Tata Voltas Summer Internship 2013

TITLE OF SUMMER TRAINING PROJECT
Understanding the determinants of environmentally conscious

behavior of the consumers

Submitted in partial fulfillment of the requirements for
PGDM

By

Pawandeep singh

DM1214117

Batch of 2012-2014

ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY, PLOT NO 49,

Knowledge Park 3, GREATOR NOIDA-201306 (UP)

JULY 2013

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

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

(Student's Signature)
Date: July, 2013

(Faculty Mentor's Signature)

CERTIFICATE FROM GUIDES

Date: July 2013

ACKNOWLEDGEMENT

A work is never a work of an individual. We owe a sense of gratitude to the
intelligence and co-operation of those people who had been so easy to let us
understand what we needed from time to time for completion of this exclusive
project.

We want to express our gratitude towards Prof. Vinay Jha, Marketing
Department, AIMT, Greater Noida for giving us an opportunity to do this
project.

Last but not the least, we would like to forward our gratitude to our friends
& other faculty members who always endured us and stood by us and
without whom we could not have envisaged the completion of our project.

Date: Pawandeep Singh
Rollno. DM1214193
PGDM (2012-14)

DECLARATION
I Pawandeep singh, a student of PGDM ACCURATE INSTITUTE OF
MANAGEMENT AND TECHNOLOGY. Hereby declare that this project
report entitled Understanding the determinants of environmentally conscious
behavior of the consumers Of tata voltas air conditioner is original and is the
result of my own efforts in training
It is only for the academic purpose and it has not been published or presented
anywhere else. The findings and analysis are original and are true to the best of
my knowledge.I bear full responsibility for information given in this report.

Voltas Marketing Project Report

DESCRIPTION OF CURRENT SITUATION:-

1) Company -Voltas

Voltas is among India's leading air-conditioning, refrigeration and engineering
services companies. Set up in 1954, its core competencies lie in air
conditioning and cooling appliances and services. Voltas is India's largest
supplier of engineering products and services for the textile machinery sector
and is a major manufacturer of forklift trucks. It provides solutions in turnkey
pumping projects for water, effluent and sewage treatment, and water pollution
control. The company has ISO 9001-2000 certification and has executed
projects in the Middle East, Southeast Asia, Central Asia, Africa and Europe.

The company mainly operates in the following areas:

Heating, ventilation and air-conditioning (HVAC) solutions: Includes
the entire range of mechanical, electrical and plumbing services for a
diverse range of applications, spanning office complexes, airports,
malls, mercantile ships, atomic energy plants, IT parks, hospitals, etc.

Cooling appliances: Design, manufacture and marketing of a range of
air conditioners and water coolers for household and institutional use

Engineering products and services: Design, sourcing, installation,
training, maintenance, etc of engineering products and services in the
fields of textile machinery, machine tools, mining and construction
equipment and materials handling equipment.

Chemicals: Import and distribution of an array of industrial, specialty and
pharmaceutical chemicals, industrial plastics and bulk drugs. The company also
exports gelatine, ultramarine blue and agrochemicals.


JOINT VENTURES, SUBSIDIARIES, ASSOCIATES

Voltas's subsidiaries include Metrovol FZE, VIL Overseas Enterprises BV,
Voice Antilles NV, Weathermaker, Jebel Ali (Dubai), Simto Investment
Company and Auto Aircon (India).

LOCATION

Voltas has its head office in Mumbai and regional offices in several major cities
in India. Its overseas offices are in Abu Dhabi (UAE), Hong Kong and
Singapore. The company has factories at Thane (Maharashtra) and Pantnagar
(Uttarakhand) in India


Air Conditioner Industry

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

According to some industry estimates, growth in volume terms has been 45-50
per cent this fiscal. But official statistics underestimate this and even report a
decline in production. Nevertheless, by all accounts, including a study by the
Confederation of Indian Industry (CII), there has been a noticeable jump in the
demand for air-conditioners from the household segment. After several years of
relatively modest growth, which was totally at variance with the latent potential
of the product, the sharp growth in demand the summer past was very welcome
for air-conditioner companies in many respects. One, it relatively reduced their
dependence on the corporate sector which is still the major demand driver.
Corporate traditionally accounted for about 60 per cent of the total demand for
air-conditioners. But the burgeoning demand from the household segment could
level the ratio in the near future


One of the significant factors influencing the fortunes of the industry is the taxation
structure. The industry has come a long way from the time when the excise duty
structure favored only the unorganized sector. The steady fall in the excise rate in the
1990s helped the organized sector cope with the competition from the unorganized
sector on more favorable terms. Still, the unorganized sector continues to meet a
sizeable proportion of the demand for non-ducted products.

There was a significant change in the excise duty structure in 2000. The rate was
raised from 30 per cent to 32 per cent and this was expected to adversely impact the
industry. However, the shift to a maximum retail price based system for the levy of
excise appears to have helped the manufacturers. In the MRP-based system, an
abatement of around 40 per cent was provided. This ensured that the impact of the
increase in excise was minimal if not positive. Another major fiscal change is the
removal of quantitative restrictions on imports. Imports are, however, not all that
competitive considering the Customs duty structure. An import duty of 44 per cent
along with a countervailing duty, which is equivalent to the excise duty, is a large
enough protection for the domestic companies

Growth of AC market

The demand for non-ducted products grew steadily in the latter half of the 1990s. The
demand for mini-splits has grown at a higher rate compared to window ACs because
of the lower base. The demand switch from mid-sized ducted products, such as
packaged ACs or ducted splits, to mini-splits is also one of the reasons for the larger
growth rates in the latter segment.

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


this product category has attracted in the recent past. Prices of air-conditioners
dropped sharply in the past few years because of competition. Most established
players upgraded their manufacturing facilities, while fresh capacities were created
by companies such as Matsushita (National brand). The marketing and
advertisement spend by companies has also been on the rise.
With such investments flowing into building both the product and the brand, the
expansion of the market was inevitable. As seen with other consumer durables, in
the initial years of increased intensity of competition, both existing and new
players invest more cash. This leads to a drop in prices, fuelling demand and the
result is a much larger market. And the non-ducted segment has attracted a lot of
players in the last few years. The latent long-term demand potential from Indian
households has led to a number of multinational companies making a beeline to set
up base in the country.

Major players in this product category are Carrier , Voltas and Blue Star.
Brands such as Hitachi , Llyod, Videocon and Godrej also have a sizeable
presence. Among the recent entrants, the Korean brands such as Samsung and
LG have been able to make an immediate impact. Other brands that have
positioned themselves for a share in this fast-growing market are Panasonic,
Videocon and Daikin. On a much smaller scale, Whirlpool and Electrolux have
entered the market to cater to household demand.

Initially, the entry of new players did have an adverse impact on the established
players -- especially Voltas and Carrier Aircon. The reduced sales of window ACs
by Carrier Aircon and Voltas in recent years compared to past years is testimony
to the adverse impact caused by the entry of the new brands, especially Panasonic
,Samsung and LG. However, there is a tough competition happening in market
between major brands.


Major Competitors

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

i. LG

ii. Samsung

iii. Videocon

iv. Hitachi

v. Panasonic

vi. Whirlpool


Objective:-

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

1. Study Customer Behaviour Understanding the factors responsible for
customer buying behavior.
2. Marketing Strategy of Voltas Understanding the Marketing plan of
Voltas.
3. Analysis of Market Share of Voltas To study and analyze the
annual and financial growth reports of Voltas Co.
4. Study of Customer Segmentation To study the products of Voltas
with respect to the Segmentation of Customer over Family Size,
Income, Price, Features etc.
5. Study of Product Differentiation Variants of Products offered by Voltas
Co.
6. Competition faced by Voltas Analysis of the domestic competitors for
Voltas.
7. External Environment of Voltas Analysis of the Air Conditioner
Industry.

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


Scope:-

As part of this project we have limited ourselves to study the marketing strategy
of Voltas Air Conditioners only. We have studied the different brands of AC
products being produced by Voltas.

For this we have done a consumer survey within the domestic boundary of our
college students and friends and families outside.

Methodology:-

The sources used for our study are as follows:

Primary data

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

o A set of questionnaire survey was done with the Distributors and
local retailers of ACs

Secondary data

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

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


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

Following are the steps to be followed while carrying out diagnostic research
studies
1.Formulating the objective of the study (what the study is about & why is it
being made)
2.Designing the methods of data collection
3.Selecting the sample
4.Collection the sample
5. Processing & analyzing the data
6. Reporting the finding

DATA SOURCES
Primary data
Primary data is the information collected for research purpose at hand.Primary
data was collected through an interview with the help of a
structuredQuestionnaire, which contained queries that were relevant to the
purpose of the study as well as pertinent; industry related questions. the present
study questionnaire makes use of both open ended and close ended questions.
Secondary data
Secondary data is the information which already exists. Secondary data
Collected from journals, magazines, books etc.The secondary data for this
research was obtained from textbooks, brochures and internet. Very little
research specific data was available, hence much emphasis was given to
primary data.
Research approach
Survey method was adopted in order to collect the primary data required for the
study.

SELECTION OF SAMPLES AND DATA COLLECTION

SAMPLING METHOD

Random Sampling method

SAMPLE SIZE

50 Customers & 25 Dealer/Distributors

RESEARCH TOOL

Questionnaires- Questionnaire was designed with open-end close-end
questions. The questionnaire was designed in such a manner so as to
cater to all the areas and aspects the study.
RESEARCH AREA

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

Geographical coverage
Jamshedpur,Ranchi,Dhanbad,Chakradharpur

Customer Response for Voltas Airconditioners

This set of questions are used for academic project to study the Voltas Airconditioner Market

* Required

This set of questions are used for academic project to study the Voltas Air
conditioner Market.
1) What is your age group?
a) 15-25
b) 26-35
c) 36-50

d) above 50

2) How many members are there in your household?
a) less than 3
b) 3-6
c) 6-9
d) more than 9

3) What is your annual family income?
a) less than 5 lac
b) 5-10 lac
c) 10 lac-20 lac
d) more than 20 lac


4) How many ACs do you have in your household?
a)0-1
b)2-4
c)4-6
d)more than 6

5) Which brand of AC do you have?if you have given 1 or more in your
previous response
a)Voltas
b)Samsung
c)LG
d)Panasonic
e)hitachi
f)other:_______________

6) Which brand of AC have you recently purchased?
a)Voltas
b)Samsung
c)LG
d)Panasonic
e)hitachi
f)Other:______________


7) What are the factors of selecting a Brand?
a)brand popularity
b)advertisement
c)current trend
d)BEE Star rating
e)Finance Option

8) Where do you prefer to purchase Air Conditioner
a)Exclusive showroom
b)Multi brand store
c)Local retailer
d)Non brand retailer

9) What are the influences for purchasing AC
a)Friend
b)Family
c)Price
d)Features
e)Looks
f)Others:______________


10)When do you prefer to purchase Air Conditioner?
a)Pre Summer
b)Post Summer
c)Off Season
d)Festive Season

11)how do you rate the factors for Air Conditioners 1-most important / 5-least
important
1 2 3 4 5
Power consumption ___ ___ ___ ___ ___
Maintenance ___ ___ ___ ___ ___
On Call Service ___ ___ ___ ___ ___
Warranty ___ ___ ___ ___ ___
Size ___ ___ ___ ___ ___

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


DATA ANALYSIS AND FINDINGS:-

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

How many members are there in your household?

less than 3 13%
3 - 6 81%
6 - 9 4%
more than 9 2%

What is your family Annual Income Scale?

less than 5 lac 22%
5 lac - 10 lac 50%
10 lac - 20 lac 20%
more than 20 lac 8%

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

0 - 1 40%
2 - 4 46%
4 - 6 12%
more than 6 2%

Which Brand(s) of AC do you have?

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

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

Which brand of AC have you recently purchased

0%
10%
20%
30%
40%
Voltas LG Samsung Panasonic Hitachi Other
Chart Title
Series1 Series2
0%
5%
10%
15%
20%
25%
30%
35%
40%
Voltas LG Samsung Panasonic Hitachi Other
Chart Title
Series1 Series2
Voltas 17%
LG 38%
Samsung 17%
Panasonic 11%
Hitachi 7%
Other 10%

What are the factors for selecting a Brand

Brand Popularity 35%
Advertisement 4%
Current trend 14%
Finance option 37%
Brand Image 49%
Other 24%

Where do you prefer to purchase Air conditioner

Exclusive Showroom 13 27%
Multi Brand Store 26 53%
Local Retailer 9 18%
Non Branded Retailers 1 2%

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

When do you prefer to purchase Air Conditioner

Pre Summer 27 52%
Peak Summer 8 15%
Off Season 13 25%
Festive Season 4 8%

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

63%
17%
10%
4%
6%

How do you rate the factors for Air conditioners Maintenance

1 31%
2 35%
3 19%
4 12%
5 4%

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

1 29%
2 35%
3 8%
4 22%
5 6%

How do you rate the factors for Air conditioners - Size

1 19%
2 13%
3 35%
4 15%
5 17%

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

0
0.2
0.4
0.6
0.8
1
Chart Title
Series1 Series2

My Finding Report

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

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

Samsung and Voltas are maintaining close market share

AC purchase decision is governed by following factors
o Brand Image
o Brand Popularity
o Finance options
The purchase decision is a lot depended upon Brand Image but a
typical customer considers finance options also while its purchase.

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

The top 3 factors influencing AC purchase decision are

o Features
o Price
o Family

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

60% sample survey suggest that
o Power Consumption
o Maintenance
o On Call Support service
o Warranty
Are the important factors considered while purchasing/selecting a
branded AC

The Branding of Voltas is strong and connects well within the
masses
Air conditioner brands in India
As per Bureau of Energy Efficiency (BEE), around 38 brands of air
conditioners are registered with BEE for star rating. The ones that are best
known to us include LG, Samsung, Whirlpool, Voltas Godrej, Carrier, Hitachi,
Daikin, Panasonic, Blue Star, Onida, Videocon, Haier, IFB , Electrolux etc. LG
has the largest share in the room air conditioner market followed by Voltas and
Samsung . Voltas, a TATA product and Godrej are the Indian brands. Hitachi
and Daikin , Japanese brands, have products in the premium segment.
With the help of finding i also got what the consumer thinking of voltas AC
.Means what comes in a mind of consumer when they think of voltas AC.
GOOD QUALITY,TATA PRODUCT,AVERAGE AC,INDIAN AC,AFTER
SALE SERVICE IS BAD.


Distributors Response Form
This set of question is intended to be used for academic research project to study the Voltas Air Conditioner
market.
*Required
Name of the store-
Address-

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

2) if not , why dont you keep Voltas AC in your Store ?
a) Exclusive Showroom
b) Lack of demand
c) Low profit Margin
d) No service Shop Available locally
e) Other:_____________________
3) What are the major brands of AC being sold out from the store* ?
a) Samsung
b) Voltas
c) Panasonic
d) LG
E) Hitachi
f)Other:_______________

4) What are the usual brands considered by consumers for AC purchase
a) Samsung
b) Voltas
c) Panasonic
d) LG
e) Hitachi
f) Other:____________________

5) What are the primary reasons for most selling brands of AC
a) Price
b) Quality
c) Star rating
d) Features
e) Advertisement
f) After sale service

6)How many AC you sell in a year?
A)0-50 B)50-100 C)100-150 D)150-200 5)200 and more
Answer-

7)What are the different brand of AC do you sell?
A)Voltas B)LG C)Samsung D)Panasonic E)Hitachi F)All of the above
Answer-

8)How many Voltas AC you sell in a year?
A)0-40 B)40-80 C)80-120 D)120-160 E)160 and more
Answer-

9)Which Brand has a best market share ?
A)Voltas has the best market share B)LG has the best market share
C)Panasonic has the best market share D)Samsung has the best market share
E)Hitachi has the best market share F)There are other brands which is making
progress
Answer-

10)What is the reason of selling high/ low no. of Voltas AC?
A)It is high selling because of brand B)It is low selling because other brands
are making progress in the market c) after sale service d) advertisement e) price
factor
Answer-

Data Analysis

Do You Sell Voltas AC in your store
Yes 83%
No 17%

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

Exclusive showroom 10%
Lack of demand

90%
Low profit margin

0%
No service shop available locally 0%
other

0%


0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Exclusive
showroom
Lack of
demand
Low profit
margin
No service
shop
available
locally
other
Series3
Series2
Series1

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


Voltas 40%
LG 70%
Samsung 50%
Panasonic 30%
Hitachi 20%
Other 30%

What are the usual brands considered by consumers for AC purchase


Voltas 43%
LG 60%
Samsung 50%
Panasonic 33%
Hitachi 20%
Other 30%
0
0.5
1
Voltas LG Samsung Panasonic Hitachi other
Chart Title
Series1 Series2
0
0.5
1
Voltas LG Samsung Panasonic Hitachi other
Chart Title
Series1 Series2
What are the primary reasons for most selling brands of AC


Price

50%
Quality

33%
Star rating 50%
Features

67%
Advertisement 17%
After sale service 50%

How many AC you sell in a year?

0 0.2 0.4 0.6 0.8 1
Voltas
LG
Samsung
Panasonic
Hitachi
other
Chart Title
Series2 Series1
0 0.2 0.4 0.6 0.8 1
Voltas
LG
Samsung
Panasonic
Hitachi
other
Chart Title
Series2 Series1
What are the different brand of AC do you sell


Voltas

90%
LG

70%
Samsung

70%
Panasonic 50%
Hitachi

60%
other

80%

How many Voltas AC you sell in a year

0 0.2 0.4 0.6 0.8 1
Voltas
LG
Samsung
Panasonic
Hitachi
other
Chart Title
Series2 Series1
50%
60%
75%
30%
25%
40%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Voltas Samsung LG Panasonic Hitachi other
Series1 Series2

Which Brand has a best market share


Voltas

50%
Samsung

60%
LG

75%
Panasonic 30%
Hitachi

25%
other

40%

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

My Finding

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

Voltas AC lacks in demand in the Jharkhand region like Bokaro and
Ranchi whereas highly demanded in Jamshedpur region
LG and Samsung is the most dominant brand of AC in overall market
LG, Samsung and voltas consists in majority of consideration set of
customers
Features are the prime factor of purchase reasons.
Price, after sale support and finance schemes are also major reasons for
consideration of buying an AC

Voltas which is of Tata group is a leading brand of air conditioner according to
a past years but recent years there is a lack of demand of Voltas AC within
consumers.
Voltas Ac According to a survey and questions asked with several distributors
and the response comes from distributors are
1)Voltas after sale service is not good And sometimes positive responses not
comes after calling in helpline number of Voltas ac so result dealer have to
suffer because customer approaches to dealers to solve their problems and there
is always a minor problems occurs in air conditioner after buying Voltas ac .
2)Voltas AC comes in a Chinese materials and with aluminium tubes which is a
very important factor of lack in demand of Voltas Ac because customers wants
Air conditioner which is durable and built with copper tubes.
Customers wants air conditioner with Copper tubes with aluminium fins
because copper are superior to aluminium because of coppers superior
strength, reliability, ease of maintenance, and excellent heat transfer
characteristics.

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


SWOT ANALYSIS

Strength Weakness
Design and manufacture of Too keen on targeting the
industrial equipment. economy consumer segment
Management and execution of only
Air Conditioning Unable to target the Green
Voltas represents a number of conscious customers
global technology leaders,
serving diverse industrial
sectors and applications.

Public works project

Sourcing, installation and
servicing of technology
based
systems

Opportunities Threats
The high end value driven Due to increased price of inputs
proposition helps increase the and continued price erosion
market share. there is downtrend in the
Voltas is well known for its consumer durables market
product differentiation
Promote eco friendliness
through their energy efficient
products


MARKETING ANALYSIS

Marketing is a societal process by which individuals and groups obtain what
they need and want through creating, offering and freely exchanging products
and services of value with others or otherwise it is the process of planning and
executing the conception, pricing, promotion and distribution of ideas, goods,
services to create exchanges that satisfy individual and organizational goals.

Marketing Strategy

Marketing strategy is a set of objectives, policies and rules that leads the
company's marketing efforts. It is the marketing approach to accomplish the
bread objective of the marketing approach to accomplish the bread objective of
the marketing plan. The various process of marketing strategy is given below.

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

1. Market segmentation and selecting target market

Voltas has smartly created their market segment on the basis of the
Cost sensitivity within consumers. Voltas has segmented their
consumers as

- Cost saving conscious

- Cost saving plus appearance conscious

- Affordability with ease

2. Positioning

Voltas has positioned themselves as a low on cost air conditioners with
all the features of a good air conditioner.

3. Product

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

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

4. Price

Considering the customer segmentation and market positioning,
Voltas has kept its product prices competitive and lucrative for the
economy minded consumers. The company does operate in the higher
segments but it ensures Price as their winning factors, since they
cannot compete over other value addition which is possible for other
costlier brands.

5. Place

Voltas has ensured its product presence at almost all tiers of cities
throughout the country through local retailers, exclusive showrooms,
malls, electrical and electronic superstores etc.

Since last year, the company has also started coming up with special
retail franchisee where all the Voltas products are installed in working
conditions so that the consumers can check and feel the features of the

product at the store. The location of such innovative stores is made such
that it caters to majority of the areas within its radius.
The after sale service shops are present in all major tier A, B, C
cities. Voltas has even developed its own 24 hours dedicated customer
care representatives to take all types of complaints, feedbacks and
suggestions from customers.

6. Promotion

Voltas advertisement strategy clearly depicts their customer
segmentation and positioning within market. The advertisement is meant
to emotionally bridge the gap within its consumers who feel that AC
runs on electricity bill to electricity saving AC.

The promotions done through magazines are smartly placed and
designed to attract different income level customers who prefer AC
with good exterior look and low on energy bill.

7. Research and Development

Voltas uses the state of the art technology in its entire product range.
With the solid back up of Voltas and dependable Indian label, Tata,
Voltas AC continuously develops its product to match with all the
compliance and customer requirement.


MARKETING STRATEGY

Marketing is not Euclidean geometry a fixed system of concept. Rather marketing is
one of the dynamic fields with in the management arena. The market faces
continually a new challenge everyday and companies must respond to it positively.
Therefore it is not surprising that new market idea keep surfacing to meet new market
place challenges.

The market process is applicable to more than goods and services. Anything related
to market including ideas, events, policies, prices and personalities comes under
market strategy. However it is important to emphasize opportunity in the market
through market strategy.

Following strategies adopted by the organization.

Niche Marketing:

Voltas has kept their marketing objectives for niche segments. The specific
marketing effect helps them staying focused with their product and customer
demand

Multi Prolonged Strategy:

Voltas marketing strategy is a long term approach. They have not changed their stand
since the inception of the brand and continue to promote the same value proposition
of economic energy consumption to their customer segments. This has helped them in
creating a brand sentiment within masses and the featured product are helping them in
getting into cutting edge competition.

Corporate selling at discount price to Employees:

Voltas has adopted an amazing marketing technique of offering their AC product at
reduced price to the employees of TCS. This promoted the brand within in house.

On the basis of marketing strategy an organization runs in the market. It is several
types of which makes helpful to increase sales and turnover of the organization.


MARKETING MIX

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

Sizes

Services

Warranties

returns


MARKET POTENTIAL

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

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

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

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


LIMITATION OF THE PROJECT

1. The sample used for our consumer behaviour analysis is very small
and does not represent the whole market
2. The study is based on articles, presentations, etc available in library,
internet, company home page etc. only
3. The analysis is done by under trainee students and cannot be taken as
final report

CONCLUSION

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

1. Customer Behaviour With the help of our survey we were able to
deduce that the consumers of ACs are mostly driven by Energy
efficiency, maintenance cost, after sale support
2. Marketing Strategy of Voltas Voltas has strictly adhered to their mass
marketing technique and highly efficient products at reasonable cost of
owning. This has helped Voltas to capture the niche market of cost
sensitive consumers and even retain them.

3. Market Share of Voltas Voltas is doing fairly well in the current
scenario with its last quarter results showing positive development
4. Customer Segmentation Voltas customer segmentation is very clear
and they have streamlined their products as per the same.
5. Product Differentiation Voltas has a good line of products
within each type of products.

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

BIBLIOGRAPHY

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

http://www.voltas.com/news/cooling_appliances/Voltas_launches_new_range_of_All%20Weath
er_air_conditioners_news10.asp

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

Tata Voltas Summer Internship 2013

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Tata Voltas Summer Internship 2013

Hochgeladen von

Copyright:

Verfügbare Formate

TITLE OF SUMMER TRAINING PROJECT

Understanding the determinants of environmentally conscious

Das könnte Ihnen auch gefallen