Voltas Air Conditioners Mumbai 4s2h53

CONTENTS Title of the Section Executive Summary Project Objective Introduction Company Overview Area Of Business Air Conditioning Industry History Of Air Conditioners Methodology Analysis Product Price Place Promotion Suggestions & Recommendation

Conclusion

Executive Summary The project deals with the Study into the marketing mix of Voltas in the Mumbai AirConditioner Market. The report consists of the primary data obtained from the dealers. The attributes, which defined the data, were Shelf Space, Window Display, Prices Given, P.O.P. Material, Dealer Preference, General Positive and Negative Attributes for various Brands, Dealer Interface, and Finance Schemes Offered. In all I visited 50 outlets spread all over Mumbai (includes dealers and retailer), who dealt in air conditioner I also interviewed 44 customers at showrooms across Mumbai. Data thus obtained was then grouped and analyzed, after which the inferences were drawn. I observed that L.G. was undoubtedly the market leader. In Mumbai AC market LG has the highest penetration, as it is available in almost 75% of the outlets while Hitachi is present in only 64% of the outlets. L.G. also leads in the other categories like the window display (40%), shelf space (50%) and POP (40%) while Voltas has the share of 7%, 28% and 34% in the respective categories. Although Voltas is No.2 brand in Mumbai region but it has the highest corporate customer or we can say, institutional sales in comparison to other AC brands. Of the outlets visited, 44% claim L.G. to be the top Brand whereas Voltas has 21% of the outlets claim it to be the top Brand. The strengths of L.G. lie in its low price and good quality whereas Hitachi’s strengths lie in its superior quality and post sales service. Whereas, on the negative side the claim that LG is not as durable as other brands & has a life expectancy less than other brands like Voltas, General etc.

For Voltas the most spoken about negative is its high price & poor after sales service. Next there was the classification of the demonstrator/salesperson for the outlets visited. Based on this data collected, I recommend that customer awareness about Voltas’s star rating mode has to improve, so that it will be a lot easier to convince the customer that price difference, which works against Voltas, can be negated in the electricity bills.

Project Objective This project was carried out in Mumbai during the period of 4 th May 2009 to 30th June 2009. The project would also include the study competitor activities and the relative position of Voltas, when it comes to retail level activities. The following are the heads, which were given prominence during the primary data collection. Information on the display of Voltas A.C.s vis-à-vis competition: Under this head the objective was to understand the display allocation for air conditioners in the outlets and also making a note of the shelf space and the window display space allocated to each of the brands. Also, making a note of how many Voltas units are on display and what is the strength of the competitors. The main focus when considering the competitors was on L.G., Samsung, O-General, Hitachi, Carrier, Godrej, Blue Star and others including Videocon, Kenstar, Onida Whirlpool and National. Display and use of material: The material in the case is Carton Display, Poster, Sticker, Dangler, Leaflet, Dealer Certificate, Working Window Display, Glow Signs and stands. The objective here is to whether all the material is in place. How much is given to the various brands at each outlet? The objective here is to check the effectiveness of the material in increasing the brand visibility, awareness and in addition there would be a study of the various promotional activities by the competition to woo the customers and success rates of these promotional activities. Information on the performance of the Demonstrators/Salesperson:

Under this head the focus will be on the activities carried out by the demonstrators/Salesperson on the shop floor. Also, there will be rating of the demonstrators on three aspects- 1) Communication skills 2) Technical Knowledge and 3) Enthusiasm shown. Apart from this there will also be a study of which brand the demonstrators/salespersons are pushing, what they have to say about Voltas. There will the top preference of demonstrators from every outlet which will give an idea of who is pushing what and what are the most talked about positives and negatives of Hitachi. Cleanliness of the displayed product: A damaged or unkempt display unit will create a bad impression of the brand. Also, the approach to the unit on display has to be tidy and easy in addition to the clean surroundings of the display unit to serve the purpose. As a result the condition in which the display units are is also one of the objectives of the project. Prominence given to Voltas Air Conditioners vis-à-vis competitors: For a brand to sell there is a lot of nitty-gritty that goes into it like the prominence given to a brand. This can be adjudged by the location of display on the shop floor, the lighting, the space provided around where the product is centered, on shelves the level at which the display unit is kept governs the visibility. All these factors combine together to Dealers Level Activities: Dealers are the main part for any product that can create and damage the image of a product. So this project also includes the study at dealer level which includes the points like; which kind of Voltas AC is doing well in the market, what are the issues which they are facing from product and company side, also what are the suggestions

and recommendation from their side to increase the sales of the products. Voltas Ltd. is one of the major players in the highly competitive A.C. market today with the market share of 16 %, which is overall second in the market today. This project primarily aims to understand the 4 P’s i.e Product ,Price ,Place & Promotion of Voltas air conditioners at SSD level, Dealer level & Customers Level.

Introduction Indian Consumer durables market used to be dominated by few domestic players like Godrej, Voltas, Allwyn and Kelvinator. But post liberalization many foreign

companies have entered into Indian market dethroning the Indian player and dominating Indian market the major categories in the market REFRIGRATOR, AIR CONDTIONERS AND WATER COOLERS. India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India. LG & SAMSUNG the two Korean companies have been maintaining the lead in the industries with LG being leader in almost all the categories. Consumer durables major Voltas Limited will invest nearly Rs 500 crore in India this year in research and development, brand-building and other marketing initiatives. The company, having a turnover of Rs 500 crore and market share of 17 per cent, is investing Rs 500 crore on brand-building and other marketing initiatives and around Rs 500 crore on research and development, besides launching new platforms in information technology and related areas, Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, ing for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market.

Consumer durables market is expected to grow at 8-13% in 2009-2010. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market.

With the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are no longer considered luxury items. However, there are still very few players in categories. Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brand name, and hold over wide distribution network. However, the penetration level of the consumer durables is still low in India & there is a yet a huge untapped rural market waiting to be exploited.

Company Overview Voltas Limited is a Public Limited Rs 2500 crore multi divisional company, engaged in the air conditioning and engineering business. It was incorporated on 6th September 1954. Tata Sons Ltd and Volkart Brothers, a Swiss Company operating in India since 1851, promoted this company and hence the name VOLTAS.

Voltas, A Tata Group Company is India's premier air conditioning and engineering services provider. It provides engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, climate control, electro-mechanical projects, textile machinery, machine tools, mining and construction, materials handling, water management, building management systems, pollution control and chemicals. Voltas have capability in the manufacture of room/split air conditioners, industrial air conditioning and refrigeration equipment, water coolers, refrigerators, visi-coolers, freezers, forklift trucks and large water supply pumps. All these products bear the stamp of state-of-the-art automated manufacturing plants resulting in consistently high quality and reduced costs. Company is partnered with international companies such as LG Electronics and Samsung of Korea and Fedders International of USA for 'manufacture only' alliances producing low cost, high quality refrigerators and room air conditioners.

The company’s promoters, Tata Sons hold around 28 per cent of the shares in the company. Foreign investors and the public hold around 21 per cent share each, while domestic financial institutions and non-promoter corporates hold the balance. Voltas has recently gone through a comprehensive restructuring exercise, aimed at bringing the ‘core to the fore’. This exercise, conducted between 1997-1998 and 20012002, comprised of redefining the business focus of Voltas as being an engineering

services company. Accordingly it involved reorganizing the company’s business portfolio, exiting non-core businesses and exploiting unproductive assets to generate revenues, rightsizing the organisation through focused voluntary retirement schemes, aggressive cost cutting and financial re-engineering.

Areas of business The company mainly operates in the following areas: Company involved mainly into the design and manufacture of industrial equipment, management and execution of air conditioning and public work projects, sourcing, installation and servicing of technology-based systems, and representation of global technology leaders, serving diverse industrial sectors and applications. Voltas'

operations have been organized into three independent business-specific clusters. Each of these has its own facilities for market coverage and service to customers. Namely:

Unitary Cooling Product s Engineering products & Services Electro-Mechanical Projects & Services

Electro-Mechanical Projects & Services  Electrical, Mechanical, HVAC & Refrigeration Solutions 

Electrical, Mechanical & HVAC Solutions(International)



Water Management & Treatment

Engineering products & Services  Textile Machinery 

Mining & Construction Equipment



Machine Tools



Materials Handling Solutions

Unitary Cooling Products for Comfort & Commercial Use  Cooling Appliances 

Commercial Refrigeration

Air Conditioning Industry Air Conditioners give respite from summer heat and have become a necessity. They have made our lives comfortable. After a hard day's work you return home and switch on your air conditioner and let the fresh air relax you and rejuvenate your spirits. Once again you are ready to shop out with your family or help your spouse in household work or spend some quality time with your kids. India you desperately need an air conditioner. In this scorching heat it is only an air conditioner that can give you some respite and make you livelier and energetic. Earlier buying an air conditioner was not easy. It was very costly and middle class families can't afford but now purchasing an air conditioner in India is no more tough and expensive. There are various companies offering air conditioner like LG, Hitachi, Samsung, Onida, Godrej, Sanyo, Cerrier, Bluestar, Voltas, Amtrex, O

General etc. These companies have various offices all over India. They have their own store and shops selling air conditioner of all types. Air conditioner comes in various sizes and shapes. Some air conditioner does not even look like an air conditioner especially ones offered by LG. Their surfaces are too good looking and look like a beautiful scenery. There are room air conditioners, split air conditioners, car air conditioners, ductless air conditioners, air ceiling conditioner mount system etc.

History of Air Conditioners Air conditioning as we know it today is a rather new technology although different form of cooling air and dehumidifying the air has been around for centuries. The ancient Romans used aqua duct water to circulate through the walls of the wealthiest homes. This is just one example of ancient air conditioning. The Chinese were also were also obsessed with cooling the air through water and wind. They used various methods to cool their interior buildings and stay cool during the hot months. In the 1800's one man came close to

inventing

what

is

similar

to

modern

day

air

conditioning.

In 1820 British Inventor Michael Faraday discovered that ammonia could chill the air when compressed and liquidized and then allowed to evaporate. In 1841, John Gorrie, a medical doctor discovered that he could use compressor technology to create ice to cool his patients rooms in Florida. This discovery gave Gorrie the great aspiration of inventing the first air conditioning unit. He came very close. His first pro type leaked and was

unsuccessful. He secured funding and his patent was approved in 1851. His funding partner died and he lost the money to see his dream realized. He later died in 1855 and with him his vision of indoor air conditioning died as well for the next 50 years. The commercially available of air conditioning applications started based on the need to cool air for industrial processes than for personal comfort. The first electrical air conditioning was invented by Willis Haviland Carrier in the year 1902. He was also known as the Father of Modern Air Conditioning. His invention was designed to improve the manufacturing process of a printing plant. By controlling the temperature

and humidity of the plant, the processes were made more efficient as the paper size and the ink alignment were consistently maintained. The Carrier Air Conditioning Company of America was established by him to meet the demand of better productivity in the workplace. Today, Carrier Corporation is the biggest air conditioner manufacturer and marketing corporation in the world in central air conditioning. The term air conditioning was first coined by Stuart W. Cramer of Charlotte, North Carolina in 1906. Cramer was trying to create ways to add moisture to the air in his textile plants. Cramer used the term Air conditioning in a papers filed to the patent office for his invention of a water conditioning unit which was required to control the humidity in textile plants. Willis Carrier took the term air conditioning and put it into his companies name as he used evaporative cooling to provide a cooling effect in the air. The first air conditioners proved to be hazardous to human’s health when the toxic gases leaked. The use of ammonia, methyl chloride and propane. These toxic, flammable gases tended to leak causing fatal results. In 1928 Thomas Midgley, Jr. was the first to create an

air conditioner that used Freon. This was found to be much safer for humans but had disastrous effects to the environment. Modern day air conditioning has improved over the years. The emphasis these days are on energy conservation and efficiency. The modern day air conditioner can come with all sorts of bells and whistles and most importantly is that it is available to just about everyone. The modern day air conditioning is affordable to everyone.

METHODOLOGY Research methodology is considered as the nerve of the project. Without a proper wellorganized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods. Research design: Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyer’s behavior, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, “Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance.

The first step of the project was to collect information regarding the distributors, dealers and sub dealers with multi product/ multi brand portfolio which included products like A.C. Televisions, Refrigerators and Washing Machines for the whole Mumbai region (also including the sales and services that are exclusive dealers for A.C).

For this purpose I took the help of various newspapers like T.O.I., Economic Times, Midday and Business Standard & also Just Dial. All the ads of Consumer Durables, which appeared in these papers, were noted down and the necessary details like the name of the shop, the phone number and the location of the shop was fed into the computer in an excel format and used as the database during the course of the survey. The data was then structured and the whole Mumbai Region was divided into three Zones. Then I set about the job of deciding upon the format of the Questionnaire that would be used while collecting data from the retailers/dealers. The initial format was then tested for whether all required information was obtained from the showrooms after which the required changes were made to get the optimum results. After freezing the format I had to decide on the role that would enable us to get the complete information that I was looking for. I had various options: 

To go to the outlets as personnel from Voltas.



To go to the outlets as Management Student.



To go to the outlets disguised as customers.

I realized during the format the best and most unbiased Information was provided to me when I visited the outlets as a Management Student. Hence a call was made by me

to visit the outlets as a Management Student so that the purpose of getting complete and unbiased information is served.

Data collection methods: After the research problem, we have to identify and select which type of data is to research. At this stage; we have to organize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data. Primary data: For primary data collection, we have to plan the following four important aspects. 

Sampling



Research Instrument



Secondary Data - The Company’s profile, journals and various literature studies are

important sources of secondary data. 

Data analysis and interpretation

1.

Questionnaires

2.

Pie chart and Bar chart

Questionnaires: This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey. Pie chart:

This is very useful diagram to represent data, which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data. Bar chart: This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent. Preparation of report: The report was based on the analysis and presented with the findings and suggestions. The sample of the questionnaires is attached with the report itself. Sampling Methodology: Details of the sampling methodology, I have made questionnaire. No. of questions in questionnaires for Product:

09

No. of questions in questionnaires for Price:

08

No. of questions in questionnaires for Place:

06

No. of questions in questionnaires for Promotion:

05

No. of questions in questionnaires for Customers:

12

No. of Dealers interviewed:

50

No. of Customers interviewed:

44

Sample unit:

Dealers, Employees, Professionals, Businessmen, House wife, Working women, Students.

Analysis PRODUCT & SERVCE: On the whole the data collected shows that under the various heads taken to conduct the survey Voltas’s performance overall is a mixed bag or I can say that it was 75:25 of (good: bad). Finally I landed up to five most popular brands who are ruling the AC market; Voltas, LG, Samsung, Carrier and Hitachi. On the basis of these brands the further study has been carried out. From the survey conducted we can determine that the overall presence of Voltas is equal to the other four brands, which would primarily mean that the reach of the brand to the people is satisfactory. Brands like LG and Samsung doing well because of their overall branding due to their presence in other consumer product like LCD, refrigerators, Washing Machines etc. But, on the counts of Shelf Space and Window Display Voltas is lagging behind LG and Samsung thus depriving the potential customers the first hand experience of the functioning of the AC which might also mean that the brands which have more presence on the shelf might capture these customers. The POP material which is quite quintessential when it comes to convincing the customer about the Brand’s features, providing it distinctness from the host of other competitors and in establishing the Brand Identity in the minds of the customers. In the survey it was found that Voltas is in the second position after LG when it comes to

the POP material in the outlets but this is not the complete picture the presence of LG in of the material. Continuing about the material, the best any brand can have is the word of mouth preference that the dealers or the salespersons give to the customers as only what they push has the maximum chance of selling. In the outlets visited it was found that Voltas although second, again lags behind LG by some margin. While speaking about there preferences the dealers or the salespersons invariably give the attributes of the brand that they are pushing and the negatives of others that they advise the customers against. The good news here is that the most spoken about positive attribute for Voltas (the good quality attribute) as against the most spoken about positive attribute of LG (the low price attribute). So, we can safely assume that the positive attributes of Voltas are spoken about by the dealers/salespersons.

But here again there is a spoiler, which are the negative attributes of the Brands that the dealers/salespersons use to dissuade the customer buying a particular brand. While dealers claimed LG to be less durable, there were outlets that claimed that Voltas is priced too high. The result of which is that all the good work of the positive attributes is nullified.

The best and the biggest international brands are here in India –but the irony if it all: where is the after-sales-service? So integral to a brand, so critical for its success and so taken for granted in developed markets! In India, after sales service is, for want of a better description, the pits. So what’s stopping the second best air conditioning companies from pulling out all the stops when it comes to providing the best service?

Do customers expect for too much? Or is it that in India they don’t really care. Brand Equity fanned out to MNC as well as Indian consumer durable companies, stockiest and dealers, analysts and market researchers to get a feel of what’s really keeping after sales from being used as a cutting edge marketing tool in pushing products across categories. Customers following the purchase of a product or service. In some cases, after-sales service can be almost as important as the initial purchase. The manufacturer, retailer, or service provider determines what is included in any warranty (or guarantee) package. This will include the duration of the warranty traditionally one year from the date of purchase, but increasingly two or more year’s maintenance and/or replacement policy, items included/excluded, labor costs, and speed of response. In the case of a service provider, after-sales service might include additional training or helpdesk availability. Of equal importance is the customer's perception of the degree of willingness with which a dealer deals with a question or complaint, speed of response, and action taken.

Types of Air Conditioners offered by Voltas: Now when we talk of air conditioners, there are a number of makes and models available in the market. So as to say that there is a variety of sizes and types of AC’s available for cooling rooms of different sizes. And in order to choose the perfect air conditioner for your room it is always advisable to have some extra knowledge about the types of AC and their purpose as to which one is best for what kind of room. With the variety of air conditioners available in the market, it is very difficult to choose the most suitable AC for our home or office. And if we don’t have a clue about air conditioner then it adds to our own disadvantage. There are mainly five types of air conditioner: 1) Window mounted: These are air conditioners that are usually fixed through the windows, which have been designed typically for double hung windows. And it is one of the most commonly used air conditioners as this is best for cooling a single room for the simple reason that these are easy to install, cheaper and works with almost all the wiring system of your home. The price range varies from Rs. 12,000 to Rs. 27, 000 on an average for room size the range varies from 10 meter square - 84 meter square.

2) Split Air conditioner: This type of air conditioner is best suited for rooms whose

area is up to 60 meter square and might cost you (approx) around Rs.16,000 to Rs. 35,000 on an average (multi-split system). A split air conditioner consists of two parts: the indoor unit which is also called as the evaporator unit and the outdoor unit which is known as the external condenser box and is installed outside the room or the building. And this is one main reason why most people opt for split AC’s, as during the operation, it doesn’t make any noise which might distract your attention or annoy you. Split AC’s are permanent systems which can either be installed at the floor level or on the walls or on the ceiling. However, it can be very noisy and may create nuisance for your neighbors.

3) Cassette Air Conditioner: These are air conditioners that are usually fixed into the sealing. This ultra thin air conditioner can be installed in any narrow ceiling. These are usually fit in places where it is not possible to fit either a Window or Split Air conditioner. The price range varies from Rs. 68,500 to Rs. 86,500on an average.

4) Slimline Air Conditioner: This type of air conditioner has been one of the most popular types for certain reasons. One major reason is that they can be easily moved from one room to the other and is often referred to as a mobile air conditioner. Being portable,

it

is

easier

to

store

when

the

summer

season

wears

off.

It is best suited for smaller rooms and for those people who moves their houses very frequently. The only minus point is that they are

quite expensive and the exhaust tube needs to be fitted each time. It has a separate indoor and outdoor section. It is recommended for rooms whose area is up to 35 meter square.

5) Ductable Split Air Conditioners: Ductable air conditioners are those that are used to condition more than one room, in the same building . These kind of air conditioners are usually seen in institutions, big organizations, hotels etc. Duatables comes in different tonnages depending upon the space needed to be cooled. The prices of ductables vary depending upon the tonnage.

Out of all the above mentioned air conditions the maximum selling would be the Split air conditioners .Though window a/c will cost less and is easier to install. The downside is you will loose your view through the window and you will have more air leakage than a split unit. A window unit will be less efficient than the split also a slit a/c is much quieter than a window a/c. The split unit will add more value to the home and will be quieter.

Key Findings about Product  The product range is changed very frequently and the customers are not able to relate themselves to the products.  Spare parts are a major issue as they are not available readily. While comparing it to market leader LG spares are readily available.  Stock outs too are a major worry as products are not available on demand, especially during peak season.  There are a lot of complaints from customers about the machine making a lot of noise while running.  After sales service was criticized greatly. While most of the dealers & customers were happy with the after sales service provided by LG.  Installation too is a bit on a slower side when you compare it to LG. Where Voltas takes approximately 48hrs to install the a/c LG takes half as much time.  The design & color of Voltas air conditioners is very simple & common.  People buy Voltas mainly because it’s a Tata group of company & also as it is the pioneer in air conditioners in India.  By calculating the display share we found that in most of store LG has 50% display share almost all categories.  Demo calls also not done properly.

Recommendations about Product  To improve after sales services provided. Instead of providing 2 free services Voltas must offer at least 3 like its major competitors. Also the time when a complaint is made and the complaint is attended to should be reduced. The company could also offer an extended warranty at a nominal rate.  Availability of spares needs to be looked into. A separate team could be to appointed to handle all spare part related issues.  Better design could give it a huge leverage as in today’s world looks are given high weighed. Different color s could be used like that used by Godrej to give the product a better look. Also detachable s could be popularized as people could select the color of the s according to there taste & preferences.  In a lot of cases it was reported that dealers are not made aware about new product releases hence awareness about new products should improve the enthusiasm of dealers to sell a product as well.  A separate sales person could be appointed by Voltas in major stores promoting Voltas exclusively. In most of the outlets visited it was observed that most of the dealers promoted LG as the first preference.  To make efforts to make the machine a lot more silent.  Product availability especially during peak season must be paint a lot of attention to. As I observed that there was not even a single window A/c

available in the first half of June & there was a lot of demand for the same in the market.

 A lot more must be spend on R & D activities & to introduce never seen before features and products much like Hitachi.  Make the products more durable (increased life) as a numerous customers give a lot of importance to durability of product.  On the counts of Shelf Space and Window Display Voltas is lagging behind LG and Samsung thus depriving the potential customers the first hand experience of the functioning of the AC which might also mean that the brands which have more presence on the shelf might capture these customers hence rigorous effort need to be made to increase the shelf space & window display in order to attain leadership position  Voltas can come up with detachable s. This will allow the customers to choose the color of there choice to match there room & taste.

Pricing

Definition: Pricing is the process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, Quality of product. Following is the price list of different air conditioner of Voltas: Voltas Split AC Price List

Product Name

Voltas Windows AC Price List

Pric e

Product Name

Pric e

Voltas-Vertis GOLD 2.0T SAC

34,500/-

Voltas-Vertis Elite 1.5 Ton

21,900/

Voltas-Vertis GOLD 1.5T SAC

30,500/-

Voltas-Vertis Elite 1.0 Ton

17,000/-

Voltas-Vertis GOLD 1.0T SAC

24,500/-

Voltas-Vertis Elite 0.75 Ton

14,000/-

Voltas-Vertis GOLD 0.75T SAC

18,500/-

Voltas-Vertis Plus -2.0Ton

19,500/-

Voltas-Vertis ELITE 2.0T SAC

33,000/-

Voltas-Vertis Plus -1.5Ton

17,500/-

Voltas-Vertis ELITE 1.5T SAC

28,400/-

Voltas-Vertis Plus -1.0Ton

14,350/-

Voltas-Vertis ELITE 1.0T SAC

20,100/-

Voltas-Vertis Plus -0.75Ton

12,000/-

Voltas-Vertis ELITE 0.75T SAC

16,000/-

Voltas-Vertis 1.5Ton R

16,800/-

Voltas-Vertis PLUS 2.0T SAC

Voltas-Vertis 1.5Ton M

16,400/-

Voltas-Vertis PLUS 1.5T SAC

28,500/ 26,200/-

Voltas-Vertis 1.0Ton R

14,500/-

Voltas-Vertis PLUS 1.0T SAC

22,500/-

Voltas-Vertis 1.0Ton M

14,000/-

Voltas-Vertis PLUS 0.75T SAC

15,000/-

Average Price

21,123

Average Price

16,17 7

Following is the price list of different air conditioner of LG LG Split AC Price

LG Window AC Price Price

Price

LG LSA7JW2CFC1 2.0 Ton Split AC

37,000

LG LSA5NW3VF1 1.5 Ton Split AC

27,000

LG LWA2DW1AF1 0.75 Ton Window AC

11,000

LG LSA3NW2VF1 1.0 Ton Split AC

19,400

LG LWA3EW1DF1 1.0 Ton Window AC

14,000

LG LSUC2BW1AF1 0.75 Ton Split AC

15,000

LG LWA3FW1DD1 1.0 Ton Window AC

14,000

LG LSNC2BW1AF1 0.75 Ton Split AC

15,000

LG LWA3EW2DD1 1.0 Ton Window AC

14,400

LG LSA3CW2VF1 1.0 Ton Split AC

19,000

LG LWA5EW1DF1 1.5 Ton Window AC

17,000

LG LSA3NW2VF1 1.0 Ton Split AC

19,400

LG LWA5FW1DD1 1.5 Ton Window AC

15,700

LG LSA3QW2VF1 1.0Ton Split AC

19,400

LG LWA5VW1DT1 1.5 Ton Window AC

16,200

LG LSA3QW2VF2 1.0 Ton Split AC

19,400

LG LWA5HW2DD1 1.5 Ton Window AC

16,990

LG LSA3FG2VTY1 1.0 Ton AC

20,000

LG LWA5VW2DT1 1.5 Ton Window AC

17,200

LG LSA3QW2VFR1 1.0 Ton Split AC

20,000

LG LWA5HW3DD1 1.5 Ton Window AC

18,200

LG LSA3CW3VF1 1.0 Ton Split AC

21,000

LG LWA5VW3DT1 1.5 Ton Window AC

18,400

LG LSA3NF5VFC1 1.0 Ton Split AC

23,000

Average Price

19,8 00

Average Price

15,375

One can notice significant difference in the prices offered by LG & Voltas. Today s market is very sensitive to prices. The customers survey conduced reviles that nearly 30% of the customers buying decision is influenced by the price offered of a particular product. Also most of the multi brand dealers were of the opinion that there is not much product differentiation, almost all the features of all brands are alike the only thing setting them apart is the price .As a customer you would tend to choose a product which has all the features and also which is the lowest on price. Hence LG by offering such low prices has managed to capture the majority of the market share.

The pricing policy for dealers varies depending upon the number of units sold by a particular dealer in a stipulated period of time (usually 1 month.). Following is the Pricing & Incentives policy for dealers. Quantity 15-50 51-75 75-125 126-175 176-220 >220

Scheme 2% On basic To 2.5% On basic To 3% On basic To 3% On basic To 4% On basic To 5% On basic To

Quantity

Incentives

15-50 51-75 >75

500 on WAC & 750 on SAC 750 on WAC & 1000 on SAC 1000 on WAC & 1250 on SAC

As seen from the above table it is can be seen that while Voltas provides a minimum of 2% to dealers selling upto 50 units and a cash incentive of Rs. 500 on window AC & Rs. 750 on splits, while market leader LG provides its dealers with 8% incentives for the same & Rs. 500 on window AC & Rs. 750 on splits. Hence as a multi brand dealer one would tend to push for LG as compared to to any other brand as it would be a lot more profitable. In nearly all the multi brand dealers vested there primary preference was LG followed my either Voltas or Samsung. The best any brand can have is the word of

mouth preference that the dealers or the salespersons give to the customers as only what they push has the maximum chance of selling hence it would be vital for Voltas

to offer higher margins to its dealers if it wanted to be the primary brand spoken about my all dealers. It was also observed that Big s such as Vijay Sales, Croma, Reliance Digital, Kohinoor and Snehaanjali are offered products at nearly 22% less than small dealers. In such a scenario it would get extremely difficult for small dealers to compete with these giants. Example: An air conditioner sold to a small dealer for a price of Rs.25, 000 the same air conditioner would be sold to Vijay sales for 19,500. As a dealer there would be no ways in which you could compete with these big dealers as far as price is concerned eventually resulting in loosing out the customer.

Key Findings about Pricing:  Voltas air conditioner are priced nearly Rs.2000 to Rs. 3000 higher than LG.  The Incentives provided to small dealers is 5% less than that provided by LG

 Margins offered to big giants like Vijay Sales, Croma, Reliance Digital etc is far more than that offered to the small dealers .As a result small dealers would find it extremely difficult to compete with these heavy weights.  One would rather not prefer to be a dealer of Voltas and buy the products from these giants themselves at a lower price than what Voltas can offer them. Example: As a dealer, Voltas offers me an incentive of 2% on 50 units sold. I would rather purchase the products from Vijay sales at a lower price and sell it at a higher profit margin.  Spares too are a bit higher priced while comparing it to LG  Initial dealership fees of Rs 50, 000 needs to be paid to become an authorized dealer of Voltas.  Very low profit margins for dealers.  From time to time LG provides free installation for its customers.

Recommendations about Pricing 

Increase margins for all dealers.

 Along with dealership fees provided the dealer with a free Voltas Air conditioner. This would serve 2 benefits firstly the dealer will feel he s paying less as he s getting a free air conditioner so he will not feel the pinch of shelling out 50, 000 & secondly as a customer you tend to observe the air conditioner installed in the dealers shop, while making your purchase decision you observe a Voltas ac installed in the dealers shop this will tend to boost your buying decision & will give you confidence in your buying decision. This would act as a promotion as well.  Reduce the margins between the big & small dealers so that the small dealers have a good chance of competing with these giants.  Offer incentives to dealers to achieve set targets. Example: If a dealer meets his targets provided him/her with a free Ac or a cash incentive.  Reduce prices of Air conditioner to match LG.  Come up with Nano air conditioner for the lower middle class of people.  Offer interest free loans for purchasing an air conditioner which is already offered by LG.  A lot more should be spent on R & D activities and also on Advertising.  Payments by customers can be made in installments.  Free installation could be provided in off season.

Place

The logistics (Supply Chain Management) Visit to warehouse Logistics is the art and science of managing and controlling the flow of goods, energy, information, and other resources like products, services, and people, from the source of production to the marketplace. It is difficult to accomplish any marketing or manufacturing without logistical . It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible. Logistics Management is that part of the supply chain, which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.

5R’s of Logistic followed by Voltas: 1. Right Time 2. Right Place

3. Right Condition 4. Right Cost 5. Right Handling The Factory is located at Bhandup & Bhiwandi there are three types of Warehouse1. Mother Warehouse 2. Branch Warehouse 3. Spare part warehouse The mother warehouse is that where the products from the factory are kept and from that warehouse, the products are sent to the branch warehouse. A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They come equipped with loading docks to load and unload trucks; or sometimes are loaded directly from railways, airports, or seaports. They also often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks. 5S’s of warehouse, which Voltas strictly follows. 1. 2. 3. 4. 5.

Sweeping Sorting Systematic Arrangement Simplification Self- discipline

In warehouse, the products are pinup with 3-color paper to get the knowledge about the delivery. 1. Red Card – To stop the product going into market,

2. Green card – To allow the product for delivery in market, 3. Yellow Card – After the product labeled with green, allow this to move in market Distribution Time:• Local delivery

– 24 hrs

• Upcountry delivery – 48 hrs • Within 200 km.

– 24 hrs.

• Beyond 200 km.

– 48 hrs.

The above distribution time is the time of delivery of products from warehouse to the market place, which the logistic department follows to fulfill the demand in the market at right time. In Voltas, we have the following process, which is followed in logistic through ERP.  Order Processing  Invoicing  Indenting  Report Order Processing

booking for dealers /distributors

Invoicing

after billing process/bill generation

Indenting

requirement (Pdt Unit to branch unit)

Report

distributed to all

Findings about Place  It was found that Voltas had to go through a lot of nitigrity processes which are time consuming hence resulting in slow delivery.

 While LG manages to delivery its air conditioners in a1 days it was found that Voltas delivered its air conditioners in 2 to 3 days.  The installation of the air conditioner too was found to be on the slower side while comparing it to market leader LG.  The market penetration can be increased by having more number of dealers.  Only 2 warehouses in Mumbai.

Recommendations about Place  Make process short & simple to ensure quicker delivery of final product.  Improve the pace of installation at customers place.  Reduce the delivery time from 2 to 1 day.

 Decide on the best possible channel of distribution keeping in mind company’s value to its customers.  Developing operational excellence in sales forecasting, warehouse management, transportation management & material management.  Having more number of dealers to increase the market reach.  Having more number of warehouses at strategic locations could reduce the time lag.  Reducing the cost of logistics & ing on the benefit to the consumer.  To reduce octroi charges the movement could be directed via Goa as it’s an octroi free zone.

Promotion: Retailers communicate with customers through five vehicles  Advertising  Sales Promotion

 Publicity  Store Atmosphere &  Personal selling

Advertising: form of paid communication to customers using mass media like TV, Newspaper, and Radio. Here the ad spend is something that had to be very carefully planned. In the months preceding summers (April to June & October) the aggressive approach needs to be adopted, as the AC market in India is seasonal. The key here is to provide information to the customer when he is on the look out.. Its ad campaigns like “Jagmag Desh Mera” & “India ka dil… India ka AC” are emotional appeals to Indians. Voltas, the first company in India to manufacture an indigenous air-conditioner in 1954, was also the first to launch the split AC in 1982. Over five decades of operations, Voltas has introduced India to newer cooling technologies. That is why the India ka Dil, India ka AC campaign resonates so strongly with Indian consumers, appealing to their pride in the new emerging India. An Indian brand at heart, Voltas understands the needs and concerns of the consumer. To Indians, an AC is not just a cooling appliance; it is a device that enables them to provide care and comfort to those they love. While consumers are moved by this emotional plank, they are also aware that every Voltas product is ed by state-of- the-art technology, a robust after sales services network and the inherent assurance of being a Tata product. The appeal of Voltas lies in the values and emotions it stands for. The brand also implies dependability in delivering value through engineering and innovation. Value, according to Voltas, means providing the customer satisfaction in of performance, durability and cost. Like the Tata brand, Voltas too is being seen as a brand which effortlessly combines the traditional with the modern, a brand that has deep roots in India and a global outlook to take on the world. Sales promotion: Paid impersonal communication activity that offers incentive to customer to purchase a product like coupons, contests, discounts etc. in the bigger outlets like Vijay Sales there are invariably schemes offered on the purchases, which

include free tour packages, discount coupon schemes etc. which increase the footfalls in the showroom thus increasing the probability of sales. The showrooms that offer such schemes are of prime importance to the company as the awareness regarding such showrooms is very high amongst the customers. Publicity: Is communication through significant unpaid presentation about the retailer. For example the newspaper coverage of any special event conducted by the retailer. In newspapers like the Midday there are a lot of Ads give by the retailers for their showrooms along with the brands of AC, this also fetches important publicity to the AC companies. Store atmosphere: paid impersonal communication is combination of stores physical characteristics like signs, displays, color, lighting etc, which create an image about stores service, pricing, fashion ability of merchandise. This is one of the areas that we covered under our project. The figures for store atmosphere are- of the total 50 outlets for the Mumbai Region 22 had the POP Material for Voltas Air Conditioners. This figure is second after LG, which has a presence in 31outlets with its POP Material.

Personal selling: Is communication process in which sales people assist customers in satisfying their needs through face-to-face conversation. It is paid personal conversation. This as another head covered under the project. The Dealers/Salespeople at majority of the outlets speak highly of LG’s low price & good quality (21 outlets), as the most running brand (31 outlets) and good after sales (10 outlets). Whereas for Voltas the most spoken about positive features are good quality (19 outlets), and better electricity efficiency (20 outlets). Thus the positive from the outlets is almost the same but the difference creeps in when it comes to the negative features given by the Dealers/Salespersons Voltas has a problem as 25 outlets allover Mumbai claim it

to priced to high and 16 claim it to be poor on the after sales front. For LG the negative is very low as there are overall only 10 outlets claiming it too are on the quality. This is one of the major differentiating factors.

Communication methods Impersonal Advertising, Store atmosphere, Visual merchandising, Sales promotion Publicity

Personal Personal selling

Paid

Word of mouth

Unpaid

Comparison of Communication Methods: Paid Impersonal: Control Advertising

Flexibility

Credibility

Cost

Sales promotion Sales atmosphere

Paid Personal: Control

Flexibility

Credibility

Cost

Unpaid Impersonal: Control Publicity

Flexibility

Credibility

Cost

Flexibility

Credibility

Cost

Personal selling

Unpaid Personal: Control Word of mouth High

High to Moderate

Moderate to Low

Moderate

Low

Control: Retailers have more control when using paid versus unpaid methods. When using advertising, Sales promotions, and Stores atmosphere retailers determine messages, content and time of delivery. But because each salesman can deliver different messages, retailers have less control over content/timing of publicity and word of mouth. Since unpaid communication is not designed and delivered by retailer one can communicate both favorable and unfavorable information. The showroom atmosphere along with the word of mouth is the perfect combination when it comes to wining the customer’s confidence. The perfect example could be of LG’s, there were 11 outlets that had the dealer certificates for the brand claiming it to be the number 1 brand in India and invariably these outlets pushed LG to the

customers (overall LG is the most preferred brand at 21outlets and one of the top three most preferred brands at a staggering 36 outlets. With such kind of bombardment more customers are expected to turn to LG rather than away from it. Flexibility: Personal selling most flexible because sales people can talk and cover customer specific needs and develop unique presentation. Other communication method less flexible E.g.: ments convey the same message to all customers. In all there area lot of dealers that claim that Voltas’s electricity efficiency will see to it that the difference in the price (over LG) will be recovered in about a year’s time. Such a push will lure the customers who want to buy a cheaper AC to buying Voltas.

Credibility: Because publicity and word of mouth are communicated by independent sources, Information is more credible than in paid communication sources. The word of mouth is the best publicity for the brand. Cost: publicity and word of mouth are unpaid communication methods

Communication elements and consumers decision making process Awareness Knowledge

Signs Advertising Publicity

Favorable Attitude

Sales people Image advertising (shop) Store Atmosphere

Visit Store Repeat Visits

Sales Promotion POP Displays Positional Advertising Personal Selling / Sales Promotion POP Displays /Positional Advertising Personal Selling The above figure shows which communication methods most effective at various stages in the decision are making process. For egg: for creating awareness/knowledge Signs, Advertising, and Publicity are very important.

Continuous Patronage and loyalty/repeat visits are developed through communication directed at positioning the store and through service provided by Sales people. Favorable attitude and visiting the store is very important from the sales point of view these 2 factors are dependent on the dealer preference, image of the shop, the atmosphere inside the shop, sales promotion carried out by the dealer, and the effective use of the POP material by the dealer is very important In the overall analysis we found that the dealer preference for LG was the most, in 21 outlets out of 50 LG was the top brand while in 36 outlets it figured among the top three brands. Voltas was the top brand in 14 outlets while in 29 outlets it figured among the top three brands.

In the use of POP material again LG was the top brand, 21 outlets made proper use of the POP material for LG out of 50, while for Voltas 11 outlets made use of the POP material provided by the company.

Steps between evaluation of Alternatives & a Purchase decision Attitudes of others

Evaluation of Alternatives

Purchase decision

Purchase Intention Unanticipated Situational Factors

Here the customer typically goes through all the brands offered by the dealer in the market definitely with the intention of purchasing one of them. He evaluates each brand on the basis of the information provided in the leaflet and then on the response given by the dealer. Price is one factor, which weighs heavily in the favor of a particular brand. Here LG scores highly and Voltas gets negative from the dealers. After deciding on a particular product there is a very rare chance that the customer will backtrack from the purchase of that particular brand until and unless he comes across some negative regarding the brand or the company? For e.g.: in the case of LG bad service and low durability are the major negative factors which a customer would often come across while looking for ACs. Word of mouth spreads very fast and travels even faster when the news is bad; hence it

becomes very important for the company to create a goodwill and trust among the consumers as well as the dealers.

Successive steps involved in preferences given by the dealer Total set

Voltas LG Hitachi Samsung Carrier Videocon Whirlpool Onida OG National

Awareness set

Consideration set

Choice set

Decision

Voltas LG Hitachi Samsung Carrier OG

Voltas LG Samsung Carrier

Voltas LG Samsung

?

Key Findings about Promotion  A lot of dealers as well as customers could not recollect a Voltas Ad.  The emotional appeal does not really make the customers buy a product.  A lot of customers did not know that Voltas is a TATA product hence.  20% of customers interviewed said LG was there favorite Air conditioner ad followed by Hitachi at 16%.  In 2008 Rs 1250.76 lakhs was spent towards ment expenditure which is substantially less when you compare it to LG.  Other forms of media too are now being used by Voltas to like Radio, Print ads, Hoardings etc this was not done enough earlier.  It was found that in most of the multi brand dealers the branding of the dealers shops were done by LG.

 In nearly all the LG dealers a certificated of dealership was given to dealers which also stated that LG is the Number 1 brand in air conditioners.  It was also found that LG organized exhibitions to showcase its products which Voltas does not do.  LG also provided free installation as a promotional strategy.  LG also throws parties to its dealers every year also LG sends its dealers for paid holidays on achieving of set targets.  Customers also felt that the ad campaigned “India ka dil….India ka AC” did not stand out in the ad.

Recommendations about Promotion  Highlight brand TATA in the ads.  Spend a lot more on outdoor advertising.  Appointed Voltas salesmen in popular showrooms like Vijay Sales, Sumaria etc. to not only promote the brand but also to push for sales.  Use celebrities to promote the brand.  Sponsor important events like T20 World Cup, Popular television serials etc.  Set up kiosks outside shops to promote the brand.  Provided inept training to dealers about product specifications.  Branding of dealers shops & proving them dealership certificated which can be displayed..

 Providing dealers with rewards & recognitions for achieving targets.  a lot more aggressively during summers.  Highlight the power saving feature also make s aware about star ratings.  Use the advantage of being the pioneer in Indian air conditioner.  Come up with attractive schemes like free installation, scratch card, free trips, etc.  Come up with full page ads in newspapers, leaflets in popular newspaper.  Product awareness needs to be increased further.  Install a Voltas AC at dealer’s shops as a customer tends to notice the air conditioner used by the dealer.

Dealers Questionnaire Product 1) Which air conditioner according to you offers the best features?

a) Voltas g) Godrej

b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star h) General i) Others

2) On a scale of 1 To 5, how would you rate Voltas Air conditioners on the basis

of design? a )1 b) 2

c) 3

d) 4

e) 5

3) How would you rate Voltas Air conditioners in of performance Vis a

Vis competition? a) Low b) Average

c) High

b) Superior

4) What is your take on the after sales service provided by Voltas compared to

other Brands? a) Excellent b) Very Good c) Good

d)Average

e) Poor

5) In selling situations, which particular aspect of Voltas Air conditioner offers

leverage over other brands? a) Features b) Brand Name c) Design

d) Price

e)Others

6) Why according to you, is LG the market leader in Air conditioners?

a) Better design b) Better technology used c) Lower Prices d) Brand Name e) Better Service provided f) More durability 7) Which Air conditioner is the most Durable?

a) Voltas g) Godrej

b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star h) General i) Others

8) Are you aware in advance about the new products which are going to be launched by Voltas? a)Yes b)No 9) What complaints do you most often face from customers?

a) Poor after sales service

b) Goods Received in damaged condition

c) Availability of spare parts

d) Others

Price 1) How do u find the pricing of Voltas Air Conditioners compared to

other brands? a)Competent

b) High

c) Low

d) Average

2) Which brand according to you offers full value for money?

a) Voltas g) Godrej

b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star h) General i) Others

3) How much of your business volume is ed for by Voltas

Products? a) Less than 10% b) 11% -25% c) 26%-50% d) 50% And more 4) How much of your business profits is ed for by Voltas

Products? a) Less than 10% b) 11% -25% c) 26%-50% d) 50% And more

5) Does the pricing of Voltas Air conditioners offer enough range to

different classes a) Yes

of customers b) No

5) What are your payment ?

a)Full on delivery b) Full advance c) Part advance & Part on delivery d) Full credit

7) Which Air conditioning Brand offers you maximum discount & return on investments (Highest profit)? a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star g) Godrej h) General i) Others 8) Do you as a dealer get some additional benefit for promoting a particular brand? a) Yes

b) No

c) Would not like to reveal

Place 1) What is the delivery system adopted by Voltas compared to other

brands? a) Delivery via intermediaries b) Direct delivery from factory/warehouse

c) Pick up

2) Are you happy with the delivery System of Voltas?

a) Yes

b) No

3) Have you ever faced stock out for Voltas Products?

a) Yes

b) No

4) In case of any damaged products, are you happy with the process

of returning back the products to Company? a) Yes b) No 5) Why don’t you display more of Voltas Products?

a) Limited Demand b) Space Problem c) Low profits b) More demand for competitors products 6) What is the average number of days taken by Voltas to deliver the

Air Conditioner? a)12 hours b) 1 Day

c) 2 Days d) 3 days

e) 4 Days

Promotion 1) Which is your favorite Air conditioner Ad? a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star g) Godrej h) General i) Others 2) Which company’s name comes to your mind First when one says Air Conditioners? a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star g) Godrej h) General i) Others 3) How effective is Voltas Air conditioner ad compared to other brands? a) Very Effective b) Effective c) Not effective d) Cant Recollect Voltas Ad

4) How effective are Voltas Ads in drawing out customers? a) Very Effective b) Effective c) Not Effective d) Ads have no effect on sales of brand 5) On a scale of 1 to 5 how would you rate Voltas ads? a) 1 b) 2 c) 3 d)4 e) 5 6) Any suggestions for Voltas top management?

Thank You For Taking The Survey.

Customers Questionnaire 1) How do you perceive Air conditioners today?

a) Luxury

b) Necessity

c) Can do without

2) Do you own an Air conditioner?

a) Yes

b) No

3) If Yes Which Brand?

a) Voltas g) Godrej

b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star h) General i) Others

4) Which brand according to you offers best features?

a) Voltas g) Godrej

b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star h) General i) Others

5) While purchasing an Air conditioner what particular aspect do

you give highest weighted to? a) Features b) Price c) Brand Name

d) Design

e) Durability

6) Which is the most trusted brand of Air conditioner according to

you? a) Voltas g) Godrej

b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star h) General i) Others

7) According to you which Air conditioner offers full value for

money? a) Voltas g) Godrej

b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star h) General i) Others

8) Which is your favorite Air conditioner Ad?

a) Voltas g) Godrej

b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star h) General i) Others

9) Which company’s name comes to your mind First when one says

Air Conditioners? a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star g) Godrej h) General i) Others 10) Have you seen Voltas Ad?

a) Yes

b) No

11) What message is tried to be put across by the ad?

a) b) c) d)

Voltas Air conditioners save electricity Voltas is the pioneer in Air conditioners Voltas is the most trusted brand of Air conditioners Not seen the ads

12) How effective are Voltas Ads in drawing out customers?

a) Very Effective b) Effective c) Not Effective d) Ads have no effect on sales of brand 13) Any Suggestions for Voltas Top Management?

Thank You For Taking The Survey

Results Product 1) Which air conditioner according to you offers the best features? a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star g) Godrej h) General i) Others

2) On a scale of 1 To 5, how would you rate Voltas Air conditioners on the basis of design? a )1 b) 2 c) 3 d) 4 e) 5

3) How would you rate Voltas Air conditioners in of performance Vis a Vis competition? a) Low b) Average c) High b) Superior

4) What is your take on the after sales service provided by Voltas compared to other Brands? a) Excellent b) Very Good c) Good d)Average e) Poor

5) In selling situations, which particular aspect of Voltas Air conditioner offers leverage over other brands? a) Features b) Brand Name c) Design d) Price e)Others

6) Why according to you, is LG the market leader in Air conditioners? a) Better design b) Better technology used c) Lower Prices d) Brand Name e) Better Service provided f) More durability

7) Which Air conditioner is the most durable? a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star g) Godrej h) General i) Others

8) Are you aware in advance about the new products which are going to be launched by Voltas? a) Yes b) No

9) What complaints do you most often face from customers? a) Poor after sales service b) Goods Received in damaged condition c) Availability of spare parts d) others

Price 1) How do u find the pricing of Voltas Air Conditioners compared to other brands? a) Competent b) High c) Low d) Average

2) Which brand according to you offers full value for money? a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star g) Godrej h) General i) Others

3) How much of your business volume is ed for by Voltas Products? a) Less than 10% b) 11% -25% c) 26%-50% d) 50% and more

4) How much of your business profits is ed for by Voltas Products? a) Less than 10% b) 11% -25% c) 26%-50% d) 50% and more

5) Does the pricing of Voltas Air conditioners offer enough range to different

classes a) Yes

of customers? b) No

6) What are your payment ? a) Full on delivery b) Full advance c) Part advance & Part on delivery d) Full credit

7) Which Air conditioning Brand offers you maximum discount & return on investments (Highest profit)? a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star g) Godrej h) General i) Others

8) Do you as a dealer get some additional benefit for promoting a brand? a) Yes b) No

particular

Place 1) What is the delivery system adopted by Voltas compared to other brands? a) Delivery via intermediaries b) Direct delivery c) Pick up from factory/warehouse

Conclusion

From above Literature review and findings we can say that Voltas needs to redesign its marketing strategies and improve its after sales services and also a slight revision it’s pricing strategy for dealers in order to make a success in India .If Voltas improves the services & incentive scheme for dealers, then there are good chances of a grand success, as the Indian air conditioner market is growing very fast. So Voltas has two options: 1. Improve the marketing strategies i.e. advertising & after sales service. This could certainly help Voltas to penetrate the tough Indian market and to increase the market share. 2. Revamp the incentive schemes for dealers & distributors so that they push brand Voltas instead of any other brand. Finally we can conclude that the success (or Sales) of Voltas AC is dependent on after sales service & incentives provided to dealers as they are the ones who push your brand. Indian customers won’t buy it just because it is their brand; but they expect value for money and satisfaction.