PERCEPTION OF DEALER AND CUSTOMER

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HISTORY OF THE COMPANY

YEARLY EVENTS

1972

The Company was incorporated on 24th May, at Vadodara. Shri D.D. Lakhanpal and

Matsushita Electric Industrial Co. Ltd. Japan promoted the company.

In 1972 Mr. D. D. Lakhanpal realized the potential for dry cells batteries in the Indian

markets. So he, with the help of Mrs. Indira Gandhi, the then Prime Minister of India,

visited Japan, where the world-class batteries are manufactured. They visited various

battery producing companies one of which is Matsushita Electric Industrial Co. Ltd,

the pioneer and world leader in the dry cell batteries industry. Lt. Mrs. India Gandhi

was highly impressed by the business policies of Lt. Mr. Konu Suke Matsushita. So it

was decided to set up a dry cell battery unit in technical and financial collaboration

with Matsushita Electric Industrial Co. Ltd. in India. 1,66,666 shares taken up by

promoters, directors, etc., and 2,50,000 shares allotted to Matsushita Electric

Industrial Co. Ltd., Japan without payment in cash. 2,08,334 shares offered at par to

the public in January 1973. So Matsushita entered Indian battery industry with a good

40% share.

1981

5,00,000 Right Equity shares issued at par in prop. 4:5.

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1986

The Company received a letter of intent for the manufacture of 2,200 lakh pieces of

dry batteries per annum with zinc chloride technology.

1987

The Company proposed to introduce UM3 type (pencil batteries and later UM1 type

(standard type) batteries with the latest technology.

1989

UM 3D (NOVINO GOLD) batteries were introduced – the first of its kind. The best

batteries ever manufactured in India.

The company offered 22,50,000 No. of equity shares of Rs 10 each for cash at par on

`Rights basis' in the proportion 1:1 (all were taken up).

At this stage the company, Matsushita Electric Industrial Co. Ltd. was still

maintaining its 40% share.

1991

The Company proposed to expand the existing production capacity by establishing

new plant and machinery to manufacture Hi-tech Eco-Friendly, Mercury free, UM-3

(R-6) Type of Metal Jacketed Penlite Dry cell batteries.

1994

During the year, superior quality NOVINO SUMO-UM-IS (R-20) batteries and

PANASONIC Alkaline batteries were introduced.

The Company introduced superior quality and cost effective Novino Sumo-UM-2S

(R-6) Penlight type of dry cell battery with Zinc chloride technology. The company

also introduced "Panasonic" brand alkaline batteries.

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1995

The Company started implementation of ambitious gas lighter project.

1996

The Company introduced New Novino UM-IPN (R-20) type of dry cell battery in

paper jacket section with the brand Novino Raja with a baby as a logo. Today in most

of the rural areas of India people recognize this dry cell battery by that logo only.

About Mr. K.S.Matsushita

Born as the youngest of eight children in Wakayama Prefecture to an impoverished

farming family on 27th November 1894. The family name has its origin in the large pine

tree, which stood in the family compound - "matsu" meaning "pine" and "shita" for

"beneath".

Apprenticed to an Osaka charcoal brazier shop at age nine in the year 1904.

Began working in a bicycle shop in February 1905.

On 21st October 1910, he was employed at a branch of Osaka Electric Light Co. as an

apprentice-wiring worker. Promoted to construction foreman three months later.

In June 1917 he decided to start his own business. Invented the attachment plug and

two-way plug.

On 7th March 1918 he founded Matsushita Electric House wares Manufacturing Works,

the predecessor of Matsushita Electric. Began marketing his plugs.

On 15th December 1935 he incorporated the company as Matsushita Electric Industrial

Co. Ltd., with nine subsidiary companies.

On 10th January 1961 he assumed the position of Chairman of Matsushita Electric

Industrial Co. Ltd. His son-in-law, Masaharu Matsushita, filled his former position of

President.

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In May 1973 he assumed the position of Executive Advisor, and was succeeded by

Vice President A. Takahashi as Chairman.

On 29th April 1987 he was awarded First Class Order of the Rising Sun with Poulownia

Flowers by His Majesty and Emperor of Japan.

And he passed away at the Matsushita Memorial Hospital in Osaka in March 1989.

About the company

The Baroda-based company is a 51% subsidiary of the Matsushita Group of Japan and

manufactures the NOVINO brand of batteries. The Indian promoters, Lakhanpal

Group, holds another 7% Equity in the company.

The company has two manufacturing units, located at Baroda (Gujarat) and Pithampur

(Madhya Pradesh). The company is the third largest dry battery manufacturer and

seller in India. The company has initiated cost cutting measures through backward

integration as well as by producing vital punched metal and plastic moulded

components in-house.

Late Mr. D. D. Lakhanpal, the founder of the Matsushita Lakhanpal Battery India

Limited & Mr. Konu Suke Matsushita laid the foundation stone of the Matsushita

Battery India Limited, on 15th August 1972 at G. I. D. C. Makarpura Industrial Estate,

Vadodara.

The building work & installation of the machinery from Japan was undertaken rapidly

& the production commenced from 2nd July 1973 with metal-jacketed cell in Hyper

Grade in UM-1 & UM-2 segments. On 1st October 1973 MLBI, Vadodara introduced

Hi-Top grade performance cell for the first time in India & on 1st January 1976 it

introduced paper jacketed "SPECIAL" cells. Since then the company has progressed

between ups & downs by sincere efforts of management & employees and the future

has been paved for higher achievements.

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Company’s Aim: "Our aim is to supply portable source of energy & its

related products, thus contributing to the betterment of society, not only

in India but throughout the world."

Matsushita Lakhanpal Battery India Ltd., has a very simple and

systematic philosophy. It has been clearly defined to all employees of the

organization. The main vital philosophy of the organization is " To Make People

Before Product". This philosophy has been supported and implemented by all the

employees from top level to lower management in the organization. The logic behind

this philosophy is to achieve organizational goals and objectives.

The main basic management objective of the company is " To Contribute to the

Society ". Therefore, in order to achieve above said objective, the company has it's

own creed and principles.

1973

Production commenced of metal-jacketed cell in "NOVINO HYPER" grade UM-1

and UM-2.

First dispatch of Metal Jacket leak proof NOVINO

Introduced HI - Top grade high performance cells for the first time in India.

1975

First Export consignment to Kuwait.

1976

Introduced paper jacketed "NOVINO SPECIAL" UM-1 cells.

Introduction of UM-3 pencil dry cell battery.

1981

500 million productions achieved.

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1987

Foundation stone of Pithampur Project laid.

1989

Introduced Zinc Chloride Metal Jacket cell for the first time in India.

Pioneers of Gold Segment in India.

1993

Installation of Machinery for mercury (Hg) free NOVINO GOLD (3D & 1D)

1994

Awarded ISO-9001 certificate

1996

4000 million productions achieved.

1997

Awarded ISO-14001 (EMS) Certificate Export Award.

The Indian battery segment did see a lot of pressure in the last two years on account

of dumping of low-priced Chinese batteries, which were being pumped in large

volumes. However, that phase is now practically at an end as consumers have realized

the dangers of using low-quality Chinese batteries. This has benefited battery

manufacturers like Matsushita Lakhanpal.

For the year ended March 2003, the company reported a turnover of Rs 155.4 crore

and registered a net profit of Rs.8.8. crore, thereby registering an EPS of Rs.11.4. As

on March 2003, the company had an investment of around Rs. 20 crore in debt

schemes of various mutual funds. It has announced a 30% dividend payout.

In the first half of the current FY, Sales and Net Profits have dropped by 8% and 12%

to Rs.87.56crore and Rs.4.13 crore respectively. However, given the brand equity of

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NOVINO, Cash available with the company and decreasing threat from Chinese

manufacturers, the company should do well in the times to come.

Business Profile

Lakhanpal National Ltd (LNL) is a major player in dry cell batteries and was

promoted by Matsushita Electric Company of Japan (51% equity) and the Lakhanpals.

While the company produces all the 3 sizes of batteries, its presence is stronger in the

small size, a segment-gaining fast in volumes with the proliferation of electronic

goods in the country.

Recent Developments

The Company, which used to market its products under the brand name Novino in the

dry cell segment, has launched the Panasonic brand of alkaline batteries. The

company is focusing on the Panasonic brand, taking into consideration future growth

prospects of the alkaline battery segment. The company has cut down on its raw

material costs through backward integration, producing metal punched and plastic

moulded components in-house. This has paid off handsomely in FY98 with a 58%

surge in net profit. The company has been certified with both ISO 9001 and ISO

14001.

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The map showing the locations of factories and offices of MLBI in India

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The Baroda Factory

The Pithampur Factory

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LITERATURE REVIEW

The principal task of marketing management is to fulfill the aspirations of the

consumers. It is thus imperative to understand what the consumers want; how they

make the choice; or what are there sources of information and influence processes etc.

in this process an organization can identify new opportunities in the market; evaluate

and monitor marketing actions; and in general, evolve better marketing program to

serve the intere4st of consumers. Thus market research acts a link between the

consumer and the marketer.

Role of Market Research

“Market research is defined as the systematic and objective search for and analysis of

information relevant to the identification and solution of any problem in field of

marketing”.

According to American Marketing Association (AMA) marketing research is defined

as “the systematic gathering, recording and analyzing of data about problems relating

to the marketing of goods and services”.

MR is the function which links the consumer, costumer, and public to the marketer

through information – information used to identify and define marketing opportunities

and problems; generate; refine and evaluate marketing actions; monitor marketing

performance; and improve understanding of marketing as a process. MR is a

systematic collection and analysis of information that is ultimately used in evolving

some marketing decisions. Likewise, marketing manager(s) should provide a clear

detailed scenario of the problems faced by the company before the market researcher.

They must not use MR as a fire-fighting device or to justify some preconceived

actions.

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The Market Research Process

MR exercise may take many forms but systematic enquiry is features common to all

such forms. Being a systematic enquiry, it requires careful planning of the orderly

investigation process. Through it is an oversimplification to assume that all research

processes would necessarily follow a given sequence, MR often follow a generalized

pattern which can be broken down and studied sequentially.

Stages in the market research process

In planning and designing a specific research project, it is necessary to anticipate all

the steps that must be undertaken if the project is to be successful in collecting valid

and reliable information.

The steps of MR process are highlighted in the following flow diagram.

The steps are explained below the figure.

Defining the problem

Statement of the research objectives

Planning a Research Design

Planning a sample

Collecting the data

Analyzing the data

Formulation of conclusion

Prepare and present the report

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Defining the problem

Clear problem definition is of crucial importance in MR as in terms of both

time and money. It is rightly said that “a problem well defined is half-solved”.

Careful attention to problem definition allows the researcher to set the proper

research objectives, which in turn facilitate relevant and economic data

collection.

Statement of the research objectives

After clarifying and identifying the research problem with or without

exploratory research, the research must be a formal statement of research

objectives.

Research objectives may be stated in qualitative or quantitative terms and

expressed as research question statement or hypothesis.

Planning a research design

Once the research problem been defined and the objectives decided, the

research design must be developed. A market design is a master plan

specifying the procedure for collecting and analyzing the needed information.

It represents a framework for the research action. The objectives of the study

discussed in the previous step are included in the research design to ensure

that data collected is relevant to the objectives. The researcher must at this

stage also determine the type and source of information needed, the data

collection methods, the sampling methodology and the data timing and

possible costs of the research.

Planning a sample

Although the sampling plans included in the research design, the actual

sampling is as separate and important stages in the research process. Sampling

involves procedures that use a small number of items or parts of the

population to make conclusion regarding the whole population. The first

sampling question that needs to be asked is that who is to be sampled, who is

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the target population. The next important issue concerns size – how large or

how small should a sample be? Generally speaking, large samples give

reliable information than the smaller ones, but if probability sampling is used,

a small proportion of the sample may give reliable measures of the universe.

Collecting the data

The data collection process follows the formulation of research design

including the sample plan. Data, which can be secondary or primary, can be

collected using variety of tools. These tools are classified into two broad

categories, the observation method and the survey methods, all of which have

their inherent advantages and disadvantages.

In MR, field survey is commonly used to collect primary data from the

respondents. Surveys can be a) personal, b) by mail, c) telephonic and d) by

diary.

It is common practice to use structured questionnaires prepared in advance, to

elicit the necessary from the respondents. Whether it is personal or mail

survey, it is necessary to design suitable questionnaire, conduct a pilot survey

and undertake a pre-testing of the questionnaire. The pre-testing will enable

the researcher to realize the shortcomings of his questionnaire.

Secondary data means data that are already available i.e. they refer to data,

which have already been collected and analyzed by some one else for some

other purpose. When researcher utilizes secondary data, he has to look various

sources from where he can obtain data. Usually published data is available in:

1) Various publications of central, state and local government

2) Various publications of international bodies

3) Technical and trade journals

4) Books, magazines and newspapers

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5) Reports and publications of various associations connected with business

and industry, banks, stock exchanges, etc.

6) Reports prepared by research scholars, universities, economist, etc in

different fields

7) Public records and statistics, historical documents and other sources of

publication information

Analyzing the data

Data processing begins with the editing of the data and coding process,

tabulation and drawing statistical inferences. Editing involves inspecting the

data collection forms for omission, legibility and consistency in classification.

Before tabulation, need to be classified into meaningful categories. The rules

for categorizing, recording and transferring the data to data storage media

called codes. This coding process facilitates the manual or computer

tabulation. If computer analysis is being used, the data can be punched and

verified.

Analyses represent the application of logic to the understanding of the data

collected about the subject. In its simplest forms, analysis may be

determination of consistent patterns and summarizing of appropriate details.

The appropriate analytical tool chosen would depend on informational

requirements of the problem, characteristics of the research designs and the

nature of the data gathered.

Formulation of conclusion, preparing and presenting the report

The final stage in the research process is that of interpreting the information

and drawing conclusions for use in managerial decisions. The research report

should effectively communicate the research findings and need not necessarily

include complicated statements about the technical aspects of the study and

research methods.

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The researchers are required to make both the oral and written presentation. Since

each project is different, the presentation of each required originality. However, the

better the earlier steps in the research process have been executed, the more likely is it

that a good presentation would result.

SOME ASPECTS OF MARKETING RESEARCH

Consumer marketing research especially involves various techniques as the attitude

measuring scales, the psychographics, the demographics, the semantics, etc. Any

consumer marketing research involves in-depth analysis of the personality and age,

income, family, habits, etc., as these tend to influence the answers of the consumers.

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RESEARCH STUDY

The aim of this research is to study the dealer’s and customer’s perception and

satisfaction level about the Novino brand dry cell batteries manufactured by

Matsushita Lakhanpal Battery India Ltd. (MLBI).

Objectives:

To find the dealer’s overall perception and satisfaction level about Novino

brand dry cell batteries with respect to other brands of dry cell batteries.

To find the customers’ overall perception and satisfaction level about Novino

brand dry cell batteries with respect to other brands of dry cell batteries.

To study and understand the distribution network of the company.

To study the customer’s and dealer’s attitude towards other brands as

compared to Novino brand and their willingness to buy/sell Novino brand dry

cell batteries.

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RESEARCH METHODOLOGY

Research Design:

When the researcher is interested in knowledge the characteristics of certain groups

such as age, sex, education level, occupation, etc.; interested in knowing the

proportion of the population who have behaved in a particular manner; making the

projections of certain things; or determining the relationship between two or more

variable, “Descriptive Study” becomes necessary. That is why we have decided to go

for a structured, undisguised Descriptive Study.

Descriptive studies are well structured. Design in such studies must be rigid

and not flexible and must focus attention on following:

What the study is about and why is it being made?

What techniques of gathering data will be adopted?

How much material will be needed?

Where can be the required data found?

Processing and analyzing of the data.

Reporting the findings.

To get the quantitative information during the study various methods can be

adopted like watching or observing people, experimenting on prices and designs

of the products, interviewing etc. Since we were required to interact with the

subjects we have adopted personal interview/survey method.

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SAMPLING

An integral component of a research design is the sampling plan. Specifically, it

address three questions: whom to survey (The Sample Unit), how many to survey

(The Sample Size), and how to select them (The Sampling Procedure). Making a

census study of the entire universe will be impossible on the account of limitations of

time & money. Hence sampling becomes inevitable. A sample is only a portion of the

universe population. According to Yule, a famous statistician, the object of sampling

is to get the maximum information about the parent population with minimum effort.

Properly done, sampling produces representative data of the entire population.

Sampling Methodology:

In our case the population/universe is too large – around 35 lakhs. So we decided to

go for probability sampling. Under this sampling design every item of the universe

has an equal chance, or probability, of being chosen for sample. This implies that the

section of the sample items is independent of the persons making the study – that is,

the sampling operation is controlled objectively so that the items will be chosen

strictly at random. Probability sample may take the form of:

Simple random sampling

Systematic sampling

Stratified sampling

Cluster and area sampling

Sequential sampling

Multi stage sampling

In our case we have adopted “Simple Random Sampling”.

In case of customers

Population/Universe : Citizens of Baroda city and Halol

Sample Size : One thousand (1,000)

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In case of dealers

Population/Universe : Retailers in and around Baroda city(i.e. Baroda district)

Sample Size : Nine hundred (900)

Data Collection Method:

Collection of data is the first step in statistics the goal of conclusion. The data

collection process follows the formulation of research design including the sample

plan. Data, which can be secondary or primary, can be collected using variety of tools.

In our case we needed only primary data. Primary data can be collected in many

important ways:

Observation method

Interview method

Through questionnaires

Through schedules

Warranty cards

Distributor audits

Consumer panels

Using mechanical devices

Through projective techniques

Depth interviews

Content analysis

The most commonly used method to collect primary data is through field survey.

Those surveys can be a) personal; b) mail; c) telephonic. It is common practice to

use structured questionnaires prepared in advance, to elicit the necessary from the

respondents.

In our research we have adopted survey and interview method to collect data.

Data Collection method : Face to face Interviews

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Data Collection Instrument : Structured, Undisguised questionnaire

Source of Data:

In case of customers:

Students, self-employed, service people, businessmen and housewives

In case of dealers:

Provision and General stores, medical stores, photo studios, electrical and

electronics shops, stationeries, etcc

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BRIEFING ABOUT OTHER DRY CELL BATTERY COMPANIES

There are many dry cell battery-manufacturing companies in India. Some of them are

listed below:

Eveready Industries India Ltd. (Eveready)

BPL

Indo National Ltd. (Nippo)

Duracel

Geep

Energizer

BRIEFING ABOUT SOME COMPETITORS

Eveready Industries India Ltd.

Eveready Industries India Ltd. is heralded as the market leader of India when it comes

to dry cell batteries and flashlights.

Today the brand Eveready is synonymous with power, with a durable franchise that

has spanned over a century. It’s a name that has progressed with the country, be it

lighting up a slushy monsoon path or keeping beat with a nation young with

achievers. In this new millennium, sales of Eveready Industries India Ltd. have

reached over US $200 million. The flagship of the Williamson Magor Group,

Eveready has expertise in the areas of manufacturing, cultivating, marketing and

distributing a diverse range of products. The portfolio ranges from carbon zinc

batteries, rechargeable batteries, alkaline batteries and flashlights to packet tea and

bulk tea.

In fact the group has over 130 years of experience, growing the world’s finest teas in

the most challenging of terrains. Some of the best tea brands in the world have a blend

with the produce of Williamson Magor gardens. Thus from the first flush of tea in the

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gardens to the first invigorating sip in the morning, Eveready is always there to

revitalize your day.

MILESTONES

1905

National Carbon starts its Indian operations with sale of batteries

ImportedfromUSA.

1926

Ever Ready Company India sets up the first arc carbon factory at

Canal Road, Kolkata.

1934

Eveready Company incorporated as a private company on 12th November.

1939

Camperdown Works - first modern battery plant established at

Cossipore in Kolkata.

1941

Union Batteries merges with Eveready Company and the name is changed to National

Carbon Company.

1951

Renamed as Union Carbide India Ltd, a subsidiary of world wide

Multinational, Union Carbide Corporation.

1959

Name of the company changed to Union Carbide India Ltd.

1995

Sale of shares of Union Carbide Corporation in Union Carbide India Ltd to Mc Leod

Russel (I) Ltd. belonging to the Williamson Magor Group and a new name - Eveready

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Industries India Ltd (EIIL).

1996

Mc Leod Russel (India) Ltd, merged with EIIL, bulk tea business brought into EIL

fold.

2000

Bishnauth Tea Company merged with Eveready Industries India Ltd.

2005

Brand EVEREADY is hundred years.

Indo National Ltd.

Indo National Ltd., the second largest dry cell battery manufacturer in India was

incorporated in 1972 as a joint venture with Matsushita Electric Industrial Co., Ltd.,

of Japan with the goal of bringing the world’s best battery technology to the country.

A lot of firsts are to its credit like the tamperproof top seal, Zinc Chloride technology

in AA batteries, introduction of twin piece Manganese battery in shrink pack and

Nippo Premium Gold, a first in India. Upgrading it further to Mercury free status,

another first in India. Nippo also offers a range of torchlights from its stable.

With factories at Nellore and Tada, both in Andhra Pradesh, Nippo caters to the soft

energy requirements of the country.

Being India’s first certified battery company with ISO 9001 and ISO 14001,

Nippo also has the ISI mark of quality on all its batteries.

They have walked away with the Management Excellence Awards Silver and Gold

from MEI, Japan.

Nippo celebrated its 25th anniversary in 1998 and continues its tradition of providing

world class products to its customers.

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Brand building has been a part of the advertising exercise over the last few years,

where leading celebrities like Rahul Dravid and Govinda have been engaged to

campaign for Nippo across the country. Besides using he electronic media, a lot of

outdoor activities through hoardings, wall paintings and mobile media like buses

have been utilized extensively for Nippo.

Duracell

As part of The Gillette Company, Duracell is the world's leading manufacturer and

marketer of high-performance alkaline batteries. Duracell also markets primary

lithium and zinc air batteries as well as rechargeable nickel-metal hydride batteries

The story of Duracell begins in the early 1920's with an inventive scientist named

Samuel Ruben and an eager manufacturer of tungsten filament wire named Philip

Rogers Mallory. Ruben came to the P.R. Mallory Company seeking a piece of

equipment he needed for an experiment. But Ruben and Mallory saw an opportunity:

uniting the one's inventive genius with the other's manufacturing muscle. Their

partnership, which would last until 1975 with Mallory's death, was the bedrock of

Duracell International.

Samuel Ruben's inventions revolutionized battery technology. Amidst World War II,

for instance, Ruben devised the mercury cell, which packed more capacity in less

space and was durable enough for the harsh climates of wartime theaters like North

Africa and the South Pacific — places where ordinary zinc carbon batteries used in

flashlights, mine detectors, and walkie-talkies couldn't hold up. P.R. Mallory

manufactured millions of mercury cells for the war effort. The Mallory Battery

Company was formed shortly thereafter.

In the 1950's, Samuel Ruben went on to improve the alkaline manganese battery,

making it more compact, durable, and longer lasting than anything before it. At about

the same time, Eastman Kodak introduced cameras with a built-in flash unit that

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required more power than zinc carbon cells could provide. The cameras needed

alkaline manganese cells but in a new size, the AAA. Mallory made them, and also

licensed the technology to others because the company, at that time, had no consumer

distribution.

The photographic demand for power put alkaline cells on the map — and the

DURACELL brand was introduced in 1964. Soon, the consumer market for

DURACELL batteries rocketed and supplies had to be rationed in the 1970's as

manufacturing capacity caught up.

Today, Duracell is the world's leading producer of high-performance alkaline

batteries. The tradition of innovation started by Ruben and Mallory is still evident in

new DURACELL batteries such as DURACELL ULTRA with M3 Technology.

Duracell believes there is no limit to the potential of portable power.

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QUALITY STANDARDS AND PRODUCT PROFILE

In this fast changing complex world, for a mass producer of Dry batteries, it becomes

Inevitable to retain the respect of customers around the world.

Providing higher standards of products and services to customers has been a prime

motto for MLBI. With a perfect combination of advanced technology and Quality

standards, MLBI today delivers the best in Battery Industry. A combination evolved

over the past three decades. Ever since inception, MLBI has committedly provided

portable sources of energy to customers in India and across the world. Today,

millions of customers enjoy a source of light or a piece of entertainment powered by

superior quality batteries made by the company.

Its expanded product line-up caters to the varied requirements of its customers – be it

for the king of all batteries “Novino Raja” (‘Raja’ in India means ‘a King’) or be it

for “Novino Gold”. MLBI’s products are made for all types of customers – both rural

and urban. They give satisfaction to every pocket – with economy as well as

premium products.

This success has been achieved by setting up a Quality Management System (QMS),

a system, which ensures commitment of all employees towards compliance to

stringent quality standards, an endeavor to meet the requirements of customers and

achieve higher levels of “Customer Satisfaction”, a committed effort to give more

than what the customer desires from the company’s products and services, a

commitment of all employees perfectly guided by the top-management of the

company, a perfect blend of Management power and Manufacturing power (see

Quality Policy).

As part of this process, the company established the internationally accepted Quality

Management System (QMS) and got certified for ISO 9001 standards. Thereafter, a

series of internal and external audits, surveillance and re-certification audits have

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become a part of an annual calendar of activities. This system has been successful in

demonstrating company’s commitment to quality.

All processes in MLBI, from a QMS perspective, are tuned to make every step in the

process of making batteries focused on the customer. From the time a new design

idea is generated, to the emergence of the final product, to its delivery and even to

the extent of measuring the response of the customer – all are well taken care of in

this system. The continual improvement of the entire system regularly over-hauls all

processes involved in achieving the final goal. An effort only to bring in the priceless

smile on the face of millions of customers world-over.

The Strength The Quality Within ISO 9001

Through MLBI’s ISO activity the company formulated the QUALITY POLICY,

which elaborates its commitment to quality and its future business direction, which

includes its responsibility to the environment.

The Quality Policy extends not only to the personnel within the organization, but also

to members of its sales channel, it’s suppliers and sub-contractors. Thus ensuring the

supply of high quality products at all times. The Quality Policy also especially

underlines MLBI’s commitment towards the preservation of the environment.

MLBI’s persistent efforts to meet the ISO 9001 requirements were duly rewarded on

28th January 1995 when it became one of the few companies in India to receive the

ISO-9001 certification at the pre-audit stage itself.

At Matsushita Lakhanpal Battery India Ltd., they believe that the ISO 9001 is not an

end in itself. It is only the beginning and they strive hard to enhance customer

satisfaction by continuous supply of good quality products to the customers all over

the world as per their needs.

Quality Policy

To manufacture and supply dry batteries and related products to the customers as per

their needs. In order to achieve this objective, MLBI’s Quality Policy shall be:

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1. Adherence to laid down specifications and systems.

2. For enhancing customer satisfaction, training / awareness shall be

imparted to its employees, sales force and suppliers.

3. Promotion and facilitation of value creative Quality and process

related activities with Business associates.

4. To make every effort for continual improvement in all business

processes.

As a responsible enterprise Matsushita Lakhanpal Battery India Ltd. shall strive to

supply quality products to its valuable customer at the point of demand.

Environment Management System (EMS)

(A Step towards ECO friendly Operations)

ISO - 14001 Certification (EMS)

Nature has given us beautiful things beyond imagination. It is the responsibility of

every human to maintain the eco-balance in tune with nature.

Recognizing this responsibility towards nature, Matsushita Lakhanpal Battery India

Ltd. (MLBI), decided to make environment-related aspects as part of their major

activities. In spite of the fact that manufacturing of dry batteries does not result into

any large scale damage to the eco-system like other major industries, MLBI decided

to strive for contributing in every possible way.

Way back in 1996, an Environment Control Office (ECO) was set up in MLBI to

take care of various Environment related aspects. These mainly included pollution

control measures, creating environmental consciousness among MLBI workforce and

members of the society, setting stringent benchmarks for achieving Environment

Objectives, etc. Today MLBI’s Environment Management System (EMS), in several

cases, goes beyond the requirements of available external standards.

- 29 -

Several activities form a part of MLBI’s efforts in this endeavor. Each employee of

MLBI has been trained on issues related to the environment, impacts of their

activities and requirements for successful implementation of an Environment

Management System. These trainings over a period of time have proved to be

immensely successful. Each employee now not only works within the framework of

EMS but also spreads the message of taking care of the environment to people

beyond the business boundaries of the company. Each Environment-related aspect

has been considered in detail and complied with the requirements of ISO 14001.

MLBI was successful in attaining ISO 14001 certification in December 1997 (see

Environment Policy). Thereafter, a series of internal and external audits, surveillance

and re-certification audits have become a part of an annual calendar of activities.

This system has been successful in demonstrating company’s commitment to

environment requirements by complying to set standards.

MLBI has also taken special initiatives along with Government and Pollution control

bodies in formulating policies for protection of the environment. Latest international

trends that exist today have not only guided the Battery Industry but several other

industries. These efforts have helped in introducing eco-friendly batteries in India.

Today, harmful chemicals like mercury and cadmium are not added during the

manufacturing of Dry Batteries by MLBI.

MLBI takes care of nature so that our children and their coming generations live a

better life – in harmony with nature.

Environment related activities have always been given top priority by Matsushita

Lakhanpal Battery India Ltd., since the commencement. As Environmental issues

started evoking a serious concern the world over, Matsushita Lakhanpal Battery

India Ltd., set up an Environment Control Office (ECO) in the year 1996 to

monitor not only pollution control aspects, but also for promotion of other

environment related activities including creation of environmental consciousness

among MLBI's work force. In this regard, MLBI’s environmental status was

audited by EPPO (Environment Protection Promotion Office) in line with ISO

- 30 -

14001 EMS requirements, which later went on to become the bench mark for

their ISO 14001 campaign.

During the campaign, MLBI’s target was to provide awareness, training and

education to all its employees regarding environment, impacts of their activities on

the environment and some details about Environment Management System. They

laid much emphasis on training by imparting training for nearly 2 hours per person

per year during the campaign stage to ensure that every employee attained the

minimum necessary knowledge about environment and related activities. On

successful completion of these activities, MLBI achieved the ISO 14001 certification

in December '97 and was re-certified in February 2001.

MLBI has always been in the forefront for environment related activities and its

commitment towards the environment includes bringing the latest international

trends in creating a legal framework for environment and pollution control as

applicable to the battery industry. This leadership has been demonstrated in the past

while participating with Government and pollution Control bodies in formulating

policies towards the introduction of Environment-friendly products in the Indian

markets. The achievement of ISO 14001 has given them a new surge of confidence

for pioneering many such activities and contributing their bit towards making the

world a better place to live in.

- 31 -

PRODUCT PROFILE

The overall battery industry can be classified into two segments — primary and

secondary. Primary batteries are typically non-rechargeable. Dry cell batteries fit into

this category. Secondary batteries can be recharged. They are of the conventional lead

acid battery or the more advanced valve regulated lead acid types. These are typically

used in automobiles, telecom equipment and UPS.

Matsushita Lakhanpal Battery India Ltd. manufactures only primary batteries. The

specifications and other vital information about various batteries produced at MLBI

are given below:

- 32 -

Products under R20 category

1) NOVINO SPECIAL

Cell Type - R20, UM – 1P, ‘D’ size

Construction - Paste type, Paper Clad

Category - Multipurpose

Nominal Voltage - 1.5V

Storage Guarantee - 18 Months

Relevant BIS Std - IS 8144-1997

Total Height - 59.50 ~ 61.50 mm

Diameter - 32.20 ~ 34.20 mm

Leakage Guarantee - No leakage during usable period

Recommended Appl- Medium drain torches, radio, tape

recorders, etc

Std Packing - 25 pcs/Display Box, 12 Display

Ideal Storage - Cool and dry place

- 33 -

2) NOVINO HYPER

Cell Type - R20, UM – 1U, ‘D’ size

Construction - Paste type, Metal Clad






Diameter - 32.20 ~ 34.20 mm

Leakage Guarantee - Up to 0.6 c.v.

Recommended Appl - Medium drain torches, radio, tape

recorders, etc

Std Packing - 25 pcs/Display Box, 12 Display

Boxes/Carton. Blister Pack


- 34 -

3) NOVINO SUMO

Cell Type - R20, SUM – 1S, ‘D’ size

Construction - Paper lined, Metal Clad

Category - Heavy Duty





Diameter - 32.20 ~ 34.20 mm


Recommended Appl - Heavy drain Torches, Tape Recorders,

other heavy duty appliances

Std Packing - 2 pcs/Blister, 10 Blisters/ Display box, 10

Display boxes/Carton


- 35 -


1) NOVINO HYPER

Cell Type - R14, UM – 2U, ‘C’ size

Construction - Paste type, Metal Clad






Diameter - 24.70 ~ 26.20 mm


Recommended Appl - Medium drain Torches, Radio, Tape, recorders

Std Packing - 20 pcs/Display Box, 15 Display boxes/cartoons


- 36 -


1) NOVINO HYPER

Cell Type - R6, UM-3U, 'AA' size

Construction - Paperlined, PVC Shrinked






Diameter - 13.50 ~ 14.50 mm

Leakage Guarantee - No leakage during usable period.

Recommended Appl - Medium drain Torches, Radio, clock, etc

Std Packing - 10 pcs/Strip, 5 Strips/Display box. 12

Display boxes/carton


- 37 -

2) NOVINO SUMO

Cell Type - R6, SUM-3S, 'AA' size

Construction - Paperlined, Metal Clad






Diameter - 13.50 ~ 14.50 mm

Leakage Guarantee - Up to 0.5 c.v..

Recommended Appl - Medium drain Torches, Tape recorders

Std Packing - 10 pcs/Strip, 5 Strips/Display box. 12

Display boxes/carton


- 38 -

3 )NOVINO GOLD

Cell Type - R6, UM-3D, 'AA' size


Category - Heavy duty





Diameter - 13.50 ~ 14.50 mm


Recommended Appl - Toys, Camera, Personal Stereo etc

Std Packing - 10 pcs/Blister, 6 Blisters/ Display box, 10

Display boxes/Carton


- 39 -

3) NOVINO PREMIUM GOLD (ECO FRIENDLY)

Cell Type - R6, UM-3NE, 'AA' size


Category - Heavy duty





Diameter - 13.50 ~ 14.50 mm


Recommended Appl - Photography, walkman, toys, etc

Std Packing - Primary: Blister packing 2 pcs/card

Secondary: Display - 60 pcs/display

Tertiary: Carton - 600 pcs/carton


- 40 -

Apart from these standard dry cell batteries, Matsushita Lakhanpal Battery India Ltd.

also manufactures custom made batteries for various companies including Indian

Railways and Indian Defence Forces. The batteries used in the wireless sets along the

international border of India are all manufactured at MLBI.

- 41 -

DATA ANALYSIS AND INTERPRETATIONS

For Dealers:

The data collected from the primary sources (through collection of the responses to

the questionnaire) was assembled, sorted, selected and analyzed. The analysis of the

data is as follows:

Q.1. Do you get Delivery of Novino Batteries in time?

Delivery of Novino batteries

83.94%

9.24%1.87% 4.95%

Always Sometimes Rarely No reply

Out of the total dealers covered, it was found that about 84% of them receive

the stock on time. It shows that the distribution channel of the company is effective

even in the rural areas. Around 16% those who don’t get in time are those dealers who

don’t buy very frequently or those who buy in very small quantities.

- 42 -

Q.2. Are all types of batteries available to you when required?

Availiblity of all type of batteries

73.38%

16.39%

5.9%4.73%

Always Sometimes Rarely No reply

Around 73% of the dealers say that all types of batteries are available

whenever required where 27% say that they are either available sometimes or never.

This is because the sales representatives does not visit new outlets and those outlets

which are located in too remote areas.

Q.3. What is your satisfaction level about S.R.’s visit and opinion about his

qualities?

Satisfaction level about S.R. visit

67.77%

22.22

4.62% 4.73%

Highly satisfied Partially satisified

Least satisfied No reply

- 43 -

Dealers opinion about S.R.

0

20

40

60

80

Good Average Bad No reply

Opinion

Perc

en

tag

e

Behaviour Involvement Knowledge

Around 68% of the dealers are happy about the S.R.’s visit and around 70%

have good opinion about the qualities of the S.R. like his behavior, involvement and

knowledge about the products. The other 32% are not happy about the S.R.’s visit

because of varied reasons like they don’t like his behavior or involvement or

knowledge about products or due to his irregular visits.

Q.4. Are you satisfied with the margin of Novino Batteries?

Opinion for margin in Novino

48.41%

43.67%

5.94% 1.98%


Only 48% of the dealers are satisfied with the margin of Novino Batteries and

the satisfied dealers are mostly from the rural areas. The unsatisfied ones are mostly

from the urban areas. They are not satisfied because of many reasons like a) many

other brands are available in urban areas providing more margin than Novino brand

- 44 -

batteries, b) other brands coming out with new schemes for the dealers like cash

discounts.

Q.5. What is your opinion about company’s credit policy?

Credit policy

57.2132.01

4.18

5.72


The company does not give credit to the distributors but the stockist give

credit up to the period of 15 days to the wholesalers and retailers. But most of the

dealers want a credit period of atleast one month. So that is the obvious reason for the

dissatisfaction of most of the dealers.

Q.6. Are you aware of companies replacement policy? If yes, give your opinion

about it.

Awareness about Replacement policy

010203040506070

Yes No No reply

- 45 -

Opinion about Replacement policy

64.85

21.05

6.58 7.52


Around 60% of the dealers are aware of the replacement policy of the

company though they never faced any replacement problems either with the

customers or the stockists and others are not aware because they say they never faced

any problem with the Novino brand batteries, so they have not bothered to know

about the replacement policy. Those who are aware of the policy around 65% of them

feel the policy is good because according to the replacement policy the defective

stock if any will be replaced immediately.

Q.7. Give your opinion about the following:

Dealers opinion

0

20

40

60

80

100

Sales

pro

mot

ion

POP m

ater

ial

Adv

ertis

emen

t

Pro

duct q

uality

Pac

kaging

Off-

take

Pe

rce

nta

ge


- 46 -

Most of the dealers are satisfied with the quality, packaging and off-take of Novino

brand batteries but not very satisfied with the sales promotion activities, availability

of POP material and advertisements of the Novino brand batteries.

Q.8. What is your satisfaction level about company’s involvement?

Company's involvement

55.2329.26

7.268.25

Highly satisfied Partially satisfied

Least satisfied No reply

Only 55% of the dealers are satisfied with the company’s involvement directly

or indirectly. The other 45% of the dealers who are not satisfied are mostly from the

urban areas. They say the company representative does not visit them unless there is

some problem.

- 47 -

For Customers:

Q.1. Are Novino Batteries available at your nearest store?

Availibility of Novino batteries at nearest

shop

12.5%

85.2%

0.8%

1.5%

Always

Sometimes

Rarely

No reply

It is obvious from the pie chart that around 85% of the customers interviewed

say that Novino brand batteries are always available at their nearest store. So it can be

inferred that MLBI has succeeded in reaching almost all of its customers and within

no time it will succeed in reaching 100% of its customers through its effective

distribution channel.

Q.2. What is your opinion about following features of Novino batteries?

Customer's opinion

74.5

24

0.8

0.7

69

27.8

1.1 2.1

77.5

19.5

2 1

62

33.5

1.5 3

47

45

6.7

1.3

0

10

20

30

40

50

60

70

80

90


Life span Power Leakproofness Packaging Outlook

- 48 -

Most of the customers are satisfied with the lifespan, power and leakproofness of the

Novino brand batteries. But they are not very much satisfied with the packaging and

outlook of the batteries.

Q.3. Rank the following with respect to their product quality.

Ranking w.r.t. product quality

0

10

20

30

40

50

60

70

Nippo Novino BPL Geep Eveready

I

II

III

IV

V

No reply

From the responses we got the from the customers interviewed, we inferred

that in the Baroda region Novino brand of batteries enjoy the top position followed by

Eveready, BPL, Nippo and Geep in the same order.

Q.4. How important is manufacturing date to you?

Importance of manufacturing date

4%3.8%

29.1%

63.1%

Important OK Not important No reply

- 49 -

Around 60% of the customers say that the manufacturing date is important to

them and other 40% say not that important. The customers who say that mnf. date is

important are mostly the educated lot. The later 40% are either housewives and

uneducated lot or the ones who change batteries very frequently.

Q.5. Have you ever seen Novino Batteries advertisement? If yes, give your opinion

about it.

Awareness about advertisement

1.1%

54.8%

44.1%

Yes No No reply

Response about advertisement

5.54%4.61%

47.44%

42.41%


Only 55% of the customers have seen the Novino batteries advertisement and

45% of them have not seen. That is because MLBI does not come up with their

advertisements frequently. MLBI manufactures batteries mostly for special clients or

- 50 -

for the rural areas. So the need does not arise to go for advertisements except some

banners and hoardings.

Q.6. Do you have any problem with Novino batteries?

Problem with Novino battery

1%

83.6%

15.4%

Yes No No reply

Majority of the customers never faced any problem with the Novino brand

batteries and that is because MLBI makes sure that the whole stock is inspected 100%

before dispatch. The 16% those who face problem are those who does not follow the

instructions mentioned on the package.

Q.7. If any problem is faced, what type of problem is it?

Type of problem faced

11.13%

32.46%

9% 22%

34.41%

Leakage Dead cell Rusted Short life No

- 51 -

Causes of problems: 1) Leakage: if the batteries are left unused in the appliances for

longer period any battery is tend to leak due to continuous flow of

electric current. 2) Dead Cell: if the batteries are placed in opposite directions even

for a second there will definitely be a short circuit resulting into dead cells. 3) Short

Life: each kind of battery is meant for some specific purpose. If a low power battery

is used in a heavy duty appliance, it will not perform for more time. 4) Rusted: if the

batteries are stored in a moist place either by the retailer or by the customer, the

batteries are bound to get rusted. These are the reasons why customers face problem

with the batteries.

Q.8. Did you inform the retailer?

Whether informed the retailer

42.85%

56.49%

Yes No

Around 43% of the customers who faced problem with Novino batteries never

bothered to inform the retailer about the problem. The customers belonging to this lot

are mostly students who are generally careless/irresponsible. Remaining 57% of the

problem-faced customers inform to the retailer.

- 52 -

Q.9. Did you get it replaced? If yes, what is the duration of replacement?

Whether got replacement

51.5%

48.5%

Yes No

Duration of replacement

53%

47%

0%0%

Immediately Within a week

Within a month More than a month

About 51% of the problem faced customers get the batteries replaced. Others who do

not get replaced are those who faced the problem due to their own negligence. The

customers who get replacement get it either immediately or within a week, when the

S.R. visits.

Q.10. Do you recommend others to buy Novino batteries?

Whether recommend Novino batteries to

others

54.4%

43.2%

2.4%

Yes No No reply

- 53 -

More than half of the respondents recommended others to buy Novino

batteries.

Distribution of respondents according to age and occupation

Distribution of respondent according to age

56.5%

7.4%9.4%

26.4%

< 20 21-35 36-50 51-above

Distribution according to occuption

21.7%

20%

34.5%

23.8%

Student Self employed Service Business

- 54 -

CONCLUSIONS

The data analysis and its interpretation lead to the following conclusions:

From the survey of Customer

Out of the total respondents surveyed, majority are from the service class and

majority of the respondents say that Novino Batteries are always available at

their nearest store, which gives an indication that the distribution channel is

very strong.

Majority of the respondents are satisfied with the life span, power and leak

proofness of the Novino batteries but they feel that packaging and outlook of

the product are not up to its brand image.

As we are talking about the preference, the first preference goes to Novino

followed by Eveready, BPL, Nippo and lastly Geep, which reveal that when

customer goes for purchasing a battery, their first preference is Novino, but in

case of non-availability of Novino batteries they go for other brands.

More then ¾th of the respondents feel that manufacturing date is important for

them. As purchasing decisions are generally made by students and housewives

(which are included in self-employed class), manufacturing date is more

important to them compared to service and business class.

More than half of the respondents haven’t seen the advertisement and of the

remaining who has seen the advertisement many are not satisfied with it.

Majority of the respondents don’t have any problem with Novino batteries.

Very few respondents who have problem with Novino batteries are those who

do not follow the instructions printed on the package.

Out of those few respondents, who faced problems with Novino batteries,

major problem is short-life and leakages.

Almost 50% of those who faced problem with Novino batteries inform the

retailer about the problem and the least interested category opted for

replacement is of students.

- 55 -

Out of which who inform the retailer almost 55% of them got replaced their

batteries. Out of these 55%, most of them get immediate replacement and the

rest get it within a week.

More than half of the respondents said that they would recommend others to

buy Novino batteries.

From the survey of Dealer

Majority of the dealers get the delivery of Novino Batteries in time. All types

of batteries are available to P&G and electrical Shops whenever they require

as most of the sales are from these shops whereas medical shops and photo

studios are not visited for batteries in particular by the customers.

As P&G and electrical shops purchase in bulk quantities and also frequently,

the salesman maintains a good relationship with these shops. So there is a

good response from these shops towards SR’s visit compared to photo studios

and medical shops.

Also SR visits only selected shops and drops out few shops, which are also

located in the same vicinity. As well as SR doesn’t take the pain to visit new

openings/outlets. Therefore we can conclude that the distribution channel is

successful in retaining old outlets but at the same time they should target new

outlets too.

Most of the dealers feel that the profit margin is not satisfactory.

Majority of the dealers are satisfied with the companies credit policy.

Majority of the dealers are aware of the replacement policy and are also

satisfied with it. Those who are not aware of the replacement policy, is

because they never faced any replacement problem. But at the same time 7 to

9 % are not satisfied with the replacement policy.

Majority of the dealers are not happy with the sale promotion activities, POP

material and advertisements but at the same time they feel that the quality,

packaging and off-take of Novino brand batteries are satisfactory.

- 56 -

P&G and electrical shops are satisfied with the company’s involvement

whereas medical, photo studios & other shops are less satisfied with the

company’s involvement.

- 57 -

RECOMMENDATIONS

PRODUCT: -

1. Outlook of batteries need to be more attractive.

2. There is a need to enter new product line such as Rechargeable Batteries.

3. Regular R & D should be there for continuous improvement in quality and

services.

PRICE: -

1. Price should be competitive as more and more competitors are entering

into the market and are offering their products at a lower price.

PLACE: -

1. Distribution channel should be made stronger by capturing new outlets in

and around the city.

2. There should be a regular visit to each and every outlet from company’s

representative every month.

PROMOTION: -

1. As far as advertising is concerned, it should be educating the customers so

that they can understand the usability of the product accordingly.

2. Usually customers are not brand loyal in case of secondary products like

batteries. So there should be some reminder advertisements from time to

time and POP material should be available at all the outlets.

OTHERS: -

1. Replacement policy should be improved

2. Credit period shouldn’t be volatile

- 58 -

LIMITATIONS

I had to work under several constraints and limitations. Some of the key limitations

are:

The survey and research has been done only in Baroda city and Halol,

therefore the results show the market position of Baroda an Halol only but

results cannot be considered as representative of whole of Gujarat.

The sample size of the Baroda city and Halol region taken was small,

therefore it can be said that the chosen sample is not the representative of the

whole population and this hindered quantitative research.

Out of the whole research and analysis, only few major dry cell battery

brands could be highlighted, leaving aside the medium and small-scale dry

cell battery manufacturers.

The questionnaire mostly contained multiple-choice questions. Therefore

many respondents did not give a proper thought before up the questions, and

some even ticked things, which were not applicable. Therefore all this

increased the bias.

- 59 -

BIBLIOGRAPHY

BOOKS:

KOTLER PHILIP, MARKETING MANAGEMENT, PEARSON

PUBLICATION, EDITION 11TH.

BERI G. C., MARKETING RESEARCH, EDITION 2002.

MALHOTRA NARESH, MARKETING RESEARCH , PEARSON

PUBLICATION, EDITION 2003.

JOURNALS AND BROCHURES OF MLBI.

WEBSITES:

www.novino-batteries.com

www.indiainfoline.com

Search engines:

http://www.google.com

http://www.search.com

http://www.novino-batteries.com/

- 60 -

ANNEXURES

The following important annexure relevant to this study are enclosed here with:

1) Questionnaires

2) Cross tabulation of the study

PERCEPTION OF DEALER AND CUSTOMER

Education

dry cells batteries

dry cell batteries industry

worldclass batteries

best batteries

matsushita electric

lakh pieces of dry batteries

panasonic alkaline batteries

dry cell battery unit