Marketing Voltas

Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 31

“A Market Survey on Air Conditioners with special reference to

Voltas”

EXECUTIVE SUMMARY

In today’s world market there is a tough commotion


among various brands. All are playing hard to beat one
another. Each wants to position itself so as to retain
their market and get foothold on other markets. It is
essentially a fight for share of market .This report has
tried to bring about the parameters about different
incentives and perception about dealers regarding
different AC’s provided by major players in the
electronic goods. The working methodology has been
discussed that is data collection methods, sampling
methods and surveys questionnaire methods. The
questionnaire designed and structured so as to cover a
specified range of dealers.
The results of various parameters have been included in
this report and shown. A complete structure of research
design has been included.
A part from above discussed points a brief profile of
company, it’s business operations and strategies are
also included.

1
INTRODUCTION

In 1902 Dr.Willis Haviland Carrier invented and secured


the patent for a weather control concept – air
conditioning. Ever since, life hasn’t been the same. The
air conditioner market is hotting up as more and more
people appear to the convinced about the comfort of an
air conditioner. The extremely hot summers have stirred
the demand for AC’s and the industry is experiencing a
significant change.

The air conditioning industry is around Rs 2700 crore


industry. Most of the segments in this sector are
characterized by intense competition, emergence of new
companies, introduction of the state of the art model,
price discounts, and exchange schemes.
The major players in this industry are LG, Voltas,
Carrier, Samsung, Onida, Kenstar, etc.

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.

2
NEED FOR THE STUDY

Today there are large number of companies in the


market which provide air conditioners to the various
institutions and households. The competition today in
this market is very stiff, so it becomes important for
them to study the market. The purpose of our study is
to know:

 The various segments that use air conditioners.


 Which brand is in more demand?
 Types of air conditioners which are in demand.
 After sales services of different companies.

RESEARCH OBJECTIVE:
To Study and analyze the market of air conditioners in
Ranchi and know which brand of air conditioner is
more in demand, considering the various features it
provides such as product quality, price, its
availability, the technology it uses and the after
sales services.

SCOPE OF THE PROJECT

This report mainly gives the detailed information about


the working condition of the company where the
company stands in the case of air-conditioners
marketing suggestion given in the project helps to let
the increase in sale of Voltas Air-conditioners. This
project will also help to know that what all benefits can
be given to dealer so that they will get attracted
towards their products.

3
LIMITATIONS

 The survey has been limited to small number of


respondents due to their scattered presence and lack of
time.

 It was not possible to cover the entire dealers of the


Ranchi(Jharkhand) in the given time period.

 At times the dealers were reluctant to share information.

 Due to the above limitation this project has some


biasness.

 Although the study is limited but we tried hard to work out


accurate data on the specific topic of the study.

4
5
COMPANY PROFILE

India's premier air conditioning and engineering


services provider Voltas Limited offers engineering
solutions for a wide spectrum of industries in areas such
as heating, ventilation and air conditioning,
refrigeration, electro-mechanical projects, textile
machinery, machine tools, mining and construction
equipment, materials handling, water management,
building management systems, indoor air quality and
chemicals.

The Company's strengths lie principally in

• The design and manufacture of industrial


equipment
• Management and execution of air conditioning and
public works projects
• Sourcing, installation and servicing of technology-
based systems
• Representation of global technology leaders,
serving diverse industrial sectors and applications.

6
OPERATIONS

Voltas' operations have been organized into four


independent business-specific clusters. Each of these
has its own facilities for market coverage and service to
customers.

1. Electro-Mechanical Projects & Services


 Electrical, Mechanical, HVAC & Refrigeration
Solutions
 Electrical, Mechanical & HVAC Solutions
(International)
 Water Management & Treatment
2. Engineering products & Services
 Textile Machinery
 Mining & Construction Equipment
 Machine Tools
 Materials Handling Solutions
3. Unitary Cooling Products for Comfort & Commercial
Use
 Cooling Appliances
 Commercial Refrigeration

Marketing
Voltas' sourcing and marketing operations cover air
conditioners, textile machinery, machine tools, mining
and construction equipment and industrial chemicals. In
these sectors, the company demonstrates its specialized
engineering expertise, as well as its extensive network
for global sourcing.

Manufacturing

7
Voltas possesses total capability in the manufacture of
room/split air conditioners, industrial air conditioning
and refrigeration equipment, water coolers, commercial
refrigerators, visicoolers, freezers and fork-lift trucks.
All these products bear the stamp of state-of-the-art
automated manufacturing plants resulting in
consistently high quality and reduced costs.

Furthermore, the Company is partnered with Fedders


International Inc. of USA for 'manufacture only' alliances
producing low cost, high quality room air conditioners.

Projects
Over the years, Voltas has built up a substantial
reputation and is actively engaged in turnkey projects in
fields such as electro-mechanical works comprising
electrical building services, HVAC, plumbing, public
Health, fire fighting, ELV & specialized systems;
electrical power projects; environmental and water
pollution control; pumping stations and water supply;
water & waste water treatment projects. The Company
has ISO 9001 - 2000 standards certification in this
business, and has successfully undertaken and executed
project works in the Middle East, Far East and South
East Asia, CIS countries and Africa.

Awards

• United Nations' Grand Award for Excellence in


Public Service Worldwide, 1993-94.
• International Public Relations Associations' Golden
Trophy for Excellence in Customer Service, 1994-95.
• Mumbai Chamber of Commerce and Industry's Good
Corporate Citizenship Award, 1995-96.
• Top industry honors at UAE 2008-09.

Technological leadership
As a leader in technology, Voltas has made consistent
efforts to bring customers the latest and best
technologies across varied domains. The Company has
entered into collaborations and technical tie-ups with
world leaders so as to keep pace with global
developments. Some of Voltas' collaborations are with:

8
• Besseling, Netherland, for Controlled Atmosphere
(CA) / Ultra - Low Oxygen (ULO) storage technology.
• Bock - Germany, Refcomp - Italy and JE Hall - UK, for
Semi - Hermetic compressor
• Costan of Italy, for Refrigerated Cabinet Display
Units for hyper market engineered systems.
• Dunham-Bush Incorporated (USA), for screw chillers
• Hitachi Limited, Japan, for vapour absorption
machines
• MIDEA, China, for Variable Refrigerent flow
Systems.
• Ruks Engineering, Canada, for ozone engineered
systems
• Standard Refrigeration Company (USA), for direct
expansion chillers
• Siemens Building Technologies (Asia-Pacific), for
building management systems

Representations
The company is also an Indian representative of a
number of leading manufacturers worldwide. To name a
few:

• BT, Sweden
• Bruckener, Germany
• Erbatech, Germany
• Fanuc Ltd. , Japan
• Hercules - Aqualon Division, USA
• Huntsman Tioxide, UK
• Hyundai, Kore
• Kobelco, Japan
• Kluber, Germany
• LeTourneau Inc., Australia
• LMW, India
• Memminger, Germany
• Mitsubishi Heavy Industries, Japan
• Terex - BL-Pegson, UK
• Terex - Powerscreen, UK
• Terex - O&K, Germany
• Terrot , Germany
• Tornos , Switzerland

9
Nationwide & global network

• Head office in Mumbai


• Zonal HQ in Mumbai, Delhi, Chennai and Kolkata
• Branch/area offices in Ahmedabad, Baroda, Bangalore,
Calicut, Coimbatore, Chandigarh, Delhi, Ghaziabad,
Indore, Jaipur, Jamshedpur, Kochi, Kolhapur, Lucknow,
Ludhiyana, Madurai, Panjim, Pune, Secunderabad, Surat,
Tirupati, Tirupur, Vijaywada and Visakhapatnam
• Overseas offices in UAE (Abu Dhabi, Dubai), Bahrain,
Qatar (Doha), Kingdom of Saudi Arabia (Jeddah) and
Singapore
• Factories: Thane (Maharashtra), Dadra
(UT)andPantnagar(Uttaranchal)

Human resources philosophy and policies at Voltas

The cornerstone of the Voltas Human Resources


Management philosophy is the conviction that the well-
being of the company and of its people are
interdependent; and that the company's most valuable
assets are its people.

Our commitment:

• To employ the most competent, on the basis of merit


• To ensure that every employee is treated with dignity and
respect, and in a fair, consistent and equitable manner
• To create a stimulating, enabling and supportive work
atmosphere
• To aid and encourage employees in realizing their full
potential

10
We recognize that the success of this philosophy
depends in a large measure on the manner in which
managers and their team members - at every level -
carry out their duties and obligations to each other and
to the company. Without mutual confidence and loyalty
among employees, as well as respect for each other as
human beings, our philosophy will not work.

Social Responsibility
Managers at all levels are committed to the following
principles:

Have knowledge of, and accept total responsibility for,


the success of the organization's human resources
philosophy, policies and procedures, and review them
with team members to ensure their total understanding.

Ensure consistent and fair application of all HR policies

Exercise leadership by demonstrating integrity,


professional knowledge, courage of your convictions,
and concern for the feelings of others.

Establish a relationship with team members that


encourage a free bi-directional flow of information,
permits open discussion of differing views, and allows
decision making at the most appropriate levels.

In the same context, all employees are expected to


maintain certain standards in relation to their work, and
in representing themselves as the staff of Voltas. They
will:

• Communicate constructive ideas and opinions to


managers and team members either pro-actively, or on
request
• Accept and support decisions made contrary to their
expressed positions
• Apply the highest standards of ethics, integrity and
honesty
• Comply with the company's policies and procedures

11
ORGANISATIONAL STRUCTURE
Voltas' operations have been organized into four
independent business-specific clusters, each with its
own facilities for market coverage and service to
customers.

12
MISSION

Voltas is eyeing 20% market share in the Rs 4,500-crore


air conditioning industry from 17% during fiscal 2009-
10. To achieve this, the company is augmenting
production from 4.5 lakh units per annum to 6.25 lakh
units at its two plants in Silvasa and Pant Nagar, the
total capacity of the AC industry is expected to go up
sizeably to 3.6 million units in 2010-11 as against two
million units in 2008-09. “they are looking at a sharp
growth in their marketshare in the coming fiscal to 20%
as against 17% now. Towards this,they have spruced up
their marketing and distribution network across the
country.” “With the introduction of 50 models during
the fiscal, we expect to post a sharp growth during the
next fiscal and accordingly we are increasing the volume
to 6.25 lakh units a year from the current 4.5 lakh
units,”. To achieve it, the company will increase the
number of channel partners from 3,000 to 4,000 next
fiscal and will set up 175 new franchisee showrooms.
“the company expect contribution from split ACs to go
up to 65% next fiscal as against 55% now, while the
remaining will come from window ACs. The company has
earmarked an ad budget of Rs 40 crore for 2010-11
fiscal as against Rs 30 crore in Rs 2009-10,” Bakshi said,
adding “the AC market is growing at 30% per annum in
India.
Their endeavor is to lead the industry and make
economical products available at most competitive
rates.” increasing its production of other items such as
water coolers to 30,000 a year, water dispensers to
60,000 units a year and commercial refrigerants to
50,000 units a year.

The premium air conditioner segment is estimated to be


around 15 percent of the total annual market of two
million units.
“They are targeting around five percent of that market
during the first year,” Including the premium range,
Voltas has launched 50 new models, aiming to increase
its market share to 20 percent next fiscal.
“The market size in fiscal 2009-10 for the home and
commercial segments is expected to be 2.6 million units
and they hope to sell 525,000 units, up from the current
year’s 200,000.
13
The air conditioner market is broadly divided into home,
commercial and industrial segments.
The commercial segment includes premises fitted with
off the shelf air conditioners and those needing custom-
built air conditioning systems. `
The group looks after off-the-shelf air conditioners and
other products like water coolers and water dispensers.
The higher price of the Voltas products compared to
those of some multinationals, products are certified for
energy efficiency. The total ownership cost will be less
in the case of their products.
“In fact, Voltas air conditioners are competitively
priced.”
Voltas, which has a turnover of Rs.24.50 billion, also
plans to beef up its distribution network to 4,000
outlets next year by adding 1,000.

VOLTAS IN AIR CONDITIONERS


Star Rated AC

At the heart of every Voltas AC is a state of the art


energy efficient compressor that uses electricity wisely.
Add to it various power saving technologies and you
have got an AC that ensures perfect cooling, While
keeping the running cost minimum. No wonder, Voltas
ACs score high on star rating as per the bureau of
energy Efficiency (bee), an autonomous body under the
ministry of power, govt. of India. So go ahead and bring
home the AC that cares for your money as much as you
do.

What is star rating?

It is an initiative undertaken by the bureau of


energy Efficiency (bee), an autonomous body under
the ministry of power, govt of India. BEE now issues
a label after accessing the energy efficiency of
power consuming durables. The label is based on a
star system, wherein an ac’s performance is
measured on a scale of one to five stars. The more
the number of stars, the more you save on your
electricity bills.

14
Voltas ACs and Star rating

Voltas is among the first AC brands in India to adopt the


star rating initiative by BEE because of one simple
reason – savings. Now you can enjoy comfortable
cooling without worrying about huge electricity bills. In
fact, with year on year savings on its running cost, you
can recover the full cost of buying a Voltas star rated Ac
in no time. Moreover, now you have a handy device to
compare different ACs and choose the one that offers
maximum savings. Clearly the star rating initiative is all
set to change the way air conditioners are bought.

Power Saving Features of Voltas Star Rated ACs

Highest Energy Efficient Rotary Compressor


Enables minimum power consumption, higher cooling efficiency
and quiet operation.

Multi-bend Heat Exchanger


Voltas ACs adopt multi-bend heat exchangers that increase the
heat exchange surface area and thus improve efficiency

Trapeziform Inner-grooved Copper Tubes


This design allows adequate refrigerant flow, improves the
heat exchange efficiency and lowers power consumption.

High Efficiency Design


Technologically advanced overall design allows the machine to
perform at its best.

VERTIS- The one of its kind revolutionary VERTIS


technology creates the perfect indoor air quality for you
by managing the five critical constituents that define air
quality.

1. AIR PURITY

15
2. AIR FLOW
3. AIR HUMIDITY
4. AIR ODOUR
TYPES OF AC

INVERTER AC- Works faster saves energy and ensure that


the right temperature is felt in every corner of the room.
That is VOLTAS Inverter technology for you, delivering
precise cooling or heating power as per the requirement
by varying the speed of the compressor.

SPLIT AC- The classic Split AC ranges from LG featuring


the revolutionary VERTIS technology that delivers pure
air with uniform airflow. The horizontal and vertical
swing action ensures better air flow while giving
uniform cooling.

MULTI SPLITSAC – With a single outdoor unit now cool two


rooms whenever you wish. The Multi Split AC not only
saves space, but also saves you cost of two separate
units and installation. It saves upto10% on purchase,
installation and service of an VERTIS Multi Split AC.The
single outdoor unit ensures that you save up to 20% in
space.

FLOOR STANDING – AC’s that not only offer the purest of


air, but also the freedom of mobility ideal for homes,
commercial establishment of a small scale and offices,
they not only ensures uniform cooling across the room,
but also helps you save on electricity costs. Air throw up
to a distance of 21 ft giving cooling in every corner of
the room.

WINDOW AC – Featuring the revolutionary Aero DNA


technology it delivers pure and pristine air indoors by
managing the five critical constituents that determine
air quality. It also provides dynamic colours and designs
to complement your interiors.

With the beginning of the summer season, Voltas


Limited, a Tata group company, has launched two new
premium category air conditioner models. “The new
models include the country’s first corner air conditioner,
the triangle shaped Vertis Pristine that would fit on the
wall corner,”.

16
The other premium model is Vertis Panache fitted with
DC inverter technology.

RESEARCH METHODOLOGY
The data related information was collected through
questionnaire for dealers. The questionnaire was
structured objective types questions regarding high
media awareness, margin etc.

For the fulfillment of this project, we have made a


questionnaire and surveyed 14 dealers of Ranchi
Questionnaire is considered as one sample

RESEARCH DESIGN

Exploratory research

SAMPLE SIZE:

The sample size of the survey chosen was 14 dealers

from available dealers.

SURVEY AREA:

Main road, Lalpur, Upper Bazaar, Radium road,

Tharpakna at Ranchi.

SAMPLING AND FIELD WORK

17
Sampling and field work plan regarding this project are
as follows:

 Sorting out the dealer from the list of dealers.


 Preparation of questionnaire.
 Visits to the sorted out dealers
 Taking out the query from the dealers according to
the questionnaire.
 Analyze the given data.
 Interpretation of data.

DATA COLLECTION METHODS

In the Report only primary data were collected through


questionnaire and personal interview. For making the
survey more relevant some amount of secondary data
has been used. Due to project being of local
consideration use of primary data has taken in most
places

PRIMARY DATA

Questionnaires
Personal interview

SECONDARY DATA

Journals, Magazines and Internet.

METHODOLOGY FOR PROCESSING THE DATA

18
More than one method was used for procuring and
analyzing the Primary data. It was difficult to analyze
the data with one method so various methods have
been used for analysis.

19
Analysis and
Interpretation of
Data

20
RESPONDENTS PROFILE CAN BE STUDIED
WITH THE FOLLOWING GRAPHS
Number of AC sold in Ranchi in the last 3 months

BRAN LG VOLTA VIDEOCO KENSTA ONIDA SAMSUNG CARRIE GODREJ


D S N R R

NO. 75 658 200 23 100 54 30 265


4

Voltas
32%

Videocon
10%
LG Kenstar
35% 1%
Onida
Godrej Carrier 5%
13% 1% Samsung
3%

We have observed that out of 14 dealers LG in the last 3


months registered 36% sale of AC ,Voltas 32%, Samsung 2.5%,
Godrej 13% , Videocon 10%, Onida 5%, Kenstar 1%, Carrier 1%.
Who are the customers of air conditioners ?

21
Types of AC higher demandable

Types of AC Number of Dealers Percentage of


Dealers (%)
5 35.7%
Window AC
8 57.1%
Split AC 1 7.2%
Tower

TOTALS 14 100

Thus, we have observed that out of 14 dealers Split AC leading


the market with57%.follwed by window ac 35%.

TYPES OF AC HIGHER DEMANDABLE

• The brands having high demand in Market

22
Brand Names Number of Dealers Percentage of
Dealer (%)

LG 5 35.7%
VOLTAS 3 21.4%
ONIDA 2 14.2%
OTHERS 4 28.57%
TOTAL 14 100

Thus, I have observed that out of 14 dealers, the most


preferred brand is LG and then Samsung and Onida are
preferred.

The brand of AC which shows good demand in market

Rank of the AC on the basis of the latest technology

Percentage of
Brand Names Number of Dealers
Dealers (%)
5 35.7%
VOLTAS
3 21.4%
LG 3 21.4%
SAMSUNG 1 7.08%
ONIDA 2 14.2%
OTHERS
14 100
TOTAL

23
Rank of AC on the Basis of latest technology

The brand providing highest margin to the dealers.

Brand Names Number of dealers Percentage of


dealers (%)
03 21%
LG
04 29%
Samsung 03 21%
voltas 04 29%
Others

TOTALS 14 100

Thus, we have observed that out of 14 dealers, there is very


thin line of different between all the companies as far as
margin is concerned. Samsung is no1
Brands Providing Highest Margins

24
After sales services of the brands

Brand Names Number of dealers Percentage of


dealers (%)
04 28.57 %
Voltas
06 42.33%
Lg 02 14.28%
Samsung 01 7.14%
Onida 01 7.14%
Others
TOTALS 14 100

We have observed out of 14 dealers the best after sale service


is LG than after Samsung and Onida is equal and in others
carrier is doing well.

Brands Providing Best after Sale Services

FINDINGS:
25
The main findings are:
After covering 14 dealers of Ranchi , we found out

 There are three main competitors of Voltas namely LG,


onida and Samsung in Ranchi.
 Research and development activities should be taken up
more seriously to cope up with the competetion.
 Voltas should make smaller i`ndoor AC (Split) and price
should be same as competitor.
 Voltas should promote the AC as it does with its other
products.
 Voltas should decrease the noise level in window AC.

RECOMMENDATIONS

 Some of the dealers are not satisfied with marketing


support. Proper attention should be given to the
grievances of the dealer
 Improve the after sales service.
 Seasonal support is required to improve the sale of AC.
 Though Voltas is doing well .Regular promotional activity
are needed in order to further increase its market share &
dominance.
 The quality of Voltas AC is good But further increase in the
quality are needed in order to be firmly placed.
 Product availability should be improved and timely
attention should also be given to distribution Network of
the company.

26
 Technical knowledge of the dealer should be increased
through dealer visit in order to increase the sale of AC.

CONCLUSION

Today the Consumer goods markets have large


potential but almost all the players are operating with either
less margin or in loss. Godrej is still in loss in White Goods
Section so is Whirlpool. Its very important that companies
operating in this area should clearly focus on increasing
operational efficiency, support their dealers and insist on brand
building with customer satisfaction. Cut throat competition has
led to reduced margins for both company and channel partner.
So firm should focus on long term association with channel
partners. Voltas is market challenger in AC. It’s main
competitor being LG, samsung, onida. After analyzing the
different data’s we can safely conclude that voltas has a good
market demand after LG. Similarly voltas and LG. provide
similar margin to dealers, highest being that of samsung and
some other brands. According to dealers voltas always makes
a breakthrough in technology followed by LG. but best after
sales service is provided by LG. voltas will have more number
of satisfied dealers if it works on in improving it’s after sales
support service.

27
28
Questionnaire:
1. NAME:
ADDRESS:
Ph:

2. Which company’s air conditioner do you sell?


1. Voltas
2. Samsung
3. Onida
4. LG

3. Who are the customers for air conditioner?


1. Institutional
2. House Hold
3. Others

4. Which company’s advertisements and promotional


activities
Are good?
1. Voltas
2. Samsung
3. LG
4. Others

5.Which brand is providing best customers offer and offering


more
attractive scheme?
1. Voltas
2. Samsung
3. LG
4. Others

6. Which Brand of AC has good demand in market?


1. Voltas
2. Samsung
3. LG
4. Others

7. Which Brand is providing highest margin ?


1. Voltas
2. Samsung
3. LG
4. Others

29
8. Which Brand of AC has Latest technology?
1. Voltas
2. Samsung
3. LG
4. Others

9. Which type of AC higher demandable?


1. Voltas
2. Samsung
3. LG
4. Others

10. Which Brand provides best marketing support?


1. Voltas
2. Samsung
3. LG
4. Others

11. Which Brand of AC has best service support after sale?


1. Voltas
2. Samsung
3. LG
4. Others

30
List of Companies

 LG
 SAMSUNG
 ONIDA
 VIDEOCON
 KENSTAR
 GODREJ
 CARRIER

Bibliography:

Kotler Philip, Principles of Marketing


Berry G.C. , Marketing Research
C R Kothari, Research Methodology

www.voltas.com

www.voltasac.com

31

You might also like