bajaj electricals limited
TRANSCRIPT
APROJECT REPORT
On Bajaj Electricals
Submitted in partial fulfilment for the degree ofBachelor of Business Administration,
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY.
By Shubham Pal
BBA (2010-2013)
IDEAL INSTITUTE OF MANAGEMENT & TECHNOLOGY
DELHI-110092
1
Acknowledgment
I owe a great many thanks to a great many people who helped and supported me during the writing of this Summer Training Project. I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them.
I am highly indebted to Videocon, 296, UdyogVihar Phase-II,Gurgaon, Haryana. Phone No.: 0124-4215400 for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project.
I would like to express my special gratitude and thanks to industry persons for giving me such attention and time.
My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities. I would like to express my gratitude and thank my Institution i.e. Ideal Institute Of Management And Technology and faculty without whom this project would have been a distant reality.
SUCHIT KUMAR
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TABLE OF CONTENTS
Sr. No. Particulars
1. INTODUCTION
2. COMPANY PROFILE
4. OBJECTIVE OF REASEARCH
5. REARCH METHODOLOGY
6. DATA ANALYASIS &FINDING
7. SUGESSION
8. LIMITATION
9. CONCLUSION
10. QUESTIONAIRE
11. BIBLOGRAPHY
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INTRODUCTION
4
INTRODUCTION
The behaviour is characterized by the uniqueness of individual expectations, the
preference for multiple options, propensity to abandon brand loyalty and switch to
competing brands that give higher value. The new breed is willing to import to
satisfy specific requirement It is difficult to clarify this generation by
conventional demographic factors and unless their thought process and buying
behavior are fully understood, decisions on product designs and packaging,
branding and distribution channels are likely to be misplaced. With the
inevitability of change looming large over horizon, Indian companies must learn
from their western counterparts; not only to identify the sources, timing and
direction of the changes likely to effect. India, but also the new competencies and
perspective that will enable them to respond to these changes comprehensively and
effectively.
Companies offering product or services will need to understand this new face of
the customers. The changing demographic profile of the population in terms of
education, income, size of the family and so on, are important but what will be more
substantive in days to come will be the psychographics of the customer ice how they
feel , think or behave. Marketers will have to constantly monitor and understand
the underlying psycho graphics to map their respective industries are moving and
decide what needs to be done, by way of adding value that motivates customers
to buy the company's products and influence the future industry structure.
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Consumer durables like fan, bulbs, tube lights, geysers play an important role for a
small sweet home to a multipurpose project. To market the -- ct and to establish brand
loyalty, a good marketer has to go to real customers. The behavior differ one from
another. It is essential to know their decision process, the factors influencing their
behavior, the competitors marketing strategy and position in the market.
On going through the market survey, I found different types of dealers trough
which I can able to analyze the behavior of customers towards geysers , their
decision regarding the purchase of geysers, choice of brand, company and its
benefits.
MAJOR FACTORS INFLUENCING
CONSUMER BEHAVIOUR:
The major factors that influence the consumer behavior are:
Product Price
Place
Promotion mix
PRICING AND MARKET SHARE:
Pricing is undoubtedly one of the most important decision areas of marketing. Price
and sales volume together decide the revenue of any business. As the sales
volume in itself is dependent on price, pricing really becomes the key to the
revenue of the business. Pricing is crucial to pro I-] is as well. Pricing becomes the
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vital decision area on account of certain other factors besides its crucial role in
bringing revenues and profits to the business.
PRICING METHOD/PRICING STRATEGIES:
There are several methods of pricing: Cost based pricing
Demand based pricing
Competition based pricing
Product line oriented pricing
Differentiated pricing
MARKET SHARE:
Market share constitutes the total market captured by Bajaj electrical limited in the
whole consumer durable industry. During my survey I found out that the market
share in different areas are different because of different geographical regions,
climate and number of different companies.
The market share is determined by the help of total consumption of the
particular area and the consumption of particular company's product in that area.
The market share of Bajaj electrical limited is growing with every financial year.
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COMPANY PROFILE
8
COMPANY PROFILE
The bajaj group of India owes immense gratitude to their founding father whose
vision and dedication over the years has greatly helped to build a business house
that can set standard in Indian industry.
Jamnalal Bajaj was the founding father of the Bajaj Group. The dopted 'fifth' son of
Mahatma Gandhi, and the 'merchant prince' who held the wealth he created in
trust for the people of his country, Trust - a simple word that contains a whole
philosophy handed down by Jamnalal Bajaj to his successors. He valued
honesty over profit.
Jamalnayan Bajaj, elder son of Jamnalal Bajaj, followed footsteps of his illustrious
father and consolidated the baja jj foundation. With characteristic foresight and
pragmatic; vision, he launched a steady diversification programme which gave
the current name "Bajaj" both its shape and size. His unique management style created
a work culture that matched well with the national spirit he had inherited.
Ramkrishna Bajaj took over the reins of the "bajaj group" in 1972 after Kamalnayan
Bajaj and steered the Group from strength to strength for over 22 years. He had also
actively participated in the freedom struggle of the country. In post independent India,
he had led the youth movement.
Shekhar Bajaj, Chairman & Managing Director of Bajaj Electricals Ltd., started his
career with Bajaj Sevashrarn after which he worked at Bajaj International, the groups
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export company. Mr. Shekhar Bajaj joined Bajaj Electricals in 1980, became the
Managing Director in 1987 and took over as the Chairman and Managing Director in
1994. Mr. Bajaj is the Chairman of Bajaj Group companies Baj~.:i;j International and
Hercules Hoist Pvt. Ltd. and on the Board of Directors of Bajaj Auto and
IDBI Bank. He was the President of ASSOCHAM, former President of Indian
Merchant Chambers (IMC) and Council for Fair Business; Practices (CFBP)
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HISTORY
People don't just bring their brains to work: they also bring their hearts and soul.
They want to feel passionate about what they are doing and be a part of whatever is
great. We at Bajaj Electricals Limited, recognize this truism and seek out and strike
a dialogue straight with the hearts and souls) of our employees. Here is a quote from
Mr. Shekhar Bajaj, our Chairman and Managing Director -
"Every individual has the potential to perform if he or she gets proper motivation,
the right opportunity and the freedom to work. In the long run success is
achieved when ordinary people perform extraordinarily. It is important to keep an
open mind rather than drawing preconceived impressions about people. More
often that not, such impressions will be proven wrong."
Faster, Higher, Stronger - is our maxim, our way of individual and organizational
performance. This is how we managed a successful business turnaround in Bajaj
Electricals Ltd - with and through each one of our employees. And not only our
excellent brand of products, cur people provide an excellent competitive advantage to
us.
Bajaj Electricals Ltd. is planning to enter into a licensing agreement for its luminarie
business.
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We are looking at a collaboration for our luminaire business :-7~ough a licensing
agreement as there is a need for technologically superior products which are state-of-
the art. We are in advanced discussions. I cannot disclose anything further at this
stage," Bajaj Electricals chief operating officer and president R Ramakrishnan said.
The luminaire business is one of the five special business units (SBUs) of the
company. The others are appliances, pans, lighting and the engineering business.
Bajaj Electrical luminaires find applications in the engineering, power, steel, cement,
fertilizer, chemical and petrochemical sectors.
Earlier, Bajaj Electricals had entered into a licensing agreement with Morphy
Richards of the UK for its irons. This tie-up also entails a technology transfer.
The company is targeting revenues of Rs 1,000 crore by the year 2007-08.
"The biggest contributor to this will be the engineering business. Till
recently, we were only into the manufacture of power transmission towers. Now,
we will be installing them too," Mr Ramakrishnan added. The engineering and
projects business is also the fastest growing business.
This business has an order book of over Rs 150 crore and has grown by over 85%,
senior company executives said. The company clocked net sales of Rs 505.26 crore in
the last fiscal and is expected to add around 25% to its topline this-_-) fiscal, he said.
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The company which had been facing tough times a few years back has bounced back
after the implementation of a restructuring exercise.
This entailed the reorganisation in to five SBUs, reduction in _crest rates, brand
building, and a growth of revenues.
Last year, the company also came out with a rights issue at premium of Rs 15 per
share. Further, the company also of out of the die-casting business by giving a VRS at
the plant, selling the development rights of the land and entering into a non-compete
clause with a competitor.
Revamp helps Bajaj Electricals Turn Around
Hindu Business line
January 31, 2005
K. Giriprakash
V. K. Varadarajan
Bangalore Jan 30, 2005: BAJAJ Electricals has restructured its entire operations,
including shutting down some of its loss-making ventures, as part of its plans to
turnaround the company.
Bajaj Electricals' President and Chief Operating Officer, Mr R. Ramakrishnan, told
Business Line that the restructuring has helped the company to turnaround and now
it expects to double its revenues to about Rs 1,000 crore within three years. The
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company hopes to end the current fiscal with a revenue of around Rs 630 crore, an
increase of 20 per cent over fiscal 2003-04.
Mr Ramakrishnan said it had roped in Accenture Consulting to chart out a
turnaround for the company. As per the new plan, Bajaj Electricals dropped its
matrix structure for its organisation in favour of separate business units for each of
its businesses.
It now has five separate business units - engineering and projects, luminaire,
appliances, fans and lighting. "Each of these units compete as separate businesses with
its, competitors," Mr Ramakrishnan said. The company also got rid of unviable
businesses.
For example, it shut down its diecast operations and offered VRS to 180 people. It
also sold surplus land of the unit.
He said the company also went in for financial restructuring by swapping high cost
funds with low cost long-term debt. The banks too have lowered interest cost and
increased the moratorium for another two years.
The company plans to invest about Rs 20 crore, spread over the next fiscal, to
double the existing capacity in its engineering unit to execute its Rs 160 crore
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worth of fresh order from Powergrid Corporation for erection and commissioning of
power transmission tower.
Mr Ramakrishnan said the engineering unit, which registered a growth of 88 per cent
over the last fiscal, is expected to outpace other business units. The company expects
about 25 per cent of its revenues to come from its engineering business, he said.
Mr Ramakrishnan said with the PowerGrid according theril the status of approved
EPC contractors, it expects bigger orders from the power company. He pointed out
that with an estimated investment proposal of Rs 75,000 crore by Powergrid
Corporation, there was a huge opportunity for the company.
Mr.Ramakrishnan said the company had entered into a licensing arrangement with
Trilux, a leading European luminaries brand and a market leader in
lighting in Germany. The tie-up, though is aimed to market the products to
premium segments in the country, could lead to manufacturing Trilux products in
the long term. Trilux would complement
Bajaj's own products to provide full spectrum of lighting products, he said. Similarly,
Bajaj's tie-up with UK's leading small appliances brand Morphy Richards had helped
it to position itself in the premium end of the market.
Mr Ramakrishnan said Bajaj Electricals has a market share of between 15 per cent
and 20 per cent in the appliances segment, 20 per cent in luminaries and 10
15
per cent in lighting. The company has also been able to take on the unorganised
sector by offering competitive pricing of its products in the lower end. "Our
China sourcing strategy has helped us to buy from the world's best without
compromising on the quality of the products," he said.
Bajaj International Pvt. Ltd. is an associate company of Bajaj Electricals Limited
(BEL), and is a part of The Bajaj Group which has an annual turnover of US$
1.4 billion, employing approximately 33,000 people.
The Brand 'Bajaj' is a mark which guarantees highest international quality standards.
It signifies an uncompromising attitude towards any divergence frorn quality
products.
Our group company Hind Lamps Ltd. has had a manufacturing venture with Philips
Holland for more than five decades for GLS and Miniature Lamps and for Fluorescent
Tubes.
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Bajaj Electricals Keeps on Shining More...
Bajaj Electricals Limited (BEL) is a part of the "Bajaj Group" of India who are
in the business of s teel , sugar, two wheelers & three wheelers. Bajaj
Electricals is well established in their range of products such as lamps & tube
lights, luminaires, small household appliances, ceiling fans & table fans and
turnkey engineering services. The company has been in existence for the last 60
years and has steadily grown and expanded its business both in domestic and
international markets.
Bajaj Electricals has 20 branch offices and 4 regional offices spread in different
parts of the country besides being supported by a chain of about 600
distributors, 2500 authorised dealers, over 60,000 retail outlets and over 200
service franchisees
BEL today has five major business units comprising of lighting, luminaires,
electric fans, home appliances, turnkey engineering projects. BEL's export
activities are well supported through its International division. The Company
has recently forayed into electric power generation through wind energy in its
quest to reduce the depletion of fossil fuels and preserved the environment.
Total Quality Management (TQM) has taken roots in some important business
processes of the Company. Few business units of the company have already received
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ISO Certifications while the other BUs are on the anvil to obtain the same. BEL
has many technology tie-ups and collaborations with major international players, the
details of which are given under business activities.
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PRESS NEWS
Times of India January 22, 2005
Bajaj Electricals has reported a 93.8 percent rise in its net profit for the third
quarter ended December 31, 2004 at Rs 4.75 crore as against Rs 2.45 crore in the
corresponding period of last fiscal. Revenues from operations during the quarter
were higher at Rs 170 crore as against Rs 126 crore i n the same period of 2003-04.
Leading the Way
Corporate Dossier
Economic Times
January 14, 2005
Shekhar Bajaj, Chairman & MD, Bajaj Electricals Ltd.
A leader sets an example for others to emulate, and hence must be a high-level
performer. He's also respected by subordinates and colleagues, alike. He
must embody honesty, integrity and trustworthiness.
A leader is knowledgeable and well read and must guide and empower his
subordinates to perform their best.
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He must also be supportive to his subordinates and fair at his workplace, at all
times. He must be sympathetic, yet firm when required. A leader is one who enthuses
people by giving credit when it's due, whom it's due to, gracefully and quietly.
A leader is a builder of performance-oriented teams. He builds on people's strengths
and helps overcome their weaknesses. A leader is one who is whole-heartedly
committed to the organisational goals and aspirations. A leader is the organisation, in
essence.
These are points from the speech I made at a management conference 10 years ago,
and these simple management truths are still relevant in running Bajaj Electricals today.
Since the past 25 years that I have worked in Bajaj Electricals, I have seen
many ups and downs - some that challenged my ideals and others that inspired me
to continue.
One of the most important things for a leader is that he should be aware that
he is the pillar in unfavourable times and the sole motivator for his
employees when the ship starts to sink.
He shouldn't be demoralised when things aren't going as expected, nor should
he be jubilant when things are going well. He's the one to support and
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motivate his team to tackle the impossible and find solutions to the most complex
problems.
It's more valuable to take decisions fast, even with a few mistakes rather than
delay decisions.
Around three years back, we were going through a downturn, I realised that unless we
reduced our costs and make ourselves trimmer and take other corrective actions, the
company wouldn't be able to turn around.
Therefore, we instated a five-pronged strategy through the theme 'War for Profits',
where all members of Team Bajaj were involved in controlling fixed costs,
reducing working
Capital, improving margins, increasing volumes and getting ,,ut of loss-making
businesses.
Restructuring must be done easily only during a downturn, as everybody feels the
need to change and are open to taking risks.
For any organisation, people are the key assets and therefore communication is vital.
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Effective communication during bad times is imperative as opposed to
suppressing
information. I have learned that a pat on the back can go a long way, reaping more
benefits than just financial rewards.
Our focus on achieving a turnaround bore fruit when the company improved
its market share in our restructured five business units. We extended and added
value to our portfolio of products and solutions to meet differing customer
needs.
In addition to our aggressive marketing activities we explored strategic
alliances with business partners around the globe. Quality is important but soon
it will be taken as given.
What is going to differentiate different companies are innovation, service and
distribution.
Every individual has the potential to perform if he or she gets the proper
motivation, the right opportunity and the freedom to work. In the long run, success
is achieved when ordinary people perform extraordinarily.
22
It's important to keep an open mind rather than drawing pre-conceived
impressions about people. More often than not, such impressions will be proven
wrong.
A majority of labour problems arise because of improper management rather than the
easily blamed labour attitude.
Mahatma Gandhi succeeded in uniting multi-lingual Indians against the British
rule (in an era of no technological communications) because he could relate
to the masses - as he understood their problems because he lived with them,
like them, and empathised with them.
Our strategy is to capture the bottom of the pyramid. India's population of 100 crore -
from a liability can be converted into an opportunity for growth and profitability.
I would like to end with a quotation by Lau-tzu - the founder of Taoism
A leader is best when people barely know that he exists. When his work is done, his
aim fulfilled, they'll all say, "We did it ourselves".
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PRODUCT PROFILE
Bajaj Storage Water Heater
Energy Efficient Horizontal
10 year guarantee on copper tank
30% energy savings over ISI norms
2 year comprehensive guarantee including heating element
Available in 10 litre capacity
Energy Efficient Vertical
10 year guarantee on copper tank
30% energy savings over ISI norms
2 year comprehensive guarantee including heating element
Available in 10 litre capacity
Energy Smart Horizontal
10 year guarantee on copper tank
Imported Combistat
30% energy savings over ISI norms
2 year comprehensive guarantee including heating element
Available in 10, 15, 25, 35 and 50 litre capacity
Energy Smart Vertical
10 year guarantee on copper tank
Imported Combistat
30% energy savings over ISI norms
2 year comprehensive guarantee including heating element
Available in 6, 10, 15, 25, 35 and 50 litres capacity
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Majesty IQ Horizontal
10 year guarantee on copper tank
Imported Combistat
PUF insulation for 30% energy savings over ISI norms
2 year comprehensive guarantee including heating element
Rust-free enginnering plastic body
Available in 15, 25 and 35 litre capacity
Majesty IQ Vertical
10 year guarantee on copper tank
Imported Combistat
PUF insulation for 30% energy savings over ISI norms
2 year comprehensive guarantee including heating element
Rust-free engineerign plastic body
Available in 15, 25 and 35 litre capacity
Majesty Vertical
10 year guarantee on copper tank
Imported Combistat
Glasswool insulation for 30% energy savings over ISI norms
2 year comprehensive guarantee including heating element
Rust-free enginnering plastic body
Available in 15 and 25 litre capacity
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Bajaj Instant Water Heater
Majesty Instant
10 year guarantee on copper tank
Rust-free engineering plastic body
Multiple safety system
2 year comprehensive guarantee including heating element
Available in 1 litre and 3 litres capacity
Majesty IQ Instant
10 year guarantee on copper tank
Rust-free engineering plastic body
Imported capillary thermostat
Rapid and normal heating option
Multiple safety system
MARKET SHARE
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Shareholding Pattern
As on 31st December, 2010
Under Clause 35 of the Listing Agreement
A1
CategoryPromoter's holdingPromoters*
No. ofShareheld
ofshareholding
Indian Promoters 5693850 65.88
2
Foreign Promoters
Persons acting in
Nil Nil
104440 1.21
concert#
Sub Total:
5798290 67.09
B
3
Non-Promoter's holding Nil
Institutional Investors Nil
a(i) Mutual Funds 500 0.01
a(ii) Unit Trust of India 150 0.00
b(i) Banks 6687 0.08
b(ii) Life Insurance 746010 8.63
b(iii) Corporation of India
Oriental Insurance
108000 1.25
c
Company Ltd.
Flls
Nil Nil
Sub Total: 861347 9.97
4 Others
a Private Corporate 389298 4.50
Bodies
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b Indian Public 1567010 18.13
c NRIs/OCBs 5905 0.07
d Any Other - Non 5430 0.06
e Resident
Foreign Companies
15600 0.18
Sub Total: 1983243 22.95
Grand Total: 8642880 100.00
as defined in Regulation 2(h) of SEBI (Substantial Acquisition of Shares and Takeovers)
Regulation, 1997. The promoter's holding shall include all entities in the promoter's
group-individual or body corporates.
# as defined in Regulation 2(e) of SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations, 1997.
Note:
1. Total Foreign shareholding including Foreign Promoters, Fils, NRIs/OCBs
Foreign Banks, Foreign Nationals and GDR & ADR holdings is 26935 i.e. 0.31% of
the total issued equity capital.
Shareholding Pattern as on 31st December, 2010 Under Clause 35 of the Listing
Agreement
Persons Holding more than 1% of the shares of the Company
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SL.
No.
A
1
Name of Shareholder
1. Promoters:
Jamnalal Sons Pvt. Ltd.
No. of
Share
1429541
to
equity
capital
16.54
2 Bajaj Auto Ltd. 1719676 19.90
3 Hind Musafir Agency Pvt. Ltd. 200000 2.31
4 Bajaj International Pvt. Ltd. 200000 2.31
5 Shri Shishir Kamalnayan 136400 1.58
6 Bajaj
Shri Rahulkumar Kamalnayan
114000 1.32
7 Bajaj
Shri Shekhar Bajaj
190680 2.21
8 Shri Madhur Bajaj 90786 1.05
9 Shri Anant Bajaj 175366 2.03
B 2. Foreign Promoters:
Non-Promoter's holding:
3a. Mutual Funds & UTI
3b. Banks
Nil
Nil
Nil
Nil
Nil
Nil
8.63
Life Insurance Corporation
of India 1.25Oriental Insurance 108000
Company Ltd.
3c. Flls
4a. Private Corporate Bodies
4b. Indian Public
4c. NRIs/OCBs
4d. Any Other - Non Resident
4e. Foreign Companies
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
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ORGANIZATION HIERARCHY
1) Managing director
2) President
3) Vice president
4) National sales manager
5) Regional manager
6) Assistant manager
7) Senior sales executive
8) Sales executive
9) Financial coordinator
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OBJECTIVE OF THE
RESEARCH
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OBJECTIVES OF THF RESEARCH
The objective of the project ``factors affecting consumer buying behavior& to know the
market position of Bajaj geysers "are as followed -
1) To find out what does the user of the geyser think about Bajaj electrical limited.
2) To study their preference for the geyser brand selection.
3) To study the market opportunities of Bajaj electrical limited to help in the
formulation of marketing strategy.
4) To suggest some measures to make Bajaj electrical limited more competitive.
5) To study the customers satisfaction level in regards to the strength of the Bajaj
electrical limited.
6) To study the market prospects of Bajaj electrical limited.
7) To study the reasons behind best geysers.
8) To study strength and weakness of Bajaj geysers.
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RESEARCH
METHODOLOGY
33
RESEARCH METHODOLOGY
STATEMENT OF THE PROBLEM AND ITS SIGNIFICANCE:
The study is on "factors affecting consumer buying behavior and market
condition of bajaj geysers with a special synopsis on competitive marketing
strategies".
It covers aspects like market share of the company, buying attributes of
customers, preference of the customer etc. The study is a modes effort at
understanding the consumers attitude about Bajaj electrical ltd, which has a very
good market share as their competitors.
Research simply means a search for facts-answers to questions and solution to
problems. It is a purposive investigation. It is an organized enquiry. In other words
research means search for knowledge and research methodology is a way
systematically solve the research problems.
It is a science of studying how the search is actually done. It presents the source of
data collection, the sampling procedures and tools of investigation and limitation of
the study.
My research project has a specified framework for collecting the data in an
effective manner. Such framework is called "research design".
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The research process:
It includes following steps
1. Defining the research problem & research objective:
The definition of the research problem includes the study of the topic
“factors affecting consumer buying behavior & market position of Bajaj geysers in
Delhi ".
2. Developing the research plan:
Second stage for developing the research plan calls for gathering the
information.
It consists of -
Data sources:
The researcher can gather primary data, secondary data or both.
Primary data are data freshly gathered for specific purpose or for a specific
research project.
Secondary are data that were collected for another purpose and already exist
somewhere.
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Research Approaches:
Primary data can be collected in five ways:
1) Through observation:
Fresh data can be gathered by observing the relevant actors and settings.
2) Focus group research:
Focus group research is a gathering of six to ten people who are invited to spend
a few hours with a skilled moderator to discuss a project.
3) Survey research:
Surveys are best suited for descriptive research. Surveys are used to learn
about people knowledge, beliefs, preferences and satisfaction.
4) Behavioral data:
Customers leave traces of their purchase behavior in store scanning data, catalog
purchase and customer database. Much can be learned by analyzing these data.
5) Experimental research:
The purpose of experimental research is to capture cause & effect relationship by
eliminating competing explanations of the observed findings.
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RESEARCH INSTRUMENTS:
Three main instruments used in collecting primary data are
1) Questionnaires:
A questionnaire consists of a set of questions presented to respondents.
Questionnaire needs to be carefully developed, tested and debugged before they are
administered on large scale.
2) Psychological tools:
Psychological tools consist of laddering techniques & depth interviews.
3) Mechanical devices:
Mechanical devices are occasionally used in marketing research. Galvanometer
measures the interest or emotions aroused by exposure to a specific ad or picture.
37
QUESTIONS ARE OF TWO TYPES:
1) Closed end questions
2) Open end questions
Closed end question include:
Dichotomous
Multiple choice
Likert scale
Semantic differential
Important scale
Open end questions include:
Completely unstructured
Word association
Sentence completion
Pictures
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SAMPLING PLAN
After deciding the research plan and research instrument, the marketing researcher
must design a sampling plan. This calls for three decisions:
1) Sampling unit:
Who is to be surveyed? The market researcher must define the target population that
will be sampled. Once the sampling unit is determined, a sampling frame must
be developed so that everyone in the target population has an equal or known
chance of being sampled. I have completed my survey in south & east Delhi.
2) Sampling size:
How many people to be surveyed? Large samples give more reliable results than small
samples. It mainly refers to no of respondents from the universe. My sample size
consists of 50 dealers of different home appliances brands.
3) Sampling procedure:
How should the respondents be chosen? To obtain a representative sample, a
probability sample of the population should be drawn.
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SAMPLING MAY BE
1) Probability sampling
It includes:
Simple random sampling
Stratified random sampling
Cluster sampling
2) Non probability sampling
It includes
Convenience sampling
Judgment sampling
Quota sampling
SAMPLING TECHNIQUE USED:
Due to constraint of tine, convenient sampling is used. This sampling method
involves purposive or deliberate selection of particular units of the universe for
constituting a sample, which represents the universe. In this population elements
are selected for inclusion in the sample based on the ease of access.
40
3) Collect the information
The data collection phase is most expensive and most prone to error. Four major
problems arise in this phase:
1) Some respondents will not be at home.
2) Other respondent will not cooperate.
3) Other will give biased answers.
4) Some interviewers will be biased.
4) Analyze the information
The next to last step in the marketing research process is to extract findings from the
collected data. Different types of statistical techniques are used.
5) Present the findings
As the last, the researcher presents the findings. The researcher should present
findings that are relevant to major marketing decisions.
6) Decision making
After completing all phases decision is formulated that is advantageous for the
organization. Decisions made are checked and implemented by managers.
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STATISTICAL TOOLS USED:
Tabulation of data & develops frequency distribution.,
Averages and measure of dispersion are computed.
Simple and complex tables are used.
One dimensional diagrams are used e.g. bar diagrams.
Two dimensional diagrams are used e.g. pie diagrams.
Graphs are used.
Sampling methods are used.
42
DATA ANALYSIS
&
FINDINGS
43
DATA ANALYSIS AND FINDINGS
The following pages give an in depth analysis and interpretation for the data collected
from dealers. Each aspect of analysis is shown separately accomplished with
tabulatation, a graphical representation and an interpretation for the same.
Fifty dealers were taken to collect the information or data.
1) Which geysers do you deal in?
TABLE -1
Baj aj 40
Usha 3 5
Venus 20
Reckold 45
Spare hot 10
GRAPHICAL REPRESENTATION:
44
GRAPH -1
INTERPETATION:
The result shows that maximum number of dealers deal in Reckold geysers (45)
whereas Bajaj dealers are (40), Usha dealers are (35), Venus dealers are (20) &
Sparehot dealers are (10).
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2) How old is your retail outlet?
TABLE-2
LESS-1 YEAR 10%1-4YEAR 20%
4-8YEAR 40%
8-ABOVE 30%
GRAPHICAL REPRESENTATION:
GRAPH-2
INTERPETATION:
From the above interpretation it is clear that 10% dealers have less than 1 year old retail
outlet, 20% dealers have 1-4 year old retail outlet, 40% dealers have 4-8 years old retail
outlet whereas 30% dealers have more than 8 years old retail outlet.
46
3) Which geyser do you think is best & why?
TABLE-3
Bajaj 20%
Reckold 50%
Venus 10%
Usha 20%
Sparehot -
GRAPHICAL REPRESENTATION:
GRAPH-3
INTERPETATION:
50% dealers said Reckold geysers are best, 20% prefer both Usha & Bajaj whereas l0%
said Venus is best.
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4) What are the strengths of Bajaj geysers?
TABLE-4
Strengths No. of Respondents
Quality 25
Look 20
Price 5
GRAPHICAL REPRESENTATION:
INTERPRETATION:
25 dealers said quality is the Bajaj strength, 20 dealers said look is its strength whereas 5
dealers said price as its strength.
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5) What is the marketing prospect of Bajaj Geysers?
Table –5
Marketing prospect of Bajaj Geysers Percentage
Good 60%
Average 30%
Bad 10%
GRAPHICAL REPRESENTATION
INTERPRETATION
60% of dealers said good about marketing prospect of Bajaj geysers, 30% said it as
average whereas 10% said it as bad.
49
6) Are you satisfied with the margin you got by selling Bajaj geyers?
TABLE-6
Yes 70%
No 30%
GRAPHICAL REPRESENTATION
INTERPRETATION
70% of the dealers are satisfied by the margin whereas 30% dealers are not
satisfied by the margin. They want more margin on Bajaj geysers.
50
7) For which brand of geysers the demand is high?
TABLE-7
Brand Demand
Bajaj 25%
Reckold 40%
Usha 20%
Venus 10%
Sparehot 5%
GRAPHICAL REPRESENTATION
INTERPRETATION
From the above graph we conclude that maximum demand is of Reckold (40%), then
there is a demand of Bajaj followed by Usha & Venus.
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8) How much percentage of customer prefer following brands?
TABLE – 8
Brands Percentage of customer
Bajaj 35%
Reckold 30%
Usha 25%
Venus 10%
Sparehot 0%
GRAPHICAL REPRESENTATION
INTERPRETATION
The above table shows that 35% of customers want to purchase Bajaj geysers,
30% f customers want to purchase Reckold geysers, 25% of customers want to
purchase Usha geysers & 10% of customers want to purchase Venus geysers.
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9) What are the reasons for switching customers from Bajaj geysers to other
geysers?
TABLE – 9
Reasons No. of respondents
Large delay in servicing 35
Lack of marketing strategies 15
GRAPHICAL REPRESENTATION
INTERPRETATION
From the above table we conclude that major reasons for switching customers to other
brand are large delay in servicing & lack of market strategies.
53
10) How would you rank Bajaj geysers on a scale of 10?
TABLE – 10
Rank 1 10
Rank 2 30
Rank 3 10
GRAPHICAL REPRESENTATION
INTERPRETATION
The above table shows that 30 dealers ranked Bajaj as second, 10 dealers ranked
Bajaj as first whereas 10 dealers ranked Bajaj as third.
54
SWOT ANALYSIS
Strengths:
Brand image
Product quality
Product awareness in the market.
Dealers distributed widely across the country.
Good will in the market.
Older player in the market.
Weakness:
Lack of market strategies.
Lack of advertisement.
Delay in servicing facility.
Lesser promotion effort.
Opportunities:
Take advantage of brand image --Ba~jaj electrical limited"
Ability to convince the dealer through market representation.
Can afford major tie-ups.
Joint venture would increase database& product range.
Increase their presence at dealer point.
To use market leader strategies.
Threats:
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Presence of other competitors with good capture of market eg
Reckold, Usha, Venus.
Loyalty of consumers to other brands.
56
SUGGESTION
57
SUGGESTIONS
I would like to recommend some points to the company. This is on the basis of the
survey and anal\-sis of the study conducted in south & east Delhi.
1) The company should keep up its good work and should provide good sere-ice
for its product at proper time, so that that the major dissatisfaction among the
dealers and customers is not created.
2) The company should give much emphasis on incentive schemes and more margin of
profit so that dealers are able to make more sales and have more profit for the
company.
3) Since the purchase decision of the customer is mostly influenced by the dealers
therefore the dealer should be fully equipped with the best of information and
some gifts at certain purchases.
4) The company should work on positioning i.e. act of designing the company's
offering and image to occupy a distinctive place in the mind of the target market.
5) Company should use differentiation tools:
In product differentiation it should focus on-
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Form
Features
Performance
Durability
Reliability
Repairability
Design
In service differentiation it should focus on-
Ordering ease
Delivery
Installation
Customer consulting
Maintenance & repair
Miscellaneous
In personnel differentiation it should focus on-
Competence
Competence
Courtesy
Credibility
Reliability
Responsiveness
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Communication
In channel differentiation it should focus on-
Coverage
Expertise
Performance
In image differentiation it should focus on-
Symbols
Symbols
Colors
Slogans
Special attributes
6) Company should also focus on events and sponsorships.
7) As Reckold and Usha are market leaders whereas Bajaj is market challenger in
home appliances it should use market challenger strategies which are given below
Frontal attack:
In pure frontal attack, the attacker matches its opponent's product, advertising.
price & distribution. The principal of force says that the side with greater
manpower will win.
Flank attack:
60
The major principal of offensive warfare is concentration of strength against
weakness.
Encirclement attack:
The encirclement maneuver is an attempt to capture a wide area of the enemy's
territory.
Bypass attack:
The most indirect assault strategy is bypass. It means bypassing the enemy and
attacking easier markets to broaden one's resource base.
Guerrilla warfare:
It consists of waging small intermittent attacks to harass and demoralize the
opponent and eventually secure permanent footholds.
8) Wall paintings, pamphlets_ distribution procedure in the public can also help in the
promotion of Bajai geysers.
61
LIMITATIONS
62
LIMITATIONS
Every person try to do the work in the best possible way, but yet he/she faces
certain difficulties. But still proper care was taken to present the report in the best
possible way, but still the difficulties which was faced are as follows-
1) Area of survey is also limited as survey was conducted in south Delhi & east Delhi
only.
2) Time and other factors, which are beyond human limitation, have also a bearing on
the study.
3) Sample size taken for the study is quite small and it therefore does not represent the
whole population.
4) Since only limited number of dealers have been selected which do not represent the
whole of the dealers in the Delhi city.
5) Some of the dealers do not take interest in filling questionnaire.
6) Some of the dealers give wrong answers due to lack of interest.
7) Some of the dealers are biased.
63
CONCLUSION
64
CONCLUSION
From the analysis following inferences can be drawn:
Some of the dealers mainly prefer to sell Bajaj geysers than to Reckold
geysers because they have been dealers of Bajaj company for the last 30
years. Secondly because of background reputation of the company.
Dealers are at the View, that the company needs to have some incentive
schemes to promote m re sales because Reckold and Usha are giving
tough competition to Bajaj Electrical Limited.
Most of the dealers were the opinion that the company should adopt better
methods for promoting their brand due to the entrance of the company's
brand.
More promotional efforts are needed on the part of the company in
media advertising so that each and every person comes to know
about the Bajaj geysers.
Most of the consumers give their preference to quality and service of geysers.
Therefore company should take proper steps for improving the service
facility for Bajai geysers.
65
The purchase decision of the consumers is mostly influenced by dealers
due to their hold on the product and experience in dealing with that product.
So it is very necessary to have very good relationship with dealers & to give
them benefits as far as possible.
Consumers of Bajaj geysers prefer the overall look as compare to other
geysers. So the company should try to maintain it always.
66
ANNEXURES
67
QUESTIONNAIRE
NAME OF DEALER :
ADDRESS :
NAME OF SHOP:
Which geysers do you deal in?
Bajaj [ ]
Usha [ ]
Venus [ ]
Reckold [ ]
Spare hot [ ]
How old is your outlet?
1-4 year [ ]
4-8 year [ ]
8 years & more [ ]
Which geyser do you think is best & why?
1)
What are the strength of Bajaj geyser?
1)
What is the marketing prospect of Bajaj geyser?
Good [ ]
Average [ ]
68
Bad [ ]
Are you satisfied with the margin you are get by seling Bajaj geysers?
Yes [ ]
No [ ]
For which brand of geyser the demand is high?
Bajaj [ ]
Usha [ ]
Venus [ ]
Reckold [ ]
Spare hot [ ]
How much percentage of customers prefer following brands geysers?
Bajaj [ ]
Usha [ ]
Venus [ ]
Reckold [ ]
Spare hot [ ]
What are the reasons for switching customers from Bajaj geysers to other
geysers?
1)
2)
How would you rank Bajaj geysers on the scale of 10?
______________________________________________________________
69
BIBLIOGRAPHY
70
BIBLIOGRAPHY
PERSONS
Mr. Gaurav Saxena--
WEBSITES
www.bajajelectrical.com
www.google.com
MAGAZINES
Business in India
BOOKS
Marketing Management by Philip Kotler
71