CHAPTER - I INTRODUCTION

1.1 Research Background:The worldwide electric power industry provides a vital service essential to modern life. It provides the nation with the most prevalent energy form known in history electricity. This project consists of a detailed study which was undertaken at Havells India Ltd on the companys overall functioning. The project explains the principles and practices of the organization. Havells is an electrical and power distribution equipment manufacturer in India. It owns some of the prestigious global brands. The main aim of Havells is to provide best electrical & lighting solutions and to be a globally recognized firm. To achieve this it concentrates more on building long term relationships with all our associates, customers, partners, and employees. The organization functions with various departments such as Marketing, Finance, Personnel and Production. It maintains a cross-department interaction for achieving the organizations effectiveness. The departments are driven by qualified and experienced professionals backed by an efficient work force. It encourages employees to be participative, innovative and creative and thus building a team spirit which helps them to realize collective potential. The products of the company have a good reputation in the market and hence the growth of the company is very much imminent.

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1.1.1 INDUSTRY PROFILE:Prospects of the Indian Electric Industry: Like every other industrial sector in India, the Indian Electrical Industry too is slowly emerging from out of its "protective cover". For far too long has Indian Industry remained shackled and consequently inward looking. Over the past fifty years there was no exposure to global players and competition, with the result that the Industry grew up in a sheltered environment, dependent on the Government for everything, from licenses to protection to tariffs. Each one of these interventions was aimed at securing protection for oneself and ensuring growth of ones own organization at the cost of industry and the nation at large. Lack of global competition encouraged a "cost plus" approach, where every conceivable cost increase was passed on to the customer. There was thus no motivation to reduce costs.

As per the recent survey, the global electrical & electronics market is worth $1,038.8 billion, which is forecasted to grow to $ 1,216.8 billion at the end of the year 2008. If we talk of electrical & electronics production statistics, the industry accounted for $1,025.8 billion in 2006, which is forcasted to reach $1,051.5 billion in future. At the outset, it must be stated that the reduced domestic demand is at best a temporary phenomenon. The power sector in India is bound to grow and this will undoubtedly boost demand from the Utilities, quite apart from the industrial demand which will continue to grow with increased industrial output. The poor financial health of the SEBs is however a damper that cannot be wished away in the short term. This will continue to plague corporate in the Electrical Industry, until the SEB restructuring and unbundling brings a turnaround in the medium term.

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1.1.2 COMPANY PROFILE:Havells India Ltd is a billion-dollar-plus organization, and is one of the largest & India's fastest growing electrical and power distribution equipment manufacturer with products ranging from Industrial & Domestic Circuit Protection Switchgear, Cables & Wires, Motors, Fans, Power Capacitors, CFL Lamps, Luminaries for Domestic, Commercial & Industrial applications, Modular Switches & Bath fittings covering the entire gamut of household, commercial and industrial electrical needs.

Havells owns some of the prestigious global brands like Crabtree, Sylvania, Concord, Luminance, Linolite & SLI Lighting. With 91 branches / representative offices and over 8000 professionals in over 50 countries across the globe, the group has achieved rapid success in the past few years. Its 7 state-of-the-art manufacturing plants in India located at Haridwar, Baddi, Noida, Faridabad, Bhiwadi, Alwar, Neemrana, and 9 state-of-the-art manufacturing plants located across Europe, Latin America & Africa churn out globally acclaimed products. Havells is a name synonymous with excellence and expertise in the electrical industry. Its 20000 strong global distribution network is prompt to service customers. The company has acquired a number of International certifications, like BASEC, CSA, KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore), TSE (Turkey), SNI (Indonesia) and EDD (Bahrain) for various products. Today, Havells and its brands have emerged as the preferred choice of electrical products for discerning individuals and industrial consumers both in India and abroad.

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In an attempt to transform itself from an industrial product company to a consumer products company, Havells launched the consumer electrical products such as CFLs, Fans, and Modular Switches & Luminaries. The essence of Havells success lies in the expertise of its fine team of professionals, strong relationships with associates and the ability to adapt quickly and efficiently, with the vision to always think ahead. Vision: "To be a globally recognized corporation that provides best electrical & lighting solutions, delivered by best-in-class people." Mission: To achieve their vision through fairness, business ethics, global reach, technological expertise, building long term relationships with all our associates, customers, partners, and employees. VALUES: Customer Delight:

A commitment to surpassing our customer expectations. Leadership by example. A commitment to set standards in their business and transactions based on mutual trust.

Integrity and Transparency:

A commitment to be ethical, sincere and open in their dealings.

Pursuit of Excellence: A commitment to strive relentlessly, to constantly improve themselves, their teams, their services and products so as to become the best in class.

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MILESTONES:2009

Set up of fully automatic switchgear manufacturing plant at Baddi. Consolidation of CFL manufacturing plant at Neemrana for domestic and export purposes.

2008 :

First Indian CFL manufacturers to have adopted RoHS, European norms on Restriction of Hazardous Substances in CFLs.

Set up of Global Corporate office, QRG Towers at Expressway Noida

Investment of Rs.50 Crores in Global Center for Research and Innovation (CRI)

2007 :

Set-up of Capacitor manufacturing plant in Noida, UP with the capacity of 6, 00,000 kVAr per month.

Acquired the Lighting business of a Frankfurt based company "Sylvania", a global leader in lighting business and now the company's turnover crosses US$ 1 Billion.

Warburg Pincus, a global private equity firm and one of the largest investors in India, invested US $110 million in Havells India Ltd. Havells issued fresh shares to Warburg Pincus, representing approximately 11.2% of the fully diluted share capital of the company.

QRG Group entered healthcare business by acquiring a majority stake in Central Hospital and Research Centre, Faridabad.

2006 :

Crabtree India merged with Havells India. Added CFL production unit in Haridwar manufacturing plant.5

Expansion at Alwar manufacturing plant for increase of production capacity.

Expansion at Baddi manufacturing plant and set-up of an Export Oriented Unit.

First Company to get the ISI Certification for complete range of CFLs.

Started mid-day meal program at Alwar, Rajasthan caters to 10,000 students from 77 schools.

2005 :

Set up manufacturing plant in Haridwar, Uttaranchal for manufacturing Fans.

Awarded the KEMA certification by The Dutch Council for Accreditation, making QRG the only group to attain this certification.

Set up of R&D Center in Noida H.O. Set up manufacturing plant at Baddi , HP for manufacturing of Domestic Switchgear.

2004 :

Set up a manufacturing plant for manufacturing of CFL at existing manufacturing plant in Faridabad, Haryan.

Set up a manufacturing plant for manufacturing of Ceiling Fans at Noida, UP.

Set-up our own marketing office in London through our wholly owned subsidiary company Havells U.K. Ltd.

In December, 2004 placed 235 fully convertible debentures of Rs. 10 Lacs on M/s. Shine Ltd., Mauritius and the debenture will be converted in June, 2006.

Attained the CE certificate for CFL. Standard Electrical Company becomes a 100% Subsidiary

2002 :

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of the company.

Attained the IEC certification for Industrial switchgear and CSA certification for all manufacturing plants.

2001 :

Acquired business of Havells Industries Ltd, MCCB of Crabtree India Limited and merged ECS Limited in the company to consolidate its area of core competence.

2000 :

Acquired controlling stake in Duke Arnics Electronics (P) Limited engaged in manufacturing of Electronic MetersSingle Phase, Three Phase, Multi Function, Tri Vectors.

Acquired controlling interest in an industry major-Standard Electricals Ltd.

1998 :

Introduced high-end Ferraris Meters in Joint Venture with DZG, Germany.

1997 :

Acquired Electric Control & Switchboards at NOIDA, UP for manufacturing customized packaged solutions.

1996 :

Acquired a manufacturing plant at Alwar, Rajasthan for Power Cables & Wires.

Entered into a Joint Venture with Electrium, UK for manufacturing Dorman Smith MCCBs and Crabtree Modular Plate Switches.

1996 :

Acquired a manufacturing plant at Alwar, Rajasthan for Power Cables & Wires. Entered into a Joint Venture with Electrium, UK for manufacturing Dorman Smith MCCBs and Crabtree Modular Plate Switches.

1993 :

Set up another manufacturing plant at Faridabad, Haryana for Control Gear Products.

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1990 :

Set up a manufacturing plant at Sahibabad, UP for Changeover Switches

1987 :

Started manufacturing MCBs at Badli, Delhi in Joint Venture with Geyer, Germany.

1.1.3 PRODUCT PROFILE:Havells India Ltd has emerged as preferred choice for discerning range of individual and industrial consumers. The firms products are approved by international quality bodies such as KEMA, UL,CE,CSA and VDE and are as per IEC standards. The firms commitment is to manufacture excellence and providing world-class quality products at affordable prices in creating the industry more energy efficient, now from even wider spectrum of products from Havells; it offers a complete solution which is not only safe and reliable but also helps to save energy. At Havells, it is their philosophy to continuously upgrade products in order to best serve modern discerning consumers. They feel proud and privileged to share such innovation of making Havells more environment friendly, Havells aims at providing versatile range of products and set a new benchmark for quality and performance.

PRODUCTS:1) BUILDING CIRCUIT PROTECTION 2) INDUSTRIAL CIRCUIT PROTECTION 3) MOTORS 4) CAPACITORS 5) LIGHTING8

6) CFL 7) FANS 8) MODULAR PLATE SWITCHES 9) CABLES AND WIRES 10)DIGITAL DIMMING 11)BATHFITTINGS AND ACCESSORIES

1.2 IDENTIFIED PROBLEM The organization does not have more customer care center and the customers are not well aware of the existing customer care centers. The decrease in the promotional activities is not satisfied by the customers.

The organization does not focus on a advertisement and sales promotion activities. The organization is not good at checking the product before delivery.

1.3 NEED OF THE STUDY This study does not answer all the problems which arise in the Havells. There are many certain formulas for analyzing particular problems, but the aim of the study is to develop ability of decision making & strategic formulation. A right decision at the right time itself helps the organization to run efficiently. It is here that this project becomes important as it aims to understand all the aspects

of corporate selling, the detail study of all the competitive brands of Havells Products.9

The observational study made during the training would help the marketing division of Havells to devise effective market strategy for the given area that would ultimately help to strengthen their position in the market, would enhance brand preference amongst the consumers.

1.4 OBJECTIVES AND SCOPE1.4.1 Objectives for the study: Primary Objective: To find out the peoples perception in purchasing the products of Havells India.

Secondary Objective: To know the personal views of people regarding choices among various Electronic products of Havells. To study which branded electronic products are mostly preferred by people as per their choices. Comparison between various Electronic products of Havells. Find out factor influencing the people at the time of purchasing Electronic products -

QUALITY, DURABILITY, VARIETY, and PRICE.

1.4.2 Scope of the study This study would be useful for companies to know what people perceive and

thinking about Electronic products offered by Havells .The study would be useful to other researchers as a secondary data. This study would be useful to form strategies & to make further decisions according to perception of people about electronic products in Havells.

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1.5 Deliverables: The questionnaire is set in order to conduct the primary research to

determine the choices and the preferences of the customers.

The study also helps to analyze the brand preference and the customer views of Havells India Limited.

The primary research is undertaken to determine the prominent factors

that attracts the customers towards the company for recurring purchase.

CHAPTER-2LITERATURE SURVEY 2.1 REVIEW OF LITERATURE 2.1.1 Book Review

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The concept of brand image has been very significant to consumer behavior from post 1950s. As Aaker and Keller confirmed in Hsiehs study that, brand image has been considered a vital part of a firms marketing program, not only because it serves as a foundation for tactical marketing mix issues but also because it plays an integral role in building long term brand-equity (1990). Definition: Earlier definitions of brand image are presented in broad terms by Dobni (1990) who put forward the following writers understanding of brand image. Newman stated it as everything the people associate with the brand (1957). Reynolds (1965) confirms that an image was centered on drawing a few key beliefs from a vast variety of sources, thus creating your own impression based on the brand. Herzogs concurs that brand image was the sum of the total impressions. (1973). Indeed, such definitions all concur together; echoed by the words of Levy who stated that a brand image is a constellation of pictures and ideas in peoples minds that sum up their knowledge of the brand and their main attitudes towards it (1978). A more recent insight into brand image was added by Woodside who defined image as the degree of positive or negative affect associated with psychological object (Reid, 2001). Theory behind brand image: According to Tyler (1957), there are three approaches to brand image: Subjective, Objective and Literal. The first type, is a subjective image, this is when a potential customer hears or sees the brand name/logo and feel obliged to purchase the product or service, despite a lack of understanding as to why this is the case. The case simply relates to how the brand is perceived as significant to an individuals self-consciousness. The second type of brand image is the objective form which is the attempt to generate an emotional need for the product, leaving you with the feeling that you need to purchase the product so as to satisfy this need.

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The third is literal image, i.e. a logo which represents a company. This implies that upon seeing this picture/logo, the name of the company does not need to be uttered as the picture tells the consumer the whole story e.g. Nike with the tick or McDonalds with the golden arches. Evidently, the approach used to obtain and sustain a brand image will vary upon several factors as reflected by the analysis presented by Tyler. Oxenfeldt and Swanns idea was that the brand image should allow the company to establish its position within its market segment, protecting it from competition, thus allowing them to build upon this with market share growth (Park et al, 1986). Moreover Park et al (1986) put forward in Bhats article that the importance of establishing a brand image relevant to its market segment in which it is based, is significant so as to ascertain a strong brand position, help create a barrier to entry for potential competitors: thus raise the brands performance in the market.

2.2 RESEARCH GAP There are areas which have been identified and do require further investigation.

The main issues that the some studies had not specified about the requirements of the customers regarding the product. However, some studies have suggested about various factors of purchase

decision but does not help in decision making & strategic formulation. The scope of this study was limited to certain characteristics of the customers but

does not aim at what they perceive and think about Electronic products

CHAPTER-3 METHODOLOGIES

3.1 TYPE OF PROJECT13

3.1.1 Descriptive Research: Descriptive Research has been used; it involves surveys and fact findings enquirer of different kinds the major purpose of descriptive research is the description of the state of affairs, as it exists at present. The main characteristics of this method are that the researcher has no control over the variable; he can only report what has happened or what is happening. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative methods. 3.1.2 Research Instrument The research instrument used in this study structured questionnaire. Structured questionnaire are those questionnaire in which there are predetermined questions relating to the aspect for which the researcher collect data. The questions are presented with exactly the same wording and in the same order to all the respondents.

3.1.3 Questionnaire Design The structured questionnaire for Appraisal system with the following types of questionnaire open ended, multiple choice and ranking scale. 3.2 TARGET RESPONDENTS The results could be skewed because of a small sample size of 50 only.

The target respondents were the customers owning Havells product and also non users of Havells Electronic product.

3.3 ASSUMPTIONS, CONSTRAINS AND LIMITATIONS

3.3.1 Assumption The results could be skewed because of a small sample size of 100 only.

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People who purchase Havells product are assumed to be satisfied with their

advertising and sales promotion activities. 3.3.2 Constraints There may be bias in the collected information. Few respondents were reluctant while answering due to their busy schedule. The time limit was only 45 days.

3.3.3 Limitation of the study Time and resource constraint. The respondents in many cases were unwilling to provide all the information. The same information cannot be accessed due to its confidential nature.

3.4 PROPOSED SAMPLING METHODS Convenience sampling has been used in this study. Convenience sampling is used for selection of homogeneous sample for the study. It refers to selecting a sample of study. It is non probability sampling. Thus research study may include study objects, which are conveniently located. Research findings based on convenient sampling however, cannot be generalized.

3.5 DATA PROCESSING Data collection

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Data refers to information or facts. It includes numerical figures, non numerical figures, descriptive facts, and qualitative information. The task of data collection begins after a research problem has been defined and research plan has been detected. The nature of data is both primary and secondary data.

1. Primary data The primary data are those that are collected through questionnaire. The questionnaire was framed in such a manner to obtain correct information, graded suitable for the study.

2. Secondary data The secondary data has been collected through oral communication. Secondary data is about the company website.

3.6 TOOLS FOR ANALYSIS

Chi-square test Rank correlation One sample run test

3.6.1 Chi Square Test16

The chi square test, written as -test, is a useful measure of comparing experimentally obtained results with those expected theoretically and based on the hypothesis. It is used as a test statistics in testing a hypothesis that provides a set of theoretical frequencies with which observed frequencies are compared. In general chi square test is applied to those problems in which we study whether the frequency with which a given event has occurred , is significantly different from the one expected theoretically. The measure of chi square enables us to find out the degree of discrepancy between observed frequencies and theoretical frequencies and thus to determine whether the discrepancy so obtained between observed frequencies and theoretical frequencies is due to the error of sampling or due to chance. The chi square is computed on the basis of frequencies in a sample and thus the value of chi square so obtained is statistics. Chi square is not a parameter as its value is not derived from the observation in a population. Hence chi square test is a non parametric test. Chi square test is not concerned with any population distribution and its observation. The test was first used in testing statistical hypothesis by Karl Pearson in the year 1900.it is defined as

() Where

=

(Oi-Ei) /Ei Oi Ei = = observed frequency of i th event. Expected frequency of i th event.

We require the following steps to calculate Step 1: calculate all the expected frequencies, Step 2: take the difference between each observed frequency and the corresponding expected frequency.17

Step 3: square the difference for each value of i. Step 4: divide each square difference by the corresponding expected frequency Step 5: add all the quotients obtained in step 4, then () = (Oi-Ei) /Ei is the required value of chi square.

It should be noted that The value of is always positive as each pair is squared one. will be zero if each pair is zero and it may assume any value extending to infinity. When the difference between the observed frequency and the expected frequency in each pair is unequal. Thus lies between 0 and 8. The significance test on is always based on the one tailed test of the right hand side of standard normal curve as is always non negative. As is a statistic and not a parameter, so it does not involve any assumption

about the form of original distribution from which the observation have come.

Degrees Of FreedomThe number of data that are given in the form of a series of variables in a row or column or the no of frequencies that are put in cells in a contingency table, which can be calculated independently is called degrees of freedom and is denoted by v. Case 1: if the data is given in the form of a series of variable in a row or column, then the degrees of freedom = (number of items in the series)-1, that is , v= n-1,where n is the number in the series in a row or column. Case 2 : when the number of frequencies are put in cells in a contingency table , the degrees of freedom will be the product of (number of rows less than one) and the (number of column less than one).that is ,v =(r-1) (c-1), where R is the number of rows and c is the no of columns. Condition for applying chi square test18

1. Each of the observation making up the samples for this test should be independent of each other. 2. The expected frequency of any item or cell should not be less than 5. If it is less than 5 , then frequencies taking from the adjacent items or cells are pooled together in order to make it 5 or more than 3. The total no of observation used in this test must be large that is n=30. 4. This test is used only for drawing inferences by testing hypothesis. It cannot be used for estimation of parameter or any other value.

5. It is wholly dependent on the degrees of freedom. 6. The frequencies used in test should be absolute and not relative in terms. 7. The observation collected for test should be on random basis of sampling test. The chi square test is widely used to test the independents of attributes. It is applied to test the association between the attributes when the sample data is presented in the form of a contingency table with any number of rows and columns.

3.6.2 Spearmans Rank Correlation coefficientThe coefficient of rank correlation is based on the various values of the variants and it is denoted by R. It is applied in the problems in which data cannot be measured quantitatively assessment is possible such as awareness satisfaction etc. The rank correlation is given by the formula:

R= 1 - 6D2

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N(n2-1)

D2= The squares of difference of corresponding ranks N= The number of pairs of observation Steps involved in Rank correlation: 1. Calculate the difference of R1 from R2 and write it under the colouring heated by D.2. Square the difference D and write it under the column D2

3. Apply the formulaR= 1 - 6D2 N(n2-1)

3.6.3 The one sample run testIt is a non parametric method to randomness with which the sample items have been selected. The run test, based on the order in which the sample observations are obtained, is a useful technique for testing the null hypothesis H0 that the observation has indeed been drawn at random. The runs test can also be used to detect departures in randomness of a sequence of quantitative measures over time, caused by trends or periodicities. RUN: A run is subsequence of one or more identical symbols representing a common property of the data. In other words, a run is defined as a set identical (or related) symbols contained between different symbols (such as at beginning or end of the sequence).

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CHAPTER - 4 DATA ANALYSIS AND INTERPRETATION 4.1 Proposed analysis and interpretation methodologies: The data after collection has to be processed and analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan. This is essential for a scientific study and for ensuring that we have all relevant data. Processing implies editing, coding, classification and tabulation of collected data so that they acquiescent analysis. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data groups. Thus, In the process of analysis, relationship or difference supporting or conflicting with original or new hypothesis should be subjected to statistical test of significance to determine with that validity data can be said to indicate any conclusions. Analysis of data in general way involves a number of closely related operations that performed with the purpose of summarizing the collected data and organizing them in such manner that the answers the research question.

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4.2 Calculations:TEST NO 1 - CHI SQUARE Aim: To test the relationship between gender and service regards Quality of Havells Products.

Null hypothesis H0: There is no significant relationship between gender and Service of Havells Products

Alternative hypothesis H1: There is a significant relationship between gender and Service of Havells Products

Observed frequency:

Good

BAD

Total

Male

23

12

35

Female

10

5

15

Total

33

22

17

50

Expected frequency:

GOOD

BAD ((17)(35)) /50

Total

Male

((35*33)/50)) = 23.1 = 11.9 ((33)(15)) / 50 ((17)(15)) / 50

35

Female =9.9 Total 33 =5.1 17

15

50

Calculation of value:

O 12

E 11.9

(O-E) .1

(O-E)^2 0.01

(O-E)^2/E 8.40336

23

23 5 10 Total

23.1 5.1 9.9

-.1 -.1 .1

0.01 0.01 0.01

4.3290 0.0019 0.0010 12.73526

The calculated value of Therefore degree of freedom

= = = =

12.73526 (r-1) (s-1) (2-1) (2-1) 12.71

Result: Since, Calculated = 12.73526 < Tabulated value = 12.71. Hence the Null hypothesis H0 is Rejected. Decision: There is significant relationship between gender and service regards Quality of Havells Products.

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TEST NO - 2 Spearmans Rank Correlation coefficient

Ranking the Factors That Influence the Buying Decision

Factor quality schemes Availability Price advertisement

Rank I 2 4 -

Rank II 1 1 2 2 -

Rank III 3 1 1 3 -

Rank IV 2 1 -

Rank v 1 1

total 6 5 3 10 1

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Calculation of table values

Factor

Rank I 2 2 5 4 4 1 3.5

Rank II 1 3 1 2 2 1 3 3 3.5

Rank III 3 1 1 2 1 2 2 2 3.5

Rank IV 4.5 2 1 4 1 4 3.5

Rank v 4.5 1 2 4 5 1 1

qualityRank

SchemesRank

AvailabilityRank price Rank Advertisement Rank

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RANK CORRELATION TEST Aim: To test the relationship between the quality and price factor that influence the buyer. Null hypothesis H0: There is no relationship between quality and price factor that influence the buyer.

Alternative hypothesis H1: There is relationship between quality and price factor that influence the buyer.

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R1 2 3 1 4.5 4.5

R2 1 3 2 4 5

D=R1-R2 1 0 -1 0.5 -0.5

D^2 1 0 1 0.25 0.25 D^2 =2.5

r = 1- 6D2 / n (n2 1) r = 1 (6( 2.5) /5(5 2 1)) r = 1 - (15/120) r = 1- 0.125 r = 0.875

Correlation Co- efficient lies between -1 to +1

Result:

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Quality and price factors are positively correlated. The calculated correlation coefficient 0.875 is greater than the tabulated value of rank correlation co efficient for n=6 and 5 % level of significance is 0.8626, Hence the null hypothesis Ho is rejected.

Decision: There is a significant relationship between the quality and the price factor that influence the buyer.

TEST NO - 3

ONE SAMPLE RUN TEST Aim: To Test the satisfaction of customers towards the service obtained from products other than Havells. Null hypothesis H0: The customers did not satisfy with the service obtained from other products.29

Alternative hypothesis H1 : The customers are satisfied with the service obtained from other products. Run:

YYYYY | NNN | YYYY | NNN | YYYYYYY | NN | YYYYYY | NNNN | YYYYY | NNNN | YYY | NN | YY | r=13 n1 = 32 n2 = 18

Formula: 1. r = ((2n1n2)/(n1+n2)) + 1

2. r

=

((2n1n2)(2n1n2-n1-n2))/((n1+n2)^2(n1+n2-1))

3. | Z |

=

r - r/ r

Statistics:

1.

r

= =

((2(32)(18))/50) + 1 24.04

2. r

=

((2(32)(18)(2(32)(18)-32-18))/((32+18)^2(32+18-1))30

=

3.219

3. | Z |

= = =

| r - r/ r | | (13-24.04)/3.219| 3.43

| Z | Calculated

=

3.43

|Z | Table

=

1.96

Result: Calculated value |Z| cal = 3.43 is greater than the table value 1.96. Hence the Null hypothesis H0 is rejected.

Decision: The customers are satisfied with the service obtained from other products.

4.3 Diagrammatic Representation: TABLE NO.4.3.1 CLASSIFICATION ACCORDING TO GENDER31

Gender Male Female Total

No. of Respondents 40 10 50

Percentage 80% 20% 100%

CHART NO.4.3.1

INFERENCE:80% of respondents are male persons,20% of respondents are female persons.

TABLE NO.4.3.2 CLASSIFICATION BY PRODUCTS OWNED32

Do you have any of the Havells products?SR.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1 2 3

Yes No Total

25 25 50

50% 50% 100%

CHART NO.4.3.2

INFERENCE:

The above table indicates that, 25% people have Havells products & 25% people do not have.

TABLE NO.4.3.3 CLASSIFICATION BY PRODUCT TYPES33

(A). If Yes which product do you have?

SR.NO. 1

PARTICULARS CAPACITORS BATHFITTINGS AND ACCESSORIES

NO. OF RESPONDENTS 4 2

PERCENTAGE 16%

2

8%

3 4 5 6 7 8 9

CABLES AND WIRES

4 4 1 6 2 2 25

16% 16% 4% 24% 8% 8% 100%

FANS MOTORS LIGHTING CFL DIGITAL DIMMING

Total

CHART NO.4.3.334

INFERENCE:

The above table indicates that, 24% people have lighting, 16% people have cables and wires, 8% have bathfittings and accessories, 16% have capacitors, 8% digital dimming, 8% have cfl, 16% have fans & 4% have motors.

TABLE NO.4.3.4 CLASSIFICATION BY PURCHASE PERIOD35

When did you purchase your Havells product? NO. OF RESPONDENTS 10 8 4 2 1 25

SR.NO. 1 2 3 4 5 9

PARTICULARS Less than 6 months 6 months to 1 year 1 -2 years 2 5 years More than 5 years Total

PERCENTAGE 40% 32% 16% 8% 4% 100%

CHART NO.4.3.4

INFERENCE:

The above table indicates that, 16% people plans for purchasing Havells products in 1-2 yr, 4% plan more than 5 yr, 40% plan in less than 6 months, 32% plan in 6 month to 1 yr.

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TABLE NO.4.3.5 CLASSIFICATION BY USAGE PURPOSEWhat is main purpose of using Havells product? NO. OF RESPONDENTS 13 10 2 25

SR.NO. 1 2 3 4

PARTICULARS Personal Official Both Total

PERCENTAGE 52% 40% 8% 100%

CHART NO.4.3.5

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INFERENCE:

The above table indicates that, 52% purchasing Electronic for person use, 8% purchase for both purpose, 40 % purchase for official use.

TABLE NO.4.3.6 SATISFACTION LEVEL OF HAVELLS PRODUCTSYour satisfaction level towards your Havells product? SR.NO. 1 2 3 4 5 PARTICULARS Strongly satisfied Satisfied Dissatisfied Strongly dissatisfied partially satisfied Total NO. OF RESPONDENTS 9 13 2 1 0 25 PERCENTAGE 36% 52% 8% 4% 0% 100%

CHART NO.4.3.6

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INFERENCE:

The above table indicates that, 52% people satisfied with their electronic products, 36% strongly satisfied with their electronic products, 8% people dissatisfied with their electronic products, 4% people strongly dissatisfied with their electronic products.

TABLE NO.4.3.7 CUSTOMERS PREFERENCE IN HAVELLS PRODUCTSWhich types of features prefer most by you in Havells product? NO. OF RESPONDENTS 9 8 5 2 1 25

SR.NO. 1 2 3 4 5

PARTICULARS Product functionality Product design Packaging Product Size Service Repair ,Warranty & etc Total

PERCENTAGE 36% 32% 20% 8% 4% 100%

CHART NO.4.3.7

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INFERENCE: The above table indicates that, 32% people gives preference to Product design, 36% for Product functionality, 8% for Product Size, 20% give preference Packaging, 4% gives Service Repair ,Warranty & etc.

TABLE NO.4.3.8 FACTORS INFLUENCE BUYING DECISIONWhat are the factors which influence your buying decision? SR.NO. 1 2 3 4 5 Price Availability Schemes Quality Advertisement Total PARTICULARS NO. OF RESPONDENTS 9 7 4 3 2 25 PERCENTAGE 36% 28% 16% 12% 8% 100%

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CHART NO.4.3.8

INFERENCE:

The above table indicates that, 28% people influencing through availability of product, 36% influencing through price, 16% through schemes, 12% through Quality of Havells products & 8% through advertisement.

TABLE NO.4.3.9 CUSTOMERS FROM OTHER BRANDSDid you switched over from any other brand to this brand?

SR.NO. 1 2 Yes No

PARTICULARS

NO. OF RESPONDENTS 5 20

PERCENTAGE 20% 80% 100%

Total

25

41

CHART NO.4.3.9

INFERENCE:

The above table indicates that, 20% people had been switched over.

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Person does not have Havells product. TABLE NO.4.3.10 CLASSIFICATION BY CUSTOMERS PURCHASE PLANWhen would you purchase the Havells Electronic Products? SR.NO. 1 2 3 4 5 PARTICULARS Less than 6 months 6 months to 1 year 1 -2 years 2 5 years More than 5 years Total NO. OF RESPONDENTS 11 10 3 1 0 25 PERCENTAGE 44% 40% 12% 4% 0% 100%

CHART NO.4.3.10

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INFERENCE: The above table indicates that, 44% people purchase Havells in less than 6 months, 40% in 6 month to 1 yr., 12% in 1-2 yr. & 4% people plans for purchasing their electronic product in 2-5 yr.

TABLE NO.4.3.11 CLASSIFICATION BY PRICE RANGEWhat price range will you be prepared to pay for such a Product?

SR.NO. 1 2 3 4 5 6 7

PARTICULARS Rs. 2500 3000 Rs. 3500 4000 Rs. 4500 5000 Rs. 3000 3500 Rs. 4000 4500 Above 5000 Total

NO. OF RESPONDENTS 12 6 2 3 2 0 25

PERCENTAGE 48% 24% 8% 12% 8% 0% 100%

CHART NO.4.3.11

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INFERENCE:

The above table indicates that, 12% choose the range of 3000-3500, 48% for 2500-3000, and 8% choose for 4500-5000 & 8% choose for 4000-4500.

TABLE NO.4.3.12 CUSTOMERS RANK FOR HAVELLS PRODUCTSRank the Product according to your preference? SR.NO. PARTICULARS LIGHTING 1 BATHFITTINGS AND ACCESSORIES 1 5 4% NO. OF RESPONDENTS 7 RANK 1 27% PERCENTAGE

2

CFL 3 4 FANS 45 4 7 3 2 15% 27%

CABLES AND WIRES 5 DIGITAL DIMMING 6 MOTORS 3 4 12% 2 8 8%

7

1

7

4%

CAPACITORS 8 9 Total 1 26 6 4% 100%

CHART NO.4.3.12

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INFERENCE: The above table indicates that, 27% choose lighting, 4% choose bathfittings and accessories, 27% choose fans, 4% for motors, 4& for capacitors, 12% for digital dimming, 8% for cables and wires.

TABLE NO.4.3.13 MAIN PURPOSE OF PRODUCT USAGEThe main purpose of purchasing the Havells product?SR.NO. 1 2 3 4 PARTICULARS Personal Official Both Total NO. OF RESPONDENTS 13 9 3 25 PERCENTAGE 52% 36% 12% 100%

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CHART NO.4.3.13

INFERENCE: The above table indicates that, 52% people choose for personal use, 12% for both use & 36% for Official use.

TABLE NO.4.3.14 FACTORS INFLUENCE BUYING DECISION12. What are the factors which influence your buying decisions? (Rank 1-5)SR.NO. 1 2 3 4 5 Price Availability Schemes Quality Advertisement PARTICULARS NO. OF RESPONDENTS 10 3 5 6 1 RANK 1 2 4 3 5 PERCENTAGE 40% 12% 20% 24% 4%

48

6

Total

25

100%

CHART NO.4.3.14

INFERENCE: The above table indicates that, 12% people influencing through availability of product, 40% through price, 24% through quality, 20% through schemes & 4% through advertisement.

TABLE NO.4.3.15 CUSTOMERS PREFERENCE IN HAVELLS PRODUCTSWhat type of features you prefer most from Havells? SR.NO. 1 2 PARTICULARS Product functionality Product design NO. OF RESPONDENTS 8 11 PERCENTAGE 32% 44%

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3 4 5 6

Packaging Product Size Service Repair ,Warranty & etc Product functionality

2 2 2 25

8% 8% 8% 100%

CHART NO.4.3.15

INFERENCE: The above table indicates that, 44% give preference to Product design, 32% to Product functionality, and 8% for Packaging, 8% for Service, 8% for Product Size. 14. Please tick one of the item for each of the product for your desire Havells products?

TABLE NO.4.3.16 - PREFERENCES IN EACH PRODUCT(A).FAN SR.N O 1 PARTICULARS High Speed Fans50

NO.OF RESPONDENTS 2

PERCENTAGE 8%

2 3 4 5 6

Wall Mounting Fans Ceiling Fans Pedestal Fans Ventilating Fans Total

5 9 5 4 25

20% 36% 20% 16% 100%

CHART NO.4.3.16

INFERENCE: The above table indicates that, 36% give preference to Ceiling Fans, 20% for Pedestal Fans, 20% for Wall Mounting Fans, 16% for Ventilating Fans & 8% for High Speed Fans.

TABLE NO.4.3.17(B).LIGHTING

SR.NO. PARTICULARS 1 2 Specialty lamps LED Lighting

NO. OF RESPONDENTS 1 251

PERCENTAGE 4% 8%

3 4 5

Consumer Lighting Industrial Lighting Total

12 10 25

48% 40% 100%

CHART NO.4.3.17

INFERENCE: The above table indicates that, 48% give preference to Consumer lighting, 40% for Industrial lighting, 8% for LED & 4% for Specialty lamps.

TABLE NO.4.3.18(C). INDUSTRIAL CIRCUIT PROTECTION

SR.NO. PARTICULARS 1 2 MCCB Switch Disconnector

NO. OF RESPONDENTS 3 10

PERCENTAGE 12% 40%

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3 4 5

Fuse Switch and Switch Fuse Load Changeover Switch Total

5 7 25

20% 28% 100%

CHART NO.4.3.18

INFERENCE: The above table indicates that, 40% gives preference to Switch Disconnector, 28% for Load Changeover Switch, 20% for Fuse Switch and Switch Fuse &12% for MCCB.

TABLE NO.4.3.19(D). Motors SR.NO. PARTICULARS 1 2 3 Inverter Duty Motors with Forced Cooling Foot Mounting Brake Motors NO. OF RESPONDENTS 3 17 553

PERCENTAGE 12% 53% 20%

4 5

Flange Motor Total 25

15% 100%

CHART NO.4.3.19

INFERENCE: The above table indicates that, 53% gives preference to Foot Mounting, 20% for Brake Motors, 15% for Flange Motor & 12% for Inverter Duty Motors with Forced Cooling.

4.4 DELIVERABLES EXPECTED CONCLUSIONS4.4.1 CHI-SQUARE TEST Aim: To test the relationship between gender and service regards Quality of Havells Products. Null hypothesis H0: There is no significant relationship between gender and Service of Havells Products54

Alternative hypothesis H1: There is a significant relationship between gender and Service of Havells Products.

4.4.2 RANK CORRELATION TEST Aim: To test the relationship between the quality and price factor that influence the buyer. Null hypothesis H0: There is no relationship between quality and price factor that influence the buyer. Alternative hypothesis H1: There is relationship between quality and price factor that influence the buyer

4.4.3 ONE SAMPLE RUN TEST Aim: To Test the satisfaction of customers towards the service obtained from products other than Havells.

Null hypothesis H0:55

The customers did not satisfy with the service obtained from other products.

Alternative hypothesis H1 : The customers are satisfied with the service obtained from other products.

CHAPTER V CONCLUSIONS 5.1 SUMMARY OF FINDINGS

5.1.1 STATISTICAL FINDINGS CHI-SQUARE TEST There is significant relationship between gender and service regards Quality of Havells Products.56

RANK CORRELATION TEST There is a significant relationship between the quality and the price factor that influence the buyer.

ONE SAMPLE RUN TEST The customers are satisfied with the service obtained from other products.

5.1.2 GENERAL FINDINGS

80% of respondents are male persons. 25% people have Havells products. 24% people have lighting.

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16% people plans for purchasing Havells products in 1-2 yr. 52% purchasing Electronic for person use. 52% people satisfied with their electronic products. 36% people give preference to Product functionality. 36% people are influenced through price.

20% of the people have switched from brand to brand. 12% for people purchase Havells product for both personal and Official use.

12% people influenced through availability of product 36% of the people give preference to Ceiling Fans. 48% of the people give preference to Consumer lighting. 40% of the people give preference to Switch Disconnector.

53% of the people give preference to Foot Mounting.

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5.2 SUGGESTIONS AND RECOMMENDATIONS

Havells India Company having large number of channel partners butit is not supporting & taking care all of them equally which results in increasing discontentment among new channel partners because its not possible for company to support all of them equally. Company should take some positive action against it.

Company executive should visit dealers on regular basis. They should pay proper attention towards checking of variouscomponents of products before end user delivery. Otherwise it tends towards defame of brand name in comparison to rivals.

Need to expand customer care center. Proper attention should be paid for advertisement planningotherwise it may lead to problem for dealer as well as for company.

Company should tie up with some event management company toorganize various promotional activities like canopy, Carnival.

Company should make policy for fixed end user price for all dealersso that fair game will be played & dealer would not to compromise on their margin.

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5.3 CONCLUSIONThe study was done in order to find out the purchase decision of customers towards Havells products. After analyzing the data, it was found that the purchase decision of customers towards Havells products is better and not the best. Various suggestions are suggested to increase the purchase decision of customers and help to reach target.

5.4 DIRECTION FOR FUTURE RESEARCH There are some aspects influencing customer purchase decisions like

dependency on the Culture of the country. In-depth study of the demand for the products are left untouched in this study due to time Constraints which can further be explored. The factors such as higher expectation and satisfaction level of the brand can further researched. And the testing of availability of the products with the retailers can be explored for the further research.

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APPENDIX QUESTIONNAIREI am C.Loganathan management student of Sri ram engineering college undergoing MBA project on purchase decision of customers with reference to Havells would be grateful if you kindly spare your valuable time to fill up the questionnaire which would help me to complete my project successfully on time. Thanking you

Personal Detailsa. Name b. Age c. Gender d. Address e. Phone No f. Income : : : : : :

g. Occupation a. Businessman [ ] c. Private [ ] b. Govt.Employee [ ] d.Others Specify [ ]

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1. Do you have any of the Havells products?

(a). Yes(b). No

(A). If Yes which product do you have? I. II. III. IV. V. VI. VII. VIII. CAPACITORS BATHFITTINGS AND ACCESSORIES CABLES AND WIRES FANS MOTORS LIGHTING CFL DIGITAL DIMMING

2. When did you purchase your Havells product? I. II. III. IV. V. Less than 6 months months to 1 year 1 -2 years 2 5 years More than 5 years

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3. What is main purpose of using Havells product? I. II. III. Personal Official Both

4. Your satisfaction level towards your Havells product? I. II. III. IV. V. Strongly satisfied Satisfied Dissatisfied Strongly dissatisfied partially satisfied

5. Which types of features prefer most by you in Havells product?

I. II. III. IV. V.

Product functionality Product design Packaging Product Size Service Repair ,Warranty & etc

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6. What are the factors which influence your buying decision? Price Availability Schemes Quality Advertisement

7. Did you switched over from any other brand to this brand?

Yes No

8. When would you purchase a Havells Electronic Products?

Less than 6 months 6 months to 1 year 1 -2 years 2 5 years More than 5 years

9. What price range will you be prepared to pay for such a Product? Rs. 2500 3000 Rs. 3500 4000

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Rs. 4500 5000 Rs. 3000 3500 Rs. 4000 4500 Above 5000

10. Rank the Product according to your preference? I. II. III. IV. V. VI. VII. VIII. CAPACITORS BATHFITTINGS AND ACCESSORIES CABLES AND WIRES FANS MOTORS LIGHTING CFL DIGITAL DIMMING

11. The main purpose of purchasing the Havells product? Personal Official Both

12. What are the factors which influence your buying decisions? Price

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Availability Schemes Quality Advertisement

13. Which types of features prefer most from Havells? Product functionality Product design Packaging Product Size Service Repair ,Warranty & etc Product functionality

14. Please tick one of the item for each of the product for your desire Havells products? A.FAN High Speed Fans Wall Mounting Fans Ceiling Fans Pedestal Fans Ventilating Fans

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B. LIGHTINGSpecialty lamps LED Lighting Consumer Lighting Industrial Lighting

C. INDUSTRIAL CIRCUIT PROTECTIONMCCB Switch Disconnector Fuse Switch and Switch Fuse Load Changeover Switch

D. MotorsInverter Duty Motors with Forced Cooling Foot Mounting Brake Motors Flange Motor

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BIBLIOGRAPHYThe lists of reference for the purpose of completing this marketing project are as given below: Reference Books Saunders,.M., Lewis. P., and Thornhill.A. (2003), Research Methods

for Business Students, 3rd Edition, Financial Times Prentice Boyd and Stasch (2001), Marketing Research, 3rd Edition, Financial Times Prentice. :G. C. Beri (1999), Marketing Research, 4th Edition, Himalaya Publication House. Kothari C. R. (2005) RESEARCH METHODOLOGY New Age International Limited, Fifth Edition68

Saxena Rajan, Marketing Management: Tata Mcgraw, New Delhi, 2006

Websites http://www.havells.com http://business.mapsofindia.com/india-company/h/havells-india.html http://havellsindia.wordpress.com

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