SUMMER TRAINING PROJECT

On

Analysis of consumer behavior towards purchase of electrical appliances from retail stores

BAJAJ ELECTRICALS LIMITED

Submitted in partial fulfillment of the requirements of Post Graduate Diploma in management (PGDM) By Sanjay Kumar Singh PGDM 2010-2012 Roll No. FT-10-936 IILM Graduate School of Management Greater Noida

INDUSTRY OVERVIEW

Electronics Industry in India took off around 1965 with an orientation towards space and defense technologies.

Followed by developments in consumer electronics Electronic industry is currently worth Rs 20250 Crores(US $ 45 billion according to Frost & Sullivan Consulting Firm)

Largest segment is the consumer electronics segment. While is largest export segment is of components.

Electronic industry in India constitutes just 0.7 per cent of the global electronic industry

COMPANY INFORMATION
72 year old

trusted company with a turnover of Rs. 2764.82 Crores. Has six strategic business units Has 19 branch offices, supported by a chain of 1000 distributors, 4000 authorized dealers and 282 customer care centers. Part of the US $ 7 billion (over Rs 38,000 crores) Bajaj Group Chairman & MD: Mr. Shekhar Bajaj Sales turnover(march 2011): Rs. 2764.82 Crores. Net profit(march 2011): Rs. 144.86 Crores. Listed on both BSE(500031) & NSE(BAJAJELEC).

PROJECT REPORT
TOPIC OF THE PROJECT: Analysis of consumer behavior towards purchase of electrical appliances from retail stores OBJECTIVES : To study the consumers buying pattern of appliances. To understand the effect of brand on consumers buying decision of appliances. To understand consumer s perception about Bajaj Electricals s products. To study the effect of retail store s format on the overall appliances sales.

RESEARCH METHODOLOGY:
This is basically primary research where the data is collected through survey using a questionnaire. The questionnaire had structured questions which had limited no of responses.

SAMPLE SIZE:150 LOCATION: Big Bazaar, Rajouri Garden,

New Delhi

DATA

ANALYSIS

In your family who has a greater say in decisions about purchase of electronic appliances?
women 22% 28% family head both men & women all

22% 28%

In response to this question, there was a mixed reply from the respondents. Though from above results, it can be said that most purchase decisions related to electronics are taken by women and family heads.

DATA

ANALYSIS
5%

The main reason/purpose, you use electronic appliances

convenience busy lifestyle 67% status symbol techno savvy 11% 17%

Convenience is the main reason that consumer uses electronic appliances, followed by busy lifestyle.

DATA
32%

ANALYSIS

Which type of electronic appliances you prefer?

branded
56% 11%

local any

1%

depends

Most people prefer branded electronic appliances While some like to take their decision depending on the product

DATA
17%

ANALYSIS

Which brand of Juicer Mixer Grinder/Mixer Grinder do you prefer more? philips 5%
28% Bajaj maharaja whitline any

50%

Most of the respondents chose JMG/Mixer Grinder of Bajaj, followed by Philips. This was due to the price and guarantee that Bajaj offers.

DATA
8% 35%

ANALYSIS
philips 46% morphy richards Bajaj

Which brand of Electronic Press (Both Steam and Dry) do you prefer more?

11% any other

In case of press, Philips scored over Bajaj This was due to better branding by Philips as well as the factor of durability.

DATA
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

ANALYSIS

Ranking Of Various Factors Which Play Role In Purchase Decision

FOR JMG/MG
FOR ELECTRIC PRESS (DRY/STEAM) 100% 90% 80% 70% G/W 60% Service 50% Quality 40% features 30% 20% price 10% 0% durability brand

DATA
For Small Electronic Shops
100% 0% 80% 70% 60% 50% 40% 30% 20% 10% 0% 100% 0% 80% 70% 60% 50% 40% 30% 20% 10% 0%

ANALYSIS
For Retail Stores

Rating On The Basis Of Experience

Highly satisfactory Satisfactory Ok Dissatisfactory Highly dissatisfactory

DATA

ANALYSIS
electronics shop pure play retail stores retail stores

From where do you prefer to purchase electronic appliances? small

14% 8% 32% 46% anywhere

Retail stores and pure play retail stores are chosen as most preferred point of purchase by majority of customers. This indicates the move of customers from traditional shops to retail chains and thereby a growth for retail sector.

DATA
Demographic factors:
Age
below 25 years 25- 5 years 35-45 years above 45 years

ANALYSIS
Annual Income
below 200000 2-4 lakhs 4-6 lakhs 48% 6 lakhs and above

1 % 11%

16%

15%

21%

1% 45%

Gender
female male 47 103

FINDINGS
In retail stores most customers like to buy branded appliances. Consumer likes to have appliances for their convenience and thus would prefer a more user friendly product. Bajaj s JMGs/Mixer grinders are chosen for their price and the guarantee that is offered. For electronic press Philips is the most preferred brand. Brand and Price are top two factors which play important role in purchase decision of consumers. Retail formats are going to be point of high sales in the near future.

SUGGESTIONS
The company needs to focus on creating a strong brand name for itself. The company should offer combination of products which is the trend in retail stores. The company should try to remodel/redesign old models and should make it look newer. Company should give exchange offers from time to time.

CONCLUSION
The electronic industry has abundant growth potential. Consumer durables alone stand for 34% of the total industry. There has been continuous demand for appliances in the Indian electronic market. There are new sales points which can be big contributors of the total sales. One such point is retail chains which are also steadily growing. These potentials can be tapped if only they are understood well and catered well.