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In Partial Fulfillment of Summer Internship Project for the Award of Post Graduate Diploma in BUSINESS MANAGEMENT
PREFACE
Theory and practice are the two aspects of management education. In order to produce a dynamic and promising executive, the two have been blended together. In India, the industrial training in the domain of management courses has received pivotal importance. It exposes the potential managers to the actual work environment and provides them a rich insight into what actually goes in the industrial climate of India. The Business Management curriculum has been designed to provide to the future managers ample practical exposure to the business world. Project Report is a necessary part of the fulfillment of PGDBM course. It helps the students to gain knowledge about various aspects of the business emphasizing on the development of skills, analyzing and interpreting practical problems through application of concepts and theory learnt in the classrooms.
This report is based on the MARKET MAPPING AND DEALER SURVEY in NORTH DELHI. It also is based on the study of AFTER SALES SERVICE OF videocon products.
ANUPAM SAH
ACKNOWLEDGEMENT
A journey of a thousand miles begins with a single step. We as the students of management are exposed to the corporate world to be able to polish our marketing and managerial skills to cultivate the theoretical knowledge into practice. This opportunity provided to us in the form of summer internship enables us to test ourselves against the strong winds of competition in the ever-dynamic corporate arena. The period of 6 weeks in the industry makes us hope for the best and prepare for the worst. With the sense of immense gratitude, I thank VIDEOCON INTERNATIONAL LIMITED for giving me this wondrous opportunity to gain industry knowledge in their prestigious organization and for providing the necessary facilities and resources for this work. Mr. Amit Sarabhai and Mr. Tarun, my guide provided their invaluable knowledge and guidance throughout my research work along with an insight of how to deal with people who are one of the most important resources in any organization and require as much care in handling as any other factor of production. My sincere thanks to our Co-ordinator of Business Management, E.M.P.I. Business School Prof. Virender PHR and Mr.Raghavan for their moral support and guidance and enabling me to carry out my responsibilities effectively. Last but not the least I would like to thank my Parents for their moral support, help and motivation, as without their support he would have been impossible for me to finish this project.
June 2005
ANUPAM SAH
CONTENTS
1. Preface 2. Acknowledgment 3. Company profile 4. Introduction 5. Research methodology 6. Consumer durable industry 7. Project -1 8. Recommendations 9. Project-2 10. Recommendations 11. Project-3 12. Bibliography
Position of videocon in front of its competitors in the northern region of Delhi. Analytical study of consumer durable (ctv, refrigerator washing machine) market in north Delhi. To understand the problem and difficulties of dealers of north Delhi
Study of consumer behavior of A.C costumers in Rohini(north Delhi) Brief study of after sales service of videocon international.
To give valuable recommendation to improve after sales service in the region and to improve the brand image of videocon
RESEARCH METHODOLOGY
Two types of data have been taken for the completion of this project. Primary data Secondary data
Primary data
We got primary data from vis--vis interaction with showroom managers, dealers, marketing personnel of the show rooms of consumer durable products. Tools used: i. Questionnaire ii. Personnel interview iii. Telephonic interview
Secondary data
i. Internet ii. Library iii. News paper articles Based on the information obtained from the above sources concepts were developed on which analysis was made.
INFORMATION FROM DEALERS CONTACTED MOST of the dealers of consumer durables of north Delhi to know the following: To know the sales of CTV, Washing machine, and refrigerator in northern market of Delhi. To know the sales of videocon in front of its competitors To know the problem of various dealers To know the recommendations of the dealers for promoting sales of videocon product in northern region of Delhi. RESULT Most of the sales of videocon are in the region of colour television only. Videocon has a strong hold in rural market of north Delhi. Supply is not proper in some parts of north Delhi After sales service of videocon is not satisfactory Videocon provides good margin to dealers. Videocon has an affordable price tag.
PROBLEMS Proper advertisement of videocon products is not there. After sales service is not satisfactory. Supplies of products are not regular. RECCOMMENDATION Proper advertisement should be there for all videocon Products. Supply should be in time.
After sales service should be provided in time. The quality of A.Cs should be improved.
VISION
VIDEOCON GROUP IS COMMITTED TO BRING HAPPINESS IN EVERY HOME WITH GLOBAL PRESENCE OFFERING HIGH QUALITY "e" PRODUCTS TO EASE HUMAN LIFE.
PHILOSOPHY
To compete in Indian and international market with global mindset. Maximize value for costumers, employees and share holders. Pursue the best in the class through management by principle. Contribute to society through good corporate citizenship.
INTIATIVES
Redesign business portfolio Develop new strategic business Globalization Acquire promising differentiated technology Cultivate high performing leadership
THE OBJECTIVES & ITS RELEVANCE OBJECTIVES LEADERSHIP THROUGH INNOVATION LEADERSHIP THROUGH TECHNOLOGY LEADERSHIP THROUGH QUALITY LEADERSHIP THOUGH PERFORMANCE RELEVANCE Todays complex business environment and hence competion makes it mandatory for a company to manage with information. The modern age will go down in the books of history as the age of information revolution. Each and every department, may it be finance, production or human resource needs inputs from the marketing and sales department.gone are the days of the shooting in the dark. Now the compant must be sure what it is forgetting and should have a fair knowledge of its market & aids trends. Todays market is customers driven and not product driven, so the companies have to come out of its products to fit in the requirements of the customers.
Shahjanpur (Rajasthan), Warora (Maharashtra) and Butibori (Maharashtra). Under a separate licensing agreement with AB Electrolux, the Videocon Group will distribute products under 'Electrolux' and the 'Kelvinator' brands in India. This makes Videocon India's No.1 Home Appliances Company.
COLOUR TELEVISION
India has a huge middle class population with rising income levels and growing aspirations. This, along with easy availability of consumer finance, will drive the demand for colour televisions. CTV demand surged by 24 per cent Y-o-Y during JAN-MAY 2005 to cross 6 million units, and is expected to grow by 10-15 per cent in the medium term. Growth will be substantial in the flat CTV segment, which is expected to account for 35-40 per cent of CTV sales in 2005-06 (up
from about 25 per cent in 2004-05). Videocon in north Delhis rural market has a good market share. The companys 14 television has good sales in April may season. The new Xlent model that has been launched is welcomed firmly by the north Delhi urban coustomers.As the market of north Delhi is more price oriented and the major population is addicted by the advertisement which is poured in all type of media, LG and Samsung has the major market share.
1%
52%
22%
30%
20%
10%
25% 15%
25%
25%
30%
25%
25%
20%
Analysis
Most of the sales are from 21flat segment because there is no much price difference between 20conventional and 21flat models and flat ctvs are the latest trend among the customers LG is selling maximum because of there better brand promotion strategies and aggressive advertising. Videocon has its major sales in rural areas because of its lower price and good dealer margin as mostly the rural market are dealer oriented.
Recommendation
To boost the sales of videocon, the company should give more importance to after sales service as the company lacks it.
Company should concentrate on the looks and the quality of its lower models. A scheme should be float especially for 21 models to increase the sales.
INTRODUCTION TO REFRIGERATORS Conventional refrigerators Direct Cool refrigerators cool through the direct contact of air with the cooling coils bound around the freezer. The Direct Cooling system has several drawbacks: Ice forms frequently around the cooling coil - reducing cooling efficiency and creating the need for manual defrosting additionally, also the temperature distribution is uneven within the various compartments. Frost-Free Refrigerator The Frost-Free System is designed to overcome the drawback of conventional refrigerators. In a frost-fee refrigerator, the cooling coils are located outside the stroke area. A special cooling fan flows cold air from over the coils and into the refrigerator and freezer sections. No frost ever forms inside Frost-Free refrigerators - giving you high cooling efficiency and maximum storage space at all time. Refrigerator is now the harbinger of economic development, prosperity, affluence and a new lifestyle. Changes in refrigerator technology in response to consumer and industry needs over the years have led to product up-gradation which has resulted in several benefits to the consumer. Compressor has been upgraded over time to become more energy efficient and provide greater cooling. Plastic lining is used inside the fridge and Polyurethane foam (PUF) is being used as an insulator. Plastic components and wire shelves are used in the interiors. They are stronger, durable and easier to clean and handle. Direct Contact Roll Bound evaporators are used which cool much faster and are much efficient. To adhere to the changing consumer needs, larger capacity, multi-door features and flexible interiors are provided in the refrigerator.
Refrigerators are designed from direct cool single doors to double doors so that cold air inside the freezer is less exposed to the outside temperature. Frost Free technology is gaining popularity to solve the problem of frequently defrosting the refrigerator as well as ensuring uniform cooling around the entire refrigerator and control the air flow in the ducts. Wide range of refrigerators in size, color and design are there in the market.Clean back refrigerators are in which give a soft look.Painting process has shifted to pre coated panels that are glossy, scratch resistant and aesthetically more appealing. Non CFC refrigerators are being developed due to increasing awareness of dangers to the ozone layer. The refrigerator will be known as the Ecofrig. For the effective implementation of this technology, India became party to Montreal Protocol on Sept. 17, 1992.There is proliferation of models in the range of 200-300lt.capacity since a single bigger compressor can serve these refrigerators pretty effectively. Baby refrigerators are being introduced in the size of 100lts. and below. There is a sea change in the demand of refrigerators- from a few thousands in the fifties to 1,240,000 in early nineties to 1,890,000 in 1995 and an expected 5,800,000 by the turn of the century. This is due to the affluent culture prevailing in the urban and rural areas and a change in the consumer behavior and perception INTRODUCTION TO WASHING MACHINES
There are 3 types of washing machines: Automatic : Washing and drying is done automatically in the same unit. : User has to transfer clothes between the washing and drying
Semi Automatic
compartments manually. Washers: Low on features (no drying facility etc.). Lower ends of the market with the players essentially being in the unorganized sector. The basic difference between machine available today is whether they are top or front loading. We look at the differences
Pulsator Popular in Japan Washes by rotating a disc every 10-15 seconds. Gives a satisfactory wash.
Agitator Popular in USA Washes by rotating a cylindrical rod every 2-3 seconds. Gives powerful wash and is suited for heavier and dirtier
Tumble wash Down Popular in Europe Provides a gentler wash and uses hot water to clean. Closest replication of manual washing.
buying
Brand = 64% say that the customers prefer brand name Price = 84% of the customers look for price Feature = 90% see the features while buying. Service= 20 % see for services
Promotion schemes= 12% see the promotional scheme. Word of mouth = 18 % go for word of mouth.Dealers advise= 32% go for the dealers advise.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Pr ic e Pr Se om rv ot ic io e n Sc he W m or e d of m D ou ea th le rs ad vi se at ur e Fe ra nd B
80%
80%
84% 65%
24%
30%
LG
=2nd rank
Kelvinator
Whirlpool
Videocon
Samsung
Godrej
LG
b) c)
Credit 47%
Cash 53%
them.
d.
them.
e.
7. High incentives by Samsung 8. 0% interest by Whirlpool and finance facility by Whirlpool 9. Carry back scheme whirlpool 10. Exchange offer by Whirlpool 11. Exchange offer by kelvinator 12. Pentacool new advertisement by goodrej
Samsung=5 Whirlpool=2
Percentage of selling
a) Frost free refrigerator =1125/25 =45% b) Normal refrigerator =1375/25=55%
55% 45%
Normal refrigerator
Percentage of customer impressed or purchase the product due to the unique feature.
a) Yes =71%
b) No=25% c) No response= 4%
No response 4% No 25%
Yes 71%
LG
Whirlpool
Videocon
Samsung
FINDINGS
1. CUSTOMERS OF NORTH DELHI ARE VERY MUCH PRICE ORIENTED. 2. THE MARKET IS TOTALLY DEALER DRIVEN
3. MOST OF THE SALE IS COMING FROM 1.5 TON A/C 4. AS VIDEOCON PROVIDE MAXIMUM MARGIN MOST OF THE SALE IS OF VIDEOCON ONLY.
ANALYSIS
1. VIDEOCON LACKS IN ITS QUALITY. 2. VIDEOCON LACKS IN AFTER SALE SERVICES. 3. 4. BLUE STAR HAS VERY GOOD SALE SERVICE THERE ARE PLENTY OF CUSTOMER WHO GOES FOR GENERAL AND HITACHI ONLY.
RECCOMENDATION
1. SUPPLY SHOULD BE GIVEN PRIORITY AND SHULD BE REGULAR 2. AFTER SALE SERVICE SHOULD BE PROVIDED REGULARIT BECAUSE IT HELP IN MAKING GOOD IMPRESSION OF THE COMPANY 3 4 ADVERTISEMENT AND CAMPANING OF VIDEOCON A.C SHOULD BE IMPROVE IN NORTH DELHI REGION MAKE CONSTANT VISIT TO VARIOUS AREAS DEPOTS AND THE PERSON SHOULD BE ONE FROM THE SENIOR LEVEL BECAUSE IT WILL GIVE THE ASSENSE OF BELONGIGNESS WHICH WILL IN RESULT HELP IN IMPROVING BRAND IMAGE.
CONCLUSION
Videocon has got a good brand name in the north Delhi market. But the poor supply system and poor after sales service has decreased their sales dramatically. Though their sales in rural areas are more than average still the customer ask for lg and Samsung. The core reason is their aggressive advertisement where videocon lacks. dealers are happy with the margin videocon is providing to them but they are unhappy because of the poor after sales service and lack of quality in some products such as AC.If the company can improve their after sales service and advertising strategy it can capture the market share from lg and Samsung