume many responsibilities to help sell the product.
22
Indirect methods include
1. Single-Party Selling System
Under this system the marketer engages another party who then sells and distributes directly to
the final customer. This is most likely to occur when the product is sold through large store-
based retail chains or through online retailers, in which case it is often referred to as a trade
selling system.
2. Multiple-Party Selling System
This indirect distribution system has the product passing through two or more distributors
before reaching the final customer. The most likely scenario is when a wholesaler purchases
from the manufacturer and sells the product to retailers.
CHAPTER 3
23
Industry Profile
Company Profile
INDUSTRY PROFILE
A personal computer (PC) is any general-purpose computer whose size, capabilities, and
original sales price make it useful for individuals, and which is intended to be operated directly
by an end user, with no intervening computer operator.
As of 2009, a personal computer may be a desktop computer, a laptop computer or a tablet
computer. The most common operating systems for personal computers are Microsoft Windows,
Mac OS and Linux, while the most common microprocessors are x86-compatible CPUs, ARM
architecture CPUs and PowerPC CPUs. Software applications for personal computers include
word processing, spreadsheets, databases, Web browsers and e-mail clients, games, and myriad
personal productivity and special-purpose software. Modern personal computers often have high-
speed or dial-up connections to the Internet, allowing access to the World Wide Web and a wide
range of other resources.
A PC may be a home computer, or may be found in an office, often connected to a local area
network (LAN). This is in contrast to the batch processing or time-sharing models which allowed
large expensive systems to be used by many people, usually at the same time, or large data
processing systems which required a full-time staff to operate efficiently.
While early PC owners usually had to write their own programs to do anything useful with the
machines, today's users have access to a wide range of commercial and non-commercial software
which is provided in ready-to-run form. Since the 1980s, Microsoft and Intel have been
dominating much of the personal computer market with the Wintel platform.
The laptop market has registered 79% Year-on-Year growth during 2009. The laptop sales are
growing at much faster rate than projected. India's personal computer market is undergoing a
major transition. However, laptop computers cannot completely wipe out desktop computers,
because both are design to meet different needs or different consumer segments.