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J. REYNOLDS & Co.

A project on the study of marketing of musical instruments and consumer behaviour.

Name : Vanlal Rohlua Roll No.: 196 B.Com sem VI (Marketing)

CONTENTS
Topic
Page No.

i.

Acknowledgement Introduction
- Marketing of musical instruments - Consumer behaviour

ii.

5 10

iii. Company profile -Products & services available at Reynolds


- Organisational structures -Competitors - Overview of business performance 20 33 34 37
42 43

iv. Objectives v. Research and Methodology


- Primary data

Secondary data
46 59 63

vi. Analysis vii. Findings

viii. Conclusion

ACKNOWLEDGEMENT
This Project on Marketing of Musical instruments and consumer behaviour has been a good experience to me in terms of learning as well as my ability to cope up with project work and Presentation in the future course of study. I would like to thank Rev. Fr. Felix Raj who introduced to us the concept of Project work as well I would like to thank my internal and project guide Prof. Anulekha Banerji who helped me in every step during my project work and internship always patiently explaining to me different steps of my project work . Last but not the least I want to thank Prof. Tridib Sengupta, head of the management dept. and all the college professors and the staff of J. Reynolds & Co. for helping me in my internship and providing me with valuable information that helped me to do my project work at ease. I would also like to thank Rev. Fr. Dominic Savio , viceprincipal of B.com and BBA Department who was always there at my side to assist me when need arise.

Date: (VANLAL ROHLUA)

MARKETING OF MUSICAL INSTRUMENTS


Marketing of musical instruments in India is a challenging task even though the population is large in number. It needs a dedication and self interest, especially in western and modern musical instruments. Retailing musical instruments is a fantastic business venture for the musically inclined entrepreneur who's seeking a way to capitalize on their skills and interests. Ideally, this type of specialty retailing is best suited to a retail storefront. Marketing of musical instruments includes selling, promotion, distribution and services to customers. So, to excel in marketing of musical instruments, let us first find out what is marketing ?

Marketing is defined by the American Marketing Association (AMA) as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing is a product or service selling related overall activities. The term developed from an original meaning which referred literally to going to a market to buy or sell goods or services. Seen from a systems point of view, sales process engineering marketing is "a set of processes that are interconnected and interdependent with other functions, whose methods can be improved using a variety of relatively new approaches."

Marketing is the process of performing market research, selling products and/or services to customers and promoting them via advertising to further enhance sales. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. It is used to identify the customer, to satisfy the customer, and to keep the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable.

The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.

Selling is offering to exchange something of value for something else. The something of value being offered may be tangible or intangible. The something else, usually money, is most often seen by the seller as being of equal or greater value than that being offered for sale. Another person or organization expressing an interest in acquiring the offered thing of value is referred to as a potential buyer, prospective customer or prospect. Buying and selling are understood to be two sides of the same "coin" or transaction. Both seller and buyer engage is in a process of negotiation to consummate the exchange of values. The exchange, or selling, process has implied rules and identifiable stages. It is implied that the selling process will proceed fairly and ethically so that the parties end up nearly equally rewarded. The stages of selling, and buying, involve getting acquainted, assessing each partys need for the others item of value, and determining if the values to be exchanged are equivalent or nearly so, or, in buyer's terms, "worth the price.

The relationship between Selling and Marketing : Marketing and sales differ greatly, but have the same goal. Marketing improves the selling environment and plays a very important role in sales. If the marketing department generates a list of potential customers, that can benefit sales. A marketing department in an organization has the goal increasing the number of interactions between potential customers and the organization. Achieving this goal may involve the sales team using promotional techniques such as advertising, sales promotion, publicity, and public relations, creating new sales channels, or creating new products (new product development), among other things. It can also include bringing the potential customer to visit the organization's website(s) for more information, or to contact the organization for more information, or to interact with the organization via social media such as Twitter, Facebook and blogs. The relatively new field of sales process engineering views "sales" as the output of a larger system, not just as the output of one department. The larger system includes many functional areas within an organization. From this perspective, "sales" and "marketing" (among others, such as "customer service") label for a number of processes whose inputs and outputs supply one another to varying degrees. In this context, improving an "output" (such as sales) involves studying and improving the broader sales process, as in any system, since the component functional areas interact and are interdependent. Most large corporations structure their marketing departments in a similar fashion to sales departments and the managers of these teams must coordinate efforts in order to drive profits and business success. For example, an "inbound" focused campaign seeks to drive more customers
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"through the door", giving the sales department a better chance of selling their product to the consumer. A good marketing program would address any potential downsides as well. The sales department would aim to improve the interaction between the customer and the sales facility or mechanism (example, web site) and/or salesperson. Sales management would break down the selling process and then increase the effectiveness of the discrete processes as well as the interaction between processes. For example, in many out-bound sales environments, the typical process includes out-bound calling, the sales pitch, handling objections, opportunity identification, and the close. Each step of the process has sales-related issues, skills, and training needs, as well as marketing solutions to improve each discrete step, as well as the whole process. J. Reynolds & Co. has been doing well in marketing of musical instruments of different world leading brands. Musical instruments mainly includes guitars, keyboards, synthesizers, drums, pianos and pads. Apart from these musical instruments, almost all types of accessories are available. Marketing of musical instruments needs a lot of knowledge about the instruments, apart from the marketing knowledge alone.

CONSUMER BEHAVIOUR
The consumer buying process is a complex matter as many internal and external factors have an impact on the buying decisions of the consumer. It is first important to understand their buying behaviour . Consumer behaviour can be defined as all psychological, social and physical behaviour of all potential consumers as they become aware to evaluate, purchase, consume and tell others about products and services. Consumer behaviour is inter-disciplinary in nature. It may also be defined as the decision process and physical activity individuals engage in when evaluating, acquiring or disposing of goods and services. It is the study of in individuals, groups or organizations and the processes they use to select, secure and dispose of products, services experiences or ideas to satisfy needs and the impacts that these processes have in the consumer and society. It is the action of customers in the market place and the underline motives for these actions. Depending on a consumer's culture, subculture, and/or social class, an individual will purchase a particular brand that is popular amongst his/her peers. A consumer's social group has a drastic impact on which product they will purchase. For example, if Joe's mother has been using Tide detergent all of his life, he is very likely to use the same.

Age, life-cycle stage, occupation, economic circumstances, lifestyle, and personality are all personal characteristics that will influence the buyer's behaviour.

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Consumers buying behaviour is influenced by cultural, social, personal and psychological factors.

Cultural Factors: - culture, subculture and social classes are particularly important in buying behaviour. Culture is the fundamental determinant of a persons wants and behaviour. Each culture consists of smaller subcultures that provide more specific identification and socialization of its members. Subculture includes nationalities, religions, racial groups and geographic regions.

Social Factors: - In addition to cultural factors a consumers behaviour is influenced by such social factors as reference groups, family and social roles and statuses. A persons reference group consists of all the groups that have a direct (face to face) or indirect influence on the persons attitudes or behaviour. Groups that have direct influence on a person are called as membership groups. Some membership groups are also called as primary groups, such as family, friends, neighbours and co-workers with whom the person interacts fairly continuously and informally. People also belong to secondary groups such as religious, professional and trade union groups which tend to be more formal and require less continuous interaction. Inspirational groups are those a person hopes to join; dissociative groups are those whose values and behaviour an individual rejects. The family is the most important consumer buying organization in society, and family members constitute the most influential primary reference group. A person participates in many groups-families, clubs, organizations. The peoples position in each group can be defined in terms
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of role and status. A role consists of the activities a person is expected to perform. Each role carries a status.

Personal Factors: - A buyers decisions are also influenced by personal characteristics. These include the buyers age in the life cycle, occupation, economic circumstances, lifestyle and personality and self concept. People buy different goods and services over a lifetime. They eat baby food in the early years, most foods in the growing matured years and special diet in the later years. Occupation also influences consumption patterns. A blue collar worker may buy work clothes, work shoes and lunch boxes. A company president may buy expensive suits, air travel and country club membership. People from same subculture, social classes and occupation may lead quite different lifestyles. A lifestyle is a persons pattern of living in the world expressed in activities, interest and opinions.

Psychological Factors: - A persons buying choices are influenced by four major factors viz. motivation, perception, learning, believes and attitudes. In the light of growing competition in the Indian retail industry each and every company is trying its best to attract new customers as well as at the same time retain the existing customers. Hence this can be done by keeping a track on the buying behaviour of the customers. Therefore my topic on buying behaviour of consumer shows the different factors which influence the consumer buying behaviour while shopping.

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Need of Consumer Behaviour

Consumers do not act as theory would suggest, so it is important to study and understand their behaviour for a particular market. Changing preferences of consumers. Differentiated products reflect their special needs, lifestyle and personality. Meeting of special needs of customers required market segmentation. Introduction of new products with rapid change in technology.

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BUYING DECISION PROCESS:


PROBLEM RECOGNITION The buying process starts when the buyer recognizes a problem or need by gathering information from a number of consumers, marketers can identify the most frequent stimuli that spark an interest in a product category.

INFORMATION SEARCH Consumer information sources fall into four groups:

Personal sources: Family, friends, neighbours, and acquaintances Commercial sources: Advertising, salespersons, dealers, packaging, displays Public sources: Mass media, consumer -rating organizations Experimental sources: Handling, examining, using the product

EVALUATION OF ALTERNATIVES There are several decision evaluation processes; first the consumer is trying to satisfy a need. Second, the consumer is looking for certain benefits from the product solution. Third, the consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits sought to satisfy this need.

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PURCHASE DECISION However, two factors can intervene between the purchase intention and the purchase decision. The first factor is the attitude of others. The second factor is unanticipated situational factors that may erupt to change the purchase intention. A consumers decision to modify, postpone, or avoid a purchase decision is heavily influenced by perceived risk.

POST PURCHASE BEHAVIOUR Marketers must monitor post purchase satisfaction, post purchase actions and post purchase product uses.

POST PURCHASE SATISFACTION: the importance of post purchase satisfaction suggests that product claims must truthfully represent the products likely performance.

POST PURCHASE ACTIONS: satisfaction or dissatisfaction with the product will influence consumers subsequent behavior. If the consumer is satisfied, he or she will exhibit a higher probability of purchasing the product again. Dissatisfied customers may abandon or return the product.

POST PURCHASE USE AND DISPOSAL: Marketers should also monitor how buyers use and dispose of the product. If consumers store the product in a closet, the product is probably not very satisfying. If they sell or trade the product, new-product sales will be depressed. Consumers may also find new uses for the product.

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Need to understand:

Why consumers make the purchases that they make? What factors influence consumer purchases? The changing factors in our society.

Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. A firm needs to analyze buying behaviour for:

Buyers reactions to a firms marketing strategy has a great impact on the firms success.

The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

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COMPANY PROFILE

J. Reynolds & Company, situated in 15 Mirza Ghalib Street, Near Fire Brigade HQ Kolkata, West Bengal 700016. Reynolds is a third generation family business established over 100 years ago in Kolkata. Today the businesses are also located in Goa, Bangalore and Shillong. From a humble beginning with Pianos, the business expanded to encompass violins, mandolins, piano accordions, recorders and finally the guitar. John Remedios with his brother Jonas trained under Luthiers in Germany "Karl Hofner" and "Matt Hohner" and thereafter started production of the guitar in Kolkata. Johns' three sons Felix, Leslie & Peter joined the business in 1979 and there was no looking back.

Felix started operations in Bangalore and expanded into rentals of sound, lights, Audiovisuals, trussing, Lasers and LED screens. He is today the best in India and has been responsible for numerous world famous acts like Bryan Adams, Deep Purple, Enrique, Beyonce, Black eyed Peas, Mark Knoffler, INXS , Firehouse, Iron Maiden, A.R Ra hman etc..
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Leslie moved full circle to Indias seaside paradise GOA in 1989 and after a stint with musical instruments graduated into the futuristic business of themes, decor, sets inc luding stages, lights, sound, AV and complete event solutions. Further monopolising on his family s creativity he has expanded into weddings concepts & creations. His disp lay centres in Goa and his professional approach has made him the Country s leading event, decor and wedding solution provider. Peter continued to keep the Calcutta flag flying high and Reynolds + Music still rocks the Nation. Reynolds and its involvement in the music industry in India since 1908 have kept many an audience spellbound. Having pioneered guitar making in the Country and provided world class equipment to musicians, this third generation family business continues to grow from strength to strength. Reynolds is a family business which lead the country in musical instruments marketing and its related products and services. It is the manufacturer of Reynolds guitars and certified dealer of all Roland products, Yamaha and is also a retailer of other musical instruments and processors, effects, speakers, etc..

Reynolds mostly deals with Roland, one of the world leading producer and marketing of electronic musical instruments and devices. Trusted brand and product line-up was developed through state-of-the-art technologies and unfettered ideas.

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Based on technologies that have developed over the years as the top brand in electronic musical instruments, Reynolds continues to expand its business domain through a "multi-brand strategy" which encompasses well-known brands such as Reynolds, "Roland" and "BOSS." The products which are available at Reynolds are mainly purchased directly from manufacturers which is generally the best price but higher minimum orders.

Vision and Mission


MUSIC, MUSIC AND MORE MUSIC...The show must go on !! and we at Reynolds ensure our customers complete satisfaction.

This is what drives the company and which make it one of the best musical instruments dealer in the country.

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PRODUCTS & SERVICES


PRODUCTS ON SALE Portable electronic keyboard synthesizers from Roland, Yamaha & Casio Accoustic Pianos 88 kets 3 pedals from "Ritter" Drumsets from "Basix" "Yamaha" "GB&A" "Sonor" " Tama" Guitars - "AXL", "Jackson", "CORT" , "Fender", "GB&A", IBANEZ", "Jackson", "J&D", "YAMAHA" Effect Processors - "ZOOM", "BOSS", "DOD", "Korg", "Digitech" Amplifiers - "Hartke", "Behringer", Fender", "VOX", "Marshall" Percussions, Drumsticks & Cymbals - "African", "Paiste", "TOCA", "Remo", "Vicfirth" ROLAND - Entire electronic range All musical instruments accessories

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RENTAL OF AUDIOVISUALS
Pro Audio systems including speakers, amplifiers, mixers, mics, monitors, as well as stage lighting like PAR cans, scanners & moving heads + effects like smoke and lasers, conferencing & banqueting services with laptops, podium mics, projectors upto 5000 ansilumens, screens upto 16x12, matrix switchers, and all related products.

EVENT MANAGEMENT
Artist / Celebrity / Talent / Production

Conceptualizing, planning and execution of any event, be it a Corporate affair, Product Launch, Road shows, Awards & felicitations, music & entertainment, Fashion show, theme nights, artist management or Weddings. Coordination of all vendors like decorators, Barmen, entertainers, performers, sound & lights, photography, vehicles, florists, caterers amongst others is our forte.

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SOME OF THE ESTEEMED CLIENTS


The Oberoi Grand Hotel The Taj group Royal Calcutta Golf Club CCFC Fountainhead Percept D Mark Tiger Sports Marketing Mcleod Russell Ltd. FICCI Bajaj allianz Metaljunction Fort Radisson Network 21

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Important products available at Reynolds


Since Reynolds is also a dealer of Roland and Yamaha it is important for them to highlight those products available with them. Roland is an important part of Reynolds because it constitute the highest number of products available at Reynolds. Yamaha and Casio are also important as most of the Keyboards and Synthesizers are Yamaha and Casio.

From the dawning of the era of electronic musical instruments, Roland has led the global music scene through releases of many innovative products based on the original, world's first or Japan's first technologies. Roland has now grown into a comprehensive brand covering audio and video to bring joy of making music and video into our life, from the living room to live concert stages. BOSS is a brand that realizes the dreams of guitarists, from beginners to pros, with a broad line-up of products ranging from guitar effects based on state-of-the-art digital technology to digital recorders that allow users to produce pro-quality music.

World standard from the very beginning

Envisioning the future. Creating moving sounds. This is the Roland spirit.
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"Roland" was known as the name of a medieval European hero, and the reason this name was used as the company's name was that these two syllables were pleasant to the ear and could be pronounced in the same way in any language in the world. Ever since 1972, when the company was founded by the first president Ikutaro Kakehashi (presently special consultant), they have been true to the starting point, which is their commitment to "experimentations for creating simulative sounds," and have continued to be driven by their pursuit of "sounds that are comfortable to the human ear." They have eventually found the material for creating "good and expressive sounds" in the form of silicon chips. By leveraging this state-of-the-art technology that has been enabled through modern science, they have been able to establish a unique position in the world of electronic musical instruments.

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Roland's Corporate Slogans - Inspire the Enjoyment of Creativity - Be the BEST rather than the BIGGEST - The Roland Family - Cooperative Enthusiasm The entire range of Rolands electronics is available at Reynolds.

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Today, Yamaha is a leader in businesses ranging from musical instruments and audio & video products to information technology products, new media services, home furnishings, auto components, specialty metals, music education and resort facilities. Yet, true to their musical origins, no matter what business they take on -- or what country they do business in -- they seek to remain perfectly attuned to a set of common values that define the world of Yamaha Yamaha Music India, part of Yamaha worldwide group, is established with its clear vision to promote and develop the market of Musical instruments, Pro-Audio and Audio-video products in India.

With its clear leadership in the Musical instruments market worldwide, Yamaha Music aims to be the most preferred brand for artists, music lovers and aspiring musicians in India. Reynolds have been selling the products of Yamaha which mainly includes digital keyboards and Synthesizers and guitars.

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Products of Yamaha available at Reynolds are :PORTABLE KEYBOARDS


Creative players of all ages - from the very young to the young at heart - will enjoy making their own music on these high - quality keyboards, with a wide range of exceptionally natural, realistic sounds and powerful auto accompaniment features.

ARRANGER WORKSTATIONS
Yamahas range of Arranger Workstation keyboards are packed with hundreds of great sounds using the unique Advanced Wave Memory (AWM) tone generation system. In addition there is a comprehensive range of performance features for every type of player.

Different models of Portable Keyboards and Arranger Workstations are available at Reynolds.

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GUITARS
Reynolds have many of the best selected brands of Guitars like Ibanez, Fender, Cort, AXL, Jackson, GB&A, J&D, Peavey, Clayton, Yamaha and their own brand, Reynolds. These guitars include Electrical, Acoustic and Classical. Some of the important and leading brands of guitars are marketed by Reynolds are given below

Ibanez is a Japanese guitar brand owned by Hoshino Gakki. Based in Nagoya, Aichi, Japan, Hoshino Gakki were one of the first Japanese musical instrument companies to gain a significant foothold in import guitar sales in the United States and Europe, as well as the first brand of guitars to mass produce the Seven-string guitar. It is one of the worlds leading brand of guitar, it is used by many of the international artiste famous guitarist like, Joe Satriani, Steve Vai, Paul Gilbert, Mick Thompson and many more.

Joe Satriani's choice

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The Jackson bloodline began back in the late 1970s, when heavy music experienced a flamboyant and virtuosic resurgence in popularity and a small Southern California guitar repair shop became the epicenter of a new level of shred-approved excellence. Ever since then, Jackson guitars have been universally lauded as the metal guitars; the shred machines, highly-original, high-performance instruments of distinctive style and formidable substance. From metals chart-topping peaks to its darkest recesses, for discerning guitarists all over the globe, Jackson is the only way to go. Recent years have seen the Jackson bloodline continue to flourish, with all of the companys most famous modelscustom and production series alikeenjoying great success. Jackson signature instruments have also come into their own, with magnificent models bearing top metal names such as Phil Collen (Def Leppard), Mark Morton and John Campbell (Lamb of God), Phil Demmel (Machine Head), Chris Beattie (Hatebreed), Adrian Smith (Iron Maiden), Matt Tuck (Bullet For My Valentine) and others. Furthermore, the Jackson Custom Shop remains the longest-operating true custom shop in the United States, with many members of its original staff still working there and doing what they do bestproviding axe-wielding metallurgists worldwide with world-class high-performance instruments that have no equal.

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Iconic Fender instruments such as the Telecaster, Stratocaster, Precision Bass and Jazz Bass guitars are known worldwide as the instruments that started the rock revolution, and they continue to be highly prized by todays musicians and collectors. With an illustrious history dating back to 1946, Fender has touched and transformed music worldwide and in nearly every genre: rock n roll, country and western, jazz, rhythm and blues and many others. Everyone from beginners and hobbyists to the worlds most acclaimed artists and performers have used Fender instruments and amps, in the process making the company not only a revered music industry name, but also a cultural icon. It is our vision to continue championing THE SPIRIT OF ROCK-N-ROLL throughout the world, and our mission to exceed the expectations of music enthusiasts worldwide.

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Other famous brands of guitars available at Reynolds are :-

, PLUTO, PEAVEY,

CLAYTON
These Guitars, which are available at Reynolds are mainly of Acoustic and Classical guitar.

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PRODUCT MIX

Different brands at Reynolds


Roland 11% 7% 6% 4% 5% 11% 7% 10% 39%

Yamaha
Casio Reynold Ibanez Jackson Clayton Cort Others

( Fig. Based on the products available at show room )

Reynolds keep a good product mix of different brands. From the above diagram it is found that the largest number of products are Roland, 39% of instruments available at Reynolds are from Roland. Next comes their own brand of guitar, which holds 11% , Yamaha has 10% and other products make up the rest.

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ORGANISATIONAL STRUCTURES
Management Team
Peter Remedios Owner Chairman and Managing Director Operations manager Peters strengths are writing and carrying out sales programs, and keeping a company within its financial limitations. He has had a lifelong interest in music and plans to translate that enthusiasm, along with his management skills, into making Reynolds a successful long-term investment. Related Management Strengths:

CEO/COO level responsibility. Writing sales programs to generate and maintain consistent sales goals.

Excellent communication skills. Maintains mutually beneficial vendor relations. Ability to anticipate and adapt to changing economic conditions. Experience negotiating complex sales contracts, including financing and shipment options with large corporate clients such as Roland and Yamaha.

Mark Assistant manager Below this are the staff members in the office and sales persons in the show room.
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COMPETITORS

J. Reynolds & Co. faced competition mostly from the local market competitors. Even though there are many competitors in the market, the company gained a large portion of the market share, especially in the musical instruments and its accessories. Some of the major competitors include the following : Galaxy Digital PVT LTD S S Music Music Planet Braganza & Co Kolkata Music Center Pakrashi & Co. Roland Pro Music A part from these mentioned above, there are many local and small dealers of musical and its related instruments.

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COMPETITIVE COMPARISON
Reynolds is different from its competitors in several key areas: 1. Their three largest competitors do not carry band and orchestral instruments, one of their primary focuses.

2. They offer services to support their products, and most of their competitors sell just the products themselves.

3. Reynolds take full advantage of "name brand recognition," an element that most dealers overlook and under-advertise.

4. Reynolds capitalize on their competitors' weakness in the accessory category by keeping well-stocked. Musical instruments cannot be fully enjoyed without knowledge and experience. Unfortunately, they cannot sell these products at a higher price just because they offer repair and instructional services; the market does not support dealers who have tried this. They must offer varied services and product mixes and be competitively priced as well, in order to survive in this new economy. In addition to educating our customer base, they are committed to providing the best product value. Accessories are the highest profit center for the store and they have to expose their competitors' weakness in this area if they wish to expand market share from day one of operations. Competitors that do not stock the necessary accessories will send their customers to competing stores, from which customers may not return. It is important to keep the accessory department well-stocked to take advantage of the competitors' flaws, and avoid this pitfall ourselves.

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SERVICES AND HOME DELIVERY

J. Reynold & Co. provide quality after-sales services on all its products sold and of their services. During this period of warranty, all services are provided for free. Home delivery is given only on Pianos. They can deliver anywhere in India. Products like Pianos are given 10 years of warranty. Reynolds also accepted a special order of products from customer. A customer can placed an order of the products, custom guitars orders are also accepted. Repairing of musical instruments can also be done at Reynolds. There is an engineer and mechanics available for any repairs.

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OVERVIEW OF BUSINESS PERFORMANCE


In the consolidated fiscal year under review (April 1, 2009 to March 31, 2010), global economy saw a continuous minimization of corporate capital investment and weak individual consumption, due to the economic recession brought on by the financial crisis of the previous consolidated fiscal year. Despite some signs of a mild recovery in the second half, the future prospects remain uncertain. In terms of Electronic Musical Instruments Business, under these circumstances, the Company continued its efforts to streamline businesses with a focus on reducing costs, inventories, and the number of models. Mean while, also continued working to cultivate new demand, by marketing directly to customers through measures including shop-in-shop activities, and the Better Life with Music concept that proposes better quality of life through playing musical instruments. Although these efforts resulted in robust sales for new amplifiers for musical instruments, synthesizers, and digital pianos, sales of existing products were sluggish overall, especially in the higher price ranges. Sales in some of the products were up from the previous consolidated fiscal year, while it fell in some products because of weak consumer spending.

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Consolidated Financial highlights

Years ended March 31


2006 2007 2008 2009 2010

Net sales

892,70,0

952,59,0

985,60,0

945,06,0

855,03,4

Gross profit

385,00,0

408,60,0

479,40,0

427,96,0

345,66,0

Operating income

837,40

984,20

133,33

743,00

813,0

Ordinary income

900,40

984,55

99,90,0

605,00

541,0

Net income

320,80

370,10

362,10

104,70

209,00

Net assets

535,24

733,31

786,89

714,99

712,77

Total assets

817,38

931,16

986,92

938,86

916,75

Gross profit margin (%)

43.1

42.9

48.6

45.3

40.4

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Gross Profit margin


60

50 43.1 40 42.9

48.6 45.3 40.4

30 Gross profit margin

20

10

0 2006 2007 2008 2009 2010

Years

The above figure represent the gross profit percentages of the company for the last five years. It is shown that the gross profit has come down. Downsizing of the musical shop is one reason.

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Electronic Musical instrument Business

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THE OBJECTIVES OF THIS STUDY IS TO FIND OUT THE FOLLOWING :-

Marketing of musical instruments. The marketing strategies and position, function and management of the company. The consumer behaviour in their selection process and criteria of musical instruments.

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The methodology used for this organization study is mainly in two ways. They are:-

Primary Data Secondary Data

Primary Data: Primary data are those data which are collected first hand and thus happen to be in original character. The primary data includes the following : Questionnaires Observing Interviews with the company personnel at different levels of management. From the manager From the office staff From the workers

Secondary Data: Secondary data are those data which have already been collected from the company such as Business journals Quality manuals Annual report Magazines Newspapers

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LIMITATIONS OF THE STUDY

While surveying I encounter with some problems like A survey should involve a larger sample size otherwise the findings of the survey cannot be generalized. A larger sample size may increase the time and cost of collecting the primary data with the help of Questionnaire. Many of the respondents were not willing to fill the questionnaire. Some people were not willing to respond and few of them who responded were in hurry hence the active participation was lacking. Due to which I faced difficulties in collecting informations regarding our questionnaire. Another problem which I face was that people were hesitating to give information about their views freely. Official data of financial performance of the company cannot be retrieved as the company cannot disclose their actual financial performance. The Customers response rate is very low.

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For the purpose of analysis questionnaires were prepared. The questionnaires contained 12 questions. However, the sample size of the people was 40. The response rate is very low as only 34 have responded completely. The responses so obtained for each questions has been expressed in simple percentage form.

Q.1. Buyer of musical instruments on the basis of gender


i) Male : 26 ii) Female : 6

Gender
19% Male Female

81%

Comment : The customers who response the questionnaire consist of only 19 % of female, while 81% is male. Among these female customers, most of them bought musical instrument or its related products for others.

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Q.2. Which instrument do you play ?

Instruments
12% 6% Keyboards 6% 9% 41% Drums Flute Others 26% None

Guitar

Comment: Most of the customers can play one or the other musical instruments. Among these instruments, most customers can play Guitar, which consist of 41% and next comes Keyboards/Synthesizers which consist of 26%. Surprisingly, among those customers who bought musical instrument for their own, 12% of them do not know how to play.

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Q3. What is your purpose of buying musical instrument ?

Purpose of buying musical instruments


24% 23% Musician 18% 35% Learning play Hobby For others

Comment : It is found that most of the customers who bought musical instruments are not necessarily musicians. Professional musicians is only 23% while the largest number is those who learn playing, consisting of 35%. 24% of the customers bought for themselves as they like playing. 18% of the customers bought for others as a gift.

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Q.4. Which brand of guitar do you prefer ?

Most prefered brand of Guitar


15% 20% Ibanez Fender

18%
23% 9% 15%

Jackson Cort Pluto

Others

Comment : Fender is the most preferred brand of Guitar because of its price and its quality. Ibanez is also one of the brand that attracted customers. Other guitars like Jackson, Pluto, Cort, etc. are also good brand that customers liked. But the figure shown is not necessarily what the customers purchased. It means that customers did not necessarily buy their most preferred brand.

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Q.5. Which brand of keyboard/synthesizer do you prefer ?

Most prefered brand of Keyboard


0% 21% 44% Yamaha Roland 35% Casio Others

Comment : Yamaha Keyboards and Synthesizers are the most preferred brand, which consist of 44% and Roland comes next with 35% and Casio with 21%.

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Q.6. What factor influence you to go for a particular brand ?

Factor which influence to go for a particular brand


9% 12% 6% 41% Quality Price Variety 32% Durability Others

Comment : The factor which influence the customers the most for a particular brand is the Quality, which consist of 41% and the next factor is the Price, which consist of 32%. The above figure shows that other factors also influence customers like Durability with 12%, Variety with 6% and Other factors with 9%.

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Q.7. How do you select your instrument ?

9% 12%

3%

21% Brand name Price Quality 26%

29%

Performance Appearance Others

Comment: It is found that most of the musical instruments is selected on the basis of Quality, the above figures shows that 29% choose on the basis of the quality. Price is also an important factor which consist of 26% and Brand name also plays an important role for selecting an instrument with 21%. Some of the customers, consisting 9%, selected their instrument based on the appearance irrespective of the quality and price.

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Q.8. Are you satisfied with the price ranges at Reynolds ?

15% Yes 29% 56% No Not sure

Comment : The above figure shows that 56% of the customers are satisfied with the prices of products at Reynolds, but 29% are not satisfied while 15% of the customers are not sure whether they are completely satisfied or not.

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Q.9. How often do you purchase musical instrument or its related products?

6%

12%

47% Every month


Once in 6 months 35% Once in 12 months Once in 2 years

Comment: The customers of musical instruments do not buy the products very often. Those who buy the instruments or its related products account for only 6%, and 12% of the customers buy every 6 months, 35% of them buys once in a year and the rest, 47% buys in every two years.

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Q.10. What kind of promotional tool do you prefer ?

Prefered Promotional tool


5% 30% 50%

Discount Coupons Free gift

15%

Buy one get one free

Comment: The most preferred promotional tool is Discount, which account for 50%, Free gift comes next with 30%, and coupons with 15% and 5% of the customers prefer to get one free when buying a product.

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Q.11. How would you rate J. Reynolds & Co ? please circle the applicable answer

Ratings
14% 6% 14% 1 2 40% 26% 3 4 5

Comment: 46% of the customers gave a rating of 4 out 5, while 26% gave 3 out of 5, 6% of them gave 1 rating point, 14% gave 5 out of 5 and another 14% gave 2 out of 5 rating points.

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Q.12. Are you satisfied with the products and services at Reynolds ?

Satisfied
15%

Yes No 85%

Comment: 85% of the J. Reynolds & Cos customers are satisfied with the products and services while 15% of the customers are not completely satisfied. Their dissatisfaction may be because of different reasons.

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The key findings from the analysis of data are mentioned below :
The customers of musical instruments mainly consist of men. Most of the customers of musical instruments can play one or the other musical instruments. But there are also customers who do not play any musical instruments. Fender guitars and Yamaha keyboards were most preferred brand. Other brands of musical instruments also play an important role in the marketing of musical instruments. Many factors influences customers for their criteria of selecting a particular brand like, Quality, Price, Variety and Durability. It is found that customers select their instruments on the bases like first quality, second price, third brand name, fourth performance, fifth appearance or looks and other factors. Most of the customers of musical instruments do not buy the products regularly or we can say, very often. Those customers who buys often are professional musicians and studio engineer. It is found that the customers most preferred promotional tool is giving discount.

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TECHNOLOGY
The Music Industry is currently riding a trend toward high-tech electronics in several product areas, most notably in guitar related effects and multi-track recording hard/software. Sales increases in these areas are due to the slashing of the price barrier in the home recording market, and the pace at which new products become obsolete. This high tech boom has increased the music industry market substantially. Digital keyboards are also seeing increased market share as technology becomes more accessible. These units offer families state-ofthe-art sounds and capabilities without a huge learning curve. For instance, digital piano sales are currently the fastest growing segment of the total piano market in the U.S., and sales have increased 450% over the last ten years. One downside of technological innovations is that prices in this industry are dropping sharply, lowering revenues per unit. It is therefore essential that the Musical Instrument retailer of today bundle products together as packages, to increase profits and build sales.

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RECOMMENDATIONS

J. Reynolds & Co. is one of the company that leads the market in musical instruments and services. Even though it is performing well, there is always room for improvements. The company does not undertake any promotional tool to promote their products apart from display and try-out, where the customers can try any musical instruments. Advertisement is not done for musical instruments. The company could have grab more of the market share if their shop and products are advertised and if some promotional tools were undertaken, there is a chance for expansion and increasing the profit. Reynolds is known for its guitars and quality Roland products, so it should continue to maintain its image for giving quality and music and more music.

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From the field study and data collected from different sources, it can be concluded that J. Reynolds & Co. provide people who love quality music and musical instruments at a reasonable price. The quality and authenticity stands out, with a good quality services.

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QUESTIONNAIRE

Q.1. Personal information : i) Name : _____________________________________ ii) Sex : Male Female ii) Age

Q.2. Which instrument do you play ? i) Guitar iv) Flute ii) Keyboards v) Others iii) Drums iv) None

Q.3. What is your purpose of buying musical instrument ? i) Im a musician ii) I am learning iii) Playing is my hobby iv) For others Q.4. Which brand of guitar do you prefer ? i) Ibanez iv) Cort ii) Fender v) Pluto iii) Jackson vi) Others

Q.5. Which brand of keyboard/synthesizer do you prefer ? i) Yamaha iii) Casio ii) Roland iv) Others

Q.6. What factor influence you to go for a particular brand ? i) Quality iv) Durability ii) Price v) Others
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iii) Variety

Q.7. How do you select your instrument ? i) Brand name iv) Performance ii) Price v) Appearance iii) Quality vi) Others

Q.8. Are you satisfied with the price ranges at Reynolds ? i) Yes ii) No iii) Not sure

Q.9. How often do you purchase musical instrument or its related products? i) Every month iii) Once in 12 months ii) Once in 6 months iv) Once in 2 years

Q.10. What kind of promotional tool do you prefer ? i) Discount iv) Buy one get one free Q.11. How would you rate J. Reynolds & Co ? please circle the applicable answer Very good 5 4 3 2 1 very bad ii) Coupons iii) Free gift

Q.12. Are you satisfied with the products and services at Reynolds ? i) Yes ii) No

********************************************************* Thank you for your contribution

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BIBLIOGRAPHY
Primary sources
1. Consumer Survey

Secondary sources
1. Website: www.marketing.about.com www.roland.com www.google.com info@reynoldsmusic.in 2. Reference list: Kotler Philip - Marketing management R.Kumar - Research Methodology Solomon Consumer Behaviour Rock Street Journal The Record Newspapers

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