A Project Report On Market Potential of Alternators in Pune For Crompton Greaves Limited

By Vikram Subhash Belhekar Under the guidance of Professor Mahesh Gadekar

Submitted to University of Pune In partial fulfillment of the requirement for the award of the degree of Master of Business Administration (MBA)

Through Vishwakarma Institute of Management Pune- 48

ii

ACKNOWLEDGEMENT

I would like to express my warm regard to Crompton Greaves Limited, Pune office, at J.M.Road, for giving me opportunity to successfully complete my project report on Market Potential for alternators in Pune. I sincerely thanks to Mr. Mujahid Shaikh, Senior Manager at Pune office for his valuable suggestions and guidance for the project. I must thank to Mr Shailesh Tripathi, from marketing department for his precious, continuous and day to day guidance for completion of project. His suggestions and encouragement has helped me to improve quality of my project. He has also given valuable additions to my marketing knowledge. I would also like to thank Mr. Batra, Branch Manager for giving me opportunity to complete my project with their team. This project would not have been successful without the precious guidance of our Director Dr. Shailesh Kasande and my project guide Mr. Mahesh Gadekar to whom I express my sincere gratitude. Finally I would like to thank our Professor Mrs. Minal Dhotre, who has helped me to acquire good marketing knowledge and all those friends and others who have helped me to successfully complete my project.

CERTIFICATE FROM VIM

CERTIFICATE FROM CROMPTON GREAVES

LIST OF ABBREVIATIONS

(1) (2) (3)

OEM Original Equipment Manufacturer CGL Crompton Greaves Limited. KEC- Kirloskar Electric Company

LIST OF TABLES
(6.1) Company wise sales in terms of units (6.2) Dealer wise sales in terms of units

LIST OF TECHNICAL TERMS

(1) KVA Kilo watt Ampere (2) AC Alternating Current (3) DC- Direct Current.

INDEX

Sr. No. 1 2 3 4 5 6 7 8 9 9 10

Title Executive Summary Company Profile Product Profile Objective of the Study Research Methodology Data Analysis Findings Conclusion Recommendation Bibliography Annexure

Page No. 1-3 4-7 8-12 13-14 15-16 17-47 48-49 50-53 54-55 56-57 58-67

CHAPTER 1 EXECUTIVE SUMMARY

10

Crompton greaves limited one of Indias largest private sector enterprises engaged in the manufacture of electrical engineering products. Crompton greaves is very well known brand in field of electrical equipments. The fans and lighting businesses acquired "Super brand" status in January 2004. It is a unique recognition amongst the country's 134 selected brands by "Super brands", UK. The main objective of the study was to find out the Market potential of alternators in Pune. Alternators are coupled with generators engine. Their size ranges from 1 KVA2000KVA. They convert chemical energy into electrical energy. KVA is a measuring unit which means kilo watt ampere. To decide the Research Methodology we take into consideration the business partition. As the business is divided in two areas i.e. Original Equipment Manufacturers (OEMS) and Dealers, we prepare two separate questionnaire and analyzed it. For collecting the primary data we went to various OEMs and dealers. The geographical coverage was Pune and PCMC area. The findings of the project were positive. Alternators market size in Pune is very large and continuously growing, at an average growth of 20%. Presently total Alternator market size in Pune among OEMs is around 77,000 units, which counts to be approximately 230 Cr in value. And among dealers the market size is around 4400 units, which counts to be 10 Cr in value. Thus OEM business counts to be very much large. The major player among both business areas are CGL, Stamford, KEC, Trident. Other major finding was of portable size gensets. At dealer level they are in good demand.

11

CGL is growing fast than market rate in OEM business in Pune, and also they are able to satisfy customers with their product and service. CGL is presently no. 1 in Pune in terms of unit wise sales, thus by keeping the aggressive marketing strategy company can achieve the no. 1 position countrywide.

12

CHAPTER 2 COMPANY PROFILE

13

Crompton Greaves Limited (CG), a member of the BM Thapar Group, is one of Indias largest private sector enterprises engaged in the manufacture of electrical engineering products and turnkey projects. Incorporated in 1937, CG is headquartered in a self-owned landmark at Worli, Mumbai. The business operations of the Company consists of 21 divisions spread across Maharashtra, Gujarat, Goa, Madhya Pradesh, Karnataka and Tamil Nadu. CG is the Indian Market leader across a number of product groups in the electrical engineering sector. The company enjoys an export presence in over 60 countries, which includes the emerging South-east Asian and Latin American markets. CG is a single-point source for a variety of electrical equipment and products. It addresses all the segments of the power industry from complex industrial solutions to basic household requirements. The strategy followed till today includes acquisitions and exceptional financial structuring to tap opportunities and fuel growth. Though family owned, the organization has always been professionally managed, and lists employee development and leadership training as core to its business success. The company has shown preparedness in meeting evolving customer expectations through its initiatives of continuous product development, product up-gradation and new markets. HISTORY:The history of Crompton Greaves goes back to 1878 when Col. R.E.B. Crompton founded R.E.B.Crompton & Company. The company merged with F.A Parkinson in the year 1927 to form Crompton Parkinson Ltd., (CPL). Greaves Cotton and Co (GCC) was appointed

14

as their concessionaire in India. In 1937, CPL established, it's wholly owned Indian subsidiary viz. Crompton Parkinson Works Ltd., in Bombay, along with a sales organization, Greaves Cotton & Crompton Parkinson Ltd., in collaboration with GCC. In the year 1947, with the dawn of Indian independence, the company was taken over by Lala Karamchand Thapar, an eminent Indian industrialist. Presently Crompton Greaves is headquartered in a self-owned landmark building at Worli, Mumbai. PRODUCTS & SERVICES OFFERED :CG comprises four principle Business Groups : (1) Power Systems (2) Industrial Systems (3) Consumer Products and (4) Telecom. Nearly two-third of the companys turnover accrues from product lines in which it enjoys a leadership position. Presently, the company is offering wide range of products such as power & industrial transformers, HT circuit breakers, LT & HT motors, DC motors, traction motors, alternators/ generators, railway signaling equipments, lighting products, fans, pumps and public switching, transmission and access products. In addition to offering broad range of products, the company undertakes turnkey projects from concept to commissioning. The fans and lighting businesses acquired "Super brand" status in January 2004. It is a unique recognition amongst the country's 134 selected brands by "Super brands", UK.

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CHAIRMAN & CEO :-

Gautam Thapar is Chairman & CEO of India's foremost diversified corporation, the Avantha Group. Gautam represents the third generation of a business family, founded by his grandfather, Karam Chand Thapar, in Calcutta (now Kolkata) eighty years ago. Over the decades, the organization has shown resilience and entrepreneurial spirit, and has continuously reinvented itself without wavering from its core values of integrity and creating lasting value for its stakeholders. Gautam began his education at the prestigious Doon School, where he imbibed a liberal education based on the ideals of secularism, discipline and equality. After studying chemical engineering in the U.S.A., he returned to India and started his career as a factory assistant in one of the organization's manufacturing companies. He rose steadily and steered the organization through a strategic and visionary turnaround, involving resilience and restructuring, ensuring that the Group attained dominant status in key operating sectors. Gautam became Group Chairman on 1st July 2006. He sits on the Board of various companies in India and overseas, and is one of India's youngest and brightest global business leaders.

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CHPATER 3 PRODUCT PROFILE

INTRODUCTION (ALTERNATORS):-

17

To cater to the needs and challenges of 21st century, of both its customers who have placed their confidence in the company throughout the years and those who will join it in the future Compton Greaves Limited have introduced new AC generators. This is to improve products towards world class quality and to maintain the status of qualified and reliable partner. These AC generators are manufactured using the most advanced technology in all the facets of manufacturing that is Design, Construction, Processing, Inspection, and Testing to meet the commitment of Total Customer Satisfaction. These AC generators ensure a continuous power supply and a very prolonged trouble free life. The design and construction are conceived to facilitate the coupling to the engine in all the foreseen Types of Construction. GENERAL :Rating confirming to the Standards :IS 4722, 13364 (part 1&2), IEC: 34 & BS : 5000 part 99. 5-15 KVA 240V 0.8 pf, 50 Hz, 1 Phase, 5-82.5 KVA 415V 0.8 pf, 50 Hz, 3 Phase, 5-25 KVA 240 V 0.8 pf, 50 Hz, 1 Phase, 5-625 KVA 415 V 0.8 pf, 50 Hz, 3 Phase, Slip-Ring type (G2S/G1S Type) Slip-Ring type (G2S/G1S Type) Brushless Type (G2R/G1R Type) Brushless Type (G2R/G1R Type)

DESIGNATION :- G 2/1 R/S XXX/ X X X G 2/1 R/S - AC Generator - Double Bearing./ 1- Single Bearing. - with AVR / S-with Slip ring

18

XXX - KVA Rating X X X - Number of poles (4 or 2) - Flange SAE No. (1,2, ) - Coupling Disc SAE No. ( 1=18//, 2=14//, 3=11.5//, 4=10//, 5=8//, 6=7.5//, 7=6.5//)

CONSTRUCTION :In G1S / G2S type AC generators, Armature winding is housed in stator and field winding is placed on rotor. The DC excitation power is supplied through two small size slip rings and brush holders & it is controlled by compounding excitation transformer. In G1R / G2R type AC generators, Armature winding is housed in stator and field winding is placed on rotor. The DC excitation power is supplied by the Brushless AC exciter with rotation Rectifier Assembly & it is controlled by Electronic AVR (Automatic voltage Regulator). Stator Frame Stator Core Stator Main Winding Stator Auxiliary Winding Stator / Rotor Insulation System Rotor Core End Shield Bearings Shaft Slipring And Brush Holder Assly

19

Rectifier Assembly Terminals And Terminal-Box Assembly Accessories OPERATING PRINCIPLES :Set Reference
Sensing

Output

A.V.R
Power from Aux. wdg.

Main stator

Exciter field

Main field (Rotor)

Rotating diodes Mechanical Rotational Power Input

Exciter Rotor (ArmaTure)

3.1 Operating principle of alternator

When started, residual magnetism in the exciter stator core induces a voltage in the exciter armature. This voltage is rectified by the diodes and fed to the main field winding, which will circulate the DC current through the field winding. The linkage of DC flux with the armature winding (Main & Auxiliary winding) will induce voltage in the armature winding. The induced voltage in the Auxiliary winding is used as a separate source of supply for the AVR. Sensing of AVR is taken from the main terminals. The DC output of the AVR is given 20

to the exciter field winding. The AVR regulates the terminal voltage within +/- 1% from no load to full load by controlling the excitation of the exciter field. SALENT FEATURES OF CGL AC GENERATOR :ELECTRICAL PERFORMANCE :(1) AVR used on these machines are of proven design. These are encapsulated against moisture, sand, salt, humidity and corrosive atmosphere ensuring trouble free operations under the most demanding conditions. The voltage regulation offered is +/- 1%. (2) High induction motor starting capacity -1kVA starts 1 HP (Except for Submersible Pumps where starting current is > 600% FLC.) under Ideal conditions. (3) Wave- form distortion on no-load is well within limits i.e. < 5% as per IS standard. (4) Armature winding is 2/3rd pitch, which along with auxiliary winding excitation system provides better performance. (5) Damper winding on poles ensures smooth parallel operation with similar and dissimilar machines. (6) Liberally rated diodes used in rotating rectifier assembly ensures high reliability. (7) A Metal Oxide Varistor protects the rotating diodes against the surge voltages. FORMULAE TO OBTAIN Kilowatts (KW) kVA SINGLE PHASE V*I*PF / 1000 V*I / 1000 THREE PHASE 1.732*V*I*PF / 1000 1.732*V*I / 1000

21

CHPATER 4 OBJECTIVE

OBJECTIVES OF THE STUDY:-

22

1. To find the market potential of Alternators in Pune region. 2. To find the market share of CGL alternators in Pune region. 3. To study the markets for Alternators, market size, major players and their rankings in Pune region. 4. Search for potential buyers (OEMs, dealers for the product in the market targeted) 5. Establish business contacts and communication with potential customers. 6. To find the satisfaction level of the customers. 7. To find the problems faced by CGL alternators customers.

23

CHAPTER 5 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY:-

24

(1) Segmentation of market in OEMs and Dealer. (2) Preparing a Questionnaire for all the above segments. (3) Collecting data about OEMs and Dealers of Gen-set In pune by Primary Method. (4) Market Survey of all Segments for collecting data about market potential of alternators in Pune region. (5) Tabulate and Analyze the data.

SAMPLING PLAN :Sorted out 18 Original Equipment manufacturer (OEMS) of Gen-sets and 49 Dealers of Gen-sets in Pune region

GEOGRAPHICAL COVERAGE :Pune City PCMC Industrial areas in Pune and PCMC.

25

CHAPTER 6 DATA ANALYSIS

OEM DATA ANALYSIS AND INTERPRETATION

26

(1) To study market share & growth rate of Alternators :2006-2007 VALUE Company Name CGL KEC TRIDENT STAMFORD OTHERS Total S (Units) 15727 8460 11083 16450 2000 53720 % Market Share 29.28 15.75 20.63 30.62 3.72 2007-2008 VALUES (Units) 19105 9494 12017 18200 2500 59316 % Market Share 31.16 16.01 20.26 30.68 4.21 2008-2009 VALUE S (Units) 29275 10658 14615 19336 3000 76884 % Market Share 38.08 13.86 19.01 25.15 3.90

(6.1) Company wise sales in terms of units

( Source- Secondary data of survey)

There is seen steady growth in market share of Crompton Greaves ltd. in Alternators market. Also market share has grown tremendously in 2008-2009 by 7%. We can say from table that all players in Alternators market are doing good business. These are:1. CROMPTON GREAVES LTD. 2. STAMFORD 3. TRIDENT 4. KEC

27

%M arket Share in 2006-07

4% 30%

29%

C L G KC E T ID N R ET S AM O D T F R

21%

16%

OHR T ES

%Market S hare in 2007-08

4% 30% 31%

C L G KC E T ID N R ET S AM O D T F R

20%

15%

OHR T ES

28

% Market sh are in 2008-09

4% 25% 38% CGL K EC TRIDENT S TA M FORD 19% 14% OTHERS

Interpretation: As we can see from the table, Alternators market size is very large and continuously growing, at an average growth of 20%. Presently total Alternator market size in Pune among OEMs is around 77,000 units, which counts to be 230 Cr in value. Crompton Greaves market share regarding overall sales of Alternator considering all market segments has increased from 31% to 38% from year 2007/08 to 2008/09. And 10% growth rate expected in year 2009/10 which will take market share to 41%.

29

2. To study Rating of Alternators OEM Purchase.:-

Range Upto 50 kVA 62.5 to 125 kVA 140 to 250 kVA 275 to 625 kVA 625 and above

Frequency 18 16 15 12 14

R n eo a rn to u e a g f lte a rs s d
2 0 Frequency 1 5 1 0 5 0 U to p 5 0 10 420 5 R g an e A oe bv 65 2 1 8 1 6

1 5 1 2

1 4 F q e cy re u n

Interpretation: As we visited 18 OEMs 77% of OEMs are dealing with alternators above 625 kVA, which contributes highest to the business. Also from our observation very less OEMs are dealing in alternators below 5 kVA. Thus we can say that OEM market is majorly dealing in higher range of alternators.

30

3. To study importance of various influencing factors while making buying decision for OEMs. (5= Very Important, 4=Important, 3=Neutral, 2= Not Important, 1= Not at all Important) BRAND: To study Brand Affecting Purchase Decision of OEMs Customer. In all 18 OEMs replied to this question 10 customers replied Brand is very Important in Purchase Decision . 7 customer replied Brand is Important in P.D. 1 customer replied Brand is Neutral in P.D.
B n A ra d ffec g P rc a D isio tin u h se ec n 1 2 1 0 8 6 4 2 0 1 2 3 4 5 5 4 7 33

1 0 R tin O a g f b ns ra d 2 0 1 N .O O f C sto e u m rs 0

Interpretation: As we can see from Table Brand is Very Important for 55 %OEMs. Whereas 38% Replied brand is Important . Rest of customer replied brand is neutral for us.

PRICE:-

31

To study Price Affecting Purchase Decision of OEMs Customer. In all 18 OEMs replied to this question. 14 customers replied price is very Important in Purchase Decision 4 customers replied price is Important in Purchase Decision
P e A c gP rc a e D c io ric ffe tin u h s e is n 1 6 1 4 1 2 1 0 8 6 4 2 0 1 2 3 4 5 5 44 3 0 R tin O P e a g F ric N .O O f C s mrs u to e 2 0 1

1 4

Interpretation :As we can see from Table Price is Very Important for 78 %OEMs. Whereas 22% Replied Price is Important for them . PRODUCT FEATURES: . To study Product Feature and Quality Affecting Purchase Decision of OEMs Customer In all 18 OEMs replied to this question. 14 customers replied product Feature is very Important in Purchase Decision 4 customers replied product Feature is Important in Purchase Decision

32

Po u tF aueA e tn P r d c e t r f ci g . f D 1 6 1 4 1 2 1 0 8 6 4 2 0 1 2 3 4 5 5 4 4 Rtn O a g F i P d c Fa r r ut et e o u N. O O f Cso es ut m r 3 0 2 0

1 4

Interpretation: As we can see from Table Product Feature is Very Important for 78 %OEMs. Whereas 22% Replied product Feature is Important for them .

Service Network:. To study service Network Affecting Purchase Decision of OEMs Customer. In all 18 OEMs replied to this question. 11 customers replied service Network is very Important in Purchase Decision 6 customers replied service Network is Important in Purchase Decision 1 customers replied service Network is Neutral in Purchase Decision

33

Service N etwork E ffecting P.D

12 10 8 6 4 2 0 1 2 3 4 5 5 4 6 3 1 R ating O Service F N etwork N .O C O f ustom ers 2 0 1 11

Interpretation:As we can see from Table service Network is Very Important for 61 %OEMs. Whereas 34 % Replied service Network is Important for them . Rest of customer replied service network is neutral for them.

Delivery:To study Delivery Affecting Purchase Decision of OEMs Customer. In all 18 OEMs replied to this question. 11 customers replied Delivery is very Important in Purchase Decision 6 customers replied Delivery is Important in Purchase Decision 1 customers replied Delivery is Neutral role play in Purchase Decision

34

Delivery effecting P.D

12 10 8 6 4 2 0 1 2 3 5 6 4 3 1 2 0 4 1 0 5 Rating OF Delivery. NO. Of Customers 11

Interpretation:As we can see from the table Delivery of product is very important for most of OEMs purchase decision

Availability:To study Availability of Product Affecting Purchase Decision of OEMs Customer. In all 18 OEMs replied to this question. 12 customers replied Availability of Product is very Important in Purchase Decision 4 customers replied p Availability of Product is Important in Purchase Decision 2 customers replied Availability of Product is play neutral role in Purchase Decision .

35

Availbilty Effecting P.D

14 12 10 8 6 4 2 0 1 2 3 5 4 4 Rating OF Avalibilty. NO. Of Customers 3 2 2 0 4 12

0 5

Interpretation:As we can see from the table Availability of product is very important for most of OEMs purchase decision

Consultant Recommendation:To study Consultant Recommendation about Product Affecting Purchase Decision of OEMs Customer. In all 18 OEMs replied to this question. 2 customers replied Consultant Recommendation is very Important in P.D. 9 customers replied Consultant Recommendation is Important in P.D. 7 customers replied Consultant Recommendation is play Neutral role in P.D.

36

Consultant Recom endation Effecting P.D m

10 9 8 7 6 5 4 3 2 1 0 9 7 5 4 3 2 0 1 2 3 4 2 1 0 5 R ating O C F onsultant R ecom endation m N .OC O f ustom ers

Interpretation: As we can see from Table Consultant Recommendation is Play Neutral role in OEMs Purchase Decision., as well as for some OEMs its not Important.

4.BRAND ASSOCIATION ATTRIBUTES: To study Brand positions of various Alternators manufacturing companies for OEM customer. In this 6 OEMs replied to this question 4 customers replied Brand of Stamford is good i.e. 1st rank. 2 customers replied Brand of CG is good i.e. 1st rank.
Brand Customers prefer most 80% 70% 60% 50% 40% 30% 20% 10% 0% Stamford CGL 0% KEC 33% Brand Customers prefer most 67%

37

Interpretation _ As we can see from table customers prefer brand Stamford more as compare to others. Availability:To study Availability of various Alternators manufacturing companies for OEM customer In this 5 OEMs replied to this question 3 customers replied Availability of Stamford is more in market i.e. 1st rank. 2 customers replied Availability of CG is good i.e. 1st rank
Availability more in market 70% 60% 50% 40% 30% 20% 10% 0% Stamford CGL 0% KEC

60%

40% Brand Customers prefer most

Interpretation :As we can see from table Stamford and CGL are more penetrated in market rather than other.

Product features:To study Product Features of various Alternators manufacturing companies for OEM customer

38

Product feature better 70% 60% 50% 40% 30% 20% 10% 0% Stam ford C L G 0% KEC

60%

40% Brand C ustomers prefer most

Interpretation:As we can see from table more customer prefer Stamford when product feature is considered. Service Network:To study Service Network of various Alternators manufacturing companies for OEM customer
Service Network Better 70% 60% 50% 40% 30% 20% 10% 0% Stamford CGL 0% KEC 40% Brand Customers prefer most

60%

Interpretation:As we can see from table Service Network of CGL is better than Others. Advertising:-

39

To study Advertising of various Alternators manufacturing companies for OEM customer

advertising 80% 70% 60% 50% 40% 30% 20% 10% 0% Stamford CGL 0% KEC 33% Brand Customers prefer most 67%

Interpretation:As we can see from table advertising of CGL is better than Stamford.

5.To study the satisfaction with following feature of CGL alternator:In this 6 OEMs replied to this question Paint:- 5 customer replied they are satisfied, 1 replied he is not satisfied Finish :- all replied they are satisfied with finish. Aesthetics:- all replied they are satisfied with Aesthetic Packing:- all replied they are satisfied with Packing.

40

% customer Satisfied

Packing, 100%

Paint, 83% Paint Finish Aesthetic Finish, 100% Packing

Aesthetic, 100%

6.To study the what customer think about current pre sale support offered by CGL to them .

Rate CGL alternator as per the fulfillment their expectation:In this 6 OEMs replied to this question Very good:- 0 customer replied Good:-5 replied good. Average:-1 replied average. Poor:-0 replied poor.

41

Current Pre Sale offered by CGL, Accoridng to them CGL alternator fullfill their Expectation

17%

0% Very good Good Average 83% Poor

Interpretation:As we can see the table 83% customers feel Good, CGL Alternator fulfill their expectation. 7.To study the what customer think about the current post sale support offered by CGL to them .

Rate CGL alternator as per the fulfillment their expectation

In this 6 OEMs replied to this question Very good:- 0 customer replied, Good:-4 replied good. Average:-2 replied average Poor:-0 replied poor

42

Current Post Sale offered by CG A L, ccoridng to themCG alternator fullfill their Expectation L

0% 33% Very good G ood Av erage 67% Poor

Interpretation:As we can see the table 67% customers feel Good, CGL Alternator fulfill their expectation. Rest 33% feel Average CGL alternator fulfill their expectations.

8.To study the CGL customer are satisfied with response for product modification and development. In this 5 OEMs replied to this question Yes:- 4 customer say, No:- 1 customer say

43

% customer satisfied 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No 21% % customer satisfied

79%

Interpretation:As we can see from table 79% customer are satisfied From CGL with response for product modification and development.

9.To study the CGL customer are satisfied with overall completion of contract By CGL. In this 6 OEMs replied to this question Yes:- 5 customer say, No:- 1 customer say

44

% customer satisfied 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No 17% % customer satisfied 83%

Interpretation:-As we can see from table 83% customer are satisfied

with overall completion of contract By CGL. But there is 17% who are saying no, so CGL should look for this customers so that they are not lost.

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DEALER DATA ANALYSIS AND INTERPRETATION

(1) To study market share & growth rate of Alternators :2006-2007 VALUE Company Name CGL KEC TRIDENT STAMFORD OTHERS Total S (Units) 934 597 75 493 1400 3499 % Market Share 26.69% 17.06% 2.14% 14.08% 40.01% 2007-2008 VALUES (Units) 1068 725 55 542 1500 3890 % Market Share 27.45% 18.63% 1.41% 13.93% 38.56% 2008-2009 VALUE S (Units) 1400 519 90 632 1685 4326 % Market Share 32.36% 11.99%1 2.08% 14.61% 38.95%

(6.2) Dealer wise sales in terms of units From above table it can be seen that CGL, Stamford, KEC have good market share even at dealer level also. It is seen that KEC market share has decreased by 7% in 2008-09, whereas CGL has gain significant 5% share in the market. Thus we can say that CGL has grabbed the KEC customers. It is also seen that the other market share is very large at dealer level (Almost 40%), which majorly includes portable dealers. Thus Portable Genset market is very strong at dealer level. And all other major players are doing well..

46

Market Share in 2006-07

27% 40%

CGL KEC TRIDENT STAMFORD

14%

2%

17%

OTHERS

Market Share in 2007-08

27% 39%

CGL KEC TRIDENT STAMFORD

14%

1%

19%

OTHERS

47

Market Share in 2008-09

39%

32%

CGL KEC TRIDENT STAMFORD

15%

2%

12%

OTHERS

Interpretation :From above graph we can see that market of dealer is growing at a speed of 11%, whereas, others are below market growth rate so definitely there is tremendous opportunity in this sector. Major OEM players like CGL, KEC, Stamford can target the other segment which mainly include the portable size gensets like Honda.

(2) Brand of alternators used by dealers :For this 76 frequencies were noted. Out of which 22 were dealing with Stamford 15 with CG, 3 with trident 4 with LS 20 with KEC and 12 with others which majorly includes portable gensets. The graph of this is shown below.

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Alternators used by Dealers

16%

29%

Stamford CG Trident LS

26% 5% 4% 20%

KEC Others

Interpretation :It is hereby noted that good no of dealers are dealing with Stamford and KEC, but still CG is having more market share than both of these brands. Reason being definitely the quantity sold by them. Others percentage is less than major players which shows that less quantity of dealers deal in portables but they sell high.

(3) Range of alternators used by dealers :For this 110 frequencies were noted. Out of which 45 were dealing with alternators up to 50 KVA 30 were dealing with alternators ranging from 62.5 to 125 KVA 25 were dealing with alternators ranging from 140 to 250 KVA 22 were dealing with alternators ranging from 275 to 625 KVA And 18 were dealing with alternators above 625 KVA. The graph is shown below.

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Range of Alternators

13% 16%

32%

Upto 50KVA Upto 125 KVA Upto 250 KVA Upto 625 KVA

18%

21%

Above 625 KVA

Interpretation :Graph shows that more no. of dealers are dealing with alternators up to 50 KVA, whereas all other ranges except above 625 are comparative. Above 625 range is handled by less no. of dealers.

(4). To study importance of various influencing factors while making buying decision for Dealers. (5= Very Important, 4=Important, 3=Neutral, 2= Not Important, 1= Not at all Important) BRAND: To study Brand Affecting Purchase Decision of Dealer. In all 49 dealers replied to this question 26 customers replied Brand is very Important in Purchase Decision . 19 customer replied Brand is Important in P.D.

50

5 customer replied Brand is Neutral in P.D. Whereas only 2 people replied Brand is not so important in P.D. Whereas no customer denied that brand is not at all important in P.D.

Brand affecting P.D.of dealer

30 25 No. of people 20 15 10 5 0 1 0 1 2 2 2 3 5 4 5 19 Ratings of brand No. of people 26

3 Rating of brand

Interpretation :From the above graph it is evident that building a brand in customer mind is very important to most of the people, whereas some may look for other featues. PRICE:To study Price Affecting Purchase Decision of Dealers. In all 49 dealers replied to this question. 30 customers replied price is very Important in Purchase Decision 17 customers replied price is Important in Purchase Decision Only 2 were neutral, and no customer denied the importance.

51

Price affecting P.D. of Dealer

35 No. Of People 30 25 20 15 10 5 0 1 1 0 2 2 0 3 2 3 Rating of Price 4 5 17 Rating of Price No. Of People 30

Interpretation :From above graph it is evident that dealer do look for price as it affects their profitability, so price is the important factor in dealers market.

PRODUCT FEATURES:To study Product features affecting Purchase Decision of Dealers. In all 49 dealers replied to this question. 28 customers replied product features is very Important in Purchase Decision 19 customers replied product features is Important in Purchase Decision Only 2 were neutral, and no customer denied the importance.

52

Product features affecting P.D.

30 25 No. of People 20 15 10 5 0 1 0 1 2 0 3 2 3 4 5 19 Rating of Product feature No. Of People 28

Rating of Product Features

Interpretation :This clearly shows that though dealers are looking for profitability, they cannot ignore the product features at the cost of more profitability even in dealers market.

Delivery:To study Delivery Affecting Purchase Decision of OEMs Customer. In all 49 dealers replied to this question. 22 customers replied Delivery is very Important in Purchase Decision 17 customers replied Delivery is Important in Purchase Decision 10 customers replied Delivery plays Neutral role in Purchase Decision Whereas no customer denied the importance.

53

Delivery affecting P.D.

25 20 No. of people 15 10 5 0 1 0 1 2 2 3 0 3 4 5 10 4 5 17 Rating of delivery No. Of people 22

Rating of delivery

Interpretation :As no customer denied the importance it is evident that delivery is and important factor in purchase decision of dealers.

(5) Inquiries generated from different industries :We find out that from where the dealers get maximum inquiries for alternators. We consider the major segments who use gensets like telecom, hospitals and retail. In all we got 132 reply with different industries. Many dealers were getting inquiries from more than 2/3 industries.The graph shows values and different percentage of inquiries from different industries.

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No. of inquiries from industries

14, 11%

7, 5%

41, 31%

Telecoms Hospitals Retail Government

39, 30% 31, 23%

Others

Interpretation :We can say that telecom and retail industries are more interested in dealer level, as compared to hospital. Reason may be the less use of gensets in hospital industry. So the company may appoint some more dealer to track these market.

(6) Past experience with CGL :Out of all 49 customer 22 were past or current customer of CGL, whereas 22 have not deal with CGL at all. This is shown below.

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Past experience with CG L

22, 45% 27, 55%

Yes N o

Interpretation :The presence of CGL with 45% of dealers shows good penetration of CGL in dealer market also, whereas still there is 55% of customer who can be trapped.

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CHAPTER 7 FINDINGS

57

FINIDING:1. Alternators market size is very large and continuously growing, at an average growth of 20%. Presently total Alternator market size in Pune among OEMs is around 77,000 units, which counts to be 230 Cr in value. Crompton Greaves market share regarding overall sales of Alternator considering all market segments has increased from 31% to 38% from year 2007/08 to 2008/09. And 10% growth rate expected in year 2009/10 which will take market share to 40%.

2. Alternator market size dealer market is also considerably affecting the market, which counts to be approximately 4400 units. This counts to be 10 Cr in value.

3. In dealers market considerable market size is occupied by portable gensets, so this can be the future target of major OEM players. Dealers market is also growing at considerable 11%, whereas CGL is growing at 5% in dealers market.

4. CGL, Stamford, Trident and KEC are major players in Alternators both in OEM and dealer market.

5. CGL is able to produce customer satisfaction among both OEM and dealer customer.

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CHAPTER 8
CONCLUSION

59

CONCLUSION:SWOT ANALYSIS STRENGTH 1. WELL KNOWN BRAND 2. WELL ESTABLISHED NETWORK 3. WIDE AND SUPPORTIVE DEALERS NETWORK 4. GOOD MARKET SHARE 5. GROWING AT CONSIDERABLE RATE WEAKNESS 1. NOT SO STRONG IN DEALERS MARKET 2. BRAND ASSOCIATION ATTRIBUTE LESS AMONG CUSTOMERS 3. SOMEWHAT PRICE BASED MARKETING OPPORTUNITY 1. OPPORTUNITY IN DEALERS AS WELL AS OEM MARKET TO INCREASE MARKET SHARE. 2. OPPORTUNITY TO ENTER IN SMALL RANGE ALTERNATORS. THREAT 1. WHAT IS BEING CONTEMPLATED BY CG, CAN BE TAKEN UP BY THE COMPETITORS 2. THREAT FROM STRONG COMPETITOR LIKE STAMFORD.

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CGL having the measure percentage share of around 38% in Alternators market . CGL has managed to make its place at First position . But still Crompton greaves marketing strategies and advanced technological development regarding Alternator can take the company higher with the market share of 45% in forthcoming year. CGL has proved itself very strong on the front of a. Brand name b. Advertisement c. Availability and delivery of the product PRODUCT Crompton Greaves Ltd. (CG) seems to be scoring good on the attribute of past experience. This clearly indicates that CG may not either original supplier but still accepted as a performing product. The fact that brand recall for CG is on a higher side reinforces this. It also indicates that CG marketing team is very proficient at timely recognizing customers need and executing commercial negotiations. This can be confirmed in the light of CGs position of a market leader. PHYSICAL DISTRIBUTION Yet another forte of CG.CG is seen very favorable in terms of delivery i.e. , logistics and service network. This indicates one large issue fulfillment of commitments for keeping customers happy and satisfied. In fact CG enjoys leadership status on these issues. PROMOTIONS This entails two attributes namely advertising and information dissemination. And these indeed are the aching nerves. Off these, advertising is still okay- as none of the competitors is enjoying a great recall on this attribute. Information about product seems to be missing with

61

the customers. Low scores accomplished by CG on product features and product information amply prove this. DERIVATIVE CG is able to sell its wares on the virtues of being an old company and its ability to negotiate well with the customer supported by an established product. This narrows down the focus to the procedure called selling and not marketing. This strategy has been very successful in the past would keep on giving rewards for another 4-5 years or so

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CHAPTER 9 RECOMMENDATIONS

63

RECOMMENDATIONS: 1. Marketing communication with the consultants, OEMs and dealers. 2. CGL should make a thorough and timely communication with OEMs, dealers and consultants. It will help analyzing the market position, current trends and latest technologies in Alternators. 3. Promotional StrategiesI. Producing Technical literature II. Product Approval From Consultants/OEMs. 4. Minimizing the sales lead time . 5. Minimizing the manufacturing time to improve availability and delivery standards 6. Determining seasonal Purchasing behavior of the end users. 7. Providing the best after sales service and Schemes like free maintenance for specific time period after purchase. 8. Service should be on time. 9. We have to come in low range also means below 5 kva there is also a demand of this range, particular in commercial sector .

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CHAPTER 10 BIBLIOGRAPHY

65

Books: 1. Super Brands. 2. Company Product manual. 3. Company Profile Broucher. 4. Research Methodology C.P Kothari .

Websites: 1. www.cgonline.com 2. www.cromptongreaves.com

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ANNEXURE CUSTOMER FEEDBACK FORM FOR OEMS

Personal Details Name of the Organization: ..................................... Contact Person: ...................................................... Designation: ......................................................... Contact No. .................. Email Id. ...................

Address: ............................................................ .............................................................. 1. Which brand of alternator are you using? CG Stamford Trident LS KEC Others(................)

2. What KVA alternator are you using presently?

Up to 50 KVA

62.5 KVA TO 125 KVA

140 KVA to 250 KVA

275 KVA to 625 KVA

625 KVA AND ABOVE

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3.

DECISION MAKERS

Production Name Designation Mobile Contact time

Purchase

R&D

Maintenance

Finance

4.

ALTERNATORS PURCHASED IN THE LAST THREE YEARS

Make Type ALTERNA TORS

YEAR

STAMFORD

KEC

CGL

TRIDENT

LS

2006 2007 2008 FACTORS AFFECTING PURCHASE DECISION-

5.

[(5=Very Important, 4=Important, 3=Neutral, 2= Not Important, 1= Not at all Important)] Brand Price Product Features Service Network Advertising Original/Existing Equipment Make Past Experience Delivery Availability Dealer Network Availability Of Information Consultants Recommendation

6.

BRAND ASSOCIATION ATTRIBUTES

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[Following are given some attributes. You are requested to recall two top-of-the-mind brands best associated with these attributes] a. Brand b. Availability c. Product Features d. Dealer network e. Service network f. Delivery g. Past Experience h. Advertising I. Product Information 1) ________ 1) ________ 1) ________ 1) ________ 1) ________ 1) ________ 1) ________ 1) ________ 1) ________ 2)________ 2)________ 2)________ 2)________ 2)________ 2)________ 2)________ 2)________ 2)________

7. Rate Crompton Greaves Ltd. alternator on the following factors? Compare to? Stamford Trident LS KEC

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1 Product Quality Brand Visibility Range of Products Customer Relationship

(1- Excellent, 2- Very good, 3- Good, 4- Average, 5- Poor)

8.

Are you satisfied with following features alternator? Yes

-

No

If no pl. comment

Paint Finish Aesthetics

Packing

9.

What do you think about the current Pre sale support offered to you by CGL and

what change do you expect ? . ......................................................................................................................................

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Rate CG alternator as per the fulfilment your expectations?

Very good

Good

Average

Poor

10. What do you think about the current Post purchase services offered to you by CGL and what changes do you expect? ........................................................................................................................................ Rate CG alternator as per the fulfilment your expectations?

Very good

Good

Average

Poor

11. Are you satisfied with Response for product modification & development? Yes Reason/Suggestions: .................................................................... No

12. Are you satisfied with overall completion of Contracts by CG?

Yes

No

Reason/Suggestions: ................................................................... 13. How do you rate CG on initial pricing?

Very good

Good

Average

Poor

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14. Do You get post purchase service of alternator in time? Yes No If no pl. comment

15. What kind of complaints do you often face with CGL alternators? ...................................................................... 16. Do you have any suggestions? ................................................................................................................................... .

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CUSTOMER FEEDBACK FORM FOR DEALERS

Personal Details Name of the Organization: ..................................... Contact Person: ...................................................... Designation: ......................................................... Contact No. .................. Email Id. ...................

Address: ............................................................ ............................................................. 1. Which brand of alternator are you using? CG Stamford Trident LS KEC Others(................)

2. What KVA alternator are you using presently?

Up to 50 KVA

62.5 KVA TO 125 KVA

140 KVA to 250 KVA

275 KVA to 625 KVA 3.

625 KVA AND ABOVE

ALTERNATORS PURCHASED IN THE LAST THREE YEARS

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Make Type

YEAR

STAMFORD

KEC

CGL

TRIDENT

LS

ALTERNA 2006 TORS 2007 2008

4.. Which company alternator you are coupled with? 5. FACTORS AFFECTING PURCHASE DECISION[(5=Very Important, 4=Important, 3=Neutral, 2= Not Important, 1= Not at all Important)] Brand Price Product Features Service Network Advertising Original/Existing Equipment Make Past Experience Delivery Availability Dealer Network Availability Of Information Consultants Recommendation

6.. Are you satisfied with current company alternator? Yes No. If no comment

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7. From where you get the inquiries of alternators? Telecom Hospitals Retail Govt. Others

8.. Have you any past experience with CGL in alternators ? Yes No

If Yes then respond.

Good

Bad

Average

8. Why have you not purchased CGL alternators?

Quality

Price

Others

9. Any Suggestion and comments.

LIST OF MAJOR OEMS 1) Greaves Cotton 2) Veena Industries Pvt. Ltd. 3) Tafe Motors(Eicher) 75

4) Ashok Leyland 5) Mahindra 6) Kala Gensets 7) KEC 8) Cummins Diesel Sales & service Ltd/ Newage Electrical. 9) Shree Diesel Services 10) Accurate Power Systems 11) Aryan Diesel Tech. Pvt. Ltd. 12) Avish Aviation equipment Pvt. Ltd. 13) Ador Welding Ltd. 14) Gmmco Ltd. 15) Chetan Engineers

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