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
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.
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’ ’’.
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.
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
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.
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