project report on crompton greaves fans division
TRANSCRIPT
-
8/3/2019 Project Report on Crompton Greaves Fans Division
1/31
1
Project Report On
Study on ceiling fans at CROMPTON GREAVES
Submitted in partial fulfillment
of the requirement of PGDM course of
MET College 2011
Submitted By,
Ankita Gada PG11011
Nishitkumar Dosani PG11027
Vinit Chedda PG11050
Shraddha Patel PG11055
PROJECT GUIDE
Prof. Charania
Marketing Management
MET Institute of Computer Science (MET ICS)
-
8/3/2019 Project Report on Crompton Greaves Fans Division
2/31
2
-
8/3/2019 Project Report on Crompton Greaves Fans Division
3/31
3
ACKNOWLEDGEMENT
We would like to express our sincere gratitude to all those who helped us in completing
our project.
We are grateful to Prof. Charania, MET College for encouraging us to do this project in a
practical approach.
We thank Mr. Vishal Neb, Deputy Marketing Manager, Crompton Greaves who shared
his valuable time and experience through whom we received the required information crucial for
our project.
We would also thank the Institution and other faculty members without whom this project
would have been a distant reality.
Our special thanks and appreciations to our colleagues in developing the project and our parents
who have willingly helped us out with their abilities.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
4/31
4
INDEX
SectionA
1)Profile 052)History 063)Product Line 074)Fans 085)Ceiling Fans 096)Marketing Mix 107)Competitors 218)Market Share 22
SectionB
1)Questionnaire 242)Tabulation of Data 273)Recommendation 31
-
8/3/2019 Project Report on Crompton Greaves Fans Division
5/31
5
PROFILE
As one of the world`s leading engineering corporations, CG provides end-to-end solutions,helping its customers use electrical power effectively and increase industrial productivity with
sustainability.
CG was established in 1937 in India; and, since then the Company has been a pioneer and hasretained its leadership position in the management and application of electrical energy.
CG is a part of the USD 4 billion Avantha Group, a reputed Indian Industrial conglomerate led
by its Chairman, Mr. Gautam Thapar.
Since 2005, CG has embarked upon an ambitious globalization strategy, growing both
organically and inorganically, drawing into its fold leading international companies such asPauwels, Ganz, Microsol, Sonomatra, MSE and PTS. Consequent to this globalisation, CG now
enjoys manufacturing bases in Belgium, Canada, Hungary, Indonesia, Ireland, France, UK and
US, in addition to more than twenty manufacturing locations in India, employing more than 8000
employees worldwide with diverse nationalities and cultures. A worldwide marketing network of
more than 150 representatives spans the globe, offering the entire range of CGs products,
solutions and services.
Today, CG is a public listed company, amongst the "A" (premier) category of listings on the
Bombay and National Stock Exchanges of India and its GDRs are listed on the London Stock
Exchange, with over 70,000 shareholders.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
6/31
6
HISTORY
The origins of CG can be traced back to the pioneering work of Colonel REB Crompton, who,
in 1878 founded a business at Chelmsford, Essex, England under the name of REB Crompton &Co., to engage in the manufacture and contracting of electrical equipment.
REB Crompton & Co. merged with F&A Parkinson Limited, thereby establishing Crompton
Parkinson Limited (CPL) in England. In 1937, CPL established its wholly owned Indiansubsidiary 'Crompton Parkinson Works Ltd.', in Mumbai, along with a sales organization,
'Greaves Cotton & Crompton Parkinson Ltd.'
In the year 1947, with the dawn of the independence of India, the Company was taken over by
Lala Karamchand Thapar, an eminent Indian industrialist who formed the Thapar Group. In
1966, Crompton Parkinson Works Ltd and Greaves Cotton & Crompton Parkinson Ltd. merged
to create Crompton Greaves Limited (CG) in its present form.
CG established its international manufacturing footprint in the year 2005 by acquisition of theBelgium based Pauwels Group, which gave CG additional manufacturing facilities for Power
and Distribution transformers at Belgium, Ireland, USA, Canada and Indonesia. This was
followed with a series of successful acquisitions - Ganz, Hungary in 2006; Microsol, Ireland in2007; Sonomatra, France; MSE, USA in 2008 and PTS, UK in 2010 in its quest to establish atechnology edge, increase its global market reach and enhance the product portfolio. The
business domains of the new companies that joined the CG family, has charted the way for CG
becoming a "full solutions provider" which has carved out for CG a position as a seriousinternational player and a recognized transnational corporation.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
7/31
7
PRODUCT LINE
Crompton Greaves Ltd.
Product Line
Power Systems
Transformers &Reactors
Switchgear Products
Power QualitySolutions
T & D Systems /Engineering
Solutions
Protection, Control &Automation
LV Switches & PanelProducts
Industrial Systems
Motors; High / LowVoltage
Generators /Alternators
Railway Signaling &Coach Applications
Drives & Automation
Stampings &Laminations
Consumer Products
Fans
Appliances
Lighting
Pumps
Home Automation
Integrated SecuritySystems
-
8/3/2019 Project Report on Crompton Greaves Fans Division
8/31
8
FANS
The companyearlier known as Crompton Parkinson Worksmanufactured its first ceiling fan
in 1937 at Worli, Mumbai.In 1989, Crompton Greaves Ltd. became the only company in the fan
industry to manufacture one million fans under a single roof in India. The fan with four blades isCGs innovation.
This segment is considered as bread and butter of the company. It has the biggest range of
products in fans industry. It manufactures and sells more than 90 lakhs fans per year. CG hasturnover of ` 1100 - ` 1500 Crore only from fans. CG fans are exported to several countries
throughout the world few of them are Seria, Belgium, Canada,US, UK, Australia, France, etc.
Fans
Domestic Fans
CeilingFans
Table Fan
Wall MountingFans
Pedestal Fans
DomesticExhaust Fans
Industrial & OtherFans
Industrial Fans
SpecialPurpose Fans
CoolerProducts
-
8/3/2019 Project Report on Crompton Greaves Fans Division
9/31
9
CEILING FANS
People are rediscovering that ceiling fans are cheap and energy efficient way of cooling. Apartfrom being functional and efficient ceiling fans also look good and even fantastic.
Market Segment
It seems bizarre that in a hot and humid country such as India, one of the most cost-effective
gadgets to increase personal and collective comfort should have been a luxury till recent past.
The versatility, adaptability as well as universal applicability of this wonderful machine has now
created a worldwide market that cuts across income lines and uses, ranging from the basicfunction of blowing air to more complex sophisticated tasks.
Target market of CG fans is low income group, middle class, higher middle class and very highincome group. i.e. every household is target market for company.
Brand Values
When a customer thinks of a fan the chances are that the name most top of mind is Crompton.This is the real ower of this fine brand, recognized and validated, time and again, by Indian
consumer studies.
Over the years, the powerful brand recall the identity of fans with Crompton has impacted
not only dealers but also consumers. Crompton fans signify and embody trust, unimpeachable
quality, reliability and a sense of belonging. The brand has been generational in character, like a
family that has grown up with, inspiring and been inspired by its customers. The brand has neverfallen behind trends; it has led them. The legacy of the fan that keeps working from year to year
is the special bonding it has forged with its customers a tie that has only grown stronger with
time.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
10/31
10
Marketing Mix
Product
CG ceiling fans are broadly divided into 4 categories. Following are some of the
fans with the features.
Under light Ceiling Fans
Zephyr
Motor with Unique Acrylic covers. 5 Acrylic Blades and 3 beautiful lamp shades.
Jupiter
-
8/3/2019 Project Report on Crompton Greaves Fans Division
11/31
11
5 blades with decorative shanks,Four lampshades, pull cords for speed and light control,
Aristocratic design.
Decorative Ceiling Fans
Lerone
An Aesthetically very well crafted designer fan, Inspired from the smooth flowing floral designs.
Imperial
Cool Exciting Looks, Contrasting Colour Trims Complements ceiling.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
12/31
12
BEE Star Rated Fans
Aeromach
BEE 5 Star Labeled Ceiling Fan. Beautifully Crafted & Styled model with Silent Performance
Greater Reliability & Higher Air Delivery
High Breeze Plus
BEE 5 Star Labeled Ceiling Fan. "Tried & Tested" Model with Silent Performance
Greater Reliability & Higher Air Delivery
-
8/3/2019 Project Report on Crompton Greaves Fans Division
13/31
13
Standard Fans
High Speed
Standard fan with painted Golden Ring on Motor
Olga
Diverging Blades, Concentric Painted Gold Rings on Motor
The estimated life of a CG Fans is approximately 15 years.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
14/31
14
Company always strives to give out quality products following the IS374 standards. Company gives 2 years of guarantee on fans.
Product Life Cycle
Product Life Cycle (PLC) is a term used to describe individual stages in the life of a product.Product life cycle is an important aspect of conducting business which affects strategic planning.
The productlifecycle method identifies the four main stages affecting sales of a product, from
the product's inception until its retirement.
INTRODUCTION: The company earlier known as Crompton Parkinson Works manufactured its first ceiling fan in 1937 at Worli, Mumbai. Later these were manufactured at
Kanjur Marg in Mumbai until the early 1980s.
GROWTH: The Major growth period observed by CG especially in case of ceiling fans was1985 onwards. CG fans division has a number of firsts to its credits as follows..
First company to introduce Under light ceiling fans1985 First company to introduce 4 Blades Deco fans1985 First company to manufacture 1 million units under single roof in India 1989 First fan manufacturing company to introduce fans to suit all pockets in all varieties
1992.
Last five years proved to be excellent for CG fans where they experienced growth of32% - 35% per yearMATURITY: CG claims that it has reached its saturation point in terms of ceiling fans in last 2years. It is enjoying market leadership. Company is just concentrating on innovation in the
products to maintain its share in market and keep up with the competition. Companys emphasis
is on brand and feature differentiation. But one aspect that contradicts the theory is the pricerange which does not drop.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
15/31
15
DECLINE: The first quarter of 2011 has proved insignificant in terms of ceiling fans ascompared to previous years.
Packaging
Ceiling fans are broadly divided into 4 Size.
Small Size Fans36 or lessComplete fan viz. motor, canopy set, regulator and blade set packed in one small box.
Medium Size Fans 37 48Motor, regulator, canopy set packed individually in printed cartons. Blades sets packed in
separate boxes.
Standard Size Fans 49 55Motor, regulator, canopy set packed individually in printed cartons. Blades sets packed in
separate boxes.
Large Size Fans 56 and largerMotor and regulator is packed in printed cartons, canopy set and Blades are packed separately in
different boxes.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
16/31
16
Price
Price basically depends on market forces.As being a market leader, CG follows premium pricing policy where the premium would be 10%
- 15% as compared to other brands.
Price Range of CG Fans
Categories Price Range (`)Under Light Fans 300010000
Decorative Fans 16002000
BEE Star Rated Fans 13001700
Standard Fans 11001500
Price varies according to the market, purchasing power of Customers and VATapplicable.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
17/31
17
Place
Market Coverage:c
Place depends on the width and depth of the market coverage.
Crompton fans has its market all over India & are exported to the US, the UK, Australia, Italy,
France, Spain, Greece, Lebanon, Singapore, the UAE, Oman, South Africa, Canada, Sri Lanka
and several countries in Africa.
Width analysis of market means the number of dealers and retailers of the company; depth
analysis means stock of cg fans at each counter.
Distribution Channel:
The distribution channel for India is as follows:
Manufacturer Distributer Wholesaler
CommissionAgent
RetailerDealer
customer
-
8/3/2019 Project Report on Crompton Greaves Fans Division
18/31
18
The manufacturing units of CG fans are at Goa and Himachal Pradesh from where thedistribution channel starts. Focusing on Mumbai & surrounding areas it goes as follows.
The channel is basically DEALER oriented. Company concentrates on increasing the number of
dealers.
At present there are 105 dealers in Mumbai and 1000 plus at India level. Company perceives thatrather than giving more material to debtor, its preferable to appoint new dealer.
Goa PlantBhiwandiGodown
Distributers (In& around
Mumbai)
DealersRetailers
-
8/3/2019 Project Report on Crompton Greaves Fans Division
19/31
19
Promotion
Advertising: It is believed in the advertising world that ultimately a product will sell on its own
merit thus underlining the significant role of word-of- mouth. This adage is best illustrated inthe positive feedback Crompton fans generate from satisfied customers. In many pockets of the
country, the brand has almost become generic to fans.
As CG fans have reached its maturity stage, company does not go for extensiveadvertisement. Company believes that product enjoys premium position in market so
spending huge amount in advertising wont give proportionate returns.
Latest TV advertisement of CG fans was done in 2005. Recently hoardings were put upacross the big cities to communicate the change in brand name from
Crompton Greaves to CG.
To ensure that the customer is effectively updated on new product developments, thecompany has identified the sales counter as its first point of contact. Crompton provides
product information leaflets and catalogues at all these locations, besides also dynamically
displaying its range banners. Catalogs are also uploaded online in pdf format to make
selection easier and also convenient.
The sports section of national dailies carried sustained advertising for Crompton fansduring the first round of the IPL cricket series.
Some newspaper ads, posters, billboards and banner ads are also done by its dealers.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
20/31
20
Sales promotion- Media and non-media marketing communication are employed for a pre-
determined, limited time to increase consumer demand, stimulate market demand or improve
product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates,
tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.
Sales promotion drives at the regional level ensure that Crompton fans can be seen onhigh-visibility locations such as front-lit hoardings, gantries, bus and metro panels,
road shows and mobile vans.
Crompton Greaves is notably present at most national exhibitions for electrical goods.Prominent amongst these is Elecrama and Gridtech which provide the company high
visibility platforms to promote its wares on a large scale.
In the Hannover and the Dubai Electricity Fairs, Crompton Greaves stalls withbanners, display logos, glossy handbooks are must-visit destinations. At these fairsthe company sends out a powerful message: it can compete with any world-class
company and benchmark its products and technologies with the best inthe business.
Public relations- Paid intimate stimulation of supply for a product, service, or business unit
by planting significant news about it or a favorable presentation of it in the media. Examples:
Newspaper and magazine articles/reports, TVs and radio presentations, charitable
contributions, speeches, issue advertising, and seminars.
These activities are done for the company, as whole. Annual reports and speeches oftop level management are been published periodically.
Corporate image - The Image of an organization is a crucial point in marketing. If the
reputation of a company is bad, consumers are less willing to buy a product from this
company as they would have been, if the company had a good image.
CG has developed a very good corporate image. Customers look up to the companyand its products for quality, durability and reliability. It enjoys the image of a pioneer
in motor manufacturing for transformer and fans etc.
http://en.wikipedia.org/wiki/Sales_promotionhttp://en.wikipedia.org/wiki/Sales_promotionhttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Corporate_imagehttp://en.wikipedia.org/wiki/Corporate_imagehttp://en.wikipedia.org/wiki/Corporate_imagehttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Sales_promotion -
8/3/2019 Project Report on Crompton Greaves Fans Division
21/31
21
Competitors
In a hot country like India fans are a relief. Over the years it has come from being hand held
banana leaves to remote controlled multicolor designer fans fitted with exotic lights. Thetechnology involved in the ceiling fans as compared to other electrical appliances is low. This
has led to wide proliferation of the industry by many small scale manufactures. Industry faced
overall decline in sales and also experienced defaults in last two years because of recession
effects. Some facts of industry are as follows:
Very low product differentiation between competing brands. No major international company has entered into this sector even after liberalization. Rural market constitutes major parts of sales. Fakes and Trademark violations are rampant. Second hand market is very big. Unorganized sector is also influential.
The competition from small scale manufacturers was worrying the big players. Since VAT has
been introduced, the impact of small players is reduced. The major competitors of CG are:
1. ORIENT PSPO2. USHA3. HAVELLS4. BAJAJ5. KHAITAN
Market positioning
Fan being a product of necessity, the industry is full of homogenous products. So when it comes
to product differentiation CG is known for its quality and durability.
CG being one of the oldest brand in this industry and is well known in the older generation. But
CG failed to position its product in minds of young generation. Lack of communication and
promotional activities has resulted in this situation.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
22/31
22
Market share
Market share is the percentage of a market (defined in terms of either units or revenue)
accounted for by a specific entity.Market share is a key indicator of market competitivenessthat is, how well a firm is doing
against its competitors.
The market share of CG in comparison with its competitors is as follow:
25%
17%
19%
15%
7%
7%
10%
Market Share
Crompton Greaves
Orient PSPO
Usha
Bajaj
Havells
Khaitan
Others
-
8/3/2019 Project Report on Crompton Greaves Fans Division
23/31
23
Orient PSPO:
Orient Fans has also seen much recognition in the past. For instance, PSPO technology,
developed for fans in the 90s, provides more cool air to every corner of a room. Today, this
patented path breaking technology has raised the bar in the industry and continues to be a
milestone achievement in the industry.
Latest TV advertisement of orient PSPO was done in 2011. It was a series of advertisement
starring M.S.Dhoni with the jingle Kone kone main hawaa de Orient PSPO. Advertisement
highlighted the problems like energy consumption, noisy working, poor looks that are faced by
the users of other brands & its solution was Orient PSPO.
Usha:
Company started manufacturing fans in 1948. Latest TV advertisement was made in 2009 emphasizing on energy saving feature of Usha
fans.
High sales promotion campaigns organized.
Havells:
Havells has made a lot of innovations in case of fans. Some of them are as follows:
Wooden blades made of high quality Fans operated by remote control Fans with low voltage Powerful motors with silent operators Adjustable spot lights
Bajaj:
Bajaj is also one of the oldest company in this industry, some of its innovations are:
Kids specialDisney fans Ceiling fans with remote control and a new innovation speed regulation with
light dimmer
One year warranty The only company with six blade fans.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
24/31
24
Market Research
QUESTIONNAIRE
Name:
Age:
Occupation:
Gender: Male [ ] Female [ ]
1) Who takes decisions about the electrical appliances to be purchased in your house?[ ] Self
[ ] Spouse
[ ] Children
[ ] Parents.
2) At present how many ceiling fans are there at your house?[ ] 12
[ ] 34
[ ] 56
[ ] More than 7
3)
For how many hours a day, on an average do you keep your ceiling fan switched on?[ ] 16 Hrs
[ ] 712 Hrs
[ ] 1318 Hrs
[ ] 1924 Hrs
4) How often do you buy a ceiling fan?[ ] 15 Yrs
[ ] 610 Yrs
[ ] 1115 Yrs
[ ] More than 15 Yrs
5) How much would you like to spend on a ceiling fan?[ ] Rs. 750Rs. 1250
[ ] Rs. 1251Rs. 2500
[ ] Rs. 2501Rs. 4000
[ ] More than Rs. 4000.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
25/31
25
6) When you hear about ceiling fans, which brand comes to your mind?______________________________________________________________________
7) Which factors would you take into consideration while buying a ceiling fan?[ ] Features
[ ] Energy efficiency[ ] Price
[ ] Brand name
[ ] Recommendation of electrician
8) Which of the following brands have you used before and are using currently?Used before Using currently
Bajaj
Orient PSPO
Crompton Greaves
Havells
Usha
Any others (pls. specify)
_______________________________
9) Have you ever heard about Crompton Greaves Fans?[ ] Yes
[ ] No
10)From which of these sources did you get information about Crompton Greaves Fans?[ ] Television
[ ] Newspaper
[ ] Hoardings
[ ] Word of Mouth
[ ] Internet
[ ] Others. Pls. Specify __________________________________________________
11)How would you rate the availability of Crompton Greaves Fans?[ ] Very convenient[ ] Convenient
[ ] Satisfactory
[ ] Inconvenient
[ ] No Idea
-
8/3/2019 Project Report on Crompton Greaves Fans Division
26/31
26
12)Rate Crompton Greaves FansExcellent Good Average Poor
Models [ ] [ ] [ ] [ ]
Colour [ ] [ ] [ ] [ ]
Quality [ ] [ ] [ ] [ ]
Discounts [ ] [ ] [ ] [ ]After Sales Services [ ] [ ] [ ] [ ]
No Idea [ ]
13)Would you like to change the brand of the ceiling fan being used currently?[ ] Yes [ ] No
If yes, specify _________________________________________________________
This questionnaire was surveyed to 50 consumers of ceiling fans falling into different agegroups. The statistics of the survey have been calculated and its analysis is as follows.
-
8/3/2019 Project Report on Crompton Greaves Fans Division
27/31
27
Analysis: 60% of the consumers of ceiling fans have usage of fans about 13-18 hrs / day.
Analysis: more than 50% people buy fans between 6 to 10 years.
4%
18%
60%
18%
Usage of Ceiling Fans (In Hrs)
1 - 6 Hrs
7 - 12 Hrs
13 - 18 Hrs
19 - 24 Hrs
2%
52%36%
10%
How often Do People Buy Fans (In Yrs)
1 - 5 Yrs
6 - 10 Yrs
11 - 15 Yrs
More than 15 Yrs
-
8/3/2019 Project Report on Crompton Greaves Fans Division
28/31
28
Analysis: 54% of the customers are ready to spend in the range of` 1251` 2500.
Analysis: the competition being on its peak, CG, Bajaj and Orient PSPO are the most preferredbrands.
14%
54%
22%
10%
Money Spent on the Ceiling Fans
Rs. 750 - Rs. 1250
Rs. 1251 - Rs. 2500
Rs.2501 - Rs. 4000
More Than Rs. 4000
30%
28%
26%
12%
4%
Brand Awareness
Crompton Greaves
Bajaj
Orient PSPO
Usha
Havells
-
8/3/2019 Project Report on Crompton Greaves Fans Division
29/31
29
Analysis: The pie-chart indicates that the customers give more importance to Brand and Price
while buying.
Analysis: The graph indicates that customers have shifted from other brands to CG in recent
years, and Havells has emerged as one of the major competitors to this industry.
20%
14%
26%
29%
11%
Factors Taken into Consideration
Features
Energy Efficiency
Price
Brand
Recommendation
Bajaj Orient PSPO CG Havells Usha Others
2523
19
0
12
1
12
15
27
9
52
Brands Used Before Vs Brands Currently used
Used Before Using Currently
-
8/3/2019 Project Report on Crompton Greaves Fans Division
30/31
30
Analysis: It is believed in the advertising world that ultimately CG sells on its own merit thusunderlining the significant role of word-of- mouth.
11%
4%
17%
49%
6%
13%
Sources of Information
Television
Newspaper
Hoardings
Word of Mouth
Internet
Others
28%
40%
8%
0%
24%
Availability
Very Convenient
Convenient
Satisfactory
Inconvenient
No Idea
-
8/3/2019 Project Report on Crompton Greaves Fans Division
31/31
Analysis: the graph shows that CG fans are well known for it quality and models.
RECOMMENDATIONS
1) CG has to come up with new attractive tv commercials to get more known amongst theyouth.
2) CG has to bring about more sales promotion campaigns to sustain its brand image in thiscompetitive market.
3) CG should provide more discounts and after sales service in order to retain its marketshare.
0
5
10
15
20
25
30
35
40
45
50
Models Colour Quality Discount After Sales
Ratings of CG Fans
Excellent Good Average Poor No Idea