A REPORT ON “SALES OF COMPETITIVE BRAND OF FULLY AUTOMATIC WASHING MACHINES”

UNDER THE GUIDANCE OF

Dr. RESHMA NASREEN

BY

MD.SHAHIDULLAH

JAMIA HAMDARD UNIVERSITY

FACULTY OF MANAGEMENT

NEW DEHI-110062

2010-11

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DECLARATION

I MD.SHAHIDULLAH, hereby declare that this project titled “SALES OF

COMPETITIVE BRAND OF FULLY AUTOMATIC WASHING MACHINE”(with special

reference to IFB industries Ltd, New Delhi). It is based on original project study

conducted by me under the guidance of DR.RESHMA NASREEN

I further declare that this project has not previously formed the basis of

the award of any degree or Diploma or similar title of recognition.

Place: NEW DELHI

Date: (MD.SHAHIDULLAH)

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CERTIFICATE BY THE GUIDE

It is certified that this dissertation titled “SALES OF COMPETITIVE BRAND OF

FULLY AUTOMATIC WASHING MACHINE” (with reference IFB Industries Ltd, New

Delhi )” is based on an original project study conducted by Mr .MD.SHAHIDULLAH

of 3rd semester of MBA under my guidance. He has attended the required sessions

held.

This project report has not formed the basis of the award of any degree / diploma

by University or Institutions.

Place: New Delhi DR.RESHMA NASREEN

DATE

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ACKNOWLEDGEMENT

I would like to express my profound gratitude to all those who have being

instrumental in preparation of my project report. This project would not have

been possible without the support of many people. I would like to thanks head of

department MR.SHIBU JOHN, for his support and help. Many thanks to my guide

DR.RESHMA NASREEN, , For her silent and meaningful guidance towards the

career development. who impressed me with his dedication and sincerity to the

subject of Marketing Management.

I thank Mr. AMIT KUMAR of IFB Industries Ltd for being my guide at the

company and for providing constant support and encouragement throughout the

project. Without whose support, the execution of the project idea wouldn’t have

been this easier.

Last but not the least my special thanks to my Parents and family members who

supported me and my dear friends who encouraged me.

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CONTENT

1. INTRODUCTION

2. LITERATURE REVIEW

3. METHODOLOGY

4. DATA INTERPRETATION AND ANALYSIS a. -BASED ON THE SURVEYb. -COMPARATIVE ANALYSIS

5. SUMMERY OF FINDINGS

6. RECOMMENDATION & SUGGESTIONS

7. ANNEXURES

8. BIBLIOGRAPHY

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EXECUTIVE SUMMARY

The project was carried out at IFB Industries Ltd. at south Delhi region

Objectives

The objective was carried out for two main objective. The first objective was

carried out the market survey for knowing prevailing market condition of IFB

washing machines in south Delhi market. The second objective of project was to

study the comparative sales analysis of IFB with other competitors

RESEARCH METHODOLOGY

The descriptive nature of the research necessitated collection of primary data from

dealers of washing machines through market survey. Both the methods, personal

interview technique and mail interview technique were used with the measure

emphasis on personal interview method. Interviews were conducted through the

“structure questionnaire”.

Sampling Technique

Random Sampling technique was used to select the dealers . Out of nearly 200

dealers of washing machines ,randomly 25 % of population was considered as a

sample size. 50 dealers were visited to collect the information about the washing

machine market.

The project was carried out for a period of 60 days. After collecting the detailed

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information from the market, analysis of the data was made. The market research

has reveled many facts and figures about washing machines market

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FUTURE OF WASHING MACHINE IN INDIAN MARKET

Demand is the notion of an economic quantity that a target population or market

requires under different assumptions of price, quality, and distribution, among

other factors. Latent demand, therefore, is commonly defined by economists as the

industry earnings of a market when that market becomes accessible and attractive

to serve by competing firms. The latent demand for washing machines in India is

not actual or historic sales. Nor is latent demand future sales. In fact, latent demand

can be either lower or higher than actual sales if a market is inefficient (i.e., not

representative of relatively competitive levels).

Indian market is fast moving towards high-end customized products, which are

aesthetically designed to complement the modern households. The need at this

moment of time is to continuously innovate and come out with product variations

across categories to meet the expectations of a varied class of customers.

Dismantling of quantitative restrictions on imports of consumer electronics has let

to customer tariffs gradually coming down. In such environment, the industrial

units could only survive by improving the efficiency and productivity.

India is a fast developing country and is proving to be a major challenge to the

already established countries of the world. This industry expects to grow by 60 per

cent for washing machines in this year. This area needs to be regularly updated

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with newer technologies, so that the innovations are meaningful to the customers.

Setting up of manufacturing facilities by MNCs in India, which not only meet

international standards but also reduce trade barriers between two countries and

give a thrust to the exports of the company, which is very important. It is always

needed to make future plans to grow its existing market, continue with its

operational and marketing initiatives, continue to innovate, expand its product

portfolio and to start manufacturing everything in India

Company profile

IFB was incorporated on 12th September 1947, in West Bengal. The

Company's object is to manufacture fine blanking tools, press tools and fine

blanked components used in a wide range of precision engineering industries. The

Company was promoted by Bijon Nag, an engineer by profession.

The Company entered into a technical-cum-financial collaboration agreement

with Heinrich Schmid, Rappers will Switzerland. Under this agreement, the

collaborators were to furnish technical know how, lay-out, design engineering

services, drawings, etc. for the company's plant. The collaboration also agreed to

participate in the equity share capital of the company to the extent of Rs.2.80 lakhs

(10% of the subscribed and paid-up capital).

In the year 1987 The Company undertook to set up a second blanking unit

at Bangalore, The Company set up a joint venture company in India called RHW

India Pvt. Ltd., with P.A. Rentrop, Hubert and Wagner GmbH & Co. KG, West

Germany, for the manufacutre of automatic seat adjustment mechanism. The

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Company participated to the extent of 60% and RHW 40% in the equity capital of

this new company.

IFB proposed to set-up another joint venture in USA with a paid-up capital

of US $ 100,000 to intensify sales of the company's products mainly machine tools

in USA and Canada, The Company was one of the promoters of IFB Agro

Industries Ltd., IFB Securities Ltd. and IFB Leasing and Finance, Ltd.

In the year 1989 The Company entered into a collaboration agreement with Bosch-

Siemens Hausgerate GmbH, W. Germany, for production of fully automatic

washing machines and for the manufacture of the state-of-the-art domestic

appliances. IFB proposed to acquire a new shed admeasuring 64,000 sq. ft. at

Verna, Goa. When ready, it was proposed to shift the facilities available in

Bangalore for washing machines sub-assembly and the assembly of the other set

up in Corlim, Goa to the above said shed in Verna, Goa

The Company has set up a company called European Fine Blanking Ltd., at

Wrexham in North Wales, U.K. with its European partners for the manufacture of

fine blanking tools and components for the UK and other European markets. The

company participated to the extent of 71% and its European partners 29% in the

equity capital of this subsidiary company

Company vision

IFB will be synonymous with Innovation & Technology in its chosen fields of business activities.

IFB will excel in Quality & Services to be in consonance with Global

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Standards.

Company Mission

Continuously maximizing company's wealth by manufacturing and marketing

best quality engineering products that go into daily life.

BOARD OF DIRECTORS MR BIJON NAG CHAIRMAN

MR .BIKRAMJIT NAG JOINT EXECUTIVE CHAIRMAN & MANAGING DIRECTOR

MR. P. K. BISWAS NOMINEE DIRECTOR OF IDBI

DR. RATHINDRA NATH MITRA DIRECTOR

MR RADHARAMAN BHATTACHARYA DIRECTOR

MR SOMEN BAL DIRECTOR

MR R. MURALIDHAR DIRECTOR

MR K. M. UNNIKRISHNAN DIRECTOR

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Products of IFB :

IFB has several sectors and have a wide range of products today. The products manufactured by IFB today is very large and wide too. They manufacture products keeping in mind the larger industrial and technological picture.

The advanced technological products include such things as:

Tools Machine Tools

Straighteners

Decoilers

Strip loaders

However, the one sector where it has quite a thriving hold is in the scope of home appliances. Some of the most manufactured and most used home appliances by IFB include products such as:

Washing machines Dryers

Microwave Ovens

Dish Washers

Industrial Dishwashing Solutions

IFB also makes additives, which are designed complimentarily to their other products. The additives from the IFB brand include:

Protecta

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Descale

Fabo

Autodish Dish Detergent

Autodish Rinse Aid

Dishwasher Salt

Limo

IFB_AW60-806 IFB Executive Plus

6 kgs 5kgs

Top Loading Front loading

Fully automatic Fully automatic

IFB-Digital IFB-Senator

6kgs

6 kgs Fully automatic

Front loading Front loading

Fully automatic

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IFB Elena IFB DIGITAL EX

6 kgs

5kgs Fully automatic

Front loading Front loading

Fully automatic

THE MARKET

The term market cannot be put together in a single way. It has a very broad sense. It

may be considered as a convenient meeting place where buyers and sellers gather

together for exchange of goods. A market can exist wherever buyers and sellers are in a

free contact with one another that only a single a single price prevails for a commodity

at any given time. The concept of market is very important in marketing. The American

Marketing Association defines a market as the aggregate demand of the potential buyers

for a product/service. Philp Kotler defines a Market as an area for potential exchanges.

Thus a Market is a group of buyers and sellers interested in negotiating the terms of

purchase/sale of services. The negotiation work may be conducted face to

face at a certain place, e.g. a village Mandi, or it may be done through other means of

communication such as

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Correspondence, and phone or cable or it may be done through Business Middlemen,

e.g. Brokers and commission agents. A market consists of the forces of supply (sellers)

and demand(buyers) facilitating an exchange process between sellers and buyers.

Exchange is the heart of commerce or marketing. Exchange is possible when there are

two or more parties who each have something they desire for something else. Exchange

may take place with or without money. As a medium of exchange, money speeds

trading. It may also be affected through middlemen in commerce, e.g., trader or agent.

Middlemen also facilitate Marketing operations.

MARKETING

Marketing indeed an ancient at which has been practiced in one form or other. Philip

Kilter defines Marketing as “a social process through which individuals and groups

obtain what they need and once through creating, offering and freely exchanging

products and services”. Peter Ducker puts it this way “The aim of marketing know and

understand the customer that the product or service fits him and sells itself.” Marketing

is recognized as the significant activity in our society. Marketing is all around us. Our

delivery existence, our entire economic life, our life styles are continuously affected by

wide range of marketing activities. The food we eat the clothes we wear, the housing

that shelters us, the comforts and amenities we enjoy in our home and at work places,

the health and welfare activities which give us peace of mind, all these are profoundly

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affected each day by the marketing system. Our entire economic life shall be simply

paralyzed, if marketing system fails to shoulder its main responsibility, viz., discovering

and serving the market and demand. Marketing has achieved social importance because

it is entrusted with the task of creation and delivery of standard of living to society.

Marketing is the vital connecting link between producers

(production) and consumers (consumption). It is primarily responsible to keep the

wheels production and consumption constantly moving or running at their optimum

speed. Customer

satisfaction is one of the most studied areas in marketing. Over the past 20 years, more

than 15000 academic and trade articles have been published on the topic. In fact, the

journal of Advertising Research has suggested that customer satisfaction surveys may

be the fastest growing area of market Research. Such devotion to the subject is certainly

understandable given that satisfaction is a central theme of the marketing concept and is

frequently in the mission statements and promotional campaigns of American

corporations From a historical perspective, a great deal of the work in the customer

satisfaction Area began in the 1970s, when consumerism was on the rise. The rise of the

consumer movement was directly related to the decline in service felt by many

consumers. The attributed to a number of sourses.First skyrocketing inflation during

this period forced many firms to slash service in the effort to keep prices down.

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As time went on, labors shortages also contributed to the decline in customer service.

Service workers who were motivated were difficult to find, and who could blame them?

The typical service job included low pay, no career path, no sense of pride and no

training in customer relations.Atumation also Contributed to the problem. Replacing

human labor with machines indeed increased the efficiency of many operating systems,

but often at the expense of distancing customers from the form and leaving customers to

fund for them. Finally, over the years customers have become tougher to please. They

are more informed

than ever, their expectations have increased, and they are more particular about where

they spend their discretionary dollars. Researchers in the field of consumer satisfaction

clearly recognized the connection between the study of satisfaction and the consumer

movement. The connection between the marketing concept, satisfaction, and

consumerism continues to be one of the driving forces behind the study of consumer

satisfaction

CONCEPTS OF MARKET

THE PRODUCTION CONCEPT

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The production concept is one of the oldest concepts in business. The production

concept holds that consumers will prefer products that are widely available and

Inexpensive. Managers of production-oriented businesses concentrate on achieving high

production efficiency, low costs and mass distribution. They assume that consumers are

Primarily interested in product in low prices. This orientation makes sense in

developing consumers are more interested in obtaining the product than in its features.

It is also used when a company wants to expand the market. Some service organizations

also operate on the production concept; many medical and dental practices are

organized an assembly-line principles, as are some government agencies (such as

unemployment offices and license bureaus).Although this management orientation can

handles many cases per hour, it is open to charges of impersonal and poor quality

service.

THE PRODUCT CONCEPT

The product concept holds that consumer will favor those products that offer the most

quality, performance, or innovative features. Managers in these organizations focus on

making superior products and improving them over time. They assume that buyers

admire well-made products and can appraise quality and performance. However, these

managers are sometimes caught up in a love affair with their product and do not realize

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what the market needs. Management might commit the “better-mousetrap “Fallacy,

believing that a better

mousetrap will lead people to beat a path to its door. Product-oriented companies often design their

product with little or no customer input. They trust their engineers can design exceptional products.

Very often they will not even examine competitor’s products. The product concept can lead to

marketing myopia. Railroad management through that travelers wanted trains rather than

transportation and overlooked the growing competition, buses, trucks and automobiles. Slide-rule

manufacturers thought that engineers wanted slide-rules and overlooked the challenge of pocket

calculators. Colleges, departments and the post office all assume that they are offering the public right

product and wonder why their sales slip. These organizations too often are looking into a mirror when

they should be looking out of the window.

THE SELLING CONCEPT:

The selling concept holds that consumers and business, if left alone, will

ordinarily not buy enough of the organization’s products. The organization must,

therefore undertake an aggressive selling and promotion effort. This concept

assumes that consumers typically show buying inertia or resistance and must be

coaxed into buying. It also assumes that company has a whole battery of effective

selling and promotion tools to stimulate more buying. The selling concept is

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practiced most aggressively with unsought goods, goods that buyers normally do

not think of buying, such as insurance, encyclopedias, and funeral plots. These

industries have perfected various sales techniques to locate prospects and hard- sell

them on their product benefits.

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METHODOLGY

A descriptive research as been undertaken such as survey, questionnaire etc for the

present study. Descriptive research included surveys and fact-findings inquire of

different kinds.

TOOLS FOR DATA COLLECTON

The various methods of data collection adopted by me in this project were both of

primary and secondary nature. Primary data are collected specifically for research

needs at hand. Secondary data are published data collected for purposes ot6her

than the specific research needs at hand.

PRIMARY DATA

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For the information needs, which are not fulfilled by the secondary data, the

researcher needs to depend on primary data. For the primary source of collecting

data, the researcher needs to depend on primary data. For the primary source of

collecting data for the project, i relied on the data given by my respondents in the

questionnaire designed by me. Communicating with the responds through

questionnaires collected it. The questions were administered through personal

interviews.

SECONDARY DATA

As far as secondary source of data collection is concerned, I relied on the

various books, magazines, journal and internet websites for finding

relevant for my project. These are mentioned in the Annexure at the end of

the report.

SAMPLE SIZE

Size of the sample was taken into consideration depending upon couple of factors such as

duration of the project, no. of dealers available for each survey etc.

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Competitive analysis it was decided to take a sample of 50 dealers in each branch and

then to make a comparative study among them. There are about 200 dealers at IFB, Okhla

branch only, but it was not possible to take a sample size of more then 50 dealers in south

Delhi region.

SAMPLING TOOL:

The most common instrument is collecting the primary data is the questionnaire. It

is standardized from containing a list of questions to be asked to the respondents

for the purpose of gathering data. Thus the questionnaire was designed and used in

data collection. A copy of questionnaire is included as annexure at the end of the

report.

FIELD WORK

Fieldwork is very important step in the process of Market Research. The

respondents were interviewed personally using a structured questionnaire. It has

been carried out with prior planning and utmost accuracy. It has been carried out

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with in a very systematic manner. The area of fieldwork was restricted to South

Delhi.

4 Objective of the Study

The objective of the study is classified into Primary objectives and Secondary

objectives as they are as follows.

Primary Objective

The primary objective of this study is to identify gap between the sales of different

brands of washing machines in south Delhi.

Secondary Objective

To find out various attributes or factor that affect the buying Behavior.

To evaluate the alternative preferences of the customer.

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To analyze the performance of dealers.

To study the areas of improvement & give suggestion for further improvement

of IFB okhla branch.

To study the importance of various attributes as perceived by the respondents.

LIMITATION OF THE STUDY

Since nobody is perfect in this world, everyone has some limitation. So is the case

with this study also. These are the following limitations;

a) Due to shortage of time, study was confined to some specified areas of south

delhi city branches only.

b) Some respondents were hesitant to disclose some information or have given

incomplete information.

c) There might have been some biased responses, and because of which findings

may not be 100 % accurate.

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d) The information presented may not be accurate due to the lead-time between the

time of collection and time of presentation of data.

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1. Which all Front Loading Washing Machines do you keep at your Store?

Table showing presence of front loading washing machines in south delhi

Brands of washing Machines

No. of respondents Percentage

IFB 47 94%

LG 33 66%

SAMSUNG 44 88%

WHIRLPOOL 2I 42%

VIDEOCON 28 56%

SIEMENS 8 16%

GODREJ 1O 20%

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OTHERS 7 14%

Analysis:

From the above analysis it is clear that IFB is present in 94% stores in south Delhi with a strong presence, the second presence shown in south delhi is Samsung with 88% which is followed by LG 66%, Videocon56 %.

Graph showing the presence

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Inference

From the above graph it is infer red that IFB presence in south Delhi market is strongest in washing machine.

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2. Number of washing machines in display?

Brands of washing machines Avg. No. of machines in display

LG 2

IFB 3

SAMSUNG 3

WHIRLPOOL 2

VIDEOCON 2

SIEMENS 1

GODREJ 2

OTHERS 1

Analysis

From the above analysis it is shown that the average number of display in the stores IFB & SAMSUNG are in equal number 3 per stores, remaining LG,WHIRLPOOL,VIDEOCON,GODREJ are in 2 per stores, Siemens & others are one per store in display

Pie chart showing display of washing machines in stores

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Inference:

On an average each stores has above combination of display of different brands of washing machines which shows IFB & SAMSUNG are in equal no of display followed by other brands.

3.Number of top loading washing machines in display?

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Brands of washing machines Avg. no of display

SAMSUNG 3

LG 2

IFB 2

WHIRLPOOL 1

VIDEOCON 3

GODREJ 2

SIEMENS 0

OTHERS 2

Analysis:

From the above information it is observed that each store had a minimum 2 models of top loading washing machines has in display where as Samsung & Videocon are 3 models of top loadings washing machines.

Graph showing display of top loading washing machines

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Inference

In top loading washing machines Videocon & Samsung maintain a good display in the store which 23 % due there various range of top loading washing machines, but IFB ,LG & WHIRLPOOL are in equal in display in the top loading category,

4. Average number of Front Loading washing machines sold per month?

Brands of washing machines Avg. no. of sales

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SAMSUNG 11

LG 10

IFB 15

WHIRLPOOL 6

VIDEOCON 8

GODREJ 5

SIEMENS 2

OTHERS 4

Analysis:

On the basis of above information it is clear that IFB holds the leader position in the market with an average sales of 15 machines as compare to the other front loading washing machines in the market, Samsung & LG almost in an equal position in sales of front loading where as Videocon ahead whirlpool in this section.

Graph showing sales of front loading washing machines

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Inference:

According to the above graph IFB sales in front loading washing machines are stronger then Samsung & LG where as other brands are not in the competing position with the IFB.

6. Number of top loading washing machines sold per month per shop?

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Brands of washing machines Avg. no. of sales

SAMSUNG 12

LG 7

IFB 9

WHIRLPOOL 6

VIDEOCON 10

GODREJ 4

SIEMENS 2

OTHERS 4

Analysis:

In top loading washing machines segment Samsung has very good sales as compare to IFB, were as Videocon has very good sales in top loading

Washing which is almost same as Samsung but we can not deny the presence of whirlpool & LG in this segment.

Graph showing sales of top loading

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Inference:

Samsung has strong market share in sales as compare to other brands in this category of washing machines but we can not disagree the competition given by Videocon & IFB in top loading washing machines.

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SUMMARY OF FINDINGS

IFB washing machines have a strong presence in almost 94% of the

dealers have IFB washing machines in there stores.

In terms of presence in south Delhi Samsung comes 2nd in this with

availability in 86% dealers in this region

IFB had wide range of washing machines in both the section top

loading as well as front loading washing machines

In terms of display of washing machines in south Delhi market

Samsung & IFB are in equal position where as other brands such as

LG & Videocon are comes in 2 nd position in display

Samsung & Videocon are holding equal rank in sales of top loading

washing machines is much stronger then the IFB & LG having

second rank

IFB had a very strong market share in terms of sales of front loading

washing machines as compare to top loading

The major competitors of IFB washing machines are Samsung & LG

but whirlpool & Videocon are future threat for IFB market share

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IFB need to create public awareness in market & incurred heavily on

promotional activities

Need to increase number of dealers in south Delhi, search for new

dealers in this region

IFB try to come up with special customize shop only for IFB products

Give much concern to exhibition on different location in Delhi, where

IFB can reach maximum and potential customers

IFB have to maintain the existing offer like giving one year surf with

washing machines should be continue.

Need capture as much display as it can in the stores for batter sales

Dealers discounts and schemes should be maintain to satisfy dealers

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Questionnaire

Dear Sir/Madam, I am conducting a survey on the following topic study on “sales of competitive brand of fully automatic washing machine”.  This is a part of my academic pursuit and Your sincere cooperation will be highly obliged. Kindly fill in the below questionnaire to help me conduct the survey.

Name:

Address:…………………………………………………………………….

…………………………………………………………………………………..

Contact No:

Proprietor’s Name :

Mobile No.:

1. Which all Front Loading Washing Machines do you keep at your Store? Samsung IFB

Whirlpool LG

Videocon Godrej

Siemens Others

2. Average number of Front Loading washing machines sold per month?

Samsung Whirlpool

IFB Videocon

LG Godrej

Siemens Others

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3. Number of washing machines in display?

IFB LG

Whirlpool Videocon

Samsung Godrej

Siemens Others

4. Number of customers visit per day?

Answer:

5. Number of top loading washing machines in display?

IFB LG

Whirlpool Videocon

Samsung Godrej

Siemens Others

6. Number of top loading washing machines sold per month?

IFB LG Whirlpool Videocon

Samsung Godrej

Siemens Others

Thank you!!!

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www.Ifbglobal.com

www.Moneycontrol.com

Books Referred

1. Marketing management 13TH Edition

By Philip kotler, Kevin lane keller

2. Marketing Research, An applied orientation

By Naresh k. malhotra

Satyabhushan dash

3. Kotler, Armstrong, Principles of Marketing, Ninth Edition

Prinlee hall of India (P) Limited, New Delhi (2000)

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