EXECUTIVE SUMMARY

This project has been taken with a view to make an in depth analysis of latest &

unique marketing strategies employed by Blue Star Ltd. with special reference to Air

conditioners & thus uncover the reasons that have propelled the company to retain its

position as leading company in AC Industry despite of stiff competition from other

competitors.

The present study creates awareness about the product quality & unique features put

forth by Blue Star Ltd.

It also provides knowledge to the readers about customer preferences & competitive

analysis between various competitive firms. The present is an effort to formulate

strategy to boost up the market share for AC’s for Blue Star Ltd.

Few years ago liberalization was not there in the Indian market. But slowly and

gradually scene changes and liberalization paves its way in the Indian market. Advent

of liberalization policy has changed the whole scenario. Therefore, today's winning

companies are those who succeed best in satisfying target customers. In other words

winning companies are those who provide value for money. They are market focused

and customer driven, rather than solely product focused or customer driven. The most

wrenching change that the business scenario is experiencing involves acquiring a

strategy to cope with liberalization.

Rising temperature and unexpected climate has lead to the invention of Air-

conditioner system. Thus this leads to birth of new industry known as AC Industry.

So we decided to conduct a Market research on Blue Star Ltd with special emphasis

on Air Conditioners. And have selected exploratory design to conduct the market

research because it is the most sound research design that is likely to achieve my

research objectives.

My goal is to explore rather than conclude on the level of awareness that people have

about Blue Star Air Conditioners. And was interested in knowing the expectations

and apprehensions people have from the company. The Exploratory studies are used

to seek small-scale information rather than definite results. And have also analyzed

that this research design is relatively inexpensive as compared to other research

designs.

The main focus of this report is to study the customer satisfaction level with the

product performance in Delhi.

CHAPTER -1

INTRODUCTION

CHAPTER-1

ABOUT THE INDUSTRY

1.1 Historical DevelopmentsThe Electronics Industry in India took off around 1965 with an orientation towards space

and defence technologies. This was rigidly controlled and initiated by the government.

This was followed by developments in consumer electronics mainly with transistor

radios, Black & White TV, Calculators and other audio products. Colour Televisions

soon followed. In 1982-a significant year in the history of television in India - the

government allowed thousands of colour TV sets to be imported into the country to

coincide with the broadcast of Asian Games in New Delhi. 1985 saw the advent of

Computers and Telephone exchanges, which were succeeded by Digital Exchanges in

1988. The period between 1984 and 1990 was the golden period for electronics during

which the industry witnessed continuous and rapid growth. From 1991 onwards, there

was first an economic crises triggered by the Gulf War which was followed by political

and economic uncertainties within the country. Pressure on the electronics industry

remained though growth and developments have continued with digitalization in all

sectors, and more recently the trend towards convergence of technologies. After the

software boom in mid 1990s India's focus shifted to software. While the hardware sector

was treated with indifference by successive governments. Moreover the steep fall in

custom tariffs made the hardware sector suddenly vulnerable to international competition.

In 1997 the ITA agreement was signed at the WTO where India committed itself to total

elimination of all customs duties on IT hardware by 2005. In the subsequent years, a

number of companies turned sick and had to be closed down. At the same time

companies like Moser Baer, Samtel Colour, Celetronix etc. have made a mark globally.

1.2 Current ScenarioIn recent years the electronic industry is growing at a brisk pace. It is currently worth

US$ 32 Billion and according to industry estimates it has the potential to reach US$ 150

billion by 2010. The largest segment is the consumer electronics segment. While is

largest export segment is of components. The electronic industry in India constitutes just

0.7 per cent of the global electronic industry. Hence it is miniscule by international

comparison

India is also an exporter of a vast range of electronic components and products for the

following segments

• Display technologies

• Entertainment electronics

• Optical Storage devices

• Passive components

• Electromechanical components

• Telecom equipment

• Transmission & Signaling equipment

• Semiconductor designing

• Electronic Manufacturing Services (EMS)

This growth has attracted global players to India and leaders like Solectron, Flextronics,

Jabil, Nokia, Elcoteq and many more have made large investments to access the Indian

market. In consumer electronics Korean companies such as LG and Samsung have made

commitments by establishing large manufacturing facilities and now enjoy a significant

share in the growing market for products such as Televisions, CD/DVD Players, Audio

equipment and other entertainment products. The growth in telecom products demand has

been breathtaking and India is adding 2 million mobile phone users every month! With

telecom penetration of around 10 per cent, this growth is expected to continue at least

over the next decade. Penetration levels in other high growth products are equally high

and growth in demand for Computer/ IT products, auto electronics, medical, industrial, as

well as consumer electronics is equally brisk. Combined with low penetration levels and

the Indian economy growing at an impressive 7 per cent per annum, the projection of a

US$150 Billion+ market is quite realistic and offers an excellent opportunity to

electronics players worldwide.

1.3 Electronic Manufacturing ServicesIndia is well-known for its software prowess. But on the hardware front, the progress is

rather slow. However, the country has been making gains in this sector also. Already, 50

Electronics Manufacturing Services (EMS)/Original Design Manufacturers (ODMs)

providers are operating in India, ranging from global players including Flextronics and

Solectron to indigenous firms including Deltron, TVS Electronics and Sahasra. Further

moves by international players are expected to add production in India in the coming

years.

India’s contract-manufacturing business is expected to nearly triple in revenue over the

next five years, a development that will present both opportunities and potential pitfalls

for the worldwide electronics supply chain. Revenue generated by Electronics

Manufacturing Services (EMS) providers and Original Design Manufacturers (ODMs) in

India will expand to $2.03 billion in 2009, rising at a CAGR of 21 per cent from $774

million in 2004. Indian EMS/ODM revenue grew by 20.8 per cent to reach $935 million

in 2005. Obvious allure of locating electronics production in India is the nation’s low

labor costs. Labor costs for conducting electronics manufacturing in India are between 30

to 40 per cent less than in the United States or in Western Europe. Other equally

important benefits from operating in India include a fast-growing domestic market, an

excellent education system, the nation’s technology parks and the recent improvements in

the country’s transit and utility infrastructure. However, the Indian contract-

manufacturing industry is not expected to pose a significant threat to China’s position as

the epicenter of electronics manufacturing in the short term. India’s contract

manufacturing activities primarily serve the nation’s indigenous demand.

2. MAJOR PLAYERS2.1 Solectron

Solectron Centum Electronics Limited is the leading Indian company offering state of art

solutions for Frequency Control Products (FCP), Electronic Manufacturing Service

(EMS) and Hybrid Micro Circuits (HMC). Solectron has a manufacturing unit and design

centre in Bangalore and a post manufacturing centre in Mumbai. The EMS operation

focuses primarily on the domestic market. For the year 2005 the revenue was US$ 10

million with a net profit of US$ 2 million.

2.2 Flextronics

Flextronics entered India in 2001 when it purchased a Motorola facility. Flextronics

maintains a Bangalore facility with 18,000 sq ft and 297 employees. The products

manufactured are engine management Ccrd, TV tuners, set top box, energy meters,

cellular phone, networking cards and WLL wall sets.

2.3 Jabil Circuits

Jabil Circuit operates a 51,000 sq. ft. plant in Pimpri, which the provider took over from

Philips in 2002. The Pimpri plant manufactures TV analog monitor cards and certain

audio products for Philips. All production today is for the Indian market. In December

2004, Jabil Circuit opened a 175,000-square-foot facility in Ranjangaon that offers

printed circuit board assembly, enclosure integration, and distribution and repair services,

along with in-region design service support. The site serves the consumer,

instrumentation, networking, peripherals and telecommunications industries.

2.4 Samtel Group

The Samtel group is the largest Indian integrated manufacturer of a wide range of display

devices like Colour and B&W TV picture tubes, tubes for avionics, medical and

industrial applications, CRT glass, electron guns, heaters and cathodes, deflection yokes

and engineering services. Samtel has registered many patents for developments in video

display technology. It is an ISO 9000, UL and ISO 14000 certified company. Samtel has

acquired a facility in Germany to manufacture high tech, high resolution CRTs for

demanding applications such as aircraft avionics, medical monitors and a variety of

industrial applications through a continuous focus on R&D. Another major player and

exporter in this segment is Hotline Group which manufactures B/W and Colour Picture

Tubes.

2.5 Moser Baer India Ltd.

In the Optical Storage Device segment, Moser Baer India Ltd., is today the world's third

largest optical CD maker in an industry dominated by Japan and Taiwan. MBIL supplies

to a number of branded players like Sony, Verbatim, TDK, Maxell, Imation, Samsung

etc, and has collaborative R&D programs as well as reciprocal training programs with

these world class companies.

COMPANY PROFILE

Blue Star Limited (originally known as Blue Star Engineering (Bombay) Pvt Ltd) was

founded by Mohan T. Advani in 1943. The Company was initially engaged in

reconditioning of refrigerators and air-conditioners. Today, Blue Star is India's largest

central air-conditioning company with an annual turnover of Rs. 600 crores, a network of

offices in 29 cities and three modern manufacturing facilities. Blue Star became a public

limited company in 1969 with its corporate headquarters at Kasturi Buildings in Mumbai.

Blue Star is India's largest and most preferred air-conditioning and commercial

refrigeration company. With six decades of experience in providing expert cooling

solutions, Blue Star has been associated with the most prestigious corporate and

commercial installations in the country.

BLUESTAR BUSINESS

Blue Star manufactures and markets a wide range of air-conditioning and refrigeration

systems and products. These include large central air-conditioning plants, packaged air-

conditioning systems, split and window air conditioners; commercial refrigeration

equipment such as water coolers, bottled water dispensers, ice-cube machines, deep

freezers and walk-in cold rooms. Blue Star's other businesses include marketing and

maintenance of hi-tech electronic and industrial products such as Testing Machines, Data

Communication products, Medical and Analytical Instruments and Special Control

Valves. The Company has business alliances with world-renowned technology leaders

such as York International, USA; Hitachi, Japan; Kolpak, USA; Vestfrost, Denmark;

Electrolux, Sweden and many others, so as to offer superior products to the customers.

LARGEST SINGLE SOURCE OF AIRCONDITIONING EQUIPMENT

Blue Star is the largest single source for air-conditioning equipment in India. It

offers the widest range of air-conditioning products - window and split air

conditioners, air-cooled / water-cooled packaged air conditioners, centrifugal,

absorption, reciprocating scroll, rotary screw chillers, variable air volume

systems, fan coil units, air handling units, etc. Never seen, never heard, yet

quietly at work in homes, hotels, offices, factories, showrooms, airports,

laboratories, satellite launch stations, hospitals all over India and abroad. That's

Blue Star air-conditioning.

INTERNATIONAL PARTNERSHIPS

In its quest to offer the most advanced air-conditioning technologies, Blue Star has

entered into several technical collaborations with York International, USA, Rheem

Manufacturing Co., USA and Climatrol, Italy for the manufacture of air-conditioning

equipment - centrifugal chillers, reciprocating chillers, screw chillers, air handling units.

And collaboration with York Tempmaster, for variable air volume systems.

ECO FRIENDLY

Blue Star has made significant progress towards minimizing and even eliminating the

environmental hazards resulting from CFCs in certain refrigerants used for cooling. As a

matter of fact, Blue Star is one of the few companies selected in India for funding by

"The Multilateral Fund for the implementation of the “MONTREAL PROTOCOL”. Blue

Star has already introduced 'ozone friendly' centrifugal chillers using HCFC-123, the safe

refrigerant replacing CFC-11. Blue Star also markets absorption chillers, which use water

as refrigerant

CROSSING INDIA'S BOUNDARIES

Blue Star's air-conditioning expertise extends beyond Indian horizons, from Indonesia in

the East to Libya in the West. Blue Star has competed with other European companies on

International terrain and satisfied demanding foreign consultants. Blue Star has set up a

joint venture in Malaysia with Arab Malaysian Development Berhad (AMDB).

CORPORATE VISION

The company has been working on its strong & broad vision based guidelines, which aim

at delivering world-class customer experience. For this it has been constantly working for

the customers & modifying its strategies in their favor.

PRODUCT RANGE:

Blue Star manufactures a range of Ducted Splits and Packaged ACs (both air-cooled and

water-cooled). Through its agreement with Rheem, Blue Star has access to world class

manufacturing processes. The sophisticated facilities installed include: a range of

imported fabrication equipment; an advanced powder coating paint line; conveyor belt

system and an on-line computerized manufacturing resources planning system, which

streamlines and integrates the entire process. All of which ensure that our customers get

the best air-conditioning technology.

PACKAGED AC:

.

Air-cooled or Water-cooled, these versatile units in 5, 7.5, 10 & 15 ton capacities can

individually cool 75 to 250 meters of floor space. In multiples they can handle entire

floors and buildings. These come with imported compressors. Optionally they offer

packaged air conditioners fitted with scroll compressors, which are significantly more

reliable because of only three moving parts within the compressor, compared to 15

moving parts in reciprocating compressors. The scroll compressors are also eight times

quieter. We have re-engineered the complete system to ensure a saving of up to 25% on

energy cost to the customer. The range is 5.5, 8.3, 11 and 16.5 TR. This product has

already begun to revolutionize this market, and has captured a significant market share in

the few months after launch.

DUCTED SPLIT AC

Ducted Split Air conditioners from India's No. 1 central air-conditioning company bring

to offices, banks, software development centers, hospitals, hotels, restaurants and

showrooms a new concept of comfort cooling The cooling unit is safely tucked away and

all that is visible are the sleek lines of the ducting that blend so beautifully into your

decor. Sleek, slim and just 425 mm in height, the unit fits into false ceilings and gives an

ambience with low noise levels, as all internal surfaces are acoustically insulated. Also

available with imported energy efficient scroll compressors for higher reliability, low

noise and power saving. The range is 5.5 and 8.3 TR.

SPLIT AC’S

Blue Star, India's leading central air-conditioning company, presents a state-of-the-art

range of Split Air conditioners. Deluxe Hi - Wall Split The problem with normal air

conditioners is that while they start off cooling you well, pretty soon they begin freezing

you. A problem that we have cleverly taken care of in our air conditioners. It has an

electronic thermostat that's accurate and reliable, fuzzy logic control that adjusts

performance automatically and an energy-efficient compressor amongst others.

Manufactured at Blue Star's state-of-the-art factory; it includes reliable components,

excellent after-sales service and friendly looks. It's just what you'd expect from the

leaders in air-conditioning.

CORDED HI - WALL SPLIT AIRCONDITIONERS

The Corded Hi-Wall Split Air conditioner, comes to you from the acknowledged experts

in air-conditioning technology, who are also the most preferred - Blue Star. On offer is a

wide range of capacities. The lowest being 1 ton, and the highest, 4 tons. Each and every

air conditioner is loaded with a host of thoughtful and exciting features. After all, nothing

less is expected from the leaders in air-conditioning.

CONCEALED SPLIT AC

Concealed Split is a big bonus when wall and floor space is not available. It’s thesleekest

indoor unit in the market and stands less than 11" tall (conveniently allowing higher head

room under a false ceiling). So, if you're looking for the compliment to your dream

office, insist on the Concealed Split. Like everything with pedigree, it can only be felt

and not seen.

Deluxe Hi - Wall Split Air conditioners

The Deluxe Hi-Wall Split Air conditioner comes to you from the acknowledged experts

in air-conditioning technology, who are also the most preferred - Blue Star. On offer is a

wide range of capacities. The lowest being 1 ton, and the highest, 4 tons. Each and every

air conditioner is loaded with a host of thoughtful and exciting features. After all, nothing

less is expected from the leaders in air-conditioning.

CASSETTE AIRCONDITIONING SYSTEMS

Blue Star, in its continuing effort to provide innovative cooling solutions for your

business, brings you the Cassette Air-conditioning Systems. They not only look

contemporary, but are also extremely quiet and installation friendly. They blend

beautifully with stylish interiors by virtue of their excellent looks, fit & finish.

Their compactness and ability without necessary ducting makes them an ideal choice

where ducting is not practical (due to structural constraints such as low cross beams).

WINDOW ACS - TURBO ROTARY DELUXE MODEL

Blue Star Turbo Rotary ACs come in innovative capacities. Like 1.25T. Which means

that you don't have to compromise and settle for an AC of higher tonnage, and

consequently, higher power consumption. Both these models are fitted with Mitsubishi

compressors for virtually silent operation and come with anti-bacterial filters, corrosion

resistant blue fins and full function remote (optional). All in all the best AC deal you're

likely to get.

WINDOW ACS - TURBO ROTARY SUPER DELUXE REMOTE MODEL

Blue Star Turbo Rotary ACs come in innovative capacities. Like 1.25T. Which means

that you don't have to compromise and settle for an AC of higher tonnage, and

consequently, higher power consumption. Both these models are fitted with Mitsubishi

compressors for virtually silent operation and come with anti-bacterial filters, corrosion

resistant blue fins and full function remote (optional). All in all the best AC deal you're

likely to get.

WINDOW ACS - DELUXE MODEL

Blue Star cooling standards are so high that even the experts recommend us. Little

surprise then when we were chosen to air-condition India's most prestigious

establishments. Like Parliament House, Bombay Stock Exchange and the Reserve Bank

of India. As well as brand new exciting features. For example, an electronic thermostat

that's accurate and reliable, fuzzy logic control that adjusts performance automatically

and a low energy-consuming compressor, besides others. Made at Blue Star's state-of-

the-art factory, your window ACs includes dependable components, excellent after-sales

service and stunning looks.

WINDOW ACS - SUPER DELUXE REMOTE MODEL

Blue Star cooling standards are so high that even the experts recommend us. Little

surprise then when we were chosen to air-condition India's most prestigious

establishments. Like Parliament House, Bombay Stock Exchange and the Reserve Bank

of India. You'll find this very expertise in cooling, in our new window air conditioners.

As well as brand new exciting features. For example, an electronic thermostat that's

accurate and reliable, fuzzy logic control that adjusts performance automatically and a

low energy consuming compressor, besides others. Made at Blue Star's state-of-the-art

factory, your window ACs includes dependable components, excellent after-sales service

and stunning looks.

CHAPTER 2

ABOUT THE TOPIC

LITERATURE REVIEW

ABOUT THE TOPIC

STRATEGIES FOR GROWTH

Blue Star has identified mega air-conditioning projects within the country and abroad as

an opportunity area for growth. At the other end of the spectrum, the Company has

aggressive plans to enhance its share in the growing market for window and split air

conditioners, with a specific focus on corporate and commercial customers. Blue Star has

ambitious plans to expand its commercial refrigeration business as well. Encouraged by

the recent break-through orders from Sri Lanka, Yemen, Maldives and Armenia for water

coolers, room airconditioners and packaged airconditioners, the Company wants to

strengthen its exports operations as well.

DEFINITION OF AN AC: Air conditioning is simultaneous control of air for:

• Temperature control

• Air freshness

• Filtration, Dehumidification within a confined space.

In other words, AC is defined as a process, which heats, cools, cleans and circulates air

and its moisture content.

COMPONENTS OF AIR CONDITIONER : The Air-conditioner consists of the

following components

1. A Cooling Coil (evaporator coil)

2. A Condenser Coil

3. A Compressor and

4. A Fan Motor

WORKING OF AIR CONDITIONER:

A Window air conditioner cools room air by means of refrigerant. The refrigerant absorbs

heat from air and becomes vapour as it flows through the evaporator. A compressor

pumps the vapour to condenser, which discharges the heat and turns the vapors back to

liquid. Three important working cycles of an AC are:

• ROOM SIDE CLOSE CYCLE:

AC sucks the hot air from the room. The air is cooled, dehumidified and redelivered

back to the room, during the process the room gradually becomes cold.

• OUTDOOR OPEN CYCLE:

The fan on the condenser side sucks the air from outside atmosphere and delivers it

back to the atmosphere after taking the heat from the condenser coil.

• REFERGERANT CYCLE

The closed cycle in which compressor compresses the refrigerant gas and delivers it

to the condenser coil and then to the evaporator coil and back.

.TYPES OF COMPRESSORS:

• Reciprocating compressors - These compressors typically have one or two

pistons mounted on the crank shaft extension of the motor. The motor moves the

piston through the crank shaft and each time the piston moves down, refrigerant gas is

sucked into the cylinder. When the piston moves up the gas is pushed against the

discharge valve which opens to let the compressed gas out. These compressors are

available from a small fraction of a ton upto 10 ton capacities.

• Scroll compressors - These compressors are a recent innovation and are extremely

energy efficient. They have only three moving parts compared to fifteen in

reciprocating compressors and are eight times less noisy. Scroll compressors use two

interlocked spiral-shaped members, which enclose the refrigerant gas in pockets

between them. One of the spiral shaped members is fixed while the other orbits

causing the refrigerant to be squeezed into ever decreasing pockets until it reaches the

centre of the spiral from where it is discharged. They are highly reliable and save up

to 15% on power bills. They are gaining fast acceptance over other compressors.

• Rotary compressors - This type of compressor has a rotor eccentric to the cylinder

housing and blades, which slide to form a continuous seal for the refrigerant gas. At

the beginning of the cycle a volume of refrigerant gas enters the chamber and as the

cycle progress the nature of eccentricity squeezes the gas thereby compressing it.

Rotary compressors are considered unsuitable for areas with high ambient

temperatures and are limited to use in window and mini split air conditioners. These

compressors are not repairable and have to be replaced in case of a breakdown.

MARKETING STRATEGIES:

PRODUCT AWARENESS:

Advertising is the main tool in the hands of the company so as to make the consumers

aware regarding the different products available in the market. Above all Advertising is a

good business. Advertising is the marketing force, which helps in mass selling and

distribution. The company gives their advertisements through Road side hoardings,

banners & signboards Newspapers like ‘Times of India’, Hindustan Times’, Magazines

like ‘India Today’, ‘Business Outlook’, etc. It is about to begin with TV Advertisements

Consumers come across advertisements for their brands everywhere - television, print,

posters, Internet and through sponsorships and goodwill campaigns. With the changing

face and speed of communication today, the company is focused on using media specific

to audiences.

STRONG DEALER NETWORK

The Company has got a strong dealer network all over India and the products are available in each town and area.

CREDIT FACILITES AND DISCOUNT

Dealers, retailers, sub-dealers are also vital to be due to be given due importance.

It is also necessary to understand the dealers, retailers, and sub-dealers because

they are one of the important people who can push the sales of the company. It

was found that dealers mainly want that the company should give them credit

facilities and discounts. BLUE STAR is the overall winner in its category. And

according to them the dealers are also the controller of the sales to some extent.

One of the important information is that most of the dealers ask the customers to

wait and assure him the delivery if the particular brand is not available. For Example, BLUE STAR comes out with new schemes for dealers every month for

special promotions. Special margins are made available to dealers from time to

time. Overall the company operates as many as half-a-dozen schemes at any

given time. Moreover the company ensures that dealer’s accounts are reconciled

every quarter.

CUSTOMER CARE:

It was found that the company more or less analyses what customers are looking for and then incorporate those features in their products. The company provides quick & efficient after sales services. The service mission of BLUE STAR is to become the most customer-oriented company in the country, by building a proactive service organization that continuously strives to create customer satisfaction, by internalizing the best practices of customer relationships management.WONDERFUL INNOVATIONS IN BLUE STAR PRODUCTS :

Blue Star launches stylish split air conditioners

Air-conditioning and Commercial Refrigeration major, Blue Star, has launched a new

range of hi-wall split air conditioners across the country. The new range comes in two

versions - one with an electronic controlled cordless remote and the other with an

electronic controlled corded remote. Available in capacities ranging from 1 ton to 4 tons,

these aesthetically appealing air conditioners come with a host of features like fuzzy

logic, sleep mode, programmable timer, oscillating louvers, auto restart and non-volatile

memory. The outdoor unit, which houses the all important heart of the air conditioner, the

compressor, is capable of withstanding a 1000-hour salt spray test, making it an ideal

choice for coastal areas. These air conditioners are also attractively priced, starting from

Rs 26,720 onwards.

Blue Star launches aesthetically appealing Cassette ACs

Central air-conditioning and Commercial Refrigeration major, Blue Star, has launched a

new range of contemporary and aesthetically appealing Cassette Air-conditioning

Systems. These systems blend beautifully with stylish interiors. Apart from its looks,

these systems are also extremely silent. Cassette air-conditioning systems is the ideal

choice where ducting is not practical, due to structural constraints such as low cross

beams and low ceilings. The Blue Star Cassette ACs distribute cool air in four directions

without ducting and come with a host of powerful features apart from remote control for

ease of operation. They are also installation friendly. They incorporate a scroll

compressor, which ensures that the system is energy efficient and maintenance free. The

systems come with newly designed aesthetically superior low noise outdoor units.

Blue Star launches new Turbo Rotary Remote Air conditioners

Blue Star has launched a new range of sleek, stylish and contemporary turbo rotary room

air conditioners. These air conditioners, which are available in unique capacities of 1.25

and 1.75 Tons, incorporate a Mitsubishi Rotary compressor, anti bacterial filters and

corrosion resistant condensers to ensure silent operation and substantial savings in

electricity bills. Blue Star, who are currently leaders in the Air-conditioning segment,

have nearly six decades of experience in providing expert cooling solutions not only in

India but also overseas. Its commitment to add value to customers in terms of design,

installation and after sales service has resulted in it being associated with the most

prestigious projects and companies.

Recent Developments

Blue Star at the Threshold of VRF technology. The technology (called variable

refrigerant flow or VRF), invented by Daikin of Japan, is now being developed in India

by large and established players including LG, Voltas and Blue Star. Blue Star, which

currently imports and sells Sanyo VRF units in India, plans to manufacture its own VRF

ACs this year, and will position its products competitively against imported ones. Blue

Star, leaders in air conditioning, have air conditioned many prestigious establishments

such as Parliament House, Bombay Stock Exchange and Reserve Bank of India. It is this

very same expertise that goes into their new window air conditioners. Blue Star sets

aside Rs 8 crore campaign- The Rs 601-crore Blue Star Ltd— central airconditioning and

commercial refrigeration major—has earmarked a total investment of Rs 8 crore on a

new campaign for this summer, Blue Star Ltd vice-president (marketing) N Sivasankaran

told FE. He added: “This is part of our new brand-building exercise for promoting our

entire range of Blue Star ACs. The main objective behind the move is to showcase Blue

Star’s strengths in providing cooling solutions. The value proposition for the new

campaign is ‘Cooling solutions to help your business do better’ ’’.

CHAPTER 3

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

3.1 Research Objectives of the study

Primary Objective

The main purpose of this study is to determine different strategies that are adopted by the

company to achieve its targets. Moreover the strategies will be evaluated to see which is

best amongst them.

Secondary Objective

The secondary objective of the research is to find the image of the company among the

customers.

3.2 Purpose of the study:

Analyzing the Market strength of Blue Star Ltd. Identifying potential market for

launching new product and increasing sales of existing ones. Explicit feed back on

product performance. Determine relative quality perception of Blue Star brand.

3.3 Research Methodology:

Research methodology is a collective term for the structured process of conducting

research. A research is carried out by different methodologies which have their own pros

and cons. Res ea rch methodology is a way to solve research in studying and solving

research problem along with logic behind them are defined through research

methodology.

3.3.1 Research Design:

Research Design is usually conducted during the initial stage of the research process. The

preliminary activities undertaken to refine the problem into a researchable one need to be

formal or precise.

Exploratory Research

The purpose of the Exploratory Research is to progressively narrow the scope of the

research topic and to transform the discovered problems into defined ones, incorporating

specific research objectives.

Qualitative Research

The purpose of Qualitative Research is to explore issues, understand phenomenon and

answer questions. In our research we need comparison between different stock brokers,

so this is based on all quantitative data. Focus groups, in-depth interviews, content

analysis, ethnography, evaluation and semiotics are among the many approaches that are

used.

3.3.2 Data Collection Techniques

The following techniques are used for collecting the data in this research:

Survey

Face-to-Face Interview

Telephonic Interview

3.3.3 Sample Design

“A sample design is a definite plan for obtaining a sample from a given population.”

We used the Non-Probability Sampling Design: Under non-Probability Sampling

Design, we used Convenience sampling it is a non-probability sampling technique

where subjects are selected because of their convenient accessibility and proximity to the

researcher Many researchers prefer this sampling technique because it is fast,

inexpensive, easy and the subjects are readily available

3.3.3.1 Population The population of the research was National Capital Region (NCR).It

is restricted to Greater Noida where I have visited people randomly nearby my locality,

different shopping malls, small retailers etc.

3.3.3.2 Sample size

“This refers to the number of items to be selected from the universe to constitute a

sample.” The sample size in this project is 100.

3.3.3.3 Sampling Method

Convenience sampling method is used in this project. The sample is selected in a random

way, irrespective of them being investor or not or availing the services or not. It was

collected through mails and personal visits to the known persons, by formal and informal

talks and through filling up the questionnaire prepared.

3.3.4 Method of Data Collection

Data collection is a process of preparing and collecting data. While deciding about the

method of data collection to be used for the study the researcher should keep two types of

data:

Primary Data

Secondary Data

Primary Data

In the Analysis we used personal interviewing where primary data can be directly

collected from respondents. The desired information was secured using Questionnaire. At

times questions can be asked as to why the respondent has chosen AC of a particular

company or what made him feel about that choice. ensure that the respondent was taking

interest while filling the questionnaire. This ensured collection of unbiased and accurate

data. To know the brand awareness, consumer perception about Blue Star and their

satisfaction level, the consumer personal survey was undertaken which was based on

non-disguised structure questionnaire.

Sources of Primary Data:

Telephonic Interview

Face-to-face interview

Company Prospectus and Literature

Questionnaire

Secondary Data

In this analysis secondary data relating to Blue Star Ltd. and have collected following

information about various range the company has, the technology being used by

company, their marketing strategies & information about the competitors. All this

information has been collected from the site “www.bluestarindia.com”,

“www.yahoo.com”, search engine of Google, magazines such as Business India,

Advertising & Marketing, Annual report of Blue Star Ltd. etc. Sources of Secondary

data:

Newspapers, Internet, Magazines and Trade Journals.

Company Database

Employees of the company.

Publication of books, company records, brochures, catalogues and other documents.

Reports and publications of Government department and international bodies..

3.3.4.1 Instrument for Data Collection

Questionnaires

Telephone

Internet

LIMITATIONS OF THE STUDY:

• Some of the dealers as well as the customers were not forthcoming with information

as they thought it to be a waste of time. Some customers were not able to respond due

to lack of awareness.

• A number of dealers were biased towards a particular brand which was giving them

better returns.

• Some of the shop owners were not available so, contacted person was not able to

present a fair view.

• Respondent’s lack of time to give information and their casual attitude was a big

hindrance in the study.

• The dealers were biased by some recent experiences which they had with a particular

distributor regarding the service or distribution.

CHAPTER- 4

DATA ANALYSIS AND INTERPRETATION

ANALYSIS AND INTERPRETATION

1. Are you aware of Blue Star Ac’s?

AWARENESS

Basis Response Percentage

Yes 60 60

No 40 40Total 100 100

Table no. 1.1

Figure 1.1

Interpretation: In a random sample of 100 people 61 people were found to be aware of Blue Star Ac’s. and 40 % of people are not aware of blue star because of presence of others brands as well like Samsung, voltas etc.

2. Any changes which you would like to bring among Blue Star AC’s.

Recommendations RESPONSE PERCENTAGE

Improve Quality 1 2

Increase Variety 3 6

Reduce Prices 19 37

Introduce More Schemes 26 51

No Change 2 4

TOTAL 51 100

TABLE. 1.9

FIGURE NO. 1.9

INTERPRETATION:

In the above analysis it is being clear that 51 % of the people want blue star co.

to introduce more schemes , 37% of the people want them to reduce price as

they found that co. like voltas are cheaper in rate than that of blue star.

3. What is your opinion regarding Blue Star AC’s?

QUALITY RESPONSE PERCENTAGE

Reliable 13 25

Long Lasting 15 29

Technologically Strong 21 41

Innovative 2 5TOTAL 51 100

Figure no 1.8

Interpretation:

In the above diagram it is clearly show that the AC which blue star provided to

their customers is that 41 % of the people found blue star’s ac to be

technologically strong and 29% found it very innovative and 25 % very

reliable. This shows how blue star is particular about their product and

providing great services to their loyal customers.

4. If you have to buy one more AC then AC of which brand would you prefer most?

Company RESPONSE PERCENTAGE

Blue Star 28 55

LG 13 25

Samsung 6 12

Voltas 2 4

Carrier 2 4

TOTAL 51 100

TABLE NO. 1.7

FIGURE NO. 1.7

INTERPRETATION:

55% of the people will go for blue star as they have already share their opinion

by saying this that they found blue star ac a reliable, innovative and also

technically strong.

5. How will you rate the pricing policy of Blue Star in comparison to

other brands like Samsung, LG, Videocon, Carrier,Voltas etc.

PRICES RESPONSES PERCENTAGE

High 19 37

Low 3 6

Somewhere in between 29 57

TOTAL 51 100

TABLE NO. 1.6

Interpretation

57% of the people found that the pricing of blue star is somewhere in between

as compared to other brands.

6. What do you like most about Blue Star Ac’s

QUALITY

TABLE NO. 1.5

7. Are you satisfied with your AC & the after sales service provided by the company? SATISFACTION LEVEL WTH THE AC AND AFTER SALE SERVICE

Basis Response Percentage

Yes 45 88

No 6 22Total 51 100

TABLE NO. 1.4

QUALITY RESPONSE PERCENTAGE

Looks 10 20

Price 9 18

Durability 28 55

None 4 7

TOATAL 51 100

8. Do you have a Blue Star Ac?

PROPORTION OF OWNERSHIP

Basis Response Percentage

Yes 51 51

No 49 49Total 100 100

TABLE NO. 1.3

9. How did you come to know about the Blue Star Ac’s?

MEANS OF AWARENESS

BASIS RESPONSE PERCENTAGE

Television Ads 9 15

Magazines 31 52

Newspaper 10 17

Internet 8 13

Any other means 2 3

TOTAL60 100

FIGURE NO. 1.9

CHAPTER- 5

FINDINGS

FINDINGS

In the coming years competition will intensify more, so companies will have to fight

hard to woo the customers. Crucial role facilitates price control. In other words, lower

down its cost of production.

Company should improve there after sales service & should go for warranties for long

durations.

Company should also come up with the new schemes for the customers. This will

help in attracting more and more prospects.

It was found that most customers owning AC’s were interested in an exchange offer.

So, company can also consider exchange offer scheme to beef up its sales.

Electronic media has a very effective reach in each and every potential household, but

Blue Star is not using this media. So Blue Star should stress on electronic media to

beef up its sales.

The Advertisement should be such that customer develops an emotional attachment

with the product.

Company should come out with 0% Finance Scheme. Due to this scheme more and

more prospects will enter into the customer base of Blue Star.

The product must be available at most of the places keeping in mind that the

distribution cost should remain minimum.

Last but not the least the company should introduce their consumer electronics

products. Such as Television and washing machines.

CHAPTER- 6

RECOMMENDATIONS

& CONCLUSIONS

SUGGESTIONS: To ensure customer’s confidence through product quality & efficient & effective

service.

To continually enhance Company’s worth to its shareholders and investors through sound investment and profitable operation.

To demonstrate a real concern for its employees and to constantly improve the quality and value of their job and career advancement.

To be a good corporate who contributes positively to its community by protecting the environment and working for public welfare

To respect the laws, rules and customers of the land and to ensure that the conduct of all company activities will always be to the highest ethical standards

To identify and determine suitable marketing strategic for boosting up the market share of AC, particularly for Blue Star Ltd

To make a detailed study of the Ac’s, in terms of its existing market size and future market potential.

CONCLUSION

Blue Star is the largest single source for air-conditioning equipment in India.

Blue Star is India's largest and most preferred air-conditioning and commercial refrigeration company.

Through its strategic long-term tie-ups with key and critical auxiliary manufacturers, Blue Star provides its customers many benefits.

The brand’s vision is to deliver excitement to the consumers, by providing comfort at its best.

Complete control over core components & technology.

The company has strong potential to grow & that through greater innovations.

In addition to corporate sector the company has the option to step into the local households by understanding their psychology.

Blue Star is India's largest central air-conditioning company.

In short it can be said that the company is still growing by making constant efforts.

BIBLIOGRAPHY

MAGAZINES:

Advertising and Marketing India Today.

INTERNET SEARCH:

www.bluestarindia.com.

www.encyclopedia.com.

BOOKS REFERRED:

Kotler, Philips. Marketing Management, New Millennium Edition, 2000

ANNEXURE

PERSONAL DETAILS : (Personal Details will be kept highly confidential,

these details will not be revealed to any third party)

Name : ---------------------------------

Age Group :

Below 20 20- 40 yrs Above 40

Gender :

Male Female

Occupation:

Service Business Profession Student

Income (Per Month) :

Less than 20000 20000-40000 Above 40000

Qualification:

Metric Graduate Under Graduate Post Graduate

SURVEY QUSTIONNAIRE

1. Are you aware of Blue Star AC’s?

Yes

No

2. How did you come to know about the Blue Star AC’s?

Television Ads

Magazines

Newspaper

Internet

Any Other

3. Do you have a Blue Star AC?

Yes

No

4) Are you satisfied with your AC & the after sales service provided by the

company?

Yes

No

5. What do you like the most about the Blue Star

AC’s?

Price

Looks

Durability

None

6. How will you rate the pricing policy of Blue Star in comparison to other

brands like Samsung, LG, Videocon, Carrier, Voltas etc.

High

Low

Or Somewhere in between

7. If you have to buy one more AC then AC of which brand would you prefer

most?

Blue star

Hitachi

Carrier

Samsung

LG

Voltas

Any Other

8. What is your opinion regarding Blue Star AC’s?

Reliable

Long Lasting

Technologically strong

Innovative

None

9. Any changes which you would like to bring among Blue Star AC’s.

Improve quality

Increase variety

Reduce prices

Introduce

schemes

No change