CHAPTER – 1

1. INTRODUCTION
1.1. OUTLINE OF THE PROJECT
SALES PROMOTION
The project work consists of the study on SALES PROMOTION. I have
studied the overall market conditions existing in the market, the sales and
advertising strategies for Reliance Communication and its effectiveness on the
agents, retailers and consumers satisfaction.

The information was gathered from the retailers and customers by means
of Questionnaire and the data collected was tabulated and analyzed by using the
statistical design.

Market
A Market is an aggregate of people who, as individuals and or
organizations, have the need, ability, willingness and authority to purchase
products.

Marketing - Definition
According to American Marketing Association, “Marketing consists of the
performance of business activities that direct the flow of goods and services from
producers or suppliers to consumers or end-users”.

Definition of Sales Promotion

“luich and zegler defines sales promotion as ‘as a inducements which offer
an extra value and incentive for the product to the sales force,distributors,or the
ultimate consumers’.

1
Definition of Advertising
According to American Marketing Association, “Advertising is any paid
form of non-personal presentation and promotion of ideas, goods and services of
an identified sponsor”.
Whereas Advertising offers a reason to buy, Sales Promotion offers an
incentive to buy.
Sales Promotion Activity is to stimulate dealers, retailers and consumers
effectively. Sales Promotion includes Tools for
Consumer Promotion may be in-home promotional schemes such as
samples, coupons; cash refund offers, prices off, premiums, prizes, free trials,
warranties, point-of-purchase displays, and demonstrations.
Trade promotion such as prices off, advertising and display allowances
and free goods and
Business and Sales-force promotion such as trade shows and
conventions, contests for sales reps, etc.
Sales promotion directed at consumers may be done with a view to
increase the products rate of use among existing consumers or to attract new
customers to the company’s products.

2
 1.1.1. NEED OF THE STUDY

There is a huge growth in the Reliance Communication products in recent

years. Growth of the company directly influences the demand for the market,
since it is highly attractive, cost effective and time consuming.

Since there are very few major companies in the Air Conditioning Market,
the competition among the companies has hottened up. All the players in the
steel market are trying to prove themselves as leader. But only companies, which
are providing the superior quality products with highly competitive pricing and
attractive promotional schemes, only can able to be the market leader.

Customers and retailers are the main segments which decide the growth
of the company. These segments will mostly be satisfied through attractive
Promotional Schemes and Quality Advertisements. Advertisements will influence
the customer to infer the brand image and quality of any product.

Presently all the companies are giving very attractive schemes to their
customers and this study is aimed at, what is in the minds of the retailers and
customers with reference to the sales/ purchase, their perception and
expectations, in order to increase the sales of AIR CONDITIONING OF BLUE
STAR LIMITED

3
 1.1.2. OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES
To study about the “SALES PROMOTION” offered by the BLUE STAR
LIMITED.

SECONDARY OBJECTIVES
 To study the Dealer Perception with reference to the product.

 To study the Dominant Factors that influence to buy the BLUE STAR
LIMITED by the customers.

 To study the Incentives, Prices and Services offered by the BLUE STAR
LIMITED.

 To find out the Purchasing Pattern of BLUE STAR LIMITED materials.

4
1.1.3. SCOPE OF THE STUDY

The AIR CONDITIONING of the BLUE STAR PRODUCTS are sold to the
end-users in the Domestic and International levels.

The perception of the retailers and consumers with regard Sales

Promotion Schemes like Advertisement, Samples, Coupons, Cash Refund
Offers, Prices- Off, Free Goods, Display Allowances And Product Quality, etc
which attracted them most, and the suggestions to improve the sales and usage
by them were to be ascertained through the study.

And to find out the level of sale of the AIR CONDITIONING OF BLUE
STAR PRODUCTS. Further to analyze the sales towards the products, quality,
prizes to achieve the Sales Promotion by the organization.

5
1.1.4 LIMITATIONS OF THE STUDY

 Since, the survey has been conducted to the dealers, retailers and
customers. It is difficult to cover the entire market at both International and
Domestic levels.

 The data have been collected within a shorter period. Hence the
geographical area and the number of respondents are been confined.

 Although the questionnaire was set carefully, chances are their respondent
would have given the data casually.

 The study depends upon the information furnished by the respondents and
it is subject to personal bias.

6
1.1.5. CHAPTERIZATION

 This study is presented in Three Chapters. The First Chapter deals with
Introduction, Objectives, Needs, Scope of the study, Research
Methodology, Limitations of the study and consists of the profile and its
Products.

 The Second Chapter consists of Study on Sales Promotion using various

Statistical Tools and Techniques been adopted. The Descriptive Study
has been done in this chapter.

 Finally the Third Chapter consists of the Summary, Findings, Suggestions

and Conclusions.

7
1.1.6. RESEARCH METHODOLOGY

MEANING
A Research Methodology is a way to solve the research problem.
It may be understood as a science of studying how research is done
scientifically.
The Research Methodology is to describe the research procedure. This
includes the overall Research Design and the Data Collection methods. This
selection is important because, it is hard to discuss methodology without using
technical terms.

COLLECTION OF DATA
The researcher collected the data by using Questionnaire Method.
A structured formal method standardizes in the questionnaire to be used in
gathering the data. Questionnaire is considered to be the heart of survey
operation; hence it has to be carefully constructed.

TOOLS FOR DATA COLLECTION

The following tools are used for data collection.
a) Questionnaire
b) Personal Interview

a) QUESTIONNAIRE
Structural Questionnaire is selected as the tool for data collection, which
included a set of various types of Questions concerning different aspects of the
subject for the study. Several types of Questions were included in the
Questionnaire such as Open Ended Questions, Dichotomous and Multiple
Choice questions.

8
b) PERSONAL INTERVIEW
This method was also used to collect the data. This helped to collect
valuable information from the executives of the company and other concerned
authorities.

SOURE OF DATA COLLECTIONS

The data used for this study are both Primary and Secondary Data. The
source of Primary Data is Questionnaire where the researcher has collected the
data from the dealers and customers of “BLUE STAR LIMITED”. Secondary Data
is also documentary data which have already been passed through statistical
process.

RESEARCH DESIGN
A Research Design is the arrangement of conditions for data collection
and analysis of data in a manner that aims to combine relevance data to the
research purpose.
Research design is a conceptual structured within which research is
conducted. It constitutes the blue print for the collection, measurement and
analysis of data.
Research design must focus attention on the following:
• Formulating the objective of the study
• Designing method of data collection
• Selecting the sample
• Data collection
• Processing and analyzing the data
• Reporting the findings

Descriptive Research Design is adopted in this study.

9
SELECTION OF SAMPLES

A SAMPLE is a miniature picture or a cross section of an entire group or

aggregate from which is taken. It is a definite plan for obtaining sample from a
given population. It refers to the technique or procedure the researcher would
adopt in selecting item for the sample.

SAMPLE DESIGN
Sample Design is method of selecting the samples. It consists of two
types. They are
a) Random Sampling
By which, each and every member of the population or universe
has an equal chance or probability of being included in the sample.
b) Non-Probability Sampling
In which the sample subject is chosen on the basis of the
individual’s ability to provide the type of special information needed by the
researcher.
The researcher for the study adopted Judgmental Sample procedure.

Judgmental Sample
A Purposive Sample, non-probability sampling design in which the sample
subject is chosen on the basis of the individual’s ability to provide the type of
special information needed by the researcher.

SAMPLE SIZE
The researcher has selected 50 Samples and conducted research in
Chennai.
Size of the Sample refers to the number of items to be selected from the
universe to constitute a sample.

10
STATISTICAL ANALYSIS AND INTERPRETATIONS
The data collected was tabulated and analyzed with the help of SIMPLE
PERCENTAGE ANALYSIS and CHI-SQUARE TEST. This enabled the
researcher to acquire findings and interpretations of the study and to give
appropriate suggestions.
The collected data was edited consolidated by using simple Percentage
Analysis Method and it is presented in the form of tabular columns and charts.
After the data have been collected, the researcher turns to the task of
analyzing them using Percentage Method and Chi-Square Test.
The INTERPRETATIONS refer to the task of drawing inference from the
collected facts an analytical and/ or experimental study. It is essential for the
simple reason that the usefulness and utility of research findings lie in proper
interpretation. It is being considered the basic component of research process.
SIMPLE PERCENTAGE ANALYSIS
It refers to a special kind of rates, percentage are used in making
comparison between two or more series of data. A percentage is used to
determine relationship between the series.

Percentage = No. of Respondents X 100

Total no. of Respondents

CHI-SQUARE TEST

Chi-Square is a non-parametric test that establishes the independence or

otherwise between two nominal variables.

As formula is χ 2
= Σ (Oi-Ei)2
Ei

11
Where, Oi = Observed Frequency
Ei = Expected Frequency

We may apply the Chi-Square Test either as a TEST OF GOODNESS OF FIT or

as a test to judge the SIGNIFICANCE OF ASSOCIATION BETWEEN
ATTRIBUTES (Test of Independence). It is necessary that the observed as well
as theoretical or expected frequencies must be grouped in the same way and the
theoretical distribution must be adjusted to give the same total frequency as we
find in case of observed distribution.

TEST OF INDEPENDENCE
Chi-Square tests enable to explain whether or not two attributes are
associated. χ 2 describes the magnitude of discrepancy theoretical and observed
values.
The number of Degrees of Freedom, in general, is the total number of
observations less the number of independent constraints imposed on the
observations. In the case of a Contingency Table (i.e. a table with 2 columns
and 2 rows or a table with two columns and more than two rows or a table with
two rows but more than two columns) the Degrees of Freedom is worked out as
follows:

d.f. = (c-1) (r-1)

Where, c = number of columns,

r = number of rows.

12
 1.2. REVIEW OF LITERATURE

DEFINITION OF SALES PROMOTION

Philip Kotler defines it as, “Promotion encompasses all the tools in the
marketing mix whose major role is persuasive communication”.
American Marketing Association has defined it as, “These marketing
activities, other than personal selling, advertising and publicity that stimulate
consumer purchasing and dealer effectiveness such as display shows and
exhibitions, demonstrations and various non-recurrent selling effort not in the
ordinary routine”.

PURPOSE OF SALES PROMOTION

Sales promotion tools in very in their specific objectives. A free sample
stimulates consumer trial, whereas a free management- advisory service aims at
cementing a long-term relationship with a retailer.

PROMOTION MIX
The promotion mix includes four ingredients.
1. Advertising
2. Publicity
3. Personal selling
4. All forms of sales promotion
Advertising
It is defined as any paid form of non-personal presentation and promotion
of ideas, goods and services by an identified sponsor.
Publicity
It is a non-promotional stimulation of demand for a product, obtaining
favorable presentation of it upon radio, television or any stage that is not paid for
the sponsors.

13
Personal Selling
Personal selling is the most effective tool at later stages of the buying
process, particularly in building up buyer conviction and action.

Sales Promotion
Companies use sales promotion tools to draw a stronger and quicker
buyer response sales promotion can be used for short-run effects such as to
dramatize products offers and boost sagging sales.

Major Consumer Promotion Tools

Samples
Offer of a free amount of a product or service delivered door to door, send
in the mail, picked up in a store, or featured in an advertising offer.
Coupons
Certificates entitling the bearer to a stated are saving on the purchase of a
specific product mailed, enclosed in other products or inserted in magazines and
news paper ads.
Cash Refund Offers
Provide a price reduction after purchase rather than at the retail shop:
consumers send a specified “proof of purchase” to the manufacturer who
“refunds” part of the purchase price by mail.
Premiums
Merchandise offered at a relatively low cost or free as an incentive to
purchase a particular product. A self-Liquidating premium is sold below its normal
retail price to consumer who requests it.
Free Trails
Inviting prospective purchasers to try the product without cost in the hope that
they will buy.
Cross Promotion
Using one brand to advertise another non-competing brand.

14
PROMOTION STRATEGY

Strategy lays down the broad principles by which a company hopes at

secure and advantage over competitors and lead to full exploitation of company
resources.
It has four sides of equal importance.

THE PRODUCT
The product is one of the factors determining the form of promotion. Mass
selling consumer goods can be easily promoted through radio and television
advertising.

THE BUYER
If the marketers are to provide realistic solutions to the problems of
buyers, their attitudes, values, aspirations and expectations. Hence, marketers
must have up-to-date information about consumer demand and behaviors.

THE COMPANY
The firm has a unique public image in the market. The firm’s image must
be closely associated with promotional strategy. So that its goodwill can be
exploited. Effectiveness of communication depends upon the firm’s image in the
market.

THE CHANNEL CHOICE

The promotional strategy also depends on the channel or route through
which products of the firm flow to consumers.

15
REASONS FOR SALES PROMOTION

 Introduction of a new product

 Stimulus for a new use of a product
 Encouragement for increasing frequency of purchase
 Appeal to a special to encourage the use of the product
 Creation of dealer interest and including them to stock the articles
 Counter- balancing price competition
 Special training of salesmen
 Seasonal and grand reduction sales
 Acceleration to slow selling line

FUNCTIONS OF SALES PROMOTION DEPARTMENT

 Product package detailing

 Service to salesmen
 Service to dealers
 Making displays
 Helping the dealers in demonstrations, door to door canvassing, etc.
 Publicity (through slider, films and calendars, etc).

16
 1.2.1.INDUSTRY PROFILE

Blue Star was founded in 1943, by Mohan T Advani, an entrepreneur of

exemplary vision and drive. The Company began as a modest 3-member team
engaged in reconditioning of air conditioners and refrigerators.

Within three years, the Company secured the agency for US-based Mel choir
Armstrong Dessau's air-conditioning equipment. Shortly after, the Company
was selected by Worthington, the US leader in air-conditioning, as its India
based partner - these were the first of numerous foreign associations to follow.

An expanding Blue Star then ventured into the manufacture of ice candy
machines and bottle coolers and also began the design and execution of
central air-conditioning projects. Then came the manufacture of water coolers.

Ever since, there has been a constant and profitable growth. Blue Star
diversified and took up agencies for Material Testing Machines and Business
Machines. The export arena beckoned and the Company began exporting
water coolers to Dubai, where in fact, 'Blue Star' soon became the generic
name for water coolers.

The sixties and the early seventies witnessed Blue Star continuing to expand
and thrive. A team of dedicated professionals aided Mohan T Advani in ever
furthering his vision of a profitable company dedicated to its ideals of
professionalism and success. In 1970, the Company took up the all-India
distributorship of Hewlett-Packard products, a business relationship which
continues today and has grown ever stronger through the years. As the
Company's reputation for delivering the goods in the most challenging of
airconditioning projects grew steadily, the early seventies saw a series of

17
prestigious projects being entrusted to Blue Star - skyscrapers such as Air India
Building, Express Towers, the Oberoi Hotel in Mumbai, apart from several
others. Revenues touched the Rs. 10-crore mark and staff strength doubled to
exceed 2000.

As its Indian presence reached greater heights, the Company began building
determinedly upon its existing overseas presence, Blue Star set up a joint
venture with Al Shirawi in Dubai and went on to execute some outstanding
projects in Syria, Iraq and Saudi Arabia

Always moving with the times and ever on the lookout for business possibilities,
Blue Star next set up a software export unit at Seepz, Mumbai in 1983. Then
came associations with more global leaders - a collaboration with York
International of USA for central airconditioning equipment and joint ventures
with Motorola and Yokogawa.

In 1984, Ashok M Advani & Suneel M Advani, the sons of Mohan T Advani,
took over the reins of the Company, after spending nearly 15 years within the
Company steadily climbing up the ladder. A renewed thrust was placed on the
company's core business areas - airconditioning and refrigeration and the
distribution of professional electronics equipment - and the company emerged
a market leader in these focus areas.

The nineties witnessed India entering an era of economic liberalisation and an

upsurge in competition as the dynamic business scenario attracted the world's
most forward-looking corporations. It was time to re-look at existing business
competencies, re-engineer those that were obsolete and forge ahead in
acquiring new business competencies.

In keeping with this focus, an advanced manufacturing facility was set up at

Dadra in 1997, in technical collaboration with Rheem, USA, to enhance

18
manufacturing competency.

1.2.2 COMPANYPROFILE

Central and Packaged Airconditioning Systems

This involves design, engineering, manufacturing, installation, commissioning

and support of large central airconditioning plants, packaged airconditioners and
ducted split airconditioners. This line of business also promotes after-sales
service as a business, by offering several value added services in the areas of
upgrades and enhancements, air management, water management and energy
management.

Cooling Products

Blue Star offers a wide range of contemporary window and split airconditioners.
The Company also manufactures and markets a comprehensive range of
commercial refrigeration products and services that cater to the industrial,
commercial and hospitality sectors. These include water coolers, bottled water
dispensers, deep freezers, cold storages, bottle coolers, ice cube machines and
supermarket refrigeration products.

Professional Electronics and Industrial Systems

For over five decades, the Electronics Division has been the exclusive distributor
in India for many internationally renowned manufacturers of hi-tech professional
electronic equipment and services, as well as industrial products and systems.
The Company has carved out profitable niches for itself in most of the specialized
markets it operates in, such as analytical instruments, medical electronics, data
communication products, material testing, and test and measuring instruments.

19
Blue Star Infotech

Blue Star Infotech is a global provider of Product Services, Enterprise Services,

Travel and Hospitality Services and Independent Testing Services.
Headquartered in Mumbai, it operates seven software development centres in
Mumbai and Bangalore, compliant with International quality standards.

The International Software Services business of Blue Star Limited was spun-off
into a separate company, Blue Star Infotech Limited in April 2000. Since its
inception in 1983, Blue Star Infotech has been instrumental in helping
organisations leverage IT. Blue Star Infotech is a Microsoft Gold Partner and a
member of the Global Services 100 list of service providers. The Company is
publicly listed on the National Stock Exchange and the Stock Exchange, Mumbai.

The services offered by Blue Star Infotech include :

• Product Services, utilized by ISVs and hardware technology vendors, are

delivered on a collaborative platform, and use a variety of development
methodologies such as Scrum, XP, Iterative, to enable clients to deliver
their products to the market in the shortest possible time and at least cost,
without compromising on quality and scope. Blue Star Infotech has an
unblemished track record of having maintained Intellectual Property for its
technology clients.

20
 • Enterprise Services are a combination of business process consulting
and application management services that collectively address the end-to-
end IT needs of an enterprise thereby enabling them to focus on what is
core to them. Partnerships with leading ERP vendors such as Microsoft,
Oracle, SAS and ProClarity provide the Company with that added
advantage, enabling it to deliver value to customers.

• Travel and Hospitality Services provide organizations servicing both

leisure and business travellers with solutions and services that help
improve operational efficiencies, increase distribution channels and
reduce costs through connecting directly to CRS and inventory databases
and harnessing technology.

• Independent Testing Services, a suite of 'low risk-high impact' offerings,

enable CXOs to deliver a reliable and robust solution to their users. It
provides an un-biased perspective on the quality of a solution, thereby
taking up the role of an Independent Certification authority and enabling
the CXO to focus on more critical parts of the development life cycle.

ADVANTAGE OF BLUE STAR:

Blue Star is India’s largest central air conditioning company with over six
decades of experience in providing expert cooling solutions. It has built for itself
an enviable reputation of a one-stop turnkey solution provider for all air
conditioning needs. Blue Star’s design expertise, world-class products and
exceptional project execution capabilities have helped the Company sustain
leadership position in the country for over two decades prestigious projects and
installations in the country.

21
Headquartered in Mumbai, India, Blue Star operates out of four sophisticated
manufacturing plants and 29 branch offices in India and overseas. Blue Star’s
strength lies in its people: 900 technical experts who have over 12,000 man-
years of experience in the cooling business.

1.2.3 PRODOUT PROFILE

TYPES OF PRODUCTS:

Central Airconditioning

• Screw Chillers
• Scroll Chillers
• Double Skin Air Handling Units
• Fan Coil Units
• Packaged Acs
• Hiper Packaged Acs
• Hisen Packaged Acs
• Ducted Splits
• Vrf Systems

Commercial Refrigeration

• Deep Freezers
• Ice Machines
• Water Coolers
• Flexi Water Coolers
• Bottle Coolers
• Milk Coolers

22
 • Bottled Water Dispensers
• Supermarket Display

Speciality Cooling Products

• Process Chillers
• Telepacs
• Precision Control Packaged Acs
• Bulk Milk Coolers
• Mortuary Chambers

Room Airconditioners

• Window Airconditioners
• Split Airconditioners
• Cassette Airconditioners

Verticool Split Acs Cold Storages

• Modular Cold Rooms

• Refrigeration Units
• PUF Insulated Panels
• Ripening Chambers
• Concealed Split Acs

Exports

23
 • Chillers
• AIR SIDE PRODUCTS
• Room Airconditioners
• Special Applications
• Refrigeration

ADVANCED PRODUCT:

The building blocks of Blue Star’s solutions are its products. The most
comprehensive range of air conditioning products in the country. A wide range of
models are available in each product category to ensure that the air conditioning
system design is implemented without any compromise. All products have been
designed on the energy-efficiency platform, and offer a host of advanced
features.

Blue Star’s product line-up includes screw chillers, scroll chillers, fan coil units,
air handling units, packaged air conditioners, ductable splits and VRF systems
apart from room air conditioners such as split, window, concealed, vertical and
cassette air conditioners. It also offers specialized air conditioners for critical
applications such as process chillers for the process industry, telepacs for
telecom shelters and precision control packaged air conditioners for server
rooms.

Blue Star’s product range is reputed to be high on reliability and low on power
consumption. The Company also has strategic tie-ups with manufacturers of
ancillary equipment such as ducts and grilles. Thus, Blue Star is in a position to
fulfill every conceivable requirement of its customers.

24
Cutting edge manufacturing :
All Blue Star products are manufactured at ISO 9001:2000 accredited facilities
and are fully integrated via an ERP software. Stringent tests are conducted in
self-owned labs, and are also certified through independent certification
agencies, if required. Powerful software packages are used to create customised
products which are then tested under rigorous conditions.

Blue Star’s sophisticated plants use the latest automated machinery at every
stage of the manufacturing process. .

25
26
 CHAPTER-2
DATA ANALYSIS AND INTERPRETATION
2.1 PERCENTAGE ANALYSIS

2.1.1. TYPES OF AIR CONDITIONER BUYING FROM BLUE STAR LIMITED

Types of A.C No of respondents percentage
Ducted split A.C 13 26
Window A.C 23 46
Cassette A.C 8 16
Split A.C 2 4
Concealed split 4 8
A.C
Total 50 100%

CHART 2.1.1
23
RESPONDENTS

25
20 13
NO OF

15 8 Series1
10 2 4
5
0
split A.C

Cassette

Concealed
Ducted

split A.C
A.C

TYPE OF A.C

INFERENCE
46% of the 23 respondent’s are buying window A.C 26%, respondent’s are
buying ducted A.C. 16% respondent’s are buying cassette A.C.8% respondent’s
are buying concealed A.C and 4% respondent’s are buying split A.C
(44%) most of the respondent’s are usability factors

27
 2.1.2. FACTORS INFLUENCING PURCHASE AIR CONDITIONER FROM
BLUE STAR PRODUCTS
Factors No. of Respondents Percentage
Easy availability 10 20
Usability 22 44
Brand name 11 22
Services 1 2
Payment Terms 6 12
Total 50 100%

chart 2.1.2
No of respondents

25 22
20 11
15 10
10 6 Series1
5 1
0
Usability

Brand
availability

Payment
name

Services

Terms
Easy

factors

INFERENCE
44% of the 22 respondent’s are usability factors 22% are brand name factor,
20% are easy availability factor, 12% are payment terms and 2% of the
respondent’s services factor
44% most of the respondent’s are usability factors

2.1.3. STATEMENTS AFFECTS THE SALES PROMOTION

28
Particulars Strongly Agree Neither Disagree Strongly
agree Agree Or Disagree
Disagree
a) Usually, We 19 23 6 1 1
Go Strictly For
Branded
Products
b) Normally, I 14 23 9 0 4
Have Seen
“Higher The
Price, Better The
Quality”
c) Usually, Do 13 27 7 1 2
You Think Brand
Image Of A.C
Increase The
Sales Of The
End Product
d) As A Matter Of 12 23 9 1 5
Fact, Are U
Influenced More
By Discount &
Promotional
Offers
Total 58 96 31 3 12

29
 c h a r t 2 .1 .3

120
100
80 23
No of respondents 6 01 2 27
S e rie s 4
4 01 3 23
20 1 4 9
79
23 S e rie s 3
01 9 6 10 5241
S e rie s 2
S tro n g ly A g re e N e i th e Dr i s a g r e Se tro n g ly
a g re e A g re e O r D i s a g re eS e r i e s 1
D is a g re e
fa c t o r s

INFERENCE

46% of the 23 respondents agree that they strictly buy the branded
products, 46% are agree that they are buying the higher the price, better the
quality products, 54% are agree that the brand image of the A.C increases its
sales and 46% of the respondents agree that they were influenced by discounts
and promotional offers.

2.1.4. PATTERN OF PURCHASING THE BLUE STAR AIR CONDITIONING BY

THE CUSTOMERS

30
 Pattern of purchasing No. of Respondents Percentage
Purchasing On 14 28
Regular
Order based 26 52
Project based 7 14
Occasional 0 -
others 3 6
Total 50 100%

chart 2.1.4
Purchasing On
Regular
Order based
7 0 3
14
Project based

Occasional
26
others

INFERENCE

52% of the respondents are buying Blue Star Air Conditioning on order
based ,28% of the respondents are buying it on the regular based , 14% of the
respondents are buying project based and 6 % of the respondents others.

(52%) most of the respondents are buying Blue Star Air Conditioning on
order based

2.1.5. OPINION ABOUT THE MORE PROFITS FROM THE BLUE STAR AIR
CONDITIONING

31
 Profits No. of Respondents Percentage
Higher 25 50
Medium 15 30
Lower 10 20
Total 50 100%

chart 2.1.5

30 25
No of respondents

20 15
10 Series1
10
0
Higher Medium Lower
profits

INFERENCE
Among the 50% of the respondents get medium profit and 30% of the
respondents get higher level profit and remaining 20% respondents get lower
level profit
(50%) most of the respondents get medium profit

2.1.6. SATISFACTION WITH PROFIT MARGIN OF AIR CONDITIONER

PRODUCTS OFFERED BY THE BLUE STAR WHEN COMPARED
WITH OTHERS
Profit Margin Of No. Of Respondents Percentage
BLUE STAR
Highly satisfied 22 44
Satisfied 15 30
Neither 9 18

32
 dissatisfied 0 -
Highly dissatisfied 4 8
Total 50 100%

chart 2.1.6

25
22
20

15 15
No of
respondents 10 9
Series1
5 4
0
0
Highly Neither Highly
satisfied dissatisfied
profit margin

INFERENCE
With regard to the satisfaction of consumer of Blue star air conditioning
44% and 30% of the respondents gave highly satisfied and satisfied as their
opinion respectively. 18% of the respondents gave neither satisfied nor
dissatisfied and remains 8% gave highly dissatisfied as their opinion.
(44%) most of the respondents gave highly satisfied

2.1.7. ORDERS DELIVERED FROM THE SUPPLY OF BLUE STAR AIR

CONDITIONING COMPANIES

DELIVERIES No. Of Respondents Percentage

Orders immediately 5 10
delivered
Taking own time 45 90
Total 50 100%

33
 chart 2.1.7

5
O rders
im m ediately
delivered
Tak ing own
tim e
45

INFERENCE
90% of the respondents are getting their Orders delivered to their door
step through BLUE STAR AIR CONDITIONING. 10% of respondents taking their
own time

2.1.8. GETTING REGULAR SUPPLY FROM BLUE STAR AIR CONDITIONING

Regular Supply No. of Respondents Percentage

Yes 35 70
No 15 30
Total 50 100%

34
 Chart2.1.8

15
Yes
No
35

INFERENCE

70% of respondents are getting the supply of Blue Star A.C regularly, but
the remaining 30% are getting improperly.
(70%) most of respondents are getting the supply of Blue Star

2.1.9. SATISFACTION OF PAYMENT TERMS

Satisfaction Of No. of Respondents Percentage

Payment Terms
Yes 45 90
No 5 10
Total 50 100%

35
 ch art 2.1.9

payment terms
No 5
S eries 1
Y es 45

0 20 40 60
No of re sponde nts

INFERENCE

With regard to satisfaction on payment terms, BLUE STAR

PRODUCTS is keeping 90% of the respondents satisfied, but
simultaneously the rest 10% of the respondents are not satisfied with
payment terms of Blue star products
(90%) most of the respondents satisfaction on payment terms

2.1.10. EFFECTIVENESS OF ADVERTISEMENT AND SALES PROMOTION

Advertisement And No. of Respondents Percentage

Sales Promotion
Very good 17 34
Good 22 44
Not so bad 8 16
Bad 1 2
No opinion 2 4
Total 50 100%

36
 chart 2.1.10

25
22
20
17
15
NO of respondents
10 8
Series1
5
1 2
0
Very Good Not so Bad No opinion
good bad
sales promotion

INFERENCE
Table helps to identify the effectiveness of advertisement and sales
promotion schemes of the blue star product. The maximum of 44% of the
respondents feels that the advertisement and sales promotion schemes are
good. 34% as very good, the minimum of 16% feels it as not so bad, 4% feels it
as no opinion. And 2% feels it as bad.
(44%) most of the respondents feels that the advertisement and sales
promotion schemes are good.

2.1.11. SATISFACTION WITH INCENTIVE SCHEMES OFFERED BY BLUE

STAR PRODUCT

Satisfaction No. of Respondents Percentage

Yes 42 84
No 8 16
Total 50 100%

37
 C h a rt 2 .1 .1 1

60
No of 40
re sp o n d e n 42
ts 20 S e rie s 1
8
0
Y es No
sa tisfa c tio n

INFERENCE

Table infers that 84% of the respondents were satisfied with the incentive
schemes given by the Blue star product and 16% of the respondents are not
satisfied.
(84%) most of the respondents were satisfied with the incentive schemes

2.1.12. RELATIONSHIP BETWEEN THE CUSTOMERS AND BLUE STAR

Relationship No. of Respondents Percentage

excellent 12 24
good 22 44
satisfied 10 20
dissatisfied 1 2
No opinion 5 10

38
 Total 50 100%

chart 2.1.12

25 22
20
No of
15
re sponde 12 10
10
nts 5 Series1
5
1
0
excellent dissatisfied
Relationship

INFERENCE
44% of the respondents indicate their response that they have good
relationship with Blue Star product, 24% indicates that they have excellent
relationship, 20% of the respondents have satisfied with BLUE STAR PRODUCT
at satisfaction level and 10% of the respondents have no opinion.
(44%) most of the respondents indicate their response that they have good
relationship with Blue Star product

2.1.13. IMPORTANCE GIVEN BY THE CUSTOMERS TO BUY BLUE STAR

PRODUCTS

Importance To Buy No. of Respondents Percentage

Blue star ACS
Products
Maximum 30 60
Moderate 20 40
Minimum 0 -

39
 Total 50 100%

chart2.1.14

0
20 M ax imum
M oderate
30 M inim um

INFERENCE
The table depicts that 60% of the respondents gives the maximum
importance to buy BLUE STAR A.C materials and the remaining 40% of the
respondents buy moderately.
(60%) most of the respondents give the maximum importance to buy

2.2.1. STATISTICAL TOOLS

CHI-SQUARE TEST

Aim
To find out the relationship between the type of A.C and the most of
influencing factor to purchase A.C from BLUE STAR PRODUCTS.

Null hypothesis

40
 There is no significant association between the type of A.C and the most of
influencing factor to purchase A.C from BLUE STAR PRODUCTS.

Alternative hypothesis
There is significant association between the type of A.C and the most of
influencing factor to purchase A.C from BLUE STAR PRODUCTS.
.
Types of Influencing factors Total
Easy usability brand services Payment
A.C
availability name terms
Ducted spilt 5 5 2 1 - 13
A.C
Window A.C 4 14 3 - 2 23
Cassette - - 5 - 3 8
A.C
Spilt A.C 1 - - - 1 2
Concealed - 3 1 - - 4
spilt A.C
Total 10 22 11 1 6 50

41
 Table – 2

Oi Ei ( O i − Ei ) ( O i − Ei )
2
/ Ei
5 2.6 5.76 2.2154
4 4.6 0.36 0.0783
0 1.6 2.56 1.6
1 0.4 0.36 0.9
0 0.8 0.64 0.8
5 5.72 0.52 0.0906
14 10.12 15.05 1.4876
0 3.52 12.39 3.52
0 0.88 0.77 0.88
3 1.76 1.54 0.8736
2 2.86 0.74 0.2586
3 5.06 4.24 0.8387
5 1.76 10.50 5.9645
0 0.44 0.19 0.44
1 0.88 0.01 0.0163
1 0.26 0.55 2.1062
0 0.46 0.21 0.46
0 0.16 0.03 0.16
0 0.04 0.0016 0.04
0 0.08 0.64 0.08
0 1.56 2.43 1.56
2 2.76 0.58 0.2093
3 0.96 4.16 4.335
1 0.24 0.58 2.4067
0 0.48 0.23 0.48

Calculated value of Chi-square = 31.800

Table value = 26.30

INFERENCE

42
 The table value of chi-square for 16 degree of freedom at 5% level of

significance is 26.30.

Thus the table value is less than the calculated value. Since the table

value is less than the calculated value, the alternative hypothesis is accepted and

null hypothesis is rejected.

CONCLUSION
Therefore it is inferred that there is significant association between the

type of A.C and the most of influencing factor to purchase A.C from BLUE STAR

PRODUCTS

Aim:
To find out the relationship between patterns of purchasing and
influencing factors to purchase.

43
Null hypothesis:
There is no significant association between patterns of purchasing and
influencing factors to purchase.

Alternative hypothesis:
There is significant association between patterns of purchasing and
influencing factors to purchase

Influencing Pattern of purchasing total

Purchasin Order Project occasional others
factors
g on based based
regular
Easy 2 6 2 - - 10
availability
usability 3 15 4 - - 22
Brand 4 4 1 - 2 11
name
services - 1 - - - 1
payment 5 - - - 1 6
terms
Total 14 26 7 - 3 50

44
 Table – 3
Oi Ei ( O i − Ei ) ( O i − Ei )
2
/ Ei
2 2.8 0.64 0.2286
3 6.16 9.99 1.6210
4 3.08 0.85 0.2748
0 0.28 0.08 0.28
5 1.68 11.02 6.5610
6 5.2 0.64 0.1231
15 11.44 12.67 11.0783
4 5.72 2.96 0.5172
1 0.52 0.23 0.4431
0 3.12 9.73 3.12
2 1.4 0.36 0.2571
4 3.08 0.85 0.8464
1 1.54 0.29 0.1894
0 0.14 0.02 0.14
0 0.84 0.71 0.84
0 0.6 0.36 0.6
0 1.32 1.74 1.32
2 0.66 1.80 2.7206
0 0.06 0.0036 0.06
1 0.36 0.41 1.1378
32.3584

Calculated value of Chi-square = 32.35

Table value = 26.30

INFERENCE

The table value of chi-square for 16 degree of freedom at 5% level of

significance is 26.30.

45
 Thus the table value is less than the calculated value. Since the table

value is less than the calculated value, alternative hypothesis is accepted and

null hypothesis is rejected.

CONCLUSION

Therefore it is inferred that there is significant association between

patterns of purchasing and influencing factors to purchase

CHAPTER- 3
SUMMARY AND CONCLUSION

3.1. FINDINGS

 46% of the 23 respondent’s are buying window A.C 26%, respondent’s

are buying ducted A.C. 16% respondent’s are buying cassette A.C.8%

46
 respondent’s are buying concealed A.C and 4% respondent’s are buying
split A.C
(44%) most of the respondent’s are usability factors

 44% of the 22 respondent’s are usability factors 22% are brand name
factor, 20% are easy availability factor, 12% are payment terms and 2% of
the respondent’s services factor
(44%) most of the respondent’s are usability factors

 46% of the 23 respondents agree that they strictly buy the branded
products, 46% are agree that they are buying the higher the price, better
the quality products, 54% are agree that the brand image of the A.C
increases its sales and 46% of the respondents agree that they were
influenced by discounts and promotional offers.

 52% of the respondents are buying Blue Star Air Conditioning on order
based ,28% of the respondents are buying it on the regular based , 14% of
the respondents are buying project based and 6 % of the respondents
others.
(52%) most of the respondents are buying order based

 Among the 50% of the respondents get medium profit and 30% of the
respondents get higher level profit and remaining 20% respondents get
lower level profit
(50%) most of the respondents get medium profit

47
 With regard to the satisfaction of consumer of Blue star air conditioning
44% and 30% of the respondents gave highly satisfied and satisfied as
their opinion respectively. 18% of the respondents gave neither satisfied
nor dissatisfied and remains 8% gave highly dissatisfied as their opinion.
(44%) most of the respondents gave highly satisfied

 90% of the respondents are getting their Orders delivered to their door
step through BLUE STAR AIR CONDITIONING. 10% of respondents
taking their own time

 70% of respondents are getting the supply of Blue Star A.C regularly,
but the remaining 30% are getting improperly.
(70%) most of respondents are getting the supply of Blue Star

 With regard to satisfaction on payment terms, BLUE STAR

PRODUCTS is keeping 90% of the respondents satisfied, but
simultaneously the rest 10% of the respondents are not satisfied with
payment terms of Blue star products
(90%) most of the respondents satisfaction on payment terms

 Table helps to identify the effectiveness of advertisement and sales

promotion schemes of the blue star product. The maximum of 44% of the
respondents feels that the advertisement and sales promotion schemes
are good. 34% as very good, the minimum of 16% feels it as not so bad,
4% feels it as no opinion. And 2% feels it as bad.

48
 (44%) most of the respondents feel that the advertisement and
sales promotion

 Table infers that 84% of the respondents were satisfied with the
incentive schemes given by the Blue star product and 16% of the
respondents are not satisfied.

(84%) most of the respondents were satisfied with the incentives

 44% of the respondents indicate their response that they have good
relationship with Blue Star product, 24% indicates that they have excellent
relationship, 20% of the respondents have satisfied with BLUE STAR
PRODUCT at satisfaction level and 10% of the respondents have no
opinion.

 The table depicts that 60% of the respondents gives the maximum
importance to buy BLUE STAR A.C materials and the remaining 40% of
the respondents buy moderately.
(60%) most of the respondents give the maximum importance to buy

3.2. SUGGESTIONS

 40% of the respondents feel that the advertisement and sales promotion
schemes are good. In order to improve sales, BLUE STAR PRODUCTS

49
 may concentrate more for providing discounts and consumer and trade
promotional offers.

 With regard to satisfaction on payment terms, 10% of the respondents are

influenced. So the BLUE STAR PRODUCTS wants to extend the credit to
its customers.

 Few of the respondents are satisfied with service provided by BLUE STAR
PRODUCTS. Hence BLUE STAR PRODUCTS has to improve the Service.
It may help to retain their customers.

 Consumer awareness programme to be organized on regular basis.

 If the dealers and retailers are well motivated, it will result in increase the
sales of BLUE STAR PRODUCTS.

3.3. CONCLUSION

 It is concluded from the study that the Discounts and Promotional Offers
and the Brand Name of BLUE STAR are the most important factors to

50
 inducing the customers to purchase of BLUE STAR PRODUCTS AND
THEIR SERVICES.

 The company should concentrate on all the Promotional Measures to

improve sales. For this price reduction, payment terms, advertisements,
incentive schemes are provided. By improve the sales promotion offers,
BLUE STAR PRODUCTS can influence the satisfaction of customers,
boost up sales in the market and also can create image towards the
industrial users.

 The customer’s perception to various factors like sales offers, profit

earned, payment terms, relationship between the customers and BLUE
STAR PRODUCTS, importance given by customers to buy BLUE STAR
PRODUCTS materials were well known. The right sales promotion
schemes and advertisement of BLUE STAR AIR CONDITIONING
PRODUCT may enhance the market position of the company in the future.

51