allied voltas pdf
TRANSCRIPT
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Summer Training Project On
A Study on Brand Management and Market Penetration Strategies atUltraTech Cement Limited Building Products Division
(Dry Mix Products)
Submitted To
ANJUMAN I ISLAMs ALLANA INSTITUTE OF MANAGEMENT STUDIES
Required For Partial Fulfillment of M.M.S. Program
By
Khan Fahad Abdul Baqi
DIV B
Roll No 16
Under The Guidance Of
Mr. Abdul Majid
Managing Director
Allied Engineering Services
&
Under The Mentorship Of
Afreen Sayed
For The Academic Year
20122013
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ACKNOWLEDGEMENT
First of all I would like to express my sincere gratitude to Allah- The most Gracious most
merciful for his kindness towards humanity .
I wish to place on record my sincere gratitude towards Allied Engineering Consultancy for
providing me an opportunity to take up this project and giving a platform to experience the
intense corporate culture.
I further take this opportunity to thank Mr. Majid (Managing Director) my project guide in
particular as the guiding source of light in this vast journey of learning experience while doing
the project that really made me learn the real application and management principles of theproject.
I would also like to acknowledge my director at Anjuman Islams Allana Institute of
Management studies Dr. Lukman Patel for his timely and valuable advice on project related
issues, helping me extract the most out of my summer internship program.
I also want to thank the entire staff at Allied Engineering Services for taking the time to share
their expertise and knowledge of the field. The staff was most responsive to my quiries and
always made me feel like a full-time member of the group.
The project has given me the opportunity to understand the practical nuances of sales &
marketing, explore ways to effectively craft and communicate a message.
My time at Allied Engineering Consultancy has been a thorough professional experience of the
highest caliber and I will always remember it asAllied Engineering Consultancy: A Learning
Curve
KHAN FAHAD ABDUL BAQI
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INDEX
Sr. No Topic Covered Page No.
1 Executive Summary 1
2 Introduction 2-3
3 Company Profile: Allied Engineering Consultancy 4-17
4 Background of the study, Objective, Scope & Methodology 18-19
5 Company Profile: Voltas 20-32
8 Consumer Questionnaire 34-37
9 Data Analysis and findings Consumers 34-44
10 Distributor Questionnaire 45-46
11 Data Analysis and findings Distributors 47-49
12 SWOT Analysis 50
13 Marketing Analysis 51-57
14 Marketing Strategy 58-62
15 Marketing Mix 63
16 Market Potential 64
17 Limitations of the project & Recommendations 65
18 Conclusion 66
19 Bibliography 67
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Executive Summary
To provide a reliable, personal and professional service to all our customers with the emphasis on
quality and value for money. We strive to deliver to our clients environmentally safe and
responsible engineered systems that will benefit to all . Our solutions will provide both comfort
and energy efficiency and we are dedicated to improving the quality of life while sustaining the
quality of our earth.
Established in 1996, we has evolved to provide a high level of professionalism, allied to ever
increasing standards of engineering. Our blend of workforce from various fields in the building
services industry enables the company to provide a wide range of services to any client.
Our increasing portfolio of clients have come to rely on the personal touch every project is given,
which creates a team capable of ensuring high standards of quality, completion on time, to a
budget and in a safe manner. We specialize in the design and installation of all air conditioning
systems from single split systems in a domestic capacity, through to server farm data centres
utilizing close control systems and main chiller installations serving complete office buildings.
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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 I 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, accounting 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 marketshare 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
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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.
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Company Profile
ALLIED ENGINEERING CONSULTANCY
ALLIED ENGINEERING CONSULTANCY. is a professionally run engineering
Company. AES was incepted in January 1996 by Mr. Abdul Majeed Nawab , a B.Tech
Engineering from Dr.Babasaheb Ambedkar Polytechnic Raigad ,& achieved GOLD MEDAL
given by Dr. P.C. ALEXANDER the Governor of Maharashtra. He worked with TATA
VOLTAS ; which is known one of the leading air conditioner company, as Sales & Marketing
Manager for ten Years, marketing Heavy air conditioning plants and Material Handling
Equipments to the emerging infrastructure ,trade centers educational institutes and multi storeys
as well as residential in India
AES has business set up for marketing engineering products, directly as well as through Channel
partners, throughout India. Qualified professionals & Engineers are part of the team to provide
Engineering solutions & support to our clients.
Our Work philosophy is to provide better & efficient services to all our customers and we
believe in being the important partner in their long term growth.
ALLIED ENGINEERING CONSULTANCY
Core Values
Responsibility: We seek and accept personal responsibility for our actions and results. We
keep promises and commitments made to others. We are responsible for ensuring that quality
is built into everything we do. We take pride in providing outstanding customer service. We
are committed to fostering an environment where every employee understands and accepts
responsibility for upholding and reinforcing our values.
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Integrity: People want to do business with us because we are true to our word and we keep
our promises. Integrity is the heart of who we are and what we do. We are each personally
accountable for the highest standards of ethics. We will fulfill our commitments as
responsible citizens and employees. We will consistently treat customers and company
resources with the respect each deserves.
Teamwork: We are one company; one team. We promote and support a diverse, unified
team. We believe that succeeding together is as important as succeeding independently. The
most important job of any manager is to develop people to become experts and leaders. This
is how we build strong teams. As one company,AES impact is far greater than the impact of
any one of its parts. We will work together to build relationships that create ever-greater
value for the customers and communities we serve.
Excellence: We strive to do our best in everything we do. We value the talent, ambition, and
drive of each employee to perform their best, striving to achieve superior results. We are
committed to creating an environment where everyone pursues the highest possible level of
performance. No barrier impedes us from performing to the best of our abilities. We will
strive to continually improve our processes, technology and solutions for the benefit of our
customers.
Respect: We treat others with the highest degree of fairness, dignity, equality and trust. We
honor the rights and beliefs of our fellow employees, our customers, our teammates and our
community. We value our differences and diverse opinions, which helps us to learn from
each other. We provide honest, constructive, and discrete feedback when and where it's
needed.
Honesty: We are uncompromising with the truth. We are committed to being truthful,
trustworthy and honorable in all of our dealings with our each other, our customers,
teammates, suppliers and competitors. We respect and adhere to all of the laws and
regulations that govern our business practices.
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Innovation: We are driven by a desire to continually learn, improve, and grow. We are
creative in delivering value to our employees, customers, teammates and community. We use
our collective experience and knowledge to identify and shape meaningful improvement to
our services, programs, processes, operations, and business model to create new value for
AES.
Innovation is part of our learning culture. We thrive on innovation, so that we can deliver
solutions to our customers that make their work easier, more efficient, and more cost
effective.
Passion: We show pride, enthusiasm and dedication in everything that we do. We are
committed to selling and delivering high-quality products and services. We are passionate
about what we do; about meeting our customers' expectations, about creating new sales
services and improvements, about working with partners for mutual benefit and aboutcontributing in a positive way to the world around us. As a leader, you must envision the
future, passionately believe that you can make a difference, and inspire people to achieve
more than they may have dreamed possible. You will create a sense of identity and spirit
which will spread through your team. There is no better motivator than a shared passion.
Vision Statement
The vision is to be a trusted, respected, and dynamic technical services provider sought out
by customers, partners, and employees.
Mission Statement
The mission is to understand and provide Maintenance, Modernization, Logistics,
Engineering, IT, and offering solutions for the evolving customers. Our expert team
members take personal responsibility in providing quality services and solutions to
maximize value for customers, partners, and employees.
AES is: "Quality People Providing Quality Service"
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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:
Electro-Mechanical Projects Services
Engineering products Services
Unitary Cooling Product
Electro-Mechanical Projects & Services
Electrical, Mechanical, HVAC & Refrigeration
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
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Maintenance, repair, and operations
(MRO) or maintenance, repair, and overhaul involves fixing any sort of mechanical
or electricaldevice should it become out of order or broken (known as repair, unscheduled,
or casualty maintenance). It also includes performing routine actions which keep the device in
working order (known as scheduled maintenance) or prevent trouble from arising (preventive
maintenance).
MRO may be defined as, "All actions which have the objective of retaining or restoring an
item in or to a state in which it can perform its required function. The actions include the
combination of all technical and corresponding administrative, managerial, and supervision
actions."
MRO operations can be categorised by whether the product remains the property of the
customer, i.e. a service is being offered, or whether the product is bought by the reprocessing
organisation and sold to any customer wishing to make the purchase. In the former case it
may be a back shop operation within a larger organization or smaller operation.
The former of these represents a closed loop supply chain and usually has the scope of
maintenance, repair or overhaul of the product. The latter of the categorizations is an open
loop supply chain and is typified by refurbishment and remanufacture. The main
characteristic of the closed loop system is that the demand for a product is matched with the
supply of a used product. Neglecting asset write-offs and exceptional activities the total
population of the product between the customer and the service provider remains constant.
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Maintenance types
Generally there are three types of maintenance in use:
o Preventive maintenance, where equipment is maintained before break down occurs. This
type of maintenance has many different variations and is subject of various researches to
determine best and most efficient way to maintain equipment. Recent studies have shown that
Preventive maintenance is effective in preventing age related failures of the equipment. For
random failure patterns which amount to 80% of the failure patterns, condition monitoring
proves to be effective.
o Corrective maintenance, where equipment is maintained after break down. This
maintenance is often most expensive because worn equipment can damage other parts and
cause multiple damages.
o Reliability centered maintenance, often known as RCM, is a process to ensure that assets
continue to do what their users require in their present operating context.
Preventive maintenance
Preventive maintenance is maintenance performed in an attempt to avoid failures,
unnecessary production loss and safety violations.
The effectiveness of a preventive maintenance schedule depends on the RCM analysis which
it was based on, and the ground rules used for cost-effectivity.
Corrective maintenance
Corrective maintenance is probably the most commonly used approach, but it is easy to see its
limitations. When equipment fails, it often leads to downtime in production. In most cases,
this is costly business. Also, if the equipment needs to be replaced, the cost of replacing it
alone can be substantial. It is also important to consider health, safety and environment (HSE)
issues related to malfunctioning equipment.
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Corrective maintenance can be defined as the maintenance which is required when an item
has failed or worn out, to bring it back to working order.
Corrective maintenance is carried out on all items where the consequences of failure or
wearing out are not significant and the cost of this maintenance is much greater than
preventive maintenance.
Reliability centered maintenance
Reliability centered maintenance is an engineering framework that enables the definition of a
complete maintenance regime.
It regards maintenance as the means to maintain the functions a user may require of
machinery in a defined operating context. As a discipline it enables machinery stakeholders to
monitor, assess, predict and generally understand the working of their physical assets. This is
embodied in the initial part of the RCM process which is to identify the operating context of
the machinery, and write a Failure Mode Effects and Criticality Analysis .
The second part of the analysis is to apply the "RCM logic", which helps determine the
appropriate maintenance tasks for the identified failure modes . Once the logic is complete for
all elements , the resulting list of maintenance is "packaged", so that the periodicities of the
tasks are rationalised to be called up in work packages; it is important not to destroy the
applicability of maintenance in this phase.
Lastly, RCM is kept live throughout the "in-service" life of machinery, where the
effectiveness of the maintenance is kept under constant review and adjusted in light of the
experience gained.
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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 an 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 an 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:1.Room side close cycle
2.Outdoor open cycle
3.The Refrigerant cycle
The 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.
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The refrigerant 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.
Type of Air-Conditioners:
Window AC
Window AC is the most compact, versatile and cheapest air-conditioning system. It has the
advantage of using single motor for both compressor and cooling side. It also takes motor
for both compressor and cooling side. It also takes into advantage of the usage of humidity,
which is absorbed, from cooling sides to lower temperature of condensing side.
Split A.C.
It is the most versatile and cheapest air-conditioning system where window ACs cannot be
provided. It has the advantage of cooling any place irrespective of its location and just
need a passage three inch in diameter so as to connect both sides of split AC. In split AC
area covered is higher than the windowAC.
Package A.C.
It is used for larger areas where the tonnage is higher (approx.3.0 tonne-15 tonnes). It
consumes less power.
Central A.C.It is used for cooling the area where the tonnage required is more than 50 tons. Though the
capital cost is higher but the running cost is very economical. In central air conditioning a
final air-conditioning is done through cold/hot water running through tubes.
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Product Range
Allied Engineering Services offers 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 ACs
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 torevolutionize this market, and has captured a significant market share in the few months
after launch.
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DUCTED SPLIT AC
Ducted Split Air conditioners from India'sNo. 1 central air-conditioning company bring to
offices, banks, software development centers, hospitals, hotels,restaurants and showrooms
a new concept of comfort cooling. Advantages 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 ACS
Blue Star, India's leading central air-conditioning company, presents a state-of-the-artrange of Split Air conditioners.Deluxe Hi - Wall SplitThe 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.
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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, 4tons. 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
You and your interior designer have taken enormous care to create great looking interiors.
You want to conceal the air conditioner so that a neat central air-conditioning look is
maintained. Enter the Blue Star Concealed Split. A powerful machine that believes in
efficiently working behind the scenes. Apart from impeccable cooling, a Concealed Split isa big bonus when wall and floorspace is not available. Its the sleekest 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 inair-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.
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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. Botht hese models are fitted with Mitsubishi compressors forvirtually 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 REMOTEMODEL
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.
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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.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 atVoltass 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.
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BACKGROUND OF STUDY
This study has been done as part of the project work for Marketing Management II course.
The study is majorly focused on developing a sound understanding of various aspects of
Marketing Management. For this we have taken up one of the leading Air Conditioner Brand -
Voltas.
The reason why we chose this particular company in specific is that
Voltas is closely related to one of the oldest Indian Industry, Tata
Air Conditioner market is having huge demand in India
Voltas has launched products for different customer segments
Objective:-
As part ofthis project, we will be concentrating our analysis on the following focal points
1. Study Customer Behaviour Understanding the factors responsible for customer buyingbehavior.
2. Marketing Strategy ofVoltas Understanding the Marketing plan of Voltas.
3. Analysis of Market Share ofVoltasTo study and analyze the annual and financial
growth reports of Voltas Co.
4. Study ofCustomerSegmentation To study the products of Voltas with respect to the
Segmentation of Customer over Family Size, Income, Price, Features etc.
5. Study of Product Differentiation Variants of Products offered by Voltas Co.6. Competition faced by Voltas Analysis of the domestic competitors for Voltas.
7. ExternalEnvironment ofVoltas Analysis of the Air Conditioner Industry.
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We intend to run a customer survey, to find out the customer and distributor perception about
Voltas.
Scope:-
As part of this project we have limited ourselves to study the marketing strategy of Voltas
Air Conditioners only. We have studied the different brands of AC products being produced
by Voltas.
For this we have done a consumer survey within the domestic boundary of our
college students and friends and families outside.
Methodology
The sources used for our study are as follows:
Primary data
A consumer survey was conducted with the help of questionnaires across our colleagues
within the campus and friends and family members.
A set of questionnaire survey was done with the Distributors and local retailers of ACs
Secondary data
We have referred to magazines and similar resources at our library to collect various
data
We have referred to the home page of Voltas for current information on products
and financial report
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DESCRIPTION OF CURRENT SITUATION:-
Company Profile Voltas
Voltas is among India's leading air-conditioning, refrigeration and engineering
services companies. Set up in 1954, its core competencies lie in air conditioning and
cooling appliances and services. Voltas is India's largest supplier of engineering
products and services for the textile machinery sector and is a major manufacturer of
forklift trucks. It provides solutions in turnkey pumping projects for water, effluent
and sewage treatment, and water pollution control. The company has ISO 9001-2000
certification and has executed projects in the Middle East, Southeast Asia, Central
Asia, Africa and Europe. 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 since1851, 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
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for 'manufacture only' alliances producing low cost, high quality refrigerators and room air
conditioners.
The companys 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 2001-2002, comprised of redefining the business focus of
Voltas as being an engineering.
The company mainly operates in the following areas:
Heating, ventilation and air-conditioning (HVAC) solutions: Includes the entire range
of mechanical, electrical and plumbing services for a diverse range of applications,
spanning office complexes, airports, malls, mercantile ships, atomic energy plants, IT
parks, hospitals, etc.
Cooling appliances: Design, manufacture and marketing of a range of air conditioners
and water coolers for household and institutional use
Engineering products and services: Design, sourcing, installation, training,
maintenance, etc of engineering products and services in the fields of textile
machinery, machine tools, mining and construction equipment and materials handling
equipment.
Chemicals: Import and distribution of an array of industrial, specialty and
pharmaceutical chemicals, industrial plastics and bulk drugs. The company also
exports gelatine, ultramarine blue and agrochemicals.
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JOINT VENTURES, SUBSIDIARIES, ASSOCIATES
Voltas's subsidiaries include Metrovol FZE, VIL Overseas Enterprises BV, Voice Antilles
NV, Weathermaker, Jebel Ali (Dubai), Simto Investment Company and Auto Aircon
(India).
LOCATION
Voltas has its head office in Mumbai and regional offices in several major cities in India.
Its overseas offices are in Abu Dhabi (UAE), Hong Kong and Singapore. The company
has factories at Thane (Maharashtra) and Pantnagar (Uttarakhand) in India.
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Air Conditioner Industry
Thanks to the fabled Indian middle-class, the air-conditioner market is hooting up. An
inordinately hot summer has convinced the people the comfort of an air-conditioner and a
large number appears to have decided to take one home this year. Indeed, in the last few
the years, the demand for air-conditioners from the household sector has been growing
rapidly. Still, the demand growth is particularly noticeable, and was also the most
significant change in the industry during this period.
According to some industry estimates, growth in volume terms has been 45-50 per cent
this fiscal. But official statistics underestimate this and even report a decline in production.
Nevertheless, by all accounts, including a study by the Confederation of Indian Industry
(CII), there has been a noticeable jump in the demand for air-conditioners from the
household segment. After several years of relatively modest growth, which was totally at
variance with the latent potential of the product, the sharp growth in demand the summer
past was very welcome for air-conditioner companies in many respects. One, it relatively
reduced their dependence on the corporate sector which is still the major demand driver.
Corporate traditionally accounted for about 60 per cent of the total demand for air-
conditioners. But the burgeoning demand from the household segment could level the ratioin the near future
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One of the significant factors influencing the fortunes of the industry is the taxation
structure. The industry has come a long way from the time when the excise duty structure
favored only the unorganized sector. The steady fall in the excise rate in the 1990s helped
the organized sector cope with the competition from the unorganized sector on more
favorable terms. Still, the unorganized sector continues to meet a sizeable proportion of
the demand for non-ducted products.
There was a significant change in the excise duty structure in 2000. The rate was raised
from 30 per cent to 32 per cent and this was expected to adversely impact the industry.
However, the shift to a maximum retail price based system for the levy of excise appears to
have helped the manufacturers. In the MRP-based system, an abatement of around 40 per
cent was provided. This ensured that the impact of the increase in excise was minimal if not
positive. Another major fiscal change is the removal of quantitative restrictions on imports.
Imports are, however, not all that competitive considering the Customs duty structure. An
import duty of 44 per cent along with a countervailing duty, which is equivalent to the
excise duty, is a large enough protection for the domestic companies.
Growth of AC market
The demand for non-ducted products grew steadily in the latter half of the 1990s. The
demand for mini-splits has grown at a higher rate compared to window ACs because of the
lower base. The demand switch from mid-sized ducted products, such as packaged ACs or
ducted splits, to mini-splits is also one of the reasons for the larger growth rates in the
latter segment.
Another major reason for the growth in demand was the increased attention this product
category has attracted in the recent past. Prices of air-conditioners dropped sharply in the
past few years because of competition. Most established players upgraded their
manufacturing facilities, while fresh capacities were created by companies such as
Matsushita (National brand). The marketing and advertisement spend by companies has
also been on the rise.
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With such investments flowing into building both the product and the brand, the expansion
of the market was inevitable. As seen with other consumer durables, in the initial years of
increased intensity of competition, both existing and new players invest more cash. This
leads to a drop in prices, fuelling demand and the result is a much larger market. And thenon-ducted segment has attracted a lot of players in the last few years. The latent long-
term demand potential from Indian households has led to a number of multinational
companies making a beeline to set up base in the country.
Major players in this product category are Carrier Aircon, Voltas and Blue Star. Brands
such as Hitachi, Videocon and Godrej also have a sizeable presence. Among the recent
entrants, the Korean brands such as Samsung and LG have been able to make an
immediate impact. Other brands that have positioned themselves for a share in this fast-
growing market are National, Fuji General and Daikin. On a much smaller scale,
Whirlpool and Electrolux have entered the market to cater to household demand.
Initially, the entry of new players did have an adverse impact on the established players --
especially Voltas and Carrier Aircon. The reduced sales of window ACs by Carrier Aircon
and Voltas in 1999-2000 compared to 1998-99 is testimony to the adverse impact caused
by the entry of the new brands, especially Samsung and LG. However, since the beginning
of 2000-01, it does appear that the established players -- Carrier Aircon and Voltas -- have
started to hit back. They may have even picked up some of the market shares they lost in
the earlier period. Again, initially, margins of established companies suffered as larger
outlays in selling and distribution failed to translate into superior sales growth. The trend
now appears to have been reversed.
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Major Competitors
Voltas Air conditioners faces fierce competition with the following brands of air conditioners
i. LG
ii. Samsung
iii. Videocon
iv. Hitachi
v. Carrier
vi. Whirlpool
Operational sector
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.
Types of Air Conditioners offered by Voltas:
Now when we talk of air conditioners, there are a number of makes and models available inthe market. So as to say that there is a variety of sizes and types of ACs 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
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the market, it is very difficult to choose the most suitable AC for our home or office. And if
we dont 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, 000on 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 ACs, as during the operation, it doesnt make any noise which
might distract your attention or annoy you. Split ACs 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 neighbours.
3) Cassette Air Conditioner:
These are air conditioners that are usually fixed into the sealing. This ultrathin 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) Slim line 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.
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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. Ductables comes indifferent
tonnages depending upon the space needed to be cooled. The prices of ductables vary
depending upon the tonn age. 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.
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SELECTION OF SAMPLES AND DATA COLLECTION
SAMPLING METHOD
Random Sampling method
SAMPLE SIZE
50 Customers & 5 Dealer/Distributors
RESEARCHTOOL
Questionnaires
RESEARCH AREA
We have taken response from consumers using a set of questionnaire. Our target responderswere our colleagues, friends and family members.
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The following are the set of questions which we used for extracting information from theresponders.
CustomerResponse for VoltasAir conditioners
This set ofquestions are used for academic project to study the Voltas Air conditionerMarket
* Required
What is your age group? *
15 - 25
26 - 35
36 - 50
above 50
How many members are there in your household?
less than 3
3 - 6
6 - 9
more than 9
What is your family AnnualIncomeScale?
less than 5 lac
5 lac - 10 lac
10 lac - 20 lac
more than 20 lac
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How many AC's do you have in your household?
0 - 1
2 - 4
4 - 6
more than 6
Which Brand(s) ofAC do you have? Ifyou have given 1 or more in previous response
Voltas LG
Samsung
Hitachi
Videocon
Whirlpool
Other:
Which brand ofAC have you recentlypurchased
Voltas LG
Samsung
Hitachi
Videocon
Whirlpool
Other:
What are the factors for selecting a Brand
BrandPopularity
Advertisement
Currenttrend
Financeoption
BrandImage
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Other:
Where do you prefer to purchase Air conditioner
Exclusive Showroom
Multi BrandStore
LocalRetailer
Non BrandedRetailers
What are the influences for purchasingAC
Friend
Family
Price
Features
Looks
Other:
When do you prefer to purchase Air Conditioner?
Pre Summer
Peak summer
OffSeason
Festive Season
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DATA ANALYSIS AND FINDINGS:-
Based on the response of the survey conducted within the consumers, the following trend came up
How many members are there in your household?
What is your family Annual Income Scale?
How many AC's do you have in your household?
less than 3 13%
3 - 6 81%
6 - 9 4%
more than 9 2%
less than 5 lac 22%
5 lac - 10 lac 50%
10 lac - 20 lac 20%
more than 20 lac 8%
0 - 1 40%
2 - 4 46%
4 - 6 12%
more than 6 2%
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Which Brand(s) of AC do you have?
Voltas 19%
LG 52%
Samsung 25%
Hitachi 17%
Videocon 8%
Whirlpool 6%
Other 15%
People may select more than one checkbox, so percentages may add up to more than 100%.
Which brand of AC have you recently purchasedVoltas 17%
LG 38%
Samsung 17%
Hitachi 9%
Videocon 6%
Whirlpool 2%
Other 11%
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Exclusive Showroom 13 27%
Multi Brand Store 26 53%
Local Retailer 9 18%
Non Branded Retailers 1 2%
What are the factors for selecting a Brand
Brand Popularity 35%
Advertisement 4%
Current trend 14%
Finance option 37%
Brand Image 49%
Other 24%
People may select more than one checkbox, so percentages may add up to more than 100%.
Where do you prefer to purchase Air conditioner
What are the influences for purchasing ACFriend 6%
Family 19%
Price 27%
Features 44%
Looks 0%
Other 4%
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1 63%
2 17%
3 10%
4 4%
5 6%
1 31%
2 35%
3 19%
4 12%
5 4%
When do you prefer to purchase Air Conditioner
Pre Summer 27 52%Peak Summer 8 15%
Off Season 13 25%
Festive Season 4 8%
How do you rate the factors for Air conditioners - Power Consumption
How do you rate the factors for Air conditioners - Maintenance
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1 23%
2 27%
3 27%
4 12%
5 12%
1 29%
2 35%
3 8%
4 22%
5 6%
1 19%
2 13%
3 35%
4 15%
5 17%
How do you rate the factors for Air conditioners - On Call Service
How do you rate the factors for Air conditioners - Warranty
How do you rate the factors for Air conditioners - Size
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Which brand tagline says "India ka Dil, India ka AC"LG 6%
Samsung 0%
Voltas 78%
Videocon 4%
Whirlpool 2%
Hitachi 2%
Other 8%
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Our Finding Report
Based on the above survey result we were able to draw out some facts about the AC Marketand Voltas AC in particular.
LG Brand AC is most popular within the consumer groups covered under our survey
Samsung and Voltas are maintaining close market share
AC purchase decision is governed by following factors
o Brand Image
o Brand Popularity
o Finance optionsThe purchase decision is a lot depended upon Brand Image but a typical customer
considers finance options also while its purchase.
Shopping Malls / Multi Brand Stores are the most favorable place of purchase. This
clearly says that customers prefers to have comparative analysis of all possible brands
before purchasing an AC
The top 3 factors influencing AC purchase decision are
o Features
o Priceo Family
AC sales are at maximum during Pre Summer and then during off season (considering
prices are low). It is not much affected during festive offer period
60% sample survey suggest that
o Power Consumption
o Maintenance
o On Call Support service
o WarrantyAre the important factors considered while purchasing/selecting a branded AC
The Branding of Voltas is strong and connects well within the masses
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DistributorsResponse FormThis set of questions is intended to be used for Academicresearch project to study the VoltasAir conditionermarket* Required
Name of the Store *
Address of Store
Do You Sell Voltas AC in your store *
Yes
No
If Not, Why don't you keep Voltas AC in your store
Exclusive Showroom
Lackof demand
Low Profit Margin
No serviceshop availablelocally
Other:
What are the major brands of AC beingsoldout from the store *
Samsung
LG
Videocon
Voltas
Hitachi
Carrier
Whirlpool
Other:
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What are the usualbrands considered by consumers for AC purchase
Samsung
LG
Videocon
Voltas
Hitachi
Carrier
Whirlpoll
Other:
What are the primary reasons for most sellingbrands of AC
Price
Quality
AfterSaleService
Features
Advertisement
AttractiveSchemes
Any Suggestionsfor IncreasingVoltassales
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Data Analysis
Do You Sell Voltas AC in your store
If Not, Why don't you keep Voltas AC in your store
Yes 83%
No 17%
People may select more than one checkbox, so percentages may add up to more than 100%.
Exclusive Showroom 0%
Lack of demand 100%
Low Profit Margin 0%
No service shop available locally 0%Other 0%
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What are the major brands of AC being sold out from the storeSamsung 50%
LG 100%Videocon 50%
Voltas 50%
Hitachi 33%
Carrier 33%
Whirlpool 33%
Other 0%
People may select
more than onecheckbox, sopercentages may
add up to morethan 100%.
What are the usual brands considered by consumers for AC purchaseSamsung 50%
LG 67%Videocon 50%
Voltas 17%
Hitachi 17%
Carrier 0%
Whirlpool 0%
Other 0%
People may select
more than onecheckbox, sopercentages may
add up to morethan 100%.
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SWOT Analysis of Voltas Air Conditioners
Strength
Design and manufacture of
industrial equipment.
Management and execution of
Air Conditioning
Voltas represents a number of
global technology leaders,
serving diverse industrialsectors and applications.
Public works project
Sourcing, installation and
servicing of technology based
systems
Weakness
Too keen on targeting the
economy consumer segment
only
Unable to target the Green
conscious customers
Opportunities
The high end value driven
proposition helps increase the
market share.
Voltas is well known for its
product differentiation
Promote eco friendliness
through their energy efficient
products
Threats
Due to increased price of inputs
and continued price erosion
there is downtrend in the
consumer durables market
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MARKETING ANALYSIS
Marketing is a societal process by which individuals and groups obtain what they need and
want through creating, offering and freely exchanging products and services of value with
others or otherwise it is the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods, services to create exchanges that satisfy individual
and organizational goals.
Marketing Strategy
Marketing strategy is a set of objectives, policies and rules that leads the company's marketing
efforts. It is the marketing approach to accomplish the bread objective of the marketing
approach to accomplish the bread objective of the marketing plan. The various process ofmarketing strategy is given below.
1. Selecting largest markets segmentation
2. Positioning
3. Product4. Price5. Place
6. Promotion7. Research and development
8. Marketing research
1. Market segmentation and selecting target market
Voltas has smartly created their market segment on the basis of the Cost sensitivity
within consumers. Voltas has segmented their consumers as
- Cost saving conscious
- Cost saving plus appearance conscious
- Affordability with ease
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2. Positioning
Voltas has positioned themselves as a low on cost air conditioners with all the features
of a good air conditioner.
3. Product
Voltas offers a range of air conditioners in the market, which includes
Split AC Window AC Pristine AC
Panache AC Cassette AC Slim line ACRecommendations 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 tohandle all spare part related issues.
Better design could give it a huge leverage as in todays world looks are given high weighed.Different color panels could be used like that used by Godrej togive the product a better look.
Also detachable panels could be popularized as people could select the color of the panels
according to there taste & preferences.
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/cavailable 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.
Voltas can come up with detachable panels. This will allow the customers tochoose the color
of there choice to match there room & taste.
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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 todays world looks are given high weighed.
Different color panels could be used like that used by Godrej to give the product a better look.
Also detachable panels could be popularized as people could select the color of the panels
according to there taste & preferences.
4. Price
Considering the customer segmentation and market positioning, Voltas has kept its
product prices competitive and lucrative for the economy minded consumers. The
company does operate in the higher segments but it ensures Price as their winning
factors, since they cannot compete over other value addition which is possible for other
costlier brands.
Voltas-Vertis GOLD Split 1.0T SAC24,500/-
Voltas-Vertis Elite window 0.75 Ton14,000/-
Voltas-Vertis GOLD Split 0.75T SAC18,500/-
Voltas-Vertis window Plus -2.0Ton19,500/-
Voltas-Vertis ELITE Split 2.0T SAC33,000/-
Voltas-Vertis Plus window -1.5Ton17,500/-
Voltas-Vertis ELITE Split 1.5T SAC28,400/-
Voltas-Vertis Plus window -1.0Ton14,350/-
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Voltas-Vertis ELITE Split 1.0T SAC20,100/-
Voltas-Vertis Plus window -0.75Ton12,000/-
Voltas-Vertis ELITE Split 0.75T SAC16,000/-
Voltas-Vertis Premium window 1.5Ton R16,800/-
Voltas-Vertis PLUS Split 2.0T SAC28,500/-
Voltas-Vertis Premium window 1.5Ton M16,400/-
Voltas-Vertis PLUS Split 1.5T SAC26,200/-
Voltas-Vertis Premium window 1.0Ton R14,500/-
Voltas-Vertis PLUS Split 1.0T SAC22,500/-
Voltas-Vertis Premium window 1.0Ton M14,000/-
Voltas-Vertis PLUS Split 0.75T SAC15,000/-
Average Price21,123 Split
Average Price16,177 window
.
Key Findings about Pricing:
Voltas air conditioner are priced nearly Rs.2000 to Rs. 3000 higher than LG.
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.
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
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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.
5. Place
Voltas has ensured its product presence at almost all tiers of cities throughout the country
through local retailers, exclusive showrooms, malls, electrical and electronic superstores
etc.
Since last year, the company has also started coming up with special retail franchisee where
all the Voltas products are installed in working conditions so that the consumers can check
and feel the features of the product at the store. The location of such innovative stores is made
such that it caters to majority of the areas within its radius.
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.
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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 companys 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 & passing on the benefit to the consumer.
To reduce octroi charges the movement could be directed via Goa as its an octroi free zone.
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6. Promotion
Voltas advertisement strategy clearly depicts their customer segmentation and positioning
within market. The advertisement is meant to emotionally bridge the gap within its
consumers who feel that AC runs on electricity bill to electricity saving AC.
The promotions done through magazines are smartly placed and designed to attract
different income level customers who prefer AC with good exterior look and low on
energy bill.The after sale service shops are present in all major tier A, B, C cities.
Voltas has even developed its own 24 hours dedicated customer care representatives to
take all types of complaints, feedbacks and suggestions from customers.
7. Research and Development
Voltas uses the state of the art technology in its entire product range. With the solid back up
of Voltas and dependable Indian label, Tata, Voltas AC continuously develops its product to
match with all the compliance and customer requirement.
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MARKETING STRATEGY
Marketing is not Euclidean geometry a fixed system of concept. Rather marketing is one of
the dynamic fields with in the management arena. The market faces continually a new
challenge everyday and companies must respond to it positively. Therefore it is not surprising
that new market idea keep surfacing to meet new market place challenges.
The market process is applicable to more than goods and services. Anything related to market
including ideas, events, policies, prices and personalities comes under market strategy.
However it is important to emphasize opportunity in the market through market strategy.
Following strategies adopted by the organization.
Niche Marketing:
Voltas has kept their marketing objectives for niche segments. The specific marketing effect
helps them staying focused with their product and customer demand
Multi Prolonged Strategy:
Voltas marketing strategy is a long term approach. They have not changed their stand since
the inception of the brand and continue to promote the same value proposition of economic
energy consumption to their customer segments. This has helped them in creating a brand
sentiment within masses and the featured product are helping them in getting into cutting edge
competition.
Corporate selling at discount price to Employees:
Voltas has adopted an amazing marketing technique of offering their AC product at reduced
price to the employees of TCS. This promoted the brand within in house.
On the basis of marketing strategy an organization runs in the market. It is several types of
which makes helpful to increase sales and turnover of the organization.
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STRATEGIES FOR GROWTH
Voltas 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. Voltas 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 air conditioners and packaged air conditioners, the Company wants
to strengthen its exports operations as well.
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, Navbharat 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 focussed 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.
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Credit Facilities & Discounts to dealers
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.
VOLTAS 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, VOLTAS 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 dealers 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 VOLTAS 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.
Innovations
Voltas launches stylish split air conditioners
Air-conditioning and Commercial Refrigeration major, Voltas, 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
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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.
Voltas launches aesthetically appealing Cassette ACs
Central air-conditioning and Commercial Refrigeration major, Voltas, has launched
anew 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
crossbeams and low ceilings.
The Voltas Cassette ACs distribute cool air in four directions without ducting and comewith a host of powerful features apart from remote control for ease of operation. They
are also installation friendly. They incorporate a scroll compressor, which ensure sthat
the system is energy efficient and maintenance free. The systems come with newly
designed aesthetically superior low noise outdoor units.
The Cassette AC Systems are available in capacities of 2, 3 and 4 tons and are
attractively priced at Rs 86,700 onwards.
Voltas launches new Turbo Rotary Remote Air conditioners
Voltas 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
1.25and 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. Voltas, 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.
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This latest offering from the stable of the Air conditioning expert includes advanced user
friendly features such as Sleep Mode, Programmable Timer and Fuzzy Logic apart from
Remote Control.
The 1.25 Ton capacity is designed for cabins and bedrooms while the1.75 Ton is
positioned for bigger halls. These unique capacities fill the gap in the room air
conditioner segment where customers till now had the option of only 1, 1.5 or 2 Ton
capacities.
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MARKETING MIX
Target Market
Product Price Promotion Place
Product variety List price Sales promotion Channels
Quality Discounts Advertising Coverage
Design Allowances Sales forces Assortments
Features Payment period Public relation Locations
Brand name Credit terms Direct marketing Inventory
Packaging Transport
Sizes
Services
Warranties
returns
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MARKET POTENTIAL
The size of the air-conditioner industry in India is about Rs 2,000 crores. The industry can be
sub-divided into non-ducted and ducted products. The demand for non-ducted products --
window air-conditioners and mini-splits -- comes from both households and corporate. The
demand for ducted products -- central plants, packaged air-conditioners and ducted splits -- is
only from the corporate.
A vast majority of middle-class Indian homes have traditionally battled the summer heat with
the help of fans or giant fan-driven water coolers which blast cool air. "All these years
companies have thought of an AC as an expensive luxury product but that's no longer true,
(The AC) has moved from its luxury status to a necessity item just like any washing machine
or refrigerator. Air conditioner companies see India as a potential gold mine as it offers a
winning combination of rising disposable incomes and AC ownership levels of just 1.1
percent of households. And average prices for air conditioners in India have dropped by about
20 percent over the past two years thanks to new companies entering the fray, making them
more accessible to consumers.
With average incomes rising, AC penetration to follow the same trajectory as colour TV
ownership which is pegged at 18 percent of all households and whose sales have also been
spurred by falling prices. The dismal supply of power where outages, lasting hours, are a part
of life in large swathes of India, could still throw a spanner into the bullish hopes of AC
companies. The big problem is the quality of power supply and the cost of running an AC
running costs are upwards of three rupees an hour depending upon electricity tariffs. Also
hurting growth is the unofficial "grey" market that accounts for close to 15 percent of the
sales. But that is down from 70 percent a decade ago, as competition among established
players and growing preference for brand name ACs among consumers who want after-sales
service has narrowed the gap to around 3,000 rupees from 7,000 earlier. It will shrink further
and further as markets mature and consumers get educated.
Indian air conditioner market is already flooded by players like Hitachi, Whirlpool, LG, Haier,
Samsung, Voltas, Videocon and many more each competing on the basis of price and features.
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Limitations of the Project
1. The sample used for our consumer behaviour analysis is very small and does not
represent the whole market
2. The study is based on articles, presentations, etc available in library, internet, companyhome page etc. only
3. Due to the lack of field work there is no substantial backing for the recommendation
4. The analysis is done by under trainee students and cannot be taken as final report
Recommendations:
In the coming years competition will intensify more, so companies will have to fight hard towoo 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 ACs 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.
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CONCLUSION
Based on this Marketing research project we were able to make the following conclusions
about the brand Voltas AC
1. Customer Behaviour With the help of our survey we were able to deduce that the
consumers of ACs are mostly driven by Energy efficiency, maintenance cost, after sale
support
2. Marketing Strategy ofVoltas Voltas has strictly adhered to their mass marketing
technique and highly efficient products at reasonable cost of owning. This has helped
Voltas to capture the niche market of cost sensitive consumers and even retain them.
3. Market Share ofVoltasVoltas is doing fairly well in the current scenario with its last
quarter results showing positive development
4. CustomerSegmentation Voltas customer segmentation is very clear and they have
streamlined their products as per the same.
5. Product Differentiation Voltas has a good line of products within each type of
products.
Voltas is a prominent AC brand within masses which promises cost saving through energy
efficiency to their customers. They have been able to reach out to their customer segments
through very emotional and powerful advertisement channels. The recent partnership at the
Abu Dhabi Grand Prix race, 2008 gave them an International dimension. Voltas has been
pioneering themselves across all segments of ACs with their solid engineering expertise of
Voltas engineers and great Indian value company Tata.
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BIBLIOGRAPHY
http://www.voltasac.com/news-6.aspx
http://www.thaindian.com/newsportal/business/voltas-targets-premium-air-conditioner-segment_10029375.html
http://www.theequitydesk.com/forum/forum_posts.asp?TID=1742
http://www.tata.co.in/company/media/index.aspx?sectid=PwJV/FG+lC4=
http://www.voltasac.com/air-conditioners.aspx