analytical study of bajaj gas stoves to identify its exact position in the existing market

A

PROJECT REPORT

ON

ANALYTICAL STUDY OF BAJAJ GAS STOVES TO

IDENTIFY ITS EXACT POSITION IN THE EXISTING

MARKET

AT

BAJAJ ELECTRICALS LTD.

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE

DEGREE OF MASTER OF BUSINESS ADMINISTRATION,

UNIVERSITY OF PUNE,

PUNE,

MAHARASTRA.

By

SHEETAL BAZAZ

MBA (2005-2007)

VISHWAKARMA INSTITUTE OF MANAGEMENT

PUNE 411048

CERTIFICATE

This is to certify that this project titled Analytical study of Bajaj Gas Stoves to

identify its exact position in the existing marketBajaj Electricals Ltd., Pune,

is a bonafide work carried out by Sheetal Bazaz of MBA marketing of

Vishwakarma Institute of Management in the partial fulfillment for the degree

of Master of Business Administration, University of Pune.

He has worked under our guidance and direction. His work is found to be good

and complete in all respect.

Dr. Sharad L. Joshi Prof.Rajesh Vhatkar

(Director) (Project Guide)

Date: Date:

Place: VIM, Pune Place: VIM, Pune

ACKNOWLEDGEMENT

I have a great pleasure to present the project report on Analytical study of

Bajaj Gas Stoves to identify its exact position in the existing market for

Bajaj Electricals Ltd , Pune region in partial fulfillment of MBA programme

of the university of Pune at VISHWAKARMA INSTITUTE OF

MANAGEMENT, PUNE.

I would like to thank my project guide at Bajaj Electricals Mr. Manish Mishra,

Senior Sales officer; B.U APPLIANCES. His guidance was extremely useful

throughout my project work. I would also like to thank the dealers of various

gas stoves who shared Information and expertise with me. I am greatly indebted

to all the personnel in the sales and marketing department in Bajaj electricals for

their co-operation and timely help for the completion of my project.

My project guide at VISHWAKARMA INSTITUTE OF MANAGEMENT

PUNE. Prof Rajesh Vhatkar was very helpful during this project.

This project may never have been possible without the tutelage of our Director

Dr. Sharad Joshi. His motivational support kept me spirited throughout this

project.

Sheetal Bazaz

TABLE OF CONTENTS

TOPIC

PAGE

NO.

EXECUTIVE SUMMARY

COMPANY PROFILE

PRODUCT PROFILE

NEED AND OBJECTIVE OF THE PROJECT

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDING

SUGGESTIONS

BIBLIOGRAPHY

ANNEXURES

EXECUTIVE SUMMARY

Bajaj Electrical Limited (BEL) market gas stoves as a part of their product

portfolio. The company felt the need to reposition the product in view of

competitive Pressure. Emergence of several gas stoves from various local

companies created a potential threat to the marketing segmentation of Bajaj s

gas stoves. Hence Bajaj Electrical aspires to find out the pricing and marketing

strategies adopted by its prevalent competitors in the existing market.

The rationales behind the project are

To find the pricing structure of competitors.

To carry out the competitive analysis for BEL.

To analyze the dealers perception of Bajaj and its competitors product

To suggest necessary changes to be made in Bajaj gas stoves marketing.

PROJECT TITLE

The name of the project is Analytical study of Bajaj gas stoves to

identify its exact position in the existing

WHY HAVE I CHOSEN HIS PROJECT AND THIS ORGANIZATION :

As a MBA student we have to under go a project of at least 45s days at the end

of 1st year. Area of my interest is marketing (sales) and I took this opportunity

to grab the practical knowledge in the same field Other reason why I chose this

project is because apart from gas stove segment all the other segments of Bajaj

is doing fairly well in the market, this gave me the opportunity to find the

reason behind it and advice BEL regarding it

I have chosen this organization because BAJAJ ELECTRICALS LIMITED has

given me the type of project which could give me practical knowledge in field

of marketing (sales)

Other reason is that brand name of BAJAJ ELECTRICALS LIMITED is

unmatchable in field of home appliances They are the most prestigious name

and market leader in most of its products in the product portfolio, and enjoy

good market share in marketing their products.

DURATION OF THE PROJECT

1ST JUNE 06 TO 26TH JULY06

COMPANY PROFILE

Bajaj Electricals Limited (BEL) is a part of the US $ 3 billion "Bajaj

Group" who is in the business of steel, sugar, two wheelers & three

wheelers besides an impressive range of consumer electrical products.

We are a 68 year old company with a turnover of over Rs.650 crores

aiming to be a Rs. 1001 crores company in the next couple of years.

Bajaj Electricals has 19 branch offices, a chain of 600 distributors, 3000

authorized dealers, over 1, 20,000 retail outlets and over 200 service

franchises spread across the country. BEL today has five major strategic

business units comprising of home appliances, fans, lighting, luminaries

and engineering & projects. We are also in the business of

manufacturing, erection and commissioning of Transmission Line

Towers, Telecom Towers, Mobile Telecom Towers and Wind Energy

Towers. Export of all BEL's products except of its engineering and

projects business unit is taken care of by group company Bajaj

International Pvt. Ltd.

Bajaj Appliances

Fire...radiating its heat from our Room Heaters, Irons, Ovens, Toasters

and Microwave Ovens. Water...flows through our products such as water

Heaters and Water Filters. Earth...signifying our food related products

such as Mixers, Food Processors and Juicers. When it comes to small

appliances, no other company in India offers as wide and modern a

range as Bajaj Electricals does.

We offer all varieties of Microwave Ovens, Desert Coolers, Personal

Coolers, Water Heaters, Room heaters, Oven-Toaster-Grillers, sandwich

Toasters, Toasters, Juicers & Mixer Grinders, Food Processors, Steam

& Dry Irons and Water Filters. All of these have found a favorable place

in Indian kitchens and homes for a decade.

Choose one from our vast range...The ' Bajaj ' group of India owes

immense gratitude to their founding fathers whose vision and dedication

over the years has greatly helped to build a business house that can set

standards in Indian Industry.

Jamnalal Bajaj was the founding father of the Bajaj Group. The adopted

fifth son of Mahatma Gandhi and the 'merchant prince' who held the

wealth he created in trust forth people of his country. Trust - a simple

word that contains a whole philosophy handed down by Jamnalal Bajaj

to his successors. He valued honesty over profit, actions over words and

common good over individual gain.

Kamalnayan Bajaj, elder son of Jamnalal Bajaj, followed footsteps of his

illustrious father and consolidated the bajaj foundation. With

characteristic foresight and pragmatic vision, he launched a steady

diversification programme, which gave the current name "Bajaj"both its

shape and size. His unique management style created a work culture

that matched well with the national spirit he had inherited.

Ramakrishna Bajaj took over the reins of the "Bajaj group" in 1972 after

Kamalnayan Bajaj and steered the Group from strength to strength for

over 22 years. He had also actively participated in the freedom struggle

of the country. In post independent India, he had led the youth

movement. All along, he actively strengthened the foundations of

business through ethics and practices both within the group and

amongst the business community as well.

Shekhar Bajaj, Chairman & Managing Director of Bajaj Electricals Ltd.,

started his career with Bajaj Sevashram after which he worked at Bajaj

International, the group's export company. Mr. Shekhar Bajaj joined

Bajaj Electricals in 1980, became the Managing Director in 1987 and

took over as the Chairman and Managing Director in 1994. Mr. Bajaj is

the Chairman of Bajaj Group companies Bajaj International and Hercules

Hoist Pvt. Ltd. and on the Board of Directors of Bajaj Auto and IDBI

Bank. He was the President of ASSOCHAM, former President of Indian

Merchant Chambers (IMC) and Council for Fair Business Practices

(CFBP)

PRODUCT PROFILE

AX 4

MRP: Rs. 4375

o Gas Stove with 4 brass burners with stainless steel body

o Special high efficiency brass burners in the gas stoves

o Aesthetically designed gas stove

AX 1

MRP: Rs. 1675

o 2 brass burners with stainless steel body

o Special high efficiency burners with 5 years guarantee

o Extra wide top for accommodating large vessels

o Available for LPG and PNG

AX 2

MRP: Rs. 1925



o Extra wide top for accommodating large vessels on gas stoves

o Spill tray and tall legs to facilitate easy cleaning of gas stoves

o Model with Auto ignition also available


AX 3

MRP: Rs. 1995




o Spill tray and tall legs to facilitate easy cleaning

o Model with Auto ignition also available


IX 2

MRP: Rs. 2825

o Auto ignition 2 brass burners with Stainless Steel body


o Extra wide to accommodating large vessels

o Spill tray and large legs to facilitate easy cleaning


IX 3

MRP: RS 3570

o Auto ignition 3 brass burners with stainless steel body



o Spill tray and tall legs to facilitate easy cleaning


Popular

2 brass burners with Stainless Steel body

o Special high efficiency burners with 5 year guarantee

o Extra wide top accommodating large

o vessels on gas stoves


NEED OF THE PROJECT

1. Bajaj Electricals Ltd. is a premier name in manufacturing home appliances

products such as OTG, mixers, iron, geysers, water heaters, and microwave

ovens. They are the most prestigious name and market leader in most of its

products in the product portfolio, and enjoy good market share in marketing

those products.

2. Later in the year 2000-01,Bajaj launched gas stoves as a new product in their

product portfolio, At the time of launching there were several market leaders in

gas stoves segments like Sunflame as no.1 and Surya(Bombay)in branded and

many local manufacturers were fighting to nab the no.1 position in unbranded

segment of gas stoves.

3. Gradually the market was also flushed with several names in unbranded

segments primarily Surya, from Bangalore and Delhi, which covered significant

market share. Eventually, cheaper in rates as in comparison to branded gas

stoves and having almost similar looks and aesthetics as of branded stoves; it

emerged as the biggest threat for all participants of gas stoves in the market.

4. BEL realizes that its gas stoves segment was not doing all that well as in

comparison to other products in its product portfolio, henceforth it needs to

utilize its brand equity, and company required an exhaustive analysis of its

product as well as its competitors s strategy to prevail in the market of gas

stoves.

5. BEL is interested in increasing the customer loyalty towards the gas stoves as

it is for other products of bajaj by increasing the satisfaction level of its

Existing customers/dealers

Source: Services Marketing by Valarie A Zeithamal, Mary Jo

Bitner, Tata McGraw Hill Publications

OBJECTIVES OF THE PROJECT

Retaining Existing Customers/Dealers.

Find out the perception of existing customers and dealers towards Bajaj and

give out different suggestions so as to change the mindset of the

dealer/customer in the positive sense and retain them.

Attracting new customers

BEL is planning various schemes for its dealers as well as customers to attract

newer ones, by attaching the gas stoves as gift item with its successful products

in the existing market.

Tapping corporate clients

Some corporate firms like petroleum companies have collaborations with gas

stove manufacturers, e.g. Surya (Bangalore) with HPCL and Prestige with

BPCL.

To study the competitors market share and find out the close competitor in

specified areas.

As BEL is facing stiffer competition in branded and unbranded segments of gas

stove.


Approach Summary

Step 1 Initiation of the project

Step 2 Study Design

Step 3 Survey

Step 4 Data Analysis

Step 5 Recommendations

STEP 1

O Understanding the organization.

O Understanding the scope of the project.

O Formulation of plans to address the study objectives.

O Studying product related details offered by Bajaj & other competitors on

Secondary data from BEL

STEP 2

O Designing of the sample from existing data base

o Collective preparation for interview & questionnaire.

o Preparing the data analysis plan including data base structure.

STEP 3

O Collection of data by conducting the interviews (primary data)

O Collection of secondary data from BEL

STEP 4

O Area wise analysis & competitors mapping.

O Analysis based on product/aesthetics type.

O Analysis based on pricing.

STEP 5

O Suggesting guidelines for improvement.

O Presentation of findings.

The entire project was carried out for more than 2 months

62 days

INFORMATION NEEDED

o To understand the product & service offering by BEL.

o To assess the customer/dealer perception about the quality of Bajaj s product

and competitors.

o To receive the suggestions from the customers/dealers for value addition.

o To make use of the valuable information given by dealers for offering them

various attractive schemes.

o To trace the overall customers/dealers as well as competitor profile.

o Reasons for low sale of Bajaj gas stove

METHODOLOGY

Initiation of the project Study Design

Survey Data analysis

Recommendations.

The sample size : 130 outlets

Sampling method used: Area wise sampling

In the first phase of my project, I interviewed dealers of Bajaj only.

In the second phase I interviewed the dealers of Bajaj as well as its

competitors and I visited all the outlets which deals in gas stoves, spread in

various parts of Pune.

The tool used for tests was correlation testing between complaints

and the corresponding suggestions given by dealers.

Initially, I studied the various products marketed by BEL. I observed that other

products than gas stoves were doing considerably well in the market

After studying the BEL product portfolio and offerings to the dealers, I started

desk work in this process I prepared questionnaire. I studied the whole

questionnaire and decided upon the weight age to be given to each question

while interviewing dealers under different conditions.

STATISTICAL TOOLS USED FOR DATA ANALYSIS:

For analyzing the data I used

Correlation analysis: This was used to correlate the complaints given by the

dealers with the corresponding recommendations and suggestions.

Correlation testing between the dealers complaints and suggestions help to

decide whether I can infer any solution from dealer s suggestions to tackle their

complaints.

Area wise analysis of the share of Bajaj and its competitors give area wise share

of each competitor and Bajaj s major competitor in respective areas.

PROJECT SCHEDULE

(

T

O

T

A

L

N

(

(NUMBER OF DAYS:-62 DAYS)

TASK

10 DAYS

1/6-10/6

2006

36 DAYS

11/6-17/7

2006

7 DAYS

18/7-25/7

2006

7 DAYS

26/7-2/8

2006

INITIATION OF PROJECT

STUDY DESIGN

FIELD WORK

DATA ANALYSIS

RECOMMENDATIONS

GEOGRAPHICAL COVERAGE

The areas covered for study were divided in nine parts:-

A. Pune Satara Road, Dhankawdi

B. Karve Road, Warje, Kothrud, Aundh, Aundhgaon

C. Tilak Road

D. Model Colony

E. Shivajinagar, Kirkee, Yerwada

F. Fatima Nagar, Kondhwa, Bibwewadi

G. Hadapsar

H. Peth Areas, Appa Balwant Chowk, Laxmi Road

I. Pimpri, Chinchwad

SALES SEGREGATION AREA WISE FOR 1 MONTH

Area Bajaj Sunflame Surya(D+B)

Others Total

Sales

A 04 09 12 05 30

B 12 65 125 125 327

C 12 32 60 55 159

D 04 05 07 10 26

E 150 575 1200 950 2875

F 08 17 30 22 77

G 60 132 200 450 842

H 65 125 250 400 840

I 22 300 350 250 922

TOTAL 337 1260 2234 2267 6098

Other gas stoves sold in the market are:

Chinese, Marlex, Sunblaze, Prestige, Nirlep, Butterfly, Pigeon,

Surry original(Bombay),Lame Baja rainbow, Usher ,Jyoti,Peacock,Anjali,

Sun time, Crown, Servo flame, Vinflame, Kranti, Glene Fabre etc.

SAMPLING TYPE

Area Wise Sampling

The sampling was done area wise divided in nine parts over Pune.During first

phase of the project I visited and interviewed the dealers who deal in

specifically Bajaj or any other particular brand only.

Later on during the second phase of the project I interviewed those dealers who

were dealing in all brands of gas stoves

Tools used for data presentation

---- Pie charts

----Bar charts

DATA ANALYSIS

RANKING OF GAS STOVES AS NO.1 IN TERM OF SALES (DEALERS

PERCEPTION)

Brands No. of respondents.

Surya (Delhi +Bangalore) 60

Surya (Bombay) 12

Sunflame 20

Bajaj 18

Others 24

RANKING OF GAS STOVE (DEALERS PERCEPTION)

60

12

20

18

24

0 20 40 60 80

SURYA(DELHI+BANGALORE)

SURYA(M UM BAI)

SUNFLAM E

BAJAJ

OTHERS

GRAPH 1

THE ABOVE GRAPH SHOWS RANKING OF GAS STOVES

ACCORDING TO THE DEALERS.

(BAJAJ LIES ON NUMBER 4TH )

DEALERS PERCEPTION ABOUT MARGIN AND PRICING OF BAJAJ

GAS STOVES

Delighted 10

Fully satisfied 25

Its o.k. 50

Not satisfied 25

Strongly dissatisfied 20

DEALERS PERCEPTION ABOUT MARGIN AND PRICING

0 10 20 30 40 50 60

DELIGHTED FULLY SATISFIED

ITS O.K. NOT SATISFIED

STRONGLY DISSATISFIED

GRAPH 2

PERCENTWISE DEALER PERCEPTION

8%

19%39%

19% 15%

Delighted Fully satisfied Its o.k.

Not satisfied Strongly dissatisfied

GRAPH 3

THIS GRAPH SHOWS PERCENT WISE PERCEPTION OF DEALERS

ABOUT MARGIN AND PRICING

(39% of the dealers says pricing of Bajaj gas stove is o.k.)

DEALERS OPINION ABOUT COMPETITOR IS BETTER THAN

BAJAJ BY

Pricing 45

Quality 20

Aesthetics 15

Service 20

Others 30

DEALERS OPINION ABOUT COMPETITOR IS BETTER THAN BAJAJ

Pricing

QualityAesthetics

Services

Others

0

10

20

30

40

50

1Pricing Quality Aesthetics Services Others

GRAPH 4

THIS GRAPH SAYS THE REASON WHY COMPETITORS ARE

BETTER THAN BAJAJ

(According to dealers pricing of Bajaj is on the higher side as compared to the

competitor having same quality and features)

Others include credit terms, availability of the product in the market and

company s caring about dealers.

BAJAJ S DIFFERENT MODELS SALE BY DEALERS

Popular (2 burner), AX2 80%

AX3 (3 burner) 10%

AX4 (4 Burner) 10%

PERCENTWISE BAJAJ'S DIFFERENT MODELS SOLD B DEALESRS

84%

10%6%

POPULAR(2 BURNER) ,AX2 AX3(3BURNER) AX4(4BURNER)

GRAPH 5

GRAPH SHOWS DIFFERENT MODELS SALE BY DEALERS

(Around 84%of the 2 burner gas stoves {Popular} are sold by the dealers)

SERVICE/QUALITY/FEATURES/MARGIN PROVIDED BY

COMPETITORS PRODUCT (DEALERSN PERCEPTION)

Excellent 60

Very good 25

Good 15

Satisfactory 20

Bad 10

0 10 20 30 40 50 60

1

EXCELLENT VERY GOOD GOOD SATISFACTORY BAD

GRAPH-6

Graph Shows Competitors Have Excellent Service /Quality

/Features/Margin

THE TOUGHEST COMPETITOR TO BAJAJ (DEALERS OPINION)

Sunflame 35

Surya (Delhi Bang.) 50

Chinese 20

Other branded stoves (Nirlep, Fabreprestige, etc) 15

Others (local) 10

BAJAJ,S TOUGHEST COMPETITORS

sunflame surya(delhi,bangalore)

chinese other branded stoves)

other (local stoves)

GRAPH-7

GRAPH SHOWS SURYA (D+B) AND SUNFLAME ARE THE

TOUGHEST COMPETITOR FOR BAJAJ

DEALERS OPINION TO INCREASE BAJAJ SALES

Advertisement 60

More margin to dealers 15

Schemes/offers/gifts 35

Credit facility 20

DEALERS OPINION TO INCREASE BAJAJ SALES

0

20

40

60

80

1

Advertisement More margin to dealers

Schemes/offers/gifts Credit facility

GRAPH-8

GRAPH SHOWS DEALERS OPINION HOW TO INCREASE BAJAJ

SALES

(According to the dealers Bajaj should go for advertisement and

promotions)

DEALERS OPINION TO INCREASE BAJAJ SALES(IN PERCENTAGE)

60

15

35

20

Advertisement

More margin todealers

Schemes/offers/gifts

Credit facility

GRAPH-9

DEALERS PERCEPTION ABOUT BAJAJ S POOR SALES

Unawareness among customer and dealers 50

Price, Too high 35

Competitor s brand better 10

Competitors brand is cheaper with similar offerings 25

Others 10

0

20

40

60

DEALERS PERCEPTION ABOUT BAJAJ S POOR SALES

Series1 50 35 10 25 10

Unawar Price Compe Compe Others

GRAPH-10

GRAPH SHOWS DEALERS PERCEPTION ABOUT POOR SALE OF

BAJAJ GAS STOVES

(According to the graph main reason of poor sale is unawareness among

customer of Bajaj gas stoves)

DEALERS SUGGESTION TO IMPROVE THE SALES OF BAJAJ S

GAS STOVES

Advertisement (Print&Electronic) 40

Attractive Schemes (customers) 25

Attractive Schemes (Dealers) 10

Good Dealers profit Margin 20

More varieties of gas stoves 15

Improved packaging 10

Credit facility 10

30%

19%8%

15%

12%

8%8%

Advertisement(Print&Electronic ) Attractive Schemes(customers)

Attractive Schemes(Dealers) Good Dealers profit Margin

More varieties of gas stoves Improved packaging

Credit facility

GRAPH-11

GRAPH SHOWS DEALERS SUGGESTION TO INCREASE SALE

(According to the graph dealers suggest advertisement and attractive schemes

can increase the sale)

ANALYSIS OF DEALERS MARGIN IN VARIOUS GAS STOVES

ANALYSIS OF DEALERS MARGIN IN VARIOUS GAS STOVES

350250

550500

400 450550

500500400

800 800

0

200

400

600

800

1000

BAJAJ SUNFLAM E SURYA(D+B) OTHERS

2 BURNER 3 BURNER 4 BURNER Series2 Series3

GRAPH-11

GRAPH SHOWS ANALYSIS OF DEALERS MARGIN IN VARIOUS

GAS STOVES

(According to the dealers they earn maximum profit In surya (d+b)

And in others)

CORRELATION ANALYSIS

Complaints given by dealers

Complaints Respondents Rank

High cost 10 7

Bad service 17 4

Poor margin 13 6

Unawareness 30 1

Poor distribution 25 2

Non-credit facility 20 3

Poor management 15 5

Complaints Respondents Rank

High cost 10 7

Bad service 17 4

Poor margin 13 6

Unawareness 30 1

Poor distribution 25 2

Non-credit facility 20 3

Poor management 15 5

Total 130

Suggestions given by dealers

Control the cost 10 7

Improve service 25 2

Increase margin 15 5

Increase awareness 29 1

Improve distribution 21 3

Give credit facility- 19 4

Imp. Personal relations 11 6

Let X = complaint rank.

And Y = corresponding suggestion (solution) rank.

Corresponding

Suggestions Respondents Rank

Control the cost 10 7

Improve service 25 2

Increase margin 15 5

Increase

awareness 29 1

Improve

distribution 21 3

Give credit facility 19 4

Improve dealer mgt.

channels 11 6

Total 130

rs = 1 - 6 d2 /n (n2 - 1)

= 1 - (6 X 8) / 7 (49 - 1)

= 1 - 48 / 336

= 0.8571

Since, 0 < rs < 1

Therefore, there is positive correlation between no. of complaints and their

corresponding suggestions given by the dealers.

Complaint Rank(X) Sol. rank(Y)

X-Y = d

d2

A(Unawareness)

1 1 0 0

B Poor

distribution 2

3 -1 1

C Non-credit

facility 3

4 -1 1

D Bad service 4 2 2 4

E Poor

management 5

6 -1 1

F Poor margin 6 5 1 1

G High cost 7 7 0 0

d2 = 8

MAJOR FINDINGS

Market is full with gas stoves. Almost 40-50 different unbranded names have

been observed in the market. Primarily the competition is between branded and

unbranded gas stoves. Branded segment is ruled by Sunflame and unbranded by

Surya (Delhi and Bangalore made) they has captured a huge market share.So far

the name and position of Bajaj gas stoves are concerned it is observed that it has

no significant in the gas stoves segment and company was not using its

brandequity properly. The Bajaj gas stoves are struggling for their existence.

There is very little awareness of Bajaj gas stove in market (i.e even to some of

the dealers are not aware of Bajaj gas stoves)

Advertisement plays a major role in increasing sales Sunflame whereas Bajaj is

not concentrating on advertisement or promotion of gas stoves

The service after sales of Bajaj is not satisfactory due to lack of service station.

In terms of quality it is believed by various dealers and retailers that Bajaj and

Sunflame both are good names, but Sunflame is older company in contrast to

Bajaj hence the customers are more loyal towards Sunflame than to Bajaj.

Market is heavily dominated by Surya group of gas stoves, one that is Delhi

made and another from Bangalore; it was observed that Surya group is the

hottest choice for most of the retailers.

THE REASONS ARE AS FOLLOWS:

Credit facility provided by the company. Pay after sale such type of policy by

competitor is very potential for any company which is penetrating in the market

Very high profit margin is given by Surya group to dealers, so dealers can enjoy

huge bargaining with the customers and enjoy pity good profit

Some of the local as well as Branded gas stove companies gives exchange offer

on old gas stoves (ex. . .Surya gives Rs1000/- off on old exchange of old gas)

One of the major threat for Bajaj gas lies in exhibitions where gas stove

companies like Surya, Jyoti Sunflame gives off till 25%-30% on MRP plus

free home delivery if one books in exhibitions

Bajaj gas stoves there are two types of competitor in the existing market one

in terms of quality and brand equity and another in terms of pricing.

Competitor in terms of quality/brand equity: Sunflame

Competitor in terms of pricing: Surya (Delhi and Bangalore)

Another important aspect for effective selling of gas stoves that was observed

in the market was to make a tie up with certain LPG Company as companies

like Prestige gas stoves has a tie up with Bharat petroleum BPCL and hence

selling huge quantity of gas stoves.

Another important aspect of Bajaj s gas stoves poor selling from the dealers

and competitors point of view was that Bajaj s people or personnel or

representative had no personnel relation with dealers as they never

visited/visit to any outlet, hence why should dealers sell their product, no

doubt this is a serious allegation as for when you are marketing a product is

concerned.

Apart from these if the performance of gas stoves are concerned the dealer s

point of views are: Almost all gas stoves perform equally well and hence one

can t claim something exclusively in terms of aesthetics, service, quality or

design, even brand name.

Secondly Bajaj s goodwill for other products is excellent but it is the view of

the dealers that company is nowhere interested in the business of gas stoves.

Lack of supply of Bajaj, s gas stoves anytime in the market and creates a lot of

problems to dealers and retailers as against the service and guarantee terms.

The company had limited product range. Various dealers desire the versatility

of products. Even smaller companies like Prestige, Surya are having large

number of models in gas stoves, it s a fact that Bajaj hardly supplies five to six

models in the market.

SUGGESTIONS

In order to excel and fight in the rigorous competition in the market it is suggested

that company should consider certain points and think, plan certain alternatives

for the effective sales of gas stoves in the market.

o Advertisement and sales promotions via different modes.

i.e. electronic as well as print media. print media means pamphlet,

newspaper adds,hoadings etc.

o Product range should be enlarged enough and versatile with

respect to design, aesthetics and features to meet the demand of the

customer.

o Tie up with certain LPG gas ltd. Like HPCL/BPCL

o Personal relationship with the dealers should be improved

example. regular visit to dealers, to understand to various problems

of dealers and try to solve as quickly as possible)

o Proper use of Bajaj s brand equity, as related to other products like

gas geysers, mixers and irons, water heaters, etc.

o Improvising distribution network by analyzing the performance of

present distributors.

o Price should be slashed down to reasonable and competitive.

Provisions for more margins to dealers

o Regular visits to find out and analyze the performance of Bajaj gas

stoves sales.

o Bajaj Electrical should actively take part in exhibitions, with

attractive schemes and promotional tools.

If the company considers above-mentioned elements it might be in a short span of

time Bajaj can emerge as an important name in the field of gas stoves segment.

ACHIEVEMENTS:

For any summer trainee the achievement of the project means that the

suggestions and recommendations are implemented by the organization. The

recommendations suggested by me will be put into practice very shortly by BEL

after working on it

LMITATIONS OF THE SURVEY

Most of the dealers in gas stoves market were uneducated and hence it created

hurdles at certain points to infer conclusions based on their statements, as some

times those statement were found to be contradictory.

Since study area was confined to Pune only I couldn t predict the performance

of Bajaj gas stoves in broader perspective

Certain information related to pricing provided by various competitors was not

revealed by dealers hence it was very tough to infer conclusion in this regard.

The responses from some of the dealers were not open hearted as I was not able

to produce I card of Bajaj electrical

Some of the dealers were not fluent with Hindi or English so understanding

regional language was little difficult for me.

Due to bad weather condition I was restricted to a limited number of dealers

only which reduced my sample size

BIBLIOGRAPHY

BOOKS

AUTHOR NAME OF THE BOOK

Philip Kotler Marketing Management

C.R.Kothari Research Methodology

Rajan Saxena Marketing Marketing

Dr. Shajahan Research in Management

WEBSITE

www .bajajelectricals.com

PARTIAL LIST OF DEALERS VISITED

AREA COVERED SHOP

Pune Satara Road Laxmi Steel&Variety

Dhankawadi Chandan steel &Furniture

Dhankawad Raj gas repairs

Karve Road Jain traders

Karve Road Jain Metals

Karve Road Raj Laxmi Metals

Karve Road Chandra kant steel centre

Nal Stop Surya Gas

Kothrud Dhanlaxmi Steel

Warje Prem Electricals

Warje Dhone Gas Agency

Warje Naka Shri Bagtesh Metals

Model Coloney Deepak Electricals

Shivaji Nagar Aadinath Sales

Shivaji Nagar Vallabh Marketing

Shivaji Nagar Arihant Sales Corp.

Shivaji Nagar Prasad Electricals

Tialk road Elektra

Tialk road Surya Gas

MG Road Kirkee MohanRaj Amar Metal house

MG Road Kirkee S.Motilal Sons

MG Road Kirkee Shantilal Sukhraj &Sons

MG Road Kirkee Anjali Gift House

MG Road Kirkee Roopali Novelties

New Bazaz Kirkee Shanti Electricals

Fatima Nagar Citizen Kitchen Ware

Fatima Nagar Classic Sales And Services

Kondawa Khurd Jyoti gas Services

Kondawa Khurd Ramdeo Steel Centre

Kondawa Khurd Krishana Sales And Services

Kondawa Khurd Golden Sales And Services

Wanorie Mehul Traders

Wanorie Alif General stores

Hadapsar Rajshree Elec.&Hardware

Hadapsar February Traders

Hadapsar S.K.Enterprises

Hadapsar B.K.metals

Hadapsar Dinesh Gas Centre

Hadapsar Jai Bhole Fancy Stores

Yerwada Abhinandan

Aundh Pannalal Hiralal Banthia

Aundh Pankaj Varieties

Aundh Uttam Steelsa

Appa Balwant Laxmi Stainless steels

Appa Balwant Sandeep StainlessSteel

Appa Balwant Sri Laxmi Steels

Appa Balwant Mahalaxmi Steels

Budhwar Peth Bhagaya Laxmi Steels

Budhwar Peth New Modi Stores

Budhwar Peth Saif Stores

ANNEXURE

QUESTIONNAIRE

NAME OF THE DEALER

ADRESS AND CONTACT NO.

1) DO YOU SALE GAS STOVES.:- YES NO

2) WHICH GAS STOVE DO YOU SALE:- BRANDED UNBRANDED

3) WHICH GAS STOVE DO YOU SALE IN BRANDED

SURYA SUNFLAME FABRE GLENE

PRESTIGE BAJAJ

4) WHICH GAS STOVE DO YOU SALE IN UNBRANDED

(PLEASESPECIFY)

5) HOW MANY STOVES YOU SALE IN A MONTH (BRANDED)

LESS THAN 5 MORE THAN 5 LESS THAN 10

MORE THAN 10 LESS THAN 15 MORE THAN 15

6) HOW MANY PIECES OF BRANDED STOVE IN BRANDED

I) I BURNER 2) BURNER

3) BURNER 4)BURNER

DO YOU SELL IN A MONTH

7) HOW MANY STOVES YOU SALE IN A MONTH (UNBRANDED)

LESS THAN 5 MORE THAN 5 LESS THAN 10

MORE THAN 10 LESS THAN 15 MORE THAN 15

8) HOW MANY PIECES OF BRANDED STOVE IN UNBRANDED

I) I BURNER 2) BURNER

3)BURNER 4)BURNER

DO YOU SELL IN A MONTH

9) WHAT PROFIT MARGIN IN BRANDED STOVE YOU GETS FOR

SURYA SUNFLAME FABRE GLENE

PRESTIGE BAJAJ

10) WHAT PROFIT MARGIN IN BRANDED STOVE YOU GETS FOR

LOCAL BRANDS.

11) IN BAJAJ GAS STOVE WHICH IS THE LARGEST SELLING STOVE

1) BURNER 2)BURNER

3) BURNER 4)BURNER

12) ANY SUGGESTIONS FOR BAJAJ GAS STOVES

EXECUTIVE SUMMARY

COMPANY PROFILE

PRODUCT PROFILE

NEED AND OBJECTIVE OF PROJECT

LIMITATIONS

FINDINGS

SUGGESTIONS

BIBLIOGRAPHY

ANNEXURE

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