STUDY OF THE CONSUMER BUYING BEHAVIOR &SALES PROMOTION OF
KHAITANHOME APPLIANCES.
A report submitted towards the partial fulfillment of the
requirement of the two years full time Post Graduate Diploma in
Management.
SUBMITTED BY: VivekRanjanPost Graduate Diploma in ManagementRoll
No. :2k11B36(Session: 2011-13)
ASIA-PACIFIC INSTITUTE OF MANAGEMENT3& 4, Institutional
Area, Jasola, New Delhi 110025.PREFACEWith the need of an hour and
the changing environment, Management Institutes these days have
started giving more stress on the management training program as it
is the first interface of a management student with the culture and
environment of the Corporate World. It gives them the first hand
information and experience to share and use their knowledge and
bring out some meaningful results out of it. This is the
opportunity where students learn to experiment theory in practice
in the real World of Corporate Business. Our Institute has also
been looking in the same direction to produce students with
excellence and with great determination that can possess knowledge
of theory along with practice. So for this we have undergone a
Summer Training Program of 6 weeks in Khaitan Electrical Ltd for a
project on Consumer Behavior and Analysis for Enhancement of
Business Strategy with Emphasis on KhaitanAppliances (B2C). For our
project we are thankful to our Institute for providing us valuable
encouragement and guidance which has facilitated us in making and
completing our report.
AcknowledgmentI have taken efforts in this project. However, it
would not have been possible without the kind support and help of
many individuals. I would like to extend my sincere thanks to all
of them.First of all I would like to thank Mr. Vikas Gupta,
RegionalManager Eastern region Khaitan Electricals Ltd., for
providing me an opportunity to undertake the project of summer
internship as a summer trainee atKhaitanElectricals Ltd.I am highly
indebted to MrPuneetSaxena for their guidance and constant
supervision as well as for providing necessary information
regarding the products& also for their support in completing
the project.I would like to express my gratitude towards MrVipin,
our territory in charge for their kind co-operation and
encouragement which help me in completion of this project.It has
also been my proud privilege and good fortune to work on this study
under the table guidance of Prof. Ratnesh Kumar, Faculty of Asia
Pacific Institute of Management. His thoughtful comments and
conceptual insights into the subject kept me from floundering in my
quest. Despite his busy schedule he spared valuable moments for
reviewing and rectifying this work. His uncompromising demand for
logical conclusions, quality of presentation, and originality of
work and novelty of ideas has benefited every single page of this
study. I shall always remain grateful to him and no words of
thanks can compensate for the liberty that I had been given to
encroach upon whatever little spare time he had at his disposal.I
also extend my thanks to various department heads, friends &
family for the co-operation and help extended to me during the
preparation of the project.
CERTIFICATE FROM THE FACULTY GUIDE
This is to certify that the project work entitled Study of the
Consumer buying behavior and sales promotion of KhaitanHome
Appliancesis a piece of bonafide work done by VivekRanjan, student
of Asia Pacific Institute of Management, under my guidance and
supervision for the partial fulfillmentof the course PGDM.To the
best of my knowledge and belief, the thesis embodies the work of
the candidate himself and has been duly completed. Simultaneously,
the thesis fulfils the requirements of the rules and regulations
related to the summer internship of the institute and I am assured
that the project is up to the standard both in respect to the
contents and language for being referred to the examiner.
Prof. Ratnesh Kumar
DECLARATIONI hereby declare that the project report entitled
Study of the Consumer buying behavior and sales promotion of
Khaitan Home Appliances is the fruit of my sincere effort. Isubmit
this summer internship project to Asia Pacific Institute of
Management, New Delhi, for the partial fulfilment of the course
PGDM, and the report is not submitted to any other educational
institutions or for any other purpose whatsoever.
VivekRanjan.
EXECUTIVE SUMMARYi. During the last financial year the home
appliances division has reported revenue growth toRs84crore
contributing 17.3% of the total revenue of 486 Crore and the
Appliance segment for the quarter stood at Rs18.9croreof the total
revenue of 135 Crore. So as the company is growing its Home
appliances division is also growing.The company has a strong
position in the market because of it strong marketing and
distribution network.ii. Almost 93% of the people are using at
least one home appliance in the major cities. So the potential of
Home appliances is high and in Delhi Home appliances market
potential are about 200 crores.iii. Khaitan has a highest market
share for KhaitanFans.It has reasonably good market share in Mixer
grinder, Air cooler category, Pumps,Lights and wires category. iv.
According to our respondents Khaitan brand is accepted to both Male
and Female category almost equally.v. Almost th of the Khaitan
product users say they use Khaitan home appliances in between one
month to five years.vi. Customers visiting Shopping Complexes like
Big Bazar are more concern about Durability, Price,Features of a
product and they are less concern about the Brand and the Quality.
The most probable reason may be because Modern Retailer isicon of
Less Price Product, and few times they sell product of their own
brand. This can be easily predicted by the tag line of Big Bazar-
Issesastaaurachhakahinahinvii. But in case of Shopping Complex like
Pantaloons respondents are more concern about brand and usually
they prefer prime products.viii. Customers who purchase Khaitan
Home Appliances are more concern aboutPrice and Value for money
composition. They also look for more Features and Warranty/
guarantee.ix. According to the respondents half of them are ready
to pay more for more features. So Khaitan can launch new prime
products either under the same brand or with a new brand name. They
can also upgrade some of the existing products.x. It has been
pointed out that Usha is the biggest competitor of Khaitan, and the
other major competitors are Philips, Kenstar, Maharaja,
KenwoodKoryo etc. The main reason behind this may be as Usha is
also providing almost same kind of product in same or less prices.
Philips provides premium products and Maharaja low price products.
Now few domestic and international players are using China made
components for reduction of manufacturing cost which increase the
market competition. xi. The purpose of visiting shopping complexes
varies with age, Indian youth are visiting mall mainly as a hang
out places. But the older people and mid age group visit mall
mainly to purchase. Frequency of visiting a mall is also depend on
age youth are more frequent in visiting whereas mid age people
visit mall 1 to 3 times a week.xii. Khaitan is not a premium class
home appliances manufacturer rather Khaitan product is known for
Low price, performance, guarantee & warranty. So Khaitan should
focus more on price leadership in order to get an edge over its
competitors.xiii. Other than that respondents consider Durability,
easy maintenance as preferred factors while purchasing General Home
Appliance but in case of Khaitan electrical they consider Brand
image, Warranty & Guarantee, Features & Quality as
significant factors. So in order to maintain the current market
share and to increase it Khaitan should strategically used the
above mentioned factors. xiv. It has been pointed out that
respondents who are willing to repurchase Khaitan will
recommendKhaitan to friends, relatives and known one. In Shop
promotion and suggestion From Relatives and Friends are affecting
the purchase but for factors like Brand ambassador and
advertisement the response is almost neutral. So investments in in
shop promotion may increase the sale of product.xv. During holidays
and week end consumers prefer to visit shopping complexes. So in
shop promotion during this period may increase the sale. And it has
been pointed out that word of mouth and in shop promotion has an
impact on purchase.xvi. Promotional offer like free gift, price
offer and tour & packages influence purchase and its preference
varies with occupation of the respondents. According to them
students generally prefer
Overall, Khaitan Appliances has the potential to be the market
leader of the extremely competitive small appliance market in Delhi
provided it pays attention to these problems and implement the
recommendations suggested.
Table of ContentSection 1:-1.1 Introduction to Topic:-1.2
Objective:-1.3 Scope Of Study:-SECTION 2:- 2.1 Introduction of
company:- 2.2 About the company:- 2.3 Products:- 2.4 Development of
company:- 2.5 SWOT analysis:- 2.6 Comparative analysis with the
competetors:-SECTION 3:-Review of Literature:-
SECTION 4:- 4.1 Market Strategy:- 4.2 Marketing MIX:- 4.3 Step
of Report generation:- 4.4 Limitations of Study:- 4.5 Observation,
Analysis &Discussion:- 4.6 Key Findings:- 4.7 Conclusion:- 4.8
Recommendation:-SECTION 5:-Bibliography
SECTION 6:-ANNEXURE
SECTION 11.1 INTRODUCTION TO THE TOPICThe title of my project is
Study of the consumer buying behavior and sales promotion of
KhaitanHome Appliances. The company wants that there should be a
market survey to know the buying pattern of the customers and to
know the requirement for any of the Khaitan appliances in the
market in the same product range of its competitors. So for this
knowing the demand pattern is very essential as to when and how the
demand for the products arises and on what factors does the
customers buy the products. My area of survey was North Delhi. I
visited a showroom from wherein I have gathered a concrete data and
have drawn analysis on the data collected which will be helpful to
the Company in studying and analyzing and drawing various
conclusions which will help in boosting the sales and growth of the
Company. The data has been collected from shops and have been
gathered through many persons with full name and contact details
with the requisite information on the usage of appliances in the
market and future requirement of the same along with the details of
its competitors products being used therein.
1.2 OBJECTIVEMAIN OBJECTIVE:- To know the views and perception
of business professionals regarding Khaitan as a Brand and its
products feedback.
To analyze what market trends and Customer behavior is regarding
its demand and buying pattern.
To know what, why, where, when and how the Company procures the
products.
To forecast sales this is dependent on the consumer response and
their feedback.
To know the customers response to the products.
To increase sales and growth in future.
To segment, target and position itself (company) according to
the current environment and need of the market.
SPECIFIC OBJECTIVE:-For achieving my Objective of the report I
have been visiting shops in Delhi and took personal interview of
individuals from shop owner, customers and the persons who work
there. I was set to conduct a market research in the shop and
customers (B2C) on the study and understanding of what, when,
where, why and how the consumers purchase the products especially
with regards to Khaitan appliances and its competitors products. I
myself prepared a certain set of questions to be asked from the
consumers and shop owners and to know any future requirement of any
of the Khaitan appliances in future. Questions asked were relating
to:1. What kinds of products do you purchase?2. What kinds of
Brands you opt for?3. For what purpose you purchase it?4. On what
factors do you purchase the products?5. When the requirement does
arise?So for all the above questions the data has been collected
and the contact details have been taken of the concerned person and
the shop owners which would help the company in analyzing the
demand pattern and to maintain further contact with the
Customers.
1.3 Scope of the Study:-1. This study can be carried further by
any other Home Appliances company to know the Brand Presence and
market potential in both Organized and Unorganized Retail sector.
2. KhaitanElectricals can extend further this study in the other
parts of India. 3. Khaitan will come to know about what are the
factors like colour, design, guarantee warranty, after sale service
that will affect the final purchase and can get a competitive
advantage and will have a consumer insight.4. Khaitan can make
strategy about pricing, sales and promotional offer, in house
promotion.5. By knowing the market share Khaitan can analyse the
product mix i.e. which product is to be promoted and which product
is to be discontinued.6. Through this study Khaitanwill get a
insight about what are the potential area where they can launch new
product/s.7. Through this project Khaitan will also know about the
loop hole in communication and operational activities. And thus
make product readily available in shop floor and have a good
relationship with organized retailers and PROMOTOR ( In Shop
Demonstrators )
SECTION 2INTRODUCTION2.1 Profile of the company:-For decades,
the Khaitan name has been synonymous with quality fans in India.
With 19 offices located across the country, Khaitan has established
itself as the undisputed leader in air-management technology. The
Khaitan name is renowned for innovations as well which is reflected
in the design of pioneering product concepts such as Fresh air
fans, and models in the mini category. Now Khaitan is diversifying
even further. Pumps, lights,home appliances, cables, wires and
circuit breakers have been added to Khaitan's portfolio. Good
quality, great performance and novelty in design are some of the
assured features of any product from Khaitan. As a young
entrepreneur in the early 60s, S.K. Khaitan (chairman) was
possessed by a burning desire to push the limits and create new
goals for himself. Men like Henry Ford, Thomas Bata, Soichario
Honda and J N Tata who had guts to build great brands with their
own name, deeply moved him and then he was all set to create
Khaitan his family name into a household word as well. Today
Khaitan is already a household name and a leading brand through out
the country, but the vision continues to grow. In 1971, Mr. S.K.
Khaitan founded Khaitan electrical ltd in kolkata. These products
are manufactured at factories located in Kolkata (West Bengal),
NarsapurTaluk (Andhra Pradesh), Faridabad (Haryana) and Ponta Sahib
(Himachal Pradesh). The Faridabad factory is the Company`s R&D
hub while the other three factories produce over 100,000 units of
fans a month with an installed capacity to produce over 200,000
units a month. The company is also engaged in exporting its various
range of fans to countries like Africa, the Middle East and Asia
including Sri Lanka, Bangladesh, Singapore, Myanmar and Nepal.
Khaitan`s main mode of business is through its channel partners
such as dealers and distributors. The company has a network of more
than 3,500 dealers and distributors across the country.
History of Khaitan ElectricalsYEAR EVENTS 1975 - The Company was
Incorporated on 27th October, as a private limited company and then
converted into public limited company on 14th August, 1982. The
Company was promoted by Shri S.K. Khaitan, the chairman of the
Khaitan group of companies.- The Company's object is to manufacture
electric fans, industrial and ventilating fans, electrical
household appliances electric motors, cables, electric lamps,
electrical meters etc.- The Company entered into an agreement with
Khaitan Fans Pvt. Ltd. for obtaining "technical know-how" for the
manufacture of electric fans and regulators and for using their
trade mark "Khaitan". Since then the Company is engaged in the
manufacture of various types of elctric fans and regulators.- The
Company started its first plant at Faridabad to manufacture a wide
range of ceiling, exhaust, portable, industrial and ventilating
fans, FHP motor and power driven pumps. To cater to the growing
demand in Western India and overseas markets, a second plant was
started at Tarapur near Mumbai in January 1983 to manufacutre
ceiling and portable fans. The first plant was set up at the
Company's own land at Faridabad while an industrial plant was
acquired on lease at Tarapur for the setting up of the second
project. A third plant was set up at Noida in 1985.1981 - 3,70,000
No. of equity and 3,000 pref. shares taken up by promoters, etc. In
November, 1983, 8,80,000 No. of equity shares issued of which
1,30,000 shares were allotted to promoters, etc. The balance
7,50,000 shares offered to the public.
1983 - The Company undertook to set up a new unit at Faridabad
to manufacture a wider range of F.H.P motors and electrical
household appliances. The necessary technical know-how and R&D
facilities were available with the Company and the prototypes were
under development. Negotiations were at an advanced stage for
procuring plant and machinery needed for the project. The plant
went on stream during 1984.- The object of the public issue of
capital during March, was to augment the Company's working capital
and to provide funds for normal capital expenditure other than for
substantial expansion and diversification.- The Company undertook
an expansion and diversification programme. A second plant was put
up at Bachepalli in the Medak district of Andhra Pradesh to
manufacture a wide range of portable and other fans and household
electrical appliances.- 1,77,500 shares issued at par of which
27,500 shares reserved and allotted to promoters, directors, etc.
The balance 1,50,000 shares offered to the public in March.1984 -
Pref. dividend raised to 15% from 1.1.1985. 12,50,000 rights equity
shares offered at par (linked to 15% debentures) in the ratio 1:1
in Oct. 1985. Additional 3,12,500 No.of equity shares allotted to
retain oversubscription. 62,500 No. of equity shares also offered
at par to employees (only 2,200 shares taken up).- In Sept.,
12,60,000 shares issued (prem. Rs 1 per share) of which 5,04,000
shares reserved and allotted to promoters, directors, etc. The
balance 7,56,000 shares offered to the public.1985 - A new factory
was set up at NOIDA, Expansion of the Tarapur factory was
undertaken.- M/s. KhaitanLefin Ltd., is a subsidiary of the
Company. It ceased to be a subsidiary to the Company during
1994-95.
- In October, in order to part finance the expansion programme
and to augment long-term resources, the Company made a rights issue
of 12,50,000 No. of equity shares of Rs.10 each, both at par, in
the ratio 1 equity share for every equity share held and 1
debenture for every 10 equity shares held. Each debenture offered
was linked to 10 equity shares.- In Feb./Mar., 15,00,000 right
shares offered (prem. Re. 1 per share; prop. 1:1). 3,75,000
additional shares allotted to retain oversubscription. 75,000
shares were also offered (prem. Re. 1 per share) to the employees
of the Company. Only 15,700 shares taken up. The remaining 59,300
shares allowed to lapse.1987 - The oscillating type air circulators
was launched during the period and washing machines were under
final stage of development.- Jhunjhunu Holdings Limited became a
wholly owned subsidiary of the Company during the year.1991 - The
Window type air cooler was launched during the year and the company
had decided to manufacture both floor and window type coolers in a
big way.- Lock-out at the Faridabad plant for 71 days and reduced
activities at Noida and Tarapur plants led to the poor
performance.1992 - For better utilisation of resources, the
operations of Noida works were closed and its machinery shifted and
commissioned at Faridabad factory.1993 - The company proposed to
diversify into sugar/agro based industry.- 16,95,350 rights shares
issued (prem. Rs 20 per share; prop. 1:2) only 9,82,956 share taken
up. Another 6,76,344 shares devolved on the underwriters. The
balance 36,050 shares remained unsubscribed.
- 2,000 preference shares are redeemable during 31st March,
1993/96, 500 preference shares are redeemable during 29th March
1995/98 and 500 preference shares are redeemable during 23rd May
1995/98.1994 - With effect from 1st April, Khaitan Fans (I) Ltd.
amalgamated with the Company.- 1000 pref. shares redeemed.
30,00,000 shares issued as fully paid up to the shareholders of
Khaitan Fan India Ltd. (KFIL) without payment being received in
cash and 14,700 No. of equity shares of Rs.10 each of the company
held by KFIL were cancelled.1995 - 96,500 preference shares are
redeemable during 29th March.1996 - 1,56,470 secured
non-convertible debentures of Rs.100 each were issued to be
redeemable at par in three equal annual instalments commencing from
21st April. As per the scheme of arrangement Rs 2.45 lakhs of NCD
were received and redeemed during the year, making to date
redemption of Rs 56.82 lakhs.2001 - The Company equity shareholders
is proposed to be held on March 10 to consider the scheme of
arrangement of amalgamation between Jhunjhunu Electricals &
Finance Ltd and Khaitan Electricals Ltd.2005-Dlist from The
Hyderabad stock Exchange Ltd(HSE) with effect from January 19,
2005.2009- Khaitan Electricals Limited has informed that a meeting
of the Board of Directors has been held on January 30, 2009 and
discuss the following agenda : 1) Resignation of Sri O. Swaminatha
Reddy as a Independent Director. 2) Resignation of Sri P. R.
Agarwala as a Independent Director. 3) Appointment of Mr. A. K.
Bhattacharya as Additional Director (Independent Director).2010-
Khaitan Electricals Ltd has appointed Sri BiswajitChoudhary as
Additional Director (Independent Director) from December 31, 2009
to the date of ensuing Annual General Meeting of the Company.2.2
ABOUT THE COMPANYKhaitan (India) Limited engages in the manufacture
and sale of electric home appliances primarily underthe Khaitan
name in India. It offers various domestic products, which include
fans, such as ceiling, table,pedestal, wall and cabin, fresh air,
portable, and multipurpose fans; kitchen appliances, including
mixergrinders, juicers, snacker, hand blenders and mixers,
toasters, electric kettles, electric irons, and immersionheaters;
lights comprising tube lights, compact fluorescent lamps, GLS
bulbs, and decorative bulbs; pumpsconsisting of monoblock,
centrifugal, jet, submersible, and mini submersible pumps; cooler
kit and FHPpumps; circuit breakers; domestic wires and cables; and
air coolers. The company also provides industrialproducts,
including HD exhausts, air circulatos, axial flows, and mancoolers.
In addition, it producessugarcane, sugar, and molasses. Khaitan
(India) Limited sells its products through a network of
distributorsand dealers. The company also exports its products to
Africa, the Middle East, and other Asian countries,including Sri
Lanka, Bangladesh, Singapore, Myanmar, and Nepal. Khaitan (India)
Limited is based inKolkata, India.
Corporate Vision:A never-ending vision
As a young entrepreneur in the early 60's, I was possessed by a
burning desire to push the limits and create new goals for myself.
Men like Henry Ford, Thomas Bata, Soichairo Honda and J N Tata who
had the guts to build great brands with their own names, deeply
moved me. And I was all set to turn "Khaitan" my family name into a
household word as well.
In my mind's eye I saw Khaitan fans in homes, offices, shops,
factories and godowns. Today, Khaitan is already a household name
and a leading brand throughout the country. But my vision continues
to grow. Because everyday there is a new horizon to conquer, a new
goal to reach.
S K KhaitanChairman, Khaitan Group of Companies
A trail-blazing mission
Today Khaitan takes its place as one of the largest fan
manufacturers in India. The winning reputation of the Khaitan name
is built on the trust of millions of customers and the spirit of
innovation kindled by my father, our Founder and Chairman. It is my
mission to take the brand from strength to strength by tapping new
markets, creating new models and continuously upgrading quality.
After all, my name too is at stake.
Sunil K KhaitanVice-Chairman, Khaitan Group of Companies
Values:
Build Trust:We will conduct all our business dealings with fair
and ethical business practices and strive to build trust in the
minds of all our stakeholders.
Belief in Excellence:We believe in setting higher levels of
Excellence in all our actions and will recognize and reward the
excellence achieved by our team members.
Delighting Customers:We will delight our customers by providing
them world-class products and services and thereby enhance their
quality of life.
Ensuring Accountability:We will work in a transparent,
performance oriented environment and define clear accountability
for our employees, while empowering them to achieve their
performance goals with speed and efficiency.
Encouraging Teamwork:We will ensure dignity and respect for the
individual while encouraging Teamwork.
Personal Growth:Every employee will be enabled to learn at the
work place with significant opportunities for Personal Growth and
Contribution to the organization.Our products are testaments to our
belief in excellence and are duly subject to the most stringent
quality standards in the world. The Replacement Bond ensures that
the customer always comes first. It is a bond signed by the
Chairman of the Company, promising to replace any Khaitan fan with
a manufacturing defect, discovered within one year of its
purchase,with a new one. Till today, the ideagoes unmatched by any
competitor. This confidence in our fans is a result of dedicated
service, commitment to quality and careful attention to detail.
2.1 PRODUCTSKhaitan Electricals product lines include the
following DOMESTIC PRODUCTS: Home Appliances - Mixer and
Grinder,Snacker or Toaster, Juicer, Electric Kettle, Hand Blender
,Hand Mixer, Electric Iron and Imersion Rod. Fans - Ceiling fans,
Table fans, Pedestal fans, Wall fans and Fresh air fans. Lights
CFL,Tubelights, GLS lamps and Decorative Bulbs. Pumps- Monoblock,
Jet Pumps, Submersible, Centrifugal, Mini-Submersible. Cooler Kit
and FHP motors Circuit Breakers Wires and Cables Air
CoolersINDUSTRIAL PRODUCTS: HD EXHAUST AIR CIRCULATOR AXIAL FLOW
MANCOOLER
The trust placed by the millions of consumers have fuelled the
company into introducing the premium range of home appliances
designed as a fitting accessory to new age Indias global
aspirations.The companys competitors in this segment include
Philips, MorphyRichards, and Inalsa.FANSCeiling,Table,Pedestal,Wall
and cabin
Home Appliances1. Kitchen Appliances
Juicer MixerGrinder
Chirga
Mixer Grinder
Chirga
Mixer Grinder(Model No. KMG-802)Chirga
Mixer Grinder(Model No. KMG-803s)Juicer
Juice Extractor(Model No. KJE-601)Snacker
Electric Toaster(Model No. KTK-101)Snacker
Sandwich Toaster (Model No. KST-201)Autocrisp
Pop-Up Toaster(Model No. KPT-101)Ketli
Electric Kettle(Model No. KTK-101)Hand Blender
(Model No. KHB-401)Hand Mixer
(Model No. KHM-501)2. Electric Heater
Nafiza
Automatic Dry IronNatasha
Automatic Dry IronManisha
Automatic Dry IronTarasa
Automatic Dry Iron3.Immersion Rod
ModelDescription
Unbreakable Connection Cover Elegant Look 1 Year Guarantee
LightsCFLRETROFIT
NON - RETROFIT
Tubelights Bulbs
Decorative Bulbs
Cooler kit and FHP motor
Circuit Breakers
Wires and cables
Telephone cables
Coaxail Cables
PumpsMonoblock
Centrifugal
Submersible
Aircoolers
INDUSTRIAL PRODUCTS
HD EXHAUST
AIR CIRCULATOR
AXIAL FLOW
MANCOOLERS
2.4 Development of Company
YEAR EVENTS 1975 - The Company was Incorporated on 27th October,
as a private limited company and then converted into public limited
company on 14th August, 1982. The Company was promoted by Shri S.K.
Khaitan, the chairman of the Khaitan group of companies.- The
Company's object is to manufacture electric fans, industrial and
ventilating fans, electrical household appliances electric motors,
cables, electric lamps, electrical meters etc.- The Company entered
into an agreement with Khaitan Fans Pvt. Ltd. for obtaining
"technical know-how" for the manufacture of electric fans and
regulators and for using their trade mark "Khaitan". Since then the
Company is engaged in the manufacture of various types of elctric
fans and regulators.- The Company started its first plant at
Faridabad to manufacture a wide range of ceiling, exhaust,
portable, industrial and ventilating fans, FHP motor and power
driven pumps. To cater to the growing demand in Western India and
overseas markets, a second plant was started at Tarapur near Mumbai
in January 1983 to manufacutre ceiling and portable fans. The first
plant was set up at the Company's own land at Faridabad while an
industrial plant was acquired on lease at Tarapur for the setting
up of the second project. A third plant was set up at Noida in
1985.1981 - 3,70,000 No. of equity and 3,000 pref. shares taken up
by promoters, etc. In November, 1983, 8,80,000 No. of equity shares
issued of which 1,30,000 shares were allotted to promoters, etc.
The balance 7,50,000 shares offered to the public.
1983 - The Company undertook to set up a new unit at Faridabad
to manufacture a wider range of F.H.P motors and electrical
household appliances. The necessary technical know-how and R&D
facilities were available with the Company and the prototypes were
under development. Negotiations were at an advanced stage for
procuring plant and machinery needed for the project. The plant
went on stream during 1984.- The object of the public issue of
capital during March, was to augment the Company's working capital
and to provide funds for normal capital expenditure other than for
substantial expansion and diversification.- The Company undertook
an expansion and diversification programme. A second plant was put
up at Bachepalli in the Medak district of Andhra Pradesh to
manufacture a wide range of portable and other fans and household
electrical appliances.- 1,77,500 shares issued at par of which
27,500 shares reserved and allotted to promoters, directors, etc.
The balance 1,50,000 shares offered to the public in March.1984 -
Pref. dividend raised to 15% from 1.1.1985. 12,50,000 rights equity
shares offered at par (linked to 15% debentures) in the ratio 1:1
in Oct. 1985. Additional 3,12,500 No.of equity shares allotted to
retain oversubscription. 62,500 No. of equity shares also offered
at par to employees (only 2,200 shares taken up).- In Sept.,
12,60,000 shares issued (prem. Rs 1 per share) of which 5,04,000
shares reserved and allotted to promoters, directors, etc. The
balance 7,56,000 shares offered to the public.1985 - A new factory
was set up at NOIDA, Expansion of the Tarapur factory was
undertaken.- M/s. KhaitanLefin Ltd., is a subsidiary of the
Company. It ceased to be a subsidiary to the Company during
1994-95.
- In October, in order to part finance the expansion programme
and to augment long-term resources, the Company made a rights issue
of 12,50,000 No. of equity shares of Rs.10 each, both at par, in
the ratio 1 equity share for every equity share held and 1
debenture for every 10 equity shares held. Each debenture offered
was linked to 10 equity shares.- In Feb./Mar., 15,00,000 right
shares offered (prem. Re. 1 per share; prop. 1:1). 3,75,000
additional shares allotted to retain oversubscription. 75,000
shares were also offered (prem. Re. 1 per share) to the employees
of the Company. Only 15,700 shares taken up. The remaining 59,300
shares allowed to lapse.1987 - The oscillating type air circulators
was launched during the period and washing machines were under
final stage of development.- Jhunjhunu Holdings Limited became a
wholly owned subsidiary of the Company during the year.1991 - The
Window type air cooler was launched during the year and the company
had decided to manufacture both floor and window type coolers in a
big way.- Lock-out at the Faridabad plant for 71 days and reduced
activities at Noida and Tarapur plants led to the poor
performance.1992 - For better utilisation of resources, the
operations of Noida works were closed and its machinery shifted and
commissioned at Faridabad factory.1993 - The company proposed to
diversify into sugar/agro based industry.- 16,95,350 rights shares
issued (prem. Rs 20 per share; prop. 1:2) only 9,82,956 share taken
up. Another 6,76,344 shares devolved on the underwriters. The
balance 36,050 shares remained unsubscribed.
- 2,000 preference shares are redeemable during 31st March,
1993/96, 500 preference shares are redeemable during 29th March
1995/98 and 500 preference shares are redeemable during 23rd May
1995/98.1994 - With effect from 1st April, Khaitan Fans (I) Ltd.
amalgamated with the Company.- 1000 pref. shares redeemed.
30,00,000 shares issued as fully paid up to the shareholders of
Khaitan Fan India Ltd. (KFIL) without payment being received in
cash and 14,700 No. of equity shares of Rs.10 each of the company
held by KFIL were cancelled.1995 - 96,500 preference shares are
redeemable during 29th March.1996 - 1,56,470 secured
non-convertible debentures of Rs.100 each were issued to be
redeemable at par in three equal annual instalments commencing from
21st April. As per the scheme of arrangement Rs 2.45 lakhs of NCD
were received and redeemed during the year, making to date
redemption of Rs 56.82 lakhs.2001 - The Company equity shareholders
is proposed to be held on March 10 to consider the scheme of
arrangement of amalgamation between Jhunjhunu Electricals &
Finance Ltd and Khaitan Electricals Ltd.2005-Dlist from The
Hyderabad stock Exchange Ltd(HSE) with effect from January 19,
2005.2009- Khaitan Electricals Limited has informed that a meeting
of the Board of Directors has been held on January 30, 2009 and
discuss the following agenda : 1) Resignation of Sri O. Swaminatha
Reddy as a Independent Director. 2) Resignation of Sri P. R.
Agarwala as a Independent Director. 3) Appointment of Mr. A. K.
Bhattacharya as Additional Director (Independent Director).2010-
Khaitan Electricals Ltd has appointed Sri BiswajitChoudhary as
Additional Director (Independent Director) from December 31, 2009
to the date of ensuing Annual General Meeting of the Company.
Laurels for quality
The untiring quest for superlative quality and innovative design
has brought some laurels both at home and abroad. They represent
our commitment to quality and service.
ISO 9001 for the Kolkata and Hyderabad factories (including
design) Awards from Export Promotion Council, Govt. of India CE
Marking for our ceiling fan The CSA certification marking, with the
adjacent Indicator: NRTL/C Canada
A landmark achievement
Khaitan carved a niche for itself in the fan industry by
creating a new market for exhaust fans with its unique
KhaitanFreshair fans. It resegmented the category by positioning
KhaitanFreshair fans as the modern-day answer to kitchen
ventilation and bathroom hygiene. With bathrooms and kitchens
becoming more and more compact, KhaitanFreshair fans have become an
essential accessory for living well. What's more, backed by modern,
streamlined looks KhaitanFreshair fans also add style to bathrooms
and kitchens.
2.5 SWOT ANALYSIS
STRENGTH1. Good brand image Nationwide.2. Good quality of
products.3. Low price.4. Wide range of products.5. Consumer
trustKhaitan a lot therefore is able to develop a long term
relationship with its customers.WEAKNESS1. Weak distribution
channel.2. Low brand awareness of some products in Market.3. Stock
out problem is always prevalent.4. High price of the products5.
Consumers are not fully satisfied with its after sales service.6.
There is ineffective personal or impersonal communication with the
customers or middleman in the channels of distribution.7. Sales
promotion technique and various trade promotion techniques like
gift offers, discounts, dealer contest, and push money are not
taken care.
OPPURTUNITIES1. Huge market to tap.2. Collaboration with
advertising agencies.3. People these days are ready to spend more
appliances.4. Adopting new technology and becoming innovative.
THREATS1. Established competitors.2. Price war.2.6 COMPARITIVE
ANALYSISBefore doing comparison I have taken few products of few
brands from each category of Home Appliances and these products are
having similar or almost similar attributes. The name and the
specific attributes of these products are discussed below.Product
Features:-Category Name: - IRONKhaitanPhilips Morphy
Richards(Dolphin)Inalsa pro max
SoleplatesNon stick coatedGold American heritage coatedCoated
soleplateNon stick coated
Auto cut Off
Self Cleaning
Double active calc system
Dual Voltage
Wattage 1300W1200W1300W 1400W
Category Name: - MIXER GRINDERKhaitanPhilips 1632Inalsa (star
Dx)MorphyRichards(DIVO)
Chutney Grinding
Number of Blades4444
Chutney Blade
Number of Jars2333
Chutney Jar
Material of JarsPolycarbonateAnd Stainless SteelPlastic
&StainlesssteelShock proofplasticBodyPolycarbonateJar
Juicer AccessoriesPulp Containerand Food PusherPulp
ContainerDetachable pulpCollectorPulp Container
Stirrer Cum Scraper
Cord Winding
Material of LidPolycarbonatePlasticPlasticPlastic
Motor TypeUniversalHeavy DutyUniversalPlastic
Type of SwitchPiano TypeSwitchRotary SwitchPiano
TypeSwitchRotary Switch
Power Consumption (Watts)550500500500
Category name: - AIR COOLER
KhaitanUsha DolphinKenstarturbocool
Voltage230V230V250V
Wattage240W240W240W
RPM135014001350
Water Tank Capacity 40 Litres3235
Rust proof all plastic body
Auto water level controller
Air Throw Distance 30 ft.32 ft.30 ft.
Air Delivery 3000 M3/hr3250 M3/hr2850 M3/hr
Cooling Area 600 sq. ft.600 sq. ft.600 sq. ft.
Ice chamber
SECTION 3REVIEW OF LITARATUREThe organized retail industry in
India is just 3% and it is growing at a faster rate because of
strong increase in income, changing lifestyle, and demographic
patterns. In the last 10 years, a huge growth has taken place in
the consumer durables retail market. Taking the present situation
into account, one can see that the demand for consumer durables has
been increasing.
The increase in demand for consumer durables retail is because
of the increase in disposable income levels in families, since most
families are based on a double income these days. The rise in the
levels of family income has transformed the visage of the Indian
lifestyle which means that most companies view India as a prime
destination for consumer durables retail. Most of the consumer
durables retail market comprises of television sets, audio systems,
VCD players, washing machines, microwave ovens, air conditioners,
toasters, juicer-mixer-grinders, food- processors and so on. Though
Indian consumer durables have been increasing in demand within the
domestic market, it has tough competition from international
consumer durables companies such as Sony, Samsung, LG, Philips,
Inalsa, Morphyrichards, Black and Decker, . In fact, according to
the Indian Retail Sector analysis 2008-09, the size of the Indian
consumer durables and tech led industry is valued at Rs 35,000
crore.
The performance of the consumer durables retail is critical to
the growth of the retail industry of India. There are new ventures
being forayed into by the big Indian companies. For instance, we
have the Speech and Software technologies, from the Tata Group
which is working towards the launch of consumer durables in India.
TATA Croma is one of its retail outlets which is proving itself as
one of the major competitors in the retail market. The Tata Group
has already collaborated with Woolworths - an Australian
company.
Such steps in the consumer durables retail sector would
definitely facilitate the need for Foreign Direct Investment.
However, some international retailers have already started
investing in the Indian consumer durables market, such as Metro,
Spa International, and Dairy Farm. Among Indian companies,
Pantaloons has already started its saga of consumer durables
retail. The commodities would constitute color televisions, washing
machines, refrigerators, and microwave ovens. The chain of goods
will be available in Big Bazaar, Food Bazaar, Ezone, Home Town,
Electronic bazaar, which is also owned by Pantaloons.
It is quite a challenge to maintain the consumer durables retail
market in India because of the unprecedented challenges that are
attached with it. However, the consumer durables retail market in
India is here to stay because of the new age tastes of the modern
consumer in India.
Consumer Buying Behavior
Possibly the most challenging concept in marketing deals with
understanding why buyers do what they do (or dont do). But such
knowledge is critical for marketers since having a strong
understanding of buyer behavior will help shed light on what is
important to the customer and also suggest the important influences
on customer decision-making. Using this information, marketers can
create marketing programs that they believe will be of interest to
customers.As you might guess, factors affecting how customers make
decisions are extremely complex. Buyer behavior is deeply rooted in
psychology with dashes of sociology thrown in just to make things
more interesting. Since every person in the world is different, it
is impossible to have simple rules that explain how buying
decisions are made. But those who have spent many years analyzing
customer activity have presented us with useful guidelines in how
someone decides whether or not to make a purchase.
BUYING - DECISION PROCESS01. Need Recognition:-The first stage
of the buyer decision process in which the consumer recognizes a
problem a need.e.g. The need can be triggered by
internalstimuliwhen one of the persons normal needs hangers,
thirst, Sex rises to a level high enough to become a drive. The
need can be triggered by external stimuli.02. Information
Search:-The stage of the buyer decision process in which the
consumer is around to search for more information. The consumer may
simply have heightened attention or may go into active information
search. The consumer can obtain information from any of several
sources. I.e. personal sources (family, friends, and neighbours)
commercial sources (advertising salespeoples dealers, packaging,
displays). Public sources (mass media etc.)Experiential sources
(handling, examining, using the product).03. Evaluation of
Alternatives:The stage of the buyer decision process in which the
consumer uses information to evaluate alternative bounds in
thechoiceset.04 Purchase Decision:-The stage of buyer decision
process in which the consumer actually buys the product.Two factors
can come between the purchase intention and the purchase decision.
The first factor is attitudes of others.The second factor is
unexpected situational factor.05. Post PurchaseBehaviour:The stage
of the buyer decision process in which consumers takefurtheraction
after purchase based on their satisfaction or dissatisfaction.
SECTION 4METHODOLOGY OF THE PROJECT4.1 MARKETING STRATEGYA
marketing strategy is a process that can allow an organization to
concentrate its limited resources on the greatest opportunities to
increase sales and achieve a sustainable competitive advantage. A
marketing strategy should be centered on the key concept that
customer satisfaction is the main goal a strategy consists of a
well thought out series of tactics to make a marketing plan more
effective. Marketing strategies serve as the fundamental
underpinning of marketing plans designed to fill market needs and
reach marketing objectives. Plans and objectives are generally
tested for measurable results.I adopted different marketing
strategies like combinations, schemes, discounts,
guarantee/warranty and highlighting product features and its
various attributes. I created an impression in the minds of our
customer by creating its Brand image which can play huge role in
boosting sales.
4.2 MARKETING MIXThe basic purpose of determining the marketing
mix is to satisfy the needs and wants of the customers in the most
effective manner. The Marketing Mix, originally known as The Four
Ps, is a combination of product, price, place [distribution], and
promotion activities that are applied to a particular target
market. The general idea is to combine (mix) the variables to
generate an optimal, positive, and desired response in the target
market Product - An object or a service that is mass produced or
manufactured on a large scale with a specific volume of units. A
typical example of a mass produced service is the hotel industry. A
less obvious but ubiquitous mass produced service is a computer
operating system. Typical examples of a mass produced objects are
the motor car and the disposable razor. Khaitan has a huge variety
of products ranging from appliances to fans to luminaries. The
products are imbibed with excellent features with a 2 years
warranty whichKhaitan provides along with. All these products are
produced in huge volumes and are designed with the latest
technologies. Price The price is the amount a customer pays for the
product. It is determined by a number of factors including market
share, competition, material costs, product identity and the
customer's perceived value of the product. The business may
increase or decrease the price of product if other stores have the
same product. Khaitan offers a wide range of products at different
prices for various classes of goods with respect to the prices of
its competitors products. Place Place represents the location where
a product can be purchased. It is often referred to as the
distribution channel. It can include any physical store as well as
virtual stores on the Internet. Khaitan has a good distribution
channel in the Markets and mainly the purchases are made in bulk.
Promotion Promotion represents all of the communications that a
marketer may use in the marketplace.In our training we promoted
Khaitan products to Customers primarily by calling and by
distributing Brochures of product range.
4.3 Step of report generation:-
Fig 44.2 Types of Data and data collection: The research
includes primary as well as secondary data. Primary data: - The
primary data is collected through questionnaire, interaction with
customers, Floor Manager and PROMOTORs (In Shop Demonstrators). The
primary data, which is generated by the above methods, may be
qualitative in nature (usually in the form of words) or
quantitative (usually in the form of numbers or where you can make
counts of words used). Secondary data: - The secondary data is
collected through the daily sales report. And Internet is also one
of the main sources of the data collection. Sampling:Judgmental
Sampling is used here to fill up questionnaire and to collect
primary data. Population of Interest:- In this marketing research
population of interest is the customers visiting shopping
complexes. Sample Size: The sample size is 100 Demographic region:
- NorthDelhi Research design: Descriptive research design has been
used in this study. A customers perception regarding home
appliances has helped us to know about this particular segment of
Khaitan Electricals ltd. This method enabled us to a clear view of
outcomes, opportunities and even the risk-oriented areas. To
further analysis all these mention effect in detail, descriptive
method has been used which gave an insight of all the possible
reasons that are responsible for the growth of this segment. To
further facilitate the research, structured as well as unstructured
questionnaire, observations and consumer survey has been done.
Focus group interview is also taken.Data Analysis Technique: After
collecting data it is being analyzed using Microsoft Excel.4.4
Limitations of the study Limited time was the major constraint of
this study. Sample size (which is 100) is also a limitation of this
study as the sample may or may not be the representative of the
population. Comparison of all brands was not possible because of
non- availability of every brands on the same floor. Some consumers
are not cooperative and some do not know what to say.4.5
Observation, Analysis and DiscussionBefore we analyzed the data we
have collected through questionnaire fill up by respondent, we will
discuss the demographic factors related Respondents. Total no of
our Respondents is 100.1. Discussion about the sex ratio of our
respondents.Male55
Female45
So 55% of the respondents were Male and 45% were female.
2. Age of respondents:AGENo of respondents% OF RESPONDENTS
BETWEEN 15-252222
BETWEEN 25-351616
BETWEEN 35-453535
BETWEEN 45-552020
ABOVE 5577
So from the above pie chart we can say that the major respondent
were of the age 25-45(51%). And respondents of these age groups are
the biggest consumer of Home Appliances.
3. Occupation of Respondents:Professionno of respondents
Student18
Self Employed20
House Wife28
Employee29
Retired Person5
So 29% of the respondents is Employee, 28% is house wife and 20%
is self employed. So this is the main population who uses Home
Appliances mostly. So through this wide variety of respondents
which have different will give us insight about brand presence of
Khaitan electrical and its competitors.
Analysis of customers Response:1. Which Company products you
prefer most?
Company NameRating
Khaitan33
Morphy Richards20
Inalsa10
Philips37
2. Are you aware about the KhaitanHome Appliances products?
InfluenceRating
Yes34
No66
3. How do you come to know about KhaitanPlatini products?
Method NameRating
Newspaper29
T.V38
Internet18
Others15
4. Is KhaitanPlatini is successful in satisfying the customer
demand?
InfluenceRating
Yes36
No64
5. Does celebrity endorsement influence you to buy a particular
product?
InfluenceRating
Yes40
No60
6. While purchasing any home appliances what factor you look
into the product?
FACTORRATING
Price30
Quality22
Design10
Features38
7. Which retail outlet you prefer most for the purchase any
electrical appliances?
OUT LETPreference
Modern Retail Chains12
Company Showrooms20
Nearby Retailer30
Authorised Dealer38
8. Are you satisfied with the after sales services of Khaitan
home appliances?
InfluenceRating
Yes30
No70
4.6 Key Findings : Almost majorityof Customers wanted to pay
more formore features in Khaitan Products. So company can add some
more features or can launched Premium Products. Some of the persons
are already using Khaitan appliances and are satisfied with it.
Majority persons are not aware of KhaitanPlatini products. Many
customers have rated Khaitan products as durable and of good
quality. Majority of the customer is totally dissatisfied with the
after sales service of Khaitan appliances.
4.7 CONCLUSIONLooking at the survey as a whole it is very clear
that many people are using Khaitan appliances. Some people are not
using its products but they are interested to use in future.
Khaitan has a good brand name with wide product range. But its
services provided needs a lot of improvement in after sales
services; it can definitely increase its market share in its
product range. So on this basis I can say that there is a good
market potential of Khaitan products not only in New Delhi and NCR
region but also in other parts of india in near future.
4.8 Recommendations: First of all I would like suggest the more
availability of Khaitan product in store. I noticed that in most of
the store Khaitan Promoters complained about the shortage of the
product. Because of shortage of the Khaitan product many customer
either return or tend to another brand. Ensure there is widespread
distribution of Product brochures in the retail stores. The colour
of Every Home appliances is of White colour, so Khaitan can bring
variety in colour, they can launch Black or Greycolour Model
specially those Home appliances which are used in Kitchen, like
mixer grinder, juicer, microwaves, toasteretc because White colour
products become dirty and not so easy to maintain. Training Should
be provided to Khaitan Promoters at regular interval and at the
time of new Product launched Khaitan should concentrate on CRM, and
should maintain a data base of customer choice and preference so
that they can satisfy the need of customers. Price factor :-Talking
about KhaitanHome Appliances, though the product has been targeted
for its premium segment but price should be of affordable range or
else varieties should be provided i.e. different range should be
made available(in products). Collaboration with advertising
agencies can be made which will help in promoting its products. The
most important thingh which they should do is to improve the after
sales service, which is very poor.
5 BIBLIOGRAPHYBooks: -1. Principles of marketing by Philip
Kotler and Gary Armstrong. 2. Marketing Management (12th edition)
by Philip Kotler and Kevin Lane Keller.
Web sites:-1. www.khaitanelectricals.com2. www.wikipedia.org3.
http://en.wikipedia.org/wiki/Brand_management4.
http://www.marketingsciencecentre.com/page5/page20/brandimage.html5.
http://www.khaitan.com6. http://ezone.futurebazaar.com7.
www.economictimes.com
Search engines: -www.google.comhttp://in.answers.yahoo.com
SECTION 6ANNEXURE
Questionnaire (Customer)To know customers perception towards
Khaitan Electricals as a Brand in Home appliances and factors
influencing their buying decision during purchase of Home
appliancesDear Respondents, We would be grateful if you could spare
some of your time to response to the following questions needless
to say your response would be treated as confidential and would be
used only for the purpose of study.Thank you for your time, Year
20111. Which Company products you prefer most?Company
NameRating
Khaitan
Morphy Richards
Inalsa
Philips
2. Are you aware about the KhaitanHome products?
InfluenceRating
Yes
No
3. How do you come to know about KhaitanHome Appliances?
Method NameRating
Newspaper
T.V
Internet
Others
4. Is Khaitan successful in satisfying the customer demand?
InfluenceRating
Yes
No
5. Does celebrity endorsement influence you to buy a particular
product?
InfluenceRating
Yes
No
6. While purchasing any home appliances what factor you look
into the product?FACTORRATING
Price
Quality
Design
Features
7. Which retail outlet you prefer most for the purchase any
electrical appliances? OUT LETPreference
Modern Retail Chains
Company Showrooms
Nearby Retailer
Authorised Dealer
8. Are you satisfied with the after sales services of Khaitan
home appliances?InfluenceRating
Yes
No
PERSONAL DETAILSName: Address:Between 15-25Between25-35Between
35-45Between 45-55Above 55Gender: Male FemalePhone Number:Marital
status: Married UnmarriedProfession: Studentself employed employee
Retired PersonTHANKS8
Chart1570430
MALE 55%FEMALE 45%SalesColumn1
Sheet1SalesColumn11st Qtr57MALE2nd Qtr43FEMALETo resize chart
data range, drag lower right corner of range.
Chart1221635207
35-40>5515-2545-5525-35Sales
Sheet1Sales1st Qtr222nd Qtr163rd Qtr354th Qtr207To resize chart
data range, drag lower right corner of range.
Chart1292820185
House WifeSelf EmployedStudentRetired PersonEmployeeSales
Sheet1Sales1st Qtr292nd Qtr283rd Qtr204th Qtr185To resize chart
data range, drag lower right corner of range.
Chart14060
NOYESSales
Sheet1Sales1st Qtr402nd Qtr60To resize chart data range, drag
lower right corner of range.
Chart130221038
FeaturesPriceQualityDesignSales
Sheet1Sales1st Qtr302nd Qtr223rd Qtr104th Qtr38To resize chart
data range, drag lower right corner of range.
Chart112203038
Modern Retail ChainsCompany ShowroomsAuthorised DealerNearby
RetailerSales
Sheet1Sales1st Qtr122nd Qtr203rd Qtr304th Qtr38To resize chart
data range, drag lower right corner of range.
Chart130703rd Qtr4th Qtr
NOYESSales
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range, drag lower right corner of range.