1

A STUDY ON DEALER SATISFACTION OF CROMPTON

GREAVES PREMIUM DECORATIVE CEILING FANS IN

ERNAKULAM DISTRICT

A report on the Project Work submitted in partial fulfillment of the

requirements for the MBA ( Full time ) Degree of the Mahatma

Gandhi University

Submitted by

Vinil Steephen P

Reg . No . 31306

2011 - 13 Batch

FISAT BUSINESS SCHOOL

Hormis Nagar, Angamaly

Cochin – 683577

July 2013

2

Date :- 07 /11/ 2013

CERTIFICATE

Certified that the Project Work entitled “A STUDY ON DEALER

SATISFACTION OF CROMPTON GREAVES PREMIUM

DECORATIVE CEILING FANS IN ERNAKULAM

DISTRICT“inCROMPTON GREAVES LIMITED – COCHIN BRANCH is a

bona-fide work done by VinilSteephen P during the period June 3 , 2013 to

July 31 , 2013 under my supervision and guidance.

Dean and Director Faculty Guide

FISAT Business School SABU MANGALASSERRIL

( Professor )

FISAT Business School

3

ACKNOWLEDGEMENT

First and foremost, I thank the lord almighty for his perpetual showers

blessings, which led to the successful completion of my project. It gives me

immense pleasure to present this report.

I take this opportunity to express my deep sincere of gratitude to all those

who have helped me throughout this organizational study. It gives me

immense pleasure to acknowledge all those who have rendered

encouragement and support for the successful completion of my work.

I am also thankful to Dr, P A MATHEW, (Dean & Director , MBA)

FISAT BUSINESS SCHOOL for his whole hearted co-operation in bringing

out this project..

I also take this opportunity to express my sincere gratitude to Mr. SABU

MANGALASSERRIL, my faculty in charge who has helped me throughout

this project.

I would like to convey my sincere gratitude to Mr A.G. Ramesh,(Branch .

MANAGER) CROMPTON GREAVES LIMITED, for giving me an

opportunity to do my study in such a reputed organization. I also extend my

sincere gratitude to Mr. RAJEEV S.(Engineer In-charge) for helping me

in this project by giving proper directions and suggestions.

Finally, I am very thankful to all my parents, friends, other staff members of

Crompton Greaves Limited Cochin Branch and faculty members whose

cooperation and suggestions have helped me in successful completion of this

project. Above all, I would like to thank God Almighty without whose

blessings this project would not have been a reality.

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5

DECLARATION

I hereby declare that the Research Report entitled ―A STUDY ON

DEALER SATISFACTION OF CROMPTON GREAVES PREMIUM

DECORATIVE CEILING FANS IN ERNAKULAM DISTRICT‖ is a

record of bona fide work done by me in ―Crompton Greaves Ltd.‖, during

―03/06/2013 to 3/08/2012‖ under the supervision of Mr. RAJEEV

S.(Engineer in-charge) CROMPTON GREAVES LTD and Mr SABU

MANGALASSERRIL , FISAT BUSINESS SCHOOL, and that no part of

this report has formed the basis for award of any degree, diploma,

associateship, fellowship or any other similar title or recognition in any other

institution.

Place : Hormis Nagar

Date : VINIL STEEPHEN P

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Table of Contents

Sl.No. Content Page No.

1 EXECUTIVE SUMMARY

CHAPTER 1 INTRODUCTION TO THE STUDY

1.1

1.2

1.3

1.4

1.5

Introduction

Importance of the study

Organization selected for study

Objectives of the study

Scope of the study

2

2

2

3

4

CHAPTER 2 RESEARCH METHODOLOGY

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

Research design

Details of Data collection

Research period

Research instrument

Sample design

Tools for data analysis and interpretation

Hypothesis of the study

Limitations of the study

5

5

5

6

6

7

9

10

CHAPTER 3 INDUSTRY, COMPANY AND PRODUCT PROFILE

3.1

3.2

3.3

Industry profile

Company profile

Product profile

11

16

23

CHAPTER 4 REVIEW OF LITERATURE 30

CHAPTER 5 THEORETICAL FRAMEWORK 33

7

CHAPTER 6 DATA ANALYSIS AND INTERPRETATION

6.1

6.2

Data Analysis And Interpretation

Statistical Analysis

40

66

CHAPTER 7 FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 Findings

5.2 Suggestions

5.3 Conclusion

82

84

85

BIBLIOGRAPHY

QUESTIONNAIRE

8

List of Tables

Table No. Content Page. No.

1 Sector wise fan production 13

2 Experience in selling Crompton greaves products 40

3 Dealing with competitors 41

4 Use of advertisements 42

5 Pattern of advertisements 42

6 Factors affecting dealer satisfaction. 45

7 Opinion about the brand Crompton greaves 47

8 Opinion about quality of Crompton greaves

decorative fans

48

9 Opinion about margin of Crompton greaves

decorative fans

50

10 Opinion about promotional activities of Crompton

greaves

52

11 Most preferred type of promotional activity 54

12 Opinion about timely delivery of Crompton

decorative fans

56

13 Opinion regarding employees of Crompton greaves 57

14 Opinion regarding after sales service of Crompton

decorative fans

59

15 Opinion regarding availability of Crompton

decorative fans

60

16 Areas for boosting premium decorative fan range. 62

17 Overall opinion of dealer satisfaction of Crompton

decorative fans

64

9

List of Figures/Graphs/Charts

Sl No. Content Page No.

1 Transformers & Reactors 24

2 Switchgear Products 24

3 Industrial Systems 25

4 Rail Control & Coach Products 26

5 Celling Fans 27

6 Industrial Fans 28

7 Experience in selling Crompton products 40

8 Dealing with competitors 41

9 Use of advertisement 43

10 Pattern of advertisements 44

11 Factors affecting dealer satisfaction. 46

12 Opinion about the brand Compton greaves 47

13 Quality of Crompton greaves decorative fans 49

14 Opinion about margin of Crompton greaves

decorative fans

51

15 Opinion about promotional activities of Crompton

greaves

53

16 Most preferred type of promotional activity 55

17 Opinion about timely delivery of Crompton

decorative fans

57

18 Opinion regarding employees of Crompton greaves 58

19 Opinion regarding after sales service of Crompton

decorative fans

60

10

20 Opinion regarding availability of Crompton

decorative fans

61

21 Areas for boosting premium decorative fan range 63

22 Overall opinion of dealer satisfaction of Crompton

decorative fans

65

11

EXECUTIVE SUMMARY

12

Crompton Greaves Ltd is one of the world's leading engineering

corporations. Their unique and diverse portfolio ranges from transformers,

switchgear, circuit breakers, network protection & control gear, project

engineering, HT and LT motors, drives, lighting, fans, pumps and consumer

appliances and turnkey solutions in all these areas; thus enhancing the many

aspects of industrial and personal life. The company operates in four segments:

Power Systems, Consumer Products, Industrial Systems and Others. The Power

Systems include transformer, switchgear, turnkey projects and power Supervisory

control and data acquisition systems (SCADA). The Consumer Products business

supplies fans, lighting equipment (light sources and luminaires), pumps, and range

of electrical household appliances and provides solutions for integrated security

systems, home automation and street lighting.

Dealers play a very important role in supporting the business activities of

any company. For any company dealers‘ satisfaction is a key marketing tool. It not

only helps in framing the marketing strategy, but also an important part of the

industry as far as its existence is concerned. Dealers play an important role in

market growth, diversification of products, market modification and above all

retaining the customers in their custody. In today‘s economy dealers face a vast

array of products, brand choices prices. These situations put pressure on the

companies to measure and understand new ways in which their existing dealer

chain can be retained.Companies cannot ignore in designing long term growth-

oriented policies, strategies aimed at dealers‘ satisfaction.

The study titled ―A study on dealer satisfaction of Crompton greaves

premium decorative ceiling fans in Ernakulam district‖is about understanding the

satisfaction level of Crompton greaves decorative fan dealers towards the company

dealership. Considering the fact that the way in which a dealer is treated by its

manufacturer has decisive influence on the dealer‘s commitment to the brand as

well as on the dealer‘s business success, an examination of dealer satisfaction or

dissatisfaction has become strikingly important during the last few years. For this

purpose a questionnaire has was developed with the aim to study the Dealer

Satisfaction of Crompton Greaves premium decorative fans in Ernakulam District.

Another objective of this questionnaire was to identify and evaluate the various

factors which influenced the dealer satisfaction with regard to Crompton greaves

decorative fans to provide a result concerning satisfaction or dissatisfaction of all

dealers with regard to Crompton greaves premium decorative ceiling fans..The

analysis part consists of Percentage analysis,Chi– Square Analysis,and use of

Statistical packagesThis project gives suggestions for improvement.with respect to

the findings from the study.

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CHAPTER 1

INTRODUCTION

14

1.1INTRODUCTION

Every company considers dealer satisfaction as a goal and marketing tool.It is not

only a decisive component in framing the marketing strategy, but also an inseparable

part of the industry as far as its existence is concerned. Dealer satisfaction also plays an

important role in market growth, diversification of products, market modification and

above all retaining the customers in their custody. Further, companies cannot perform

the competition only if they can go about winning dealers by meeting and satisfying their

needs because today‘s dealers face a vast array of products, brand choices prices. In such

an environment it is quite natural that dealers estimate which company‘s offer will

deliver them the maximum profit or satisfaction.

1.2 IMPORTANCE OF THE STUDY

Companies manufacture products according to the consumers‘ needs and

preferences, but the products reach the final consumers through the dealers, hence it is

very much essential for the manufacturers to ensure whether their dealers are able to

fulfill their roles effectively and to check the performance of its dealers periodically

.Understanding of these factors will help the companies to make the prompt action to

make product improvements on time and hence grab more market. For doing this,

company needs adequate information so that it can further improve the performance of its

dealers thereby improving its sales and profit .Company can get the necessary

information from the market by conducting a market research on the perception of the

dealers. This research is a genuine effort to understand the dealer satisfaction levels on

Crompton Greaves Premium decorative ceiling fans. This will enable the company to

enhance or modify their image and value in dealer‘s minds.

1.3 ORGANIZATION SELECTED FOR THE STUDY

The company selected for the study was Crompton Greaves Ltd. It is one of the

world's leading engineering corporations. Their portfolio ranges from transformers,

switchgear, circuit breakers, network protection & control gear, project engineering, HT

and LT motors, drives, lighting, fans, pumps and consumer appliances and turnkey

solutions in all these areas; thus enhancing the many aspects of industrial and personal

life. The company operates in four segments: Power Systems, Consumer Products,

Industrial Systems and Others. The Power Systems include transformer, switchgear,

turnkey projects and power Supervisory control and data acquisition systems (SCADA).

15

The Consumer Products business supplies fans, lighting equipment (light sources and

luminaires), pumps, and range of electrical household appliances and provides solutions

for integrated security systems, home automation and street lighting. The Industrial

Systems include electric motors, alternators, drives, traction electronics and Crompton

Greaves brought the electric fan tothe Indian sub-continent.The company – earlier known

as CromptonParkinson Works – manufactured its first ceilingfan in 1937 at Worli,

Mumbai. It later diversifiedinto table- pedestal- wall-mounted- exhaustedindustrial-fans.

.The fans division has been winning the market race for over a decade.CG is the largest

fan manufacturer in India, manufacturing fans like Ceiling fans, Table fans, Wall

mounting fans, Pedestal fans, Exhaust fans, Industrial fans for various applications of air

delivery- be it domestic or industrial. CG is a leading fan exporter to countries like USA,

Italy, S. Africa, Ghana, Fiji, Singapore, Bahrain, UAE, Sri Lanka, UK, France, etc.

1.4OBJECTIVES OF THE STUDY

The objectives of the study are mainly classified into two types;

Primary :

To identify the level of satisfaction of Crompton Greaves Premium decorative

range fan dealers and to measure the factors influencing the dealers to deal with

Crompton Greaves.

Secondary:

To identify the pattern of advertisement followed by the dealers.

To find out how the dealers rate the brand Crompton greaves.

To know how the dealers rate the quality of premium decorative range fan of

Crompton Greaves.

To find out how the dealers rate the promotional activities carried down by

Crompton greaves.

To know the impact of after sales service provided by Crompton greaves and the

satisfaction level of the dealers

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To know dealers opinion regarding the availability of Crompton decorative fans.

To find out the areas of dealership that needs improvement with respect to

Crompton Greaves decorative fans.

1.5SCOPE OF THE STUDY

Study is confined to selected dealers of Ernakulam District

To know dealers satisfaction level regarding Premium Decorative range fans

To know the expectations and minds of dealers

The study highlights the scope for future improvements on the basis of present

scale.

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CHAPTER 2

RESEARCH METHODOLOGY

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2. RESEARCH METHODOLOGY

2.1Research design

The Research conducted is descriptive in nature. Questionnaires were used to

collect the data through a field survey. Descriptive Research mainly involves surveys and

fact finding enquiries of different kinds. The main objective of research is to describe the

state of affair as it exists at present. Even though variables are beyond the researcher‘s

control he can report what is happening or happened and also discover the causes.

The research design is the conceptual structure within which research isconducted; it

constitutes the blueprint for the collection, measurement andanalysis of data. The data

was collected from 75 dealers from Ernakulam district.A scheduled questionnaire was

used to collect primary data on the otherhand; secondary data was collected using books,

magazines and websites.Graphical tools including bar diagrams, pie charts and statistical

tools which included percentage& chi-square analysis were used in the process ofanalysis

and interpretations of the collected data.

2.2 Details of Data collection

Primary data

The primary data was collected using questionnaire, the questionnaire comprised

of 17 question each with open-ended questions, multiple choice questions and

dichotomous questions

Secondary data

The secondary data was collected through company brochures, management

books, market research books, websites etc.

Area covered

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The study was conducted with the dealers in Ernakulam district who sold

Crompton greaves Premium decorative ceiling fan models.

2.3 Research period

The research period was from ―03/6/2013‖ to ―05/8/2013‖

2.4 RESEARCH INSTRUMENT

Research instrument used for data collecting is questionnaire. Questionnaire

preparation is one of the most challenging tasks of conducting a research.The

questionnaire is the backbone for obtaining data during survey. The questionnaire is

prepared in well-structured and non- designed form so that it is easily understandable and

answerable by everyone.The type of questions included in the questionnaire are Open

ended Questions, Multiple choice questions and Dichotomous question.

Open ended questions

Open ended questions require the respondents to provide his/her own answer to

the question. This is referred as a free response to collect the primary data.

Multiple choice question

A multiple choice question requires the respondent to choose an answer from

among the list provided in the questionnaire. Therespondents may be asked to

choose the most apt answer for the question.

Dichotomous Question

Dichotomous Questions allow the respondents to choose on from two extreme

responses like Yes/No, Agree / Disagree etc.

2..5 SAMPLE DESIGN

A research design is the agreement made to collect and analyze the data in a

manner that aims to combine the relevance to the research purpose with economy in

procedure. It constitutes the blue print for the collection, measurement and analysis of

data.Sample design is the way of selecting the sample, in other words a sample design is a

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definite plan determined before any data are actually collected for obtaining a sample

from the given sampling frame.

Population

All dealers dealing with Crompton Greaves Premium decorative ceiling fans in

Ernakulam district are coming under the population of the study.

Sample size

Sample size was taken as 75 dealers from Ernakulam district.

Contact Method

The method used to contact the respondents was direct personal interview. For

conducting the personal interview a structured questionnaire was prepared.

Sampling Method

The sampling method used for this study is non-probabilistic judgment sampling,

in this type of sampling procedure, the sampling unit selected for the collecting the

information is based on the judgment of the researcher. A judgment sample is a sample,

which a researcher purposively draws from the population which he thinks is a

representative of the population.

2.6 TOOLS FOR DATA ANALYSIS AND INTERPRETAION

The researcher carries out analysis through various statistical tools . The

statistical analysis is useful for drawing inference from the collected information. . The

statistical analysis and interpretation has been using the following tools:-

2.6.1 PERCENTAGE ANALYSIS

After the data is collected , it is then recorded , tabulated and edited accurately.

Here percentage analysis test is applied for analyzing and interpreting the data. It is an

important test of significance developed by statistician. As a known Para metric test, It

can be used to determine whether the categorical data shows dependency or if they are

independent.

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2.6.2 CHI-SQUARE ANALYSIS

Pearson‘s Chi-square test is the best known of several Chi-square test. Statistical

procedureswhose results are evaluated by the reference to the Chi-square distribution. It

tests a null hypothesis, that the frequency distribution of certain events observed in a

sample is consistent with a particular theoretical distribution.

Chi-square test, χ2 = ∑ (Oij-Eij) 2∑ij

Where, O= Observed frequency

E = Expected frequency

Degree of freedom (D.F) plays an important part in using the chi-square distribution and

tests are based on it. The degree of freedom is worked out as follows.

D.F = (c-1) (r-1)

‗C‘ represents number of columns and ‗r‘ represents number of

rows.

2.6.3 SPSS

Statistical packages are computer programs written for statistical analysis. These

programs have simplified the work of researchers who have to do statistical analysis in

their research work. Many statistical packages known as SPSS, MSAT, INDOSTAT,

MINITAB, EXCEL etc. are now developed for statistical analysis. These packages are

useful in employing most of the statistical techniques like calculating averages, standard

deviation, coefficient of correlation, regression, equation etc. and conducting statistical

tests like t-test, f-test and chi-square test. SPSS for windows is a relatively

comprehensive package for use in economics, business and research.

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2.7HYPOTHESIS OF THE STUDY

• Hypothesis 1

H0 : Brand name does not affect the overall satisfaction.

H1 : Brand name does affect the overall satisfaction.

• Hypothesis 2

H0 : Product quality does not affect the overall satisfaction.

H1 : Product quality does affect the overall satisfaction.

• Hypothesis 3

H0 : Credit period does not affect the overall satisfaction.

H1 : Credit does affect the overall satisfaction.

• Hypothesis 4

H0 : Promotional activities does not affect the overall satisfaction.

H1 : Promotional activities does affect the overall satisfaction.

• Hypothesis 5

H0: Timely delivery of goods does not affect the overall satisfaction.

H1: Timely delivery of goods does affect the overall satisfaction.

• Hypothesis 6

H0 :Employee interactions with the dealer does not affect the overall satisfaction.

H1 Employee interactions with the dealer does affect the overall satisfaction.

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• Hypothesis 7

H0 : After sales service does not affect the overall satisfaction.

H1 : After sales service does affect the overall satisfaction.

• Hypothesis 8

H0 : Availability of products during season does not affect the overall satisfaction.

H1 : Availability of products during season does affect the overall satisfaction.

2.8LIMITATIONS OF THE STUDY

Any research study will be restricted in scope by particular inherent limitations

that are participated by the choice of the research design, sampling procedure and

respondent selection. This study has the following limitations:

Since the survey was done only in Ernakulam district the result obtained

may not be taken as a universal suggestion.

Quality of the information highly dependent on the knowledge of the

respondents.

Dealers opinion is susceptible to change.

Time for the study was major constraint as the study was within a period

of 8 weeks.

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CHAPTER 3

INDUSTRY, COMPANY AND

PRODUCT PROFILES

25

3.1 INDUSTRY PROFILE

Electric equipment’s

The electrical equipment industry comprises several products such as

transformers, switchgears, motors and control equipment. In 2009-10, the size of the

electrical equipment industry stood at Rs 525 billion. The electrical equipment industry

grew at 11.3 per cent during 2009-10. The main buyers of electrical equipment are

powerutilities. A typical electric equipment component has a life of 20-25 years; hence,

replacement demand would incrementally add to the growth opportunities. The raw

Material cost of electrical equipment manufacturers is estimated at 50-60 per cent of

sales. Primary raw materials include copper, aluminum and steel. A few large players

dominate the electrical equipment industry. However, several other small and medium-

sized players too specialize in specific product lines. In addition, there has been

substantial competition from Chinese equipment‘s manufacturers especially in the high

voltage category. The electrical equipment industry is highly working-capital

Intensive as it takes 4-5 months to recover payments from SEBs, which are their major

clients.

Electric fans

Electric fans are broadly categorized as general purpose fans and industrial fans.

While the latter are used in factories for driving out hot or polluted air, the former

includes ceiling fans, table fans, railway fans and pedestal fans etc. that are meant to

provide human comfort.

An introduction to Indian Fan Industry

Though the first electric fan was manufactured in India in 1921, the industry was

dominated by imports until the late forties. Import of fans was banned after

independence. With this ban, the domestic manufacturing was started in the medium

scale sector in 1947 around Kolkata with a unit called Jay Engineering Works. This was

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followed by orient in early fifties again in Kolkata. With the closure of the JE plant in

Kolkata because of labor problems, JE‘s Hyderabad unit became the main manufacturing

center for the company. Initially, all the components were manufactured in-house by JE.

Over time, In order to reduce costs, JE started outsourcing components until only the

assemblywas being done in-house. Finally, JE started procuring completed fans

manufactured to theirspecifications and branding them..Starting in the mid-eighties,

other brands emerged and JE‘s production declined resulting in excesscapacity with the

component manufacturers. These component manufacturers scouted around for

newcustomers, and as a result the ceiling fan technology was out in the open in

Hyderabad. Over time, inaddition to the organized component manufacturers, there

emerged a number of units in the unorganized sector each manufacturing one or two

components such as CI castings, aluminum diecastings, blades, stators, rotors etc, or

providing single services such as machining. Several assemblyunits also came up and

assembly work became a cottage industry. In this way a cluster of units

formanufacturing fans developed in Hyderabad. In a similar way, clusters came up

around Delhi, Kolkata,

Bangalore, Pune, Varanasi, and in parts of Punjab and Haryana.

Crompton‘s unit came up in late fifties at Mumbai with a British collaboration.

Other organized sector manufacturers also emerged like Khaitan and Rallies (in sixties),

Polar (in seventies) etc. With the development of skills and migration of labor, the

industry developed around metropolitan cities like Delhi, Mumbai and Chennai and then

expanded in the small scale sector of Punjab, Haryana and around cities like Bangalore,

Pune, Hyderabad, Varanasi etc.

The fan industry has grown tremendously in the post-independence period. The

industry has grown nearly ten times between 1950 and 1970. The production from the

organized sector had a five-fold growth from 15.5 lakhs in 1970-71 to 81.4 lakhs in

1998-99. The production from the unorganized sector for the period has grown from 4.5

lakhs to 24.1 lakhs. Thus, the total production has increased from around 20 lakhs in

1970-71 to around 108.5 lakhs in 1998-99. The annual compounded growth comes to

about 5.9% for both the organized and the small-scale sector, the relative share being

fairly stable over the period.

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According to Usha International Limited, the marketing arm of the leading fan

manufacturer, Jay Engineering Works, a total market size of Rs.1500 crores is being

shared by the organized and the unorganized sectors. On this basis, the total production

comes to 262.5 lakh pieces, with the organized sector accounting for 75 lakhs (at a

market price of Rs.1000 per fan) and the unorganized sector accounting for 187.5lakhs

(at a market price of Rs.400 per fan). According to their industry sources, the current

production is of the order of 200 lakhs, with the share of unorganized sector rising to

60%. On this basis, the production comes to 80 lakh fans from the organized sector and

to 120 lakh fans from the unorganized sector.

Sector wise fan production

India is a tropical country and thus fans are necessary. Therefore the Fan industry

in India is well-established and has grown significantly over the years.The fan market in

India consists of ceiling fans (which have dominant share), table fans, pedestal fans, wall

fans and exhaust fans and manufacture special purpose fans for industrial applications.

The Indian market is estimated at 2.5 million fans per month and it is growing at

about10% per annum. India has large number of manufacturing plants located across the

country and producing world class fans.Infact the export of fans from India has doubled

in the last few years and are a testimony to the quality and development of the Indian fan

Industry. The distribution of fans in India is also well developed with over 1,00,000

selling pointsfor fans, across the country.

The fan industry has taken significant steps to ensure consumer satisfaction and

leading brands not only provide good quality but also back this up with good after sales

28

service.The organized market is dominated by players like Usha, Crompton, Orient and

Khaitan.These players are facing stiff competition from the local players who compete on

the basis of price. The organized players try to defend their position banking on their

brandequity.Although the fan industry size is huge, the industry players are facing issues

of competition from unorganized sector. Unorganized sector holds around half of the

totalmarket.It has to be noted that in the early 1990s the market was in the hand of four of

five players like Usha, Polar, Khaitanetc . But later regional players hit the market with

low priced fans which eroded the market share of these major players.

Rural sector offers huge scope for consumer durables industry, as it accounts for

70% of the Indian population. Rural areas have the penetration level of only 2% and 0.5%

for refrigerators and washingmachines respectively. The urban market and the rural

market are growing at the annual rates of 7%-10%and 25% respectively. The rural market

is growing faster than the urban market. The urban markethas now largely become a

product replacement market. The bottom line is that Indian market ischanging rapidly and

is showing unprecedented business opportunity.

More recently, competition in the fan industry has increased, forcing

manufacturers to look foradditional ways to cut costs. Himachal Pradesh (HP) and

Uttarakhand have offered tax holidays toattract industries to set up manufacturing units in

these two states. Some of the entrepreneurs fromthe old clusters shifted their bases to

these two states and some new entrepreneurs joined in. As aresult, now there are a few

hundred manufacturers in these two states who supply fans to all leadingbrands according

to their designs and desired level of quality.

STRUCTURE OF THE INDIAN FAN INDUSTRY

Today the market is divided into three segments:

(1) Eight leading brands - Bajaj; Crompton-Greaves;Havells; Khaitan; Orient; Ortem;

Polar; and Usha - together have a market share of about 60%.

(2) About a hundred lesser known brands in the organized sector have a market share

of about 25%; and

(3) A large number of very small manufacturers have the remaining market share of

about 15%.

29

A largefraction of the demand for fans for the organized sector is met by the clusters in

HP and Uttarakhand.

INTERNATIONAL MARKET

Besides meeting the domestic requirements, electric fans are also bring exported

from India (table – 1.2). It can be seen that with an export of nearly 6.5 lakh ceiling fans

in 1999-2000, the export earning was of the order of Rs.41.6 crores (or an average

realization of Rs.640 per fan). The major destinations for Indian ceiling fans are the

Middle East (Bahrain i.e. Kuwait, Oman, Saudi Arabia, Yemen, United Arab Emirates

etc.), African countries (Ghana, Egypt, Nigeria etc.), South and South East Asian

countries (Sri Lanka, Bangladesh, Singapore etc.), and Italy, United Kingdom and

United States of America. Tables 1.3 & 1.4 provide data on imports of table and ceiling

fans into India in recent years. Given the tropical conditions of India, the growing

population and the reducing cost of fans (particularly those from the unorganized sector),

the demand is expected to grow with a major part of the growth coming from the

household sector. The sources of new demand would be household sector, office sector,

new buildings and replacement requirements of old fans. The estimated demand for

electric fans is shown in table 1.5. With the demand estimated between 11.5 million and

14.9 million over 2001-06, prima facie there appears to be substantial opportunity for

new investments, since the production by the industry was only around 10.8 million in

1998-99, with the contribution of organized industry at 8.1 million.

With easy availability of finance, emergence of double-income families, fall in prices

due to increased competition, government support, growth of media, availability of

disposable incomes, improvements in technology, reduction in customs duty, rise in

temperatures, growth in consumer base of ruralsector, the consumer durables industry is

growing at a fast pace. Given these factors, a good growth is projected in the future, too.

30

3.2COMPANY PROFILE

Crompton Greaves Ltd is one of the world's leading engineering corporations. The

company provides end-to-end solutions, helping its customers use electrical power

effectively and increase industrial productivity with sustainability. Their unique and

diverse portfolio ranges from transformers, switchgear, circuit breakers, network

protection & control gear, project engineering, HT and LT motors, drives, lighting, fans,

pumps and consumer appliances and turnkey solutions in all these areas; thus enhancing

the many aspects of industrial and personal life. The company operates in four segments:

Power Systems, Consumer Products, Industrial Systems and Others. The Power Systems

include transformer, switchgear, turnkey projects and power Supervisory control and data

acquisition systems (SCADA). The Consumer Products business supplies fans, lighting

equipment (light sources and luminaires), pumps, and range of electrical household

appliances and provides solutions for integrated security systems, home automation and

street lighting. The Industrial Systems include electric motors, alternators, drives, traction

electronics and SCADA

Since 2005, CG has embarked upon an ambitious globalization strategy, growing

both organically and inorganically, drawing into its fold leading international companies

such as Pauwels, Ganz, Micro sol, Sonomatra, MSE and PTS. Consequent to this

globalization, 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 CG‘s products, solutions and

services.

CG has been aggressively investing in R&D, product certifications, product quality,

productivity enhancement and operational excellence. CG`s Global R&D center, located

in India, has been recognized for its innovation and received the prestigious "National

Award for the Best R&D Efforts" for its outstanding achievements in the Electrical

Engineering Sector in 2008. CG`s R&D strategy aligns with the Company`s Global

Vision, and focuses on creating platform technologies, shrinking product development

cycle time and enhancing CG‘s Intellectual Property capital.

31

To unify global focus, all CG facilities across the world have taken actions to ensure

that customers receive consistent "One World Quality", for all CG products and solutions

in all parts of the world.

Thanks to its well structured and validated business model, CG is well positioned to

provide its customers with technology-driven, value-added solutions, leveraging a broad

product portfolio on the one hand, and enhancing the entire value-chain quality, delivery,

and services on the other hand.

Company 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 Indian subsidiary '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 LalaKaramchandThapar, 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.

In the 1960s CG took its initial steps to revolutionize its portfolio, which till then

comprised only motors and consumer products. It took a major leap in the electrical

engineering segment, through the acquisition of transformer technology from

Westinghouse Electric Corporation of USA, for manufacture of 400 kV transformers and

aluminum wound transformers. This was followed by further expansion in the switchgear,

vacuum interrupter and allied businesses. By 2005, the Company had emerged as one of

the leading companies in the electrical engineering domain of India, in its three business

areas of Power Systems, Industrial Systems and Consumer Products; and a serious

contender in the global arena.

32

CG established its international manufacturing footprint in the year 2005 by

acquisition of the Belgium 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 in 2007; Sonomatra, France; MSE, USA in

2008 and PTS, UK in 2010 in its quest to establish a technology 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 serious international

player and a recognized transnational corporation.

Initially, CG`s foreign acquisitions operated their respective businesses under their

individual Brand names. To integrate these new entrants into the CG family, the first step

was integration of processes, systems and technologies across all the acquired companies

worldwide. The next step was to articulate the one single idea that provided a common

thread through all the CG Group companies. We discovered our shared philosophy as

"our core strength is the value we place on relationships, and the ability to provide

solutions, which, in turn, strengthen these relationships". This realisation and initiative

gave birth to CG`s new Brand Identity which was launched on 15th October, 2009,

succinctly conveying this shared philosophy.

In May 2011, the company was awarded a contract for acting as the distribution

franchisee of Maharashtra State Electricity Distribution Company Ltd (MSEDCL) for

power distribution in the Jalgaon Circle (Maharashtra) for a period of ten years. In May

19, 2011, the company acquired Emotron of Sweden for an enterprise value of Rs 57.8

million there after they acquired QEI Inc of USA, a provider of automation systems and

products for power transmission and distribution, for an enterprise value of USD 30

million. In 2012 Crompton Greaves Acquired leader in smart Grid Automation : ZIV

Group, then again Crompton Greaves establishes new JIT manufacturing facility in

Goa.AfterwardsGreaves crossed the three million mark in light diesel engines.

Whilst the Company`s name in India will continue to be Crompton Greaves, the

names of all the foreign companies in the CG family start with "CG", thus establishing

their lineage and uniting every company in the CG family with a common face to the

internal as well as the external world, globally.

33

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 140,000 shareholders.

Values

The ideology for CG`s businesses emanates from its 5 Values of Performance

Excellence; Leading Edge Knowledge; Nurturance; Customer Orientation and Intellectual

Honesty. These Values articulate the basic behaviors that every employee is expected to

display in business situations and these form the core principles for all actions.

CG thrusts upon each employee to be aware of and practice the CG Values, and behave in

accordance with the letter as well as the spirit of CG Values.

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 power 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 never fallen 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.

Promotion

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 in thepositive feedback Crompton fans generate from satisfied customers. In

many pockets of the country, the brand has almost become generic to fans. To ensure that

the customer is effectively updated on new product developments, the company has

identified the sales counter as its first point of contact. Crompton provides product

34

information leaflets and catalogues at all these locations, besides also dynamically

displaying its range banners.

Channel partners are trained and armed to handle every conceivable query on

models,performance, maintenance, utility and value-for-price considerations. Sales

promotiondrives at the regional level ensure that Crompton fans can be seen on high-

visibilitylocations such as front-lit hoardings, gantries, bus and metro panels, road shows

andmobile vans. The brand advertises regularly in the print and electronic media at the

national as well as regional levels. It actively seeks to be seen in places of mass interest.

Thus, the sports section of national dailies carried sustained advertising for Crompton

fans during the first round of the IPL cricket series. Crompton Greaves is notably present

at most national exhibitions for electrical goods. Prominent amongst these are Elecrama

and Gridtech which provide the company highvisibility platforms to promote its wares on

a large scale. In the Hannover and the Dubai Electricity Fairs, Crompton Greaves stalls

with banners, display logos, glossy handbooks are must-visit destinations. At these fairs

the company sends out a powerful message: it can compete with any world-class

company and benchmark its products and technologies with the best in the business.

Code of Business Practices

The CG Code of Business Practices has been conceptualized considering CG`s

multi segment and transnational culture, as well as the need to respect the cultures of all

companies in the CG fold. The Code strives to provide guiding principles in various

business situations and is the lighthouse for decision making and actions, with integrity

and discipline. This Code also aims to minimize adverse consequences due to ambiguity,

for CG and every employee.

CORPORATE GOVERNANCE

CG believes that its Management is accountable to its shareholders, for creating,

protecting and enhancing their shareholder value, and reporting to them on the Company's

performance and developments on the performance in a timely and transparent manner.

All our systems institutionalize our belief that Corporate Governance protects the interest

35

of all stakeholders by inculcating in all our operations and processes, the principles of

transparency, integrity, professionalism and accountability.

It starts at the top with the Board of Directors comprising eminent professionals, as

Independent Directors, who provide high quality, impartial advice to the Chairman,

Managing Director and the various Committees of the Board. The Chairman of the Board

is a non-Executive Director providing the necessary independence to the management to

chart its growth strategy and promote operational excellence. Espousing the philosophy of

going beyond Regulatory requirements, the number of Independent Directors on the

Board far exceeds the proportion required between Independent and Non-Independent

directors, prescribed by the Listing Agreement with the Stock Exchanges.

The above ideology is also well reflected through best-in-class business practices

and adoption of high level ethical standards in all its business dealings. CG encourages

Management independence and provides individual flexibility within an established

framework of policies, standards and processes, which for clarity, are amplified in its

"Rules of Procedure for Management" through which decision-making levels, with

respect to the areas of importance in CG`s day-to-day operations within India, are

documented.

As CG`s foreign locations progressively get integrated with CG India, the best

practices of governance get progressively extended to these locations as well. To better

achieve its high Governance standards at its foreign locations as well, CG has articulated

"Transnational Governance Guidelines", with a view to creating a common platform for

Board practices across the Company`s subsidiaries and joint ventures, and introduce an

effective governance framework. These Guidelines outline comprehensive integrated

approach towards Governance, which includes creation of an Authority-Responsibility

Matrix for Management; Compliance Certifications; Board Compositions, Procedures,

Information Flow, and Reporting Formats for Board Reviews, across the Group.

36

Business Review Process

CG has a robust business review framework, to monitor the ultimate direction and

implementation of the Company`s business strategies and plans. Periodically, each

business presents its strategic road map at specially constituted Board meetings.

Approved initiatives form a part of the growth and business strategy of the Divisions. The

performance of the businesses is reviewed at monthly meetings, through a monthly

review by the Managing Director with the Management team. Operational Issues and

budgets are extensively monitored through an elaborate Management Information

System, with adequate focus on non-financial business enablers including process

improvements and customer service

CG Global R&D Centre

CG Global R&D Centre is a state-of-the-art facility which caters to the New

Product Development & technology needs for its Strategic Business Units spread across

the world.

The Global R&D Centre is certified with ISO 9001:2008, ISO 27001:2005 and its

laboratories are NABL accredited for testing & calibration as per ISO/ IEC 17025:2005.

It has also bagged the Golden Peacock Award. At the center of the activities are the 12

expert centers with highly qualified manpower and a robust infrastructure driven by a

strong technology process. The R&D Centre manages CG`s innovation wealth through its

state of the art IPR (Intellectual Property Rights) cell. Through its research contributions,

it has earned itself much recognition such as DSIR recognized R&D Centre.

Recent Developments

Over the decades, Crompton fans have been synonymous with eminence and

dependability. To maintain this distinction Crompton Greaves strives to produce better

fans every day. Its most recent high-profile initiative is the conscientious design and

implementation of a Six Sigma initiative. Six Sigma is a practice designed to

improvemanufacturing processes and reduce production defects leading to a measurable

improvement in customer satisfaction. The company is working towards achieving the

sixth level which entails bringing defects down to 3.4 parts per million opportunities.

37

3.3PRODUCT PROFILE

As one of the world`s leading engineering corporations, Crompton Greaves

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 has retained its leadership position in

the management and application of electrical energy.

PRODUCTS MANUFACTURED

Crompton greaves unique and diverse portfolio ranges from transformers,

switchgear, circuit breakers, network protection & control gear, project engineering, HT

and LT motors, drives, lighting, fans, pumps and consumer appliances and turnkey

solutions in all these areas; thus enhancing the many aspects of industrial and personal

life. This portfolio has been structured into 3 SBUs –

Power Systems

Industrial Systems

Consumer Products.

Power Systems

Power Systems, includes the business area related to transformers, switchgear,

circuit breakers, vacuum interrupters, network protection & control gear, as well as

design, execution and servicing of turnkey T&D as well as sub-station projects and

solutions including complete end to end Renewable projects. This is the largest business

of CG which is now well entrenched throughout the world. It is a high value, high

turnover business with a strong global footprint, contributing to approx. 70 per cent of

CG‟s consolidated revenue. Its facilities are located in Belgium, Canada, Hungary, India,

Indonesia, Ireland, France, UK and USA.

38

Fig,3.1.Transformers& Reactors

Fig 3.2.Switchgear Products

It includes :

Transformers & Reactors

Switchgear Products

Instrument Transformers

Power Quality Solutions

T&D Systems / Engineering Solutions

Protection, Control & Automation

39

Services for Power Systems

Transformer & Switchgear Components

LV Switches & Panel Products

Industrial Systems

Industrial Systems is engaged in the business of providing solutions through the

supply of power conversion equipment‘s of a wide spectrum of High and Low Tension

rotating machines (motors and alternators), inverters & converters, stampings, as well as

railway transportation and signaling equipment‘s. Industrial Systems has a very strong

market presence and market leadership position in most segments in India. It also caters

to overseas markets through its facilities in Hungary and through exports from India. Its

product portfolio includes motors ranging from 20W to 25MW and generators ranging

from 1kW to 70MW; and CG is the largest manufacturer of Low Tension motors in India

offering a range of 0.18kW to 4MW in various standard and customized configurations to

respond to the exacting demands of the industry.

Fig 3.3. Industrial Systems

40

Fig. 3.4. Rail Control & Coach Products

It includes :

Motors: High / Low Voltage AC & DC

Generators / Alternators AC & DC

Traction Motors / Alternators / Control Electrics

FHP / Commercial Motors

Railway Signalling& Coach Appliations

Drives & Automation

Stampings & Laminations

Services for Industrial Systems

Products & Solutions by End Use

Consumer Products

Consumer Products, one of CG's fastest growing businesses, manufactures and

markets a wide spectrum of products ranging from fans, light sources and luminaires,

pumps and household appliances such as geysers, mixer grinders, toasters, irons and

41

electric lanterns. This business is the second largest SBU of CG. It also enjoys a

substantial brand presence and goodwill in India.

CG's Fans and Lighting Brands have been accredited with the 'Superbrand' status.

CG has the largest number of 5-Star energy efficient rated products in this segment in

India, certified by Bureau of Energy Efficiency, a Government of India agency. CG is the

largest manufacturer of fans in India, with offerings for all sections of the market and

various applications - domestic or industrial . Although predominantly India centric, CG

is a leading fan exporter to countries like USA, Italy, South Africa, Ghana, Fiji,

Singapore, Bahrain, UAE, Sri Lanka, UK, France, Oman, Sudan, etc.

Fig. 3.5.Celling Fans

42

Fig. 3.6.Industrial Fans

It includes :

Fans

Appliances

Lighting

Pumps

Home Automation

Integrated SecuritySystems

Wiring Accessories

The Fans Division of Crompton Greaves is the market leader in India and has

been so for over a decade. It‘s dominance of the market is comprehensive and it

manufacturers fans for all sections of the market and for all applications of air delivery –

be it domestic or industrial. In the international market, the company is one of the leading

exporters to countries like USA, Italy, S.Africa, Ghana, Fiji, Singapore, Bahrain, UAE,

Sri Lanka, UK, France, Oman, Sudan, etc.

Its products are known for consistent quality, low current consumption and high volume

air delivery. Crompton Greaves Fans are the preferred supplier for two important Govt.

43

of India departments – Defense and Directorate General of Supplies and Disposal

(DGSD).

The Indian Standards Institute (ISI) has certified the quality of the range of

Crompton Greaves fans and the brand has been awarded the ISI mark. The range is also

certified by a variety of International Quality Certification boards.

Fan range includes:

Luxury Under light Fans

Premium Decorative fans

Star Rated Fans

Standard Fans

Table Fans

Pedestal Fans

Remote Fans

Wall Mounting Fans

Battery Operated Fans

Domestic Exhaust Fans

Speciality Fans

Industrial Fans

CG`s ceiling fans incorporate power and performance, safety and durability,

comfort and style and offer both decorative and economy models to suit individual needs

Crompton Greaves range of ceiling fans is the largest in India and encompasses

everything from under-light and decorative fans to standard models in different colours

and blade shapes. In addition, its table, pedestal and wallmounted fans are available in

both metal and plastic and form an enviable addition to the brands' product portfolio. For

the industrial segment Crompton Greaves has a range of industrial heavy duty exhaust

fans, air circulators and air curtains.

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CHAPTER 4

REVIEW OF LITERATURE

45

4. REVIEW OFLITERATURE

Indian Consumer Durable sector has been witnessing significant growth in recent

years, helped by several drivers such as retail boom, real estate, and housing demand,

greater disposable income and an overall increase in the level of affluence of a

significant section of population. Apart from steady income gains, consumer

financing and hire purchase schemes have become a major driver in the consumer

durable industry. Indian consumer durable industry can be broadly segmented into

three key groups:- 1) White Goods: Washing Machines, Air conditioners, Speakers

and Audio equipment, etc. 2) Kitchen Appliances or Brown Goods: Mixers, Grinders,

Microwave ovens, Fans etc. 3) Consumer Electronics: Mobile Phones, Televisions,

DVD players, VCD players etc (1. Sontaki, S. N. (1999))

Anyone who has a continuing relationship with a supplier in buying and selling

goods is considered a dealer. More specifically, dealers are middlemen selling

industrial goods or durable consumer goods direct to customers; they are the last step

in the channel of distribution. Dealers have continuing, close working relationships

with their suppliers and exclusive selling rights for their producer‘s products within a

given geographic area. They drive a large portion of their sales volume from the

products of a single supplier firm (2. Cateora, PR& Graham (2004)).

In marketing channel relationship, researchers have revealed that a channel

member‟s satisfaction increases long-term orientation and continuity .In such cases,

channel members like retailers and dealers must develop good working relationships

with their suppliers in order to provide merchandise efficiently and effectively to the

consumers. This is because the retailers and their suppliers are interdependent on one

another and this relationship is a key to a successful channel distribution. In addition,

building strong relationships between manufacturers, suppliers, distributors, retailers,

and customers has become an important channel strategy in both industrial and

consumer markets. Through the utilization of relationship element like relationship

satisfaction, buyers and suppliers could integrate various functions spread over

different areas within them which could lead to greater levels of channel trust and

commitment. This effort could enhance their capability to cope with today‟s

worldwide trend towards building closer and more integrated relationships between

46

channel intermediaries and suppliers (3.Corsten, D. & Kumar, N. (2005) & 4.

Leonidou, L. C., Palihawadana, D., &Theodosiou, M. (2006)). Studies found that

higher levels of supports are associated with higher levels of satisfaction in channel

relationships .A study in channel relations by Gassenheimer and Ramsey (1994)

found that dealers‟ reliance on their primary supplier for quality of service support,

not only contributes to the dependence imbalance, but also to their satisfaction with

the relationship. In other words, dealers who receive better service support from their

primary supplier consider the relationship as more satisfying. (5. Gassenheimer, J. B.,

& Ramsey, R. (1994)).

Relationship has become an inevitable feature in today‟s business environment.

Businesses are increasingly emphasizing on the relationships they have with their

suppliers and are demanding that they adhere to high standards. The pressure to

compete also makes it necessary of the development and maintenance of relationships

between buyers and suppliers. In relation to that, small and large companies nowadays

are fostering partnerships with suppliers as a foundation of their supply strategies (6.

Theng-Lau, G., &Goh, M. (2005). A study by Abdul-Muhmin (2005) among Saudi

Arabia manufacturing firms discovered that relationship satisfaction is positively

related to satisfaction with product performance of the supplier‟ marketing

programme. However, there is no relationship found between pricing, delivery

support and marketing communication performance on relationship satisfaction.

(7Adul-Muhmin, A. G. (2002)). In a study done by Nor Azila, M.N*, Selvan, P.a and

Zolkafli, H.b on globalization in the automobile industry: how supplier-dealer

relationship could be effectively managed it was revealed that the dealers‟

relationship satisfaction is contributed by supports that they get form the suppliers.

Specifically, sales support from the supplier appear to develop the amount of

satisfaction that the dealers perceive to obtain from having relationship with the

suppliers.Perceptions of a dealer‟ relationship satisfaction is important to suppliers for

three reasons. First, suppliers who are partnering with highly customer-oriented

dealers, may be able to create greater value for end customers and thereby gain a

competitive advantage by maintaining satisfied relationship with the existing dealers.

Second, suppliers may be able to improve their own levels of performance through

trickle-up effect, which means that when dealers‟ satisfaction improves, by virtue of

the dependent dealer-supplier relationship, it will lead to suppliers‟ sales

improvement. Finally, relationship satisfaction becomes relevant because of the

47

concern given to the importance of relational market base which appears to be

vigorous for current business competencies, especially in the area of managing

relationship between organizations. (8.Nor Azila, M.N., Selvan, P.a, Zolkafli, H.b

(2011))

A study done by Norris Bruce, Preyas Desai & Richard Staelin on Trade

Promotions of Consumer Durables revealed inter-temporal effects of trade promotions

as well as the effect of product durability on the promotion strategies of

manufacturers. For example, manufacturers of more durable products benefit more

from running trade promotions and give deeper discounts.most trade promotion

models assume a) the retailers can forward buy, b) the manufacturers are not able to

easily monitor the retailer‘s sales and c) the product being sold is a non durable and

thus there is no secondary market for the used product. In addition, most trade

promotion models are aimed at situations where the retailer is able to carry multiple

products produced by competing manufacturers. In contrast, automobiles (and many

other durables) are sold through franchise dealers who can carry and display only one

manufacturer‘s line. (9.Norris Bruce, Preyas Desai, Richard Staelin, (January, 2004))

In the study of 2012 India Dealer Satisfaction with Automotive Manufacturers

Index Study, MohitArora mentioned that overall dealer satisfaction is determined by

examining nine factors: marketing and sales activities; product; vehicle ordering and

delivery; sales team; parts; warranty claims; after-sales team; training; and support

from the manufacturer‖J.D. (10.Power Asia Pacific 2012). In a study Md.

AslamUddin studies the dealers‘ satisfaction of Partex Furniture Industry Limited

(PFIL) in Bangladesh. The study was designed to provide manufacturers with insights

about dealer opinions and attitudes to help them improve dealer relations. In order to

ensure the fulfillment of the concept ‗place‘ in marketing mix and to survive in the

competitive environment, organizations need to satisfy its‘ dealers by providing

greater benefits from all the aspects.The total number of dealer and agent outlets of

this organization is about 80. Among them, 20 outlets have been selected as sample.

The findings of this research showed that most of the dealers are satisfied with their

principal in respect of availability of products, timeliness of product deliveries,

quality, price, credit sales, allowances, and brand name. (11.Md. AslamUddin

(August 2012))

48

CHAPTER 5

THEORETICAL FRAMEWORK

49

5. THEORETICAL FRAMEWORK

Market

The market consists of all the potential customers, dealers and producers sharing a

particular need or want who might be willing and able to engage in exchange to satisfy

that need or want. But the growth in the size of the companies and markets has removed

many marketing managers from direct contact to the customers. The role of dealers in

developing the marketing activity cannot be ignored. Several instructions are involved in

discharging marketing functions. There may be either small machinery or big, good or

bad, but they are on their toes to satisfy human wants.

Marketing

Marketing is essentially about marshaling the resources of an organization so that

they meet the changing needs of customers on whom the organization depends. As a verb,

marketing is all about how an organization addresses its markets. Marketing is ―The

management process which identifies anticipates and supplies customer requirements

efficiently and profitably‖. Marketing is a total system of interesting business activities

defined to Plan, piece, promote and distribution want satisfying products & services to

present and potential consumers‖- William. J. Stantion

Marketing is the performance of business activities that direct the follow of goods

and services from the producer to the consumer or user - American Marketing

Association A social and managerial process, by which individuals and groups obtain

what they need and want, through creating and exchanging product and value with others.

Dealer

Dealer is a person or firm engaged in commercial purchase and sale. Dealer may

signify firms that buy or resell products at retail or wholesale basis. A producer cannot

sell all his products directly to consumer, he has to depend upon intermediaries to push,

off, his products. A dealer is an intermediary who helps to market a product. A dealer is

one who purchase and sells products. A dealer may be a wholesaler or a retailer or a

distributor or any agents. The volume of sales depends on the efficiency of a dealer who

assesses the psychology of consumers and takes appropriate steps to sell a product. It is

the dealer who suggests to the manufacturers the suitable media of advertisement and

other promotional tools. Dealers include all activities involved in selling goods and

50

services to those buying for resale or business use. Dealers buy mostly producers and sell

mostly to retailers or industrial consumers

Dealer Satisfaction begins with the following specific assumptions about

company‘s relationship with the customers.

• The dealer service activities focus mainly on existing dealers.

• Some dealers are more important than others

• They are the assets

• The dealer is always specific.

The dealer needs and value should influence every aspect of the organization

strategy, employee safety and performance, product and organization strategy, employee

safety and performance, product and service development, sales and marketing programs,

operational procedures and information and measurement system. Understanding the

dealer is critical to the success of any customer focus initiative, the first step in

understanding the dealers is to listen to them. A company needs to hear what its dealers

are saying about its people, product, service and vision. Their information helps to

develop meaningful product and service. Organizations need to listen to their dealer

satisfied, dissatisfied, neutral and prospective. In the past, dealer satisfaction and service

was the responsibility of a separate organization that supported the dealer primarily after

the sale. Today, service is also likely to be interested with the every product a company

offers. High dealer satisfaction comes from providing effective services. But giving that

service is a continuous activity. It means being efficient, reliable, courteous, curing and

professional every time.

Dealer wants high marginal gain from manufacturers. The main objective of

dealership isearning profits. Dealership business is different from other business. The

peculiar feature of a dealer is dealing with one or more similar products. Dealers earn

commission for goods sold from the manufacturers. The commission depends upon the

value of sales both cash and credit. Dealer excepts income from business because there is

some guarantee of getting more commission from this business. Dealers demand more

commission from the manufactures; they cover the entire market within their locality.

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Channel Marketing

Channel marketing is the means by which manufacturers work with different

distribution channel members to reach consumers with their products. In addition to

helping manufacturers serve customers, channels allow manufacturers to transfer a

portion of their marketing costs to channel partners. Selecting appropriate channel

members and marketing activities involves choosing ones that meet the manufacturer's

needs and effectively serve consumers while generating profitable sales for all channel

members. Much of the power in the channels of distribution has shifted to the retailer as

competition for limited amounts of shelf space has intensified. Therefore, marketers must

focus their attention and effort on "pushing" their products through the channels of

distribution. Trade sales promotions are an important part of this strategy.

Advertising

The term advertising includes any paid form of non-personal communications

through the media about a product, that has an identified sponsor. The use of payment

differentiates advertising from public relations for which no payment is made for the time

or space to convey a message. The media may include telephone directories, guides,

newspapers, magazines, radio, television, direct mail, Web pages and billboards. It is

normally associated with mass communication, where a broad target market is to be

contacted.

Types Of Advertising:

Product advertising:

Product advertising is aimed at enriching people to the store in order to consider

specific merchandise. Product advertising will feature the promotion of merchandise that

is new, exclusive, and superior in aspects of quality and design as well as creating

awareness of complete assortments or special merchandise events.

Markdown event advertising:

This is used to create some excitement about a special period of lower cost offers

for products. It is likely to be more successful if the reduction is believed to be part of a

genuine sale of products which in the past had been fairly faced.

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Institutional advertising:

This type of advertising is used to sell the store or shopping mall as a pleasing

place to shop. With the use of institutional advertising, the store attempts to reinforce the

image of one or more of the following: a leader in fashion, fair prices, wide merchandise

selection, superior service or quality, a leisure experience or somewhere to enjoy visiting.

Co-operative advertising:

This is used where manufacturers fund part of a promotion by supplying leaflets

or advertising material for use by the store. The store can add its own address to ready

prepared printed material and carry out mail drops or other methods of distribution.

Alternatively a manufacturer may agree to share equally the costs of an advertising

campaign.

Credit facilities:

Business is based on bonafide good faith, confident and mutual trust. Long ago

businesswas based on cash basis. But now business is based on mercantile basis (Credit

basis).More over cash basis of business in also not possible for every business because of

want of funds. Mercantile basis of business is globally accepted and very easier for the

business people.Credit facilities to regular customer and genuine consumers will enhance

the business.There some consumers who buy mostly in credit and make their payment at

regular intervals. There is some agreement between the buyer and seller for a credit

purchase.This agreement also covers terms of payment trade discount, cash discount etc.,

for thesmooth ant regular payment of cash. Credit facility system is beneficial to both the

buyersand sellers. There will be tremendous improvement on both the sides. Allowing

credit toconsumers is also useful for growth and expansion.

Trade Sales Promotions

Trade sales promotions are designed to encourage channel members to stock,

display, and promote the marketer's brand. They are part of a promotional "push"

strategy. Their role is to improve trade relations, gain new distributors, and obtain support

for consumer sales promotions.

53

Trade Sales Promotion Tactics (or Tools)

Once the trade objectives and strategies are established, it is important to develop

a tactical plan for the execution of these promotions. There are numerous people and

tasks to be planned within a specific period to ensure that the trade promotion strategies

are executed perfectly.

There are a variety of trade promotion techniques manufacturers can use as incentives (it

leads to price reductions) for sales representatives, wholesalers, distributors and retailers.

Contests and Incentives

Manufacturers use contests and special incentive programs to stimulate greater

selling effort from resellers, management, and/or sales personnel. Special prizes and

contests (especially travel-related contests) are available when sales reach a

predetermined volume (or a stated percentage increase on the previous year's sales). The

sales personnel of the intermediaries are an important target of contests or special

incentives. Contests offering several prizes are much more successful than those offering

only one or two big prizes.

Trade Allowances

The most commonly used trade promotion is some form of trade allowance. This

is a discount or deal offered to the retailer or channel member to encourage them to stock,

promote, and/or display a manufacturer's products. There are several types of trade

allowances, including:

Buying allowances—A deal or discount offered to resellers in the form of a price

reduction on a product ordered during a fixed time period. As an example, a coat

manufacturer may offer a 30% reduction in the cost of a coat if the retailer agrees to order

and pay for the coat in the summer months. This allowance benefits the manufacturer in

that it can keep the factory operating during the summer months, and it benefits the

retailer in that it receives a substantial discount by ordering early.

Promotional allowances—These are discounts provided to retailers for performing certain

promotional or merchandising activities in support of a manufacturer's brand.

Slotting allowances or fee—A one-time fee manufacturers pay retailers to stock a product

and provide a slot or position in their stores. The fee depends upon the product placement

54

on the shelf-shelf space just above eye level costs more than shelf space closer to the

floor-and how many front-facing columns the product will occupy on the shelf.

Displays and Point-of-Purchase (POP) Materials

POP materials are displays designed by the manufacturer and distributed to retailers to

promote a particular brand or line of products. Products often sell better when they are on

display, as they are more likely to be noticed by consumers.

POP displays advertise a product at its point of purchase. They are important promotional

tools as they help a manufacturer obtain more effective in-store merchandising of their

products. The manufacturer employs a price discount called a display allowance to obtain

trade support from retailers for their displays.

Marketers use a variety of POP materials, including on-premise signs, window displays,

display racks, display signs, wall displays, posters, banners, audiovisual materials, and

vending machines. These materials can be as small as a 2? by 3? sign card on a store shelf

or as large and expensive as a major cosmetic manufacturer's counter in a department

store.

Keep in mind, that the lower the level of customer service, the more essential POP

material becomes. These displays are particularly important in self-serve outlets.POP

materials are effective because they provide customers with a reminder just prior to

making their purchase decision and a finishing touch to a well-integrated MC program.

Most importantly, when the creative concept and message of the marketing

communication tools are repeated in an in-store display, sales increase significantly.

Dealer Loaders

These are an incentive or a gift given to a wholesaler or retailer in return for

purchasing a particular quantity of a product during a trade sales promotion. Often the

incentive is a POP display or attached to a POP display—these types of dealer loaders are

permanent displays the store can continue to use after the end of the promotion. The

objective of dealer loaders is to gain the attention of the trade and encourage support of

the trade sales promotion.

55

Gifts

Some reputed companies will provide a number of gifts to its dealers and distributors.

Their gifts are allowed to improved sales in all areas. Dealers will be much motivated

when gifts are offered by manufactures. Gifts are a special kind of incentives, which will

pursue the dealers to increase their sales. The main objectives of offering gifts to dealer

and distributors are to enhance or improve sales to the maximum level. The competition

can be easily managed when gifts are offered to dealer, the number of types of gifts is as

follows.

Value of sales in Rupees.

Value of sales in units

Seasonal gifts.

Gifts to dealers will play a greater role in marketing. This will motivate the full dealers to

do better and this will also encourage better sales.

56

CHAPTER 6

DATA ANALYSIS AND INTERPRETATION

57

6. DATA ANALYSIS AND INTERPRETATION

6.1. EXPERINCE IN SELLING CROMPTON GREAVES PRODUCTS

EXPERIENCE IN SELLIG CROMPTON PRODUCTS

Sl.No. Criteria No. of respondents % of respondents

1 Less than 3 years 13 17.3

2 4 – 7 years 14 18.7

3 8 – 10 years 7 9.3

4 Above 10 years 41 54.7

Total 75 100

Inference:

This table shows the experience of the dealers in dealing the Crompton Greaves

products. 18.7% of the dealers have experience in dealing Crompton products for 4 to 7

years. Experienced dealers are up to 9.3%. 41% of the dealers are having experience

above 10 years and the rest 17.3% have less than 3 years‘ experience with Crompton

products.

Fig. 6.1.EXPERIENCE IN SELLING CROMPTON PRODUCTS

58

6.2. DEALING WITH COMPETITORS

DEALING WITH COMPETITORS

Sl. No. Criteria No. of respondents % of respondents

1 Yes 63 84

2 No 12 16

Total 75 100

Inference:

Most of the dealers deal with the competitors also. This is in order to satisfy their

various customers who have different brand and product preferences. Most of them are

dealing in companies like Havells,Orient, Usha, Bajaj, Khaitan, Polar and many other

local brands. Many of them are dominated by Crompton Greaves.

Fig. 6.2 DEALING WITH COMPETITORS

59

6.3. USE AND PATTERN OF ADVERTISEMENTS

6.3.1 USE OFADVERTISEMENT

USE OFADVERTISEMENT

Sl. No. Criteria No. of respondents % of respondents

1 Yes 16 21.3

2 No 59 78.7

75 100

6.3.2PATTERN OF ADVERTISEMENTS

PATTERN OF ADVERTISEMENTS

Sl. No. Criteria No. of respondents % of respondents

1 Independently by

the shop

8 10.7

2 In collaboration

with the company

8 10.7

3 Solely by the

company

59 78.7

75 100

Inference:

These tablesdisplay the use of advertisements by the dealers of Crompton Greaves

decorative fans and the pattern in which they have used it. It can be seen that majority of

the dealers ie. Almost 78.7% had no advertisements for the decorative fan ranges, these

dealers display a pattern of advertisement which is done solely by the company. 21.3 %

of the dealers mentioned the use of advertisements of which the half of them does their

advertisements independently by the shop and the other half does advertisements in

60

collaboration with the company. The common forms of advertisements seen are Bill

boards, Posters,Catalogues etc.

Fig. 6.3 (a )USE OF ADVERTISEMENT

61

F1g. 6.3 (b)PATTERN OF ADVERTISEMENTS

62

6.4. FACTORS AFFECTING DEALER SATISFACTION.

FACTORS AFFECTING DEALER SATISFACTION.

Sl. No. Criteria No. of respondents % of respondents

1 Promotion Schemes 3 4

2 Company Policy 0 0

3 Margin 8 10.7

4 Brand Name 24 32

5 Availability 5 6.7

6 Timely Delivery 4 5.3

7 Product Quality 23 30.7

8 Price 6 8

9 Credit Period 2 2.7

Total 75 100

Inference:

The table shows the factors affecting dealer satisfaction.Most of the dealers

mentioned Brand name(32%) and Product quality(30.7) as their main reason for

continuing as a Crompton greaves dealer. Those dealers who mentioned margin as a main

factor were 10.7 %. 8 % of the dealers mentioned Price as a major factor. Percentage of

dealers who mentioned availability of the products as a major factor were 6.7 & 5.3 % of

dealers said Timely delivery as their main factor. 4% of dealers mentioned Promotion

schemes as a factor affecting dealer satisfaction and the rest 2.7 % dealers mentioned

Credit period as the major factor for their satisfaction.

63

Fig.6.4 FACTORS AFFECTING DEALER SATISFACTION

64

6.5. OPINION ABOUT THE BRAND CROMPTON GREAVES

OPINION ABOUT THE BRAND CROMPTON GREAVES

Sl. No. Criteria No. of respondents % of respondents

1. Very Good 25 33.3

2 Good 34 45.3

3 Average 16 21.3

4 Poor 0 0

5 Very Poor 0 0

Total 75 100

Inference:

Majority of the dealers had the best remarks for the brand Crompton Greaves 33.3

and 41.3% of the dealers mentioned the brand Crompton as very good and Good

respectively. 21.3 % of the dealers mentioned the brand to be Average. No dealer

mentioned the Brand to be Poor or Very poor.

Fig. 6.5 OPINION ABOUT THE BRAND CROMPTON GREAVES

65

6.6. OPINION ABOUT QUALITY OF CROMPTON GREAVES

DECORATIVE FANS

OPINION ABOUT QUALITY OF CROMPTON GREAVES DECORATIVE FANS

Sl. No. Criteria No. of respondents % of respondents

1. Very good 31 41.3

2 Good 31 41.3

3 Average 13 17.3

4 Poor 0 0

5 Very Poor 0 0

Total 75 100

Inference:

Majority of the dealers said the quality of Crompton Greaves decorative fans is

the best in market today. 41.3 % mentioned it to be very good. 41.3 % of them said its

quality to be good. The rest 13 % of the dealers mentioned the Quality of Crompton

greaves decorative fans to be Average. No dealers mentioned the quality of the fans to be

below average.

66

Fig. 6.6QUALITY OF CROMPTON GREAVES DECORATIVE FANS

67

6.7.OPINION ABOUT MARGIN OF CROMPTON GREAVES

DECORATIVE FANS

OPINION ABOUT MARGIN OF CROMPTON GREAVES DECORATIVE FANS

Sl. No. Criteria No. of respondents % of respondents

1. Very good 4 5.3

2 Good 15 20

3 Average 44 58.7

4 Poor 12 16

5 Very Poor 0 0

Total 75 100

Inference :

Most of dealers mentioned the margin from Crompton Greaves decorative fans to

be having moderate level of margin. 44% of dealers said their margin to be average.4% of

dealers mentioned their margin to be very good and the rest 15% of the dealers said their

margin from Crompton premium decorative fans to be good.

68

Fig. 6.7OPINION ABOUT MARGIN OF CROMPTON GREAVES DECORATIVE

FANS

69

6.8.OPINION ABOUT PROMOTIONAL ACTIVITIES OF

CROMPTON GGREAVES

OPINION ABOUT PROMOTIONAL ACTIVITIES OF CROMPTON GGREAVES

Sl. No. Criteria No. of respondents % of respondents

1. Very good 12 16

2 Good 21 28

3 Average 30 40

4 Poor 12 16

5 Very Poor 0 0

Total 75 100

Inference:

Mostof the dealers were satisfied by the present promotional activities of

Crompton. 40 % of thedealers mentioned it to be average. 28 percent of the dealers

mentioned it to be good, 16 % mentioned it to be very good and 16 % of them rated it as

poor.No dealer said it to be very poor.

70

Fig. 6.8 OPINION ABOUT PROMOTIONAL ACTIVITIES OF CROMPTON

GREAVES

71

6.9. MOST PREFERED TYPE OF PROMOTIONAL ACTIVITY

MOST PREFERED TYPE OF PROMOTIONAL ACTIVITY

Sl. No. Criteria No. of respondents % of respondents

1. Discount 41 54.7

2 Gift/Prize 10 13.3

3 Offers 22 29.3

4 Others 2 2.7

Total 75 100

Inference :

54.% of the dealers said Discount as their most preferred type of promotion. 29.3

% of the dealers said offers were their most preferred type of promotion and 13.3 %

dealers selected Gifts or Prizes as their preferred type of promotion.2.7 % of the dealers

suggested some other methods of promotion such as dealer meets, bonuses, surprise

schemes etc.

72

Fig.6.9. MOST PREFERED TYPE OF PROMOTIONAL ACTIVITY

73

6..10. OPINION ABOUT TIMELY DELIVERY OF CROMPTON

DECORATIVE FANS

OPINION ABOUT TIMELY DELIVERY OF CROMPTON GREAVES

DECORATIVE FANS

Sl. No. Criteria No. of respondents % of respondents

1. Highly Satisfied 36 48

2 Satisfied 29 38.7

3 Average 4 5.3

4 Dissatisfied 6 8

5 Highly Dissatisfied 0 0

Total 75 100

Inference:

Most of the dealers were highly satisfied by the timely delivery of Crompton

decorative fans of which 48 % were highly satisfied, 38.7 % rated it satisfied and 5.3% of

them marked it Average. Thought 8 % of them were dissatisfied none of the dealer were

highly dissatisfied.

74

Fig.6.10. OPINION ABOUT TIMELY DELIVERY OF CROMPTON

DECORATIVE FANS

6..11. OPINION REGARDING EMPLOYEES OF CROMPTON

GREAVES

OPINION REGARDING EMPLOYEES OF CROMPTON GREAVES

Sl. No. Criteria No. of respondents % of respondents

1. Highly Satisfied 37 49.3

2 Satisfied 28 37.3

3 Average 7 9.3

4 Dissatisfied 3 4

5 Highly Dissatisfied 0 0

Total 75 100

75

Inference:

Majority of the dealers were highly satisfied by employees of Crompton. More

than 49 % of the dealers were highly satisfied, More than 37 % of the dealers were

satisfied and 9.3 percent f the dealers rated it average. Though no dealers were highly

dissatisfied 4 % of the dealers were found dissatisfied

Fig.6.11. OPINION REGARDING EMPLOYEES OF CROMPTON

GREAVES

.

76

6.12. OPINION REGARDING AFTER SALES SERVICE OF CROMPTON

DECORATIVE FANS

OPINION REGARDING AFTER SALES SERVICE OF CROMPTON

DECORATIVE FANS

Sl. No. Criteria No. of respondents % of respondents

1 Highly Satisfied 29 38.7

2 Satisfied 29 38.7

3 Average 14 18.7

4 Dissatisfied 3 4

5 Highly Dissatisfied 0 0

Total 75 100

Inference :

Majority of the dealers found to be happy with the aftersales service of Crompton

greaves . 38.7 % were Highly satisfied and 38.7 % of them were found satisfied/ 18.7 %

of the dealers found the aftersales service to be average and 4 % of them were dissatisfied

but none of them were highly dissatisfied.

77

Fig. 6.12 OPINION REGARDING AFTER SALES SERVICE OF CROMPTON

DECORATIVE FANS

6.13. OPINION REGARDING AVAILABILITY OF CROMPTON DECORATIVE

FANS

OPINION REGARDING AFTERSALES SERVICE OF CROMPTON

DECORATIVE FANS

Sl. No. Criteria No. of respondents % of respondents

1 Very Good 26 34.3

2 Good 28 37.3

3 Average 14 18.7

4 Poor 7 9.3

5 Very Poor 0 0

Total 75 100

78

Inference:

37.3 % of the dealers mentioned that the availability of the Crompton greaves fans

is good. More than 34 % of the dealers mentioned that the availability is Very good and

18.7% of them said that the availability was average. Although none of the dealers

mentioned about very poor availability 9.3% of them mention it to be poor.

Fig6.13. OPINION REGARDING AVAILABILITY OF CROMPTON

DECORATIVE FANS

79

6.14. AREAS FOR BOOSTING PREMIUM DECORATIVE FAN

RANGE.

AREAS FOR BOOSTING PREMIUM DECORATIVE FAN RANGE.

Sl. No. Criteria No. of respondents % of respondents

1 Promotional 20 26.7

2 Sales 15 20

3 Follow up 9 12

4 Service 22 29.3

5 Credit facility 9 12

Total 75 100

Inference:

Most of the dealers ( 29.3% ) mentioned that Service can be a bit more early, 26.7

% of the dealers found that more importance should be given to promotional activities. 20

% of the dealers mentioned a help in Sales can improve the Premium Decorative fan

range. 9% of the dealers mentioned the need for help in credit facility and rest 12 %

specified follow up as a way for improving the Premium decorative range.

80

Fig.6.14.AREAS FOR BOOSTING PREMIUM DECORATIVE FAN

RANGE.

81

6.15. OVERALL OPINION OF DEALER SATISFACTION OF CROMPTON

DECORATIVE FANS

OVERALL OPINION OF DEALER SATISFACTION OF CROMPTON

DECORATIVE FANS

Sl. No. Criteria No. of respondents % of respondents

1 Highly Satisfied 25 33.3

2 Satisfied 39 52

3 Average 10 13.3

4 Dissatisfied 1 1.3

5 Highly Dissatisfied 0 0

Total 75 100

Inference :

Majority of the dealers were happy with their dealership with Crompton greaves.

No dealer was highly dissatisfied by their Crompton dealership. 33.3 were Highly

Satisfied with the dealership and 52 % of them were satisfied. More than 13 % of the

dealers gave an average rating for the dealership and 1.3% of the dealers were found

dissatisfied.

82

Fig.6.15. OVERALL OPINION OF DEALER SATISFACTION OF CROMPTON

DECORATIVE FANS

83

6.2STATISTICAL ANALYSIS

Hypothesis 1

H0 :Brand name does not affect the overall satisfaction.

H1 : Brand name does affect the overall satisfaction.

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

DealerSatisfaction *

Brandname 75 100.0% 0 0.0% 75 100.0%

DealerSatisfaction * BrandnameCrosstabulation

Count

Brandname Total

3 4 5

DealerSatisfacti

on

2 0 0 1 1

3 5 2 3 10

4 6 24 9 39

5 5 8 12 25

Total 16 34 25 75

Chi-Square Tests

Value df Asymp. Sig.

(2-sided)

84

Pearson Chi-Square 14.053a 6 .029

Likelihood Ratio 13.470 6 .036

Linear-by-Linear

Association 1.493 1 .222

N of Valid Cases 75

a. 6 cells (50.0%) have expected count less than 5.

The minimum expected count is .21.

Symmetric Measures

Value Approx.

Sig.

Nominal by

Nominal

Phi .433 .029

Cramer's

V .306 .029

N of Valid Cases 75

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming

the null hypothesis.

Inference:

Since the Asymp. Sig. (2-sided) value is more than the cut off value (0.05) , therefore

the null hypothesis is H0 accepted and the H1 is rejected i.e Brand name does not affect

the Dealer satisfaction.

85

Hypothesis 2

H0 :Product quality does not affect the overall satisfaction.

H1 : Product quality does affect the overall satisfaction.

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Overalsatsfn *

Quality 75 100.0% 0 0.0% 75 100.0%

Overalsatsfn * Quality Crosstabulation

Count

Quality Total

Average Good Very Good

Overalsatsfn

Poor 0 0 1 1

Average 3 5 2 10

Satisfied 8 15 16 39

Highly Satisfied 2 11 12 25

Total 13 31 31 75

Chi-Square Tests

Value df Asymp. Sig.

(2-sided)

Pearson Chi-Square 5.502a 6 .481

86

Likelihood Ratio 6.225 6 .398

Linear-by-Linear

Association 1.755 1 .185

N of Valid Cases 75

a. 7 cells (58.3%) have expected count less than 5. The

minimum expected count is .17.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .271 .481

Cramer's V .192 .481

N of Valid Cases 75

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null

hypothesis.

Inference:

Since the Asymp. Sig. (2-sided) value is more than the cut off value (0.05) , therefore

the null hypothesis H0 accepted and the H1 is rejected i.eProduct quality does not affect

the Dealer satisfaction.

87

Hypothesis 3

H0 :Credit period does not affect the overall satisfaction.

H1 : Credit does affect the overall satisfaction.

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Overalsatsfn *

Credit 75 100.0% 0 0.0% 75 100.0%

Overalsatsfn * Credit Crosstabulation

Count

Credit Total

Poor Average Good Very

Good

Overalsatsfn

Poor 1 0 0 0 1

Average 3 4 2 1 10

Satisfied 2 20 15 2 39

Highly

Satisfied 3 3 13 6 25

Total 9 27 30 9 75

Chi-Square Tests

88

Value df Asymp. Sig.

(2-sided)

Pearson Chi-Square 24.634a 9 .003

Likelihood Ratio 22.167 9 .008

Linear-by-Linear

Association 9.706 1 .002

N of Valid Cases 75

a. 12 cells (75.0%) have expected count less than 5. The

minimum expected count is .12.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .573 .003

Cramer's V .331 .003

N of Valid Cases 75

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null

hypothesis.

Inference:

Since the Asymp. Sig. (2-sided) value is less than the cut off value (0.05) , therefore

the null hypothesis H0 rejected and the H1 is accepted i.e Credit period does affect the

Dealer satisfaction.

89

Hypothesis 4

H0 :Promotional activities does not affect the overall satisfaction.

H1 : Promotional activities does affect the overall satisfaction.

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Overalsatsfn *

Promotion 75 100.0% 0 0.0% 75 100.0%

Overalsatsfn * Promotion Crosstabulation

Count

Promotion Total

Poor Average Good Very

Good

Overalsatsf

n

Poor 1 0 0 0 1

Average 5 5 0 0 10

Satisfied 3 20 14 2 39

Highly

Satisfied 3 5 7 10 25

Total 12 30 21 12 75

Chi-Square Tests

90

Value df Asymp. Sig.

(2-sided)

Pearson Chi-Square 35.548a 9 .000

Likelihood Ratio 34.909 9 .000

Linear-by-Linear

Association 19.359 1 .000

N of Valid Cases 75

a. 10 cells (62.5%) have expected count less than 5. The

minimum expected count is .16.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .688 .000

Cramer's V .397 .000

N of Valid Cases 75

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null

hypothesis.

Inference:

Since the Asymp. Sig. (2-sided) value is less than the cut off value (0.05) , therefore

the null hypothesis H0 rejected and the H1 is accepted i.e Promotional activities does

affect the Dealer satisfaction.

91

Hypothesis 5

H0 Timely delivery of goods does not affect the overall satisfaction.

H1 : Timely delivery of goods does affect the overall satisfaction.

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Overalsatsfn *

Tmlydelivry 75 100.0% 0 0.0% 75 100.0%

Overalsatsfn * TmlydelivryCrosstabulation

Count

Tmlydelivry Total

Poor Average Satisfied Highly

Satisfied

Overalsatsf

n

Poor 1 0 0 0 1

Average 3 1 4 2 10

Satisfied 2 1 20 16 39

Highly

Satisfied 0 2 5 18 25

Total 6 4 29 36 75

Chi-Square Tests

Value df Asymp. Sig.

(2-sided)

92

Pearson Chi-Square 30.146a 9 .000

Likelihood Ratio 23.662 9 .005

Linear-by-Linear

Association 15.916 1 .000

N of Valid Cases 75

a. 12 cells (75.0%) have expected count less than 5. The

minimum expected count is .05.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .634 .000

Cramer's V .366 .000

N of Valid Cases 75

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null

hypothesis.

Inference:

Since the Asymp. Sig. (2-sided) value is less than the cut off value (0.05) , therefore

the null hypothesis H0 rejected and the H1 is accepted i.e Timely delivery of goods does

affect the Dealer satisfaction.

93

Hypothesis 6

H0 Employee interactions with the dealer does not affect the overall

satisfaction.

H1 Employee interactions with the dealer does affect the overall

satisfaction.

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Overalsatsfn *

Employees 75 100.0% 0 0.0% 75 100.0%

Overalsatsfn * Employees Crosstabulation

Count

Employees Total

Poor Average Satisfied Highly

Satisfied

Overalsatsf

n

Poor 0 0 1 0 1

Average 1 3 5 1 10

Satisfied 2 3 17 17 39

Highly

Satisfied 0 1 5 19 25

Total 3 7 28 37 75

94

Chi-Square Tests

Value df Asymp. Sig.

(2-sided)

Pearson Chi-Square 19.004a 9 .025

Likelihood Ratio 19.916 9 .018

Linear-by-Linear

Association 13.264 1 .000

N of Valid Cases 75

a. 12 cells (75.0%) have expected count less than 5. The

minimum expected count is .04.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .503 .025

Cramer's V .291 .025

N of Valid Cases 75

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null

hypothesis.

Inference:

Since the Asymp. Sig. (2-sided) value is less than the cut off value (0.05) , therefore

the null hypothesis H0 rejected and the H1 is accepted i.e Employee interactions with the

dealer does affect the Dealer satisfaction.

95

Hypothesis 7

H0 : After sales service does not affect the overall satisfaction.

H1 : After sales service does affect the overall satisfaction.

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Overalsatsfn *

Aftrsales 75 100.0% 0 0.0% 75 100.0%

Overalsatsfn * AftrsalesCrosstabulation

Count

Aftrsales Total

Poor Average Satisfied Highly

Satisfied

Overalsatsf

n

Poor 1 0 0 0 1

Average 0 6 2 2 10

Satisfied 2 6 18 13 39

Highly

Satisfied 0 2 9 14 25

Total 3 14 29 29 75

Chi-Square Tests

96

Value df Asymp. Sig.

(2-sided)

Pearson Chi-Square 41.068a 9 .000

Likelihood Ratio 22.057 9 .009

Linear-by-Linear

Association 12.699 1 .000

N of Valid Cases 75

a. 11 cells (68.8%) have expected count less than 5. The

minimum expected count is .04.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .740 .000

Cramer's V .427 .000

N of Valid Cases 75

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null

hypothesis.

Inference:

Since the Asymp. Sig. (2-sided) value is less than the cut off value (0.05) , therefore

the null hypothesis H0 rejected and the H1 is accepted i.e After sales service does affect

the Dealer satisfaction.

97

Hypothesis 8

H0 : Availability of products during season does not affect the overall

satisfaction.

H1 : Availability of products during season does affect the overall

satisfaction.

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Overalsatsfn *

Availablty 75 100.0% 0 0.0% 75 100.0%

Overalsatsfn * AvailabltyCrosstabulation

Count

Availablty Total

Poor Average Good Very

Good

Overalsatsfn

Poor 0 1 0 0 1

Average 5 3 2 0 10

Satisfied 1 9 21 8 39

Highly

Satisfied 1 1 5 18 25

Total 7 14 28 26 75

98

Chi-Square Tests

Value df Asymp. Sig.

(2-sided)

Pearson Chi-Square 50.165a 9 .000

Likelihood Ratio 44.007 9 .000

Linear-by-Linear

Association 27.294 1 .000

N of Valid Cases 75

a. 11 cells (68.8%) have expected count less than 5. The

minimum expected count is .09.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .818 .000

Cramer's V .472 .000

N of Valid Cases 75

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null

hypothesis.

Inference :

Since the Asymp. Sig. (2-sided) value is less than the cut off value (0.05) ,

therefore the null hypothesis H0 rejected and the H1 is accepted i.e Availability of

products during season does affect the Dealer satisfaction.

99

CHAPTER 7

FINDINGS, SUGGESTIONS AND CONCLUSION

100

7.1FINDINGS

Almost all dealers of Crompton greaves Premium decorative fans are satisfied with

their dealership.

It can be seen that more than half of the dealers in Ernakulam district had experience

as a Crompton greaves dealer for more than 10 years.

Many dealers were electrical retailers

Majority of the dealers dealt with competitors of Crompton Greaves such as Havells,

Orient, Usha, Bajaj, Khaitan, Polar and other brands such as Almonard,,Impexetc

,indicating that there is high market competition.

It is found that majority of the dealers consider the Brand name and Product Quality

of Crompton Greaves fans to be the highest available in the market.

It is found that majority of the dealers have not used any form of advertisements for

promoting decorative fan range and depended highly on advertisements by the

company alone.

Very few dealers are using advertisements on their own consisting of posters and

hoardings.

Margin of Crompton greaves decorative fans is considered to be average compared to

other brand. Almost 12 % of the dealers have indicated dissatisfaction with the

present margin.

Majority of the dealers consider the current promotional activities done for Crompton

greaves decorative fans as average and a few even consider them to be poor.

Most of the dealers consider discount more than offers , gifts and prizes

Majority of the dealers are highly satisfied by the availability and timely delivery of

Crompton decorative fans , even when the demand is high

Majority of Dealers were impressed with the employees of Crompton greaves that

they come into contact with.

Although dealers think the aftersales service of Crompton greaves fans are excellent

few dealers mentioned that Servicing of the complaints should be made more fast

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20 % of the dealers mentioned a help in Sales can improve the Premium Decorative

fan range.

9% of the dealers wanted better credit periods.

Through statistical analysis the factors that affecting dealer satisfaction were found as

credit period, promotional activities,timely delivery of goods,employee interaction

with the dealer, after sales service and availability of products.

Dealers mentioned existence of duplicates in the market.

Dealers mentioned the presence of price difference in the market

Dealers are uninformed regarding few of the models available within the premium

decorative range.

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7.2SUGGESTIONS

As some dealers have mentioned their dissatisfaction with the after sales servicing

of Crompton Greaves fans, facilitating speedy spot servicing is suggested.

There are only very few exclusive dealers for Crompton greaves in Ernakulam

district, therefore having exclusive dealership can be helpful for the company.

Majority of the Crompton Greaves dealers depend solely on company

advertisement for making sales which mainly consist of hoardings and bill

boards .Encouraging the dealers to advertise the Crompton Greaves fans in

collaboration with the company by word of mouth and Point-of-purchase displays

etc. can make positive differences in the sales.

12% of the dealer mentioned that margin received is average compared to other

brands. This could be due to the price difference that exist in the market.Hence,

the existence of price differences in the market is to be checked and controlled by

the company by maintaining strict price standardization.

Dealer meets, trade allowances and push money can be good promotional

techniques to boost the morale of the dealers.

The existence of duplicates in the market should be checked and dealt with using

methods such as holograms, Unique bar coding etc.

Few dealers have mentioned their displeasure with the availability of the fans

during seasons of high demand. A suitable method should be adopted to forecast

the dealer‘s demand. For example opening an online portal showing the current

stock levels with each dealer can be an effective solution.

Having a separate website where the Crompton Greaves fan dealers can enter

using a separate user name and password thereby creating a platform for them to

interact among each other and the company alike can be a cost effective way to

maintain the dealer‘s morale.

.

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7.3. CONCLUSION

In today‘s economy all manufacturers need to pay attention on how to buildstrong

long-term relationships with their dealers ‗chain..For a manufacturing company, in order

to satisfy its customers, it is highly important to satisfy its dealers, as they are the direct

customers to them. Establishing satisfaction as the ultimate goal, is like the other ultimate

goals of business pursuit of higher profits or shareholders wealth. Perfect dealer service or

satisfaction is one that meets the combined need satisfaction.

The Study on dealer satisfaction of Crompton greaves premium decorative ceiling

fans in Ernakulam district helped in understanding the level of satisfaction of fan

dealers.Another purpose of the study was to measure the factors affecting the dealer

satisfaction.The study helped in having a better understanding about Premium decorative

fan market in Ernakulam district and about the dealer network of Crompton greaves fans.

Most of the dealers have good opinion about the brand and quality of Crompton greaves.

Majority of the dealers are impressed by the timely delivery and employeesinteractionson

part of the company.The study revealed that satisfaction of Crompton Greaves premium

decorative fans dealers is good.

Statistical analysis of the hypotheses revealed that overall satisfaction of the

dealers were affected by the factors such as credit period, promotional activities, timely

delivery of products, employees interaction with the dealer, after sales service and

availability of products during seasons of high demand.Study revealed few areas that

need continuedattention from the company such as advertising,sales, credit facilities,

better promotion, speedy serviceetc. These factors can be crucial for further success of the

company.

Understanding the needs of the dealers beforehand and making adequate efforts to

meet those needs on time are crucial for the growth and success of Company‘s business.

Dealer satisfaction is a systemized service that involves the entire organization. This

study helped in measuring and understanding those factors which affected dealer

satisfaction and to estimate the overall satisfaction of Crompton greaves Premium

decorative fan dealers.

104

BIBLIOGRAPHY

Books

Principles of marketing,PhilipKotler& Gary Armstrong

Marketing research -Principles applications & Cases, D.D. Sharama& G.C. Beri

Statistical tools, S.P. Gupta

Research methodology,C.R. Kothari

Basic marketing, William G.Zikmund, Michaell d. Amico.

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www.google.com

www.cgglobal.com

www.jdpower.com

Journals

1. Sontaki, S. N. (1999). Marketing Management - In the Indian background (1/e).

New Delhi: Kalyani Publishers, 209.

2. Cateora, PR& Graham (2004), International Marketing, McGraw-Hill.

3. Corsten, D. & Kumar, N. (2005) 'Do suppliers benefit from colloborative

relationships with large retailers? An Empirical investigation of efficient consumer

response action'

4. Leonidou, L. C., Palihawadana, D., &Theodosiou, M. (2006) 'An integrated model

of the behavioural dimensions of industrial buyer-seller relationships', European

Journal of Marketing‖

5. Gassenheimer, J. B., & Ramsey, R. (1994) 'The impact of dependence on dealer

satisfction: A comparison of reseller-supplier relationships', Journal of Retailing

6. Theng-Lau, G., &Goh, M. (2005) 'Buyer-seller relationship in PCB industry',

Supply Chain Management: An International Journal, vol. 10, no. 4, pp. 302-312

105

7. Adul-Muhmin, A. G. (2002) „Effects of suppliers' marketing program variables on

industrial buyers' relationship satisfaction and commitment‟, Journal of Business &

Industrial Marketing.

8. Nor Azila, M.N., Selvan, P.a, Zolkafli, H.b (2011) ―Globalization in the

automobile industry: how supplier-dealer relationship could be effectively managed?‖

9. Norris Bruce, Preyas Desai, Richard Staelin, (January, 2004)

10. ‖J.D. Power Asia Pacific 2012 India Dealer Satisfaction with Automotive

Manufacturers Index Study‖

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Study on Partex Furniture Industries Ltd.‖ World Journal of Social Sciences

Vol. 2. No. 5.

106

APPENDIX

107

QUESTIONNAIRE

A study on dealer satisfaction of Crompton Greaves Premium decorative ceiling fans in

Ernakulam District

Name :

Address :

1. How long you are dealing with the Premium range of Crompton Greaves products?

1-3 years 4-7 years 8-10 years above 10 years

2. Are you dealing with Premium range decorative fans of other companies?

Yes No

If Yes, specify BRANDS__________________________________

3. Which factor enables you to be the dealer of Crompton Premium decorative ceiling

products?

Promotion Schemes Company Policy Margin Brand Name

Availability timeliness of delivery Product quality Price Credit

period

4. How do you feel about the brand Crompton Greaves?

Very Good Good Average Poor Very Poor

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5. How do you feel about Quality of Premium decorative ceiling fans of Crompton?

Very Good Good Average Poor Very Poor

6.Do you have any advertisements for boosting the volume of sale of the Premium range

fans?

Yes No

7.Mention the Pattern of the advertisements?

Independently by the shop In collaboration with the company

Solely by the company

8. How do you rate the Profit margin from Crompton greaves premium decorative

ceiling fans against other brand’s .

Very Good Good Average Poor Very Poor

9. What do you feel about credit period given by Crompton for the Premium Decorative

ceiling fans?

Very Good Good Average Poor Very Poor

10. How do you rate the Promotional Activities given by Crompton?

Very Good Good Average Poor Very Poor

11. What type of promotional activity do you prefer with Crompton products?

Discount Gift Prize Offers Others

(Specify)……………..

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12. How do you feel about the timely Delivery of the Premium decorative ceiling fans of

Crompton?

Highly Satisfied Satisfied Average Dissatisfied

Highly Dissatisfied

13. What do you feel about the employees dealing with you in Crompton?

Highly Satisfied Satisfied Average Dissatisfied

Highly Dissatisfied

14. What are the factors that you expect from Crompton for boosting the Premium

Decorative ceilingfans ?

Promotional Sales follow-up Scheme Service

Credit Facility

Others____________________________

15. What do you feel about after sales service given by Crompton?

Highly Satisfied Satisfied Average Dissatisfied

Highly Dissatisfied

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16.How is the availability of premium decorative ceiling fans during seasons?

Very Good Good Average Poor Very Poor

17.What is your opinion regarding the dealership network of Crompton?

Highly Satisfied Satisfied Average Dissatisfied

Highly Dissatisfied