Tata voltas summer internship 2013

TITLE OF SUMMER TRAINING PROJECT

“Understanding the determinants of environmentally conscious behavior of the consumers”

Submitted in partial fulfillment of the requirements for

PGDM

By

Pawandeep singh

DM1214117

Batch of 2012-2014

ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY, PLOT NO 49,

Knowledge Park 3, GREATOR NOIDA-201306 (UP)

JULY 2013

CERTIFICATE OF ORIGINALITY

(To be filled in by the student in his / her handwriting)

I_____________________________________ Roll no __________________of 2013,is a fulltime bonafide student of first year of PGDM Program of Accurate Institute of Management & Technology, Greater Noida. I hereby certify that this project work carried out by me at _____________________________________________________ the report submitted in partial fulfillment of the requirements of the program is an original work of mine under the guidance of the industry mentor __________________ and the faculty mentor ______________________________________________and is not based or reproduced from any existing work of any other person or on any earlier work undertaken at any other time or for any other purpose, and has not been submitted anywhere else at any time

(Student's Signature)

Date: July, 2013

(Faculty Mentor's Signature)

CERTIFICATE FROM GUIDES

Date: July 2013

ACKNOWLEDGEMENT

A work is never a work of an individual. We owe a sense of gratitude to the

intelligence and co-operation of those people who had been so easy to let us

understand what we needed from time to time for completion of this exclusive

project.

We want to express our gratitude towards Prof. Vinay Jha, Marketing

Department, AIMT, Greater Noida for giving us an opportunity to do this

project.

Last but not the least, we would like to forward our gratitude to our friends

& other faculty members who always endured us and stood by us and

without whom we could not have envisaged the completion of our project.

Date: Pawandeep Singh

Rollno. DM1214193

PGDM (2012-14)

DECLARATION

I Pawandeep singh, a student of PGDM ACCURATE INSTITUTE OF MANAGEMENT AND TECHNOLOGY. Hereby declare that this project report entitled “Understanding the determinants of environmentally conscious behavior of the consumers” Of tata voltas air conditioner is original and is the result of my own efforts in training

It is only for the academic purpose and it has not been published or presented anywhere else. The findings and analysis are original and are true to the best of my knowledge.I bear full responsibility for information given in this report.

Voltas – Marketing Project Report

DESCRIPTION OF CURRENT SITUATION:-

1) Company -Voltas

Voltas is among India's leading air-conditioning, refrigeration and engineering

services companies. Set up in 1954, its core competencies lie in air

conditioning and cooling appliances and services. Voltas is India's largest

supplier of engineering products and services for the textile machinery sector

and is a major manufacturer of forklift trucks. It provides solutions in turnkey

pumping projects for water, effluent and sewage treatment, and water pollution

control. The company has ISO 9001-2000 certification and has executed

projects in the Middle East, Southeast Asia, Central Asia, Africa and Europe.

The company mainly operates in the following areas:

• Heating, ventilation and air-conditioning (HVAC) solutions: Includes

the entire range of mechanical, electrical and plumbing services for a

diverse range of applications, spanning office complexes, airports,

malls, mercantile ships, atomic energy plants, IT parks, hospitals, etc.

• Cooling appliances: Design, manufacture and marketing of a range of

air conditioners and water coolers for household and institutional use

• Engineering products and services: Design, sourcing, installation,

training, maintenance, etc of engineering products and services in the

fields of textile machinery, machine tools, mining and construction

equipment and materials handling equipment.

Chemicals: Import and distribution of an array of industrial, specialty and

pharmaceutical chemicals, industrial plastics and bulk drugs. The company also

exports gelatine, ultramarine blue and agrochemicals.


JOINT VENTURES, SUBSIDIARIES, ASSOCIATES

Voltas's subsidiaries include Metrovol FZE, VIL Overseas Enterprises BV,

Voice Antilles NV, Weathermaker, Jebel Ali (Dubai), Simto Investment

Company and Auto Aircon (India).

LOCATION

Voltas has its head office in Mumbai and regional offices in several major cities

in India. Its overseas offices are in Abu Dhabi (UAE), Hong Kong and

Singapore. The company has factories at Thane (Maharashtra) and Pantnagar

(Uttarakhand) in India


Air Conditioner Industry

Thanks to the fabled Indian middle-class, the air-conditioner market is hooting up. An inordinately hot summer has convinced the people the comfort of an air-conditioner and a large number appears to have decided to take one home this year. Indeed, in the last few the years, the demand for air-conditioners from the household sector has been growing rapidly. Still, the demand growth is particularly noticeable, and was also the most significant change in the industry during this period.

According to some industry estimates, growth in volume terms has been 45-50

per cent this fiscal. But official statistics underestimate this and even report a

decline in production. Nevertheless, by all accounts, including a study by the

Confederation of Indian Industry (CII), there has been a noticeable jump in the

demand for air-conditioners from the household segment. After several years of

relatively modest growth, which was totally at variance with the latent potential

of the product, the sharp growth in demand the summer past was very welcome

for air-conditioner companies in many respects. One, it relatively reduced their

dependence on the corporate sector which is still the major demand driver.

Corporate traditionally accounted for about 60 per cent of the total demand for

air-conditioners. But the burgeoning demand from the household segment could

level the ratio in the near future


One of the significant factors influencing the fortunes of the industry is the taxation

structure. The industry has come a long way from the time when the excise duty

structure favored only the unorganized sector. The steady fall in the excise rate in the

1990s helped the organized sector cope with the competition from the unorganized

sector on more favorable terms. Still, the unorganized sector continues to meet a

sizeable proportion of the demand for non-ducted products.

There was a significant change in the excise duty structure in 2000. The rate was

raised from 30 per cent to 32 per cent and this was expected to adversely impact the

industry. However, the shift to a maximum retail price based system for the levy of

excise appears to have helped the manufacturers. In the MRP-based system, an

abatement of around 40 per cent was provided. This ensured that the impact of the

increase in excise was minimal if not positive. Another major fiscal change is the

removal of quantitative restrictions on imports. Imports are, however, not all that

competitive considering the Customs duty structure. An import duty of 44 per cent

along with a countervailing duty, which is equivalent to the excise duty, is a large

enough protection for the domestic companies

Growth of AC market

The demand for non-ducted products grew steadily in the latter half of the 1990s. The

demand for mini-splits has grown at a higher rate compared to window ACs because

of the lower base. The demand switch from mid-sized ducted products, such as

packaged ACs or ducted splits, to mini-splits is also one of the reasons for the larger

growth rates in the latter segment.

Another major reason for the growth in demand was the increased attention of


this product category has attracted in the recent past. Prices of air-conditioners

dropped sharply in the past few years because of competition. Most established

players upgraded their manufacturing facilities, while fresh capacities were created

by companies such as Matsushita (National brand). The marketing and

advertisement spend by companies has also been on the rise.

With such investments flowing into building both the product and the brand, the

expansion of the market was inevitable. As seen with other consumer durables, in

the initial years of increased intensity of competition, both existing and new

players invest more cash. This leads to a drop in prices, fuelling demand and the

result is a much larger market. And the non-ducted segment has attracted a lot of

players in the last few years. The latent long-term demand potential from Indian

households has led to a number of multinational companies making a beeline to set

up base in the country.

Major players in this product category are Carrier , Voltas and Blue Star.

Brands such as Hitachi , Llyod, Videocon and Godrej also have a sizeable

presence. Among the recent entrants, the Korean brands such as Samsung and

LG have been able to make an immediate impact. Other brands that have

positioned themselves for a share in this fast-growing market are Panasonic,

Videocon and Daikin. On a much smaller scale, Whirlpool and Electrolux have

entered the market to cater to household demand.

Initially, the entry of new players did have an adverse impact on the established

players -- especially Voltas and Carrier Aircon. The reduced sales of window ACs

by Carrier Aircon and Voltas in recent years compared to past years is testimony

to the adverse impact caused by the entry of the new brands, especially

Panasonic ,Samsung and LG. However, there is a tough competition happening in

market between major brands.


Major Competitors

Voltas Air conditioners faces fierce competition with the following brands of air conditioners

i. LG

ii. Samsung

iii. Videocon

iv. Hitachi

v. Panasonic

vi. Whirlpool


Objective:-

As part of this project, we will be concentrating our analysis on the following focal points

1. Study Customer Behaviour – Understanding the factors responsible for customer buying behavior.

2. Marketing Strategy of Voltas – Understanding the Marketing plan of Voltas.

3. Analysis of Market Share of Voltas– To study and analyze the annual and financial growth reports of Voltas Co.

4. Study of Customer Segmentation – To study the products of Voltas with respect to the Segmentation of Customer over Family Size, Income, Price, Features etc.

5. Study of Product Differentiation – Variants of Products offered by Voltas Co.

6. Competition faced by Voltas – Analysis of the domestic competitors for Voltas.

7. External Environment of Voltas – Analysis of the Air Conditioner Industry.

We intend to run a customer survey, to find out the customer and distributor perception aboutVoltas


Scope:-

As part of this project we have limited ourselves to study the marketing strategy

of Voltas Air Conditioners only. We have studied the different brands of AC

products being produced by Voltas.

For this we have done a consumer survey within the domestic boundary of our

college students and friends and families outside.

Methodology:-

The sources used for our study are as follows:

• Primary data

o A consumer survey was conducted with the help of questionnaires across our colleagues within the campus and friends and family members.

o A set of questionnaire survey was done with the Distributors and local retailers of AC’s

• Secondary data

o We have referred to magazines and similar resources at our library

to collect various data

o We have referred to the home page of Voltas for current information on products and financial report


DATA ANALYSIS METHOD

(PROJECT RESEARCH TYPE)

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

Following are the steps to be followed while carrying out diagnostic research studies

1.Formulating the objective of the study (what the study is about & why is it being made)

2.Designing the methods of data collection

3.Selecting the sample

4.Collection the sample

5. Processing & analyzing the data

6. Reporting the finding

DATA SOURCES

Primary data

Primary data is the information collected for research purpose at hand.Primary data was collected through an interview with the help of a structuredQuestionnaire, which contained queries that were relevant to the purpose of the study as well as pertinent; industry related questions. the present study questionnaire makes use of both open ended and close ended questions.

Secondary data

Secondary data is the information which already exists. Secondary data Collected from journals, magazines, books etc.The secondary data for this research was obtained from textbooks, brochures and internet. Very little research specific data was available, hence much emphasis was given to primary data.

Research approach

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

study.

SELECTION OF SAMPLES AND DATA COLLECTION

SAMPLING METHOD

Random Sampling method

SAMPLE SIZE

50 Customers & 25 Dealer/Distributors

RESEARCH TOOL

Questionnaires- Questionnaire was designed with open-end close-end

questions. The questionnaire was designed in such a manner so as to

cater to all the areas and aspects the study.

RESEARCH AREA

We have taken response from consumers using a set of questionnaire. Our target responders were our colleagues, friends and family members.

Geographical coverage

Jamshedpur,Ranchi,Dhanbad,Chakradharpur


Customer Response for Voltas AirconditionersThis set of questions are used for academic project to study the Voltas Airconditioner Market

* Required

This set of questions are used for academic project to study the Voltas Air conditioner Market.

1) What is your age group?

a) 15-25

b) 26-35

c) 36-50 d) above 50

2) How many members are there in your household?

a) less than 3

b) 3-6

c) 6-9

d) more than 9

3) What is your annual family income?

a) less than 5 lac

b) 5-10 lac

c) 10 lac-20 lac

d) more than 20 lac


4) How many AC’s do you have in your household?

a)0-1

b)2-4

c)4-6

d)more than 6

5) Which brand of AC do you have?if you have given 1 or more in your previous response

a)Voltas

b)Samsung

c)LG

d)Panasonic

e)hitachi

f)other:_______________

6) Which brand of AC have you recently purchased?

a)Voltas

b)Samsung

c)LG

d)Panasonic

e)hitachi

f)Other:______________


7) What are the factors of selecting a Brand?

a)brand popularity

b)advertisement

c)current trend

d)BEE Star rating

e)Finance Option

8) Where do you prefer to purchase Air Conditioner

a)Exclusive showroom

b)Multi brand store

c)Local retailer

d)Non brand retailer

9) What are the influences for purchasing AC

a)Friend

b)Family

c)Price

d)Features

e)Looks

f)Others:______________


10)When do you prefer to purchase Air Conditioner?

a)Pre Summer

b)Post Summer

c)Off Season

d)Festive Season

11)how do you rate the factors for Air Conditioners 1-most important / 5-least important

1 2 3 4 5

Power consumption ___ ___ ___ ___ ___

Maintenance ___ ___ ___ ___ ___

On Call Service ___ ___ ___ ___ ___

Warranty ___ ___ ___ ___ ___

Size ___ ___ ___ ___ ___

12) Which Brand tagline Says “india ka dil , India ka AC”?

a)Voltas

b)Samsung

c)LG

d)Panasonic

e)Hitachi

f)Other:_____________


DATA ANALYSIS AND FINDINGS:-

Based on the response of the survey conducted within the consumers, the following trend came up

How many members are there in your household?

less than 3 13%

3 - 6 81%

6 - 9 4%

more than 9 2%

What is your family Annual Income Scale?

less than 5 lac 22%

5 lac - 10 lac 50%

10 lac - 20 lac 20%

more than 20 lac 8%

How many AC's do you have in your household?

0 - 1 40%

2 - 4 46%

4 - 6 12%

more than 6 2%

Which Brand(s) of AC do you have?

Voltas LG Samsung Panasonic Hitachi Other0%5%

10%15%20%25%30%35%40%

Chart Title

Series1 Series2

Voltas 25%LG 52%Samsung 22%Panasonic 17%Hitachi 8%Other 15%

People may select more than one checkbox, so percentages may add up to more than 100%.

Which brand of AC have you recently purchased

Voltas LG Samsung Panasonic Hitachi Other0%5%

10%15%20%25%30%35%40%

Chart Title

Series1 Series2


What are the factors for selecting a Brand

Brand Popularity 35%

Advertisement 4%

Current trend 14%

Finance option 37%

Brand Image 49%

Other 24%

Where do you prefer to purchase Air conditioner

Exclusive Showroom 13 27%

Multi Brand Store 26 53%

Local Retailer 9 18%

Non Branded Retailers 1 2%

What are the influences for purchasing ACFriend 6%

Family 19%

Price 27%

Features 44%

Looks 0%

Other 4%

When do you prefer to purchase Air Conditioner

Pre Summer 27 52%

Peak Summer 8 15%

Off Season 13 25%

Festive Season 4 8%

How do you rate the factors for Air conditioners - Power Consumption

63%

17%

10%

4%

6%

How do you rate the factors for Air conditioners – Maintenance

1 31%

2 35%

3 19%

4 12%

5 4%

How do you rate the factors for Air conditioners - On Call Service

1 29%

2 35%

3 8%

4 22%

5 6%

How do you rate the factors for Air conditioners - Size

1 19%

2 13%

3 35%

4 15%

5 17%

Which brand tagline says "India ka Dil, India ka AC"

Voltas LG Samsung Panasonic Hitachi other0

0.20.40.60.8

1

Chart Title

Series1 Series2


My Finding Report

Based on the above survey result we were able to draw out some facts about the AC Market and Voltas AC in particular.

• LG Brand AC is most popular within the consumer groups covered under our survey Consumers groups are mainly friends, family, collegues because to know the fair and true response we should first take response from friends, family, collegues

• Samsung and Voltas are maintaining close market share

• AC purchase decision is governed by following factors o Brand Image o Brand Popularity o Finance options

The purchase decision is a lot depended upon Brand Image but a typical customer considers finance options also while its purchase.

• Multi Brand Stores are the most favorable place of purchase. This clearly says that customers prefers to have comparative analysis of all possible brands before purchasing an AC

• The top 3 factors influencing AC purchase decision are

o Features o Price

o Family

• AC sales are at maximum during Pre Summer and then during off season (considering prices are low). It is not much affected during festive offer period

• 60% sample survey suggest that o Power Consumption o Maintenance o On Call Support service o Warranty

Are the important factors considered while purchasing/selecting a branded AC

The Branding of Voltas is strong and connects well within the masses

Air conditioner brands in India

As per Bureau of Energy Efficiency (BEE), around 38 brands of air conditioners are registered with BEE for star rating. The ones that are best known to us include LG, Samsung, Whirlpool, Voltas Godrej, Carrier, Hitachi, Daikin, Panasonic, Blue Star, Onida, Videocon, Haier, IFB , Electrolux etc. LG has the largest share in the room air conditioner market followed by Voltas and Samsung . Voltas, a TATA product and Godrej are the Indian brands. Hitachi and Daikin , Japanese brands, have products in the premium segment.

With the help of finding i also got what the consumer thinking of voltas AC .Means what comes in a mind of consumer when they think of voltas AC.

GOOD QUALITY,TATA PRODUCT,AVERAGE AC,INDIAN AC,AFTER SALE SERVICE IS BAD.


Distributors Response FormThis set of question is intended to be used for academic research project to study the Voltas Air Conditioner market.

*Required

Name of the store-

Address-

1) Do you Sell Voltas AC in your Store* ?

Yes

No

2) if not , why don’t you keep Voltas AC in your Store ?

a) Exclusive Showroom

b) Lack of demand

c) Low profit Margin

d) No service Shop Available locally

e) Other:_____________________

3) What are the major brands of AC being sold out from the store* ?

a) Samsung

b) Voltas

c) Panasonic

d) LG

E) Hitachi

f)Other:_______________


4) What are the usual brands considered by consumers for AC purchase

a) Samsung

b) Voltas

c) Panasonic

d) LG

e) Hitachi

f) Other:____________________

5) What are the primary reasons for most selling brands of AC

a) Price

b) Quality

c) Star rating

d) Features

e) Advertisement

f) After sale service

6)How many AC you sell in a year?

A)0-50 B)50-100 C)100-150 D)150-200 5)200 and more

Answer-

7)What are the different brand of AC do you sell?

A)Voltas B)LG C)Samsung D)Panasonic E)Hitachi F)All of the above

Answer-


8)How many Voltas AC you sell in a year?

A)0-40 B)40-80 C)80-120 D)120-160 E)160 and more

Answer-

9)Which Brand has a best market share ?

A)Voltas has the best market share B)LG has the best market share C)Panasonic has the best market share D)Samsung has the best market share E)Hitachi has the best market share F)There are other brands which is making progress

Answer-

10)What is the reason of selling high/ low no. of Voltas AC?

A)It is high selling because of brand B)It is low selling because other brands are making progress in the market c) after sale service d) advertisement e) price factor

Answer-

Data Analysis

Do You Sell Voltas AC in your storeYes 83%

No 17%

If Not, Why don't you keep Voltas AC in your store

Exclusive showroom

Lack of demand

Low profit margin

No service shop

available locally

other0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Series3Series2Series1

Exclusive showroom 10%Lack of demand 90%Low profit margin 0%No service shop available locally 0%other 0%


What are the major brands of AC being sold out from the store


0.2

0.4

0.6

0.8

1

Chart Title

Series1 Series2



What are the usual brands considered by consumers for AC purchase


0.20.40.60.8

1Chart Title

Series1 Series2



What are the primary reasons for most selling brands of AC

Voltas

LG

Samsung

Panasonic

Hitachi

other

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

Chart Title

Series2 Series1


Price 50%Quality 33%Star rating 50%Features 67%Advertisement 17%After sale service 50%

How many AC you sell in a year?

Voltas

LG

Samsung

Panasonic

Hitachi

other

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

Chart Title

Series2 Series1

What are the different brand of AC do you sell

Voltas

LG

Samsung

Panasonic

Hitachi

other

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

Chart Title

Series2 Series1


Voltas 90%LG 70%Samsung 70%Panasonic 50%Hitachi 60%other 80%

How many Voltas AC you sell in a year

Voltas Samsung LG Panasonic Hitachi other0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

50%

60%

75%

30%25%

40%

Series1 Series2

Which Brand has a best market share

Voltas Samsung LG Panasonic Hitachi other0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

50%

60%

75%

30%25%

40%

Series1 Series2


Voltas 50%Samsung 60%LG 75%Panasonic 30%Hitachi 25%other 40%


My Finding

Based on the survey response received from several distributors the following was our observations.

• Voltas AC lacks in demand in the Jharkhand region like Bokaro and Ranchi whereas highly demanded in Jamshedpur region

• LG and Samsung is the most dominant brand of AC in overall market • LG, Samsung and voltas consists in majority of consideration set of

customers • Features are the prime factor of purchase reasons. • Price, after sale support and finance schemes are also major reasons for

consideration of buying an AC

Voltas which is of Tata group is a leading brand of air conditioner according to a past years but recent years there is a lack of demand of Voltas AC within consumers.

Voltas Ac According to a survey and questions asked with several distributors and the response comes from distributors are

1)Voltas after sale service is not good And sometimes positive responses not comes after calling in helpline number of Voltas ac so result dealer have to suffer because customer approaches to dealers to solve their problems and there is always a minor problems occurs in air conditioner after buying Voltas ac .

2)Voltas AC comes in a Chinese materials and with aluminium tubes which is a very important factor of lack in demand of Voltas Ac because customers wants Air conditioner which is durable and built with copper tubes.

Customers wants air conditioner with Copper tubes with aluminium fins because copper are superior to aluminium because of copper’s superior strength, reliability, ease of maintenance, and excellent heat transfer characteristics.

One of the biggest problems with Aluminum is that leaks can occur where the aluminum meets the copper in the condensing unit due to galvanic action.


SWOT ANALYSIS

Strength Weakness

Design and manufacture of Too keen on targeting the

industrial equipment. economy consumer segment

Management and execution of only

Air Conditioning Unable to target the Green

Voltas represents a number of conscious customers

global technology leaders,

serving diverse industrial

sectors and applications.

• Public works project

• Sourcing, installation and

servicing of technology

based

systems

Opportunities Threats

The high end value driven Due to increased price of inputs

proposition helps increase the and continued price erosion

market share. there is downtrend in the

Voltas is well known for its consumer durables market

product differentiation

Promote eco friendliness

through their energy efficient

products


MARKETING ANALYSIS

Marketing is a societal process by which individuals and groups obtain what

they need and want through creating, offering and freely exchanging products

and services of value with others or otherwise it is the process of planning and

executing the conception, pricing, promotion and distribution of ideas, goods,

services to create exchanges that satisfy individual and organizational goals.

Marketing Strategy

Marketing strategy is a set of objectives, policies and rules that leads the

company's marketing efforts. It is the marketing approach to accomplish the

bread objective of the marketing approach to accomplish the bread objective of

the marketing plan. The various process of marketing strategy is given below.

1. Selecting largest markets segmentation 2. Positioning 3. Product 4. Price 5. Place 6. Promotion 7. Research and development 8. Marketing research

1. Market segmentation and selecting target market

Voltas has smartly created their market segment on the basis of the

Cost sensitivity within consumers. Voltas has segmented their

consumers as

- Cost saving conscious

- Cost saving plus appearance conscious

- Affordability with ease Voltas – Marketing Project Report

2. Positioning

Voltas has positioned themselves as a low on cost air conditioners with

all the features of a good air conditioner.

3. Product

Voltas offers a range of air conditioners in the market, which includes

• Split AC • Window AC • Pristine AC • Panache AC • Cassette AC • Slim line AC

4. Price

Considering the customer segmentation and market positioning,

Voltas has kept its product prices competitive and lucrative for the

economy minded consumers. The company does operate in the higher

segments but it ensures Price as their winning factors, since they

cannot compete over other value addition which is possible for other

costlier brands.

5. Place

Voltas has ensured its product presence at almost all tiers of cities

throughout the country through local retailers, exclusive showrooms,

malls, electrical and electronic superstores etc.

Since last year, the company has also started coming up with special

retail franchisee where all the Voltas products are installed in working

conditions so that the consumers can check and feel the features of the


product at the store. The location of such innovative stores is made such

that it caters to majority of the areas within its radius.

The after sale service shops are present in all major tier – A, B, C

cities. Voltas has even developed its own 24 hours dedicated customer

care representatives to take all types of complaints, feedbacks and

suggestions from customers.

6. Promotion

Voltas advertisement strategy clearly depicts their customer

segmentation and positioning within market. The advertisement is meant

to emotionally bridge the gap within its consumers who feel that AC

runs on electricity bill to electricity saving AC.

The promotions done through magazines are smartly placed and

designed to attract different income level customers who prefer AC

with good exterior look and low on energy bill.

7. Research and Development

Voltas uses the state of the art technology in its entire product range.

With the solid back up of Voltas and dependable Indian label, Tata,

Voltas AC continuously develops its product to match with all the

compliance and customer requirement.


MARKETING STRATEGY

Marketing is not Euclidean geometry a fixed system of concept. Rather marketing is

one of the dynamic fields with in the management arena. The market faces

continually a new challenge everyday and companies must respond to it positively.

Therefore it is not surprising that new market idea keep surfacing to meet new market

place challenges.

The market process is applicable to more than goods and services. Anything related

to market including ideas, events, policies, prices and personalities comes under

market strategy. However it is important to emphasize opportunity in the market

through market strategy.

Following strategies adopted by the organization.

₃ Niche Marketing:

Voltas has kept their marketing objectives for niche segments. The specific

marketing effect helps them staying focused with their product and customer

demand

₃ Multi Prolonged Strategy:

Voltas marketing strategy is a long term approach. They have not changed their stand

since the inception of the brand and continue to promote the same value proposition

of economic energy consumption to their customer segments. This has helped them in

creating a brand sentiment within masses and the featured product are helping them in

getting into cutting edge competition.

₃ Corporate selling at discount price to Employees:

Voltas has adopted an amazing marketing technique of offering their AC product at

reduced price to the employees of TCS. This promoted the brand within in house.

On the basis of marketing strategy an organization runs in the market. It is several

types of which makes helpful to increase sales and turnover of the organization.


MARKETING MIX

Target Market

Product Price Place

Product variety List price promotion Channels

Quality Advertising Coverage

Design Sales forces Assortments

Features period Public relation Locations

Brand name Credit terms Direct marketing Inventory

Packaging Transport

Sizes

Services

Warranties

returns


MARKET POTENTIAL

The size of the air-conditioner industry in India is about Rs 2,000 crores. The industry can be sub-divided into non-ducted and ducted products. The demand for non-ducted products -- window air-conditioners and mini-splits -- comes from both households and corporate. The demand for ducted products -- central plants, packaged air-conditioners and ducted splits -- is only from the corporate.

A vast majority of middle-class Indian homes have traditionally battled the summer heat with the help of fans or giant fan-driven water coolers which blast cool air. "All these years companies have thought of an AC as an expensive luxury product but that's no longer true,” (The AC) has moved from its luxury status to a necessity item just like any washing machine or refrigerator. Air conditioner companies see India as a potential gold mine as it offers a winning combination of rising disposable incomes and AC ownership levels of just 1.1 percent of households. And average prices for air conditioners in India have dropped by about 20 percent over the past two years thanks to new companies entering the fray, making them more accessible to consumers.

With average incomes rising, AC penetration to follow the same trajectory as colour TV ownership which is pegged at 18 percent of all households and whose sales have also been spurred by falling prices. The dismal supply of power where outages, lasting hours, are a part of life in large swathes of India, could still throw a spanner into the bullish hopes of AC companies. The big problem is the quality of power supply and the cost of running an AC running costs are upwards of three rupees an hour depending upon electricity tariffs. Also hurting growth is the unofficial "grey" market that accounts for close to 15 percent of the sales. But that is down from 70 percent a decade ago, as competition among established players and growing preference for brand name ACs among consumers who want after-sales service has narrowed the gap to around 3,000 rupees from 7,000 earlier. It will shrink further and further as markets mature and consumers get educated.

Indian air conditioner market is already flooded by players like Hitachi, Whirlpool, LG, Haier, Samsung, Voltas, Videocon and many more each competing on the basis of price and features.


LIMITATION OF THE PROJECT

1. The sample used for our consumer behaviour analysis is very small and does not represent the whole market

2. The study is based on articles, presentations, etc available in library, internet, company home page etc. only

3. The analysis is done by under trainee students and cannot be taken as final report

CONCLUSION

Based on this Marketing research project we were able to make the following conclusions about the brand Voltas AC

1. Customer Behaviour – With the help of our survey we were able to deduce that the consumers of ACs are mostly driven by Energy efficiency, maintenance cost, after sale support

2. Marketing Strategy of Voltas – Voltas has strictly adhered to their mass

marketing technique and highly efficient products at reasonable cost of owning. This has helped Voltas to capture the niche market of cost sensitive consumers and even retain them.

3. Market Share of Voltas– Voltas is doing fairly well in the current scenario with its last quarter results showing positive development

4. Customer Segmentation – Voltas customer segmentation is very clear and they have streamlined their products as per the same.

5. Product Differentiation – Voltas has a good line of products within each type of products.

Voltas is a prominent AC brand within masses which promises cost saving through energy efficiency to their customers. They have been able to reach out to their customer segments through very emotional and powerful advertisement channels. The recent partnership at the Abu Dhabi Grand Prix race, 2008 gave them an International dimension. Voltas has been pioneering themselves across all segments of ACs with their solid engineering expertise of Voltas engineers and great Indian value company – Tata.

BIBLIOGRAPHY

http://www.voltas.com/index.asp#

http://www.voltas.com/news/cooling_appliances/Voltas_launches_new_range_of_All%20Weather_air_conditioners_news10.asp

http://www.voltas.com/media_centre/media_centre.asp

http://www.voltas.com/media_centre/media_centre.asp



http://www.voltas.com/index.asp#

Date post:	28-Oct-2015
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Tata voltas summer internship 2013

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