51535679 Voltas Mktg Project Report PDF

Preview

Summary

Voltas...

Description

Voltas – Marketing Project Report

Voltas Air Conditioner

Project Report by: Gautam Gulati (219) Jain Avi Dinesh (222) Keyoor Prashant Diwaker (224) Monica Virbhan (227) Upasana Singh (265) Urooj Ansari (266) Mohit Motwani (270)

Group 3, PGDM (IB) 2009 -11

Page 1

Voltas – Marketing Project Report INDEX

S. No

Topic Covered

Page No.

1

Background of Study

4

2

Objective

4

3

Scope

5

4

Methodology

5

5

Description of current situation – Company

6

8

Selection of samples and data collection - customers

12

9

Data Analysis and findings – customers

17

10

Selection of samples and data collection - Distributors

24

11

Data Analysis and findings – Distributor s

26

12

SWOTAnalysis

29

13

Marketing Analysis

30

14

Marketing Strategy

33

15

Market Potential

35

16

Limitations of the project

36

17

Conclusion

36

18

Bibliography

37

Group 3, PGDM (IB) 2009 -11

Page 2

Voltas – Marketing Project Report

ACKNOWLEDGEMENT

A work is never a work of an individual. We owe a sense of gratitude to the intelligence and co-operation of those people who had been so easy to let us understand what we needed from time to time for completion of this exclusive project. We want to express our gratitude towards Prof. A. K. Biswas, Marketing Department, BIMTECH, Greater Noida for giving us an opportunity to do this project. Last but not the least, we would like to forward our gratitude to our friends & other faculty members who always endured us and stood by us and without whom we could not have envisaged the completion of our project.

Group 3, PGDM (IB) 2009 -11

Page 3

Voltas – Marketing Project Report

BACKGROUND OF STUDY This study has been done as part of the project work for Marketing Management II course. The study is majorly focused on developing a sound understanding of various aspects of Marketing Management. For this we have taken up one of the leading Air Conditioner Brand Voltas. The reason why we chose this particular company in specific is that •

Voltas is closely related to one of the oldest Indian Industry, Tata

•

Air Conditioner market is having huge demand in India

•

Voltas has launched products for different customer segments

Objective:As part of this project, we will be concentrating our analysis on the following focal points

1. Study Customer Behaviour – Understanding the factors responsible for customer buying behavior. 2. Marketing Strategy of Voltas – Understanding the Marketing plan of Voltas. 3. Analysis of Market Share of Voltas– To study and analyze the annual and financial growth reports of Voltas Co. 4. Study of Customer Segmentation – To study the products of Voltas with respect to the Segmentation of Customer over Family Size, Income, Price, Features etc. 5. Study of Product Differentiation – Variants of Products offered by Voltas Co. 6. Competition faced by Voltas – Analysis of the domestic competitors for Voltas. 7. External Environment of Voltas – Analysis of the Air Conditioner Industry. We intend to run a customer survey, to find out the customer and distributor perception about Voltas.

Group 3, PGDM (IB) 2009 -11

Page 4

Voltas – Marketing Project Report

Scope:As part of this project we have limited ourselves to study the marketing strategy of Voltas Air Conditioners only. We have studied the different brands of AC products being produced by Voltas. For this we have done a consumer survey within the domestic boundary of our college students and friends and families outside.

Methodology:The sources used for our study are as follows: •

Primary data o A consumer survey was conducted with the help of questionnaires across our colleagues within the campus and friends and family members. o A set of questionnaire survey was done with the Distributors and local retailers of AC’s

•

Secondary data o We have referred to magazines and similar resources at our library to collect various data o We have referred to the home page of Voltas for current information on products and financial report

Group 3, PGDM (IB) 2009 -11

Page 5

Voltas – Marketing Project Report

DESCRIPTION OF CURRENT SITUATION:1. Company – Voltas Voltas is among India's leading air-conditioning, refrigeration and engineering services companies. Set up in 1954, its core competencies lie in air conditioning and cooling appliances and services. Voltas is India's largest supplier of engineering products and services for the textile machinery sector and is a major manufacturer of forklift trucks. It provides solutions in turnkey pumping projects for water, effluent and sewage treatment, and water pollution control. The company has ISO 9001-2000 certification and has executed projects in the Middle East, Southeast Asia, Central Asia, Africa and Europe. The company mainly operates in the following areas: •

Heating, ventilation and air-conditioning (HVAC) solutions: Includes the entire range of mechanical, electrical and plumbing services for a diverse range of applications, spanning office complexes, airports, malls, mercantile ships, atomic energy plants, IT parks, hospitals, etc.

•

Cooling appliances: Design, manufacture and marketing of a range of air conditioners and water coolers for household and institutional use

•

Engineering products and services: Design, sourcing, installation, training, maintenance, etc of engineering products and services in the fields of textile machinery, machine tools, mining and construction equipment and materials handling equipment.

•

Chemicals: Import and distribution of an array of industrial, specialty and pharmaceutical chemicals, industrial plastics and bulk drugs. The company also exports gelatine, ultramarine blue and agrochemicals.

Group 3, PGDM (IB) 2009 -11

Page 6

Voltas – Marketing Project Report JOINT VENTURES, SUBSIDIARIES, ASSOCIATES Voltas's subsidiaries include Metrovol FZE, VIL Overseas Enterprises BV, Voice Antilles NV, Weathermaker, Jebel Ali (Dubai), Simto Investment Company and Auto Aircon (India). LOCATION Voltas has its head office in Mumbai and regional offices in several major cities in India. Its overseas offices are in Abu Dhabi (UAE), Hong Kong and Singapore. The company has factories at Thane (Maharashtra) and Pantnagar (Uttarakhand) in India.

Group 3, PGDM (IB) 2009 -11

Page 7

Voltas – Marketing Project Report Air Conditioner Industry

Thanks to the fabled Indian middle-class, the air-conditioner market is hooting up. An inordinately hot summer has convinced the people the comfort of an air-conditioner and a large number appears to have decided to take one home this year. Indeed, in the last few the years, the demand for air-conditioners from the household sector has been growing rapidly. Still, the demand growth is particularly noticeable, and was also the most significant change in the industry during this period.

According to some industry estimates, growth in volume terms has been 45-50 per cent this fiscal. But official statistics underestimate this and even report a decline in production. Nevertheless, by all accounts, including a study by the Confederation of Indian Industry (CII), there has been a noticeable jump in the demand for air-conditioners from the household segment. After several years of relatively modest growth, which was totally at variance with the latent potential of the product, the sharp growth in demand the summer past was very welcome for air-conditioner companies in many respects. One, it relatively reduced their dependence on the corporate sector which is still the major demand driver. Corporate traditionally accounted for about 60 per cent of the total demand for airconditioners. But the burgeoning demand from the household segment could level the ratio in the near future

Group 3, PGDM (IB) 2009 -11

Page 8

Voltas – Marketing Project Report One of the significant factors influencing the fortunes of the industry is the taxation structure. The industry has come a long way from the time when the excise duty structure favored only the unorganized sector. The steady fall in the excise rate in the 1990s helped the organized sector cope with the competition from the unorganized sector on more favorable terms. Still, the unorganized sector continues to meet a sizeable proportion of the demand for non-ducted products.

There was a significant change in the excise duty structure in 2000. The rate was raised from 30 per cent to 32 per cent and this was expected to adversely impact the industry. However, the shift to a maximum retail price based system for the levy of excise appears to have helped the manufacturers. In the MRP-based system, an abatement of around 40 per cent was provided. This ensured that the impact of the increase in excise was minimal if not positive. Another major fiscal change is the removal of quantitative restrictions on imports. Imports are, however, not all that competitive considering the Customs duty structure. An import duty of 44 per cent along with a countervailing duty, which is equivalent to the excise duty, is a large enough protection for the domestic companies.

Growth of AC market The demand for non-ducted products grew steadily in the latter half of the 1990s. The demand for mini-splits has grown at a higher rate compared to window ACs because of the lower base. The demand switch from mid-sized ducted products, such as packaged ACs or ducted splits, to mini-splits is also one of the reasons for the larger growth rates in the latter segment. Another major reason for the growth in demand was the increased attention this product category has attracted in the recent past. Prices of air-conditioners dropped sharply in the past few years because of competition. Most established players upgraded their manufacturing facilities, while fresh capacities were created by companies such as Matsushita (National brand). The marketing and advertisement spend by companies has also been on the rise. Group 3, PGDM (IB) 2009 -11

Page 9

Voltas – Marketing Project Report

With such investments flowing into building both the product and the brand, the expansion of the market was inevitable. As seen with other consumer durables, in the initial years of increased intensity of competition, both existing and new players invest more cash. This leads to a drop in prices, fuelling demand and the result is a much larger market. And the non-ducted segment has attracted a lot of players in the last few years. The latent longterm demand potential from Indian households has led to a number of multinational companies making a beeline to set up base in the country. Major players in this product category are Carrier Aircon, Voltas and Blue Star. Brands such as Hitachi, Videocon and Godrej also have a sizeable presence. Among the recent entrants, the Korean brands such as Samsung and LG have been able to make an immediate impact. Other brands that have positioned themselves for a share in this fastgrowing market are National, Fuji General and Daikin. On a much smaller scale, Whirlpool and Electrolux have entered the market to cater to household demand.

Initially, the entry of new players did have an adverse impact on the established players -especially Voltas and Carrier Aircon. The reduced sales of window ACs by Carrier Aircon and Voltas in 1999-2000 compared to 1998-99 is testimony to the adverse impact caused by the entry of the new brands, especially Samsung and LG. However, since the beginning of 2000-01, it does appear that the established players -- Carrier Aircon and Voltas -- have started to hit back. They may have even picked up some of the market shares they lost in the earlier period. Again, initially, margins of established companies suffered as larger outlays in selling and distribution failed to translate into superior sales growth. The trend now appears to have been reversed.

Group 3, PGDM (IB) 2009 -11

Page 10

Voltas – Marketing Project Report Major Competitors Voltas Air conditioners faces fierce competition with the following brands of air conditioners i.

LG

ii.

Samsung

iii.

Videocon

iv.

Hitachi

v.

Carrier

vi.

Whirlpool

Group 3, PGDM (IB) 2009 -11

Page 11

Voltas – Marketing Project Report

SELECTION OF SAMPLES AND DATA COLLECTION SAMPLING METHOD Random Sampling method

SAMPLE SIZE 50 Customers & 5 Dealer/Distributors

RESEARCH TOOL Questionnaires

RESEARCH AREA We have taken response from consumers using a set of questionnaire. Our target responders were our colleagues, friends and family members.

Group 3, PGDM (IB) 2009 -11

Page 12

Voltas – Marketing Project Report The following are the set of questions which we used for extracting information from the responders.

Customer Response for Voltas Airconditioners This set of questions are used for academic project to study the Voltas Airconditioner Market * Required

What is your age group? * 15 - 25 26 - 35 36 - 50 above 50

How many members are there in your household? less than 3 3-6 6-9 more than 9 What is your family Annual Income Scale? less than 5 lac 5 lac - 10 lac 10 lac - 20 lac more than 20 lac

Group 3, PGDM (IB) 2009 -11

Page 13

Voltas – Marketing Project Report How many AC's do you have in your household? 0-1 2-4 4-6 more than 6 Which Brand(s) of AC do you have? If you have given 1 or more in previous response Voltas LG Samsung Hitachi Videocon Whirlpool Other: Which brand of AC have you recently purchased Voltas LG Samsung Hitachi Videocon Whirlpool Other: What are the factors for selecting a Brand Brand Popularity Advertisement Current trend Finance option Brand Image

Group 3, PGDM (IB) 2009 -11

Page 14

Voltas – Marketing Project Report Other: Where do you prefer to purchase Air conditioner Exclusive Showroom Multi Brand Store Local Retailer Non Branded Retailers

What are the influences for purchasing AC Friend Family Price Features Looks Other:

When do you prefer to purchase Air Conditioner? Pre Summer Peak summer Off Season Festive Season

Group 3, PGDM (IB) 2009 -11

Page 15

Voltas – Marketing Project Report How do you rate the factors for Air conditioners1 - most Important | 5 - Least Important 1

2

3

4

5

Power Consumption

Maintenance

On Call Service

Warranty

Size

Which brand tagline says "India ka Dil, India ka AC" LG Samsung Voltas Videocon Whirlpool Hitachi Other:

Group 3, PGDM (IB) 2009 -11

Page 16

Voltas – Marketing Project Report

DATA ANALYSIS AND FINDINGS:Based on the response of the survey conducted within the consumers, the following trend came up

How many members are there in your household? less than 3

13%

3-6

81%

6-9

4%

more than 9

2%

What is your family Annual Income Scale? less than 5 lac

22%

5 lac - 10 lac

50%

10 lac - 20 lac

20%

more than 20 lac

8%

How many AC's do you have in your household? 0-1

40%

2-4

46%

4-6

12%

more than 6

Group 3, PGDM (IB) 2009 -11

2%

Page 17

Voltas – Marketing Project Report

Which Brand(s) of AC do you have?

Voltas

19%

LG

52%

Samsung

25%

Hitachi

17%

Videocon

8%

Whirlpool

6%

Other

15%

People may select more than one checkbox, so percentages may add up to more than 100%.

Which brand of AC have you recently purchased Voltas

17%

LG

38%

Samsung

17%

Hitachi

9%

Videocon

6%

Whirlpool

2%

Other

Group 3, PGDM (IB) 2009 -11

11%

Page 18

Voltas – Marketing Project Report

What are the factors for selecting a Brand

Brand Popularity

35%

Advertisement

4%

Current trend

14%

Finance option

37%

Brand Image

49%

Other

24%

People may select more than one checkbox, so percentages may add up to more than 100%.

Where do you prefer to purchase Air conditioner Exclusive Showroom

13

27%

Multi Brand Store

26

53%

Local Retailer

9

18%

Non Branded Retailers

1

2%

What are the influences for purchasing AC

Group 3, PGDM (IB) 2009 -11

Friend

6%

Family

19%

Price

27%

Features

44%

Looks

0%

Other

4%

Page 19

Voltas – Marketing Project Report

When do you prefer to purchase Air Conditioner Pre Summer

27

52%

Peak Summer

8

15%

13

25%

4

8%

Off Season Festive Season

How do you rate the factors for Air conditioners - Power Consumption 1

63%

2

17%

3

10%

4

4%

5

6%

How do you rate the factors for Air conditioners - Maintenance 1

Group 3, PGDM (IB) 2009 -11

31%

2

35%

3

19%

4

12%

5

4%

Page 20

Voltas – Marketing Project Report

How do you rate the factors for Air conditioners - On Call Service 1

23%

2

27%

3

27%

4

12%

5

12%

How do you rate the factors for Air conditioners - Warranty 1

29%

2

35%

3

8%

4

22%

5

6%

1

19%

2

13%

3

35%

4

15%

5

17%
...