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.

Voltas Marketing Project Report

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

Voltas Marketing Project Report 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 airconditioner 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

Voltas Marketing Project Report

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

Voltas Marketing Project Report

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.

Voltas Marketing Project Report Major Competitors Voltas Air conditioners faces fierce competition with the following brands of air conditioners i. ii. iii. iv. v. vi. LG Samsung Videocon Hitachi Panasonic Whirlpool

Voltas Marketing Project Report

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 about Voltas

Voltas Marketing Project Report

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 ACs 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

Voltas Marketing Project 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

Voltas Marketing Project Report

Customer Response for Voltas Airconditioners

This 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

Voltas Marketing Project Report 4) How many ACs 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:______________

Voltas Marketing Project Report 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:______________

Voltas Marketing Project Report 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 Power consumption Maintenance On Call Service Warranty Size ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ 2 3 ___ ___ ___ ___ ___ ___ 4 ___ ___ ___ ___ ___ 5

___ ___ ___ ___

12) Which Brand tagline Says india ka dil , India ka AC? a)Voltas b)Samsung c)LG d)Panasonic e)Hitachi f)Other:_____________

Voltas Marketing Project Report

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 3- 6 6- 9 more than 9

13% 81% 4% 2%

What is your family Annual Income Scale?

less than 5 lac 5 lac - 10 lac 10 lac - 20 lac more than 20 lac

22% 50% 20% 8%

How many AC's do you have in your household? 0- 1 2- 4 4- 6 more than 6 40% 46% 12% 2%

Which Brand(s) of AC do you have?

Chart Title
40% 30% 20% 10% 0% Voltas LG Samsung Panasonic Hitachi Series1 Series2 Other

Voltas LG Samsung Panasonic Hitachi Other

25% 52% 22% 17% 8% 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

Chart Title
40% 35% 30% 25% 20% 15% 10% 5% 0% Voltas LG Samsung Panasonic Series1 Series2 Hitachi Other

Voltas LG Samsung Panasonic Hitachi Other

17% 38% 17% 11% 7% 10%

What are the factors for selecting a Brand Brand Popularity Advertisement Current trend Finance option Brand Image Other 35% 4% 14% 37% 49% 24%

Where do you prefer to purchase Air conditioner Exclusive Showroom Multi Brand Store Local Retailer Non Branded Retailers 13 27% 26 53% 9 18% 1 2%

What are the influences for purchasing AC Friend Family Price Features Looks Other 6% 19% 27% 44% 0% 4%

When do you prefer to purchase Air Conditioner Pre Summer Peak Summer Off Season Festive Season 27 52% 8 15% 13 25% 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 2 3 4 5

31% 35% 19% 12% 4%

How do you rate the factors for Air conditioners - On Call Service 1 2 3 4 5 29% 35% 8% 22% 6%

How do you rate the factors for Air conditioners - Size

1 2 3 4 5

19% 13% 35% 15% 17%

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

Chart Title
1 0.8 0.6 0.4 0.2 0

Series1

Series2

Voltas Marketing Project Report

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.

Voltas Marketing Project Report

Distributors Response Form

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

*Required
Name of the storeAddress-

1) Do you Sell Voltas AC in your Store* ? Yes No

2) if not , why dont 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:_______________

Voltas Marketing Project Report 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-

Voltas Marketing Project Report 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 store Yes No 83% 17%

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

1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Exclusive showroom Lack of demand Low profit margin No service shop available locally other

Series3 Series2 Series1

Exclusive showroom Lack of demand Low profit margin No service shop available locally other

10% 90% 0% 0% 0%

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

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

Chart Title
1 0.5 0 Voltas LG Samsung Panasonic Hitachi Series1 Series2 other

People may select more than one checkbox, so percentages may add up to more than 100%. Voltas LG Samsung Panasonic Hitachi Other 40% 70% 50% 30% 20% 30%

What are the usual brands considered by consumers for AC purchase

Chart Title

0.5

0 Voltas LG Samsung Panasonic Hitachi Series1 Series2 other

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

Voltas LG Samsung Panasonic Hitachi Other

43% 60% 50% 33% 20% 30%

What are the primary reasons for most selling brands of AC

Chart Title
other Hitachi Panasonic Samsung LG Voltas 0 0.2 Series2 0.4 Series1 0.6 0.8 1

People may select more than one checkbox, so percentages may add up to more than 100%. Price Quality Star rating Features Advertisement After sale service 50% 33% 50% 67% 17% 50%

How many AC you sell in a year?

Chart Title
other Hitachi Panasonic Samsung LG Voltas 0 0.2 0.4 Series2 0.6 Series1 0.8 1

What are the different brand of AC do you sell

Chart Title
other Hitachi Panasonic Samsung LG Voltas 0 0.2 0.4 Series2 0.6 Series1 0.8 1

People may select more than one checkbox, so percentages may add up to more than 100%. Voltas LG Samsung Panasonic Hitachi other 90% 70% 70% 50% 60% 80%

How many Voltas AC you sell in a year

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Voltas Samsung 50% 60%

75%

40% 30% 25%

LG Series1

Panasonic Series2

Hitachi

other

Which Brand has a best market share

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Voltas Samsung LG Series1 Panasonic Series2 Hitachi other 30% 25% 50% 40% 60% 75%

People may select more than one checkbox, so percentages may add up to more than 100%. Voltas Samsung LG Panasonic Hitachi other 50% 60% 75% 30% 25% 40%

Voltas Marketing Project Report 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 coppers 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.

Voltas Marketing Project Report SWOT ANALYSIS

Strength Design and manufacture of industrial equipment. Management and execution of Air Conditioning Voltas represents a number of global technology leaders, serving diverse industrial sectors and applications. Public works project Sourcing, installation and servicing of technology based systems

Weakness Too keen on targeting the economy consumer segment only Unable to target the Green conscious customers

Opportunities The high end value driven proposition helps increase the market share. Voltas is well known for its product differentiation Promote eco friendliness through their energy efficient products

Threats Due to increased price of inputs and continued price erosion there is downtrend in the consumer durables market

Voltas Marketing Project Report

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

Voltas Marketing Project Report 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.

Voltas Marketing Project Report

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. 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 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. 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.

Voltas Marketing Project Report

MARKETING MIX
Target Market Product Product variety Quality Design Features Brand name Packaging Sizes Services Warranties returns period Credit terms Price List price promotion Advertising Sales forces Public relation Direct marketing Place Channels Coverage Assortments Locations Inventory Transport

Voltas Marketing Project Report 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.

Voltas Marketing Project Report

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%20Weath er_air_conditioners_news10.asp

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