Beruflich Dokumente
Kultur Dokumente
2010-2012
CERTIFICATE
This is to certify that Project Report titled A COMPARATIVE STUDY ON VACCUM CLEANER OF EUREKA FORBES AND ITS COMPETITORS is a bonafide work carried out by Mr. Amol P. Nitnaware of MBA- II (Marketing and Finance) of Datta Meghe Institute of Management studies in the partial fulfillment of Master of Business Administration course of University of Nagpur (2010 - 2012). He has worked under our guidance and direction. His work is found to be good and complete in all respect. During the period we found him hardworking, sincere and loyal. We wish him all the best for future.
DECLARATION
I, Amol Nitnaware student of M.B.A II nd YEAR of D.M.I.M.S. Nagpur (2010-2012), Hereby declare that this project report A COMPARATIVE STUDY ON VACCUM CLEANER OF EUREKA FORBES AND ITS COMPETITORS is written and submitted by me under the guidance of Mrs. Archana Shrivastav and Dr. Amishi Arora (Project Guide). The findings and interpretations in the report are based on both primary and secondary data collection. This project is not copied from any source or other project submitted for similar purpose.
Amol Nitnaware
ACKNOWLEDGEMENT
Every project has a number of persons involved in it, some directly others indirectly. Everyone has contributed to its success; the critics who spur you into action with renewed enthusiasm and the supporters who steadfastly encourage you all through till the end. I would like to take this opportunity to express my gratitude for all those who provided valuable criticism, appreciation and guidance to make this project a success. I express my gratitude to Mrs. Archana Shrivastav, and Dr. Amishi Arora my Project Guide for their guidance, motivation and attention. They were very much approachable with all my doubts. I am thankful to all of my friends and colleagues for their help in completing this project work. Finally, I am thankful to my entire family members for their great support and encouragement.
Amol Nitnaware
TABLE OF CONTENTS
CHAPTER PARTICULARS PAGE NO.
INRODUCTION
COMPANY PROFILE
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4 5
26 28
LIMITATIONS
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RESEARCH METHODOLOGY
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35
RECOMMENDATIONS
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10
CONCLUSION
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BIBLIOGRAPHY
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ANNEXURE
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INTRODUCTION
CHAPTER 1
INTRODUCTION
The main objective of the project was to conduct Customer perception Survey for Eureka Forbes Company Limited for which, we have to understand the customer and identify the consumer loyalty, their likeliness, and their demand / requirement needs, constraints, response and emotions. The objective of this study was to analyze consumer perception of in Nagpur city with respect to the performance of the product, sales effort and sales service. Another underlying objective was to determine the study of competitors who share the market of vacuum cleaners with Eureka Forbes. Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats. Comparative study of the competitors of brings forth the offering made by our competitors. It is important to understand the strategy of the competitors when they offer products and services in the market. This makes our organization to carry out activities in line with the strategies of competitors. Follow up of the competition in the market would help the organization to improve on its shortcomings and add value to its customers. Retaining of market share is another benefit from the competitor study. So, overall study of competitor in the market holds a great importance. Eureka Forbes being a giant in the vacuum cleaner division holds almost a monopolistic position in the vacuum cleaner market. According to the present statistics it holds almost 90% share in the vacuum cleaner market. It is made possible through extensive support of direct sales executive force acquired by Eureka Forbes throughout the country. Direct Sales strategy is the innovation provided by Eureka Forbes to the marketing and sales scenario. Direct marketing channel has produced shocking results.
It is channel through which the customer gets the first hand experience of the product at his doorsteps. Breaking the tradition of ages where a customer would approach a shop or a mall, the direct sales strategy has found to be effective and result oriented. It was essential to know the feedback of customers in order to formulate effective marketing and sales strategies in future and improve the Quality of product to achieve better consumer satisfaction. The personal visits and campaign made us possible to measure the satisfaction of consumer by identifying the attributes, which gave consumer-varying degrees of satisfaction and to improve brand image. Questionnaire was based on company format. Some attributes like requirement of Customer and sales services offered by company were identified as critical (motivational) factors for providing satisfaction to consumers. The criterion to find out the perception of customers of the Eureka Forbes customers and their competitors was on the following criterion: Cost, discounts, availability, size, weight, quality, handling, Door to door service, life of the product, annual maintenance contract and query redressed. The study was undertaken for Nagpur region. The questionnaire contains various aspects like their names, address and contact numbers, service details, sources through which they became aware about the product, usage duration of the product, what they dislike about the product and recommendation of Eureka Forbes vacuum cleaners to others. The researcher went personally to the various customers. The customers were interviewed personally and the data was collected. The opinion and the suggestions by the customers were carefully analyzed. The data interpretation is done on the basis of the findings of the study.
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Mission
To build sustainable relationships with customers as their "Friend for Life" by satisfying their evolving health, hygiene, safety and lifestyle through. Our people whose entrepreneurial spirit and ambition is fuelled by the culture of pride, learning, earning and fun. Our Product and Services that reflect innovation become quality benchmarks and provide real value - for - money. Our Policies and Practices that is fair, transparent and constantly improved to optimize stakeholder satisfaction and achieve market leadership
Vision
A Happy, Healthy, Safe and Pollution free environment built on trust and lasting relationships with customers.
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COMPANY PROFILE
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Eureka Forbes (EFL) has come a long way. From being famous (or infamous) for pioneering the direct selling in India to being rated as the best employer and top it all a case study at Harvard. Eureka Forbes is a joint venture between Forbes (India) and Electrolux from Sweden. Eureka Forbes first launched the Vacuum cleaners in India. EFL initially faced lot of problem in marketing its vacuum cleaners. Targeted at the upper middle class families, these products were never considered a priority. Since most of the middle class families could afford a maid, it was a fight between Maid and the Machine. Eureka Forbes - A Business Super brand .this companys Aqua guard & Euro clean - Chosen Super brands. This company is ranked among India's Most Admired Consumer Durable Companies. This company awarded for The Best Employers (4 times in a row) .This Company is the Winner of 'Most Admired Knowledge Enterprise' MAKEAsia Awards, Winner of awards on Customer Responsiveness, Winner of Water Digest awards. EFL Vision is to make a happy, healthy, and safe & pollution free environment on truest and lasting relationship with customers. EFLs mission is To Build sustainable relationship with customers as their Friend for life by satisfying their evolving health, hygiene and life style need through.
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Hierarchical Structure:
Vice President
General Manager
Branch Manager
Head of CRC
Team Leader
Customer Specialist
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STRATEGIES ADOPTED THAT HAVE MADE EUREKA FORBES A POPULAR BRAND NAME
1. Direct Marketing EFL was the first to introduce water purifiers and vacuum systems into the Indian homes. As these products were unknown to the Indian market, therefore advertising campaigns were impossible. Hence EFL chose the less traveled direct selling route. Direct method is a method that aims at establishing a direct connection with the potential customers and cultivates a lasting relationship. EFL was the first company to venture into the same and now is Asias largest direct selling organization.
2. Advertisement Campaigns Many companies, while selling a new product in the market find that sales cannot be sustained without constant advertising. Sales charts always show a meteoric rise postadvertising burst. Eureka Forbes often runs advertisements on different channels over the year to sustain the brand awareness and ensure that the consumers are exposed to the brand.
3. Dedicated Service Help-line Eureka Forbes has over 1000 service centers in all major cities in India with more than 5000 trained service technicians. Theirs is the largest After Sales net work in India. They have a dedicated 24 hours single number access help line in 8 major cities.
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4. Marketing Mix
PRODUCT a) Easily available nation-wide. b) Easy to handle. c) Multiple products launched for each product type.
PRICE a) Product price range divided into four segments to target different audiences. b) Low cost of maintenance and consumable. c) Best prices offered when compared to other competitors.
PROMOTION a) Active subscription immediately. b) Right time installation of products. c) Properly repair services against paid AMCs. d) Service during contract period.
PLACE a) Urban educated India that cares for their family. b) Areas prone to diseases. c) Strategically chosen locations for catching the eye of potential
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1. WATER PURIFIERS
2. VACCUM CLEANERS
3. AIR PURIFIERS
4. SECURITY SOLUTIONS
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WATER PURIFIERS
MARKET SCENARIO Clear drinking water is a huge problem in India. The water that comes through the tap is often salty, and is riddled with bacteria. So, selling water purifiers is a big market in India. In fact, estimates show that it might be worth up to Rs. 710 crore. Companies are advertising heavily on television to grab a piece of the market preying on the fears of the general public. People often do not comprise when it comes to the safety of their family and so are willing to spend months wage on buying a water purifier. Buying a water purifier can be a nightmare as there are so many to choose from with different features. Some of them include:
Aquaguard Kent Pristine Philips water purifier Aero Videocon water purifier KenStar Pureit
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VACUUM CLEANERS
SELLING STRATEGY ADOPTED: 1. Because of the low interest and since the product benefits needs to be demonstrated to the customers, conventional distribution was not viable. Hence EFL chose the less traveled Direct Selling route. 2. Professional Sales Approach strategy was encoporated by Eureka Forbes Limited. The Eureka Forbes sales man was called Eurochamp. It was a tough job for these salesmen who had to go through the "cold calls" to get a sale. At one point of time, because of the aggressive nature of these sales persons, people became scared even to listen to these sales persons. Now this aggression has mellowed down to a more professional sales approach. 3. Eureka Forbes has also tried to position their sales persons as problem solvers rather than sales officers. The campaigns tried to build the image of a Euro champ as a Friend rather than one that is after the money. MARKET SCENARIO: Indian Vacuum Cleaner Market is worth around 120 crores. Eureka Forbes is a market leader in vacuum cleaners with an 85 per cent share of the 2.5 lakh vacuum cleaners sold annually in India.
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THE MAJOR COMPETITORS IN VACUUM CLEANER MARKET: 1. LG 2. Panasonic 3. Kenwood 4. Chinese vacuum cleaners PROBLEMS IN PRICE AND USAGE PATTERN: One of the major problems faced by both these markets is the price barrier. Vacuum cleaners were expensive when it was launched, but looking at the website of the company; the prices have come down sharply which will expand the market. Second problem with vacuum cleaner is the lack of product usage at homes. Most of the vacuum cleaners are lying idle which is bound to create a negative word of mouth. EFL may have to do a follow up on helping customers to use the product regularly.
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FACTS THAT MAKE EUREKA FORBES VACUUM CLEANERSUNIQUE IN THE MARKET THE 4 CRITERIA FACTOR: If we take a look at the analyzed details in the above sections, it is evident that Eureka Forbes has turned the disturbing & annoying image of sales persons in to a friend to the family. Not many companies were able to accomplish this. So what makes them so strong in their target achievement? This is where our analysis of their Selling Strategy starts. When we look at their perspectives, majority of their sales have been through Direct Selling, and they are still continuing with the practice. In terms of Strategy, the following four criterions define their success in the market:
USER POSITIONING BENEFIT POSITIONING VALUE FOR MONEY USER FRIENDLY SALES PERSONS
USER POSITOINING: The way Eureka Forbes has pitched in to the market with its wide range of products has allowed the users to select from the extensive choices available according to their preferences. For example, the various models in vacuum cleaners are as follows:
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FORBES: EASY CLEAN EASY CLEAN LITE TRENDY NANO SWIFT TRENDY STEEL
BENEFIT POSITIONING: As seen in the above segment, Eureka Forbes has introduced a new product with added benefits at regular intervals in the market. Each product comes with a specific benefit, apart from the normal features (Benefits are those special additions whereas features are the normal aspects present). For e.g.: FORBES products are for Daily cleaning purpose and EUROCLEAN are for deep cleaning purpose. In particular, if we take EURO CLEAN WET & DRY, the multi-purpose Euro clean WD not only removes dirt and dust from floors, carpets, famishing and other inaccessible areas, but also wet cleans your floors & tiles and takes care of wet spills, giving you a clean and healthy home. In the case of FORBES EASY CLEAN it is a Multipurpose Daily Use Vacuum Cleaner, Suction & Blower Functions, and Shoulder Strap for easy usage and Hand Held. Multipurpose Daily Use Vacuum Cleaner, Suction & Blower Functions, Shoulder Strap
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were designed for easy usage and in a convenient hand held position. In such ways, each product is positioned with its exclusive benefits in the minds of the customers.
VALUE FOR MONEY: The price factor for Eureka Forbes was a big obstacle at the initial time when it was targeted mainly towards the middle and upper middle class segment. But as time progressed, they have come up with a varying range of products priced according to the features and added benefits. Value for Money thus has always been a major factor for the long term sustainability of the Eureka Forbes Vacuum Cleaners in the market.
USER FRIENDLY SALES PERSONS: Success to Eureka Forbes became a case study at Harvard Business School. The driving factor behind this was the excellent workforce of Sales persons Eureka Forbes has developed and maintained over a long period. The key high lights are as follows: The sales persons were recruited with efficient analysis and effective training was instilled to them. Training included how to cope up with the stress in the Customer meetings, since door to door selling invited the annoying response from the customers. Various approaching Strategies were taught to them with the aid of case studies and Role play activities. With all these training & development activities, sales persons from Eureka Forbes were not just sales force trying to sell product to customers, but became friends to their families providing suggestions and solutions.
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AIR PURIFIERS
In addition to the Water Purifiers and the Vacuum Cleaners, Eureka Forbes also provides Comprehensive Air Purification System to clean indoor air of all common pollutants, creating a clean, healthy & pleasant environment. Eureka Forbes offers its products through dealers and institutional sales network.
SECURITY SOLUTIONS
Eurovigil from Eureka Forbes provides complete safety for living & business. Solutions customized for homes, institutions & corporates, each solution from Eurovigil is tailor-made for unique requirement. An array of products - intrusion detection, access control, surveillance & fire detection, the Eurovigil solutions are state-of-the-art security solutions providing total safety. The strategic tie-ups with world's leading companies in security solutions like Notifier, Honeywell, Bosch and many others make the Eurovigil systems the ideal solution for homes and business. Security Solutions from Eureka Forbes include 24-hour door watch systems that enable people to see and speak to their visitors, before granting them access to their your homes.
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OBJECTIVES
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Objectives:
1. To study consumer perception of Eureka Forbes vacuum cleaner users competitors of Eureka Forbes on the basis of following criterion: Cost, discounts, availability, size, weight, quality, handling, Door to door service, life of the product, annual maintenance contract and query redressed. 2. To study the Eureka Forbes offerings along with its competitors. 3. To study the satisfaction level of consumer of Eureka Forbes. 4. To gather the problems faced by the Eureka Forbes consumers. 5. To study the sales strategy adopted by Eureka Forbes.
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HYPOTHESIS
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CHAPTER 5 HYPOTHESIS
1. Marketing and Sales strategy of Eureka Forbes is very effective with regards to door to door service. 2. The company is known for strong goodwill, trustful reliability and best service provider amongst the customers. 3. The consumers of Eureka Forbes are satisfied with the product in terms of life of the product. 4. The customers prefer Eureka Forbes products for the service provided by the company. 5. Vacuum cleaners provided by the competitors do not satisfy expectations of the consumers in terms of life of the product.
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LIMITATIONS
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Respondent were not interested:According to the requirement of the survey I had to fill in the questionnaire from customers. Some customers showed a casual attitude and were not really involved in the feedback.
Psychological limitation:During the process of interview some of the respondent were suffering from Leniency effect, and a feeling why me attitude.
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RESEARCH METHODOLOGY
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Preliminary Study
Data Collection
Data Analysis
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TYPE OF RESEARCH
I have used descriptive research design for the project. The research is descriptive as it involves statistical calculation and analysis. This type of design is used when the researcher is interested in knowing the characteristic of certain groups. Other cases, where it is used are when the researcher is interested in knowing the proportion of people in a given population who have behaved in a particular manner, making projections of certain thing or determining the relationship between two or more variables. Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied.
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The rating has given on the following basis 1 (very poor), 2 (poor), 3 (Satisfactory), 4 (excellent), 5 (Outstanding). The study was conducted through Questionnaire and the analysis is as follows:
1. Customer awareness:
The research was conducted to find out whether people are aware about the Eureka Forbes vacuum cleaners. From the above data we find that out of the 50 sample size, 41 vacuum cleaner users are aware of the Eureka Forbes vacuum cleaners. Only 9 users were not aware of the latter.18 percent vacuum cleaner users were not aware of the Eureka Forbes.
Table 8.1 Customer awareness frequency table Opinion Yes No Frequency 41 9 Percentage 82 18
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Sources of Awareness:
As per the survey conducted out of the sample size that were aware of the Eureka Forbes vacuum cleaners 46.34 percent people became aware through the direct sales executives.31.70 percent people became aware through advertisements. Shopping malls were the awareness point for 14.63 percent people; whereas 7.31 percent people became aware through friends. Table 8.2 Sources of awareness frequency table Sources Direct Sales Executive Advertisement Shopping Mall Friends Frequency 19 13 6 3 Percentage 46.34 31.70 14.63 7.31
2. Consumer perception:
Rating for the Cost factor is given on the average basis i.e. 64 percent. By enlarge people are not dissatisfied with the cost of the product. The discount factor rated here at average rating i.e.48 percent.32 percent and 16 percent people find discounts poor and very poor. The availability and the weight of the product are excellent and outstanding as shown in the table. People have admired its availability and the weight. Quality of the product is rated at 44 percent for outstanding ranking. Door to door service is again shown the result with 52 percent people raking it as outstanding. Life of the product is rated excellent by 68 percent people. Annual maintenance contract seems a problem area since 40 percent and 36 percent people view it as average and poor. Query redressed is a criterion is where people have a mixed opinion- 36 percent people find it on average basis. 36 percent people find it excellent and 32 percent people have ranked it as outstanding.
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Table 8.3 Consumer Perception frequency table Criterion Very Poor F Cost Discounts Availability Size Weight Quality Handling D to D Life AMC Query Red. 0 4 0 0 0 0 0 1 0 3 1 P 0 16 0 0 0 0 0 4 0 12 4 F 3 8 0 0 4 0 1 2 2 6 4 Poor P 12 32 0 0 16 0 4 8 8 36 16 Average F 16 12 4 13 6 7 5 4 4 10 6 P 64 48 16 52 24 28 20 16 16 40 36 Excellent F 3 1 13 4 6 7 9 5 17 4 6 P 12 4 52 16 36 28 36 20 68 16 36 Outstanding F 3 0 8 8 9 11 10 13 2 2 8 P 12 0 32 32 36 44 40 52 8 8 32
Suggestions by customers:
1. Price of Eureka Forbes product should be reduced. 2. The price of the product should be decided keeping in mind the competitors market. 3. Annual maintenance contract is to be provided by the company itself. 4. The rate of annual maintenance contract should be reasonable. 5. Door to door service should be made more regular and effective. 6. Awareness campaigns could be conducted to advertise the product. 7. Introduction of handy vacuum cleaners for household uses with powerful motors.
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Duration of product
This data was also essential to see the number of years the product is been used by the customers. There were total 84 percent Eureka Forbes customers who were using the product from 1 year to 8 years. There were only three customers who had brought the vacuum cleaner recently. A single person was using the product for more than eight years. In the competitors section 32 percent people had purchased vacuum cleaner recently. 60 percent people were using the product since 1-4 years. There was only a single customer who was using the product for 4-8 years and more than 8 years, respectively.
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Table 8.5 Duration of product frequency table Duration Eureka Forbes Frequency Percentage 0-1 year 1-4 years 4-8 years More than 8 years 3 12 9 1 12 48 36 4 Competitors Frequency 8 15 1 1 Percentage 32 60 4 4
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5. Consumer Satisfaction:
Consumer satisfaction being one of the objectives of the project I have specified the percentage calculation. Out of 25 existing Eureka Forbes customers 96 percent people have given their consent to recommend EF vacuum cleaners to others. Only a single person who was not satisfied with EF vacuum cleaner has not suggested the same to others. 44 percent non-Eureka Forbes users have given their consent to recommend EF vacuum cleaners to others. This may be due to high dissatisfaction level that they posses. 56 percent people have not suggested the same to others. Table 8.7 Consumer Satisfaction frequency table Status Eureka Forbes users Frequency Percentage Yes No 24 1 96 4 Non-Eureka Forbes users Frequency 11 14 Percentage 44 56
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2. Consumer Perception
Cost factor here is rated to be excellent by 36 percent people and average by 48 percent people. The discounts available to them are better than those provided by Eureka Forbes. Availability of the product is rated excellent by 56 percent people. The products are readily available to the customers. The size factor also works for the nonEureka Forbes customers, as 44 percent and 48 percent people have rated it as average and excellent. The weight of the product is satisfying on average basis for 40 percent people. 32 percent people find them excellent in weight. The quality of the product is marked average by 52 percent people. Even handling is rated on average basis by 52 percent people. Door to door service being the unique feature of Eureka Forbes, has gained outstanding ranking by 52 percent people in previous analysis. Here, 40 percent and 32 percent people find door to door services poor and very poor, respectively. Many of the Eureka Forbes competitors do not provide door to door service. Life of the product is rated as average by 60 percent people. Annual Maintenance Contract is again rated to be average by 70 percent people. Query redressed feature is also rated average by 64 percent people and very poor by 36 percent people.
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Table 8.10 Consumer Perception frequency table Criterion Very Poor F Cost Discounts Availability Size Weight Quality Handling D to D Life AMC Query Red. 0 0 0 0 0 0 1 8 0 1 0 P 0 0 0 0 0 0 4 32 0 4 0 F 2 4 1 1 5 0 1 10 1 5 9 Poor P 8 16 4 4 20 0 4 40 4 20 36 Average F 12 12 8 11 10 13 13 4 15 18 16 P 48 48 32 44 40 52 52 16 60 72 64 Excellent F 9 9 14 12 8 9 7 3 7 1 0 P 36 36 56 48 32 36 28 12 28 1 0 Outstanding F 2 0 2 1 2 3 3 0 2 0 0 P 8 0 8 4 8 12 12 0 8 0 0
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RECOMMENDATIONS
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CHAPTER 9 RECOMMENDATIONS
1. The price of the product should be decided keeping in mind the competitors market, as the prices of competitors begin from rs.1500/2. If the company is able to provide annual maintenance contract by itself it would benefit the customers highly. 3. The rate of annual maintenance contract should be reasonable, as at present the rate of AMC varies from rs.1500 -1000. 4. Door to door service should be made more regular and effective. 5. Awareness campaigns like hoardings and could be conducted to advertise the product. 6. Conventional communication channel television should be used to advertise the products. 7. Introduction of handy vacuum cleaners for household uses with powerful motors.
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CONCLUSION
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CHAPTER 10 CONCLUSION
Any kind of business is heavily dependent the offerings made by the organization, customer perception, customer satisfaction, referral purchases, word of mouth advertisement and also the television advertisements which are by far the most influential factor in a persons decision of the brand. It applies to the case of vacuum cleaner product too. The company providing have to decide on the quality product and services that will ensure a customer loyalty and prevent a switch as most vacuum cleaners offer the same features. The analysis of the project shows the following conclusion: Consumer awareness: The major size of the population is aware about the Eureka Forbes vacuum cleaners. This shows that Eureka Forbes is strong in its marketing endeavors. This is made possible through the direct sales force and advertising campaigns by Eureka Forbes. Direct sales source has major contribution in conveying the offerings by Eureka Forbes. Advertisements are also effective in creating awareness among the potential customers. Awareness though friends brings the word of mouth channel into the picture which has an important role to play. (Refer tables 8.1, 8.2) Annual maintenance contract: From available data we come to know that many of the products of competitors are not long lasting. It is due to inferior quality products. It implies that AMC holds no importance to them as the products life is short. Eureka Forbes provides quality products to the customers and this implies that people are interested in the AMC due to longer life of the product. (Refer tables 8.4 and 8.5)
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Consumer perception, satisfaction and comparison: The discount factor rated here at average rating i.e.48 percent.32 percent and 16 percent people find discounts poor and very poor. This is due to an experience of direct sales executives. At direct channel they are to charge the product without any discount. It is because the company does not provide annual maintenance contract service to its customers. AMC shows average results because Eureka Forbes has outsourced this job to different organizations, but customers want company to take the responsibility of AMC. In case of query handling the most EF customers have given excellent and outstanding remarks. This is not the case with competitors customers. They have received average service in query handling Most of the consumers have rated outstanding remarks for quality, handling and door to door service. In contrast to the remarks of EF customers, very few competitors customers have rated outstanding remarks to their respective companies. This shows a high degree of dissatisfaction from the customers of our competitors. Almost all of the existing customers are satisfied with the reliability, service and goodwill of the company. This shows a great amount of satisfaction from the customers of Eureka Forbes. (Refer tables 8.3, 8.6, 8.7, 8.8 and 8.10) Competitors market share: The percentage of purchase in customers (between 0-4 years) could be due to highly available low cost Chinese products. The minor shift in the choice of customers from Eureka Forbes vacuum cleaners to the other companies is due to the cost factor. Customers find the vacuum cleaners of Eureka Forbes, heavily priced in comparison to its competitors. We should understand that the competitors of Eureka Forbes provide the products at relatively lower prices. It has been a crucial factor in consumer shift. (Refer tables 8.5 and 8.9)
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The companys strategy of direct sales is excellent which allows the customers to have the first hand experience of the product at their doorsteps. This move of the company is beneficial for the customers who are busy in their schedule and hardly have time to choose a brand for themselves. It is very much essential to meet the expectations of the customers to keep the goodwill of the firm maintained in the market. First of all, the company should solve the problems of the customers regarding the service. The product and the services related to it are most important to establish place in the target market. The decisions regarding the purchase of vacuum cleaners are also influenced by the way of Word of Mouth (WOM), which the customer gets from users of vacuum cleaners of the same or the competing company. This has critical implications for both the marketer and sales people. Most of the dealers and sales people would like to move on from the last sale and look for new prospects, but the very fact that the new vacuum cleaner buyer would base his 'buy' or 'No buy' decision on the feedback from earlier customers is sometimes lost in the haste to get more sale. Finally through this project I would like to say that, Eureka Forbes offers quality and long lasting products to the customers. By enlarge it has a strong goodwill in the market. The competitors are slowly creeping into market through providing products at lower prices. The pricing strategy placed by them is penetrating pricing strategy. Though the products are not long lasting, customers are willing to buy on the low-price basis. There have been no equal efforts made by the competitors of Eureka Forbes in Door to Door service section. Eureka Forbes rules as the pioneer and top seed in this endeavor. Overall the customers of Eureka Forbes are satisfied with the vacuum cleaners. This is the basic perception of customers of Eureka Forbes collected through the survey. Eureka Forbes, being top company in vacuum cleaner section can retain its position by its continual efforts in sales and quality service.
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BIBLIOGRAPHY
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Websites:
1) http://www.eurekaforbes.com
2) http://www.eurekaforbes.com/news/archive.aspx 3) http://www.google.com
4) http://www.scribd.com/doc/29017131/Eureka-Forbes-Project-Report-1
5) http://www.forbeslux.com/eureka_forbes_ltd.php
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ANNEXURE
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Dear Customer, as a trainee in Eureka Forbes I want to thank you for giving us the opportunity to serve you. Please help us to serve you better by taking a couple of minutes to tell us about the benefits of the product that you have received so far and the perception about the same. We appreciate your business and want to make sure we meet your expectations. We request for your prompt response.
1.
If yes, then through which of the following sources you became aware? Direct Sales Executive 2. Do you use EF vacuum cleaner? Yes No Shopping mall Advertisement Friends
If yes, then rate the vacuum cleaner on the following criterion: Very Poor 1 Cost Discounts Availability Size Weight Quality Handling Door to door service Life of the product Annual Maintenance Contract Query Redressed Poor 2 Average 3 Excellent 4 Outstanding 5
Attributes
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If no, then which of the following vacuum cleaners do you use? LG Panasonic Very Poor 1 Cost Discounts Availability Size Weight Quality Handling Door to door service Life of the product Annual Maintenance Contract Query Redressed Kenwood Poor 2 Average 3 Any other Excellent 4 Outstanding 5
Attributes
3.
Since how long are you using the product? 0-1 year 1-4 years 4-8 years More than 8 years
4.
What is the status of your product? In warranty In contract Out of warranty Out of contract
5.
What do you dislike about the product? Rate of AMC Buy back rate High cost
6.
7.
Thank you for your feedback. We sincerely appreciate your honest opinion and will take your input into consideration while providing products and services in the future.
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