Embed Size (px)
Citation preview
“A Market Survey on Air Conditioners with special reference to Voltas”
EXECUTIVE SUMMARY
In today’s world market there is a tough commotion among various
brands. All are playing hard to beat one another. Each wants to position itself
so as to retain their market and get foothold on other markets. It is
essentially a fight for share of market .This report has tried to bring about the
parameters about different incentives and perception about dealers
regarding different AC’s provided by major players in the electronic goods.
The working methodology has been discussed that is data collection
methods, sampling methods and surveys questionnaire methods. The
questionnaire designed and structured so as to cover a specified range of
dealers.
The results of various parameters have been included in this report and
shown. A complete structure of research design has been included.
A part from above discussed points a brief profile of company, it’s business
operations and strategies are also included.
1
INTRODUCTION In 1902 Dr.Willis Haviland Carrier invented and secured the patent for a weather control concept – air conditioning. Ever since, life hasn’t been the same. The air conditioner market is hotting up as more and more people appear to the convinced about the comfort of an air conditioner. The extremely hot summers have stirred the demand for AC’s and the industry is experiencing a significant change.
The air conditioning industry is around Rs 2700 crore industry. Most of the segments in this sector are characterized by intense competition, emergence of new companies, introduction of the state of the art model, price discounts, and exchange schemes.The major players in this industry are LG, Voltas, Carrier, Samsung, Onida, Kenstar, etc.
Voltas is among India's leading air-conditioning, refrigeration and engineering services companies. Set up in 1954, its core competencies lie in air conditioning and cooling appliances and services. Voltas is India's largest supplier of engineering products and services for the textile machinery sector and is a major manufacturer of forklift trucks. It provides solutions in turnkey pumping projects for water, effluent and sewage treatment, and water pollution control. The company has ISO 9001-2000 certification and has executed projects in the Middle East, Southeast Asia, Central Asia, Africa and Europe.
2
NEED FOR THE STUDY
Today there are large number of companies in the market which provide air conditioners to the various institutions and households. The competition today in this market is very stiff, so it becomes important for them to study the market. The purpose of our study is to know:
The various segments that use air conditioners. Which brand is in more demand? Types of air conditioners which are in demand. After sales services of different companies.
RESEARCH OBJECTIVE :
To Study and analyze the market of air conditioners in Ranchi and know which brand of air conditioner is more in demand, considering the various features it provides such as product quality, price, its availability, the technology it uses and the after sales services.
SCOPE OF THE PROJECT
This report mainly gives the detailed information about the working condition of the company where the company stands in the case of air-conditioners marketing suggestion given in the project helps to let the increase in sale of Voltas Air-conditioners. This project will also help to know that what all benefits can be given to dealer so that they will get attracted towards their products.
LIMITATIONS
3
The survey has been limited to small number of respondents due to
their scattered presence and lack of time.
It was not possible to cover the entire dealers of the Ranchi(Jharkhand)
in the given time period.
At times the dealers were reluctant to share information.
Due to the above limitation this project has some biasness.
Although the study is limited but we tried hard to work out accurate
data on the specific topic of the study.
4
COMPANY PROFILE
India's premier air conditioning and engineering services provider Voltas
Limited offers engineering solutions for a wide spectrum of industries in
areas such as heating, ventilation and air conditioning, refrigeration, electro-
mechanical projects, textile machinery, machine tools, mining and
construction equipment, materials handling, water management, building
management systems, indoor air quality and chemicals.
The Company's strengths lie principally in
The design and manufacture of industrial equipment
Management and execution of air conditioning and public works
projects
Sourcing, installation and servicing of technology-based systems
Representation of global technology leaders, serving diverse industrial
sectors and applications.
5
OPERATIONS
Voltas' operations have been organized into four independent business-
specific clusters. Each of these has its own facilities for market coverage and
service to customers.
1. Electro-Mechanical Projects & Services
Electrical, Mechanical, HVAC & Refrigeration Solutions
Electrical, Mechanical & HVAC Solutions (International)
Water Management & Treatment
2. Engineering products & Services
Textile Machinery
Mining & Construction Equipment
Machine Tools
Materials Handling Solutions
3. Unitary Cooling Products for Comfort & Commercial Use
Cooling Appliances
Commercial Refrigeration
Marketing
Voltas' sourcing and marketing operations cover air conditioners, textile machinery, machine tools, mining and construction equipment and industrial chemicals. In these sectors, the company demonstrates its specialized engineering expertise, as well as its extensive network for global sourcing.
Manufacturing
Voltas possesses total capability in the manufacture of room/split air conditioners, industrial air conditioning and refrigeration equipment, water coolers, commercial refrigerators, visicoolers, freezers and fork-lift trucks. All these products bear the stamp of state-of-the-art automated manufacturing plants resulting in consistently high quality and reduced costs.
6
Furthermore, the Company is partnered with Fedders International Inc. of USA for 'manufacture only' alliances producing low cost, high quality room air conditioners.
Projects
Over the years, Voltas has built up a substantial reputation and is actively engaged in turnkey projects in fields such as electro-mechanical works comprising electrical building services, HVAC, plumbing, public Health, fire fighting, ELV & specialized systems; electrical power projects; environmental and water pollution control; pumping stations and water supply; water & waste water treatment projects. The Company has ISO 9001 - 2000 standards certification in this business, and has successfully undertaken and executed project works in the Middle East, Far East and South East Asia, CIS countries and Africa.
Awards
United Nations' Grand Award for Excellence in Public Service Worldwide, 1993-94.
International Public Relations Associations' Golden Trophy for Excellence in Customer Service, 1994-95.
Mumbai Chamber of Commerce and Industry's Good Corporate Citizenship Award, 1995-96.
Top industry honors at UAE 2008-09.
Technological leadership
As a leader in technology, Voltas has made consistent efforts to bring customers the latest and best technologies across varied domains. The Company has entered into collaborations and technical tie-ups with world leaders so as to keep pace with global developments. Some of Voltas' collaborations are with:
Besseling, Netherland, for Controlled Atmosphere (CA) / Ultra - Low Oxygen (ULO) storage technology.
Bock - Germany, Refcomp - Italy and JE Hall - UK, for Semi - Hermetic compressor
Costan of Italy, for Refrigerated Cabinet Display Units for hyper market engineered systems.
Dunham-Bush Incorporated (USA), for screw chillers Hitachi Limited, Japan, for vapour absorption machines MIDEA, China, for Variable Refrigerent flow Systems. Ruks Engineering, Canada, for ozone engineered systems Standard Refrigeration Company (USA), for direct expansion chillers
7
Siemens Building Technologies (Asia-Pacific), for building management systems
Representations
The company is also an Indian representative of a number of leading manufacturers worldwide. To name a few:
BT, Sweden Bruckener, Germany Erbatech, Germany Fanuc Ltd. , Japan Hercules - Aqualon Division, USA Huntsman Tioxide, UK Hyundai, Kore Kobelco, Japan Kluber, Germany LeTourneau Inc., Australia LMW, India Memminger, Germany Mitsubishi Heavy Industries, Japan Terex - BL-Pegson, UK Terex - Powerscreen, UK Terex - O&K, Germany Terrot , Germany Tornos , Switzerland
Nationwide & global network
• Head office in Mumbai • Zonal HQ in Mumbai, Delhi, Chennai and Kolkata • Branch/area offices in Ahmedabad, Baroda, Bangalore, Calicut,
Coimbatore, Chandigarh, Delhi, Ghaziabad, Indore, Jaipur, Jamshedpur, Kochi, Kolhapur, Lucknow, Ludhiyana, Madurai, Panjim, Pune, Secunderabad, Surat, Tirupati, Tirupur, Vijaywada and Visakhapatnam
• Overseas offices in UAE (Abu Dhabi, Dubai), Bahrain, Qatar (Doha), Kingdom of Saudi Arabia (Jeddah) and Singapore
• Factories: Thane (Maharashtra), Dadra (UT)andPantnagar(Uttaranchal)
8
Human resources philosophy and policies at Voltas
The cornerstone of the Voltas Human Resources Management philosophy is
the conviction that the well-being of the company and of its people are
interdependent; and that the company's most valuable assets are its people.
Our commitment:
To employ the most competent, on the basis of merit
To ensure that every employee is treated with dignity and respect, and in
a fair, consistent and equitable manner
To create a stimulating, enabling and supportive work atmosphere
To aid and encourage employees in realizing their full potential
We recognize that the success of this philosophy depends in a large measure on the manner in which managers and their team members - at every level - carry out their duties and obligations to each other and to the company. Without mutual confidence and loyalty among employees, as well as respect for each other as human beings, our philosophy will not work.
Social Responsibility
Managers at all levels are committed to the following principles:
Have knowledge of, and accept total responsibility for, the success of the organization's human resources philosophy, policies and procedures, and review them with team members to ensure their total understanding.
Ensure consistent and fair application of all HR policies
Exercise leadership by demonstrating integrity, professional knowledge, courage of your convictions, and concern for the feelings of others.
9
Establish a relationship with team members that encourage a free bi-directional flow of information, permits open discussion of differing views, and allows decision making at the most appropriate levels.
In the same context, all employees are expected to maintain certain standards in relation to their work, and in representing themselves as the staff of Voltas. They will:
Communicate constructive ideas and opinions to managers and team members either pro-actively, or on request
Accept and support decisions made contrary to their expressed positions Apply the highest standards of ethics, integrity and honesty Comply with the company's policies and procedures
10
ORGANISATIONAL STRUCTURE
Voltas' operations have been organized into four independent business-specific clusters, each with its own facilities for market coverage and service to customers.
11
MISSION
Voltas is eyeing 20% market share in the Rs 4,500-crore air conditioning industry from 17% during fiscal 2009-10. To achieve this, the company is augmenting production from 4.5 lakh units per annum to 6.25 lakh units at its two plants in Silvasa and Pant Nagar, the total capacity of the AC industry is expected to go up sizeably to 3.6 million units in 2010-11 as against two million units in 2008-09. “they are looking at a sharp growth in their marketshare in the coming fiscal to 20% as against 17% now. Towards this,they have spruced up their marketing and distribution network across the country.” “With the introduction of 50 models during the fiscal, we expect to post a sharp growth during the next fiscal and accordingly we are increasing the volume to 6.25 lakh units a year from the current 4.5 lakh units,”. To achieve it, the company will increase the number of channel partners from 3,000 to 4,000 next fiscal and will set up 175 new franchisee showrooms.“the company expect contribution from split ACs to go up to 65% next fiscal as against 55% now, while the remaining will come from window ACs. The company has earmarked an ad budget of Rs 40 crore for 2010-11 fiscal as against Rs 30 crore in Rs 2009-10,” Bakshi said, adding “the AC market is growing at 30% per annum in India. Their endeavor is to lead the industry and make economical products available at most competitive rates.” increasing its production of other items such as water coolers to 30,000 a year, water dispensers to 60,000 units a year and commercial refrigerants to 50,000 units a year.
The premium air conditioner segment is estimated to be around 15 percent of the total annual market of two million units. “They are targeting around five percent of that market during the first year,” Including the premium range, Voltas has launched 50 new models, aiming to increase its market share to 20 percent next fiscal. “The market size in fiscal 2009-10 for the home and commercial segments is expected to be 2.6 million units and they hope to sell 525,000 units, up from the current year’s 200,000.The air conditioner market is broadly divided into home, commercial and industrial segments. The commercial segment includes premises fitted with off the shelf air conditioners and those needing custom-built air conditioning systems. `The group looks after off-the-shelf air conditioners and other products like water coolers and water dispensers. The higher price of the Voltas products compared to those of some multinationals, products are certified for energy efficiency. The total ownership cost will be less in the case of their products.
12
“In fact, Voltas air conditioners are competitively priced.”Voltas, which has a turnover of Rs.24.50 billion, also plans to beef up its distribution network to 4,000 outlets next year by adding 1,000.
VOLTAS IN AIR CONDITIONERS
Star Rated AC At the heart of every Voltas AC is a state of the art energy efficient compressor that uses electricity wisely. Add to it various power saving technologies and you have got an AC that ensures perfect cooling, While keeping the running cost minimum. No wonder, Voltas ACs score high on star rating as per the bureau of energy Efficiency (bee), an autonomous body under the ministry of power, govt. of India. So go ahead and bring home the AC that cares for your money as much as you do.
What is star rating?
It is an initiative undertaken by the bureau of energy Efficiency (bee), an autonomous body under the ministry of power, govt of India. BEE now issues a label after accessing the energy efficiency of power consuming durables. The label is based on a star system, wherein an ac’s performance is measured on a scale of one to five stars. The more the number of stars, the more you save on your electricity bills.
13
Voltas ACs and Star rating
Voltas is among the first AC brands in India to adopt the star rating initiative by BEE because of one simple reason – savings. Now you can enjoy comfortable cooling without worrying about huge electricity bills. In fact, with year on year savings on its running cost, you can recover the full cost of buying a Voltas star rated Ac in no time. Moreover, now you have a handy device to compare different ACs and choose the one that offers maximum savings. Clearly the star rating initiative is all set to change the way air conditioners are bought. Power Saving Features of Voltas Star Rated ACs
Highest Energy Efficient Rotary Compressor Enables minimum power consumption, higher cooling efficiency and quiet operation.
Multi-bend Heat ExchangerVoltas ACs adopt multi-bend heat exchangers that increase the heat exchange surface area and thus improve efficiency
Trapeziform Inner-grooved Copper TubesThis design allows adequate refrigerant flow, improves the heat exchange efficiency and lowers power consumption.
High Efficiency DesignTechnologically advanced overall design allows the machine to perform at its best.
VERTIS- The one of its kind revolutionary VERTIS technology creates the perfect indoor air quality for you by managing the five critical constituents that define air quality.
1. AIR PURITY2. AIR FLOW3. AIR HUMIDITY4. AIR ODOUR
14
TYPES OF AC
INVERTER AC- Works faster saves energy and ensure that the right temperature is felt in every corner of the room. That is VOLTAS Inverter technology for you, delivering precise cooling or heating power as per the requirement by varying the speed of the compressor.
SPLIT AC- The classic Split AC ranges from LG featuring the revolutionary VERTIS technology that delivers pure air with uniform airflow. The horizontal and vertical swing action ensures better air flow while giving uniform cooling.
MULTI SPLITSAC – With a single outdoor unit now cool two rooms whenever you wish. The Multi Split AC not only saves space, but also saves you cost of two separate units and installation. It saves upto10% on purchase, installation and service of an VERTIS Multi Split AC.The single outdoor unit ensures that you save up to 20% in space.
FLOOR STANDING – AC’s that not only offer the purest of air, but also the freedom of mobility ideal for homes, commercial establishment of a small scale and offices, they not only ensures uniform cooling across the room, but also helps you save on electricity costs. Air throw up to a distance of 21 ft giving cooling in every corner of the room.
WINDOW AC – Featuring the revolutionary Aero DNA technology it delivers pure and pristine air indoors by managing the five critical constituents that determine air quality. It also provides dynamic colours and designs to complement your interiors.
With the beginning of the summer season, Voltas Limited, a Tata group company, has launched two new premium category air conditioner models. “The new models include the country’s first corner air conditioner, the triangle shaped Vertis Pristine that would fit on the wall corner,”.
The other premium model is Vertis Panache fitted with DC inverter technology.
RESEARCH METHODOLOGY
15
The data related information was collected through questionnaire for
dealers. The questionnaire was structured objective types questions
regarding high media awareness, margin etc.
For the fulfillment of this project, we have made a questionnaire and
surveyed 14 dealers of Ranchi
Questionnaire is considered as one sample
RESEARCH DESIGN
Exploratory research
SAMPLE SIZE:
The sample size of the survey chosen was 14 dealers from available dealers.
SURVEY AREA:
Main road, Lalpur, Upper Bazaar, Radium road, Tharpakna at Ranchi.
SAMPLING AND FIELD WORK
Sampling and field work plan regarding this project are as follows:
Sorting out the dealer from the list of dealers.
Preparation of questionnaire.
Visits to the sorted out dealers
Taking out the query from the dealers according to the questionnaire.
Analyze the given data.
Interpretation of data.
DATA COLLECTION METHODS
16
In the Report only primary data were collected through questionnaire and
personal interview. For making the survey more relevant some amount of
secondary data has been used. Due to project being of local consideration
use of primary data has taken in most places
PRIMARY DATA
Questionnaires
Personal interview
SECONDARY DATA
Journals, Magazines and Internet.
METHODOLOGY FOR PROCESSING THE DATA
More than one method was used for procuring and analyzing the Primary
data. It was difficult to analyze the data with one method so various methods
have been used for analysis.
17
Analysis and Interpretation of Data
18
RESPONDENTS PROFILE CAN BE STUDIED WITH THE FOLLOWING GRAPHS
Number of AC sold in Ranchi in the last 3 months
BRAND
LG VOLTAS
VIDEOCON
KENSTAR
ONIDA SAMSUNG CARRIER
GODREJ
NO. 754
658 200 23 100 54 30 265
We have observed that out of 14 dealers LG in the last 3 months registered
36% sale of AC ,Voltas 32%, Samsung 2.5%, Godrej 13% , Videocon 10%,
Onida 5%, Kenstar 1%, Carrier 1%.
Who are the customers of air conditioners ?
19
Types of AC higher demandable
Types of AC Number of Dealers Percentage of Dealers (%)
Window AC
Split ACTower
581
35.7%57.1%7.2%
TOTALS 14 100
Thus, we have observed that out of 14 dealers Split AC leading the market
with57%.follwed by window ac 35%.
TYPES OF AC HIGHER DEMANDABLE
The brands having high demand in Market
20
Brand Names Number of Dealers Percentage of Dealer (%)
LGVOLTASONIDAOTHERS
5324
35.7%21.4%14.2%28.57%
TOTAL 14 100 Thus, I have observed that out of 14 dealers, the most
preferred brand is LG and then Samsung and Onida are
preferred.
The brand of AC which shows good demand in market
Rank of the AC on the basis of the latest technology
Brand Names Number of DealersPercentage of Dealers (%)
VOLTAS
LGSAMSUNGONIDAOTHERS
53312
35.7%21.4%21.4%7.08%14.2%
TOTAL14 100
21
Rank of AC on the Basis of latest technology
The brand providing highest margin to the dealers.
Brand Names Number of dealers Percentage of dealers (%)
LG
SamsungvoltasOthers
03040304
21%29%21%29%
TOTALS 14 100
Thus, we have observed that out of 14 dealers, there is very
thin line of different between all the companies as far as margin
is concerned. Samsung is no1
Brands Providing Highest Margins
22
After sales services of the brands
Brand Names Number of dealers Percentage of dealers (%)
Voltas
LgSamsungOnidaOthers
0406020101
28.57 %42.33%14.28%7.14%7.14%
TOTALS 14 100
We have observed out of 14 dealers the best after sale service
is LG than after Samsung and Onida is equal and in others
carrier is doing well.
Brands Providing Best after Sale Services
FINDINGS:
23
The main findings are: After covering 14 dealers of Ranchi , we found out
There are three main competitors of Voltas namely LG, onida and
Samsung in Ranchi.
Research and development activities should be taken up more
seriously to cope up with the competetion.
Voltas should make smaller i`ndoor AC (Split) and price should be
same as competitor.
Voltas should promote the AC as it does with its other products.
Voltas should decrease the noise level in window AC.
RECOMMENDATIONS
Some of the dealers are not satisfied with marketing support. Proper
attention should be given to the grievances of the dealer
Improve the after sales service.
Seasonal support is required to improve the sale of AC.
Though Voltas is doing well .Regular promotional activity are needed in
order to further increase its market share & dominance.
The quality of Voltas AC is good But further increase in the quality are
needed in order to be firmly placed.
Product availability should be improved and timely attention should also
be given to distribution Network of the company.
Technical knowledge of the dealer should be increased through dealer
visit in order to increase the sale of AC.
24
CONCLUSION
Today the Consumer goods markets have large potential but almost
all the players are operating with either less margin or in loss. Godrej is still in
loss in White Goods Section so is Whirlpool. Its very important that companies
operating in this area should clearly focus on increasing operational efficiency,
support their dealers and insist on brand building with customer satisfaction.
Cut throat competition has led to reduced margins for both company and
channel partner. So firm should focus on long term association with channel
partners. Voltas is market challenger in AC. It’s main competitor being LG,
samsung, onida. After analyzing the different data’s we can safely conclude
that voltas has a good market demand after LG. Similarly voltas and LG.
provide similar margin to dealers, highest being that of samsung and some
other brands. According to dealers voltas always makes a breakthrough in
technology followed by LG. but best after sales service is provided by LG. voltas
will have more number of satisfied dealers if it works on in improving it’s after
sales support service.
25
Questionnaire: 1. NAME: ADDRESS: Ph:
2. Which company’s air conditioner do you sell?1. Voltas2. Samsung3. Onida4. LG
3. Who are the customers for air conditioner? 1. Institutional 2. House Hold 3. Others
4. Which company’s advertisements and promotional activities Are good? 1. Voltas 2. Samsung 3. LG 4. Others 5.Which brand is providing best customers offer and offering more attractive scheme?
1. Voltas2. Samsung3. LG4. Others
6. Which Brand of AC has good demand in market? 1. Voltas 2. Samsung 3. LG 4. Others
7. Which Brand is providing highest margin ?
1. Voltas 2. Samsung 3. LG 4. Others
26
8. Which Brand of AC has Latest technology?
1. Voltas 2. Samsung 3. LG 4. Others
9. Which type of AC higher demandable?
1. Voltas 2. Samsung 3. LG 4. Others
10. Which Brand provides best marketing support?
1. Voltas 2. Samsung 3. LG 4. Others
11. Which Brand of AC has best service support after sale?
1. Voltas 2. Samsung 3. LG 4. Others
27
List of Companies
LG SAMSUNG ONIDA VIDEOCON KENSTAR GODREJ CARRIER
Bibliography:
Kotler Philip, Principles of MarketingBerry G.C. , Marketing ResearchC R Kothari, Research Methodology
www.voltas.com
www.voltasac.com
28
