market potential of alternators in pune

A

Project Report

On

“Market Potential of Alternators in Pune”

For

“Crompton Greaves Limited”

By

“Vikram Subhash Belhekar”

Under the guidance of

“Professor 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

I would like to express my warm regard to “Crompton Greaves Limited, Pune” office, at

J.M.Road, for giving me opportunity to successfully complete my project report on “Market

Potential for alternators in Pune.”

I sincerely thanks to Mr. Mujahid Shaikh, Senior Manager at Pune office for his valuable

suggestions and guidance for the project.

I must thank to Mr Shailesh Tripathi, from marketing department for his precious,

continuous and day to day guidance for completion of project. His suggestions and

encouragement has helped me to improve quality of my project. He has also given valuable

additions to my marketing knowledge.

I would also like to thank Mr. Batra, Branch Manager for giving me opportunity to

complete my project with their team.

This project would not have been successful without the precious guidance of our Director

Dr. Shailesh Kasande and my project guide Mr. Mahesh Gadekar to whom I express my

sincere gratitude.

Finally I would like to thank our Professor Mrs. Minal Dhotre, who has helped me to

acquire good marketing knowledge and all those friends and others who have helped me to

successfully complete my project.

2

CERTIFICATE FROM VIM

3

CERTIFICATE FROM CROMPTON GREAVES

4

LIST OF ABBREVIATIONS

(1) OEM – Original Equipment Manufacturer

(2) CGL – Crompton Greaves Limited.

(3) KEC- Kirloskar Electric Company

5

LIST OF TABLES

(6.1) Company wise sales in terms of units

(6.2) Dealer wise sales in terms of units

6

LIST OF TECHNICAL TERMS

(1) KVA – Kilo watt Ampere

(2) AC – Alternating Current

(3) DC- Direct Current.

7

INDEX

Sr. No. Title Page No.

1 Executive Summary 1-3

2 Company Profile 4-7

3 Product Profile 8-12

4 Objective of the Study 13-14

5 Research Methodology 15-16

6 Data Analysis 17-47

7 Findings 48-49

8 Conclusion 50-53

9 Recommendation 54-55

9 Bibliography 56-57

10 Annexure 58-67

8

CHAPTER 1

EXECUTIVE SUMMARY

9

Crompton greaves limited one of India’s largest private sector enterprises engaged in

the manufacture of electrical engineering products. Crompton greaves is very well known

brand in field of electrical equipments.

The fans and lighting businesses acquired "Super brand" status in January 2004. It is a

unique recognition amongst the country's 134 selected brands by "Super brands", UK.

The main objective of the study was to find out the “Market potential of alternators in

Pune”. Alternators are coupled with generators engine. Their size ranges from 1 KVA-

2000KVA. They convert chemical energy into electrical energy. KVA is a measuring unit

which means kilo watt ampere.

To decide the Research Methodology we take into consideration the business

partition. As the business is divided in two areas i.e. Original Equipment Manufacturer’s

(OEM’S) and Dealers, we prepare two separate questionnaire and analyzed it.

For collecting the primary data we went to various OEM’s and dealers. The

geographical coverage was Pune and PCMC area.

The findings of the project were positive. Alternators market size in Pune is very large

and continuously growing, at an average growth of 20%. Presently total Alternator market

size in Pune among OEM’s is around 77,000 units, which counts to be approximately 230 Cr

in value.

And among dealers the market size is around 4400 units, which counts to be 10 Cr in

value. Thus OEM business counts to be very much large.

The major player among both business areas are CGL, Stamford, KEC, Trident.

Other major finding was of portable size gensets. At dealer level they are in good

demand.

10

CGL is growing fast than market rate in OEM business in Pune, and also they are

able to satisfy customers with their product and service.

CGL is presently no. 1 in Pune in terms of unit wise sales, thus by keeping the

aggressive marketing strategy company can achieve the no. 1 position countrywide.

11

CHAPTER 2

COMPANY PROFILE

12

Crompton Greaves Limited (CG), a member of the BM Thapar Group, is one of India’s

largest private sector enterprises engaged in the manufacture of electrical engineering

products and turnkey projects. Incorporated in 1937, CG is headquartered in a self-owned

landmark at Worli, Mumbai.

The business operations of the Company consists of 21 divisions spread across

Maharashtra, Gujarat, Goa, Madhya Pradesh, Karnataka and Tamil Nadu.

CG is the Indian Market leader across a number of product groups in the electrical

engineering sector. The company enjoys an export presence in over 60 countries, which

includes the emerging South-east Asian and Latin American markets.

CG is a single-point source for a variety of electrical equipment and products. It

addresses all the segments of the power industry from complex industrial solutions to basic

household requirements.

The strategy followed till today includes acquisitions and exceptional financial

structuring to tap opportunities and fuel growth. Though family owned, the organization has

always been professionally managed, and lists employee development and leadership training

as core to its business success.

The company has shown preparedness in meeting evolving customer expectations

through its initiatives of continuous product development, product up-gradation and new

markets.

HISTORY:-

The history of Crompton Greaves goes back to 1878 when Col. R.E.B. Crompton

founded R.E.B.Crompton & Company. The company merged with F.A Parkinson in the year

1927 to form Crompton Parkinson Ltd., (CPL). Greaves Cotton and Co (GCC) was appointed

13

as their concessionaire in India. In 1937, CPL established, it's wholly owned Indian

subsidiary viz. Crompton Parkinson Works Ltd., in Bombay, along with a sales organization,

Greaves Cotton & Crompton Parkinson Ltd., in collaboration with GCC. In the year 1947,

with the dawn of Indian independence, the company was taken over by Lala Karamchand

Thapar, an eminent Indian industrialist. Presently Crompton Greaves is headquartered in a

self-owned landmark building at Worli, Mumbai.

PRODUCTS & SERVICES OFFERED :-

CG comprises four principle Business Groups :

(1) Power Systems

(2) Industrial Systems

(3) Consumer Products and

(4) Telecom.

Nearly two-third of the company’s turnover accrues from product lines in which it

enjoys a leadership position.

Presently, the company is offering wide range of products such as power & industrial

transformers, HT circuit breakers, LT & HT motors, DC motors, traction motors, alternators/

generators, railway signaling equipments, lighting products, fans, pumps and public

switching, transmission and access products. In addition to offering broad range of products,

the company undertakes turnkey projects from concept to commissioning.

The fans and lighting businesses acquired "Super brand" status in January 2004. It is a

unique recognition amongst the country's 134 selected brands by "Super brands", UK.

14

CHAIRMAN & CEO :-

Gautam Thapar is Chairman & CEO of India's foremost

diversified corporation, the Avantha Group. Gautam represents the third

generation of a business family, founded by his grandfather, Karam

Chand Thapar, in Calcutta (now Kolkata) eighty years ago. Over the

decades, the organization has shown resilience and entrepreneurial spirit,

and has continuously reinvented itself without wavering from its core

values of integrity and creating lasting value for its stakeholders.

Gautam began his education at the prestigious Doon School, where he imbibed a

liberal education based on the ideals of secularism, discipline and equality. After studying

chemical engineering in the U.S.A., he returned to India and started his career as a factory

assistant in one of the organization's manufacturing companies. He rose steadily and steered

the organization through a strategic and visionary turnaround, involving resilience and

restructuring, ensuring that the Group attained dominant status in key operating sectors.

Gautam became Group Chairman on 1st July 2006. He sits on the Board of various

companies in India and overseas, and is one of India's youngest and brightest global business

leaders.

15

CHPATER 3

PRODUCT PROFILE

16

INTRODUCTION (ALTERNATORS):-

To cater to the needs and challenges of 21st century, of both its customers who have

placed their confidence in the company throughout the years and those who will join it in the

future Compton Greaves Limited have introduced new AC generators. This is to improve

products towards world class quality and to maintain the status of qualified and reliable

partner.

These AC generators are manufactured using the most advanced technology in all the

facets of manufacturing that is Design, Construction, Processing, Inspection, and Testing to

meet the commitment of “Total Customer Satisfaction”. These AC generators ensure a

continuous power supply and a very prolonged trouble free life.

The design and construction are conceived to facilitate the coupling to the engine in all

the foreseen “Types of Construction”.

GENERAL :-

Rating confirming to the Standards :IS 4722, 13364 (part 1&2), IEC: 34 & BS : 5000

part 99.

5-15 KVA 240V 0.8 pf, 50 Hz, 1 Phase, Slip-Ring type (G2S/G1S Type)

5-82.5 KVA 415V 0.8 pf, 50 Hz, 3 Phase, Slip-Ring type (G2S/G1S Type)

5-25 KVA 240 V 0.8 pf, 50 Hz, 1 Phase, Brushless Type (G2R/G1R Type)

5-625 KVA 415 V 0.8 pf, 50 Hz, 3 Phase, Brushless Type (G2R/G1R Type)

DESIGNATION :- G 2/1 R/S XXX/ X X X

G - AC Generator

17

2/1 - Double Bearing./ 1- Single Bearing.

R/S - with AVR / S-with Slip ring

XXX - KVA Rating

X - Number of poles (4 or 2)

X - Flange SAE No. (1,2, …)

X - Coupling Disc SAE No. ( 1=18//, 2=14//, 3=11.5//, 4=10//, 5=8//, 6=7.5//, 7=6.5//)

CONSTRUCTION :-

In G1S / G2S type AC generators, Armature winding is housed in stator and field

winding is placed on rotor. The DC excitation power is supplied through two small size slip

rings and brush holders & it is controlled by compounding excitation transformer.

In G1R / G2R type AC generators, Armature winding is housed in stator and field

winding is placed on rotor. The DC excitation power is supplied by the Brushless AC exciter

with rotation Rectifier Assembly & it is controlled by Electronic AVR (Automatic voltage

Regulator).

Stator Frame

Stator Core

Stator Main Winding

Stator Auxiliary Winding

Stator / Rotor Insulation System

Rotor Core

End Shield

Bearings

18

Shaft

Slipring And Brush Holder Assly

Rectifier Assembly

Terminals And Terminal-Box Assembly

Accessories

OPERATING PRINCIPLES :-

When started, residual magnetism in the exciter stator core induces a voltage in the

exciter armature. This voltage is rectified by the diodes and fed to the main field winding,

which will circulate the DC current through the field winding. The linkage of DC flux with

the armature winding (Main & Auxiliary winding) will induce voltage in the armature

Main field (Rotor)

Main stator Exciter field

Exciter Rotor(Arma- Ture)

A.V.R

Sensing

Rotating diodes

Power from Aux. wdg.

Output

Set Reference

Mechanical Rotational Power Input

3.1 Operating principle of alternator

19

winding. The induced voltage in the Auxiliary winding is used as a separate source of supply

for the AVR. Sensing of AVR is taken from the main terminals. The DC output of the AVR

is given to the exciter field winding. The AVR regulates the terminal voltage within +/- 1%

from no load to full load by controlling the excitation of the exciter field.

SALENT FEATURES OF CGL AC GENERATOR :-

ELECTRICAL PERFORMANCE :-

(1) AVR used on these machines are of proven design. These are encapsulated against

moisture, sand, salt, humidity and corrosive atmosphere ensuring trouble free

operations under the most demanding conditions. The voltage regulation offered is

+/- 1%.

(2) High induction motor starting capacity -1kVA starts 1 HP (Except for Submersible

Pumps where starting current is > 600% FLC.) under Ideal conditions.

(3) Wave- form distortion on no-load is well within limits i.e. < 5% as per IS standard.

(4) Armature winding is 2/3rd pitch, which along with auxiliary winding excitation

system provides better performance.

(5) Damper winding on poles ensures smooth parallel operation with similar and

dissimilar machines.

(6) Liberally rated diodes used in rotating rectifier assembly ensures high reliability.

(7) A Metal Oxide Varistor protects the rotating diodes against the surge voltages.

FORMULAE

TO OBTAIN SINGLE PHASE THREE PHASE

Kilowatts (KW) V*I*PF / 1000 1.732*V*I*PF / 1000

kVA V*I / 1000 1.732*V*I / 1000

20

CHPATER 4

OBJECTIVE

21

OBJECTIVES OF THE STUDY:-

1. To find the market potential of Alternators in Pune region.

2. To find the market share of CGL alternators in Pune region.

3. To study the markets for Alternators, market size, major players and their rankings in

Pune region.

4. Search for potential buyers (OEMs, dealers for the product in the market targeted)

5. Establish business contacts and communication with potential customers.

6. To find the satisfaction level of the customers.

7. To find the problems faced by CGL alternators customers.

22

CHAPTER 5

RESEARCH METHODOLOGY

23

RESEARCH METHODOLOGY:-

(1) Segmentation of market in OEM’s and Dealer.

(2) Preparing a Questionnaire for all the above segments.

(3) Collecting data about OEM’s and Dealers of Gen-set In pune by Primary Method.

(4) Market Survey of all Segments for collecting data about market potential of alternators

in Pune region.

(5) Tabulate and Analyze the data.

SAMPLING PLAN :-

Sorted out 18 Original Equipment manufacturer (OEM’S) of Gen-sets and

49 Dealers of Gen-sets in Pune region

GEOGRAPHICAL COVERAGE :-

Pune City

PCMC

Industrial areas in Pune and PCMC.

24

CHAPTER 6

DATA ANALYSIS

25

‘OEM’ DATA ANALYSIS AND INTERPRETATION

(1) To study market share & growth rate of Alternators :-

2006-2007 2007-2008 2008-2009

Company

Name

VALUES

(Units)

% Market

Share

VALUES

(Units)

% Market

Share

VALUES

(Units)

% Market

Share

CGL 15727 29.28 19105 31.16 29275 38.08

KEC 8460 15.75 9494 16.01 10658 13.86

TRIDENT 11083 20.63 12017 20.26 14615 19.01

STAMFORD 16450 30.62 18200 30.68 19336 25.15

OTHERS 2000 3.72 2500 4.21 3000 3.90

Total 53720 59316 76884

(6.1) Company wise sales in terms of units ( Source- Secondary data of survey)

There is seen steady growth in market share of Crompton Greaves ltd. in Alternators

market. Also market share has grown tremendously in 2008-2009 by 7%.

We can say from table that all players in Alternators market are doing good business. These

are:-

1. CROMPTON GREAVES LTD.

2. STAMFORD

3. TRIDENT

4. KEC

26

.

% Market Share in 2006-07

29%

16%21%

30%

4% CGL

KEC

TRIDENT

STAMFORD

OTHERS

% Market Share in 2007-08

31%

15%20%

30%

4% CGL

KEC

TRIDENT

STAMFORD

OTHERS

27

% Market share in 2008-09

38%

14%19%

25%

4%CGL

KEC

TRIDENT

STAMFORD

OTHERS

Interpretation:

As we can see from the table, Alternators market size is very large and continuously

growing, at an average growth of 20%. Presently total Alternator market size in Pune among

OEM’s is around 77,000 units, which counts to be 230 Cr in value.

Crompton Greaves market share regarding overall sales of Alternator considering all

market segments has increased from 31% to 38% from year 2007/08 to 2008/09. And 10%

growth rate expected in year 2009/10 which will take market share to 41%.

28

2. To study Rating of Alternators OEM Purchase.:-

Range Frequency

Upto 50 kVA 18

62.5 to 125 kVA 16

140 to 250 kVA 15

275 to 625 kVA 12

625 and above 14

Range of alternators used

1816 15

1214

0

5

10

15

20

Upto50

140-250

Above625

Range

Fre

qu

en

cy

Frequency

Interpretation:

As we visited 18 OEM’s 77% of OEM’s are dealing with alternators above

625 kVA, which contributes highest to the business. Also from our observation very less

OEM’s are dealing in alternators below 5 kVA. Thus we can say that OEM market is majorly

dealing in higher range of alternators.

29

3. To study importance of various influencing factors while making buying decision for

OEM’s. (5= Very Important, 4=Important, 3=Neutral, 2= Not Important, 1= Not at all

Important)

BRAND:

To study Brand Affecting Purchase Decision of OEM’s Customer.

In all 18 OEM’s replied to this question

10 customers replied Brand is very Important in Purchase Decision .

7 customer replied Brand is Important in P.D.

1 customer replied Brand is Neutral in P.D.

Brand Affecting Purchase Decision

54

32

1

10

7

3

0 00

2

4

6

8

10

12

1 2 3 4 5

Rating Ofbrands

NO. OfCustomers

Interpretation:

As we can see from Table Brand is Very Important for 55 %OEM’s. Whereas 38%

Replied brand is Important . Rest of customer replied brand is neutral for us.

30

PRICE:-

To study Price Affecting Purchase Decision of OEM’s Customer.

In all 18 OEM’s replied to this question.

14 customers replied price is very Important in Purchase Decision

4 customers replied price is Important in Purchase Decision

Price Affecting Purchase Decision

54

32

1

14

4

0 0 00

2

4

6

8

10

12

14

16

1 2 3 4 5

Rating OF Price

NO. OfCustomers

Interpretation :-

As we can see from Table Price is Very Important for 78 %OEM’s. Whereas 22%

Replied Price is Important for them .

PRODUCT FEATURES:

. To study Product Feature and Quality Affecting Purchase Decision of OEM’s

Customer


14 customers replied product Feature is very Important in Purchase Decision

4 customers replied product Feature is Important in Purchase Decision

31

Product Feature Affecting P.D

54

32

1

14

4

0 0 00

2

4

6

8

10

12

14

16

1 2 3 4 5

Rating OFProduct Feature

NO. OfCustomers

Interpretation:

As we can see from Table Product Feature is Very Important for 78 %OEM’s.

Whereas 22% Replied product Feature is Important for them .

Service Network :-

. To study service Network Affecting Purchase Decision of OEM’s Customer.


11 customers replied service Network is very Important in Purchase Decision

6 customers replied service Network is Important in Purchase Decision

1 customers replied service Network is Neutral in Purchase Decision

32

Service Network Effecting P.D

54

32

1

11

6

10 0

0

2

4

6

8

10

12

1 2 3 4 5

Rating OF ServiceNetw ork

NO. Of Customers

Interpretation:-

As we can see from Table service Network is Very Important for 61 %OEM’s.

Whereas 34 % Replied service Network is Important for them . Rest of customer replied

service network is neutral for them.

Delivery:-

To study Delivery Affecting Purchase Decision of OEM’s Customer.


11 customers replied Delivery is very Important in Purchase Decision

6 customers replied Delivery is Important in Purchase Decision

1 customers replied Delivery is Neutral role play in Purchase Decision

33

Delivery effecting P.D

54

32

1

11

6

10 0

0

2

4

6

8

10

12

1 2 3 4 5

Rating OF Delivery.

NO. Of Customers

Interpretation:-

As we can see from the table Delivery of product is very important for most of OEM’s

purchase decision

Availability:-

To study Availability of Product Affecting Purchase Decision of OEM’s Customer.


12 customers replied Availability of Product is very Important in Purchase

Decision

4 customers replied p Availability of Product is Important in Purchase Decision

2 customers replied Availability of Product is play neutral role in Purchase

Decision .

34

Availbilty Effecting P.D

54

32

1

12

4

2

0 00

2

4

6

8

10

12

14

1 2 3 4 5

Rating OF Avalibilty.

NO. Of Customers

Interpretation:-

As we can see from the table Availability of product is very important for most of

OEM’s purchase decision

Consultant Recommendation:-

To study Consultant Recommendation about Product Affecting Purchase Decision of

OEM’s Customer.


2 customers replied Consultant Recommendation is very Important in P.D.

9 customers replied Consultant Recommendation is Important in P.D.

7 customers replied Consultant Recommendation is play Neutral role in P.D.

35

Consultant Recommendation Effecting P.D

54

32

10

2

9

7

00123456789

10

1 2 3 4 5

Rating OF ConsultantRecommendation

NO. Of Customers

Interpretation:

As we can see from Table Consultant Recommendation is Play Neutral role in

OEM’s Purchase Decision., as well as for some OEM’s its not Important.

4.BRAND ASSOCIATION ATTRIBUTES:

To study Brand positions of various Alternators manufacturing companies for OEM

customer.

In this 6 OEM’s replied to this question

4 customers replied Brand of Stamford is good i.e. 1st rank.

2 customers replied Brand of CG is good i.e. 1st rank.

36

Brand Customers prefer most

67%

33%

0%0%

10%

20%

30%

40%

50%

60%

70%

80%

Stamford CGL KEC

Brand Customersprefer most

Interpretation _

As we can see from table customers prefer brand Stamford more as compare to others.

Availability:-

To study Availability of various Alternators manufacturing companies for OEM customer


3 customers replied Availability of Stamford is more in market i.e. 1st rank.

2 customers replied Availability of CG is good i.e. 1st rank

Availability more in market

60%

40%

0%0%

10%

20%

30%

40%

50%

60%

70%

Stamford CGL KEC


37

Interpretation :-

As we can see from table Stamford and CGL are more penetrated in market rather than

other.

Product features:-

To study Product Features of various Alternators manufacturing companies for OEM

customer

Product feature better

60%

40%

0%0%

10%

20%

30%

40%

50%

60%

70%

Stamford CGL KEC


Interpretation:-

As we can see from table more customer prefer Stamford when product feature is

considered.

Service Network:-

To study Service Network of various Alternators manufacturing companies for OEM

customer

38

Service Network Better

40%

60%

0%0%

10%

20%

30%

40%

50%

60%

70%

Stamford CGL KEC


Interpretation:-

As we can see from table Service Network of CGL is better than Others.

Advertising:-

To study Advertising of various Alternators manufacturing companies for OEM customer

advertising

33%

67%

0%0%

10%

20%

30%

40%

50%

60%

70%

80%

Stamford CGL KEC


Interpretation:-

As we can see from table advertising of CGL is better than Stamford.

39

5.To study the satisfaction with following feature of CGL alternator:-


Paint:- 5 customer replied they are satisfied, 1 replied he is not satisfied

Finish :- all replied they are satisfied with finish.

Aesthetics:- all replied they are satisfied with Aesthetic

Packing:- all replied they are satisfied with Packing.

% customer Satisfied

Paint, 83%

Finish, 100%Aesthetic,

100%

Packing, 100%

Paint

Finish

Aesthetic

Packing

6.To study the what customer think about current pre sale support offered by CGL to

them .

Rate CGL alternator as per the fulfillment their

expectation:-


Very good:- 0 customer replied

Good:-5 replied good.

Average:-1 replied average.

Poor:-0 replied poor.

40

Current Pre Sale offered by CGL, Accoridng to them CGL alternator fullfill their Expectation

0%

83%

17% 0%Very good

Good

Average

Poor

Interpretation:-

As we can see the table 83% customers feel Good, CGL Alternator

fulfill their expectation.

7.To study the what customer think about the current post sale support offered by CGL

to them .

Rate CGL alternator as per the fulfillment their

expectation


Very good:- 0 customer replied,

Good:-4 replied good.

Average:-2 replied average

Poor:-0 replied poor

41

Current Post Sale offered by CGL, Accoridng to them CGL alternator fullfill their Expectation

0%

67%

33%0%

Very good

Good

Average

Poor

Interpretation:-

As we can see the table 67% customers feel Good, CGL Alternator

fulfill their expectation. Rest 33% feel Average CGL alternator fulfill their

expectations.

8.To study the CGL customer are satisfied with response for product modification and

development.


Yes:- 4 customer say,

No:- 1 customer say

42

% customer satisfied

79%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No


Interpretation:-

As we can see from table 79% customer are satisfied From CGL with

response for product modification and development.

9.To study the CGL customer are satisfied with overall completion of contract By CGL.


Yes:- 5 customer say,

No:- 1 customer say

43


83%

17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No


Interpretation:-As we can see from table 83% customer are satisfied

with overall completion of contract By CGL. But there is 17% who are saying no,

so CGL should look for this customers so that they are not lost.

44

‘DEALER’ DATA ANALYSIS AND INTERPRETATION

(1) To study market share & growth rate of Alternators :-

2006-2007 2007-2008 2008-2009

Company

Name

VALUES

(Units)

% Market

Share

VALUES

(Units)

% Market

Share

VALUES

(Units)

% Market

Share

CGL 934 26.69% 1068 27.45% 1400 32.36%

KEC 597 17.06% 725 18.63% 519 11.99%1

TRIDENT 75 2.14% 55 1.41% 90 2.08%

STAMFORD 493 14.08% 542 13.93% 632 14.61%

OTHERS 1400 40.01% 1500 38.56% 1685 38.95%

Total 3499 3890 4326

(6.2) Dealer wise sales in terms of units

From above table it can be seen that CGL, Stamford, KEC have good market share even

at dealer level also. It is seen that KEC market share has decreased by 7% in 2008-09,

whereas CGL has gain significant 5% share in the market. Thus we can say that CGL has

grabbed the KEC customers. It is also seen that the other market share is very large at dealer

level (Almost 40%), which majorly includes portable dealers. Thus Portable Genset market is

very strong at dealer level. And all other major players are doing well..

45

Market Share in 2006-07

27%

17%2%14%

40%CGL

KEC

TRIDENT

STAMFORD

OTHERS


27%

19%1%14%

39%CGL

KEC

TRIDENT

STAMFORD

OTHERS

46


32%

12%2%15%

39%CGL

KEC

TRIDENT

STAMFORD

OTHERS

Interpretation :-

From above graph we can see that market of dealer is growing at a speed of 11%,

whereas, others are below market growth rate so definitely there is tremendous opportunity in

this sector. Major OEM players like CGL, KEC, Stamford can target the other segment

which mainly include the portable size gensets like Honda.

(2) Brand of alternators used by dealers :-

For this 76 frequencies were noted.

Out of which 22 were dealing with Stamford

15 with CG,

3 with trident

4 with LS

20 with KEC and 12 with others which majorly includes portable gensets.

47

The graph of this is shown below.

Alternators used by Dealers

29%

20%4%5%

26%

16% Stamford

CG

Trident

LS

KEC

Others

Interpretation :-

It is hereby noted that good no of dealers are dealing with Stamford and KEC, but still

CG is having more market share than both of these brands. Reason being definitely the

quantity sold by them. Others percentage is less than major players which shows that less

quantity of dealers deal in portables but they sell high.

(3) Range of alternators used by dealers :-

For this 110 frequencies were noted.

Out of which 45 were dealing with alternators up to 50 KVA

30 were dealing with alternators ranging from 62.5 to 125 KVA

25 were dealing with alternators ranging from 140 to 250 KVA

22 were dealing with alternators ranging from 275 to 625 KVA

And 18 were dealing with alternators above 625 KVA.

48

The graph is shown below.

Range of Alternators

32%

21%18%

16%

13% Upto 50KVA

Upto 125 KVA

Upto 250 KVA

Upto 625 KVA

Above 625 KVA

Interpretation :-

Graph shows that more no. of dealers are dealing with alternators up to 50 KVA,

whereas all other ranges except above 625 are comparative. Above 625 range is handled by

less no. of dealers.

(4). To study importance of various influencing factors while making buying decision

for Dealers. (5= Very Important, 4=Important, 3=Neutral, 2= Not Important, 1= Not at

all Important)

BRAND:

To study Brand Affecting Purchase Decision of Dealer.

In all 49 dealers replied to this question

26 customers replied Brand is very Important in Purchase Decision .

49

19 customer replied Brand is Important in P.D.

5 customer replied Brand is Neutral in P.D.

Whereas only 2 people replied Brand is not so important in P.D.

Whereas no customer denied that brand is not at all important in P.D.

Brand affecting P.D.of dealer

1 2 3 4 5

02

5

19

26

0

5

10

15

20

25

30

1 2 3 4 5

Rating of brand

No

. o

f p

eop

le

Ratings of brand

No. of people

Interpretation :-

From the above graph it is evident that building a brand in customer mind is very

important to most of the people, whereas some may look for other featues.

PRICE:-

To study Price Affecting Purchase Decision of Dealers.

In all 49 dealers replied to this question.

30 customers replied price is very Important in Purchase Decision

17 customers replied price is Important in Purchase Decision

Only 2 were neutral, and no customer denied the importance.

50

Price affecting P.D. of Dealer

1 2 3 4 5

0 02

17

30

0

5

10

15

20

25

30

35

1 2 3 4 5

Rating of Price

No

. O

f P

eo

ple

Rating of Price

No. Of People

Interpretation :-

From above graph it is evident that dealer do look for price as it affects their

profitability, so price is the important factor in dealers market.

PRODUCT FEATURES:-

To study Product features affecting Purchase Decision of Dealers.


28 customers replied product features is very Important in Purchase Decision

19 customers replied product features is Important in Purchase Decision

Only 2 were neutral, and no customer denied the importance.

51

Product features affecting P.D.

1 2 3 4 5

0 02

19

28

0

5

10

15

20

25

30

1 2 3 4 5

Rating of Product Features

No

. o

f P

eop

leRating of Product feature

No. Of People

Interpretation :-

This clearly shows that though dealers are looking for profitability, they cannot ignore

the product features at the cost of more profitability even in dealers market.

Delivery:-

To study Delivery Affecting Purchase Decision of OEM’s Customer.


22 customers replied Delivery is very Important in Purchase Decision

17 customers replied Delivery is Important in Purchase Decision

10 customers replied Delivery plays Neutral role in Purchase Decision

Whereas no customer denied the importance.

52

Delivery affecting P.D.

1 2 3 4 5

0 0

10

17

22

0

5

10

15

20

25

1 2 3 4 5

Rating of delivery

No

. o

f p

eop

le

Rating of delivery

No. Of people

Interpretation :-

As no customer denied the importance it is evident that delivery is and important factor

in purchase decision of dealers.

(5) Inquiries generated from different industries :-

We find out that from where the dealers get maximum inquiries for alternators. We

consider the major segments who use gensets like telecom, hospitals and retail. In all we got

132 reply with different industries. Many dealers were getting inquiries from more than 2/3

industries.The graph shows values and different percentage of inquiries from different

industries.

53

No. of inquiries from industries

41, 31%

31, 23%

39, 30%

14, 11% 7, 5% Telecoms

Hospitals

Retail

Government

Others

Interpretation :-

We can say that telecom and retail industries are more interested in dealer level, as

compared to hospital. Reason may be the less use of gensets in hospital industry. So the

company may appoint some more dealer to track these market.

(6) Past experience with CGL :-

Out of all 49 customer 22 were past or current customer of CGL, whereas 22 have not

deal with CGL at all. This is shown below.

54

Past experience with CGL

22, 45%

27, 55%

Yes

No

Interpretation :-

The presence of CGL with 45% of dealers shows good penetration of CGL in dealer

market also, whereas still there is 55% of customer who can be trapped.

55

CHAPTER 7

FINDINGS

56

FINIDING:-

1. Alternators market size is very large and continuously growing, at an average growth of

20%. Presently total Alternator market size in Pune among OEM’s is around 77,000 units,

which counts to be 230 Cr in value.

Crompton Greaves market share regarding overall sales of Alternator considering all

market segments has increased from 31% to 38% from year 2007/08 to 2008/09. And 10%

growth rate expected in year 2009/10 which will take market share to 40%.

2. Alternator market size dealer market is also considerably affecting the market, which

counts to be approximately 4400 units. This counts to be 10 Cr in value.

3. In dealers market considerable market size is occupied by portable gensets, so this can be

the future target of major OEM players. Dealers market is also growing at considerable 11%,

whereas CGL is growing at 5% in dealers market.

4. CGL, Stamford, Trident and KEC are major players in Alternators both in OEM and dealer

market.

5. CGL is able to produce customer satisfaction among both OEM and dealer customer.

57

CHAPTER 8

CONCLUSION

58

CONCLUSION:-

SWOT ANALYSIS

STRENGTH

1. WELL KNOWN BRAND

2. WELL ESTABLISHED NETWORK

3. WIDE AND SUPPORTIVE DEALERS NETWORK

4. GOOD MARKET SHARE

5. GROWING AT CONSIDERABLE RATE

WEAKNESS

1. NOT SO STRONG IN DEALERS MARKET

2. BRAND ASSOCIATION ATTRIBUTE LESS AMONG CUSTOMERS

3. SOMEWHAT PRICE BASED MARKETING

OPPORTUNITY

1. OPPORTUNITY IN DEALERS AS WELL AS OEM MARKET TO INCREASE

MARKET SHARE.

2. OPPORTUNITY TO ENTER IN SMALL RANGE ALTERNATORS.

THREAT

1. WHAT IS BEING CONTEMPLATED BY CG, CAN BE TAKEN UP BY THE

COMPETITORS

2. THREAT FROM STRONG COMPETITOR LIKE STAMFORD.

59

CGL having the measure percentage share of around 38% in Alternators market . CGL has

managed to make its place at First position . But still Crompton greaves’ marketing strategies

and advanced technological development regarding Alternator can take the company higher

with the market share of 45% in forthcoming year.

CGL has proved itself very strong on the front of

a. Brand name

b. Advertisement

c. Availability and delivery of the product

PRODUCT

Crompton Greaves Ltd. (CG) seems to be scoring good on the attribute of past

experience. This clearly indicates that CG may not either original supplier but still accepted

as a performing product. The fact that brand recall for CG is on a higher side reinforces this.

It also indicates that CG marketing team is very proficient at timely recognizing customer’s

need and executing commercial negotiations. This can be confirmed in the light of CG’s

position of a market leader.

PHYSICAL DISTRIBUTION

Yet another forte of CG.CG is seen very favorable in terms of delivery i.e. , logistics and

service network. This indicates one large issue – fulfillment of commitments for keeping

customers happy and satisfied. In fact CG enjoys leadership status on these issues.

PROMOTIONS

This entails two attributes namely advertising and information dissemination. And these

indeed are the aching nerves. Off these, advertising is still okay- as none of the competitors is

enjoying a great recall on this attribute. Information about product seems to be missing with

60

the customers. Low scores accomplished by CG on product features and product information

amply prove this.

DERIVATIVE

CG is able to sell its wares on the virtues of being an old company and its ability to

negotiate well with the customer supported by an established product. This narrows down the

focus to the procedure called ‘selling’ and not marketing. This strategy has been very

successful in the past would keep on giving rewards for another 4-5 years or so

61

CHAPTER 9

RECOMMENDATIONS

62

RECOMMENDATIONS:

1. Marketing communication with the consultants, OEMs and dealers.

2. CGL should make a thorough and timely communication with OEMs, dealers and

consultants. It will help analyzing the market position, current trends and latest

technologies in Alternators.

3. Promotional Strategies-

I. Producing Technical literature

II. Product Approval From Consultants/OEMs.

4. Minimizing the sales lead time .

5. Minimizing the manufacturing time to improve availability and delivery standards

6. Determining seasonal Purchasing behavior of the end users.

7. Providing the best after sales service and Schemes like free maintenance for specific

time period after purchase.

8. Service should be on time.

9. We have to come in low range also means below 5 kva there is also a demand of this

range, particular in commercial sector .

63

CHAPTER 10

BIBLIOGRAPHY

64

Books:

1. Super Brands.

2. Company Product manual.

3. Company Profile Broucher.

4. Research Methodology C.P Kothari .

Websites:

1. www.cgonline.com

2. www.cromptongreaves.com

65

http://www.cromptongreaves.com/

ANNEXURE

CUSTOMER FEEDBACK FORM FOR OEM’S

Personal Details

Name of the Organization: .....................................

Contact Person: ......................................................

Designation: ….........................................................

Contact No. .................. Email Id. ...................

Address: ............................................................

..............................................................

1. Which brand of alternator are you using?

CG Stamford Trident LS KEC Others(................)

2. What KVA alternator are you using presently?

Up to 50 KVA 62.5 KVA TO 125 KVA 140 KVA to 250 KVA

66

275 KVA to 625 KVA 625 KVA AND ABOVE

3. DECISION MAKERS

Production Purchase R&D Maintenance Finance

Name

Designation

Mobile

Contact time

4. ALTERNATORS PURCHASED IN THE LAST THREE YEARS

Make YEAR STAMFORD KEC CGL TRIDENT LS

Type

ALTERNA

TORS

2006

2007

2008

5. FACTORS AFFECTING PURCHASE DECISION -

[(5=Very Important, 4=Important, 3=Neutral, 2= Not Important, 1= Not at all

Important)]

Brand Past Experience

67

Price Delivery

Product Features Availability

Service Network Dealer Network

Advertising Availability Of Information

Original/Existing Equipment Make Consultant’s Recommendation

6. BRAND ASSOCIATION ATTRIBUTES

[Following are given some attributes. You are requested to recall two top-of-the-mind brands

best associated with these attributes]

a. Brand 1) ________ 2)________

b. Availability 1) ________ 2)________

c. Product Features 1) ________ 2)________

d. Dealer network 1) ________ 2)________

e. Service network 1) ________ 2)________

f. Delivery 1) ________ 2)________

g. Past Experience 1) ________ 2)________

h. Advertising 1) ________ 2)________

I. Product Information 1) ________ 2)________

7. Rate Crompton Greaves Ltd. alternator on the following factors? Compare to?

Stamford Trident LS KEC

68

(1- Excellent, 2- Very good, 3- Good, 4- Average, 5- Poor)

8 . Are you satisfied with following features alternator?

Yes No If no pl. comment

- Paint

- Finish

Aesthetics

Packing

9. What do you think about the current Pre sale support offered to you by CGL and

what change do you expect ?

. ......................................................................................................................................

69

1 2 3 4 5

Product Quality

Brand Visibility

Range of Products

Customer

Relationship

Rate CG alternator as per the fulfilment your expectations?

Very good Good Average Poor

10. What do you think about the current Post purchase services offered to you by CGL and

what changes do you expect?

........................................................................................................................................

Rate CG alternator as per the fulfilment your expectations?


11. Are you satisfied with Response for product modification & development?

Yes No

Reason/Suggestions: ....................................................................

12. Are you satisfied with overall completion of Contracts by CG? Yes No

Reason/Suggestions: ...................................................................

13. How do you rate CG on initial pricing?

70


14. Do You get post purchase service of alternator in time?

Yes No If no pl. comment

15. What kind of complaints do you often face with CGL alternators?

…......................................................................

16. Do you have any suggestions?

.................................................................................................................................

...

……………………………………………………………………………………

……………

71

CUSTOMER FEEDBACK FORM FOR DEALERS

Personal Details

Name of the Organization: .....................................

Contact Person: ......................................................

Designation: ….........................................................

Contact No. .................. Email Id. ...................

Address: ............................................................

.............................................................

1. Which brand of alternator are you using?

CG Stamford Trident LS KEC Others(................)

2. What KVA alternator are you using presently?

Up to 50 KVA 62.5 KVA TO 125 KVA 140 KVA to 250 KVA

72

275 KVA to 625 KVA 625 KVA AND ABOVE

3. ALTERNATORS PURCHASED IN THE LAST THREE YEARS

Make YEAR STAMFORD KEC CGL TRIDENT LS

Type

ALTERN

ATORS

2006

2007

2008

4.. Which company alternator you are coupled with?

………………………………………………………………………………………

5. FACTORS AFFECTING PURCHASE DECISION-

[(5=Very Important, 4=Important, 3=Neutral, 2= Not Important, 1= Not at all

Important)]

Brand Past Experience

Price Delivery

Product Features Availability

Service Network Dealer Network

Advertising Availability Of Information

Original/Existing Equipment Make Consultant’s Recommendation

73

6.. Are you satisfied with current company alternator?

Yes No. If no comment

7. From where you get the inquiries of alternators?

Telecom Hospitals Retail Govt. Others

8.. Have you any past experience with CGL in alternators ?

Yes No

If Yes then respond………………….

Good Bad Average

8. Why have you not purchased CGL alternators?

Quality Price Others

9. Any Suggestion and comments.

……………………………………………………………………………………

74

…………………………………………………………………………………….

LIST OF MAJOR OEM’S

1) Greaves Cotton

2) Veena Industries Pvt. Ltd.

3) Tafe Motors(Eicher)

4) Ashok Leyland

5) Mahindra

6) Kala Gensets

7) KEC

8) Cummins Diesel Sales & service Ltd/ Newage Electrical.

9) Shree Diesel Services

10) Accurate Power Systems

11) Aryan Diesel Tech. Pvt. Ltd.

12) Avish Aviation equipment Pvt. Ltd.

13) Ador Welding Ltd.

14) Gmmco Ltd.

15) Chetan Engineers

75

market potential of alternators in pune

Documents

lighting businesses acquired

making buying decision

crompton greaves limited

play neutral role

electrical engineering products

portable size gensets

dc excitation power

dealer wise sales