retailers role in demand creation

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PROJECT REPORT ON

Retailers role in Demand Creation

(With respect to Car Audio systems)

BY

Rahul Prasad

H.T. No. 332-09-01824

[Submitted in partial fulfillment for the award of

Bachelor of commerce in (Honours)]

ST.JOSEPHS DEGREE COLLEGE

(Affiliated to Osmania University)

KING KOTI, HYDERABAD

2009-2011

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A PROJECT REPORT ON

RETAILERS ROLE IN DEMAND CREATION

(With respect to Car Audio systems)

PROJECT SUBMITTED

TOOSMANIA UNIVERSITY

IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE

OF BACHELOR OF COMMERCE [HONOURS]

BY

RAHUL PRASAD

[332-09-01824]

SUBMITTED TO DEPARTMENT OF COMMERCE

St. JOSEPHS DEGREE & P.G. COLLEGE

[AFFILIATED TO OSMANIA UNIVERSITY]

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HYDERABAD 2009 2011

CERTIFICATE:

This is to certify that, the project work titled RETAILERS ROLE IN DEMAND

CREATION (with respect to Car Audio systems) is being submitted by

RAHUL PRASAD bearing Roll number 332-09-01824 in partial fulfillment for the

award of the Bachelor of Commerce (Hons) at St. Josephs Degree College to the

Osmania University is a record of the bonafide work carried out by him under the

guidance and supervision of Internal Guide.

This project work has not been submitted to any other university or institute for the

award of any degree or diploma.

Rev. Fr. V.K Swamy Mrs. Mary Vinaya Sheela

Principal Head of Department

Mrs. Nisha Mathur

Internal Guide External Examiner

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CERTIFICATE

This is to certify that the project titled RETAILERS ROLE IN DEMAND

CREATION (with respect to Car Audio systems) bearing roll no. 332-09-

01824 in partial fulfillment for the award of the degree of bachelor of

commerce(honors), submitted to Osmania University.

This report is an authentic work done by him under my guidance. This project work

has not been submitted to any other university or institute for the award of any

degree or diploma.

Place: Mrs. NishaMathur

Date: (Internalguide)

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DECLARATION

I RAHUL PRASAD hereby declare that the project titled RETAILERS ROLE

IN DEMAND CREATION (with respect to Car Audio systems) is my

original work and is submitted towards the partial fulfillment for the award of

Degree in Bachelors of Commerce (Honours) of Osmania University. The project

has not been submitted to any other university for the awards of any other degree or

diploma.

I further declare that this is an original work done and this has not been submitted to

other university/institution for award of any degree/diploma.

Place: Hyderabad (RAHUL PRASAD)

Date: Ht.No.332-09-01824

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ACKNOWLEDGEMENT

This Project would not have been completed without the support from the following

eminent personalities.

Its a great privilege to express my profound gratitude to

REV. FR. V.K. Swamy, Principal St. Josephs degree and P.G College and

Mrs. Vinayasheela [H.O.D; commerce Dept] for their valuable assistance and

guidance throughout the project.

I am acknowledging my thanks to Mrs. Nisha Mathur (Internal Guide) for her close

guidance, encouragement and great suggestions for critical points during my projectstudy period.

In the due course I was encouraged and inspired by many other close associates, I

am thankful to one and all who have extended their help in the completion of this

project work.

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INDEX:

CHAPTER

NO.

CONTENTS PAGE NO.

1.

2.

3.

4.

INTRODUCTION1. Introduction2. Literature Study3. Objectives4. Research Methodology5. Limitations6. Scope

OVERVIEW

1. Retail

2. Consumer Durables3. Demand Creation4. Market Players Under Car Audio Segment

DATA ANALYSIS AND INTERPRETATION

SUMMARY & CONCLUSSIONS

1. Findings2. Conclusions3. Suggestions

BIBLIOGRAPHY

ANNEXURE

1114445

6

7

181921

36

47

485155

56

57

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Chapter 1Introduction

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Chapter 1

1. Introduction

This research is done to find out the role played by Retailers in the retail

industry, basically the role of Retailers in the Consumer Durable segment

(Consumer Electronics: Car Audio). The retail industry in our country is at

boom and getting organized day by day, the demands of customers are not just

great products but also great shopping experience and to make this possible a

retail outlet should have efficient sales force. This study is made to know how

efficiently the sales people of retail industry in Car Audio segment are in

promoting Consumer Durables.

The retail industry in INDIA has changed its face and approach. Sales people

working in this industry play major role in handling the customers effectively.

This study is done to evaluate the retail industry in Consumer Durable Segment

and also to understand how the organisations in Car Audio market is partially

dependant upon the Retailers in achieving their sales objectives.

2. Literature Study

The Retailer's Role In Quality Retailing - The Emerging Scenario

In India:

The Indian retail industry is thriving today. There is stiff competition among Indianand foreign retailers to attract customers and retain them. In this tug-of-war, qualityretailing has emerged as the solution. The retailer who provides quality products andservices along with a quality shopping experience succeeds in the long run.

The quality of the product offered by the retailer has two aspects - the perceived

quality and the actual quality. Perceived quality or point of sale quality refers to the

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image that the customer has about the product while buying it. The actual qualityor the point of use quality is the quality of the product that the consumer experiences

while using it. The retailer plays a very important role in building up perceivedquality with the use of attractive display. The retailer is in direct contact with thecustomers and so he can play a significant part in helping the manufacturer reducethe gap between actual and perceived quality. The retailer should also ensure qualityat the various stages of the supply chain so that the quality of the product is notaffected.

Another important factor to be considered for quality retailing is the quality of the

services provided to the customer. Today's customer wants a unique shopping

experience. Retailers are striving to help customers enjoy their shopping expedition

as much as possible. The difference between shopping in India and shopping abroad

is reducing gradually, particularly with several large malls coming up all over India.

Customer mentality is different in different countries. Particularly in India, there are

huge cultural differences among the people of different states, which in turn affect

their buying behavior. In this scenario, it becomes necessary for the retailer to

survey the customers' culture and expectations so that he can train his staff to

appropriately meet these expectations.

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Role of Retailers in Shaping a Firms Strategic

Direction:

Research across emerging markets of Asia, Africa and Latin

America breaks six common myths about emerging

consumers) (Richards, 1998). Although poor relative to the

upper consumer segments, these consumers spend a great

deal of money on consumer products. When shopping, they

follow a quite rational and sophisticated behaviour as they

seek to reconcile preferences with their economic reality.

They have a distinct set of product and format needs which

does not necessarily include whatever is lowest cost, credit,

or responding to shelf prices. The personal relationships and

sense of community they seek is a strong incentive to shop

in small-scale retail formats. Furthermore, differences within

emerging consumers imply that companies both

manufacturers and retailers need a differentiated

proposition to address the needs of this group. Also sub-

segments could be identified among emerging consumers,

based on economic or behavioural patterns (not necessarily

on geographical or country criteria).

Objectives

To study the working of Car Audio market.

To know various strategies by the organisations on the Retailers.

To study sales promotion by retailers.

Research Methodology

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Data Collection:

Data collection consists of two. They are:

Primary Data: Data originally collected in the process of investigation are

known as primary data.The primary data has been collected through

Questionnaire.

Secondary Data: Secondary data are those already in existence from some

other purpose than the answering of the questions in hand. The secondary

data has been collected through internet, magazines, news papers and Field

Professionals.

Data Analysis:

Data Analysis can be done by various methods; statistical tool employed in

analysing data is Column Diagram.

Limitations

Due to time constrain the sample size has been limited to 50.

Study relates only to Car Audios.

As no survey was made on this segment lack of information was another

limiting factor.

Retailers knowledge is biased.

Scope

The scope of this study is limited to retailers. This study has been conducted to

know as to how retailers help organisations reach customers, who are not aware

of Mobile entertainment.

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Chapter 2

Overview

1. Retail

Retail consists of the sale of goods or merchandise from a fixed location, such as a

department store, boutique or kiosk, or by mail, in small or individual lots for direct

consumption by the purchaser. Retailing may include subordinated services, such as

delivery. Purchasers may be individuals or businesses. In commerce, a "retailer"

buys goods or products in large quantities from manufacturers or importers, either

directly or through a wholesaler, and then sells smaller quantities to the end-user.

Retail establishments are often called shops or stores. Retailers are at the end of the

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supply chain. Manufacturing marketers see the process of retailing as a necessary

part of their overall distribution strategy. The term "retailer" is also applied where a

service provider services the needs of a large number of individuals, such as a public

utility, like electric power.

Shops may be on residential streets, shopping streets with few or no houses or in a

shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping

street has a partial or full roof to protect customers from precipitation. Online

retailing, a type of electronic commerce used for business-to-consumer (B2C)

transactions and mail order, are forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to

obtain necessities such as food and clothing; sometimes it is done as a recreational

activity. Recreational shopping often involves window shopping (just looking, not

buying) and browsing and does not always result in a purchase.

The Global Retail Industry: An Overview

Retail has played a major role world over in increasing productivity across a wide

range of consumer goods and services .The impact can be best seen in countries like

U.S.A., U.K., Mexico, Thailand and more recently China. Economies of countries

like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted

by the retail sector. Retail is the second-largest industry in the United States both in

number of establishments and number of employees. It is also one of the largest

world wide. The retail industry employs more than 22 million Americans and

generates more than $3 trillion in retail sale annually. Retailing is a U.S. $7 trillion

sector. Wal-Mart is the worlds largest retailer. Already the worlds largest

employer with over 1million associates, Wal-Mart displaced oil giant Exxon Mobil

as the worlds largest company when it posted $219 billion in sales for fiscal 2001.

Wal-Mart has become the most successful retail brand in the world due its ability to

leverage size, market clout, and efficiency to create market dominance. Wal-Mart

heads Fortune magazine list of top 500 companies in the world. Forbes Annual List

of Billionaires has the largest number (45/497) from the retail business.

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GLOBAL RETAIL (Source: CSO, MGI Study)

1999 2002 2005

Total Retail (US$ Billion) 150 180 225

Organised Retail (US$ Billion) 1.1 3.3 7

% Share of Organised

retail

0.7 1.8 3.2

Retail Scenario in India: Touching Meteoric Scales

The Indian retail industry is the fifth largest in the world. Comprising of organized

and unorganized sectors, India retail industry is one of the fastest growing industries

in India, especially over the last few years. Though initially, the retail industry in

India was mostly unorganized, however with the change of tastes and preferences of

the consumers, the industry is getting more popular these days and getting organized

as well. With growing market demand, the industry is expected to grow at a pace of

25-30% annually. The India retail industry is expected to grow from Rs. 35,000

crore in 2004-05 to Rs. 109,000 crore by the year 2010.

As the corporates the Piramals, the Tatas, the Rahejas, ITC, S.Kumars, RPG

Enterprises, and mega retailers- Crosswords, Shoppers Stop, and Pantaloons race to

revolutionize the retailing sector, retail as an industry in India is coming alive. Retail

sales in India amounted to about Rs.7400 billion in 2002, expanded at an average

annual rate of 7% during 1999-2002. With the upturn in economic growth during

2003, retail sales are also expected to expand at a higher pace of nearly 10%. Across

the country, retail sales in real terms are predicted to rise more rapidly than

consumer expenditure during 2003-08. The forecast growth in real retail salesduring 2003- 2008 is 8.3% per year, compared with 7.1% for consumer expenditure.

Modernization of the Indian retail sector will be reflected in rapid growth in sales of

supermarkets, departmental stores and Hypermarts. Sales from these large-format

stores are to expand at growth rates ranging from 24% to 49% per year during 2003-

2008, according to a latest report by Euromonitor International, a leading provider

of global consumer-market intelligence.

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A. T. Kearney Inc. places India 6th on a global retail development index. The

country has the highest per capita outlets in the world - 5.5 outlets per 1000

population. Around 7% of the population in India is engaged in retailing, as

compared to 20% in the USA. In a developing country like India, a large chunk of

consumer expenditure is on basic necessities, especially food-related items. Hence,

it is not surprising that food, beverages and tobacco accounted for as much as 71%

of retail sales in 2002. The share of food related items had, however, declined over

the review period, down from 73% in 1999. This is not unexpected, because with

income growth, Indians, like consumers elsewhere, have started spending more on

non-food items compared with food products. Sales through supermarkets and

department stores are small compared with overall retail sales. Nevertheless, their

sales have grown much more rapidly, at almost a triple rate (about 30% per year

during the review period). This high acceleration in sales through modern retail

formats is expected to continue during the next few years, with the rapid growth in

numbers of such outlets due to consumer demand and business potential. The factors

responsible for the development of the retail sector in India can be broadly

summarized as follows:

Rising incomes and improvements in infrastructure are enlarging consumer

markets and accelerating the convergence of consumer tastes. Looking at income

classification, the National Council of Applied Economic Research

(NCAER) classified approximately 50% of the Indian population as low income in

1994- 95; this is expected to decline to 17.8% by 2006-07.

Liberalization of the Indian economy which has led to the opening up of the

market for consumer goods has helped the MNC brands like Kelloggs, Unilever,

Nestle, etc. to make significant inroads into the vast consumer market by offering a

wide range of choices to the Indian consumers.

Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.

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The internet revolution is making the Indian consumer more accessible to the

growing influences of domestic and foreign retail chains. Reach of satellite T.V.

channels is helping in creating awareness about global products for local markets.

About 47% of Indias population is under the age of 20; and this will increase to

55% by 2015. This young population, which is technology-savvy, watch more than

50 TV satellite channels, and display the highest propensity to spend, will

immensely contribute to the growth of the retail sector in the country. As India

continues to get strongly integrated with the world economy riding the waves of

globalization, the retail sector is bound to take big leaps in the years to come. The

Indian retail sector is estimated to have a market size of about $ 180 billion; but the

organised sector represents only 2% share of this market. Most of the organised

retailing in the country has just started recently, and has been concentrated mainly in

the metro cities. India is the last large Asian economy to liberalize its retail sector.

In Thailand, more than40% of all consumer goods are sold through the super

markets and departmental stores. A similar phenomenon has swept through all other

Asian countries. Organised retailing in India has a huge scope because of the vast

market and the growing consciousness of the Consumer about product quality and

services. A study conducted by Fitch, expects the organized retail industry to

continue to grow rapidly, especially through increased levels of penetration in larger

towns and metros and also as it begins to spread to smaller cities and B class towns.

Fuelling this growth is the Growth in development of the retail-specific properties

and malls. According to the estimates available with Fitch, close to 25mn sq. ft. of

retail space is being developed and will be available for occupation over the next 36-

48 months. Fitch expects organized retail to capture 15%-20% market share by2010. A McKinsey report on India says organised retailing would increase the

efficiency and productivity of entire gamut of economic activities, and would help

in achieving higher GDP growth. At 6%, the share of employment of retail in India

is low, even when compared to Brazil (14%), and Poland (12%).

Growth of Indian Retail:

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According to the 8th Annual Global Retail Development Index (GRDI) of AT

Kearney, India retail industry is the most promising emerging market for

investment. In 2007, the retail trade in India had a share of 8-10% in the GDP

(Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected

to reach 22% by 2010.

According to a report by Northbride Capita, the India retail industry is expected to

grow to US$ 700 billion by 2010. By the same time, the organized sector will be

20% of the total market share. It can be mentioned here that, the share of organized

Different Forms of Retailing: Emergence of new formats of

Retailing in India

Popular Formats:

Hypermarts

Large supermarkets, typically (3,500 - 5,000 sq. ft)

Mini supermarkets, typically (1,000 - 2,000 sq. ft)

Convenience store, typically (750 - 1,000 sq. ft)

Discount/shopping list grocer

Traditional retailers trying to reinvent by introducing self-service formats as

well as value-added services such as credit, free home delivery etc. The Indian

retail sector can be broadly classified into:

a) Food Retailers

There are large number and variety of retailers in the food-retailing sector.

Traditional types of retailers, who operate small single-outlet businesses mainly

using family labour, dominate this sector .In comparison, super markets account

for a small proportion of food sales in India. However the growth rate of super

market sales has being significant in recent years because greater numbers of

higher income Indians prefer to shop at super markets due to higher standards of

hygiene and attractive ambience.

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Examples of Food Retail outlets:

Below are some of the well known Food Retailers

Goods being displayed in the Vegetable market.

Goods being displayed in a super market.

b) Health &

Beauty

Products

With growth in income levels, Indians have started spending more on health and

Beauty products .Here also small, single-outlet retailers dominate the market.

However in recent years, a few retail chains specializing in these products have

come into the market. Although these retail chains account for only a small share

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of the total market , their business is expected to grow significantly in the

future due to the growing quality consciousness of buyers for these products .

Examples ofHealth care products in a Retail Outlet.

Beauty products being displayed in a departmental store & a body care store.

c) Clothing & Footwear

Numerous clothing and footwear shops in shopping centers and markets operate

all over India. Traditional outlets stock a limited range of cheap and popular

items; in contrast, modern clothing and footwear stores have modern products

and attractive displays to lure customers. However, with rapid urbanization, and

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changing patterns of consumer tastes and preferences, it is unlikely that the

traditional outlets will survive the test of time.

Examples of Garment Retail Outlets:

Examples of Footwear Retail Outlets:

d) Home Furniture & Household Goods

Small retailers again dominate this sector. Despite the large size of this market,

very few large and modern retailers have established specialized stores for these

products. However there is considerable potential for the entry or expansion of

Specialized retail chains in the country.

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Examples of Furniture Retail store:

Examples of Household Retailstore:

e) Durable Goods

The Indian durable goods sector has seen the entry of a large number of foreign

Companies during the post liberalization period. A greater variety of consumer

Electronic items and household appliances became available to the Indian

customer. Intense competition among companies to sell their brands provided a

strong impetus to the growth for retailers doing business in this sector.

Examples of Durable Goods:

Consumer Electronic goods Store:

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f) Leisure & Personal Goods

Increasing household incomes due

to better economic opportunities

have encouraged consumer

expenditure on leisure and personal goods in the country. There are specialized

retailers for each category of products (books, music products, Etc.) in thissector. Another prominent feature of this sector is popularity of franchising

agreements between established manufacturers and retailers.

Examples of Leisure & Personal Goods Retail Outlets:

Personal Goods:

Leisure Goods:

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Definition of a Retailer:

a business which sells goods to the consumer, as opposed to a wholesaler or

supplier which normally sell their goods to another business. Retailers

include large businesses such as Wal-Mart, and also smaller, non-chain

locations run independently such as a family-run bookstore.

2. Consumer Durables

Consumer durables are the products whose life expectancy is at least 3 years. These

products are hard goods that cannot be used up at once. Consumer durables involve

any type of products purchased by consumers that are manufactured for long-term

use. As opposed to many goods that are intended for consumption in the short term

Consumer Durables are intended to endure regular usage for several years or longer

before replacement of the consumer product is required. Just about every household

will contain at least a few items that may be properly considered to be of a

consumer durable nature. One of the most common of all consumer durables would

be the furniture found in the home. This would include items such as sofas, chairs,

tables, bed frames, and storage pieces such as chests of drawers and bookshelf units.

While once thought to be limited to only items made of sturdy metal or wood, any

type of furniture today that is intended for use over the period of at least a few years

can rightly be classified as consumer durables.

Another common example of customer durables in the possession of most

households is appliances. These items may include ovens, refrigerators, toasters, and

gas or electric water heaters. Consumer Durables of this type are intended for use on

a continuing basis, and often are sold with some type of warranty or service contract

that helps to ensure the appliance will continue working for an appreciable period of

time.

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The family car is also understood to be among the

various consumer durables owned by many households. Considered a major

investment by many consumers, the expectation is that the vehicle will remain

operational for at least the amount of time it takes for the consumer to pay off any

loans associated with the acquisition. Further, consumers anticipate that the vehicle

can be utilized on a regular basis without fear of being destroyed by the frequent

usage.

3. Demand Creation

The business process flow is: Business plan to potential customer; potential

customer to sales; sales to product design (if applicable), product design to produce

and deliver (if applicable); produce and deliver to customer and customer to bank.

The exact flow depends on the particular business model adopted. With this

approach, there would be one process that creates a demand for the organizations

products and services and another that fulfils that demand. These are often referred

to as marketing and production but these are labels given to departments therefore

we need a different term to avoid confusion. A suitable name for the process that

creates a demand might be Demand creation process. Other names might be

marketing process or Sales and Marketing Process.

Demand Creation Strategies:

One of marketing's most critical roles is to develop demand. Through a combination

of business processes, integrated marketing campaigns and lead development tools,

a demand center must be established to drive demand in quantifiable measures and

to clearly demonstrate the impact on topline revenue.

Demand creation is constantly evolving, and requires unique operational insight to

ensure that all its elements are fully optimized. New strategies, technologies and

tactics are available for marketing evaluation; best practices are ready and waiting to

be explored and implemented; benchmark data is a necessity to demonstrate the

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success of the demand center against industry peers; and finally, innovative

strategies should be consider to effectively integrate with and optimize sales.

Demand Creation Strategies (DCS) provides senior marketing management with

operational intelligence on demand creation to support todays strategic and tactical

lead development initiatives. DCS compliments Executive Edge, our flagship

advisory service, by combining benchmark data on lead development, analytic

decision models designed to assist in the evaluation of your lead development

programs, and thought-provoking research to support effective decision-making.

Purpose:

Penetrates new markets and exploits existing markets with products and a

promotional strategy that influences decision makers and attracts potential

customers to the organization. New product development would form part of this

process if the business were market driven.

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4. Market Players under Car Audio Segment28


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Sonys Story

It was in 1946 that Masaru Ibuka and Akio Morita together with a small team of

passionate and committed group of employees started to build Tokyo Tsushin

Kenkyujo (Totsuko), or Tokyo Telecommunications Research Institute to the

billion dollar global conglomerate that it is today. The main objective of the

company was to design and create innovative products which would benefit the

people.

Overview

One of the most recognized brand names in the world today, Sony Corporation,

Japan, established its India operations in November 1994, focusing on the

sales and marketing of Sony products in the country. In a span of 15 years

Sony India has exemplified the quest for excellence in the world of digital

lifestyle becoming the countrys foremost consumer electronics brand.

With relentless commitment to quality, consistent dedication to customer

satisfaction and unparalleled standards of service, Sony India is recognized

as a benchmark for new age technology, superior quality, digital concepts

and personalized service that has ensured loyal customers and nation wide

acclaim in the industry.

With brands names such as BRAVIA, BRAVIA Theatre, Cyber-shot Handycam, VAIO, Walkman, Xplod, Memory

Stick PlayStation. Sony has established it self as a value leader across

its various product categories of Audio/Visual Entertainment products,

Information and Communications Recording Media, Business and

Professional products.

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In India, Sony has its footprint across all major towns and cities through a

distribution network comprising of over 5000 dealers and distributors, 240

exclusive Sony outlets and 19 direct branch locations. Manned by customer

friendly and informed sales persons, Sonys exclusive stores Sony Center

are fast becoming the most visible face of the company in India.

Sony India also has a strong service presence across the country with 20 company

owned and 190 authorized service centers and 16 exclusive demonstration

centers. A distinctive feature of Sonys service is its highly motivated and well-

trained staff that provides the kind of attentive and sensitive service that is rare

today.

Sony is committed to ensuring that both the products and the marketing

activities employed truly make a difference to peoples lifestyles and offer them

new dimensions of enjoyment.

In-Car Entertainment

If you spend long hours in your car everyday, its important to equip it with enough

entertainment so that youll have nary a dull moment. Car audio entertainment need

not be limited to just your favourite radio stations or CDs. Thanks to Sony Xplod

mobile entertainment technology, you can enjoy music from more sources. You now

can even experience visual entertainment with our innovative Touch-Screen

Multimedia Centre receiver. Riding the car is never the same experience again.

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SONY Products

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Company Overview

Pioneer Electronics (USA) Inc. designs, develops, manufactures, and sells audio and

video products for home, car, and business markets. It offers home entertainment

products, such as displays, TVs, monitors, projectors, and accessories; car

audio/video products, which include in-dash receivers, speakers, subwoofers,

amplifiers, and accessories and add-ons; and Blu-ray discs and DVDs, satellite

radios, home theater systems, headphones, iPod/iPhone accessories, tabletop and

dual players, media players/controllers, mixers, effectors, and software, as well as

car navigation products. The company also provides business products, including

professional video products and speakers, replacement parts, A/V receivers, audio

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components, plasma displays, and professional DVDs, as well as multi-format

digital turntables for laptops to access music files. It sells its products through

authorized dealers and Internet stores in the United States and Canada, as well as

sells its products online. The company was incorporated in 1982 and is based in

Long Beach, California. It operates retail stores in Orange County, California; and

Phoenix, Arizona. Pioneer Electronics (USA) Inc. operates as a subsidiary of

Pioneer North America, Inc.

Global Vision

Group Philosophy

Move the heart and touch the soul.

Group Vision

To become a company that encourages all its members to work as a team, with

everyone customer-focused, integrating each ones professionalism in pursuinginnovations one after another.

Pioneer aims to continuously provide excitement and passion to customers around

the globe, searching new ways to push the boundaries of what sound, vision and

information can offer beyond expectations.

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With that goal in mind, each and every member in all corners of the Pioneer

Group is being asked to keep generating ideas for improvement in their respective

areas.

These ongoing individual efforts at self-improvement will collectively help the

entire Pioneer Group bring about a new level of achievement and will lead it to offer

such lasting value to its customers as they have never experienced before.

Pioneer is committed to turning one idea after another into solid reality for its valued

customers through innovations that make the unthinkable thinkable and the

impossible possible.

The Vision

Pioneer India Electronics Pvt. Ltd., the regional headquarters of Pioneer

Corporation, has been designated to spearhead the growth and direction of our

global design team with specific emphasis on the design of entertainment products

of appeal to the international masses.

We seek to maximize the fun and enjoyment of entertainment which is best

encapsulated in our Corporate Vision.

Pioneer Products

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Corporate goal

Since its establishment in 1927, JVC has upheld a corporate philosophy

to contribute to culture and to serve society through its products and business

practices. This philosophy also guides us at the heart of everything we do in JVC

ASIA.

With the digital age changing the way information and entertainment are being

experienced, JVC ASIA is fast positioning itself as a leading entertainment solution

company in Asia. Our greatest corporate asset is the synergistic power of advanced

hardware technology with our extensive expertise in entertainment software and

media. We are making every effort to link this asset with user needs in order to

create a new generation of products and services that enrich lives around the region.

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While technology development is our core strength, our superior brand

performance is built through the combined effort of all our corporate activities. At

JVC, our people are focused on delivering our brand promise throughout the value

chain covering high-quality manufacturing, astute formulation of lifestyle ideas,

outstanding response to customer needs and much more.

Today we have eight sales subsidiaries in Asia, Oceania, the Middle East and Africa

and collaborate with seven other manufacturing companies. Each of these operations

is committed to making a vital contribution to its respective local community,

including sponsoring artistic, cultural and sporting Endeavours that inspire andexcite.

As a pioneer, we continue to create new ways to communicate through music and

images. As a corporate citizen, we continue to play an active role in our

communities. Our progress will ensure we will always deliverThe Perfect

Experience as our contribution to culture and society.

JVC is a global entertainment solution company from Japan. Since 1927, we have

created new ways to communicate through music and images through a diverse

array of innovative audio-visual products and services. Our technological leadership

is now recognised throughout the world.

JVC ASIA is one of four region-based operations established by JVC worldwide. As

a market-oriented operation, we undertake product development, manufacturing,

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marketing, sales and services for a broad region spanning Asia, Oceania, the

Middle East and Africa. Headquartered in Singapore, JVC ASIA has eight sales

subsidiaries in Asia, Oceania, the Middle East and Africa and collaborates with

seven other manufacturing companies amounting to 15,000 employees.

JVC Products

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Company profile

Harman International Industries, Incorporated engages in the development,

manufacture, and marketing of audio products and electronic systems worldwide.

The company operates in three segments: Automotive, Consumer, and Professional.

The Automotive segment designs, manufactures, and markets audio, electronic, and

infotainment systems for vehicle applications primarily to be installed as original

equipment by automotive manufacturers. Its infotainment systems include GPS

navigation, traffic information, voice-activated telephone and climate control, rear

seat entertainment, wireless Internet access, hard disk recording, MP3 playback, and

a high end branded audio system, as well as produces personal navigation devices.

The Consumer segment designs, manufactures, and markets audio, video, and

electronic systems for home, mobile, and multimedia applications. The Professional

segment designs, manufactures, and markets loudspeakers and electronic systems

used by audio professionals in concert halls, stadiums, airports, houses of worship,

and other public spaces, as well as products for recording, broadcast, cinema, and

music reproduction applications. Harman International Industries sells its products

primarily through audio/video specialty and retail chain stores. The company was

founded in 1980 and is headquartered in Washington, D.C.

Sahil International is Indias exclusive representative for Harman International

Consumer Division among other brands. They are a leading consumer electronics

importer since 1999. Our portfolio of products includes Home Theatre, Car audio,

Headphones, Multimedia and DJ electronics.

Spread across the country through a robust sales network we aim to continuously

excel in sales and service support to our millions of satisfied customers.

In a short period the team at Sahil International has grown exponentially, backed by

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a unique work ethic of informality and empowerment. We are the fastest growing

company by revenue and income in all our product segments due to innovations in

marketing, infrastructure development and prudent financial management.

JBL Products

Chapter 3

Data Analysis

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&Interpretation

Q2. What are the Brands the Retailers sell?

Figure: 3.1

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0

2

4

6

8

10

12

14

16

Frequency

SONY

Pioneer

JVC

JBL

Kenwood

Xenos

Polkaudio

Fosgate

Rockford

Infinity

Alpine

Panasonic

Hertz

Blaukpunkt

Delphi

Prosound

Kicher

Chinese

Interpretation:

14.49%of the retailers sell SONY, Pioneer, JVC & JBL,

8.70% of the retailers sell Xenos,

7.25% of the retailers sell Polk Audio,

5.80% of the retailers sell Kenwood,

2.90% of the retailers sell Fosgate, Rockford & Alpine,

1.45% of the retailers sell Infinity, Panasonic, Hertz, Blaukpunkt, Delphi Prosound,

Kicher & Chinese brands.

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Q3. Does the customer have the knowledge of the products?

Figure: 3.2

0

10

20

30

40

50

60

70

Frequency

Yes

No

Interpretation:

70% of the retailers agree that the customers have knowledge of the products,

30% of the retailers say that the customer comes with no knowledge of products.

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Based on knowledge the customers are further divided into three.

They are depicted in the figure below:

Figure: 3.2.1

0

10

20

30

40

50

60

70

Frequency

Good Knowledge

Average Knowledge

No knowledge

Interpretation:

63.33% of the customers have good knowledge,

18.83% of the customers have no knowledge,

17.84% of the customers have average knowledge of the products.

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Q4. What features of the product is the customer aware off?

Figure: 3.3

0

5

10

15

20

25

30

35

40

Frequency

Mp3

USB

I Pod

Bluetooth

DVD

All

Interpretation:

38.89% of the customers are aware of features like Mp3 & USB.

5.56% of the customers are aware of I Pod features.

5.55% of the customers are aware of DVD features, and about

11.11% of the customers are aware of almost all the features of the product.

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Q5. If the customer has the knowledge of the products which brand he/she asks

for?

Figure: 3.4

0

5

10

15

20

25

30

35

40

Frequency

SONY

Pioneer

JVC

JBL

Interpretation:

38.46% of the customers demand Sony and Pioneer,

19.23% of the customers demand JVC and

3.85% of the customers demand JBL.

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Q6.Does companies pricing policy affectssales/ demand?

Figure: 3.5

0

10

20

30

40

50

60

70

80

Frequency

Yes

No

Interpretation:

80% of the retailers think that the pricing policy of companies affects the sales.

20% of the retailers say that there is no effect on sales

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Q7. Do you sell brands which yield more profit?

Figure: 3.6

0

10

20

30

40

50

60

70

Frequency

Yes

No

Interpretation:

30% of the retailers say yes they sell products that yield more profit,

70% of the retailers say no they do not sell products that yield more profit.

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Q8. What strategies the organisation implements in enforcing you to persuadethe customer to buy a particular brand?

Figure: 3.7

0

5

10

15

20

25

30

35

40

45

50

Frequency

Schemes

Foreign Trip

DiscountsFree Demo Rack

Commission

Interpretation:

47.37% of the retailers say companies come out with various schemes,

31.58% of the retailers say companies implement foreign trip schemes,

10.53% of the retailers say companies give commission to the retailers and

5.26% of the retailers say companies give free demo samples to persuade the

customer.

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Q9. How do you persuade the customer to buy a particular brand?

Figure: 3.8

0

5

10

15

20

25

30

35

Frequency

Suggesting Brands

Depending on Budget

Extra Discount

Demonstration

Give out more features at

less price

Previous customer

expariences

Moulding the mind

Interpretation:

33.33% of the retailers give demonstrations,

26.67% of the retailers give extra discounts,

13.33% of the retailers suggest brands and mould the mind of the customer,6.67% of the retailers try to give more features at less price and share previous

customer experiences.

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Q10. What is the criteria on which the customer decides to buy a particularbrand?

Figure: 3.9

0

5

10

15

20

25

30

35

40

45

Frequency

Brand

Quality &Features

Price

Requirement &Budget

RetailersExperience

Interpretation:

43.75% of the customers decide to buy a product by their brand name,

12.5% of the customers decide to buy a product based on their Quality and Features,

31.25% of the customers decide to buy a product by based on their requirements and

budget.

12.5% of the customers decide to buy a product via retailers own experience.

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Chapter 4

Summary

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1. Findings

Out of the brands available in the market Sony, Pioneer, JVC, JBL are the

common brands sold by every retailer. Brands like Kenwood, Xenos, Polk

Audio, Rock Ford, Infinity, Alpine, Panasonic, Blaukpunkt, etc are not

commonly sold by every retailer. This is because, a major part of consumers

having access to this segment have good knowledge of products and are

Premium Brand customers.

70% of the retailers agree that the customers have knowledge of the products,

and

30% of the retailers say that the customer comes with no knowledge of products.

Study also reveals that

63.33% of the customers have good knowledge,

18.83% of the customers have no knowledge,

17.84% of the customers have average knowledge of the products.

38.89% of the customers are aware of features like Mp3 & USB.

5.56% of the customers are aware of I Pod features.

5.55% of the customers are aware of DVD features, and about

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11.11% of the customers are aware of almost all the features of the product.

38.46% of the customers demand Sony and Pioneer,

19.23% of the customers demand JVC and

3.85% of the customers demand JBL.

According to the retailers,

80% of the retailers think that the pricing policy of companies affects the sales.

This is because, when the pricing policies change the retailers have to re-

structure their discounting schemes, and profit margins.

20% of the retailers say that there is no effect on sales, when there is a change in

the pricing policy of the companies. This is because they predict and prepare

themselves for the change.

30% of the retailers say that they try to sellout brands with higher margins

of profit and are successful at doing that.

70% of the retailers say that they do not try to push out brands with higher

margin of profit. They believe that customer satisfaction is the ultimate tool to

earn profit. Once a customer is satisfied, an already existing customer may refer

the retailer to others, indirectly attract new customers.

47.37% of the retailers say market players come out with various schemes

by which a retailer decides as how much of stock should he maintain and

accordingly try persuading and selling brands in order to yield more profit.

31.58% of retailers say that competitors come out with gift packages on

achieving target sales volume on such brands, which encourage them to sell a

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particular brand. It is left to the retailer as to what gift package he desires to

target. 5.26% of the retailers say, competitors offer them discounts. This enables

them to earn a higher margin of profit and they try to sell only those brands.

5.26% of the retailers say that fewer organisations give out free demo samples.

This attracts the customer to buy that product.

10.53% of the retailers say that organisations give commission on turnover

achieved by them.

13.33% of the retailers suggest brands to the customers depending on their

budget and insisting them to buy a particular brand.

26.67% of the retailers give extra discounts to the customer, which a customer

generally looks for.

33.33% of the retailers give demonstration of features and sometimes sound

clarity, comparing and suggesting him to purchase a particular brand.

6.67% of the retailers try suggesting the customers, the brands that offer more

features at less price.

6.67% of the retailers share experiences of customers already existing.

13.33% of the retailers try to mould the mind of the customer, shifting his

preference from one brand to other brands.

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43.75% of the customers decide to buy a product by their brand name,

12.5% of the customers decide to buy a product based on their Quality and

Features,

31.25% of the customers decide to buy a product by based on their requirements

and budget,

12.5% of the customers decide to buy a product via retailers own experience.

For 18.83% of the customers who have no knowledge, retailers

successfully creates demand for certain brands. Though profit making is the

ultimate goal of any business, but ultimately customer satisfaction plays a key

role for further access to new customers.

2. Conclusions

In reference to Question 8, the organisations implement the following

strategies in enforcing the retailer to persuade the customer to buy a particular

brand.

1. Foreign trip schemes: Retailers are awarded with all expenses paid

foreign trip (only boarding and stay charges). These schemes are

awarded to only those retailers who achieve a specified turn over in

selling a particular model of product.

2. Glow signs: Retailers are provided with company glow signs with

retailers name printed on it. This enables the retailer to attract the

customers by glow signs and ask for that particular brand.

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3. Branding: The retailers are branded with companys name and give

attractive discounts to the retailers on product models. As discussed

earlier a premium brand customer who always looks out for premium

brand can easily notice these retail outlets and ask for that particular

brand.

4. Dealer Training: The dealers are trained by the companies. When a

new product with new technology is launched into the market, the

companies train the retailers in every aspect of the product viz: features,

who to use and benefits.

5. Dealer Incentive: Dealers are given incentives by the companies,

such as commission, model wise discounts, free gifts like: Televisions,

Music players, Home theatre systems, Cameras etc.

6. Schemes:Schemes are the most common way of persuasion, different

companies offer different schemes to the retailers. As there is no higher

margin of profit in branded products, the companies try to frame their

scheme pricing policies in such a way, so as to give out a higher margin

of profit as compared to their competitors.

7. Demo rack: The retailers are provided with companys demo rack.Demo rack consists of all the models of the company displayed so that

the customers can have a practical experience of the products and the

customers can decide as what they want to buy.

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Apart from the above strategies the organisations also implement promotional

strategies on the customers. They are customary offers like free pendrives, Mp3

CDs, free t-shirts.

There are three types of customers existing in this type of market. They are:

a. Premium Brand customers

b. Feature and Technical based customers

c. Economical customer

A Premium Brandcustomer is one who has a thorough knowledge of theproducts and brands available in the market. These customers are brand loyal

and always demand branded goods (by its brand image in the market or with a

belief that branded goods are good quality goods).

A Feature and Technical based customeris one who demands for some

specific Feature or Technology in goods. He then makes his choice based on the

options available to him.

An Economical based customer is one who looks out for economicalpricing of products. These customers are budget based and generally come to

market with a specific budget. They have average knowledge of products and

generally look out to buy product that possess more features at economical price.

Retailers role in demand creation is very significant; retailer is a source of

information and experience to the customers who have no knowledge of theproducts under the Car Audio segment. Retailers create demand for certain

brands by moulding the mind of the customer. Customers who possess car have

access to this segment, standard of living is on a rise and people are now moving

towards transition. This transition is led by rise in income in the economy,

people are now slowly moving towards luxurious goods. Today people having

incomes between 3 and above can afford for a car. This has lead to increase in

demand for such products.

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According to the retailers, organisations operating under this segment do

not incur heavy advertising expense which is not true. Organisations under this

segment incur heavy expenses on advertisements; this is because the retailers are

not aware of the organisational strategies of promotions. Organisations promote

their products through advertisements in newspapers, magazines, television

media, hoardings etc.

Customers who possess knowledge are generally those customers who have

purchased these products earlier.

In this segment the market players cannot afford to take up higher

advertisement costs, as the goods sold under this segment are automotive

entertainment system. People who possess car have access to such products and

thus, demand is low.

Market leaders like SONY, JVC, Pioneer, JBL, and Blaukpunkt can afford

to advertise their products; this is because these are the market players who

occupy a major market share.

Products sold by Market players are economical in price and fits into the

common budget forEconomical customers.

Persuading a customer to buy, what retailer intends the customer to buy is

an art of retailer. Retailers are masters at diverting the mind of the customers.

Market players under this segment compete each other in formulating new

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pricing strategies and schemes so as to increase the profit margin of the

retailer and encouraging him to suggest and sell more of their products.

3. Suggestions

Customers do not tend to buy certain brands because of their bad after sale

service. The organisations should focus on improving its after sales services for

the customers. This is essential to occupy a large market share and creating a

brand image in the market.

Organisations should be concentrating on influencing the retailers interest.

This will enable them to push out more and more products through retailers.

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Bibliography

The Secondary data has been collected through the following sources:

www.google.co.in

www.businessdictionary.com

www.wikipedia.com

The Retailer's Role in Quality Retailing - The Emerging Scenario in India.

(www.ezinearticles.com)

Role of Retailers in Shaping a Firms Strategic Direction. (Submitted inpartial

Fulfillment of the Requirement for the Award of Degree in

Doctor of Philosophy in Business Administration, School of

Business, University of Nairobi) by PETER MUGO.

Automobile magazines.

Newspapers: Times of India.

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http://www.google.co.in/http://www.google.co.in/http://www.businessdictionary.com/http://www.businessdictionary.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.ezinearticles.com/http://www.google.co.in/http://www.businessdictionary.com/http://www.wikipedia.com/http://www.ezinearticles.com/


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Annexure

Questionnaire

Retailers Role in Demand Creation(In Case of Car Audio segment)

1. Name of the Retailer:

2. Brands he sells:

3. Does the customer has the knowledge of the products:

4. What features of the product is the customer aware off:

5. If the customer has the knowledge of the products which brand He/She asksfor:

6. Does companies pricing policy affect Sales/Demand:

7. Do you sell brands which yield more profit:

8. What strategies the organization implement in enforcing you to persuade thecustomer, to buy a particular brand:

9. How do you persuade the customer to buy a particular brand:

10. What is the criteria on which the customer decides to buy a particular brand:

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retailers role in demand creation

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