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Project Summer Training

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    CHAPTER - I

    INTRODUCTION

    1.1 Research Background:

    The worldwide electric power industry provides a vital service essential tomodern life. It provides the nation with the most prevalent energy form known in historyelectricity.

    This project consists of a detailed study which was undertaken at Havells

    India Ltd on the companys overall functioning. The project explains the principles andpractices of the organization.

    Havells is an electrical and power distribution equipment manufacturer inIndia. It owns some of the prestigious global brands. The main aim of Havells is toprovide best electrical & lighting solutions and to be a globally recognized firm. Toachieve this it concentrates more on building long term relationships with all our associates, customers, partners, and employees.

    The organization functions with various departments such as Marketing,Finance, Personnel and Production. It maintains a cross-department interaction for achieving the organizations effectiveness. The departments are driven by qualified andexperienced professionals backed by an efficient work force. It encourages employeesto be participative, innovative and creative and thus building a team spirit which helpsthem to realize collective potential. The products of the company have a goodreputation in the market and hence the growth of the company is very much imminent.

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    1.1.1 INDUSTRY PROFILE:

    Prospects of the Indian Electric Industry:

    Like every other industrial sector in India, the Indian Electrical Industry toois slowly emerging from out of its "protective cover". For far too long has Indian Industryremained shackled and consequently inward looking. Over the past fifty years there wasno exposure to global players and competition, with the result that the Industry grew upin a sheltered environment, dependent on the Government for everything, from licensesto protection to tariffs. Each one of these interventions was aimed at securing protectionfor oneself and ensuring growth of ones own organization at the cost of industry andthe nation at large. Lack of global competition encouraged a "cost plus" approach,

    where every conceivable cost increase was passed on to the customer. There was thusno motivation to reduce costs.

    As per the recent survey, the global electrical & electronics market is worth

    $1,038.8 billion, which is forecasted to grow to $ 1,216.8 billion at the end of the year 2008. If we talk of electrical & electronics production statistics, the industry accountedfor $1,025.8 billion in 2006, which is forcasted to reach $1,051.5 billion in future.

    At the outset, it must be stated that the reduced domestic demand is at best atemporary phenomenon. The power sector in India is bound to grow and this willundoubtedly boost demand from the Utilities, quite apart from the industrial demandwhich will continue to grow with increased industrial output. The poor financial health of the SEBs is however a damper that cannot be wished away in the short term. This willcontinue to plague corporate in the Electrical Industry, until the SEB restructuring andunbundling brings a turnaround in the medium term.

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    1.1.2 COMPANY PROFILE :

    Havells India Ltd is a billion-dollar-plus organization, and is one of thelargest & India's fastest growing electrical and power distribution equipmentmanufacturer with products ranging from Industrial & Domestic Circuit ProtectionSwitchgear, Cables & Wires, Motors, Fans, Power Capacitors, CFL Lamps, Luminariesfor Domestic, Commercial & Industrial applications, Modular Switches & Bath fittingscovering the entire gamut of household, commercial and industrial electrical needs.

    Havells owns some of the prestigious global brands like Crabtree, Sylvania,Concord, Luminance, Linolite & SLI Lighting.

    With 91 branches / representative offices and over 8000 professionals in over 50countries across the globe, the group has achieved rapid success in the past few years.Its 7 state-of-the-art manufacturing plants in India located at Haridwar, Baddi, Noida,Faridabad, Bhiwadi, Alwar, Neemrana, and 9 state-of-the-art manufacturing plantslocated across Europe, Latin America & Africa churn out globally acclaimed products.Havells is a name synonymous with excellence and expertise in the electrical industry.Its 20000 strong global distribution network is prompt to service customers.

    The company has acquired a number of International certifications, like BASEC, CSA,KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore), TSE(Turkey), SNI (Indonesia) and EDD (Bahrain) for various products.

    Today, Havells and its brands have emerged as the preferred choice of electricalproducts for discerning individuals and industrial consumers both in India and abroad.

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    http://4.bp.blogspot.com/_1pKvii0Z9Cs/SgvsojqURvI/AAAAAAAACCM/rGeR8I_Bg4A/s1600-h/Havellslogo.jpg
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    In an attempt to transform itself from an industrial product company to a consumer products company, Havells launched the consumer electrical products such as CFLs,Fans, and Modular Switches & Luminaries.

    The essence of Havells success lies in the expertise of its fine team of professionals,strong relationships with associates and the ability to adapt quickly and efficiently, withthe vision to always think ahead.

    Vision:"To be a globally recognized corporation that provides best electrical & lighting

    solutions, delivered by best-in-class people."

    Mission:To achieve their vision through fairness, business ethics, global reach,

    technological expertise, building long term relationships with all our associates,customers, partners, and employees.

    VALUES:

    Customer Delight:

    A commitment to surpassing our customer expectations. Leadership byexample. A commitment to set standards in their business and transactionsbased on mutual trust.

    Integrity and Transparency:

    A commitment to be ethical, sincere and open in their dealings.

    Pursuit of Excellence:

    A commitment to strive relentlessly, to constantly improve themselves, their teams, their services and products so as to become the best in class.

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    MILESTONES:

    2009 Set up of fully automatic switchgear manufacturing plant at

    Baddi. Consolidation of CFL manufacturing plant atNeemrana for domestic and export purposes.

    2008 : First Indian CFL manufacturers to have adopted RoHS,European norms on Restriction of Hazardous Substancesin CFLs.

    Set up of Global Corporate office, QRG Towers atExpressway Noida

    Investment of Rs.50 Crores in Global Center for Researchand Innovation (CRI)

    2007 : Set-up of Capacitor manufacturing plant in Noida, UP withthe capacity of 6, 00,000 kVAr per month.

    Acquired the Lighting business of a Frankfurt basedcompany "Sylvania", a global leader in lighting businessand now the company's turnover crosses US$ 1 Billion.

    Warburg Pincus, a global private equity firm and one of thelargest investors in India, invested US $110 million inHavells India Ltd. Havells issued fresh shares to WarburgPincus, representing approximately 11.2% of the fullydiluted share capital of the company.

    QRG Group entered healthcare business by acquiring amajority stake in Central Hospital and Research Centre,Faridabad.

    2006 : Crabtree India merged with Havells India. Added CFL production unit in Haridwar manufacturing

    plant.

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    Expansion at Alwar manufacturing plant for increase of production capacity.

    Expansion at Baddi manufacturing plant and set-up of an

    Export Oriented Unit. First Company to get the ISI Certification for complete

    range of CFLs. Started mid-day meal program at Alwar, Rajasthan caters

    to 10,000 students from 77 schools.

    2005 : Set up manufacturing plant in Haridwar, Uttaranchal for manufacturing Fans.

    Awarded the KEMA certification by The Dutch Council for Accreditation, making QRG the only group to attain thiscertification.

    Set up of R&D Center in Noida H.O.

    2004 : Set up manufacturing plant at Baddi , HP for manufacturingof Domestic Switchgear.

    Set up a manufacturing plant for manufacturing of CFL atexisting manufacturing plant in Faridabad, Haryan.

    Set up a manufacturing plant for manufacturing of CeilingFans at Noida, UP.

    Set-up our own marketing office in London through our wholly owned subsidiary company Havells U.K. Ltd.

    In December, 2004 placed 235 fully convertible debentures

    of Rs. 10 Lacs on M/s. Shine Ltd., Mauritius and thedebenture will be converted in June, 2006.

    Attained the CE certificate for CFL.

    2002 : Standard Electrical Company becomes a 100% Subsidiary

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    of the company. Attained the IEC certification for Industrial switchgear and

    CSA certification for all manufacturing plants.

    2001 : Acquired business of Havells Industries Ltd, MCCB of Crabtree India Limited and merged ECS Limited in thecompany to consolidate its area of core competence.

    2000 : Acquired controlling stake in Duke Arnics Electronics (P)Limited engaged in manufacturing of Electronic Meters-Single Phase, Three Phase, Multi Function, Tri Vectors.

    Acquired controlling interest in an industry major-StandardElectricals Ltd.

    1998 : Introduced high-end Ferraris Meters in Joint Venture with DZG,Germany.

    1997 : Acquired Electric Control & Switchboards at NOIDA, UP for manufacturing customized packaged solutions.

    1996 : Acquired a manufacturing plant at Alwar, Rajasthan for Power Cables & Wires.

    Entered into a Joint Venture with Electrium, UK for manufacturing Dorman Smith MCCBs and CrabtreeModular Plate Switches.

    1996 : Acquired a manufacturing plant at Alwar, Rajasthan for Power Cables & Wires.Entered into a Joint Venture with Electrium, UK for manufacturingDorman Smith MCCBs and Crabtree Modular Plate Switches.

    1993 : Set up another manufacturing plant at Faridabad, Haryana for Control Gear Products.

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    1990 : Set up a manufacturing plant at Sahibabad, UP for Changeover Switches

    1987 : Started manufacturing MCBs at Badli, Delhi in Joint Venture withGeyer, Germany.

    1.1.3 PRODUCT PROFILE:

    Havells India Ltd has emerged as preferred choice for discerningrange of individual and industrial consumers. The firms products are approved byinternational quality bodies such as KEMA, UL,CE,CSA and VDE and are as per IEC

    standards.

    The firms commitment is to manufacture excellence and providingworld-class quality products at affordable prices in creating the industry more energyefficient, now from even wider spectrum of products from Havells; it offers a completesolution which is not only safe and reliable but also helps to save energy.

    At Havells, it is their philosophy to continuously upgrade products

    in order to best serve modern discerning consumers. They feel proud and privileged toshare such innovation of making Havells more environment friendly, Havells aims atproviding versatile range of products and set a new benchmark for quality andperformance.

    PRODUCTS:

    1) BUILDING CIRCUIT PROTECTION2) INDUSTRIAL CIRCUIT PROTECTION3) MOTORS4) CAPACITORS5) LIGHTING

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    6) CFL7) FANS8) MODULAR PLATE SWITCHES9) CABLES AND WIRES10)DIGITAL DIMMING11)BATHFITTINGS AND ACCESSORIES

    1.2 IDENTIFIED PROBLEM

    The organization does not have more customer care center and the customersare not well aware of the existing customer care centers.

    The decrease in the promotional activities is not satisfied by the customers.

    The organization does not focus on a advertisement and sales promotionactivities.

    The organization is not good at checking the product before delivery.

    1.3 NEED OF THE STUDY

    This study does not answer all the problems which arise in the Havells. There aremany certain formulas for analyzing particular problems, but the aim of the study is

    to develop ability of decision making & strategic formulation. A right decision at theright time itself helps the organization to run efficiently.

    It is here that this project becomes important as it aims to understand all the aspectsof corporate selling, the detail study of all the competitive brands of HavellsProducts.

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    The observational study made during the training would help the marketing divisionof Havells to devise effective market strategy for the given area that would ultimatelyhelp to strengthen their position in the market, would enhance brand preferenceamongst the consumers.

    1.4 OBJECTIVES AND SCOPE

    1.4.1 Objectives for the study:

    Primary Objective:-

    To find out the peoples perception in purchasing the products of Havells India.

    Secondary Objective:-

    To know the personal views of people regarding choices among various Electronicproducts of Havells.

    To study which branded electronic products are mostly preferred by people as per their choices.

    Comparison between various Electronic products of Havells.

    Find out factor influencing the people at the time of purchasing Electronic products -QUALITY, DURABILITY, VARIETY, and PRICE.

    1.4.2 Scope of the study

    This study would be useful for companies to know what people perceive andthinking about Electronic products offered by Havells .The study would be

    useful to other researchers as a secondary data. This study would be useful toform strategies & to make further decisions according to perception of peopleabout electronic products in Havells.

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    1.5 Deliverables:

    The questionnaire is set in order to conduct the primary research todetermine the choices and the preferences of the customers.

    The study also helps to analyze the brand preference and the customer views of Havells India Limited.

    The primary research is undertaken to determine the prominent factorsthat attracts the customers towards the company for recurring purchase.

    CHAPTER-2

    LITERATURE SURVEY

    2.1 REVIEW OF LITERATURE

    2.1.1 Book Review

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    The concept of brand image has been very significant to consumer behavior from post 1950s. As Aaker and Keller confirmed in Hsiehs study that, brand imagehas been considered a vital part of a firms marketing program, not only because itserves as a foundation for tactical marketing mix issues but also because it plays anintegral role in building long term brand-equity (1990).

    Definition:

    Earlier definitions of brand image are presented in broad terms by Dobni(1990) who put forward the following writers understanding of brand image. Newmanstated it as everything the people associate with the brand (1957). Reynolds (1965)confirms that an image was centered on drawing a few key beliefs from a vast variety of

    sources, thus creating your own impression based on the brand. Herzogs concurs thatbrand image was the sum of the total impressions. (1973). Indeed, such definitions allconcur together; echoed by the words of Levy who stated that a brand image is aconstellation of pictures and ideas in peoples minds that sum up their knowledge of thebrand and their main attitudes towards it (1978). A more recent insight into brandimage was added by Woodside who defined image as the degree of positive or negative affect associated with psychological object (Reid, 2001).

    Theory behind brand image:

    According to Tyler (1957), there are three approaches to brand image:Subjective, Objective and Literal.

    The first type, is a subjective image, this is when a potential customer hears or sees thebrand name/logo and feel obliged to purchase the product or service, despite a lack of understanding as to why this is the case. The case simply relates to how the brand is

    perceived as significant to an individuals self-consciousness.The second type of brand image is the objective form which is the attempt to generatean emotional need for the product, leaving you with the feeling that you need topurchase the product so as to satisfy this need.

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    The third is literal image, i.e. a logo which represents a company. Thisimplies that upon seeing this picture/logo, the name of the company does not need tobe uttered as the picture tells the consumer the whole story e.g. Nike with the tick or McDonalds with the golden arches. Evidently, the approach used to obtain and sustaina brand image will vary upon several factors as reflected by the analysis presented byTyler.

    Oxenfeldt and Swanns idea was that the brand image should allow thecompany to establish its position within its market segment, protecting it fromcompetition, thus allowing them to build upon this with market share growth (Park et al,1986).

    Moreover Park et al (1986) put forward in Bhats article that the importance of establishing a brand image relevant to its market segment in which it is based, issignificant so as to ascertain a strong brand position, help create a barrier to entry for potential competitors: thus raise the brands performance in the market.

    2.2 RESEARCH GAP

    There are areas which have been identified and do require further investigation.The main issues that the some studies had not specified about the requirementsof the customers regarding the product.However, some studies have suggested about various factors of purchasedecision but does not help in decision making & strategic formulation.The scope of this study was limited to certain characteristics of the customers butdoes not aim at what they perceive and think about Electronic products

    CHAPTER-3

    METHODOLOGIES

    3.1 TYPE OF PROJECT

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    3.1.1 Descriptive Research:

    Descriptive Research has been used; it involves surveys and fact findingsenquirer of different kinds the major purpose of descriptive research is the description of

    the state of affairs, as it exists at present. The main characteristics of this method arethat the researcher has no control over the variable; he can only report what hashappened or what is happening. The methods of research utilized in descriptiveresearch are survey methods of all kinds, including comparative methods.

    3.1.2 Research Instrument

    The research instrument used in this study structured questionnaire.Structured questionnaire are those questionnaire in which there are predeterminedquestions relating to the aspect for which the researcher collect data. The questions arepresented with exactly the same wording and in the same order to all the respondents.

    3.1.3 Questionnaire Design

    The structured questionnaire for Appraisal system with the following typesof questionnaire open ended, multiple choice and ranking scale.

    3.2 TARGET RESPONDENTS

    The results could be skewed because of a small sample size of 50 only.

    The target respondents were the customers owning Havells product and also nonusers of Havells Electronic product.

    3.3 ASSUMPTIONS, CONSTRAINS AND LIMITATIONS

    3.3.1 Assumption

    The results could be skewed because of a small sample size of 100 only.

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    People who purchase Havells product are assumed to be satisfied with their advertising and sales promotion activities.

    3.3.2 Constraints

    There may be bias in the collected information.Few respondents were reluctant while answering due to their busy schedule.

    The time limit was only 45 days.

    3.3.3 Limitation of the study

    Time and resource constraint.

    The respondents in many cases were unwilling to provide all the information.The same information cannot be accessed due to its confidential nature.

    3.4 PROPOSED SAMPLING METHODS

    Convenience sampling has been used in this study. Convenience sampling isused for selection of homogeneous sample for the study. It refers to selecting a sampleof study. It is non probability sampling. Thus research study may include studyobjects, which are conveniently located. Research findings based on convenientsampling however, cannot be generalized.

    3.5 DATA PROCESSING

    Data collection

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    Data refers to information or facts. It includes numerical figures, non numericalfigures, descriptive facts, and qualitative information. The task of data collection beginsafter a research problem has been defined and research plan has been detected. Thenature of data is both primary and secondary data.

    1. Primary data

    The primary data are those that are collected through questionnaire. Thequestionnaire was framed in such a manner to obtain correct information, gradedsuitable for the study.

    2. Secondary data

    The secondary data has been collected through oral communication. Secondarydata is about the company website.

    3.6 TOOLS FOR ANALYSIS

    Chi-square test

    Rank correlation

    One sample run test

    3.6.1 Chi Square Test

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    The chi square test, written as -test, is a useful measure of comparingexperimentally obtained results with those expected theoretically and based on thehypothesis. It is used as a test statistics in testing a hypothesis that provides a set of theoretical frequencies with which observed frequencies are compared. In general chi square test is applied to those problems in which we study whether the frequency withwhich a given event has occurred , is significantly different from the one expectedtheoretically.

    The measure of chi square enables us to find out the degree of discrepancybetween observed frequencies and theoretical frequencies and thus to determinewhether the discrepancy so obtained between observed frequencies and theoreticalfrequencies is due to the error of sampling or due to chance.

    The chi square is computed on the basis of frequencies in a sample and thusthe value of chi square so obtained is statistics. Chi square is not a parameter as itsvalue is not derived from the observation in a population. Hence chi square test is anon parametric test.

    Chi square test is not concerned with any population distribution and its observation.

    The test was first used in testing statistical hypothesis by Karl Pearson in theyear 1900.it is defined as

    () = (Oi-Ei) /Ei

    Where Oi = observed frequency of i th event.

    Ei = Expected frequency of i th event.

    We require the following steps to calculate

    Step 1: calculate all the expected frequencies,

    Step 2: take the difference between each observed frequency and the correspondingexpected frequency.

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    Step 3: square the difference for each value of i.

    Step 4: divide each square difference by the corresponding expected frequency

    Step 5: add all the quotients obtained in step 4, then

    () = (Oi-Ei) /Ei is the required value of chi square.

    It should be noted that

    The value of is always positive as each pair is squared one.

    will be zero if each pair is zero and it may assume any value extending toinfinity. When the difference between the observed frequency and the expected

    frequency in each pair is unequal. Thus lies between 0 and 8.

    The significance test on is always based on the one tailed test of the righthand side of standard normal curve as is always non negative.

    As is a statistic and not a parameter, so it does not involve any assumptionabout the form of original distribution from which the observation have come.

    Degrees Of Freedom

    The number of data that are given in the form of a series of variables in a row or column or the no of frequencies that are put in cells in a contingency table, which canbe calculated independently is called degrees of freedom and is denoted by v.

    Case 1: if the data is given in the form of a series of variable in a row or column,then the degrees of freedom = (number of items in the series)-1, that is , v= n-1,where nis the number in the series in a row or column.

    Case 2 : when the number of frequencies are put in cells in a contingency table ,the degrees of freedom will be the product of (number of rows less than one) and the(number of column less than one).that is ,v =(r-1) (c-1), where R is the number of rowsand c is the no of columns.

    Condition for applying chi square test

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    1. Each of the observation making up the samples for this test should beindependent of each other.

    2. The expected frequency of any item or cell should not be less than 5. If it is less

    than 5 , then frequencies taking from the adjacent items or cells are pooledtogether in order to make it 5 or more than

    3. The total no of observation used in this test must be large that is n=30.

    4. This test is used only for drawing inferences by testing hypothesis. It cannot beused for estimation of parameter or any other value.

    5. It is wholly dependent on the degrees of freedom.

    6. The frequencies used in test should be absolute and not relative in terms.

    7. The observation collected for test should be on random basis of sampling test.

    The chi square test is widely used to test the independents of attributes. It is appliedto test the association between the attributes when the sample data is presented in theform of a contingency table with any number of rows and columns.

    3.6.2 Spearmans Rank Correlation coefficient

    The coefficient of rank correlation is based on the various values of the variantsand it is denoted by R. It is applied in the problems in which data cannot be measuredquantitatively assessment is possible such as awareness satisfaction etc.

    The rank correlation is given by the formula:

    R= 1 - 6D2

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    N(n2-1)

    D2= The squares of difference of corresponding ranks

    N= The number of pairs of observation

    Steps involved in Rank correlation:

    1. Calculate the difference of R1 from R2 and write it under the colouring heatedby D.

    2. Square the difference D and write it under the column D2

    3. Apply the formula

    R= 1 - 6D2

    N(n2-1)

    3.6.3 The one sample run test

    It is a non parametric method to randomness with which the sample items havebeen selected. The run test, based on the order in which the sample observations areobtained, is a useful technique for testing the null hypothesis H0 that the observationhas indeed been drawn at random. The runs test can also be used to detect departuresin randomness of a sequence of quantitative measures over time, caused by trends or periodicities.

    RUN: A run is subsequence of one or more identical symbols representing a

    common property of the data. In other words, a run is defined as a set identical (or related) symbols contained between different symbols (such as at beginning or end of the sequence).

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    CHAPTER - 4

    DATA ANALYSIS AND INTERPRETATION

    4.1 Proposed analysis and interpretation methodologies:

    The data after collection has to be processed and analyzed in accordance with

    the outline laid down for the purpose at the time of developing the research plan. This is

    essential for a scientific study and for ensuring that we have all relevant data.

    Processing implies editing, coding, classification and tabulation of collected data so that

    they acquiescent analysis.

    The term analysis refers to the computation of certain measures along with

    searching for patterns of relationship that exist among data groups. Thus, In the

    process of analysis, relationship or difference supporting or conflicting with original or

    new hypothesis should be subjected to statistical test of significance to determine with

    that validity data can be said to indicate any conclusions.

    Analysis of data in general way involves a number of closely related operations

    that performed with the purpose of summarizing the collected data and organizing them

    in such manner that the answers the research question.

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    4.2 Calculations:

    TEST NO 1

    - CHI SQUARE

    Aim:

    To test the relationship between gender and service regards Quality of HavellsProducts.

    Null hypothesis H 0:

    There is no significant relationship between gender and Service of Havells Products

    Alternative hypothesis H 1:

    There is a significant relationship between gender and Service of Havells Products

    Observed frequency:

    22

    Good BAD Total

    Male 23 12 35

    Female 10 5 15

    Total 33 17 50

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    Expected frequency:

    Calculation of value:

    O E (O-E) (O-E)^2 (O-E)^2/E

    12 11.9 .1 0.01 8.40336

    23

    GOOD BAD Total

    Male ((35*33)/50)) = 23.1((17)(35)) /50

    = 11.935

    Female((33)(15)) / 50

    =9.9

    ((17)(15)) / 50

    =5.115

    Total 33 17 50

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    23 23.1 -.1 0.01 4.3290

    5 5.1 -.1 0.01 0.0019

    10 9.9 .1 0.01 0.0010

    Total 12.73526

    The calculated value of = 12.73526

    Therefore degree of freedom = (r-1) (s-1)

    = (2-1) (2-1)= 12.71

    Result:

    Since, Calculated = 12.73526 < Tabulated value = 12.71.

    Hence the Null hypothesis H0 is Rejected.

    Decision:

    There is significant relationship between gender and service regards Quality of Havells Products.

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    TEST NO - 2

    Spearmans Rank Correlation coefficient

    Ranking the Factors That Influence the Buying Decision

    Factor Rank I Rank II Rank III Rank IV Rank v total

    quality 2 1 3 - - 6

    schemes - 1 1 2 1 5

    Availability - 2 1 - - 3

    Price 4 2 3 1 - 10

    advertisement - - - - 1 1

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    Calculation of table values

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    Factor Rank I Rank II Rank III Rank IV Rank v

    quality

    Rank

    2

    2

    1

    3

    3

    1

    -

    4.5

    -

    4.5

    Schemes

    Rank

    -

    5

    1

    2

    1

    2

    2

    1

    1

    2

    Availability

    Rank

    -

    4

    2

    1

    1

    2

    -

    4

    -

    4

    price

    Rank

    4

    1

    3

    3

    2

    2

    1

    4

    -

    5Advertisement

    Rank

    -

    3.5

    -

    3.5

    -

    3.5

    -

    3.5

    1

    1

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    RANK CORRELATION TEST

    Aim:

    To test the relationship between the quality and price factor that influence the buyer.

    Null hypothesis H 0:

    There is no relationship between quality and price factor that influence the buyer.

    Alternative hypothesis H 1:

    There is relationship between quality and price factor that influence the buyer.

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    R1 R2 D=R1-R2 D^2

    2 1 1 1

    3 3 0 0

    1 2 -1 1

    4.5 4 0.5 0.25

    4.5 5 -0.5 0.25

    D^2 =2.5

    r = 1- 6D2 / n (n2 1)

    r = 1 (6( 2.5) /5(52 1))

    r = 1 - (15/120)

    r = 1- 0.125

    r = 0.875

    Correlation Co- efficient lies between -1 to +1

    Result:

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    Quality and price factors are positively correlated. The calculated correlationcoefficient 0.875 is greater than the tabulated value of rank correlation co efficient for n=6 and 5 % level of significance is 0.8626, Hence the null hypothesis Ho is rejected.

    Decision:

    There is a significant relationship between the quality and the price factor thatinfluence the buyer.

    TEST NO - 3

    ONE SAMPLE RUN TEST

    Aim:

    To Test the satisfaction of customers towards the service obtained from products other than Havells.

    Null hypothesis H 0:

    The customers did not satisfy with the service obtained from other products.

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    Alternative hypothesis H 1 :

    The customers are satisfied with the service obtained from other products.

    Run:

    YYYYY | NNN | YYYY | NNN | YYYYYYY | NN | YYYYYY | NNNN | YYYYY | NNYYY | NN | YY |

    r=13 n1 = 32 n2 = 18

    Formula :

    1. r = ((2n1n2)/(n1+n2)) + 1

    2. r = ((2n1n2)(2n1n2-n1-n2))/((n1+n2)^2(n1+n2-1))

    3. | Z | = r - r/ r

    Statistics:

    1. r = ((2(32)(18))/50) + 1

    = 24.04

    2. r = ((2(32)(18)(2(32)(18)-32-18))/((32+18)^2(32+18-1))

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    = 3.219

    3. | Z | = | r - r/ r |

    = | (13-24.04)/3.219|

    = 3.43

    | Z | Calculated = 3.43

    |Z | Table = 1.96

    Result:

    Calculated value |Z| cal = 3.43 is greater than the table value 1.96.

    Hence the Null hypothesis H0 is rejected.

    Decision:

    The customers are satisfied with the service obtained from other products.

    4.3 Diagrammatic Representation:

    TABLE NO.4.3.1

    CLASSIFICATION ACCORDING TO GENDER

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    Gender No. of Respondents Percentage

    Male 40 80%

    Female 10 20%

    Total 50 100%

    CHART NO.4.3.1

    INFERENCE:

    80% of respondents are male persons,20% of respondents are female persons.

    TABLE NO.4.3.2

    CLASSIFICATION BY PRODUCTS OWNED

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    Do you have any of the Havells products?

    SR.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

    1 Yes 25 50%

    2 No 25 50%

    3 Total 50 100%

    CHART NO.4.3.2

    INFERENCE:

    The above table indicates that, 25% people have Havells products & 25% peopledo not have.

    TABLE NO.4.3.3

    CLASSIFICATION BY PRODUCT TYPES

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    (A). If Yes which product do you have?

    SR.NO. PARTICULARSNO. OF

    RESPONDENTSPERCENTAGE

    1 CAPACITORS 4 16%

    2

    BATHFITTINGS ANDACCESSORIES

    2

    8%

    3CABLES AND WIRES

    4 16%

    4 FANS 4 16%

    5 MOTORS 1 4%

    6 LIGHTING 6 24%

    7 CFL 2 8%

    8DIGITAL DIMMING

    2 8%

    9 Total 25 100%

    CHART NO.4.3.3

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    INFERENCE:

    The above table indicates that, 24% people have lighting, 16% people have cables andwires, 8% have bathfittings and accessories, 16% have capacitors, 8% digital dimming,8% have cfl, 16% have fans & 4% have motors.

    TABLE NO.4.3.4

    CLASSIFICATION BY PURCHASE PERIOD

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    When did you purchase your Havells product?

    SR.NO. PARTICULARSNO. OF

    RESPONDENTS

    PERCENTAGE

    1 Less than 6 months 10 40%

    2 6 months to 1 year 8 32%

    3 1 -2 years 4 16%

    4 2 5 years 2 8%

    5 More than 5 years 1 4%

    9 Total 25 100%

    CHART NO.4.3.4

    INFERENCE:

    The above table indicates that, 16% people plans for purchasing Havellsproducts in 1-2 yr, 4% plan more than 5 yr, 40% plan in less than 6 months, 32% plan in6 month to 1 yr.

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    TABLE NO.4.3.5

    CLASSIFICATION BY USAGE PURPOSE

    What is main purpose of using Havells product?

    SR.NO. PARTICULARSNO. OF

    RESPONDENTSPERCENTAGE

    1 Personal 13 52%

    2 Official 10 40%

    3 Both 2 8%

    4 Total 25 100%

    CHART NO.4.3.5

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    INFERENCE:

    The above table indicates that, 52% purchasing Electronic for person use, 8%purchase for both purpose, 40 % purchase for official use.

    TABLE NO.4.3.6

    SATISFACTION LEVEL OF HAVELLS PRODUCTS

    Your satisfaction level towards your Havells product?

    SR.NO. PARTICULARSNO. OF

    RESPONDENTSPERCENTAGE

    1Stronglysatisfied

    936%

    2 Satisfied 13 52%

    3 Dissatisfied 2 8%

    4Stronglydissatisfied

    1 4%

    5 partially satisfied 0 0%

    Total 25 100%

    CHART NO.4.3.6

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    INFERENCE:

    The above table indicates that, 52% people satisfied with their electronic

    products, 36% strongly satisfied with their electronic products, 8% people dissatisfiedwith their electronic products, 4% people strongly dissatisfied with their electronicproducts.

    TABLE NO.4.3.7

    CUSTOMERS PREFERENCE IN HAVELLS PRODUCTS

    Which types of features prefer most by you in Havells product?

    SR.NO. PARTICULARSNO. OF

    RESPONDENTSPERCENTAGE

    1 Product functionality 9 36%

    2 Product design 8 32%

    3 Packaging 5 20%

    4 Product Size 2 8%

    5 Service Repair ,Warranty & etc

    1 4%

    Total 25 100%

    CHART NO.4.3.7

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    INFERENCE:

    The above table indicates that, 32% people gives preference toProduct design, 36% for Product functionality, 8% for Product Size, 20% givepreference Packaging, 4% gives Service Repair ,Warranty & etc.

    TABLE NO.4.3.8

    FACTORS INFLUENCE BUYING DECISION

    What are the factors which influence your buying decision?

    SR.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

    1 Price 9 36%

    2 Availability 7 28%

    3 Schemes 4 16%

    4 Quality 3 12%

    5 Advertisement 2 8%

    Total 25 100%

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    CHART NO.4.3. 8

    INFERENCE:

    The above table indicates that, 28% people influencing through availability of product, 36% influencing through price, 16% through schemes, 12% through Quality of Havells products & 8% through advertisement.

    TABLE NO.4.3.9

    CUSTOMERS FROM OTHER BRANDS

    Did you switched over from any other brand to this brand?

    SR.NO. PARTICULARSNO. OF

    RESPONDENTS PERCENTAGE

    1 Yes 5 20%

    2 No 20 80%

    Total 25 100%

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    CHART NO.4.3.9

    INFERENCE:

    The above table indicates that, 20% people had been switched over .

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    Person does not have Havells product .

    TABLE NO.4.3.10

    CLASSIFICATION BY CUSTOMERS PURCHASE PLAN

    When would you purchase the Havells Electronic Products?

    SR.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

    1 Less than 6 months 11 44%

    2 6 months to 1 year 10 40%

    3 1 -2 years 3 12%

    4 2 5 years 1 4%

    5 More than 5 years 0 0%

    Total 25 100%

    CHART NO.4.3.10

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    INFERENCE:

    The above table indicates that, 44% people purchase Havells in less than 6 months,40% in 6 month to 1 yr., 12% in 1-2 yr. & 4% people plans for purchasing their electronic product in 2-5 yr.

    TABLE NO.4.3.11

    CLASSIFICATION BY PRICE RANGE

    What price range will you be prepared to pay for such a Product?

    SR.NO. PARTICULARSNO. OF

    RESPONDENTSPERCENTAGE

    1 Rs. 2500 3000 12 48%

    2 Rs. 3500 4000 6 24%

    3 Rs. 4500 5000 2 8%

    4 Rs. 3000 3500 3 12%

    5 Rs. 4000 4500 2 8%

    6 Above 5000 0 0%

    7 Total 25 100%

    CHART NO.4.3.11

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    INFERENCE:

    The above table indicates that, 12% choose the range of 3000-3500, 48% for 2500-3000, and 8% choose for 4500-5000 & 8% choose for 4000-4500.

    TABLE NO.4.3.12

    CUSTOMERS RANK FOR HAVELLS PRODUCTS

    Rank the Product according to your preference?

    SR.NO. PARTICULARSNO. OF

    RESPONDENTSRANK PERCENTAGE

    1LIGHTING 7 1

    27%

    2

    BATHFITTINGS AND

    ACCESSORIES

    1 5

    4%

    3CFL

    4 3 15%

    4 FANS 7 2 27%

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    5CABLES AND WIRES

    2 8 8%

    6DIGITAL DIMMING

    3 4 12%

    7MOTORS

    1 7 4%

    8CAPACITORS

    1 6 4%

    9 Total 26 100%

    CHART NO.4.3.12

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    INFERENCE:

    The above table indicates that, 27% choose lighting, 4% choose bathfittings andaccessories, 27% choose fans, 4% for motors, 4& for capacitors, 12% for digitaldimming, 8% for cables and wires.

    TABLE NO.4.3.13

    MAIN PURPOSE OF PRODUCT USAGE

    The main purpose of purchasing the Havells product?

    SR.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

    1 Personal 13 52%

    2 Official 9 36%

    3 Both 3 12%

    4 Total 25 100%

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    CHART NO.4.3.1 3

    INFERENCE:

    The above table indicates that, 52% people choose for personal use, 12% for both use& 36% for Official use.

    TABLE NO.4.3.14

    FACTORS INFLUENCE BUYING DECISION

    12. What are the factors which influence your buying decisions? (Rank 1-5)

    SR.NO. PARTICULARS NO. OF RESPONDENTS RANK PERCENTAGE

    1 Price 10 1 40%

    2 Availability 3 2 12%

    3 Schemes 5 4 20%

    4 Quality 6 3 24%

    5 Advertisement 1 5 4%

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    6 Total 25 100%

    CHART NO.4.3.14

    INFERENCE:

    The above table indicates that, 12% people influencing through availability of product,40% through price, 24% through quality, 20% through schemes & 4% throughadvertisement.

    TABLE NO.4.3.15

    CUSTOMERS PREFERENCE IN HAVELLS PRODUCTS

    What type of features you prefer most from Havells?

    SR.NO. PARTICULARSNO. OF

    RESPONDENTSPERCENTAGE

    1 Product functionality 8 32%

    2 Product design 11 44%

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    3 Packaging 2 8%

    4 Product Size 2 8%

    5Service Repair ,Warranty & etc

    2 8%

    6 Product functionality 25 100%

    CHART NO.4.3.15

    INFERENCE:

    The above table indicates that, 44% give preference to Product design, 32% toProduct functionality, and 8% for Packaging, 8% for Service, 8% for Product Size.

    14. Please tick one of the item for each of the product for your desire Havells products?

    TABLE NO.4.3.16 - PREFERENCES IN EACH PRODUCT

    (A).FAN

    SR.N

    OPARTICULARS

    NO.OF

    RESPONDENTSPERCENTAGE

    1 High Speed Fans 2 8%

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    2 Wall Mounting Fans 5 20%

    3 Ceiling Fans 9 36%

    4 Pedestal Fans 5 20%

    5 Ventilating Fans 4 16%

    6 Total 25 100%

    CHART NO.4.3.16

    INFERENCE:

    The above table indicates that, 36% give preference to Ceiling Fans, 20% for Pedestal Fans, 20% for Wall Mounting Fans, 16% for Ventilating Fans & 8% for HighSpeed Fans.

    TABLE NO.4.3.17

    (B).LIGHTING

    SR.NO. PARTICULARSNO. OFRESPONDENTS

    PERCENTAGE

    1 Specialty lamps 1 4%

    2 LED Lighting 2 8%

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    3 Consumer Lighting 12 48%

    4 Industrial Lighting 10 40%

    5 Total 25 100%

    CHART NO.4.3.17

    INFERENCE:

    The above table indicates that, 48% give preference to Consumer lighting, 40%for Industrial lighting, 8% for LED & 4% for Specialty lamps.

    TABLE NO.4.3.18

    (C). INDUSTRIAL CIRCUIT PROTECTION

    SR.NO. PARTICULARSNO. OFRESPONDENTS

    PERCENTAGE

    1 MCCB 3 12%

    2 Switch Disconnector 10 40%

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    3Fuse Switch and SwitchFuse

    5 20%

    4Load Changeover Switch

    728%

    5 Total 25 100%

    CHART NO.4.3.18

    INFERENCE:

    The above table indicates that, 40% gives preference to Switch Disconnector,28% for Load Changeover Switch, 20% for Fuse Switch and Switch Fuse &12% for MCCB.

    TABLE NO.4.3.19

    (D). Motors

    SR.NO. PARTICULARSNO. OF

    RESPONDENTSPERCENTAGE

    1Inverter Duty Motorswith Forced Cooling

    312%

    2 Foot Mounting 17 53%

    3 Brake Motors 5 20%

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    4 Flange Motor 15%

    5 Total 25 100%

    CHART NO.4.3.19

    INFERENCE:

    The above table indicates that, 53% gives preference to Foot Mounting, 20% for BrakeMotors, 15% for Flange Motor & 12% for Inverter Duty Motors with Forced Cooling.

    4.4 DELIVERABLES EXPECTED CONCLUSIONS

    4.4.1 CHI-SQUARE TEST

    Aim:

    To test the relationship between gender and service regards Quality of HavellsProducts.

    Null hypothesis H 0:

    There is no significant relationship between gender and Service of Havells Products

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    Alternative hypothesis H 1:

    There is a significant relationship between gender and Service of Havells Products.

    4.4.2 RANK CORRELATION TEST

    Aim:

    To test the relationship between the quality and price factor that influence the buyer.

    Null hypothesis H 0:

    There is no relationship between quality and price factor that influence the buyer.

    Alternative hypothesis H 1:

    There is relationship between quality and price factor that influence the buyer

    4.4.3 ONE SAMPLE RUN TEST

    Aim:

    To Test the satisfaction of customers towards the service obtained from products other than Havells.

    Null hypothesis H 0:

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    The customers did not satisfy with the service obtained from other products.

    Alternative hypothesis H 1 :

    The customers are satisfied with the service obtained from other products.

    CHAPTER V

    CONCLUSIONS

    5.1 SUMMARY OF FINDINGS

    5.1.1 STATISTICAL FINDINGS

    CHI-SQUARE TEST

    There is significant relationship between gender and service regardsQuality of Havells Products.

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    RANK CORRELATION TEST

    There is a significant relationship between the quality and the price factor thatinfluence the buyer.

    ONE SAMPLE RUN TEST

    The customers are satisfied with the service obtained from other products.

    5.1.2 GENERAL FINDINGS

    80% of respondents are male persons.

    25% people have Havells products.

    24% people have lighting.

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    16% people plans for purchasing Havells products in 1-2 yr.

    52% purchasing Electronic for person use.

    52% people satisfied with their electronic products.

    36% people give preference to Product functionality.

    36% people are influenced through price.

    20% of the people have switched from brand to brand.

    12% for people purchase Havells product for both personal and Official use.

    12% people influenced through availability of product

    36% of the people give preference to Ceiling Fans.

    48% of the people give preference to Consumer lighting.

    40% of the people give preference to Switch Disconnector.

    53% of the people give preference to Foot Mounting.

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    5.2 SUGGESTIONS AND RECOMMENDATIONS

    Havells India Company having large number of channel partners but

    it is not supporting & taking care all of them equally which results inincreasing discontentment among new channel partners because

    its not possible for company to support all of them equally.

    Company should take some positive action against it.

    Company executive should visit dealers on regular basis.

    They should pay proper attention towards checking of various

    components of products before end user delivery. Otherwise it tends

    towards defame of brand name in comparison to rivals.

    Need to expand customer care center.

    Proper attention should be paid for advertisement planning

    otherwise it may lead to problem for dealer as well as for company.

    Company should tie up with some event management company to

    organize various promotional activities like canopy, Carnival.

    Company should make policy for fixed end user price for all dealers

    so that fair game will be played & dealer would not to compromise

    on their margin.

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    5.3 CONCLUSION

    The study was done in order to find out the purchase decision of customers

    towards Havells products. After analyzing the data, it was found that the purchase

    decision of customers towards Havells products is better and not the best. Various

    suggestions are suggested to increase the purchase decision of customers and help to

    reach target.

    5.4 DIRECTION FOR FUTURE RESEARCH

    There are some aspects influencing customer purchase decisions likedependency on the Culture of the country. In-depth study of the demand for theproducts are left untouched in this study due to time Constraints which canfurther be explored.

    The factors such as higher expectation and satisfaction level of the brand canfurther researched. And the testing of availability of the products with the retailerscan be explored for the further research.

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    APPENDIX

    QUESTIONNAIRE

    I am C.Loganathan management student of Sri ram engineering collegeundergoing MBA project on purchase decision of customers with reference to Havellswould be grateful if you kindly spare your valuable time to fill up the questionnaire whichwould help me to complete my project successfully on time.

    Thanking you

    Personal Details

    a. Name :

    b. Age :

    c. Gender :

    d. Address :

    e. Phone No :f. Income :

    g. Occupation

    a. Businessman [ ] b. Govt.Employee [ ]

    c. Private [ ] d.Others Specify [ ]

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    1. Do you have any of the Havells products?

    (a). Yes(b). No

    (A). If Yes which product do you have?

    I. CAPACITORS

    II. BATHFITTINGS AND ACCESSORIES

    III. CABLES AND WIRES

    IV. FANS

    V. MOTORS

    VI. LIGHTING

    VII. CFL

    VIII. DIGITAL DIMMING

    2. When did you purchase your Havells product?

    I. Less than 6 months

    II. months to 1 year

    III. 1 -2 years

    IV. 2 5 years

    V. More than 5 years

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    3. What is main purpose of using Havells product?

    I. Personal

    II. Official

    III. Both

    4. Your satisfaction level towards your Havells product?

    I. Strongly satisfied

    II. Satisfied

    III. Dissatisfied

    IV. Strongly dissatisfied

    V. partially satisfied

    5. Which types of features prefer most by you in Havells product?

    I. Product functionality

    II. Product design

    III. Packaging

    IV. Product Size

    V. Service Repair ,Warranty & etc

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    6. What are the factors which influence your buying decision?

    Price

    Availability

    SchemesQuality

    Advertisement

    7. Did you switched over from any other brand to this brand?

    YesNo

    8. When would you purchase a Havells Electronic Products?

    Less than 6 months

    6 months to 1 year

    1 -2 years

    2 5 years

    More than 5 years

    9. What price range will you be prepared to pay for such a Product?

    Rs. 2500 3000

    Rs. 3500 4000

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    Rs. 4500 5000

    Rs. 3000 3500

    Rs. 4000 4500

    Above 5000

    10. Rank the Product according to your preference?

    I. CAPACITORS

    II. BATHFITTINGS AND ACCESSORIES

    III. CABLES AND WIRES

    IV. FANS

    V. MOTORS

    VI. LIGHTING

    VII. CFL

    VIII. DIGITAL DIMMING

    11. The main purpose of purchasing the Havells product?

    Personal

    Official

    Both

    12. What are the factors which influence your buying decisions?

    Price

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    Availability

    Schemes

    Quality

    Advertisement

    13. Which types of features prefer most from Havells?

    Product functionality

    Product design

    Packaging

    Product Size

    Service Repair ,Warranty & etc

    Product functionality

    14. Please tick one of the item for each of the product for your desire Havells products?

    A.FAN

    High Speed Fans

    Wall Mounting Fans

    Ceiling Fans

    Pedestal Fans

    Ventilating Fans

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    B. LIGHTING

    Specialty lamps

    LED Lighting

    Consumer Lighting

    Industrial Lighting

    C. INDUSTRIAL CIRCUIT PROTECTION

    MCCB

    Switch Disconnector

    Fuse Switch and Switch Fuse

    Load Changeover Switch

    D. Motors

    Inverter Duty Motors with Forced Cooling

    Foot Mounting

    Brake Motors

    Flange Motor

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    BIBLIOGRAPHY

    The lists of reference for the purpose of completing this marketing project are as givenbelow:

    Reference Books

    Saunders,.M., Lewis. P., and Thornhill.A. (2003), Research Methods

    for Business Students, 3rd Edition, Financial Times Prentice

    Boyd and Stasch (2001), Marketing Research, 3rd Edition, Financial TimesPrentice.

    :G. C. Beri (1999), Marketing Research, 4th Edition, Himalaya Publication House.

    Kothari C. R. (2005) RESEARCH METHODOLOGY New Age InternationalLimited, Fifth Edition

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    Saxena Rajan, Marketing Management: Tata Mcgraw, New Delhi, 2006

    Websites

    http://www.havells.comhttp://business.mapsofindia.com/india-company/h/havells-india.html

    http://havellsindia.wordpress.com


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