A Project Report On

“To Measure Market Potential for Greaves Gensets in Pune City”

For “Greaves Cotton Limited (Diesel Engines Unit)”

By

Naresh B. Mahajan

Under the Guidance of

Prof. Mahesh Gadekar

Submitted To

University Of Pune

In partial fulfillment of the requirement for the award of the degree of Master of Business Administration (MBA)

Through

Vishwakarma Institute of Management

Pune-48

ACKNOWLEDGEMENT

This project has been made possible through the direct and indirect cooperation of

various persons for whom I wise to express my appreciation and gratitude.

I express my deep respect and gratitude from the care of my heart to my Project

Leader at Greaves Cotton Ltd., Mr. Shashikant Singh for his continuous help,

guidance and co-operation. He always extended his help whenever required.

I am deeply obliged to my Project Guide Mr. Mahesh Gadekar for his valuable

suggestions and expert guidance in the subject and taking keen interest in all aspect of

bringing this project to almost standard.

I express my gratitude towards our IT Professor Mr. Vishal Soni of VIM.

It is with a profound sense of gratitude that I acknowledge the constant help and

encouragement from our Director Dr. Sharad Joshi.

I am extremely grateful to all maintenance managers of different companies for their

co-operation. I also like to thank my friends for their help given to me during my

project.

Naresh B. Mahajan

2

CERTIFICATE

To Whomsoever It May Concern

This is to certify that Mr. Naresh B. Mahajan is a bonafide student of our institute.

He has successfully carried out his summer project titled “To Measure Market

Potential For Greaves Gensets in Pune” for Greaves Cotton Ltd. This is the

original study of Mr. Naresh B. Mahajan & important sources of data used by him

have been acknowledged in his report.

The report is submitted in partial fulfillment of two years full time course of Masters

in Business Administration (2006-2008) as per the rule.

Prof. Mahesh Gadekar Dr. Sharad Joshi

(Project Guide) (Director)

(Vishwakarma Institute Of Management)

3

4

INDEX

SR.NO. TITLE PAGE NO.

01 Executive Summary5

02 Company Profile6

03 Objectives of the Study21

04 Research Methodology24

05 Data Analysis29

06 Findings45

07 Suggestions & Conclusions46

08 Limitations48

09 Bibliography52

EXECUTIVE SUMMARY

5

This project was carried out at Greaves Cotton Ltd, Chinchwad, Pune. The

project title is Market Potential of Gensets in Pune. The duration of the project was

two months from 1st June 2007 to 31st July 2007. My project work was to find out

market potential, market positioning of greaves gensets and find new business

opportunities.

The present scenario of gensets and its demands are soaring rapidly. With the

emphasis on work continuity and its flow, intervention due to lack of electricity is not

excused. The problem with the Maharashtra State Electricity Board still continues and

the government load shedding plans for power crisis is a big problem.

The company manufactures wide range of diesel engines. The Greaves Oil

Engines are famous worldwide for their quality. Although greaves is established since

so long, it isn’t the numero uno leader. Its market share is less in the 100kva range,

where Cummins is the leader. But it has a good share in the more than 100kva range,

yet over here KOEL and Cummins surpass Greaves.

All data that was required for this project has been through interviews and

questionnaires which is the primary source. Then the secondary data collected was

through internet, magazines etc.

Greaves Cotton Ltd produces the best diesel engine which is superior in many

aspects, yet it isn’t in the usual run of the mill market. The marketing department isn’t

delivering up to its required potential. A radical change is needed to overcome

marketing deficiency. Then again aggressive and widespread advertising needs to be

done, thereby taking corporate brand image from a mediocre to a class apart one.

COMPANY PROFILE

6

HISTORY

The history of the Greaves Cotton Ltd. goes back to 1859, when Mr. James

Greaves had set up shop in Broach (Gujarat) under sole proprietorship. In 1868, Mr.

James Greaves and Mr. George Cotton joined forces and took their respective

surnames to form the partnership firm of Greaves Cotton and the company on 29th

march, 1922 was incorporated into Ltd. Concern.

After independence in 1947, the company was brought over by Lala

Karamchand Thapar.In 1955; the plant was shifted to Pune when two companies

started manufacturing of high speed inline vertical YD series engines in 1961. It also

started YW series engines in 1971 in full flow power requirements of market.

The company has established its new plant in 1981, to manufacture Greaves

MWM diesel engines, in which it has got technical collaboration with Morton Works

Mannheim AG Germany. Since 1981, 232 series are being manufactured and

subsequently in 1981, it has started with 234 series engines. Advantages seen is high

power to weight ration compact full, efficient etc. Thus the name Greaves Ltd. was

given in 1993 and today the Greaves forms a significant part of the Thapar Group of

Companies

ABOUT DEU

Diesel Engine Unit (DEU), formerly known as Ruston and Hornsby Ltd. is

located at Chinchwad, Pune- 411019

M/S Ruston and Hornsby was incorporated in 1929 as a Pvt. Ltd. Company

and was jointly promoted by M/S Greaves Cotton and Ruston. The company was first

established as a pilot plant at Sion road, Bombay where it commenced Ruston slow

speed horizontal diesel engine.

7

In 1955 the plant was shifted to Pune when two companies “Greaves Cotton”

and “Ruston and Hornsby”, Lincon, UK, collaborated with technical know how

Ruston and Hornsby Ltd.

Today the Greaves forms a significant part of the Thapar Group Of Companies

PRODUCT RANGE

The company manufactures wide range of diesel engines. The Greaves Oil

Engines are famous worldwide for their quality. At present following type of engines

are manufactured.

YD/YW series of engines are manufactured in the range of 10 BHP to

175BHP.

‘D’ series engines.

PHOTOGRAPHS OF VARIOUS TYPES OF GENSETS

8

GREAVES MISSION

9

To manufacture and market a wide range of high quality products, services

and system of world class technology to the total satisfaction of the customer and

domestic and overseas market.

HRD philosophy is to create an environment of openness and trust which

individuals are provided with opportunities and training to function the best of

intellectual reward in keeping with their performance and help Greaves to achieve its

immediate and long term corporate objectives.

QUALITY POLICY

The quality policy of the Greaves company shall be to design, manufacture

and market engineering products at competitive costs of such quality, which results in

total customer satisfaction and product leadership.

CORPORATE OFFICE

The company has its corporate office at Mumbai, which has the corporate staff

department such as Managerial, Human Resource Department, Accounts and

Taxation, corporate planning and development, commercial, Technology and

communication.

BUSINESS CENTERS

10

The company has four business centers in India.

1 Mumbai Head office of Western Region2 New Delhi Head office of Northern Region3 Kolkatta Head office of Eastern Region4 Chennai Head office of Southern Region

BRANCHES AND OTHER OFFICES

Ahmedabad Bangalore Bhopal Bhubaneshwar Gandhinagar Cochin Coimbature Goa GuwahatiHyderabad Jaipur LucknowNagpur Ranchi Manchenster U.K. Moscow(Russia) Singapore

THE BUSINESS GROUPS

The company has four business groups, consisting of manufacturing and

marketing set up namely –

1. Power Generation

2. Agro Equipments

11

3. General Engineering

4. Industrial Product

The company has also international operations and integration system

division.

CUSTOMER SERVICES

The company is mainly supplying engines for the military and the railways.

This order is supplied by the company in its own name bit with the contracts with the

Mahindra OVEANS for the Trailer and Kirloskar for the Alternator.

The company has exported its product to the following countries,

1. UK

2. Tanzania

3. Australia

4. Kenya

5. Lebanon

6. Jordan

7. Peru

8. Mauritius

9. Philippines

10. Singapore

11. Malaysia

12. Malawi

12

13. South Vietnam

14. Nigeria

DEPARTMENTS AND FUNCTIONS

1. Personnel Department And Industrial Relation

I. Manpower planning for bargainable and non bargainable employees.

II. Recruitment

III. Trade Union

IV. Negotiations and collective bargaining

V. Welfare committee

VI. Safety

VII. Agreements

VIII. Court proceeding

2. Commercial Department

I. To receive information regarding all requirements of material and

equipment of various department.

3. Production Department

I. Production planning and control

II. Plans production programme, preparing schedules

III. Control issues of workshop

13

4. Quality Control Department

I. Inspect the work at various station

II. Inspect while assembly and testing.

5. Industrial Engineering And Testing

I. To set various working standards

II. Cost optimization

III. Work strictly

IV. Plan layout.

COMPANY MANAGEMENT:

Board of Directors

Mr.Karan Thapar

(Chairman)

↓

14

Mr.Praveen Sachdev

(MD And CEO)

↓

Mr. Sukumar Mukhopadhjay

↓

Mr.Vijay Rai

↓

Mr Brij Mohan Thapar

↓

Mr Gautam Thapar

↓

Dr Surinder Kapur

↓

Dr Suresh Talwar

The ranges of dg sets are as follows:-

UnitsProducts Range Applications /

IndustryDiesel

Engines

Unit,

Pune

Diesel

Engines

Air Cooled

10-110 Hp

Water Cooled

: 10-1000 Hp

Winches,

Compressors,

Pumpsets, Fire

Fighting Pumps,

Construction

15

Equipments,

Industrial,

Locomotive, Marine &

Defence Vehicles

Gensets7.5 - 520

kVA

DG Set with SRCP /

AMF / Synchronising

Panel. Also available

Greaves Whispower

Acoustic D6 Sets,

Trailer Mounted Sets.Dual Fuel

Engines /

Gensets

30 - 400 kVAEngine / Genset

Working on Various

Fuels Like natural

Gas, Producer Gas &

Bio-gas

Gas

Gensets

25 kVA, 37.5

kVA, 125-

300 kVA

Foundry

Unit,

Pune

C.I. & S.

G. Iron

Castings

Machine

Molding :5 - 100 Kg. Per Piece

Brake Drums,

Axle, Housings,

Wheel Hubs,

Differential

Cases, Cylinder

Heads, Crank

Cases, Exhaust

Manifolds & Gear

Cases.

Hand

Molding :50 - 500 Kg. Per Piece

Shell

Molding :5 - 15 Kg. Per Piece

LITERATURE REVIEW

Generator converts the mechanical energy into electrical energy by using

different fuels. Generator gives economical, uninterrupted, reliable power, wherever

and whenever you need it to keep working in the different industries without

interruption. Due to the high growth of industries and scarcity of the electric power,

many industries require standby power generation unit to work 24*7 without any

interruption. So to fulfill this requirement generator is the technically perfect solution

with best fuel efficiency and emissions.

16

The generators are classified on the basis of use of fuel like:

Petrol generator

Diesel generator

Gas generator

Dual fuel generator

Petrol generator is not preferred in our country because the price of the petrol

is much high, so the use of petrol generator is much less. Gas generator uses different

types of gas as fuels like LPG, natural gas and propane. But still it is not much in use.

Also duel fuel generator is not in use. Diesel powered generator sets remain the

number one choice for standby and emergency power systems worldwide. Able to

start and assume load in less then 10 seconds and price of diesel is also less compared

to petrol.

There are many companies that make diesel generators. Some of major companies in

India are:

Kirloskar

Cummins

Greaves

Caterpillar

The generators are used in industries, agriculture, construction, multiplexes,

power generation and so on. Diesel generator has two parts one is engine and second

17

is alternator (Electric). Mainly generator is known by an engine of the make the

selection of the diesel generator is done on different criteria like: range of the

generator, generators come with different KVA rating like 15 KVA, 20 KVA, 25

KVA, 30 KVA, 35 KVA, 40 KVA, 45 KVA, 50 KVA, 62.5 KVA, 75 KVA to 2000

KVA, 3000 KVA and 6375 KVA and so on. The diesel generator is also selected on

the base of starting system like automatic or manual diesel generator. Automatic

diesel generator will start automatically when in case of manual diesel generator,

when power is off you have to start manually like you start your car. Also there are

many other criteria like fuel efficiency, emissions, product features etc.

Total Market Potential

Total market potential is the maximum amount of sales that might be available

to all the firms in an industry during a given period under a given level of industry

marketing effort and given environmental conditions. A common way to estimate

total market potential is as follows: Estimate the potential number of buyers times the

average quantity purchased by a buyer times the price. If 100 million people buy

books each year, and the average book buyer buys three books a year, and the average

price of a book is $10, then the total market potential for books is $3 billion (100

million _ 3 _ $10). The most difficult component to estimate is the number of buyers

in the specific product or market. One can always start with the total population in the

nation, say 261 million people. The next step is to eliminate groups that obviously

would not buy the product. Let us assume that illiterate people and children under 12

do not buy books, and they constitute 20 percent of the population. This means that

only 80 percent of the population, or approximately 209 million people, would be in

the suspect pool. We might do further research and find that people of low income

18

and low education do not read books, and they constitute over 30 percent of the

suspect pool. Eliminating them, we arrive at a prospect pool of approximately 146.3

million book buyers. We would use this number of potential buyers to calculate total

market potential.

Area Market Potential

Companies face the problem of selecting the best territories and allocating

their marketing budget optimally among these territories. Therefore, they need to

estimate the market potential of different cities, states, and nations. Two major

methods of assessing area market potential are available: the market-buildup method,

which is used primarily by business marketers, and the multiple-factor index method,

which is used primarily by consumer marketers.

Market Potential

It is an estimate of the maximum possible sales of a commodity, a group of

commodities, or a service for an entire industry in a market during a stated period.

It is the estimated size of total present or future market and alternatively, the

maximum share of a market which can be reasonably achieved during a defined

period.

Market Potential data measures the likely demand for a product or service in a county,

ZIP Code, or any other defined trade area. Businesses and other organizations use

Market Potential data to make decisions about where to offer products and services.

With Market Potential Data You Can

Optimize your merchandise mix

Invest marketing dollars more effectively

19

Develop successful advertising and marketing plans

Decide which expansions are most profitable

Why Use Market Potential Data?

Market Potential data helps companies understand, predict, and influence

consumer behavior by providing insight into areas with the highest growth potential.

This allows you to make informed decisions about products and services based on the

latest trends and consumer demand.

Customer satisfaction

Customer satisfaction, a business term, is a measure of how products and

services supplied by a company meet or surpass customer expectation. It is seen as a

key performance indicator within business.

In a competitive marketplace where businesses compete for customers,

customer satisfaction is seen as a key differentiator and increasingly has become a key

element of business strategy

Customer satisfaction is an ambiguous and abstract concept and the actual

manifestation of the state of satisfaction will vary from person to person and

product/service to product/service. The state of satisfaction depends on a number of

both psychological and physical variables which correlate with satisfaction behaviors

such as return and recommend rate. The level of satisfaction can also vary depending

on other options the customer may have and other products against which the

customer can compare the organization's products because satisfaction is basically a

psychological state, care should be taken in the effort of quantitative measurement,

although a large quantity of research in this area has recently been developed

20

Increasing competition (whether for-profit or nonprofit) is forcing businesses to pay

much more attention to satisfying customers

PROBLEM STATEMENT

1. To achieve a market share of 10% from the current 4% within a year’s time

with existing below 100KVA gensets and also improve the market share in the

above 100KVA gensets for Greaves Cotton Ltd.

2. Appropriate product positioning of Greaves gensets in the market needs to be

decided and done according to the needs and wants of the customer.

21

OBJECTIVES

1. To measure out the market potential.

Market potential for the gensets needs to be found out, thus benefiting the

company. Unless the market potential isn’t been rightly found and tapped, it can

be detrimental to the company.

2. To find out the needs of the customers.

Every customer has his needs which the company has to fulfill to provide

maximum customer satisfaction because customer satisfaction is very important.

3. To find out new business opportunities .

Finding new business opportunities is very important for any company for the

growth of his business and only then will the company prosper.

4. Market positioning of Greaves gensets

The market positioning for any company is highly important and that needs to

implemented

5. To find the obstacles and compare existing system used by the companies

There are always some obstacles, loopholes and drawbacks in any organization .

Hence these need to be found out and improved. Also the comparison of existing

system used by the companies is important.

22

SIGNIFICANCE

1. MARKET POSITIONING

The consumers of gensets are varied and diverse. Thus the wants, demands

and expectations from each are also varied. Still the product must be the first

and best choice for the customer, among similar products. Thus here, market

positioning is highly important.

The residential customers, who stay in these huge residential buildings,

give utmost importance to brand name. Hence such preference factors also

needs to be considered .

2. INTIMATE THE COMPANY ABOUT THE POTENTIAL MARKET

As electricity backup is almost indispensable in very every field, there is a

huge potential market for gensets. Its only that the type of genset required in

each case is different. The major buyers of gensets were the construction

companies, who required high KVA rated gensets, which is lucrative for

Greaves.

3. INVALUABLE SUGGESTIONS TO ORGANISATION REGARDING THE

MARKETING DEPT

The company needs to concentrate much more in their marketing section,

as their R&D is doing quite well. More attention needs to be given to

advertising and even brand awareness.

23

RESEARCH METHODOLOGY

Managers need information in order to introduce products and services that

create value in the mind of the customer. But the perception of value is a subjective

one, and what customer’s value this year may be quite different from what they value

next year. As such, the attributes that create value cannot simply be deduced from

common knowledge. Rather, data must be collected and analyzed. The goal of

marketing research is to provide the facts and direction that managers need to make

their more important marketing decisions. To maximize the benefit of marketing

research, those who use it need to understand the research process and its limitations.

24

Meaning:

Research means the process of getting knowledge and that can be carried out

either arbitrarily or in a systematic fashion. It is a purposive investigation.

Research process involves defining the problem, formulating the hypothesis,

organizing and evaluating the data, deriving inference and conclusion after

careful testing.

Definition:

According to Bery “A careful investigation or inquiry specially through search

for new facts in any branch of knowledge.”

Redman and mory defined research as “Systematized effort to gain new

Knowledge.”

Marketing Research vs. Market Research

These terms often are used interchangeably, but technically there is a

difference. Market research deals specifically with the gathering of information about

a market's size and trends. Marketing research covers a wider range of activities.

While it may involve market research, marketing research is a more general

systematic process that can be applied to a variety of marketing problems.

The Value of Information

Information can be useful, but what determines its real value to the

organization? In general, the value of information is determined by:

25

The ability and willingness to act on the information.

The accuracy of the information. The level of indecisiveness that would exist without

the information.

The amount of variation in the possible results.

The level of risk aversion.

The reaction of competitors to any decision improved by the information.

The cost of the information in terms of time and money.

The Marketing Research Process

Once the need for marketing research has been established, most marketing

research projects involve these steps:

1. Define the problem

2. Determine research design

3. Identify data types and sources

4. Design data collection forms and questionnaires

5. Determine sample plan and size

6. Collect the data

7. Analyze and interpret the data

8. Prepare the research report

For every comprehensive research, a proper research methodology is

indispensable and it has to be properly conceived. The methodology adopted by

me is as under:

Data to be collected

26

Data includes facts and figures, which are required to be collected to achieve the

objective of the project. In order to determine the current market size, potential

and market share of the Greaves Cotton Ltd., the information needed to be collect can

be classified into following two types-

Primary Data

The data that is collected at hand and for the first time or to particularly fulfill

the objective of the project and happen to be original in nature is known as the

primary data.

The primary data were collected through, project Managers, site managers, etc. and

managers of and site managers and survey was conducted through interview,

observation, and questionnaire prepared for them.

Secondary Data:

Secondary Data Secondary data are that type of data, which are already collected,

available, analyzed, or assembled by someone else. And need not to collected from

outside. These types of data were

a. Company profile

b. Product profile

c. Competitor knowledge

The aforesaid data were collected through Internet and company s financial

reports, newspapers, and interior products magazines.

Data Collection Method

For given project, the primary data was more significant. This type of

information gathered through survey technique, which is the most popular and

effective technique for correct data collection. The survey was completed with

27

the use of questionnaires and observations. There was questionnaire for survey

of Project Managers, Site Managers, etc.

a) Questionnaire for Project Managers, Site Managers, etc.

b) Observations

Dealers and retailers as the elements of channel of distribution are the most

significant for the success of a building material product; they were taken under

consideration as the samples for the survey. The questionnaire is present further

in the annexure.

Sampling

Sample is the small group taken under consideration from the total group. The

small group represents the total group, in the project the market segment, which

was ask to be studied was Pune market but there was a limitation of the

project to approach all the Project Managers, Site Managers, etc. of the city.

Calculation of sample size is based on random sampling technique for the

project & contact method is direct survey.

Sample Space - Pune Market

Samples - Project Managers, Site Managers, etc

Sampling Technique Random Sampling

Sample Size 45 Project Managers, Site Managers, etc.

Contact method Direct Survey

Pune more than 500 projects available but for the study of this particular

project, the above mentioned samples were selected because of the

constraints like geographical coverage, time frame of the project.

28

Data Evaluation

The extensive data collected through the questionnaires was evaluated to arrive

at the market size, market potential of the company. This

compilation was put into the charts for getting the information at a glance and

easy availability for ready reference.

SCOPE OF RESEARCH

1. Survey was limited to Pune only. Larger potential markets outside Pune

were untapped. Hence we need to explore untapped market.

2. Unawareness of genset is limited to handful of general public.

Importance of gensets needs to be created on a larger scale, thereby enhancing

the sales of gensets.

DATA ANALYSIS AND INTERPRETATION

Market share of different companies in diesel generator: -

29

MARKET SHARE OF VARIOUS COMPANIES IN GENSETS

01020304050

kirlos

kar

cum

mins

cate

rpilla

r

grea

ves

asho

k leyla

nd

rusto

n

kohle

r

detro

il

tope

el

eiche

r

fuji d

iesel

cham

p

omke

r pet

er

atlas

copc

o

COMPANIES

% S

HA

RE

IN

TH

E

MA

RK

ET

Kirloskar is the market leader for Diesel Generator sets with 46% of market share.

Cummins is at 2nd position in the Diesel Generator sets with 37% of market share.

Whereas Caterpillar & Greaves have very less market share as compared to Kirloskar

& Cummins.

Others are nowhere in the market as compared to Kirloskar & Cummins.

Categorization of the respondents

The respondents were from various sectors and the various sectors were categorized

as

30

1. Industry(mechanical)

2. Services(telecom ,banks etc)

3. Infrastructure and real estate buildings

4. Government/PSU/defense

5. IT infrastructure

In the industry, we had the various mechanical industries ,who were into hard core

metal forging ,grilling and so on .

In the service sector, we had the companies like banking, telecom etc and so on, but

IT isn’t been included here

Infrastructure and real estate buildings include all the various housing colonies and

real estate buildings that are booming in this city.

Govt. /PSU/defense include all the defense and government offices as their demand is

also quite high.

IT infrastructure is been taken as completely different sector because IT is a the most

booming sector in India, especially in Pune. Hence there are many IT buildings that

are coming up in various parts. Various multi nationals want to set up their firm here.

Nature of the demands

The demand for gensets were different from sectors and also the range of KVA was

different .

31

Thus the demand in a particular sector was less in particular sector i.e. the quantity of

demand was less, but the range of KVA was of high value. Similarly the quantity of

demand was more,but the range of KVA was high.

A sector like the real estate sector had the demand of a genset of less range, which

was always less than 100KVA .Then a sector like the IT sector always had the

demand of genset which had had a range of more than 100KVA. This is because in

the IT sector the back up of electricity is of utmost important. There are so many

computers in this particular IT company that if there is any electricity problem the

whole system will go haywire.

Division of range of gensets

The gensets have been divided into two ranges viz

Below the range of 100KVA and

Above the range of 100KVA.

The division has been done in such a manner because this range segregation helps to

distinguish properly the demand nature of the gensets. This range segregation helps us

to understand and study properly the demand nature.

Demand from each sector

32

We surveyed 45 respondents from various sectors in two months and each sector had

their respective demand of gensets. According to our study, we made the following

observations-

Below 100 KVA range

SECTOR Industry ServicesInfrastructure/

Buildings

Govt/

DefenseIT

DEMAND

IN NO.7 3 0 0 0

Above 100 KVA range

SECTOR Industry ServicesInfrastructure/

Buildings

Govt/

DefenseIT

DEMAND

IN NO0 4 10 5 21

Thus the demand of gensets below 100KVA is as follows:

33

Thus the demand for gensets above 100KVA range is as follows:

Total demand of the gensets according to various sectors is as follows:

No. of DG sets required

Industry7

Services3

IT0

Infrastructure/ Buildings

0

Govt/defense0

Industry

Services

Infrastructure/Buildings

Govt/defense

IT

Industry, 0

Services, 4

Infrastructure, 10

Govt/defense, 5IT, 21

IndustryServicesInfrastructureGovt/defenseIT

34

Industry, 7

Services, 7

Infrastructure, 10Govt/defense, 5

IT, 21

Industry

Services

Infrastructure

Govt/defense

IT

The above pie chart shows the overall demand of the gensets. This overall demand

includes both , the above 100KVA gensets and also the below 100KVA gensets.

The IT sector has the highest demand for the gensets, which is 21 in number. This is

because in the current scenario, there are many IT buildings coming up in the city and

thus there is huge demand of genset in this sector

The infrastructure/building sector also had a good demand, but all of them were below

100KVA gensets,which is 10 in number.

The industry,service and the Govt/defense sector had the demand of 7, 7 and 5

respectively.

The elements considered by respondents while buying gensets,as per the

questionnaire are:

35

Price

Brand Name

Fuel efficiency

Reliability

Durability

Ruggedness

Warranty/Services

Noise

All of the above factors are considered by any buyer while purchasing a genset. But

the big question that arises is that, what preference each buyer gives to each factor

while purchasing a genset.

Hence it is highly imperative that we need to find out which factor has the highest

preference by a buyer while purchasing a genset. Once we find the factors are

considered important by a buyer, the company can accordingly pay attention to these

factors.

Thus in this survey ,the respondents from various sectors were asked to rate a

particular factor. The rating scale had 4 as its highest point and 1 as its lowest point. If

a customer gave the highest preference to a particular factor while purchasing a

genset, then he would rate it as 4 out of 4.

The rating for the various parameters as per the questionnaire are as follows

36

The respondent’s rating from the various sectors for ‘price’ is shown in the

form of bar graph as follows:

RATING (OUT OF 4) FOR 'PRICE'

00.5

11.5

22.5

33.5

44.5

Industry Services Infrastructure Govt/defense IT

SECTOR

RA

TIN

G

1. The industry and the Govt/defence sector has given ‘price’ as the highest

priority

2. The service and infrastructure sector has rated ‘price’ as 3 out of 4

3. The IT sector has given it 2 out of 4.

The respondent’s rating from the various sectors for ‘brand name’ is shown

in the form of bar graph as follows:

37

RATING(OUT OF 4) FOR 'BRAND NAME'

00.5

11.5

22.5

33.5

44.5

Industry Services Infrastructure Govt/defense IT

SECTOR

RA

TIN

G

1. The IT sector and the Infrastructure/building sector has given ‘brand name’ 4

out of 4. Thus they both give brand name the highest preference, whenever

they purchase a genset.

2. The service sector and the Govt/defense sector has given ‘brand name’ 3 out

of 4. That means it is important for them,but not that important.

3. The industry sector has rated it 2 out 4

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The respondent’s rating from the various sectors for ‘fuel efficiency’ is shown

in the form of bar graph as follows:

RATING(OUT OF 4) FOR 'FUEL EFFICIENCY'

00.5

11.5

22.5

33.5

44.5

Industry Services Infrastructure Govt/defense IT

SECTOR

RA

TIN

G

1. The industry sector and the infrastructure sector has ‘fuel efficiency’ its

highest preference,by rating it 4 out of 4.

2. The service,IT and the Govt/defense sector has rated it 3 out of 4. thus for

each of them .the fuel efficiency is important ,but its not of the highest

preference for them.

39

The respondent’s rating from the various sectors for ‘reliability’ is shown in

the form of bar graph as follows:

RATING(OUT OF 4) FOR 'RELIABILITY'

00.5

11.5

22.5

33.5

44.5

Industry Services Infrastructure Govt/defense IT

SECTOR

RA

TIN

G

1. Over here all the sectors have given ‘reliability’ their highest preference ,as all

of them have rated them 4 out of 4. here we see that reliability in a genset is of

so much importance and this must be taken into consideration by the

company.

40

The respondent’s rating from the various sectors for ‘durability’ is shown in

the form of bar graph as follows:

RATING (OUT OF 4) FOR 'DURABILITY'

0

0.5

1

1.5

2

2.5

3

3.5

Industry Services Infrastructure Govt/defense IT

SECTOR

RA

TIN

G

1. The IT sector and the industry sector has rated ‘durabilty’ 3 out of 4. thus is

important for them,although not that important.

2. The service,infrastructure and the govt/defense sector has rated it 2 out of 4.

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The respondent’s rating from the various sectors for ‘ruggedness’ is shown in

the form of bar graph as follows:

RATING(OUT OF 4) FOR 'RUGGEDNESS'

0

0.5

1

1.5

2

2.5

3

3.5

Industry Services Infrastructure Govt/defense IT

SECTOR

RA

TIN

G

1. The industry sector and the Govt/defense sector has ‘ruggedness’ as 3 out of 4.

2. Then the service ,infrastructure/building and the IT sector has rated it 2 out of

4.

42

The respondent’s rating from the various sectors for ‘warranty/services’ is

shown in the form of bar graph as follows:

RATING(OUT OF 4) FOR 'WARRANTY/SERVICES'

00.51

1.52

2.53

3.54

4.5

Industry Services Infrastructure Govt/defense IT

SECTOR

RA

TIN

G

1. The industry,service and the Govt/defense sector has given

‘warranty/services’ as their highest preference by rating it as 4 out of 4

2. The infrastructure/building and the IT sector has rated it as 3 out of 4.

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The respondent’s rating from the various sectors for ‘noise is shown in the

form of bar graph as follows:

RATING (OUT OF 4) FOR 'NOISE'

00.51

1.52

2.53

3.54

4.5

Industry Services Infrastructure Govt/defense IT

SECTOR

RA

TIN

G

1. The service and infrastructure/building and the IT sector have rated ‘noise’ 4

out of 4. hence they give the noise free factor in a genset ,the highest

preference.

2. the industry and the Govt/defense sector rates it 3 out of 4.

Thus from the graphical representation we see that,

1. POTENTIAL

IT sector has the maximum potential (42%) in the present market scenario, as

there are so many IT buildings coming up and all require high KVA gensets. Then

the industrial sector (14%) follows with the other sectors behind it.

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2. PREFERENCES

Preferences of the all the sectors are as follows:

SECTOR PREFERENCE

IndustryPrice, fuel efficiency, reliability,

warranty/servicesServices Reliability, warranty/services, noise

Infrastructure/buildingsBrand name, fuel efficiency, reliability,

noise

Govt./defense

Price, reliability, warranty/services

IT sector Brand name, reliability, noise

FINDINGS

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1. Among all the preferences given to the respondents, most of them rated

reliability as the most important factor. Thus reliability in a genset must be

the given paramount importance.

2. Among the areas which have maximum potential, we have the IT sector

having the highest potential in the current scenario.

3. Greaves has a good market share in the market, but it can go way ahead with

proper market positioning, marketing strategies and customer satisfaction.

SUGGESTIONS

46

1. The marketing strategies need to be revised and improved and aggressive

advertising needs to be done. The corporate brand of Greaves Cotton Ltd is

good but, it still needs to be enhanced further.

2. Greaves is doing well in the above 100 KVA market, but needs to improve in

the below 100 KVA market.

3. The after sales service isn’t at its best, so the after sales service needs to be

improved.

4. The spare parts are either costly or not easily available to the customers, which

can’t be ignored by any company.

5. Timely and prompt reply to the customer’s enquiry regarding the genset needs

to be done. Timely supply of the quotes to the customers is also important.

CONCLUSION

47

1. Market potential for the diesel generator industry is very good as there is a

huge demand for the diesel generators among the various sectors. Expansion is going

in almost every industry, so they need diesel generator sets to meet their power needs,

which they are unable to fulfill by the widespread load shedding problem. No

alternate technology is available that can be used as a standby power supply system.

2. As of now, the maximum potential lies in the IT sector,as IT is the most

booming sector and there are many IT firms coming up in Pune city. After this the

other sectors also have good potential.

3. With correct market positioning, the sales of the gensets will soar up.

Appropriate steps is needed to be taken for this purpose. Last but not the least,

reliability also played a major role in customers selecting a genset.

LIMITATIONS

48

In market research , the collection of correct data and other relevant

materials are required but the data collection depends upon the researcher and the

respondents. Hence some drawbacks or limitations are bound to exist in the study.

These limitations were as follows:

1) Mostly the civil industry was targeted.

Out of all the major industries, mostly the civil and the construction industry

was targeted, as this sector has been the most lucrative sector for the company

till date

2) Study was limited only upto Pune city

This study was limited to Pune industrial areas but the findings may differ for

other parts of India where I have not visited.

3) Telephonic interviews were conducted in some cases

Places where the respondents were not physically met, telephonic interviews

were carried out.

4) No Proper Information

In some cases I have observed that after asking questions to concerned person,

he gives wrong answer to the question or says that he does not know.

E.g. - In some company even maintenance manager does not know KVA

rating at the diesel generator and the year of purchase.

5) Non-cooperative respondents:

49

Some times it happens that even after taking appointment they refuse to meet

due to work overload, lack of time or any other reasons. In some case it

happened that respondents denied giving information. Also some may give

purposefully wrong information.

6) Human factors:

Some times it also happened that researcher asks question something else and

the respondent perceives something else. This happens due to human

limitations like behavior, attitude and perception are not stable at all point of

time which will lead to mistakes.

7) Resources:

To conduct the research, one of many resources is time & money. However

the limitation had been effectively counter balanced as far as possible. But still

this limitation may affect the judgments.

QUESTIONNAIRE

50

Research On Genset Market in Pune City

Name of the Co. :

Person visited :

Contact No. :

Which elements you consider before buying Gensets? (Rate them)

Price 1 – 2 – 3 - 4

Brand Name 1 – 2 – 3 - 4

Fuel efficiency 1 – 2 – 3 – 4

Reliability 1 – 2 – 3 – 4

Durability 1 – 2 – 3 – 4

Ruggedness 1 – 2 – 3 – 4

Warranty/Services 1 – 2 – 3 – 4

Noise 1 – 2 – 3 - 4

Would like to buy Genset that will satisfy all above mentioned requirements?

Project No of Sites No. of Buildings No. of Gensets

You require

Range (KVA)

Current

Upcoming

51

Definitely buy / Probably buy / Not sure / Probably not buy / Definitely not

buy

After Sale Services are –

Extremely important / Very imp / Somewhat imp / Not very imp / Not at all

imp.

Your Suggestions:

Any References:

Signature

BIBLIOGRAPHY

BOOKS:

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1. Dr. Kulkarni B.D., Research Methodology , Everest Publishing House, Pune,

(2002).

2. Mr. Kotler Philip, Marketing Management , Pearson Education Inc., (2005).

3. Mr. Beri G.C., Marketing Research , Tata McGraw-Hill Publishing

Company limited, New Delhi, (2004).

WEBSITES:

1. www.greavescotton.com

2. www.quickmba.com

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