CHUNMUN KU. SINGH Roll No - 12202187 MBA BATCH (2012-2014) 12202187@ksom.ac.inComparison of Videocon Products with its competitors&Effect of visual merchandising on consumer buying behavior"

Prof. S . Debi Mr. Harish Marathe KSOM, KIIT University, DGM-Marketing sailabala@ksom.ac.in Videocon industries ltd.

SCHOOL OF MANAGEMENT, KIIT UNIVERSITY BHUBANESWAR 751024

(4/07/2013)

Certificate of Faculty Guide

This is to certify that the work incorporated in the report Comparison of Videocon Products with its competitors&Effect of visual merchandising on consumer buying behavior"is the work carried out by CHUNMUN KU. SINGH bearing Roll No: 12202187 under my guidance and supervision for the fulfillment for the award of MBA Degree of KIIT SCHOOL OF MANAGEMENT, KIIT UNIVERSITY, BHUBANESWAR, ODISHA.

To the best of my knowledge and belief the Reporti. Embodies the work of the candidateii. Has duly been completediii. Is up to the desired standard in respect of contents and language. Prof. S.Debi KIIT SCHOOL OF MANAGEMENTCertificate of Corporate Guide

This is to certify that the work incorporated in the report Comparison of Videocon Products with its competitors&Effect of visual merchandising on consumer buying behavior" is the work carried out by CHUNMUN KU. SINGH bearing Roll No: 12202187 under my guidance and supervision for the fulfillment for the award of MBA Degree of KIIT SCHOOL OF MANAGEMENT, KIIT UNIVERSITY, BHUBANESWAR, ODISHA.

To the best of my knowledge and belief the Reporti. Embodies the work of the candidateii. Has duly been completediii. Is up to the desired standard in respect of contents and language. Mr. Harish Marathe DGM-Marketing Videocon Industries ltd.

DECLERATION BY THE LEARNER

I hereby declare that this Report is an original study conducted under the guidance of my faculty guide Prof. Sailabala Devi , MBA department, KIIT University.

This has not been submitted earlier for the award of any other degree by any other university.

Date: 4th July, 2013 Chunmun ku. singh 12202187, KIIT University. Bhubaneswar

ACKNOWLEDGEMENT

I owe thanks to many people who helped and supported me during this project.Firstly, I would like to thank my mentor and Assistant Manager VIDEOCON in DELHI , Mr. Akhilesh Singh . I would like to thank him for guiding and correcting various documents of mine with attention and care. He has taken the pain to go through the project and make necessary correction as and when needed.I am thankful to Mr. Sandeep Tyagi for accommodating me in his organization and giving an opportunity to have an exposure and gain such an enriching experience.

My deep sense of gratitude to Mr. Harish Marathe, for his support and valuable time. I would also thank my Institution and my Faculty Guide, Mrs. S.Debi for making herself available at all times. I am greatly thankful to her for her assistance in college without whom this project would have been a distant reality.

Contents Cover Page & Certificate 1-7

1. Executive Summary 8 2. Introduction 9-14 2.1. About the company 2.2. Group Profile 2.3. R & D 3. Consumer Durables 15-16 4. Introduction to the Project 17-21 5. Marketing View of Videocon 22-26 5.1 SWOT5.2 FIVE FORCE5.3 STP

6. Analysis of Data & Interpretation 27-40 7. Observation of Digiworld & Next 41 8. Conclusion 42 9. Suggestion 43-4410. Annexure 45 10.1 Questionnaire

EXECUTIVE SUMMARY

Videocon is a well known company. It is a Indian company which always focused on maintaining the highest international standards of excellence through its quality, technology and innovation. For over a decade now, Videocon has been bringing the latest and very best in consumer electronics and home appliances. Successfully adapting the best of international technology to suit the Indian need, and crafting it to improve the quality of life- as million of satisfied customers will agree. This tells the success story of Videocon. Sustainability is at the centre of Videocon's' strategy. Being a great company Videocon always tried to improve people lives through its product but many a times due to changing environment or customer's mind the product doesn't goes so well as expected.The main objective of the research is to find out that what the condition of Videocon's service in the market and know that how consumer and dealers are satisfied with the services which are provided to them. And other objective is to analyze current scenario of the market in consumer durable sector. And analyze that who is the main competitors of Videocon and what is the current position of Videocon consumer durables goods in the market.For these objectives, I have conducted a survey of dealers in Delhi. I have taken Sample size of 25 dealers.

Introduction to the company

Videocon is the very popular and very reliable company in consumer durable sector. It was established in 1987 by late Mr. Nandlal Madhavlal Dhoot. In those times it entered in the market with color and B/W television and Washing machine. Videocon Industries Ltd was incorporated in the year 1986 with the name Adhigam Trading Private Ltd. The company was established for the business of trading in paper tubes. In the year 1987, the company introduced Black & White TV, Color TV and Washing Machines .In September 1988, the company decided to diversify in the business of lease financing, hire purchase and investment activities.

In 2009, Videocon signed a letter of intent with Finnish contract manufacturing firm Elcotey aiming at buying stake in the foreign firm where the company makes gadgets like mobile phones &set-top box .In 2010, A Rs 1,600-crore plant for color T.V sets and other electronic consumer Durables will be set up by Videocon at Manamadurai in Sivaganga district .In November 3, 2011, Sesa Goa Ltd signed the definitive share purchase agreement with the company along with other shareholders of GEPL under which Sesa agreed to acquire 100% of the outstanding common shares of GEPL for the enterprise value of Rs 101 crore on cash free debt free basis including normative working capital of Rs 2.75 crore.

Group ProfileThe company operates in four key sectors:-1) Consumer Electronics, Home Appliances & Compressor manufacturing:It producesconsumer products like color televisions, washing machines, air conditioners, refrigerators, microwave ovens and many other home appliances, selling them throughtheir sales and service network in India .It has in house compressor manufacturing technology for refrigerators.

2) Display industry and its components: By acquiring Thomson SAs color picture-tube manufacturing business which is spread acrossChina,Poland, and Mexico, Videocon is able to improve the technology in existing products in slim tube, plasma, LCD, and other flat-panel display lines as well as create new innovative products.

3) Color Picture Tube Glass:Videocon is one of the largest Color Picture Tube (CPT) glass manufacturers in the world with a high level of experience and technical expertise operating throughPolandandIndia. Videocon produces a superior range of panels and funnels to meet the demand for large-size, flat, and slim CRT display products.

4) Oil and Gas: An important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally.

Research & Development

The Company has R & D centers located at Aurangabad, Gurgaon; and in China with skilled engineers/experts working continuously on new products development.

R & D activities include: Market Trend analysis Study/Analyze Customers demands and changing needs Design/Develop products suitable for Indian climatic conditions as well as same for Export market.

R & D activities carried out in various consumer electronic products and benefits derived from these activities:Televisions: Introduced "3D LED TV"which enhances the viewing experience. Introduced "Titanium", "Hurricane" and "Tornado" Series of LCD TVwith FULL HD 1080p resolution. Introduction of Blue Tooth Function in TVenables a user to transfer photos/songs stored on his mobile to TV sets wirelessly. Introduced touch control function in CRT TVsegment. Introduced new range of products viz : Universal Media player, Solar Mobile Charger.

Refrigerators: Developed new range of Direct Cool as well as Frost Free refrigerators like Ecocool, Ecocool Plus, Ecofresh, Deofresh, Nutricool, Nutricool Plus, Power cool. Introduction of new base stand with smart VEGI TRAYwhich is unique and give convenience to customer in day to day usage. Introduction of new economic series of Direct Cool Refrigeratoras "Bharat Series", which has given cutting edge solution for the competitors on the price factor. Enhanced Frost Free refrigerator serieswith introduction of LED & LEDi technology. Introduction of 3 & 4 Star Rated Refrigerators, with high energy efficient compressors.

Washing Machines: Developed a higher capacity Washing Machinesto be offered to Indian market with Hand Wash and UV light technology. Introduced Digi-Wave and Digi-Atlantic series of 6.0kg FA Machineswith 8 Wash Programs, 8 Water levels, Child lock feature and Special Air Dry features. Introduced Indias first UV light technology Washing Machine, Digi-Marine and Digi-Ocean. This has other features like Hand Wash, LCD Display, Delay Time setting etc. for user convenience. Introduced SA 7.0kg Spring with Decorative Transparent Panels,Roller Coster Pulsator, centre water fall & Chrome Knobs. Delight to watch and efficient in use. Introduced Digi Dolphin Dlx with Direct Drive technologyalong with enhanced features like "Do It Yourself" program. This has multi spin speed, 8 Water levels and dynamic soak features.

Air Conditioners: Introduced Vitamin C filter: This Filter dispenses Vitamin C charged ions with the cool air. Thereby boosts immunity, keeps skin glowing with its antioxidant property hence keeps the user fresh and vibrant.. Developed multi utility Universal Remote:This remote can operate AC (Videocon brand) and CE products like LCD/LED TV, Set top box, DVD player etc (LG/SS/Philips/Videocon/Akai etc) thereby providing multiple solutions with a single remote.

CONSUMER DURABLES

Consumer durable goods by Videocon have a very eminent position in Indian market and have the largest sale and service market in India. They have an in-house manufacturing unit in India. In consumer durables VIDEOCON has major part in Indian market. Today, Videocon is household name across the nation- India's No. 1 brand of consumer electronics & Home appliances, trusted by over 100 million people to improve their quality of life. It is manufacturing goods with price range and brands. There are number of products manufactured by Videocon which as follows:- TV ( Led Tv, Lcd Tv , Flat Tv) WASHING MACHINE ( Fully Automatic & Semi Automatic) REFRIGERATOR (Single door & Double Door) AIR CONDITIONER ( Split Ac & Window Ac) MICROWAVE OVENS ( Solo & Grill) MOBILE

Various brands which are taken over by Videocon

Sansui- Sansui is very famous in color TVs and DVD player etc. It has very good share in urban and rural market.Electrolux- Electrolux is also well known brand in refrigerators.Akai- Akai has a very huge market share in rural market, because its price is very low and quality is very good.Kelvinator- Kelvinator is also very popular in home appliance and other equipments.Kenstar- Kenstar is one of the major brands in cooler and it is having very good name in the market.

Introduction to the ProjectProject TitleComparison of Videocon Products with its CompetitorsArea of StudyIn the period of intial 20days of my summer training my project guide research topic " Comparison of Videocon Products with its Competitors". The area I covered was Delhi NCR, which included 25 Dealers selling consumer durables goods.

Objective of Study Study of Dealer Awareness about Consumer Durables Goods. Study of Dealer Perception about the Consumer Durables Goods. Identify the level of Dealer satisfaction about Consumer Durables Goods price and quality. Market effectiveness of Videocon Consumer Durables Goods as compared to its competitors. Effect of advertising and Sales promotion Scheme and Incentive on Consumer and Dealers. To study the position and potential of the product in Delhi NCR.

Objective of Research

The main objective of the research is to find out that what the condition of Videocon's service in the market and know that how consumers and dealers are satisfied with the services which are provided to them and we can also say that find out the customer satisfaction level. And other objective is to analyze current scenario of the market in consumer durable sector. And analyze that who is the main competitors of Videocon Consumer Durables Goods and what is the current position of Videocon Consumer Durables Goods in the market.

Significance Of Research"All progress is born of inquiry. Doubt is often better than the over confidence, for it Lead to inquiry & inquiry to invention". This is famous Hudson in context of which the significance of research can well be understood.1) Research includes scientific & inductive thinking & it promotes the development of the logical basis of thinking organization.2) The role of research in several fields of applied economics, whether related to business to the economy as whole, has greatly increased in modern times.3) Research provides the basis for nearly all the government policies in our country.4) Research has its special significance in solving various operations & planning problems of business & industries.5) Research is equally importance for social scientists in studying social relationship & in seeking answer s to various social problems.

DATA ANALYSIS METHOD

(PROJECT RESEARCH TYPE)The project research type is DESCRIPTIVE RESERARCH TYPE in which I know what i have to measure & also the adequate method for measuring it along clear-cut down of "population" I wanted to study.Since the aim was to obtain complete & accurate information in the said studies, the procedure to be used was also planned.

DATA SOURCES

Primary Data

Primary data was collected through an interview with the help of a structured Questionnaire, which contained queries that were relevant to the purpose of the study as well as pertinent; industries related questions.

Secondary Data Magazine Mannual Textbook Internet

Research Approach

Survey method was adopted in order to collect the primary data required for the Study.

Research instrument

Questionnaire was designed with close-end questions. The questionnaire was designed in such a manner so as to cater to all the areas and aspects the study.

SAMPLING PLAN

1. Sampling procedure: Random Sampling2. Sampling Size: 25 Respondent3. Geographical Coverage: Delhi, NCR4. Duration of the Study: 15 days

LIMITATIONS OF THE STUDY

In spite of working under the banner of such a magnificent company and also under the guidance of highly matured, capable, and understanding people certain constraints do played the role of hindrance in the way of accomplishing the assigned task. i would definitely like to share those aspects too

1. Non-cooperation shown by certain retailers and their ignoring attitude.2. Each and every region is not easily accessible.3. A limited time frame i.e. of just 2 weeks, due to which I was not able to reach those destinations which I wish I would.4. We cannot say that the data taken for our study is fully adequate to get the desired or accurate result.5. It takes very long process for finalization the deal.

MARKETING VIEW OF VIDEOCON CONSUMER DURABLES GOODS

1. SWOT Analysis2. Five-Force Model3. STP

1. SWOT ANALYSIS

Strength:

Videocon is one among the top-end players in the Consumer Electronics Business and a recognized name in every house hold which helps in bagging a good brand image and customer loyalty. Technology wise Videocon Consumer Durables has no match in the Indian market as no competition has such advanced features in its products. Videocon has its presence in the market through both Brand Shops and general dealer outlets (Electronic Retail Outlets); shop ambience, environment and location are also very convenient. Same price throughout the country i.e. VRP (Videocon Retail Price) is also a great attraction for customers.

Weakness:

Videocon Consumer Durables are little bit high priced and this high price factor is not affordable to a larger segment of Indian customers. Branding and promotional activities at the outlets is not extensive as compared to its competitors. Weak Sales and Service network. Videocons rapport with the dealers is not as strong as of Samsungs or Lg's. Diversification into too many sectors

Opportunity:

Videocon constant upgrade in technology can outdo all its competitors in the long run. Because of keen foresightedness of future demand and customer perception, Videocon can beat all the other players in the market. Lifestyle of People has been changing very much, so there will be demand for Premium products. Threat

There are some brands in the Indian market for example, Samsung or Lg or Godrej, BPL which are coming up with average to good quality products, but priced much below Videocon keeping in view the purchasing power of Indian consumers, and this factor is of concern. Cheaply available of Chinese product Changing Government policies towards industries

2. FIVEFORCE MODEL

Threat of new entrants [Low]

Videocon has established itself as a high-end brand in the Indian Consumer Electronics market (both in A/V and HA), hence any new player posing any threat to its market build up is less.

Bargaining power of Suppliers [Low]

As we know that it is very difficult to switch in B2B market, suppliers bargaining power is low.

Bargaining power of Buyers [High]

Indian market is a price sensitive market and awareness among consumers about price range of Consumer Durables Goods of various brands is also high, hence buyers enjoy a higher bargaining power.

Threat of substitute products [Low]

The threat of substitute products is low as there is almost no substitute for the newest technology based on Consumer Electronics Durables being brought in to the market from the house of Videocon.

Rivalry among competing firms [High]

In Consumer Electronics Sector, Videocon is facing cut-throat competition from SAMSUNG, LG, GODREJ , WHIRLPOOL, SONY are among the other players to grab the market share.

STPSEGMENTATION:Market segmentation is the process in marketing of dividing a market into distinct segments that behave in the same way or have similar needs. The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Segments can be based on Income i.e. led 3D TV, Four Door Refrigerator: Income group for more than 50,000. Slim TV, flat TV, semi automatic washing machine, windows ac: consumer in the income bracket of 10,000-20,000.

Segments can be based on Social class: Rich class , upper middle class, middle class, lower middle class.

Segments can be based on Loyalty Status: Consumer loyal to Videocon for long period of time in terms of purchasing its products. Also those consumers who are not loyal to any brand s so attract them to Videocon and convert them to Videocon loyal brand.TARGETING:Once the firm has identified its marketing-segment opportunities, it has to decide how many and which ones to target.Marketers are increasingly combining several variables in an effort to identify smaller, better-defined target groups.The decisions involved in targeting strategy include:* Which segments to target?* How many products to offer?* Which products to offer in which segments?The consumer profile for the last few years has changed. Higher disposable incomes, greater aspirations and younger demographic have increased demands for the technologies. And Videocon is targeting this segment.POSITIONING:Positioning has come to mean the process by which marketers try to create an image oridentity in the minds of their target market for its product, brand, or organization. It is the relative competitive comparison' their product occupies in agiven market as perceived by the target market.Points of Parity (POPs) are associations that are not necessarily unique to the brand but may in fact be shared with other brands. They represent necessary-but not necessarily sufficient-conditions for brand choice. Videocons Points-of-Parity are good quality Picture and good sound. Points-of-Difference (PODs) are attributes or benefits consumers strongly associates with abrand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. Videocons POD is the quality product with low cost. With the strong backward integration Videocon can provide the products with low cost.Thus,Videocon is positioned itself as a reliable and value-for-money product.DATA ANALYSIS

Total sample size which I have taken, is 25 dealers in Delhi NCR. In which 18 dealers are dealing in Videocon and rest 7 dealers are not dealing in Videocon.DealersNon-DealersTotal

18725

Interpretation Here we can see that 72% dealers are dealing in Videocon Consumer Durables Goods and reaming is not.

DATA INTERPRETATION

1. Which brand of consumer durables goods are most selling in your shop?

SAMSUNGVIDEOCONLGGODREJWHIRLPOOLTOTAL

12452225

Interpretation: In selling point of view here we see that in market SAMSUNG lead with 48% and other companies are less in according to SAMSUNG.

2. Which company provides you better promotional scheme ?

SAMSUNGVIDEOCONLGGODREJWHIRLPOOLTOTAL

7953125

Interpretation: VIDEOCON leads with its promotional facilities.

3. What is the most appropriate way of advertisement preferred by Consumer Durables Sectors?

HOARDINGSPAMPHLETSDANGLERSBROUCHERTOTAL

1085225

Interpretation: Most commonly HOARDING is used followed by pamphlets and danglers.

4. Which type of Goods is mostly preferred by the customer?

ACW.MACHINEREFRIGERATORT.VTOTAL

1124825

Interpretation: A.C is most widely used following by T.V, refrigerator and washing machine.

5. Which brand you will prefer to sell in future ?

SAMSUNGVIDEOCONLGGODREJWHIRLPOOLTOTAL

10562225

Interpretation: Dealers have chosen SAMSUNG as a first choice followed by Videocon, LG and others.

6. Which brand of goods is firstly preferred by customer?

SAMSUNGVIDEOCONLGGODREJWHIRLPOOLTOTAL

12461225

Interpretation: The above pie chart shows that SAMSUNG is most preferred, following by LG and others.

7. Which brand of Consumer Durables Goods provides you better service?

SAMSUNGVIDEOCONLGGODREJWHIRLPOOLTOTAL

11262425

Interpretation: The above pie chart shows that SAMSUNG provides best service, followed by LG and others.

8. Do you get latest information about the new Schemes?

YESNOTOTAL

22325

Interpretation: The above pie chart shows that maximum dealers are aware for new schemes.

9. Is customer schemes help in increase the sale of goods?

YESNOTOTAL

20525

Interpretation: The above graph shows that maximum dealers says that it help for increasing.

10. Rate the following

IMAGE

SAMSUNGVIDEOCONLGGODREJWHIRLPOOLTOTAL

13541225

Interpretation: The above pie chart suggests that in market SAMSUNG has best brand image, followed by Videocon, LG and others.

QUALITY

SAMSUNGVIDEOCONLGGODREJWHIRLPOOLTOTAL

12371225

Interpretation: The above pie chart suggests that SAMSUNG has best quality product, followed by LG, Videocon and others.

PRODUCT RANGE

SAMSUNGVIDEOCONLGGODREJWHIRLPOOLTOTAL

10572125

Interpretation: The above pie chart shows that SAMSUNG has maximum product range, followed by LG, Videocon and others.

PRICE

SAMSUNGVIDEOCONLGGODREJWHIRLPOOLTOTAL

10361525

Interpretation: The above pie chart shows that Godrej has lowest price in the market, followed by VIDEOCON, whirlpool and others.

Observations of OutletDigiworld Wire management needed attention. Catalogue was missing in counters, due to which Vpcs had less knowledge about the products. VPC were not wearing Uniform & Well groomed No New Launch Product On Display There was lack of Highlight of New Offer at the Store. Display Products were Working properly & but have dust on them Vpc were casual in giving Demonstration Almost 50% of Wall was EMPTY VPC are casual in their work & were having food inside the store due to which Store ambience was bad.

NEXT

Ambience was good & everything were well organized Vpc were good at demonstration Vpc were in proper dress & well groomed Display Products are Working properly & have no dust on them Display is in eyelevel Properly Arranged cables Almost every place i.e. wall was used for productCONCLUSIONFrom above Literature review and findings we can say that Videocon needs to redesign its marketing strategies and improve its after sales services in order to make a huge success in India.However if Videocon improves the services, then there are quite good chances of a grand success as Indian Consumer Durables Sector is growing very fast. So Videocon has the following options: 1. Improve the marketing strategies i.e. advertising, promotions etc. this could certainly help Videocon to penetrate the tough Indian market and to keep the market share entact.2. Improve after sale services of the consumer durables goods.3. Currently Videocon is available with most of the major dealers in Delhi, Videocon needs to focus on those dealers also where it will not face direct competition with LG and Samsung , a small and dedicated brand dealer will work not only for marginsbut they also can see the future opportunities in form of Videocon.4. Videocon Need to create a value for money brand image which can give good product quality at affordable prices.Finally we can conclude that the success (or sales) of Videocon consumer durables goods is dependent on after sales services. Indian customer won't buy it just because of its brand name as quality is also needed for the expected value of money and satisfaction.In other words we can conclude that success of Videocon consumer goods is more dependent on its product quality and after sales services than its price.SUGGESTIONS

After studying the various parameters of Videocon consumer durables goods, I have found out that the sales of the product are decreasing because of inferior after sales services.I recommend the following:-1. Improve after sales service -it has been found out that customers find the after sales services of other consumer durables goods better than their Videocon brand. So, improvement in after sales service can help in increasing sales.

2. Videocon needs to increasethe number of BTL (below the line) activities to generate common awareness and visibility at grassroots level, because it canbe understood from the figures of their competitors BTL activities that Videocon BTL activities is not up to the that mark in comparison to othercompetitors.3. Videocon needs to build strong dealer relation in order to provide betterplace strategies for the brand. Videocon lacks in company support factors and most of the existing dealers in the dealer survey said that.Like most of the companies are having their regular company dealers meet to get together with their dealers, Videocon lacks needs todo this in order to regain dealer support.4. Videocon has good presence in the market but one thing is also evident that Videocon is present in major counters with LG and Samsung. It also need to focus on those dealers were it will not face direct competition with LG and Samsung. Competitive strategy should be like this where first Videocon should wipe out smaller brands compare to LG, whirlpool and Samsung because this brand also have market share larger than Videocon and Videocon is not in competition of LG and Samsungit should targeton brands like Godrej , so it can compete the bigger brandlater on.5. Attractive schemes must be launched by company in order to attract lower middle class.6. Increase the number of engineers in after sales service department..7. Number of call centre should be increased.

Annexure

1. Which brand of consumer durables goods are most selling in your shop? (a) SAMSUNG ( )(b) VIDEOCON ( ) (c) LG ( ) (d) GODREJ ( ) (e) WHIRLPOOL ( )2. Which company provides you better promotional scheme? (a) SAMSUNG ( )(b) VIDEOCON ( ) (c) LG ( ) (d) GODREJ ( ) (e) WHIRLPOOL ( )3. What is the most appropriate way of advertisement preferred by Consumer Durables Sectors? (a) HOARDINGS ( ) (b) PAMPHLETS ( ) (c) DANGLERS ( ) (d) BROUCHER ( ) 4. Which type of Goods is mostly preferred by the customer? (a) A.C ( ) (b) WASHING MACHINE ( ) (c) REFRIGERATOR ( ) (d) T.V ( )5. Which brand you will prefer to sell in future? (a) SAMSUNG ( )(b) VIDEOCON ( ) (c) LG ( ) (d) GODREJ ( ) (e) WHIRLPOOL ( )6. Which brand of goods is firstly preferred by customer? (a) SAMSUNG ( )(b) VIDEOCON ( ) (c) LG ( ) (d) GODREJ ( ) (e) WHIRLPOOL ( )

7. Which brand of Consumer Durables Goods provide you better service? (a) SAMSUNG ( )(b) VIDEOCON ( ) (c) LG ( ) (d) GODREJ ( ) (e) WHIRLPOOL ( )8. Do you get latest information about the new Schemes? (a) YES ( ) (b) NO ( )9. Is customer schemes help in increase the sale of goods? (a) YES ( ) (b) NO ( )10. Rate the following:S.NOCOMPANYIMAGEPRICEQUALITYPRODUCT RANGE

1SAMSUNG

2VIDECON

3LG

4GODREJ

5WHIRLPOOL

PERSONAL DETAILS:NAME:_________________________AGE:

BIBLIOGRAPHY

1. www.videoconworld.com2. www.google.co.in3. Philip Kotler, "Marketing Management"

VISUAL MERCHANDISING

The display of products which makes them appealing, attractive, accessible, engaging, and enticing to shoppers in aretail store. Visual merchandising utilizes displays, color, lighting, smells, sounds, digital technology and interactive elements to catch customers' attention and persuade them to make purchases. Visual merchandising helps convey the image of the brand and reflects the personality of the target markets that the retail store wants to attract. Visual Merchandising plays an important role in the store interior & exterior. Store exterior includes window display, store formats, fixtures and fittings and interior lighting etc. If retailers want to project the best side of their company in the minds of the customers and in turn brand loyalty they have to make sure their visual display should be pleasing to the customers. Visual Merchandising is a powerful tool in shaping consumers final decision inside a store. Most studies of satisfaction and loyalty focus on the brand level of decision making. But in this paper I have tried to shift the focus on Visual merchandising effects on brand and customer loyalty through explaining the important aspects of visual merchandise like store exteriors, interiors and displays. Satisfaction plays a very important role in developing brand loyalty of a customer .Companies use Visual Merchandise to carefully manage the look and feel of the brand in store and for presenting products in the most effective ways. There are seven factors of brand loyalty and they are brand name, product quality, product display, price, style, and service quality and store environment. It is mentioned that a store having a good product display can gain loyalty from the customers thus supporting the statement of having a positive relationship between customer loyalty and Visual Merchandising.

More than two-thirds of shopping decisions are made at the point of sale. Therefore, for brands in nearly all categories from candy to computers the difference between success and failure frequently is tied closely to retail presentation. Even with the growth of Web based shopping, which will change the shoppers point-of sale environment, the importance of a brands visual identity wont diminish. Online shoppers will continue to view and select among numerous packages and logos and make their decisions based largely on each brands visual presentation. In a retail store, better attention is paid to what makes the store special and unique. This can require reducing inventory, and/or selecting specific products that better reflect the nature of the store brand. Notice how many successful retail stores have simple interiors. It takes skill to simplify elements down to those few that are critical. This would include: Eye catching store signs, photography, displays and graphics Unique, quality products Organized merchandise that is color blocked and neatly displayed Clear interior signage/ information Attentive, helpful staff Functional and pleasing fitting rooms Appropriate and appealing store scent and sound Be empathetic.

IMPORTANT COMPONENTS OF VISUAL MERCHANDISING

1. Retail Signages : Signages are one of the integral components of visual merchandising executed at any retail store . It can be a drop down from the ceiling of the store with a word like Groceries written on it in an eye catching font Orit can be an A-4 or A-3 size paper pasted on the store shelves promoting schemes like Buy One Get One Free and revealing prices of the products lying on the shelves or it can also be a beautifully painted wall having colourful pictures and punch lines like Is Se Sasta Aur Achchha Kahin Nahin on it and so on and so forth. Whatever may be the case; signages are considered as one of the most appropriate ways of conveying messages to the customers. The challenge before the retailers is not limited to simply displaying these signages at their stores but is of designing them professionally while focusing on some of the important parameters like quality of the paper or the material used, colour scheme applied, font used, i.e. whether it is legible enough or not, simplicity of the message such that it is easy to be interpreted by the customers and above all, location at which these signages need to be placed inside the store such that they attract maximum attention of the customers and pursue them to buy the products. Studies have revealed that one has not more than 3 seconds to let the customer know what he/she will find inside the store.

2. Retail planogram: A retail planogram is a diagram that shows how and where specific products should be placed on shelves or displayed in order to increase customers purchases. A skilled planogrammer at retail store develops these planograms for different types of visual merchandising displays . These are developed based on the information available for the product such as the amount of inventory left for the product, volume of sales per square foot of retail space, and other specific information about products (such as stock keeping unit numbers, product codes, etc.). By analyzing past and current sales patterns, a planogrammer makes recommendations about the number of Facings (how many of the products should face straight toward the customer) a certain product should have on a retail display, how high or low it should be on the display, as well as which products should surround it. This planogram is then printed out as a visual to be followed by the part time helper that is often hired to restock retail shelves and displays. This gives management of a retail store or chain more control over how products are displayed, and allows them to track and improve on the success of their planograms.

3. Retail Merchandising: Retail Merchandising is a major component of visual merchandising. It takes into consideration almost everything a customer experiences from his first sight of the storefront, which includes an attractive and inviting entrance of the store, height of the building of the store, display windows, marquee, parking space, etc. until he/she leaves the store with a purchase in his/her hand. It is all about understanding the way customer shops such that the products can be placed at positions in the store where they have maximum chance of being picked up through increasing visibility and appearance with the help of flood lights, par bulbs, suitable fixtures and fittings, etc.

Store Interior: Affects the stores image Includes items such as: Floor & wall coverings , Lighting , Colors , Fixtures Store Atmospherics:The design of an environment through visual communications, lighting, colors, music, and scent to stimulate customers perceptual and emotional responses and ultimately to affect their purchase behavior

Lighting: Highlight merchandise , Structure space and capture a mood , Energy efficient lighting , Downplay featuresColor: Warm colors (red, gold, yellow) produce emotional, vibrant, hot, and active responses Cool colors (white, blue, green) have a peaceful, gentle, calming effectMusic: Control the pace of store traffic, create an image, and attract or direct consumers attention , A mix of classical or soothing music encourage shoppers to slow down, relax, and take a good look at the merchandise thus to stay longer and purchase more different music at different times of the day Jazzy music in the morning for older shoppers Adult contemporary music in the afternoon for 35-40 year old shoppersScent Has a positive impact on impulse buying behavior and customer satisfaction Scents that are neutral produce better perceptions of the store than no scent Customers in scented stores think they spent less time in the store than subjects in unscented stores

Importance of Atmospherics Planning Enhances the image of the retail outlet. Attracts new customers. Creates a definite USP (Unique Selling Proposition). Facilitates easy movement inside the store. Facilitates access to merchandise inside the store. Ensures optimum utilization of retail space. Reduces product search time for the customer. Influences the service quality experience.

(POS)

A point-of-sale display (POS) is a specialized form of sales promotion that is found near, on, or next to a checkout counter . They are intended to draw the customers' attention to products, which may be new products, or on special offer, and are also used to promote special events, e.g. seasonal or holiday-time sales. POS displays can include shelf edging, dummy packs, display packs, display stands, mobiles, posters, and banners. POS can also refer to systems used to record transactions between the customer and the commerce.ExamplesUsually, in smaller retail outlets, POS displays are supplied by the manufacturer of the products, and also sited , restocked and maintained by one of their regular salespersons. However, this is less common in large supermarkets as they can control the activities of their suppliers due to their large purchasing power, and prefer to use their own material designed to be consistent with their corporate theming and store layout.Common items that may appear in POS displays year-round are batteries, soft drinks, candy, chewing gum, magazines, comics, tobacco, and writable CDs and DVDs. These displays are also useful in outlets with limited floor space, as there tends to be much wasted space around counters.

Point Of Purchase (POP) Display:

Videocon also assigned us to study different types of POP (point of purchase) material and its significance in the promotion of the brands.

Below are the various types of POP materials:

They are intended to draw the customers' attention to products, which may be new products, or on special offer, and are also used to promote special events, e.g. seasonal or holiday-time sales.

Marketing materials or advertising placed next to the merchandise it is promoting. These items are generally located at the checkout area or other location where the purchase decision is made.

Usually, in smaller retail outlets, POS displays are supplied by the manufacturer of the products, and also sited, restocked and maintained by one of their regular salespersons. However, this is less common in large supermarkets as they can control the activities of their suppliers due to their large purchasing power, and prefer to use their own material designed to be consistent with their corporate theming and store layout. For example, If you look at supermarkets or big retail chains like Chroma they use their own POP materials instead of Videocons POP material.

The purpose of point of purchase (POP) Displays is to make a business owner's products appear more professional and appealing to the customer's eye. They are an integral component of successful marketing, but remain invisible to the average consumer. The customer is thinking about a particular product but often they are drawn to the one which is displayed in a more prominent fashion without knowing. Well done point of purchase (POP) displays will draw consumers to one product over another, or give one store the appearance of being more organized and clean.

Your professionally designed POP display can make all difference between a potential customer purchasing your product and the product of your competitor.

Many factors go into a well-designed POP display are Graphics, Layout, type and presentation all contribute to the design of a perfect eye catching display for your product.

Posters:

A poster is any piece of printed paper designed to be attached to a wall or vertical surface.

Posters are designed to be both eye-catching and convey information.

Product Display Stand:

It is used to highlight one particular product.

It is frequently used when new product launches in the market.

Display wall is a wall where more than one product is highlighted.

Window Display

Shop owner creates attractive scenes in windows facing street, featuring products available in the shop.

This simple approach attracts new customers who see something in the window that is appealing.

On Product Sticker(OPS):

The primary purpose of OPS is to identify type, size, brand, product line, manufacturer and other product-specific information like features etc. in order to inform the customer and encourage purpose.

Crowners:

Crowners are place above the product.

They basically used to highlight the main features and offers available on the product.

Danglers:

Danglers are loosely hanging or swing in to or fro. They are made of cardboard with the design printed over it for promotion of products.

Danglers increases the visibility of the products

Standees:Standee is a large self-standing display promoting a product or event.There are various types of standees.

Product feature standee Brand standee Display standee

Shelfmat:

They are similar to crowners. Crowners are placed above the product whereas Shelfmats are stick to the shelf.

Big retail chains like , Croma etc. do not use POP material provided by the company, instead they prefer to use their own material designed to be consistent with their corporate theming and store layout. Only small retail outlets use it and they have raised few problems in it. Many retail chains complained that quality of marking collaterals like crowners, danglers, posters etc. of Videocon Group is poor. Whereas competitors like LG, Samsung and Sony marketing collaterals are of superior quality and hence they use these brands material only to highlight the features etc. Also I have observed that LG, Samsung and Sony spend lots of money on Branding and the quality of Branding is far better than Videocon Group. Always you will find branding of these giants LG, Samsung and Sony in the entrance of Retails or in the area which gets noticed easily whereas Videocon branding you will find in the area which hardly gets noticed.

Effect of consumer behaviour on the purchase of consumer durables goodsCompanys ability to maintain satisfying customer relationship requires an understanding of consumer buying behaviour. This refers to the buying behaviour of consumer who purchases products or service for their personal or household use. Consumers have limited time, energy and financial resources. Within the available resources, they make purchase and consumption choices as they wish. Consumers purchasing decision takes place over a period of time. The overall goal during this process is to evaluate various alternatives and choose the product that satisfies the consumer in an optional way. Consumers get influenced by several major factors while they make their decisions. These factors can be grouped as: Social Cultural Psychological Personal factors etc.The consumers degree of interest in a product and the importance he/she places on this product determine the consumers level of involvement. High-involvement products are usually expensive and are visible to other people such as Diamond ring/ jewellery or a expensive car. Low- involvement products are less expensive and have less social risk associated with them such as a cup of coffee or daily consumption items. When buying frequently purchased, low-cost mundane items that require very little search and decision effort , they demonstrate routinized response behaviour. When buying products occasionally or when they need to get information about an unfamiliar brand in a familiar product category , they use limited problem solving. When they buy unfamiliar, expensive products , they use extended problem solving.IMPACT OF PROMOTIONAL MATERIAL ON THE BUYING DECISION OF CONSUMER

The Company is spending heavily on the Visual merchandising . The marketing department is working very hard on these collaterals so as to attract the consumers. But the company wants to find out whether this spending worth or not. The company wants to find out whether these VM are playing any role in promoting sales or not. Whether these VM are liked by consumer or not. Whether these VM are helping them in taking decision.The purpose of the study is to find out the impact of promotional material or we can say marketing collaterals like (visual ads, catalogues, pamphlets, on product sticker, danglers, streamers, posters, banners etc).The research is descriptive in nature and the data collected is primary. The data was collected through questionnaire.Salespersons are preferred more by consumers as compared to other marketing collaterals and catalogue. Marketing collaterals help in making buying decision, attract the customers, provide information and reflect the brand image. A consumer are attracted by the TV ads , colours, paper quality, printing quality and pictures on these collaterals and also by the other factors like quality price, features etc.

CONTEXTThere are various ways for the marketing of any products like electronic media, print media, internet, on ground activities, celebrity endorsements and many more.Important for consumers.Through electronic media (tv, radio ads) consumers only see and listen the advertisements but find it difficult to retain information about the products. The tv and radio ads just grab viewers and listeners attention and creates interest to purchase the product.When customers visit the electronic outlets to purchase a product then information on collaterals, products displayed, information given by salesperson help them in making decision.So before the final purchase of a product, marketing collaterals, products and salesperson are the major factors that affect the buying decisions of consumers.

REVIEW OF THE LITERATURECompanies always try to establish the contact with target market. This is a prestigious status for company to address the customers. Company wanted to enhance its image in the minds of common man so that in future, whenever it would be visited to customer court, it would be having enough matter to communicate the customers. The company presents its history products history and even national history. Companies have these processes in all consistency. Promotion is a term, which means the moving from one end to another. In marketing, promotion means all those took that a marketer uses to take his product from the factory to the customers and it involves the advertising sales promotion, personal selling, public relations, publicity and merchandising. Promotions are result oriented. Promotion system works with proper communication system. This has sender, receivers and feedback system. Feedback is form of action which customer gives bark to the company about product, advertisement or strategy.The research paper will highlight the effectiveness and applicability factors of sales promotion and advertisement techniques.Advertising and sales promotions can be two promotions. Advertising consist of (i) Pricing and brand cast ads (ii) Packaging outer (iii) Packaging inserts (iv) Motion pictures (v) Brochures and Booklets, (vi) Posters and leaflets (vii) Directories (viii) Reprints of ads (ix) Bill boards (x) Display signs (xi) Point of Purchase (xii) Audiovisual material (xiii) Symbols and logos (xiv) Video taps, Sales promotions consist of (i) Contests (ii) Games (iii) Premium (iv) gifts (v) sampling (vi) fairs and trade shows (vii) Exhibits (viii) Demonstrations (ix) Coupons (x) Rebtes (xi) Low interest financing (xii) Entertainment (xiii) Trade in all allowance (xiv) Continuity programs. RESEARCH METHODS AND PROCEDURE

PURPOSE OF THE STUDYThe company is spending heavily on Visual merchandise (Visual ads catalogues, pamphlets, danglers, streamers, posters, banners). The company deploys these marketing collaterals in large quantities to the dealers, multi brand outlets.

So the company wants to know out whether or not they should spend heavily on VM techniques.The purpose of the study is to find out whether marketing collaterals: influence or help in marking decision at the time of buying Attract consumers Reflect the brand image.The main objectives of the study are: To study the impact of Visual merchandising technique on the buying decision of consumers. Do colors, printing and paper quality and pictures shown in the marketing collaterals influence the buying decisions of consumers?

SIGNIFICANCE OF THE STUDY

The management of the company spends heavily on promotional activities including marketing collaterals. The marketing team works very hard on various areas like designing, paper quality, printing quality of collaterals.But the company wants to know, what is the impact of these collaterals on the buying decisions of consumers? So a study is conducted to check the impact of these collaterals on consumers.Results of this research will help the Marketing Department of Videocon To understand what is the impact of VM technique on the buying decisions of consumers. To understand which collaterals is mostly preferred by consumers.

RESEARCH DESIGNA research design is a framework for conducting the marketing research project. The research which we are doing is descriptive type of research as in this research we are depicting the perception of the people from different places to known the impact of VM technique on their buying decisions.

DATA COLLECTION METHODSAfter the research problem, we have to identify and select which type of data is to research, this stage; we have to organize a field survey to collect the data. One of the important tools for conducting marketing research is the availability of necessary and useful data. The two types of data collection methods are:

PRIMARY DATA

QUESTIONNAIREThis is the most popular tool for the data collection. A questionnaire contains questions that a researcher wishes to ask to his respondents and always guided by the objective of the survey. For conducting the study I prepared a questionnaire which includes close and open ended questions. Data is collected from people who are visiting the electronic outlets.

SAMPLE SIZEThe sample size of the survey was 50. The respondents who are coming to the electronic outlets like digiworld, next and dealers are asked questions related to the various Visual merchandise technique.

DATA ANALYSIS & INTREPRETATIONS

1. What is the most influencing feature that drives you inside the store?

Interpretation The above pie chart shows that 46% consumers are influenced to drives in the store by Promotional offering at the entrance followed by brand name and logo 24%.

2. You choose to shop in an outlet with good layout, moving /browsing space and ambiance?

InterpretationThe above pie chart suggest that 72% of consumer are agreed or Strongly Agreed to choose a shop with having good layout, moving space, and ambience. 20% of the consumers are neutral in their option & 8% are disagreeing to this point.

3. You choose to enter in a store because of strong Windows display?

InterpretationThe above pie chart shows that 56% of consumers are agreed or Strongly Agreed to choose a shop with having good Displays Windows. 38% of the consumers are neutral in their option & 6% are disagreeing to this point.

4. What is the most noticed feature inside store display?

InterpretationThe above pie chart reveals that 54% of consumers think Music and lighting is most noticed feature inside a store and least noticed feature is Bold Graphics.

5. In store lighting and music enhances your shopping experience?

Interpretation The above pie chart shows 74% of consumers are agreed or Strongly Agreed that store lighting and music enhances their shopping experience. 14% of the consumers are neutral in their option & 12% are disagreeing to this point.

6. From where did you get information regarding the product?

InterpretationsThe above pie chart shows that 48% of the consumers get the information regarding the product through TV ads and followed by Newspaper 20%, 18% by Internet. 7. Do you prefer the following when you go to purchase an electronic product?

Interpretations The above pie chart reveals that most of the consumer prefers to salesperson i.e. 46% to purchase electronic product inside a store followed by Posters 34% and 10% each stickers on product & catalogue.

8. Do colours , printing quality, paper quality influence your buying Decision?

Interpretations The above pie chart shows that 64% of the consumer believes that colours, printing quality, paper quality influence their buying decisions and 36 % of the consumer doesnt get influenced with these entire thing.

9. Do you think that by applying VM techniques the company can market its products in a better way?

Interpretations The above pie chart reveals that 74% of the consumers says that by applying VM techniques the company markets its product in a better way.

10. When or why do you tend to buy more than what u actually buy?

Interpretation Most of the consumers say that they go for buying to change their mood. They cant control their urge when they see a good offer & consumers buy more than they tend to buy.They feel compelled to enter the store when they see strong displays or eye-catching stores. Or a new feature which makes them to buy more than what actually they buy.An interesting promotional offer (reduced price, sales promotions etc) on in store signs. They tend to buy more.

LIMITATIONS:In spite of working under the banner of such a magnificent company and also under the guidance of highly matured, capable, and understanding people certain constraints do played the role of hindrance in the way of accomplishing the assigned task. I would definitely like to share those aspects too.

Analysis was done on the presumption that the information collected from the respondents was true and correct.

Due to the rush of customers at the dealers place they could not give time to answer the questionnaire.

Due to the nature of questions the respondents were reluctant to part with certain information or could not give accurate information.

A limited time frame i.e. of just 6 weeks, due to which we were not able to reach those destinations which we wish we would. The outlet manager and owner did not allow taking the feedback inside the outlet. People were taking less interest in giving the answers.

We cannot say that the data taken for our study is fully adequate to get the desired or accurate result.RECOMMENDATIONSThe research findings of present study have more practical orientation and which is important for the marketers. Hence, the study recommends the following.1. Visual merchandising is the most important variable in in-store environment among the tested variables. It can significantly influence on consumers store choice decisions. Therefore, application of more attractive visual merchandising materials in their promotions will help to obtain better results. The lighting, Design layout and cleanliness are the key elements of visual merchandizing programs other than product display.2. Most of customers are willing to purchase products from supper markets from 6.00p.m. to 9.00p.m. in weekdays and 10.00a.m. to 8.00p.m. in weekends. Therefore, managers can pay special attention to make attractive environment in the supermarket premises and make action to control the rush condition.3. When designing the product display, market managers should pay special attention on category layout, canola (Light ceiling), color separation, lighting box, category name of product shells.4. Damaged items on the shells and dust will make bad image towards the market outlets and design of floor tiles can make significance influence to feeling of pleasure at shopping time.5. Majority of customers respond to the music & lighting more positively. They specially mentioned that lighting helps to select correct products, reduce the time wasted and feel relaxation during the shopping tours. Therefore managers can select appropriate music & lighting system that creates satisfaction of psychological needs of customers.6. There should be proper relation between the season and the products displayed. The store environment should be warm, welcoming and friendly giving a customer a memorable shopping experience.7. The Store should be organized logically like proper groups and categories should be mentioned, so that all merchandize of one type, color, and size is positioned together helping the customer to make a clear choice.8. Visually appealing stores and outlets did help the respondents to create an image of the brand in the minds of the customers.9. Marketing collaterals quality has to be improved. Some of the marketing collaterals provides more information about the products and attracts the customer by highlighting the features. In most of the cases, I have seen that sales executive guy does not have any information about the product but just explains the things by reading these marketing collaterals like Crowner etc.10. POP material plays very important role in attracting customers by highlighting features of product etc. and hence quality of POP material needs to be improved future to match or exceed the competitors quality.

Bibliography:References:Websites-1) www.videoconworld.com2) www.google.com3) www.wikipedia.comJournals-1) Marketing journalsBooks-1) Marketing management by Philip Kotler

Annexure1. What is the most influencing feature that drives you inside the store?1. Store Exterior Graphics and Signage ( )1. Window Display Setting ( )1. Outer Glimpse of Store ( )1. Brand Name and Logo ( )1. Promotional Offering at the entrance ( Sale / Discounts) ( )2. You choose to shop in an outlet with good layout, moving /browsing space and ambiance?1. Strongly Agree ( )1. Agree ( ) 1. Neutral ( )1. Disagree ( )1. Strongly Disagree ( )3. You choose to enter in a store because of strong Windows display?1. Strongly Agree ( )1. Agree ( ) 1. Neutral ( )1. Disagree ( )1. Strongly Disagree ( )4. What is the most noticed feature inside store display?1. Bold Graphics ( )1. Music and Lighting ( ) 1. Store Layout ( )1. Creative Product Display ( )

5. In store lighting and music enhances your shopping experience?1. Strongly Agree ( )1. Agree ( ) 1. Neutral ( )1. Disagree ( )1. Strongly Disagree ( )6. From where did you get information regarding the product?1. TV ads ( )1. Newspaper ( )1. Posters ( )1. Banners ( )1. Internet ( )

7. Do you prefer the following when you go to purchase an electronic product?1. Salesperson ( )1. Posters ( )1. Stickers on Product ( )1. Catalogue ( )8. Do colors , printing quality, paper quality influence your buying Decision?1. Yes ( )1. No ( )

9. Do you think that by applying VM techniques the company can market its products in a better way?1. Yes ( ) b) No ( )10. When or why do you tend to buy more than what u actually buy?Specify:

Name:Age:Profession:

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