A report submitted towards the partial fulfillment of the requirement of the two years full time Post Graduate Diploma in Management.
SUBMITTED BY: VivekRanjan Post Graduate Diploma in Management Roll No. :2k11B36 (Session: 2011-13)
ASIA-PACIFIC INSTITUTE OF MANAGEMENT 3& 4, Institutional Area, Jasola, New Delhi 110025. 1
With the need of an hour and the changing environment, Management Institutes these days have started giving more stress on the management training program as it is the first interface of a management student with the culture and environment of the Corporate World. It gives them the first hand information and experience to share and use their knowledge and bring out some meaningful results out of it. This is the opportunity where students learn to experiment theory in practice in the real World of Corporate Business. Our Institute has also been looking in the same direction to produce students with excellence and with great determination that can possess knowledge of theory along with practice. So for this we have undergone a Summer Training Program of 6 weeks in Khaitan Electrical Ltd Ltd for a project on “Consumer Behavior and Analysis’ for Enhancement of Business Strategy with Emphasis on KhaitanAppliances” KhaitanAppliances” (B2C). For our project we are thankful to our Institute for providing us valuable encouragement and guidance which has facilitated us in making and completing our report.
2
With the need of an hour and the changing environment, Management Institutes these days have started giving more stress on the management training program as it is the first interface of a management student with the culture and environment of the Corporate World. It gives them the first hand information and experience to share and use their knowledge and bring out some meaningful results out of it. This is the opportunity where students learn to experiment theory in practice in the real World of Corporate Business. Our Institute has also been looking in the same direction to produce students with excellence and with great determination that can possess knowledge of theory along with practice. So for this we have undergone a Summer Training Program of 6 weeks in Khaitan Electrical Ltd Ltd for a project on “Consumer Behavior and Analysis’ for Enhancement of Business Strategy with Emphasis on KhaitanAppliances” KhaitanAppliances” (B2C). For our project we are thankful to our Institute for providing us valuable encouragement and guidance which has facilitated us in making and completing our report.
2
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals. I would like to extend my sincere thanks to all of them.
First of all I would like to thank Mr. Vikas Gupta, RegionalManager Eastern region Khaitan Electricals Ltd., for providing me an opportunity to undertake the project of summer internship
as a summer trainee atKhaitanElectricals Ltd.
I am highly indebted to MrPuneetSaxena for their guidance and constant supervision as well as for providing necessary information regarding the products& also for their support in completing the project.
I would like to express my gratitude towards MrVipin, our territory in charge for their kind cooperation and encouragement which help me in completion of this project.
It has also been my proud privilege and good fortune to work on this study under the table guidance of Prof. Ratnesh Kumar, Faculty of Asia Pacific Institute of Management . His thoughtful comments
and conceptual insights into the subject kept me from floundering in my quest. Despite his busy schedule he spared valuable moments for reviewing and rectifying this work. His uncompromising demand for logical conclusions, quality of presentation, and originality of work and novelty of ideas has benefited every single page of this study. I shall always remain grateful to h im and no words of
3
thanks can compensate for the liberty that I had been given to encroach upon whatever little spare time he had at his disposal.
I also extend my thanks to various department heads, friends & family for the co-operation and help extended to me during the preparation of the project.
4
CERTIFICATE FROM THE FACULTY GUIDE
This is to certify that the project work entitled “Study of the Consumer buying behavior and sales promotion of KhaitanHome Appliances ”is a piece of bonafide work done by
VivekRanjan, student of Asia Pacific Institute of Management, under my guidance and supervision for the partial fulfillmentof the course PGDM. To the best of my knowledge and belief, the thesis embodies the work of the candidate himself and has been duly completed. Simultaneously, the thesis fulfils the requirements of the rules and regulations related to the summer internship of the institute and I am assured that the project is up to the standard both in respect to the contents and language for being referred to the examiner.
Prof. Ratnesh Kumar
5
DECLARATION I hereby declare that the project report entitled “Study of the Consumer buying behavior and sales promotion of Khaitan Home Appliances ” is the fruit of my sincere effort. Isubmit this
summer internship project to Asia Pacific Institute of Management, New Delhi, for the partial fulfilment of the course PGDM, and the report is not submitted to any other educational institutions or for any other purpose whatsoever.
VivekRanjan.
6
i.
During the last financial year the home appliances division has reported revenue growth toRs84crore contributing 17.3% of the total revenue of 486 Crore and the Appliance segment for the quarter stood at Rs18.9croreof the total revenue of 135 Crore. So as the company is growing its Home appliances division is also growing.The company has a strong position in the market because of it strong marketing and distribution network.
ii.
Almost 93% of the people are using at least one home appliance in the major cities. So the potential of Home appliances is high and in Delhi Home appliances market potential are about 200 crores.
iii. Khaitan has a highest market share for KhaitanFans.It has reasonably good market share in Mixer grinder, Air cooler category, Pumps, Lights and wires category. iv. According to our respondents Khaitan brand is accepted to both Male and Female category almost equally. v.
Almost ¾th of the Khaitan product users say they use Khaitan home appliances in between one month to five years.
vi. Customers visiting Shopping Complexes like Big Bazar are more concern about Durability, Price,Features of a product and they are less concern about the Brand and 7
the Quality. The most probable reason may be because Modern Retailer isicon of Less Price Product, and few times they sell product of their own brand. This can be easily
predicted by the tag line of Big Bazar- “Issesastaaurachhakahinahin” vii. But in case of Shopping Complex like Pantaloons respondents are more concern about brand and usually they prefer prime products. viii. Customers who purchase Khaitan Home Appliances are more concern aboutPrice and Value for money composition. They also look for more Features and Warranty/ guarantee.
ix. According to the respondents half of them are ready to pay more for more features. So Khaitan can launch new prime products either under the same brand or with a new brand name. They can also upgrade some of the existing products. x.
It has been pointed out that Usha is the biggest competitor of Khaitan, and the other major competitors are Philips, Kenstar, Maharaja, KenwoodKoryo etc. The main reason behind this may be as Usha is also providing almost same kind of product in same or less prices. Philips provides premium products and Maharaja low price products. Now few domestic and international players are using China made components for reduction of manufacturing cost which increase the market competition.
xi. The purpose of visiting shopping complexes varies with age, Indian youth are visiting mall mainly as a hang out places. But the older people and mid age group visit mall mainly to purchase. Frequency of visiting a mall is also depend on age youth are more frequent in visiting whereas mid age people visit mall 1 to 3 times a week. xii. Khaitan is not a premium class home appliances manufacturer rather Khaitan product is known for Low price, performance, guarantee & warranty. So Khaitan should focus more on price leadership in order to get an edge over its competitors. xiii. Other than that respondents consider Durability, easy maintenance as preferred factors while purchasing General Home Appliance but in case of Khaitan electrical they consider Brand image, Warranty & Guarantee, Features & Quality as significant factors. So in order to maintain the current market share and to increase it Khaitan should strategically used the above mentioned factors. xiv. It has been pointed out that respondents who are willing to repurchase Khaitan will recommendKhaitan to friends, relatives and known one. In Shop promotion and 8
suggestion From Relatives and Friends are affecting the purchase but for factors like Brand ambassador and advertisement the response is almost neutral. So investments in in shop promotion may increase the sale of product. xv. During holidays and week end consumers prefer to visit shopping complexes. So in shop promotion during this period may increase the sale. And it has been pointed out that word of mouth and in shop promotion has an impact on purchase. xvi. Promotional offer like free gift, price offer and tour & packages influence purchase and its preference varies with occupation of the respondents. According to them students generally prefer
Overall, Khaitan Appliances has the potential to be the market leader of the extremely competitive small appliance market in Delhi provided it pays attention to these problems and implement the recommendations suggested.
9
Section 1:1.1Introduction to Topic:1.2Objective:1.3Scope Of Study:-
2.1 Introduction of company:2.2 About the company:2.3 Products:2.4 Development of company:2.5 SWOT analysis:2.6 Comparative analysis with the competetors:-
10
Review of Literature:-
4.1
Market Strategy:-
4.2
Marketing MIX:-
4.3
Step of Report generation:-
4.4
Limitations of Study:-
4.5
Observation, Analysis &Discussion:-
4.6
Key Findings:-
4.7
Conclusion:-
4.8
Recommendation:Bibliography
ANNEXURE
11
12
The title of my project is “Study of the consumer buying behavior and sales promotion of KhaitanHome Appliances”. The company wants that there should be a market survey to know the buying pattern of the customers and to know the requirement for any of the Khaitan appliances in the market in the same product range of its competitors. So for this knowing the demand pattern is very essential as to when and how the demand for the products arises and on what factors does the customers buy the products. My area of survey was North Delhi. I visited a showroom from wherein I have gathered a concrete data and have drawn analysis on the data collected which will be helpful to the Company in studying and analyzing and drawing various conclusions which will help in boosting the sales and growth of the Company. The data has been collected from shops and have been gathered through many persons with full name and contact details with the requisite information on the usage of appliances in the market and future requirement of the same along with the details of its competitor’s products being used therein.
13
MAIN OBJECTIVE:-
To know the views and perception of business professionals regarding Khaitan as a Brand and its products feedback.
To analyze what market trends and Customer behavior is regarding its demand and buying pattern.
To know what, why, where, when and how the Company procures the products.
To forecast sales this is dependent on the consumer response and their feedback.
To know the customers response to the products.
To increase sales and growth in future.
To segment, target and position itself (company) according to the current environment and need of the market.
14
For achieving my Objective of the report I have been visiting shops in Delhi and took personal interview of individuals from shop owner, customers and the persons who work there. I was set to conduct a market research in the shop and customers (B2C) on the study and understanding of what, when, where, why and how the consumers purchase the products especially with regards to Khaitan appliances and its competitors products. I myself prepared a certain set of questions to be asked from the consumers and shop owners and to know any future requirement of any of the Khaitan appliances in future. Questions asked were relating to: 1. What kinds of products do you purchase? 2. What kinds of Brands you opt for? 3. For what purpose you purchase it? 4. On what factors do you purchase the products? 5. When the requirement does arise? So for all the above questions the data has been collected and the contact details have been taken of the concerned person and the shop owners which would help the company in analyzing the demand pattern and to maintain further contact with the Customers.
15
1. This study can be carried further by any other Home Appliances company to know the Brand Presence and market potential in both Organized and Unorganized Retail sector. 2. KhaitanElectricals can extend further this study in the other parts of India. 3. Khaitan will come to know about what are the factors like colour, design, guarantee warranty, after sale service that will affect the final purchase and can get a competitive advantage and will have a consumer insight. 4. Khaitan can make strategy about pricing, sales and promotional offer, in house promotion. 5. By knowing the market share Khaitan can analyse the product mix i.e. which product is to be promoted and which product is to be discontinued. 6.
Through this study Khaitanwill get a insight about what are the potential area where they can launch new product/s.
7. Through this project Khaitan will also know about the loop hole in communication and operational activities. And thus make product readily available in shop floor and have a good relationship with organized retailers and PROMOTOR ( In Shop Demonstrators )
16
2.1 Profile of the company:For decades, the Khaitan name has been synonymous with quality fans in India. With 19 offices located across the country, Khaitan has established itself as the undisputed leader in airmanagement technology. The Khaitan name is renowned for innovations as well which is reflected in the design of pioneering product concepts such as Fresh air fans, and models in the mini category. Now Khaitan is diversifying even further. Pumps, lights,home appliances, cables, wires and circuit breakers have been added to Khaitan's portfolio. Good quality, great performance and novelty in design are some of the assured features of any product from Khaitan. As a young entrepreneur in the early 60’s, S.K. Khaitan (chairman) was possessed by a burning desire to push the limits and create new goals for himself. Men like Henry Ford, Thomas Bata,
17
Soichario Honda and J N Tata who had guts to build great brands with their own name, deeply moved him and then he was all set to create Khaitan his family name into a household word as well. Today Khaitan is already a household name and a leading brand through out the country, but the vision continues to grow. In 1971, Mr. S.K. Khaitan founded Khaitan electrical ltd in kolkata. These products are manufactured at factories located in Kolkata (West Bengal), NarsapurTaluk (Andhra Pradesh), Faridabad (Haryana) and Ponta Sahib (Himachal Pradesh). The Faridabad factory is the Company`s R&D hub while the other three factories produce over 100,000 units of fans a month with an installed capacity to produce over 200,000 units a month. The company is also engaged in exporting its various range of fans to countries like Africa, the Middle East and Asia including Sri Lanka, Bangladesh, Singapore, Myanmar and Nepal. Khaitan`s main mode of business is through its channel partners such as dealers and distributors. The company has a network of more than 3,500 dealers and distributors across the country.
18
YEAR EVENTS 1975 - The Company was Incorporated on 27th October, as a private limited company and then converted into public limited company on 14th August, 1982. The Company was promoted by Shri S.K. Khaitan, the chairman of the Khaitan group of companies. -
The Company's object is to manufacture electric fans, industrial and ventilating fans,
electrical household appliances electric motors, cables, electric lamps, electrical meters etc. - The Company entered into an agreement with Khaitan Fans Pvt. Ltd. for obtaining "technical
19
know-how" for the manufacture of electric fans and regulators and for using their trade mark "Khaitan". Since then the Company is engaged in the manufacture of various types of elctric fans
and
regulators.
- The Company started its first plant at Faridabad to manufacture a wide range of ceiling, exhaust, portable, industrial and ventilating fans, FHP motor and power driven pumps. To cater to the growing demand in Western India and overseas markets, a second plant was started at Tarapur near Mumbai in January 1983 to manufacutre ceiling and portable fans. The first plant was set up at the Company's own land at Faridabad while an industrial plant was acquired on lease at Tarapur for the setting up of the second project. A third plant was set up at Noida in 1985. 1981 - 3,70,000 No. of equity and 3,000 pref. shares taken up by promoters, etc. In November, 1983, 8,80,000 No. of equity shares issued of which 1,30,000 shares were allotted to promoters,
etc.
The
balance
7,50,000
shares
offered
to
the
public.
1983 - The Company undertook to set up a new unit at Faridabad to manufacture a wider range of F.H.P motors and electrical household appliances. The necessary technical know-how and R&D facilities were available with the Company and the prototypes were under development. Negotiations were at an advanced stage for procuring plant and machinery needed for the project.
The
plant
went
on
stream
during
1984.
- The object of the public issue of capital during March, was to augment the Company's working capital and to provide funds for normal capital expenditure other than for substantial expansion
and
diversification.
- The Company undertook an expansion and diversification programme. A second plant was put up at Bachepalli in the Medak district of Andhra Pradesh to manufacture a wide range of 20
portable
and
other
fans
and
household
electrical
appliances.
- 1,77,500 shares issued at par of which 27,500 shares reserved and allotted to promoters, directors,
etc.
The
balance
1,50,000
shares
offered
to
the
public
in
March.
1984 - Pref. dividend raised to 15% from 1.1.1985. 12,50,000 rights equity shares offered at par (linked to 15% debentures) in the ratio 1:1 in Oct. 1985. Additional 3,12,500 No.of equity shares allotted to retain oversubscription. 62,500 No. of equity shares also offered at par to employees
(only
2,200
shares
taken
up).
- In Sept., 12,60,000 shares issued (prem. Rs 1 per share) of which 5,04,000 shares reserved and allotted to promoters, directors, etc. The balance 7,56,000 shares offered to the public. 1985 - A new factory was set up at NOIDA, Expansion of the Tarapur factory was undertaken. - M/s. KhaitanLefin Ltd., is a subsidiary of the Company. It ceased to be a subsidiary to the Company
during
1994-95.
- In October, in order to part finance the expansion programme and to augment long-term resources, the Company made a rights issue of 12,50,000 No. of equity shares of Rs.10 each, both at par, in the ratio 1 equity share for every equity share held and 1 debenture for every 10 equity
shares
held.
Each
debenture
offered
was
linked
to
10
equity
shares.
- In Feb./Mar., 15,00,000 right shares offered (prem. Re. 1 per share; prop. 1:1). 3,75,000 additional shares allotted to retain oversubscription. 75,000 shares were also offered (prem. Re. 1 per share) to the employees of the Company. Only 15,700 shares taken up. The remaining 59,300
shares
allowed
to
lapse.
1987 - The oscillating type air circulators was launched during the period and washing machines
were
under
final
21
stage
of
development.
- Jhunjhunu Holdings Limited became a wholly owned subsidiary of the Company during the year. 1991 - The Window type air cooler was launched during the year and the company had decided to
manufacture
both
floor
and
window
type
coolers
in
a
big
way.
- Lock-out at the Faridabad plant for 71 days and reduced activities at Noida and Tarapur plants
led
to
the
poor
performance.
1992 - For better utilisation of resources, the operations of Noida works were closed and its machinery 1993
-
shifted The
company
and
commissioned
proposed
to
diversify
at into
Faridabad sugar/agro
factory.
based
industry.
- 16,95,350 rights shares issued (prem. Rs 20 per share; prop. 1:2) only 9,82,956 share taken up. Another 6,76,344 shares devolved on the underwriters. The balance 36,050 shares remained
unsubscribed.
- 2,000 preference shares are redeemable during 31st March, 1993/96, 500 preference shares are redeemable during 29th March 1995/98 and 500 preference shares are redeemable during 23rd
May
1995/98.
1994 - With effect from 1st April, Khaitan Fans (I) Ltd. amalgamated with the Company. - 1000 pref. shares redeemed. 30,00,000 shares issued as fully paid up to the shareholders of Khaitan Fan India Ltd. (KFIL) without payment being received in cash and 14,700 No. of equity
shares
1995
-
of
96,500
Rs.10
each
preference
of
the
company
shares
are
held
by
redeemable
KFIL during
were 29th
cancelled. March.
1996 - 1,56,470 secured non-convertible debentures of Rs.100 each were issued to be redeemable at par in three equal annual instalments commencing from 21st April. As per the
22
scheme of arrangement Rs 2.45 lakhs of NCD were received and redeemed during the year, making
to
date
redemption
of
Rs
56.82
lakhs.
2001 - The Company equity shareholders is proposed to be held on March 10 to consider the scheme of arrangement of amalgamation between Jhunjhunu Electricals & Finance Ltd and Khaitan
Electricals
Ltd.
2005-Dlist from The Hyderabad stock Exchange Ltd(HSE) with effect from January 19, 2005. 2009- Khaitan Electricals Limited has informed that a meeting of the Board of Directors has been held on January 30, 2009 and discuss the following agenda : 1) Resignation of Sri O. Swaminatha Reddy as a Independent Director. 2) Resignation of Sri P. R. Agarwala as a Independent Director. 3) Appointment of Mr. A. K. Bhattacharya as Additional Director (Independent
Director).
2010- Khaitan Electricals Ltd has appointed Sri BiswajitChoudhary as Additional Director (Independent Director) from December 31, 2009 to the date of ensuing Annual General Meeting of the Company.
Khaitan (India) Limited engages in the manufacture and sale of electric home appliances primarily underthe Khaitan name in India. It offers various domestic products, which include fans, such as ceiling, table,pedestal, wall and cabin, fresh air, portable, and multipurpose fans; kitchen appliances, including mixergrinders, juicers, snacker, hand blenders and mixers, toasters, electric kettles, electric irons, and immersionheaters; lights comprising tube lights, compact fluorescent lamps, GLS bulbs, and decorative bulbs; pumpsconsisting of monoblock, centrifugal, jet, submersible, and mini submersible pumps; cooler kit and FHPpumps; circuit breakers; domestic wires and cables; and air coolers. The company also provides industrialproducts, including HD exhausts, air circulatos, axial flows, and mancoolers. In addition, it producessugarcane, sugar, and 23
molasses. Khaitan (India) Limited sells its products through a network of distributorsand dealers. The company also exports its products to Africa, the Middle East, and other Asian countries,including Sri Lanka, Bangladesh, Singapore, Myanmar, and Nepal. Khaitan (India) Limited is based inKolkata, India.
A never-ending vision
As a young entrepreneur in the early 60's, I was possessed by a burning desire to push the limits and create new goals for myself. Men like Henry Ford, Thomas Bata, Soichairo Honda and J N Tata who had the guts to build great brands with their own names, deeply moved me. And I was all set to turn "Khaitan" my family name into a household word as well. In my mind's eye I saw Khaitan fans in homes, offices, shops, factories and godowns. Today, Khaitan is already a household name and a leading brand throughout the country. But my vision continues to grow. Because everyday there is a new horizon to conquer, a new goal to reach.
S K Khaitan Chairman, Khaitan Group of Companies
A trail-blazing mission
Today Khaitan takes its place as one of the largest fan manufacturers in India. The winning reputation of the Khaitan name is built on the trust of millions of customers and the spirit of innovation kindled by my father, our Founder and Chairman. It is my mission to take the brand from strength to strength by tapping new markets, creating new models and continuously upgrading quality. After all, my name too is at stake.
Sunil K Khaitan Vice-Chairman, Khaitan Group of Companies
24
Values:
Build Trust:We will conduct all our business dealings with fair and ethical business practices and strive to build trust in the minds of all our stakeholders.
Belief in Excellence:We believe in setting higher levels of Excellence in all our actions and will recognize and reward the excellence achieved by our team members.
Delighting Customers:We will delight our customers by providing them world-class products and services and thereby enhance their quality of life.
Ensuring Accountability:We will work in a transparent, performance
oriented
environment
and
define
clear
accountability for our employees, while empowering them to
achieve
their
performance
goals
with
speed
and
efficiency.
Encouraging
Teamwork:We will ensure dignity and
25
respect for the individual while encouraging Teamwork.
Personal Growth:Every employee will be enabled to learn at the work place with significant opportunities for Personal Growth and Contribution to the organization.
Our products are testaments to our belief in excellence and are duly subject to the most stringent quality standards in the world. The Replacement Bond ensures that the customer always comes first. It is a bond signed by the Chairman of the Company, promising to replace any Khaitan fan with a manufacturing defect, discovered within one year of its purchase,with a new one. Till today, the ideagoes unmatched by any competitor. This confidence in our fans is a result of dedicated service, commitment to quality and careful attention to detail.
Khaitan Electricals product lines include the following –
DOMESTIC PRODUCTS:
26
Home Appliances - Mixer and Grinder,Snacker or Toaster, Juicer, Electric Kettle, Hand Blender ,Hand Mixer, Electric Iron and Imersion Rod.
Fans - Ceiling fans, Table fans, Pedestal fans, Wall fans and Fresh air fans.
Lights – CFL,Tubelights, GLS lamps and Decorative Bulbs.
Pumps- Monoblock, Jet Pumps, Submersible, Centrifugal, Mini-Submersible.
Cooler Kit and FHP motors
Circuit Breakers
Wires and Cables
Air Coolers
INDUSTRIAL PRODUCTS:
HD EXHAUST
AIR CIRCULATOR
AXIAL FLOW
MANCOOLER
The trust placed by the millions of consumers have fuelled the company into introducing the premium range of home appliances designed as a fitting accessory to new age India’s global aspirations. The company’s competitors in this segment include Philips , MorphyRichards , and Inalsa . FANS Ceiling,Table,Pedestal,Wall and cabin
27
Home Appliances 1. Kitchen Appliances
Juicer Grinder
Mixer
28
Chirga
Mixer
Grinder
Chirga
Mixer (Model No. KMG-802) Chirga
Grinder
Mixer (Model No. KMG-803s) Juicer
Grinder
Juice (Model No. KJE-601)
Extractor
Snacker
Electric (Model No. KTK-101)
Toaster
29
Snacker
Sandwich Toaster (Model No. KST-201) Autocrisp
Pop-Up (Model No. KPT-101)
Toaster
Ketli
Electric (Model No. KTK-101)
Kettle
Hand
Blender
(Model No. KHB-401)
30
Hand
Mixer
(Model No. KHM-501)
2. Electric Heater
Nafiza
Automatic Dry Iron Natasha
Automatic Dry Iron
Manisha
Automatic Dry Iron Tarasa
Automatic Dry Iron
3.Immersion Rod
31
Model
Description
Unbreakable Connection Cover Elegant Look 1 Year Guarantee
Lights CFL RETROFIT
NON - RETROFIT
32
Tubelights
Bulbs
33
Decorative Bulbs
Cooler kit and FHP motor
34
Circuit Breakers
Wires and cables
Telephone cables
35
Coaxail Cables
Pumps Monoblock
Centrifugal
Submersible 36
Aircoolers
INDUSTRIAL PRODUCTS
HD EXHAUST
37
AIR CIRCULATOR
AXIAL FLOW
MANCOOLERS
38
YEAR EVENTS 1975 - The Company was Incorporated on 27th October, as a private limited company and then converted into public limited company on 14th August, 1982. The Company was promoted by Shri S.K. Khaitan, the chairman of the Khaitan group of companies. -
The Company's object is to manufacture electric fans, industrial and ventilating fans,
electrical household appliances electric motors, cables, electric lamps, electrical meters etc. - The Company entered into an agreement with Khaitan Fans Pvt. Ltd. for obtaining "technical know-how" for the manufacture of electric fans and regulators and for using their trade mark "Khaitan". Since then the Company is engaged in the manufacture of various types of elctric fans
and
regulators.
- The Company started its first plant at Faridabad to manufacture a wide range of ceiling, exhaust, portable, industrial and ventilating fans, FHP motor and power driven pumps. To cater to the growing demand in Western India and overseas markets, a second plant was started at Tarapur near Mumbai in January 1983 to manufacutre ceiling and portable fans. The first plant was set up at the Company's own land at Faridabad while an industrial plant was acquired on lease at Tarapur for the setting up of the second project. A third plant was set up at Noida in 1985. 1981 - 3,70,000 No. of equity and 3,000 pref. shares taken up by promoters, etc. In November, 1983, 8,80,000 No. of equity shares issued of which 1,30,000 shares were allotted to promoters,
etc.
The
balance
7,50,000 39
shares
offered
to
the
public.
1983 - The Company undertook to set up a new unit at Faridabad to manufacture a wider range of F.H.P motors and electrical household appliances. The necessary technical know-how and R&D facilities were available with the Company and the prototypes were under development. Negotiations were at an advanced stage for procuring plant and machinery needed for the project.
The
plant
went
on
stream
during
1984.
- The object of the public issue of capital during March, was to augment the Company's working capital and to provide funds for normal capital expenditure other than for substantial expansion
and
diversification.
- The Company undertook an expansion and diversification programme. A second plant was put up at Bachepalli in the Medak district of Andhra Pradesh to manufacture a wide range of portable
and
other
fans
and
household
electrical
appliances.
- 1,77,500 shares issued at par of which 27,500 shares reserved and allotted to promoters, directors,
etc.
The
balance
1,50,000
shares
offered
to
the
public
in
March.
1984 - Pref. dividend raised to 15% from 1.1.1985. 12,50,000 rights equity shares offered at par (linked to 15% debentures) in the ratio 1:1 in Oct. 1985. Additional 3,12,500 No.of equity shares allotted to retain oversubscription. 62,500 No. of equity shares also offered at par to employees
(only
2,200
shares
taken
up).
- In Sept., 12,60,000 shares issued (prem. Rs 1 per share) of which 5,04,000 shares reserved and allotted to promoters, directors, etc. The balance 7,56,000 shares offered to the public. 1985 - A new factory was set up at NOIDA, Expansion of the Tarapur factory was undertaken. - M/s. KhaitanLefin Ltd., is a subsidiary of the Company. It ceased to be a subsidiary to the Company
during
40
1994-95.
- In October, in order to part finance the expansion programme and to augment long-term resources, the Company made a rights issue of 12,50,000 No. of equity shares of Rs.10 each, both at par, in the ratio 1 equity share for every equity share held and 1 debenture for every 10 equity
shares
held.
Each
debenture
offered
was
linked
to
10
equity
shares.
- In Feb./Mar., 15,00,000 right shares offered (prem. Re. 1 per share; prop. 1:1). 3,75,000 additional shares allotted to retain oversubscription. 75,000 shares were also offered (prem. Re. 1 per share) to the employees of the Company. Only 15,700 shares taken up. The remaining 59,300
shares
allowed
to
lapse.
1987 - The oscillating type air circulators was launched during the period and washing machines
were
under
final
stage
of
development.
- Jhunjhunu Holdings Limited became a wholly owned subsidiary of the Company during the year. 1991 - The Window type air cooler was launched during the year and the company had decided to
manufacture
both
floor
and
window
type
coolers
in
a
big
way.
- Lock-out at the Faridabad plant for 71 days and reduced activities at Noida and Tarapur plants
led
to
the
poor
performance.
1992 - For better utilisation of resources, the operations of Noida works were closed and its machinery 1993
-
shifted The
company
and proposed
commissioned to
diversify
at into
Faridabad sugar/agro
factory.
based
industry.
- 16,95,350 rights shares issued (prem. Rs 20 per share; prop. 1:2) only 9,82,956 share taken up. Another 6,76,344 shares devolved on the underwriters. The balance 36,050 shares remained
unsubscribed.
41
- 2,000 preference shares are redeemable during 31st March, 1993/96, 500 preference shares are redeemable during 29th March 1995/98 and 500 preference shares are redeemable during 23rd
May
1995/98.
1994 - With effect from 1st April, Khaitan Fans (I) Ltd. amalgamated with the Company. - 1000 pref. shares redeemed. 30,00,000 shares issued as fully paid up to the shareholders of Khaitan Fan India Ltd. (KFIL) without payment being received in cash and 14,700 No. of equity
shares
1995
-
of
96,500
Rs.10
each
preference
of
the
company
shares
are
held
by
redeemable
KFIL
were
during
29th
cancelled. March.
1996 - 1,56,470 secured non-convertible debentures of Rs.100 each were issued to be redeemable at par in three equal annual instalments commencing from 21st April. As per the scheme of arrangement Rs 2.45 lakhs of NCD were received and redeemed during the year, making
to
date
redemption
of
Rs
56.82
lakhs.
2001 - The Company equity shareholders is proposed to be held on March 10 to consider the scheme of arrangement of amalgamation between Jhunjhunu Electricals & Finance Ltd and Khaitan
Electricals
Ltd.
2005-Dlist from The Hyderabad stock Exchange Ltd(HSE) with effect from January 19, 2005. 2009- Khaitan Electricals Limited has informed that a meeting of the Board of Directors has been held on January 30, 2009 and discuss the following agenda : 1) Resignation of Sri O. Swaminatha Reddy as a Independent Director. 2) Resignation of Sri P. R. Agarwala as a Independent Director. 3) Appointment of Mr. A. K. Bhattacharya as Additional Director (Independent
Director).
2010- Khaitan Electricals Ltd has appointed Sri BiswajitChoudhary as Additional Director
42
(Independent Director) from December 31, 2009 to the date of ensuing Annual General Meeting of the Company.
Laurels for quality The untiring quest for superlative quality and innovative design has brought some laurels both at home and abroad. They represent our commitment to quality and service.
ISO 9001 for the Kolkata and Hyderabad factories (including design) Awards from Export Promotion Council, Govt. of India CE Marking for our ceiling fan The CSA certification marking, with the adjacent Indicator: NRTL/C – Canada
A landmark achievement Khaitan carved a niche for itself in the fan industry by creating a new market for exhaust fans with its unique KhaitanFreshair fans. It resegmented the category by positioning KhaitanFreshair fans as the modern-day answer to kitchen ventilation and bathroom hygiene. With bathrooms and kitchens becoming more and more compact, KhaitanFreshair fans have become an essential accessory for living well. What's more, backed by modern, streamlined looks KhaitanFreshair fans also add style to bathrooms and kitchens.
43
44
1. Good brand image Nationwide. 2. Good quality of products. 3. Low price. 4. Wide range of products. 5. Consumer trustKhaitan a lot therefore is able to develop a long term relationship with its customers.
1. Weak distribution channel. 2. Low brand awareness of some products in Market. 3. Stock out problem is always prevalent. 4. High price of the products 5. Consumers are not fully satisfied with its after sales service. 6. There is ineffective personal or impersonal communication with the customers or middleman in the channels of distribution. 7. Sales promotion technique and various trade promotion techniques like gift offers,
discounts, dealer contest, and push money are not taken care.
45
1. Huge market to tap. 2. Collaboration with advertising agencies. 3. People these days are ready to spend more appliances. 4. Adopting new technology and becoming innovative.
1. Established competitors. 2. Price war.
Before doing comparison I have taken few products of few brands from each category of Home Appliances and these products are having similar or almost similar attributes. The name and the specific attributes of these products are discussed below. Product Features:46
Category Name: - IRON Khaitan Soleplates
Philips
Non stick coate Gold American heritage coated
Auto cut Off Self Cleaning Double active system Dual Voltage Wattage
1300W
1200W
Morphy Richa Inalsa pro max (Dolphin) Coated soleplat Non stick coate
1300W
1400W
Category Name: - MIXER GRINDER
Khaitan Chutney Grindi Number of Blad Chutney Blade Number of Jars Chutney Jar Material of Jars
Philips 1632
Inalsa (star Dx)
MorphyRicha DIVO)
4
4
4
4
2
3
3
3
Plastic & Shock proof Polycarbonate Stainless plastic And Stainless Ste steel Body Detachable pulp Juicer Accessori Pulp Container Pulp Container and Food Pusher Collector Stirrer Cum Scraper Cord Winding Plastic Plastic Material of Lid Polycarbonate Universal Heavy Duty Universal Motor Type Piano Type Type of Switch Piano Type Rotary Switch Switch Switch Power 550 500 Consumption 500 (Watts)
Category name: - AIR COOLER
47
Polycarbonate Jar Pulp Container
Plastic Plastic Rotary Switch
500
Khaitan
Usha Dolphin
Kenstarturbocool
Voltage
230V
230V
250V
Wattage
240W
240W
240W
RPM
1350
1400
1350
Water Tank Capacity
40 Litres
32
35
Air Throw Distance
30 ft.
32 ft.
30 ft.
Air Delivery
3000 M /hr
3250 M /hr
2850 M /hr
Cooling Area
600 sq. ft.
600 sq. ft.
600 sq. ft.
Rust body
proof
all
plastic
Auto water controller
level
Ice chamber
48
The organized retail industry in India is just 3% and it is growing at a faster rate because of strong increase in income, changing lifestyle, and demographic patterns. In the last 10 years, a huge growth has taken place in the consumer durables retail market. Taking the present situation into account, one can see that the demand for consumer durables has been increasing.
The increase in demand for consumer durables retail is because of the increase in disposable income levels in families, since most families are based on a double income these days. The rise
49
in the levels of family income has transformed the visage of the Indian lifestyle which means that most companies view India as a prime destination for consumer durables retail. Most of the consumer durables retail market comprises of television sets, audio systems, VCD players, washing machines, microwave ovens, air conditioners, toasters, juicer-mixer-grinders, food- processors and so on. Though Indian consumer durables have been increasing in demand within the domestic market, it has tough competition from international consumer durables companies such as Sony, Samsung, LG, Philips, Inalsa, Morphyrichards, Black and Decker, . In fact, according to the Indian Retail Sector analysis 2008-09, the size of the Indian consumer durables
and
tech
led
industry
is
valued
at
Rs
35,000
crore.
The performance of the consumer durables retail is critical to the growth of the retail industry of India. There are new ventures being forayed into by the big Indian companies. For instance,
we have the Speech and Software technologies, from the Tata Group which is working towards the launch of consumer durables in India . TATA Croma is one of its retail outlets which is proving itself as one of the major competitors in the retail market. The Tata Group has already collaborated with Woolworths - an Australian company.
Such steps in the consumer durables retail sector would definitely facilitate the need for Foreign Direct Investment. However, some international retailers have already started investing in the Indian consumer durables market, such as Metro, Spa International, and Dairy Farm. Among Indian companies, Pantaloons has already started its saga of consumer durables retail. The commodities would constitute color televisions, washing machines, refrigerators, and 50
microwave ovens. The chain of goods will be available in Big Bazaar, Food Bazaar, Ezone, Home Town, Electronic bazaar, which is also owned by Pantaloons.
It is quite a challenge to maintain the consumer durables retail market in India because of the unprecedented challenges that are attached with it. However, the consumer durables retail market in India is here to stay because of the new age tastes of the modern consumer in India.
Possibly the most challenging concept in marketing deals with understanding why buyers do what they do (or don’t do). But such knowledge is critical for marketers since having a strong understanding of buyer behavior will help shed light on what is important to the customer and also suggest the important influences on customer decision-making. Using this information, marketers can create marketing programs that they believ e will be of interest to customers. As you might guess, factors affecting how customers make decisions are extremely complex. Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make things more interesting. Since every person in the world is different, it is impossible to have simple rules that explain how buying decisions are made. But those who have spent many years
51
analyzing customer activity have presented us with useful “guidelines” in how someone decides whether or not to make a purchase.
52
01. Need Recognition:-
The first stage of the buyer decision process in which the consumer recognizes a problem a need. e.g. The need can be triggered by internal stimuli when one of the person’s nor mal needs – hangers, thirst, Sex – rises to a level – high enough to become a drive. The need can be triggered by external stimuli. 02. Information Search:-
The stage of the buyer decision process in which the consumer is around to search for more information. The consumer may simply have heightened attention or may go into active information search. The consumer can obtain information from any of several sources. I.e. personal
sources
(family,
friends,
and
neighbours)
commercial
sources
(advertising
sales people’s dealers, packaging, displays). Public sources (mass media etc.) Experiential sources (handling, examining, using the product). 03. Evaluation of Alternatives:
The stage of the buyer decision process in which the consumer uses information to evaluate alternative bounds in the choice set. 04 Purchase Decision:-
The stage of buyer decision process in which the consumer actually buys the product. Two factors can come between the purchase intention and the purchase decision. The first factor is attitudes of others. The second factor is unexpected situational factor. 53
05. Post Purchase Behaviour:
The stage of the buyer decision process in which consumers take further action after purchase based on their satisfaction or dissatisfaction.
A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal a strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning of marketing
54
plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results.
I
adopted
different
marketing
strategies
like
combinations,
schemes,
discounts,
guarantee/warranty and highlighting product features and its various attributes. I created an impression in the minds of our customer by creating its Brand image which can play huge role in boosting sales.
The basic purpose of determining the marketing mix is to satisfy the needs and wants of the customers in the most effective manner. The “Marketing Mix”, originally known as “The Four Ps”, is a combination of product, price, place [distribution], and promotion activities that are applied to a particular target market. The general idea is to combine (mix) the variables to generate an optimal, positive, and desired response in the target market
Product
An object or a service that is mass produced or manufactured on a large scale
with a specific volume of units. A typical example of a mass produced service is the hotel
55
industry. A less obvious but ubiquitous mass produced service is a computer operating system. Typical examples of a mass produced objects are the motor car and the disposable razor.
Khaitan has a huge variety of products ranging from appliances to fans to luminaries. The products are imbibed with excellent features with a 2 years warranty whichKhaitan provides along with. All these products are produced in huge volumes and are designed with the latest technologies.
– The Price
price is the amount a customer pays for the product. It is determined by a
number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.
Khaitan offers a wide range of products at different prices for various classes of goods with respect to the prices of its competitor’s products.
– Place
Place represents the location where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.
Khaitan has a good distribution channel in the Markets and mainly the purchases are made in bulk.
– Promotion Promotion
represents all of the communications that a marketer may use in
the marketplace.
56
In our training we promoted Khaitan products to Customers primarily by calling and by distributing Brochures of product range.
57
Fig 4 4.2 Types of Data and data collection:
The research includes primary as well as secondary data.
Primary data: - The primary data is collected through questionnaire, interaction with
customers, Floor Manager and PROMOTORs (In Shop Demonstrators). The primary data, which is generated by the above methods, may be qualitative in nature (usually in the form of words) or quantitative (usually in the form of numbers or where you can make counts of words used).
Secondary data : - The secondary data is collected through the daily sales report. And
Internet is also one of the main sources of the data collection.
Sampling: Judgmental Sampling is used here to fill up questionnaire and to collect
primary data.
Population of Interest :- In this marketing research population of interest is the
customers visiting shopping complexes. Sample Size: The sample size is 100
58
Demographic region : - NorthDelhi
Research design:
Descriptive research design has been used in this study. A customer’s perception regarding home appliances has helped us to know about this particular segment of Khaitan Electricals ltd. This method enabled us to a clear view of outcomes, opportunities and even the risk-oriented areas. To further analysis all these mention effect in detail, descriptive method has been used which gave an insight of all the possible reasons that are responsible for the growth of this segment. To further facilitate the research, structured as well as unstructured questionnaire, observations and consumer survey has been done. Focus group interview is also taken. Data Analysis Technique:
After collecting data it is being analyzed using Microsoft Excel.
Limited time was the major constraint of this study. Sample size (which is 100) is also a limitation of this study as the sample may or may not be the representative of the population.
Comparison of all brands was not possible because of non- availability of every brands on the same floor.
Some consumers are not cooperative and some do not know what to say.
59
Before we analyzed the data we have collected through questionnaire fill up by respondent, we will discuss the demographic factors related Respondents. Total no of our Respondents is 100.
1. Discussion about the sex ratio of our respondents.
Male Female
55 45
So 55% of the respondents were Male and 45% were female.
2. Age of respondents: AGE
No of respondents 60
% OF RESPONDENTS
BETWEEN 15-25
22
22
BETWEEN 25-35
16
16
BETWEEN 35-45
35
35
BETWEEN 45-55
20
20
ABOVE 55
7
7
So from the above pie chart we can say that the major respondent were of the age 2545(51%). And respondents of these age groups are the biggest consumer of Home Appliances.
3. Occupation of Respondents: Profession
no of respondents 61
Student
18
Self Employed
20
House Wife
28
Employee
29
Retired Person
5
So 29% of the respondents is Employee, 28% is house wife and 20% is self employed. So this is the main population who uses Home Appliances mostly. So through this wide variety of respondents which have different will give us insight about brand presence of Khaitan electrical and its competitors.
62
1. Which Company products you prefer most?
Company Name
Rating
Khaitan
33
Morphy Richards
20
Inalsa
10
Philips
37
2. Are you aware about the KhaitanHome Appliances products?
63
Influence
Rating
Yes
34
No
66
3. How do you come to know about KhaitanPlatini products?
Method Name
Rating
64
Newspaper
29
T.V
38
Internet
18
Others
15
4. Is KhaitanPlatini is successful in satisfying the customer demand?
65
Influence
Rating
Yes
36
No
64
66
5. Does celebrity endorsement influence you to buy a particular product?
Influence
Rating
Yes
40
No
60
67
6. While purchasing any home appliances what factor you look into the product?
FACTOR
RATING
Price
30
Quality
22
Design
10
Features
38
68
7. Which retail outlet you prefer most for the pu rchase any electrical appliances?
OUT LET
Preference
Modern Retail Chains
12
Company Showrooms
20
Nearby Retailer
30
Authorised Dealer
38
69
8. Are you satisfied with the after sales services of Khaitan home appliances?
Influence
Rating
Yes
30
No
70
70
Almost majorityof Customers wanted to pay more formore features in Khaitan Products. So company can add some more features or can launched Premium Products.
71
Some of the persons are already using Khaitan appliances and are satisfied with it.
Majority persons are not aware of KhaitanPlatini products.
Many customers have rated Khaitan products as durable and of good quality.
Majority of the customer is totally dissatisfied with the after sales service of Khaitan appliances.
72
Looking at the survey as a whole it is very clear that many people are using Khaitan appliances. Some people are not using its products p roducts but they are interested to use in future. Khaitan has a good brand name with wide product range. But its services provided needs a lot of improvement in after sales services; it can definitely increase its market share in its product range. So on this basis I can say that there is a good market potential of Khaitan products not only in New Delhi and NCR region but also in other parts of india in near future.
73
First of all I would like suggest the more availability of Khaitan product in store. I noticed that in most of the store Khaitan Promoters complained about the shortage of the product. Because of shortage of the Khaitan product many customer either return or tend to another brand.
Ensure there is widespread distribution of Product brochures in the retail stores.
The colour of Every Home appliances is of White colour, so Khaitan can bring variety in colour, they can launch Black or Grey colour Model specially those Home appliances which are used in Kitchen, like mixer grinder, juicer , microwaves, toaster etc because White colour products become dirty and not so easy to maintain.
Training Should be provided to Khaitan Promoters at regular interval and at the time
of new Product launched
Khaitan should concentrate on CRM, and should maintain a data base of customer choice and preference so that they can satisfy the need of customers.
Price factor :Talking about KhaitanHome Appliances, though the product has been targeted for its premium segment but price should be of affordable range or else varieties should be provided i.e. different range should be made available(in products).
74
Collaboration with advertising agencies can be made which will help in promoting its products.
The most important thingh which they should do is to improve the after sales service, which is very poor.
Books: 1. Principles of marketing by Philip Kotler and Gary Armstrong. th
2. Marketing Management (12 edition) by Philip Kotler and Kevin Lane K eller.
Web sites:1. www.khaitanelectricals.com 2. www.wikipedia.org 3. http://en.wikipedia.org/wiki/Brand_management 4. http://www.marketingsciencecentre.com/page5/page20/brandimage.html 5. http://www.khaitan.com 6. http://ezone.futurebazaar.com 7. www.economictimes.com
Search engines: www.google.com 75
http://in.answers.yahoo.com
SECTION 6
76
Questionnaire (Customer) To know customer’s perception towards Kh aitan
El ectri cals as
a Brand
in Home appliances and factors influencing their buying decision during purchase of Home appliances Dear Respondents, We would be grateful if you could spare some of your time to response to the following questions needless to say your response would be treated as confidential and would be used only for the purpose of study. Thank you for your time, Year 2011
1.
Which Company products you prefer most?
77
Company Name
Rating
Khaitan Morphy Richards Inalsa Philips
2. Are you aware about the KhaitanHome products?
Influence
Rating
Yes No
3. How do you come to know about KhaitanHome Appliances?
Method Name
Rating
Newspaper T.V Internet Others
4. Is Khaitan successful in satisfying the customer demand?
Influence
Rating
Yes
78
No
5. Does celebrity endorsement influence you to buy a particular product?
Influence
Rating
Yes No
6. While purchasing any home appliances what factor you look into the product? FACTOR
RATING
Price Quality Design Features
7. Which retail outlet you prefer most for the pu rchase any electrical appliances?
OUT LET
Preference
Modern Retail Chains Company Showrooms Nearby Retailer Authorised Dealer
79
.
8 Are you satisfied with the after sales services of Khaitan home appliances?
Influence
Rating
Yes No
PERSONAL DETAILS Name: Address:
Between 15-25 Between 35-45 Gender:
Male
Between25-35 Between 45-55 Female
80
Above 55
