INTRODUCTION

INTRODUCTION

In any marketing situation/environment, variables relating to Customer, Competition, and environment are constantly influencing. . Moreover the technological advancements in todays world has created a healthy competition in different industries and we are seeing a power shift from manufacturers to gain customers, who are now very price and value sensitive and set a trend for the marketer. The competitors in a given industry may be making many tactical man oeuvres in market to attract customers. They may introduce or initiate an aggressive promotional campaign or announce a price reduction. The marketing person of the firm has to meet all these man oeuvres and take care of competitive position of his firm and brand in the market. The only route open to him is achieving. This is the manipulation of his marketing tactics.

Since, theoretical knowledge without practical knowledge is of little gain, so, in order to achieve positive and concrete result through the practical concept, the exposure to real life situation existing in the corporate world is very important. To fulfill this procession, the management course has the provision for Research Project.

I hereby present the project on Air Conditioners. This project was the Branding Exercise for Voltas Ltd. It was undertaken to know the position of Voltas among all the other brands available in the market through Retailers. Importance of this project can be

estimated from the time of the year, when it was undertaken. This project was done at the time when the season for air conditioners is peaking up. This was the time when all the competitors were trying their best to gain customers for their company by making many tactical man oeuvres whether in the form of price reduction or free gifts or many other forms of promotional techniques. The study was a little more exploratory because the industry which was majorly dominated by players like Carrier and Voltas, now has been taken over by the new MNCs like LG, HITACHI, SAMSUNG, Whirlpool, etc. in the last few years. This project was a great learning experience for me since it gave me an opportunity to witness and be a part of the real competition that is being faced by the AC industry today.

COMPANY PROFILE

COMPANY PROFILE
The TATA Group Established in 1945, Tata Industries Ltd. was the managing agency for the Tata Group until 1970. In 1983, following the preparation of a long-term strategic plan, Tata Industries pioneered the entry of the Tata Group into several new sectors that were expected to have a significant impact on India's economy in the future. Since then, Tata Industries has functioned as the catalyst for the introduction of new businesses within the Tata Group, especially in areas of high technology and future economic potential.

Tata Industries Ltd. has promoted projects in the fields of finance, telecommunications, oil field service, process control, management systems and information technology. It has two divisions that operate as independent profit centres, Tata Strategic Management Group and Tata Interactive Systems. In the rapidly changing economic environment, Tata Industries Ltd. will continue to look for new opportunities to promote focussed growth.

Leadership With Trust

Purpose The purpose of Tata group is to improve the quality of life of the communities they serve. It does this through leadership in sectors of national economic significance, to which the group brings a unique set of capabilities. This requires them to grow aggressively in focussed areas of business. The heritage of returning to society what is earned evokes trust among consumers, employees, shareholders and the community. This heritage will be continuously enriched by formalising the high standards of behaviour expected from employees and companies.

The Tata name is a unique asset representing leadership with trust. Leveraging this asset to enhance group synergy and becoming globally competitive is the route to sustained growth and long-term success.

5 Core Values
The Tata Group has always sought to be a value-driven organisation. continue to direct the group's growth and businesses. underpinning the way they do business are: Integrity - we must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny. Understanding - we must be caring, show respect, compassion and humanity for our colleagues and customers around the world and always work for the benefit of India. Excellence - we must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide. Unity - we must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation. Responsibility - we must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over. These values

The five core Tata values

VOLTAS

Established in 1954, Voltas Limited is India's premier air conditioning and engineering services provider. It offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, climate control, electromechanical projects, textile machinery, machine tools, mining and construction, materials handling, water management, building management systems, pollution control and chemicals. The Company's strengths lie principally in the design and manufacture of industrial equipment; management and execution of air conditioning and public work projects; sourcing, installation and servicing of technology-based systems; and representation of global technology leaders, serving diverse industrial sectors and applications.

Operations Voltas' operations have been organized into four independent business-specific clusters, namely the Electro-Mechanical Projects & Services, Unitary cooling products for comfort & commercial use, Engineering Agency & Services and Others. Each of these has its own facilities for market coverage and service to customers.

Electro-Mechanical Projects & Services Air conditioning & Refrigeration

Electrical, Mechanical & HVAC solutions Water Management & Treatment

Unitary cooling products for comfort & commercial use Cooling Appliances Commercial Refrigeration & Contract Manufacturing

Engineering Agency & Services Machine Tools Mining and Construction Equipment Textile Machinery

Others Materials Handling Solutions Chemicals Trading Engineering Products Trading Civil Construction

Manufacturing Voltas possesses total capability in the manufacture of room/split air conditioners, industrial air conditioning and refrigeration equipment, water coolers, refrigerators, visicoolers, freezers, fork-lift trucks and large water supply pumps. All these products bear the stamp of state-of-the-art automated manufacturing plants resulting in consistently high quality and reduced costs.

Furthermore, the Company is partnered with international companies such as LG Electronics and Samsung of Korea and Fedders International of USA for 'manufacture only' alliances producing low cost, high quality refrigerators and room air conditioners, respectively.

Projects Over the years, Voltas has built up a substantial reputation in engineering, procurement and construction (EPC) fields, for electro-mechanical projects, specializing in heating, ventilation and air conditioning, building management systems, power and lighting, communication systems, water management and pollution control. The Company has ISO 9001 - 2000 standards certification in this business, and has successfully undertaken and executed project works in the Middle East, South and Far East Asia, CIS countries and Africa.

Marketing Voltas' sourcing and marketing operations cover air conditioners, textile machinery, machine tools, mining and construction equipment and industrial chemicals. In these sectors, the company demonstrates its specialized engineering expertise, as well as its extensive network of global sourcing.

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Nation-wide facility network The Company has its head office in Mumbai; zonal headquarters in Mumbai, Kolkata, New Delhi and Chennai; territorial offices at Ahmedabad, Bangalore, Chandigarh, Hyderabad, Jamshedpur, Lucknow, Pune and Kochi; Overseas offices in Dubai, Abu Dhabi (UAE) Hong Kong, Singapore and Qatar and factories at Thane in Maharashtra, Dadra, Union Territory and Sanathnagar in Andhra Pradesh.

Subsidiaries Metrovol FZE VIL Overseas Enterprises B.V. Voice Antilles N.V. Simto Investment company Limited Auto Aircon (India) Limited

Awards United Nations' Grand Award for Excellence in Public Service Worldwide, 199394. International Public Relations Associations' Golden Trophy for Excellence in Customer Service, 1994-95. Mumbai Chamber of Commerce and Industry's Good Corporate Citizenship Award, 199596.

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Products and Services Air Conditioners and Water Coolers: Products include window and split air conditioners, Sensicool air conditioners and water coolers. Commercial Refrigeration: Products include chest freezers, Deep freezers, upright coolers, visi-coolers, chest coolers. Air Conditioning and Refrigeration: Voltas has executed installations for different applications including, among others, naval warships and mercantile ships, pharmaceutical production plants, telecommunication and computer facilities, research laboratories, atomic energy plants, power plants, hotels, information technology parks, Hospitals, Air ports, Metro Stations, Petrochemical Plants and many more diverse applications.

Electro-Mechanical Projects: Voltas undertakes turnkey projects in the fields of heating, ventilation and air conditioning ( HVAC ), mechanical, public health, plumbing, electrical, building power and lighting, low current systems, fire fighting and safety systems, for airports, palaces, five-star hotels, convention centers, district cooling plants, defence establishments, research centres, techno parks, training centres, power stations, railways, hospitals, auditoriums, townships, pharmaceutical factories, textile factories.

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Water Management & Treatment : Voltas caters to the vital sector of water management through its principal activity, namely pumping and water treatment projects. Voltas today is established as a total solutions provider for turnkey pumping projects as well as for water, effluent and sewage treatment and water pollution control projects. Besides this, the company also offers a wide range of horizontal split casing pumps manufactured in its works near Mumbai.

Textile Machinery: Voltas is the largest supplier of textile machinery in India.

Mining and Construction Equipment: In conjunction with globally renowned manufacturers, Voltas offers its customers a comprehensive package - proven expertise, long experience, the world's best equipment, and value added product support services. The products offered are:

1. Construction Equipment: Stationary and Tracked crushing plants and equipments. Screening and conveyor system / equipments Hotmix Asphalt plant Excavators and Loaders Dozers, Pipe Layers, Motor Graders

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Mining Equipment Electric mining shovels Rigid Dump Trucks Hydraulic shovels Large capacity wheel Loaders

OTR Tyres

2. Materials Handling: Products include diesel engine driven forklift trucks, LPG driven forklift trucks, battery driven forklift trucks, and warehouse equipment.

3. Chemicals Division: Primary activities are import, indent and distribution of various types of plastics, industrial specialty, fine chemicals and bulk drugs. Besides domestic focus, products like gelatine, ultramarine blue and a variety of agro chemicals are promoted in the export market. International Collaborations Hitachi Limited, Japan, for vapour absorption machines and centrifugal chillers Standard Refrigeration Company, U.S.A., for direct expansion chillers Dunham-Bush Incorporated, U.S.A., for screw chillers Siemens Building Technologies (Asia-Pacific) for building management systems Ruks Engineering Ltd., Canada, for ozone engineered systems

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Costan of Italy for Refrigerated Cabinet Display Unit for hyper market Engineered Systems.

Representations The company is also an Indian representative of a number of leading manufacturers worldwide. To name a few : Aqualon, USA Hercules, USA Huntsman Tioxide, UK LeTourneau Inc., Australia Terex Mining - Unit Rig, USA Terex Mining - O&K, Germany Terrot Strickmaschinen, Germany Mitsubishi Heavy Industries, Japan Fanuc Ltd., Japan Dressta, Europe, USA SIP, Switzerland Hyundai, Korea P & H, UK / USA BL-Pegson, UK Gencor, UK 15

Powerscreen, UK LMW, India Heliot International, France HTT, Switzerland ABA, Germany

The Company has consciously laid emphasis on corporate social responsibility and also on ecology and environment protection. Exemplary corporate citizenship is demonstrated in numerous social upliftment projects, whether independently undertaken or in support of the Tata Council for Community Initiatives.

Joint Ventures Universal Comfort Products Private Limited, Dadra, India Universal Voltas Air-conditioning & Refrigeration Co., Abu Dhabi, UAE Saudi Ensas Company Ltd., Jeddah, Saudi Arabia Lalbuksh Voltas Engineering Services & Trading Company LLC, Ruwi, Sultanate of Oman Weathermaker Limited, Jebel Ali, Dubai SERMO-PM India Limited, Pune, India

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Philosophy

A Heritage of Giving Voltas, true to the Tata tradition of improving the quality of life, has long regarded participation in social development as a whole-hearted preoccupation that enriches the corporation itself. The company has always gone beyond its traditional business and industrial concerns to involve itself in projects that bring about upliftment in the lives of the underpriveleged and the deprived. The concern springs from a deeply held belief that a true corporate vision must encompass more than those to whom the Company markets its services and products. Voltas

understands that the time and resources thus invested and the professional expertise shared with the nation come back to the corporation in the long run as expected dividends of reputation, opportunity and acceptance. Through the years, there have been numerous causes to which the volunteers of Voltas have given freely of their time, their talents and their concern: J.N. Tata Endowment IMPACT Dorab tata Trust Muliple Sclerosis Society of India Shanti Avedna Ashram National Centre for the Performing Arts

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From the Tata Corporate Code of Conduct The Code enjoins signee companies To be equal opportunity employers To provide a safe and healthy working environment

From the Tata Employees' Code of Conduct The Code enjoins Tata employees To conduct themselves with professionalism, honesty, integrity, high moral and ethical standards, be fair and transparent, and be perceived as such by third parties.

Human Resources Philosophy And Policies At Voltas

The cornerstone of the Voltas Human Resources Management philosophy is the conviction that the well-being of the company and of its people are interdependent; and that the company's most valuable assets is its people.

Commitment: To employ the most competent, on the basis of merit

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 To ensure that every employee is treated with dignity and respect, and in a fair, consistent and equitable manner

To create a stimulating, enabling and supportive work atmosphere To aid and encourage employees in realizing their full potential The success of this philosophy depends in a large measure on the manner in which managers and their team members - at every level - carry out their duties and obligations to each other and to the company. Without mutual confidence and loyalty among employees, as well as respect for each other as human beings, the philosophy will not work.

Managers at all levels are committed to the following principles:

Have knowledge of, and accept total responsibility for, the success of the organisation's human resources philosophy, policies and procedures, and to review them with team members to ensure their total understanding. Ensure consistent and fair application of all HR policies Exercise leadership by demonstrating integrity, professional knowledge, courage of their convictions, and concern for the feelings of others. Establish a relationship with team members that encourages a free bi-directional flow of information, permits open discussion of differing views, and allows decision making at the most appropriate levels.

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In the same context, all employees are expected to maintain certain standards in relation to their work, and in representing themselves as the staff of Voltas. They will: Communicate constructive ideas and opinions to managers and team members either proactively, or on request Accept and support decisions made contrary to their expressed positions Apply the highest standards of ethics, integrity and honesty Comply with the company's policies and procedures

Human Resources Management At Voltas

Human Resources Management includes planning, organising, directing and controlling all activities related to recruitment, selection, induction, development, performance management, rewarding and compensation of employees to ensure that: The organisation has, at all times and at all levels, the right type and the right number of competent and committed employees who are working towards achieving organisational objectives, and are thereby meeting their personal aspirations and achieving their individual objectives. The organisation has an enabling environment that fosters competence, commitment and results, and a culture that is focused on customer satisfaction and continuous quality improvement.

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HR Policy On Training And Development

Voltas attaches great importance to continuing education and human resources development. In order to sustain and improve performance and future potential, employees will be provided opportunities for training and development. Nomination to training programmes, both internal as well as external, will be on the basis of identified training needs. The Corporate HR department is responsible for initiating and organizing behavioural, attitudinal and managerial training. Divisional heads are responsible for organizing technical or product-related training. Training needs assessment of each employee will be done by the employee and the immediate manager, and also by the head of division/function. The annual performance appraisal system shall be an ideal avenue for identification of training needs. Every year, a maximum of three to four major training needs should be identified for each employee. Training needs will also be identified on the basis of internal customer satisfaction, surveys and external customer feedback, and on the basis of changes in technology, introduction of new activities, or changes in the business environment which call for newer or different competencies. Development needs would also emerge from succession plans which are developed. The corporate HR department should compile the training, needs and assessment for each division and function, and address the major training needs in consultation with the heads of the divisions, and the HR Manager of the Business Group.

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HR Policy On Recruitment At Voltas

Voltas is an equal opportunity employer. It is the policy of Voltas that all decisions regarding selection and hiring of employees are made solely on the basis of job-related criteria and merits, and to recruit applicants who are suitably qualified or trainable for employment, in accordance with pre-determined job criteria. Every effort will be made to place new employees in positions that best utilize their competencies, and in which they will be able to achieve both success on the job as well as personal satisfaction and opportunities for growth. Voltas will have an annual head-count plan for each division/function, which will be approved by the CMG. The draft annual head-count plan for each division/department should be prepared and submitted to the CMG by February 15 each year, by the Business Group Head and the Division Head, and for each department by the head of the function. This head-count plan should be in consonance with the strategic business plan of the division/function. Vacancies should be filled up only as per the approved annual headcount plan for the division/function. Since the organisation structure and manpower plans with numbers are approved only during the budgeting process, out-of-plan recruitment should be kept to a bare minimum, and will require the MD's approval.

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Management
Board of Directors

Chairman Managing Director Directors

Ishaat Hussain A. Soni N.M. Munjee N.J. Jhaveri S.D. Kulkarni Yash Paul S.N. Tripathi Ravi Kant N.D. Khurody Noel N. Tata

Corporate Management

Managing Director Executive Director Executive Vice Presidents

A. Soni S.N. Tripathi S.R. Srinivasan P.N. Dhume M.M. Miyajiwala

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Vice Presidents

A.J. Gole S. Bilgi

Business Cluster

Air Conditioning and Refrigeration Business Group

S.R. Srinivasan Executive Vice President and Chief Operating Officer

Unitary Products Business Group

S.N. Tripathi Executive Director and Chief Operating Officer

International Operations Business

P.N. Dhume

Group Executive Vice President and Chief Operating Officer. Engineering Products Business Group Vice President S. Venkatraman

Milind Shahane General Manager

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Business Divisions

Air Conditioning and Refrigeration Business Group

A.K. Joshi Vice President

Unitary Products Business Group Cooling Appliances Business Divisions K.J. Jawa Vice-President

Commercial Refrigeration Business Division International Operations Business Group

C.J. Jassawala Vice President

Electrical and Mechanical Division

V.M. Joshi Vice President

Pumps and Projects Business Division

R.P.Mahajan Vice President

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Engineering Products Business Group

Mining and Construction .Equipment Division

R. Khoda General Manager

Textile Machinery Division

Sudhir Sharma General Manager

Machine Tools Division

Philips Mascarenhas Departmental Manager

Materials Handling Business Division

Pradeep Sharma General Manager

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BUSINESS STRATAGIES

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BUSINESS STRATEGIES
TATA has outlined 10 best ways that help multiply the companys revenues and profits after its long experienced stay in the market. The company calls them their Business Multipliers. They are discussed below in detail:

Test All of Your Marketing Run Only Direct Response Advertising Develop a Powerful USP and Use it in All of Your Marketing Create a Profitable and Systematic Back-End Always Determine and Address the Real Needs of Your Customers and Prospects; Always

Recognize that You Have to Educate Your Way out of Business Problems ..You Can't Just Cut the Price

Make Doing Business with Your Company Easy, Appealing and Fun Always Tell Your Customers the Reasons Why Don't Stop Marketing Campaigns that are Still Working Just Because You're Tired of Them

When You Prepare any Form of Marketing, Focus on the Intended Prospect and No One Else

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BUSINESS MULTIPLIER ONE Test All of Your Marketing The purpose of testing is to demand maximum performance from every marketing effort. If each of your field salespeople averages 15 calls a day, doesn't it make sense to find the one sales pitch or package that lets them close twice as many sales and increases their average order by 40% - 100% with the same amount of effort? You can easily achieve immediate increases in sales and profits merely by testing. Tomorrow, have your salesmen try different pitches, different hot-button focuses, different packages, different specially priced offers, different bumps or upgrades, different follow-up offers, etc. Each day review the specific performance of each test approach, then analyze the data. If a specific new twist on your basic sales approach out-closes the old approach by 25-50%, doesn't it make sense for every salesman to start using this new approach? Test every sales variable. Any positive or negative data can help you to dramatically manipulate the effectiveness of your sales efforts. But don't stop at merely finding those approaches, offers, prices, or packages that outperform the others. Once you identify the most successful combination, your work has just begun. Now you should find out how high is high! Keep experimenting to come up with even better approaches that out-pull your current control. Your control is the concept, approach, offer, or sales pitch which has consistently proven, through comparative testing, to be the best performer. Until you establish your control

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concepts, techniques, and approaches, you can't possibly maximize your marketing. Once you find control concepts or approaches, keep testing to see if you can improve on their performance, thereby replacing one control with a better one. Price Testing Test your prices. Different prices often outperform one another on the same product by an enormous margin. Why does one price out-pull another? I don't know. Probably for a lot of reasons: psychological image of value, perception of quality, etc. Every situation is unique, so I implore you to test several different prices. You'll be amazed at the difference in profit and total orders one price will produce over another. Testing applies not merely to outside sales efforts but to every aspect of marketing. If you run ads in newspapers or magazines, test different approaches, different headlines, different hot-button emphases, different packages, different rationales, different pricing, and different bonuses on top of the basic offer. Test different directives to the reader or listener on how to respond and what action to take. Test positioning in the front, back, right, or lefthand side of the page. Test where your commercials run. Make specific offers and analyze the number of responses, traffic, prospects, and resulting sales for each specific ad. Then compute the cost-per-prospect, cost-per-sale, the average sale-per-prospect, average conversion-per-prospect, and the average profit-per-sale against your control. This reveals the obvious winner, the control that you will keep running until a better control beats it.

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BUSINESS MULTIPLIER TWO Run Only Direct Response Advertising Almost every print ad, mailing piece, radio, or television commercial we see is based on institutional-type advertising. At best, they produce deferred results. At worst -- and this applies to 95% of all the advertising -- institutional advertising is an ineffective, vacuous, wasteful expense that accomplishes no productive purpose whatsoever. Most institutional advertising tells you how great the company paying for the advertising is, or how old and stable they are, or some other cute and non-compelling foolishness. Institutional advertising, as practiced by most advertisers, is wasteful folly. It doesn't convey any compelling reason for the reader to favor your business over another. It doesn't make a case for the product or service you sell. The claims made by most institutional advertising are pathetic: Buy from me instead of my competitor for no other reason except my selfishness and avarice. Institutional advertising doesn't direct the reader, viewer, or listener to any intelligent action or buying decision. It does nothing productive but take up time, space and attention and wastes enormous could-have-been-productive assets. Direct response advertising is, by its very name, self-explanatory. It is designed to evoke an immediate response, action, visit, call, or purchasing decision from the viewer or reader. Direct response advertising tells a complete story. It presents factual, specific reasons why your company, product, or service is superior to all others, on an analytically and factually supported basis, as opposed to the mere conjecture used in institutional advertising.

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Direct response advertising is salesmanship in print or over the air. As salesmanship, it makes a complete case for the company, product, or service. It overcomes sales objections. It answers all major questions and it promises performance or results, and backs the promise with a risk-free warranty or money-back guarantee. Direct response advertising directs people to action. It compels readers, viewers, or listeners to visit your establishment, call you, send in money, or drive their auto down to trade it in on a new model. Used effectively, direct response advertising can produce tons of super-qualified, favorably disposed prospects; it gets people to call, write in or buy. You can analyze the value, profitability and performance of virtually any direct response ad you run because it produces something you can track, analyze and compute. Institutional advertising produces no results to speak of. If you are running institutional ads, change them to direct response. Give your prospects information that's important to them, not you. Give them facts and performance capabilities of your product or service or tell them about your guarantee. Give them reasons why your product is superior to your competitors, on a human basis that the prospect can understand and appreciate. Direct response advertising is much more effective than institutional advertising because your prospect doesn't care one iota about you or your motivations. All the prospect cares about is what benefit your product or service renders to him. How will your product improve the prospect's situation and save him effort, time and money? How will your product or service improve the prospect's life, and why? Tell him the answers to these kinds of questions and you'll own your market, pure and simple.

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By merely switching over from institutional to direct response advertising, you should improve your productivity many times over. BUSINESS MULTIPLIER THREE Develop a Powerful USP and Use it in All of Your Marketing The Unique Selling Proposition (USP) is quite basically the essence, or the quintessential element, of your entire business concept. The Unique Selling Proposition is that unique advantage that distinguishes your business, your enterprise, from all your competitors. Most people who are in business couldn't begin to clearly articulate their USP in 60 seconds or less. Sadly, if you can't articulate it, it's highly improbable that your customers and prospects can comprehend it. So, your first step is to decide what your USP is. Find out what is unique about your business, product or service; then find a way to clearly state it to your customers. Once you decide what your best Unique Selling Proposition is, you should integrate it into everything you do, every aspect of your business -- advertising, personal communications, telephone calls, letters. Maybe you render more service than anybody else; maybe your product has more quality than anybody else; maybe you offer greater value than anyone else; maybe your discounts are greater because your markups are less. Bottom line, there's some Unique Selling Proposition that you should basically build your entire business around! Most companies try to be everything to everyone, and they can't understand why they don't have any unique advantage, why they can't really take off ahead of their competitors. The

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problem is that the business owner has never sat down and said, "What distinguishes my company from my competitors? Am I more expensive, less expensive? Do I render more service, give better value, give a better guarantee, give two when you buy three, or three when you buy two?" Most companies don't have a Unique Selling Proposition. Yet it's very important. It's the essence of your whole business. You can't build a consistent, effective, marketing, advertising, and selling proposition if you just send messages out and your customers don't know what you're really representing, what it is that you are, that your competitors are not. You may want to redefine your Unique Selling Proposition based on whatever is going on in the market. We've found that you can circumvent almost anyone's advantage by having your Unique Selling Proposition counter whatever is in the market. If everyone was selling the same product for $29, maybe you should sell it for $27, or give them more value, or give them three times the guarantee, or give them something free when they buy it. But come up with a Unique Selling Proposition that differentiates you from your competition, and tells people why they should buy from you. You simply must develop a Unique Selling Proposition and integrate that into everything you do -- your ads, your salespeople in the field, your sales clerks in the retail store, your customer service department. It's very important. BUSINESS MULTIPLIER FOUR Create a Profitable and Systematic Back-End

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Most companies never address the back-end or residual part of their businesses. But the back-end is all-important. In my original mailing piece I discussed how one of my clients offered to sell a collection of rare coins to his new customers for just $19. He actually lost a few dollars up-front on every sale. Up-front is the key, because of the 50,000 people who bought a coin set at $19, nearly 10,000 came back and bought on the back-end for $1,000 or more. My client made $2,000,000 (yes, two million dollars!) on the back- end. But that's just the first step. Once every three months this client goes back to the original 50,000 people who bought the $19 coin sets and gets at least 250 people to buy at least $1,000 more in coins. That translates into $50,000 in back-end profits every three months, above and beyond the $2,000,000 I've already told you about. My client then goes back to those 10,000 people who bought something for $1,000 and gets about 1,500 of them to buy more within the first nine months. The average additional order is $5,000, which makes my client another $1,500,000. And those 1,500 customers keep ordering an average of oneand-a-half times a year. That means an additional $1,500,000 in business every year comes from the back-end. The back-end is vital to any business. Look at the above illustration. If my client had only made that first $19 sale and not cultivated the back-end, he'd have missed out on many, many millions of dollars in business, and actually lost money on the customer.

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Until and unless you can identify how much back-end business you can expect, you won't know how profitable or unprofitable an ad, sale, customer or promotion really is. For example, if you run $10,000/week ads in the newspaper, and they produce $9,000 in retail sales, it looks like you are losing $1,000 or more (I' m not figuring the cost of the product sold or services furnished). But are you losing in the long run? If you induce those new customers to purchase a similar product or service from you within 45 days, you double the value of the customer, and all of a sudden you're far into profit instead of loss. Induce them to come back once every three months and repeat the average transaction, and you've set up an annuity. All from an original $1,000 loss, which you subsidized. But within three months or less the back-end business should offset your subsidy several times over. The same dynamics apply to salespeople and sales. If a salesperson costs you $2,000 a month in base salary and all he sells each month is $2,000 in new business, it sounds bad. Yet, if the new customers do repeat business, or, if you develop a back-end that converts normally one-shot sales into repeat customers, you accrue fabulous future income, even if your salesperson loses you money at first. If every month you bring on 20 customers who initially spend $100, and you get them to spend $100 every three months, soon you'll have 600 people spending $100 every three months. That's $60,000. Another part of back-end dynamics is harvesting the residual value of a customer. This takes a lot of thought, experimentation, and carefully documented analysis.

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Look for logical product or service extensions to offer your customers. Experiment with salesmen locking clients into an ongoing purchasing commitment. Experiment with capturing their names and telephone numbers, and mailing them a specific offer, or making a specific offer by phone, and measuring the response. If you are basically a one-product or one-service company, seek out other products, companies or services to offer your customers as your back-end.

Be open-minded about other products, services and companies that might fit, based on either demographics or areas of interest.

Religiously, work the back-end over and over again.

BUSINESS MULTIPLIER FIVE Always Determine and Address the Real Needs of Your Customers and Prospects 90% of the businesses I look at never precisely determine the needs, desires, or requirements of the people to whom they are trying to sell. How can you expect to adequately fill someone's needs if you never take the time to understand them? It's laughable. But few companies seek to meet their customers' needs. Those companies that do understand their customers' needs and attempt to satisfy those

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needs seem to end up with all the business. You can end up with all the business too, if you'll take the time to learn what your customers need. Let's probe the problem a little. To induce someone to favor you with their business, you normally have to offer them some need-filling advantage. Let's review just a few of the possible needs people want filled: convenience, better quality, lasts longer, saves time, looks better, performs more functions, state-of-the-art, saves you money, makes life less difficult (saves effort), makes you more money, more effective, etc. What do your customers want or need most in the product or service you offer? Do they want the convenience of knowing they can go down the block and get it from you, or the knowledge that your firm stocks or offers more items, or sizes, or products than any other company? Do they want the top-of-the-line product or service? Or, do they want highly personalized service, attention, advice and instruction? Perhaps they merely want to acquire the kind of goods or services you sell at the lowest possible price. Or maybe price alone isn't what they're after. Maybe they want the best guarantee, service policy or service to support the sale. I don't know which need or which combination of needs your potential customer seeks more than anything else, but that customer does seek fulfillment of some singular need or combination of needs, and sometimes the customer doesn't even fully realize his need. But once you find and fill that need, you own your business niche. If you don't know what

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needs your customer most wants you to fill, start by recognizing that no one can be all things to all people. You dilute your image as a need-filler when you try to do that. So, first determine which needs you can fill, consistent with who you are, what your business is and how you operate. Then talk to clients, prospects, and customers, and have your salespeople do the same. Experiment with the image you convey in your advertising and promotion. Monitor the consensus and gauge the feedback. Let your customers tell you, which specific needs they most want filled, then determine which of these needs you can actually fill. Then, don't merely fill those needs silently. Make sure your customers, prospects, salespeople and your entire marketplace learn that your business listened, and that you finally did something to satisfy the fulfilled needs of your customers. Continuously (albeit tactfully) inform, educate and outright point out that your company is filling those needs for your customers. Change your ads to feature these specific need-filling advantages. Have your field or instore salespeople point out what you are doing to serve your clients' needs. Send out letters that do the same. Phone your customers and inform them that you're prepared to fill their needs. Once you determine precisely what your customers' needs are and you commit to filling those needs, then do it. If you decide that service is the critical element, offer the best service, the fastest service, the most skilled service people, the most knowledgeable staff, etc. If top quality is the need you decide to fill, don't offer mediocre goods! If you claim to

39

be the best-quality business, make darned certain you're a regular fuss-budget about what you sell. If you promise the lowest price, keep that promise. Integrity requires it. If you don't genuinely fill the needs you purport to fill, your customers will soon abandon you. BUSINESS MULTIPLIER SIX Always Recognize That You Have to Educate Your Way Out of Business Problems ... You Can't Just Cut the Price I am frequently asked to help a company out of a problem. Often, it's to bail a company out of an inventory overstock or stimulate patronage for some service or product that's just not selling. How do I do it? What's my secret? The answer is so basic, simple and obvious you'll laugh: I tell my clients to tell their customers and prospects the truth. For example, if you have had 9,000 widgets gathering dust in your warehouse for six months, and you have $90,000 tied up in them, but no one's asking for widgets, write a letter, or display ad, or TV/Radio commercial that tells your customers and prospects that (1) you have a huge inventory of widgets, (2) the widgets are good for such-and-such, (3) you are interested in selling them retail, and (4) their quality composition/constructive service functions and performance criteria are such-and-such. Then tell people what other retailers or wholesalers would normally offer these or comparable widgets for, and tell them the price you're willing to sell a widget or a specific quantity of widgets for. Then tell the prospects why you' re selling the widgets to them so

40

cheaply -- the real reason -- but with a delightful embellishment. For example, tell the prospect the truth: that we have 9,000 widgets in our warehouse and the real rush is over until next fall, so we'll sell them for our actual cost, or even for our cost, less 20%. But add to that explanation a parenthetic exclusive qualifier like: But we're only offering this value to our best customers as a reward for your patronage. Or ... But we're only making this offer to new, first-time customers who buy an equal amount of other products or services. Or ... We're only making this offer available to people who buy (some other very specific product). An important point -- in fact, it's vitally essential -- is that your customers and prospects won't understand or appreciate a value, or a bargain, or a service, or a benefit, unless and until, you first educate them to appreciate it. Merely offering a product or service at a specific price (even the best price) doesn't compel excitement, or a response, until you tell people what they're getting, what a value it is compared to other products and services, and why you can offer such value. This applies to any problem. When your business has a problem (say you've taken money or advances for a product or service) and something goes wrong, precluding you from fully or promptly or properly

41

rendering that service, never, ever fail to acknowledge your screw-up. Failure to tell the truth is a sure way to commit integrity suicide. Be up-front and honest, and call, write or individually approach your customers and apprise them of the problem. Tell them precisely what you were supposed to do and tell them why you can't fulfill your obligations. Tell them with certainty when you will be able to perform. And this is the clincher: Give them some wonderful consideration to compensate them for being put out. Give them a small gift that costs you a lot less than the profits you'll relinquish if you're forced to return their money. Or, send them a discount coupon, or rebate a portion of their original purchase price. Whatever consideration you offer, tell them why you're doing it, apologize for what went wrong, thank them for their business, and assure them honestly that you can and will rectify the problem. Let them know that everything will be put right by such-and-such a time or method.

BUSINESS MULTIPLIER SEVEN Make Doing Business with Your Company Easy, Appealing and Fun It surprises me that most companies never put themselves in their customers' or prospects' position. Why else would they make doing business with them so hard? If someone calls your company and a telephone operator is their first contact, can that operator make a compelling response to the prospect or customer's requests?

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When people come into your store, how well versed are your sales clerks? How much time have you spent in preparing dialogues, phrases, questions, and advice for your people to ask or offer to customers? How willing are you or your people to answer questions and render truly informative advice, even if it does not directly or immediately benefit you? How easy is it to find things in your store? How conscientiously do you follow up on sales requests, orders and inquiries? How well do you keep customers informed on the progress of their order? How much do you take your customers, prospects, and business for granted? By merely stepping outside your office and walking up to your business wearing the hypothetical shoes of a prospect, you should see a lot of flaws in your operation. Once they are remedied, you can dramatically improve your current and repeat business potential. By making it inviting, easy, informative, non-threatening, educational and inspiring fun to do business with you, you'll lift your company above your competition. Remember: 1. You cannot service too much. 2. You cannot educate enough. 3. You cannot inform too much. 4. You cannot offer too much follow-up and follow-through. 5. You cannot make ordering too easy. 6. You cannot make calling or coming into your business too desirable. BUSINESS MULTIPLIER EIGHT Always Tell Your Customers the Reasons Why

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Whenever you make an offer, ask for a sale, run an ad, have a salesperson make a proposition to a customer or prospect, or offer a product or service for sale at a specific price, always tell the reason why. Why can you sell a product or service at a lower price than your competitor? Is it lower overhead or your volume buying? Do you buy odd-lot inventories? Do you not give all the service? Why is your price so good? If your price is high, again, tell the customer or prospect why. Do you offer a far superior product than the norm? Is your product made with demonstrably finer materials? Is your product designed to last or perform two-and-a-half times longer than your competitors? Is it handmade? Is it made twice as durable or with three times the personal stitching or handiwork of some machine-made similar product? Why? If your price or the package is an especially appealing value, tell me why you're making the offer to me. Is it because I'm going to order from you for the first time, and it's an exclusive offer to first-time customers? Is it because you got a great purchase on all or part of the components in the package, and you want to pass the savings on? Or, is it because you're overstocked and you want to get your capital out of slower-moving inventory, so you're able and willing to sell me your product this one time only at an actual loss -- far less, in fact, than what any other company could or would legitimately offer the product or service for?

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Please, tell me your reasons why! Why should I patronize you instead of your competitors? Tell me what you are doing, will do, or will avoid doing that makes favoring your firm better for me than dealing with someone else. Why can your salespeople handle my purchase better than someone else? Tell me all the reasons why. The more embraceable, factual, believable, credible and plausible reasons you give me for dealing with your business, the more compelled I am to favor you with my business. BUSINESS MULTIPLIER NINE Don't Stop Marketing Campaigns that are Still Working Just Because You're Tired of Them Many companies promiscuously change campaigns in mid-stream. In the process they:

1. Don't let the cumulative effect of a winning concept work for them. 2. Don't allow the dynamics of testing to work for them. 3. Make a patchwork quilt of their company's image and persona. Business people get tired of their advertising and marketing campaigns long before the marketplace ever tires of them. Remember the section on testing at the beginning of this section? Don't violate the tenets I taught you! Test to find out which ad, marketing, or sales approach works best. Then only change or alter that approach if and when a new ad or concept outperforms your control.

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Continually experiment with new ideas, ads and concepts without abandoning the one that works best. If an approach works, don't arbitrarily abandon it. Only replace an approach when you've verified and validated a more successful and profitable successor. Most ads, commercials, etc., produce only a modest percentage return every time they are run. Direct response ads usually produce a .5% to 3% response. You may have to run them 200 times before you even begin to saturate your market. Just because you are sick of seeing, hearing, or watching the same marketing does not mean your marketplace is also sick of it. The only vote that's relevant is the marketplace. Test, test, test. Test different concepts, approaches, and ideas, but never, ever abandon your control until you find something that pulls better. Reread the section on testing. When you are tempted to abandon a winning, producing, profitable approach that you are tired of, try to develop new approaches using a related or similar view. If you've found the combination to your customers' responsiveness, keep going until the combination stops working. BUSINESS MULTIPLIER TEN When You Prepare Any Form of Marketing, Focus on the Intended Prospect and No One Else How many times have you scanned an ad in a newspaper or magazine and not had the slightest idea what it was all about, or whom the information was intended for? Ads, mailing pieces, or commercials, all need a headline.

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A headline is an ad for the ad. Its purpose should be to point out only those who are most qualified to be a prospect for your proposition. Without exception, humorous, abstract, or circuitous ads or commercials are a waste. If you run ads in general interest publications, TV, and radio, and your product is pest control, you should not use headlines or opening statements like, "Got the bug to clean the house?" or "This problem affects every homeowner." Instead, fashion a headline or opening that states the purpose of the ad and qualifies the reader. For example: If Your Home is Plagued by Ants, Roaches, Mice or Rats, We Can Eliminate the Problem with our Exciting, New Monthly Maintenance Service. Address your target audience in the headline with teaser copy or the opening line. If you want to reach people over 45, for instance, say: "If You're 45 or Over and Thinking of Adding to, Replacing, or Acquiring Life, Health or Disability Insurance, this Information ... or Insurance Coverage for People over 45 with No Physical, No Waiting, No Restrictions." If you're trying to reach health or weight-conscious people for membership in your health club, use a headline or opening line like this: "Here's a Way to Become Tight, Lean, Attractive, Radiant and Remarkable Healthy in Just 45 Minutes, 3 Times a Week." If you want to reach people interested in furniture, don't use a cutesy headline. Instead, try: "Looking for a Rs.12,500 Sofa Value for Just Rs.9499? We've got 150 in Stock Right Now." Or, "We Sell Expensive Furniture at Deep Discounts. Our Average Price is 45% Less Than the Manufacturer's Suggested Price."

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Whatever you sell, and whomever you want to reach with your story or message, be specific. Telegraph your message directly to your prospective customers, and tell them what you're offering. Always remember these points: 1. Attract the attention of your target audience in your headline or opening remarks. 2. State your proposition or offer. 3. Use the rest of the ad to develop, support and present your offer and your reasons why the prospect should embrace it. 4. Finally, tell that prospect how to act.

BIG BANG STRATEGY

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BIG BANG STRATEGY ADOPTED BY VOLTAS

Voltas over the year worked out a Big Bang Strategy where they put together a plan covering the areas of product,people,service,distribution and brand.The efforts of the highly aggressive and motivated team bore fruit with clear-cut gains in all these areas.Though the time span established for achieving the objectives was 3 years but within the first year itself voltas grabed the No 2 position.Their share in the market grew from a 6.8% in 2001 to 9.7% in 2002. Other areas also showed tangible gains. Share of voice saw a strong improvement from 12% in 2001 to 24% by the end of 2002.

IN DESIGN Voltas products compared well with anything else in the market.Initially there was no clear benchmarking against competing brands,whose new-generation entrants had a serious head start.There was no model which catered to the low-end market ,nor any which responded to the shift of ACs from the technical to the white goods category, from premium to affordable, from luxury to comfort. The immediate need was to provide a much-needed jolt of advanced manufacturing and design know-how, such as new invertor technology in splits, and sleek contemporary styling. There come the joint venture with Fedders International,which was after all the leading player in the US room AC market, with a major world-wide presence as well.

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IN DISTRIBUTION There was a widespread network in place, and a loyal family of long established dealers.The downside here was a lack of incentive and initiative in the traditional network as well as low dealer confidence and a high default rate. Perhaps a policy of only exclusive dealers was too limiting,calling for appointing non-traditional,multi-brand and even the competitions dealers.But the market trend was all the other way Towards single-product dealers, encouraged by increasing credit extension.In centivisation was the name of the game Voltas took the aggressive stance of increasing the dealer strength from 650 at that time to 1700 within three years. Policies were revamped to more dealer friendly and those which would eventually support both exclusive sales and service.dealers and the new age multi brand outlets. In marketing too,inertia seemed the norm,with low levels of aggression and proactivity.The all-important influencing base of architects and consultants lacked a sustainable faith in the product,not helped by poor key accounts management.

IN BRAND EQUITY Perhaps strengths were in way weaknesses too.Certainly the voltas name was deeply entrenched as an age-old Tata company with years of experience.But that very same traditionalism could mean a lack of freshness and innovation,which led to poor recall and a fuddy-duddy image,especially in the household segment.Certainly the new generation of consumers was more aware of newer and hotter names in cooling,with

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their combination of high-tech and international pizzazz.Today the way the brand has revived is a case study in itself.The voltas brand now is clearly amongst the top 3 brands in the AC industry.

IN SERVICE Reliability and responsiveness had always been voltas hallmarks and discriminators-but even here,there were weaknesses.Spares were often unavailable, or costly.Service processes needed to be standardized.The customer database was not rigorously maintained, and follow-up was poor.Schemes for service franchises still awaited implementation; while private operators competed strongly with their lower rates to worsen things the company was ay some stage even competing with its dealers. The company after revamping its entire service operations, is very strongly betting on service.

IN ITS COMMUNICATIONS COMPAIGN A key thought driving the compaign creation was:lets move from a lower to higher order of platform.Lower order position is based on mundane features and product promises power consumption, ruggedness,wide range, and noiselessness.At a higher order,these translate into benefits, and address universal human concerns.Typical of these,for example,are health,peace,mother love,quality of life and environmental sensitivity.Voltas decided to jump to a higher order which would grow out of its defining features like uniform cooling,energysaving,timer and air filters.Attributes of an AC,which operates

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intelligently, and is therefore the choice of an aware and intelligent person. In other words,intelligent cooling.ACs with IQ. It was this statement,which allowed voltas to take the high ground among the competition.It provided a weapon against rival feature claims, and a lever with which to prod the trade.It supplied a peg on which to hang awareness building advertisement,and a memorable phrase suggesting all kinds of versatility in the product. Finally, it had a cerebral and cultural ring entirely suitable for the voltas ethos. The entire company too had to be taken to a higher order in public perception.These were products of global standard, and the company needs to issue its international credentials.

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RESEARCH METHODOLOGY

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OBJECTIVES OF STUDY

The objectives of the study are:

To gain a thorough knowledge about the Voltas ACs.

To find out the factors that affect the sales of ACs in the market. To know the satisfaction level of the retailers & their perception

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RESEARCH DESIGN

Research Design specifies the methods and procedures for conducting a particular study. A Research Design is the arrangement of conditions for collection and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure.It is of two type:

1.Exploratory Research : Exploratory research was undertaken to develop some specific hypotheses relative to possible actions. It involves the study of prior data available like secondary data, survey of expert and case study.

2.Conclusive Research : It involves systematic collection of the information needed,its analysis and finding as per research objective.Conclusive research provides information that helps the executive make a rational decision.Conclusive research studies can be classified as either descriptive or experimental.

Basically I have used Descriptive research method because the data is collected for a definite purpose.It ensures minimum bias in the collection of data, to hold cost to minimum & to reduce errors in interpreting the data.

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SAMPLING

Sampling is the selection of representative from the universe. Lower total cost and greater timeliness are the major reasons data are collected by sampling rather than by complete enumeration .Greater accuracy of individual measurements may be possible.Fewer fieldworkers or observers will be needed,and these may be more carefully selected and supervised.

SAMPLE DESIGN
A Sample design is a definite plan for obtaining a sample from a given population . it refers to the technique or the procedure adopted in selecting items for the sample.

SAMPLE UNIT
The sampling unit is the basic unit containing the elements of the population to be sampled.In my study the sample unit are the retailers who kept the Voltas ACs.

SAMPLE SIZE
The sample size is the number of the elements of the population to be sampled is chosen. The total sample size is 20.

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SAMPLING METHOD
Simple random sampling is chosen for my study, which is a simplest possible probability sampling method, because each sample has equal and independent chance of being included. It eliminates chances of bias due to personal judgement. Sample selected is more representative to population.It is reliable & saves time.

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DATA COLLECTION

a)

Primary Source

Primary data are those which are collected afresh and

for the first time and thus happen to be original in character Primary data was collected mainly through structured questionnaire. The questionnaire was administered personally to Retailers.

b)

Secondary Source

Secondary data are those which have already been

collected by someone else and which have already been passed through the statistical process. Secondary Data includes various publication of the companies, newspapers , books,periodicals, journals and websites.

In this project I have used both type of data .I have used Questionnaire method for collecting primary data for our project and secondary data for companys detail.

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DATA ANALYSIS & INTERPRETATIO N

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Tabulation of the data regarding storage of voltas AC Options Yes No No. of retailers 20 0

Graph showing retailers who keep voltas AC

No. of retailers 30 20 10 0 Yes Response No

Interpretation: From the 20 respondents, all of the retailers kept the voltas AC..

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Tabulation of the data regading brands competing with voltas AC Brands LG Whirlpool Carrier Samsung Hitachi Number of retailers 18 11 15 10 7

Graph showing brands competing with voltas

No. of retailers 20 15 10 5 0 LG Whirlpool Carrier Brands Samsung Hitachi

Interpretation The brands that compete directly to voltas in view of retailers are LG which is favoured by 18 of them,similarly 11 in favour of whirlpool,15 (carrier),10 (Samsung),& 7 Hitachi.

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Tabulation of the data regarding model of the AC mostly demanded Type of AC Window AC Split AC Floor standing Multi split AC Percentage of retailers 60 20 8 12

Graph showing type of demanded AC

Percentage of retailers 80 60 40 20 0 Window AC Split AC Floor standing Multi split AC

Type of AC

Interpretation: 60% of retailers favoured the window AC as mostly demanded type of AC,while 20% favour split AC,8% floor standing & 12% multisplit AC.

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Tabualation of the data regarding features enquired while buying AC Features of AC Cooling capacity Power consumption Compressor Remote/Non-remote Number of retailers 16 13 11 9

No. of retailers

G raph showing features of A C enquired while buying

20 15 10 5 0

Remote/

capacity

consum

Cooling

Compre

Features of A C

Interpretation: The features that being enquired while buying AC are cooling caacity which is favoured by 16 retailers,13 of them favours power consumption,11 compressor & 9 remote or no remote features.

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remote

Power

ption

ssor

Non-

Tabulation of the data regarding motivating factors to buy AC Motivational factors Better cooling than coolar De- humidification Unique features Status value Affordability Comfort Maintenance Number of retailers 12 11 9 9 18 15 7

No. of retailers

Graph showing motivational factors for buying

20 15 10 5 0

Affordab ility
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Motivational factors

Interpretation: The motivational factors are better cooling which is favoured by 12 retailers,Dehumidification(11),unique features & status value is favoured by 9 retailers each,affordability (18),comfort(15) & maintenance(7).

Mainten ance

Better cooling

Unique features

Tabulation of the data regarding criterias important from sales point of view Criterias for sales Advertisements Special offers Product features After sales service Price Number of retailers 10 10 11 15 16

Graph showing criterias important for sales

No. of retailers 20 15 10 5 0 After sales service Special offers Product features Advertis ements Price

Criterias

Interpretation: The important criterias for sales in view of retailers are advertisement & special offers which is favoured by 10 retailers each, product features (11),after sales service(15),& 16 favoured price.

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Tabulation of the data regarding effective medium of advertisement Medium of advertisement Print media Electronic media Outdoor display No. of retailers 14 18 6

Graph showing effective medium of advertisement

No. of retailers 20 15 10 5 0 Print media Electronic media Outdoor display

Medium of advertisement

Interpretation: 14 retailers favours print media as effective medium of advertisement,while 18 of them opt for electronic media & 6 favours for outdoor display.

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Tabulation of the data regarding common complaints of consumer Complains Gas leakage Remote functioning Noise Insufficiency in coolang Number of retailers 9 10 13 17

Graph showing common complain in AC

No. of retailers 20 15 10 5 0 Gas leakage Remote functioning Noise In sufficiency in coolang

Complain

Interpretation: In sufficiency for coolang is the most common complain as told by 17 retailers,13 told that it is noise,while 10 of the retailers favours the remote functioning & 9 opt for gas leakage.

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Tabulation of the data regarding spares parts availability Options Yes No No. of retailers 12 8

Graph showing easily availability of spares parts

No. of retailers 15 10 5 0 Yes Response No

Interpretation: 12 of the retailers responded favourly for easy availability of spares parts while 8 of them responded negatively.

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Tabulation of the data regarding flexibility in credit policy Response Yes No No. of retailers 20 0

Graph showing flexibility in credit policy

No. of retailers 30 20 10 0 Yes Response No

Interpretation: All of the retailers want the flexibility in credit policy.

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Tabulation of the data regarding incentives provided by company Not Satisfied 4 Least Satisfied 3 Satisfied 7 Fully Satisfied 6

Voltas

No. of retailers

Graph showing satisfaction level of retailers towards incentive

8 6 4 2 0 Least satisfied Fully satisfied Not satisfied Satisfie d

Satisfaction level

Interpretation: 6 retailers was fully satisfied with voltas incentive policy while 7 was satisfied & 4 and 3 are not satisfied and least satisfied respectively.

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Tabulation of the data regarding overall market reputation of Voltas AC Response Excellent Good Average Poor Number of retailers 7 10 3 0

Graph showing overall market reputation of Voltas AC

No. of retailers 15 10 5 0 Excellent Good Average Poor Response

Interpretation: 7 of the retailers rated excellent voltas AC for overall market reputation while 10 of them favours for good & 3 for the average reputation but none of them rated it as poor performer

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LIMITATIONS

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LIMITATIONS OF THE STUDY

Following are the limitations of the study Since the study is confined to Ghaziabad only, the findings cannot be generalized about other parts at large. There may be the biasing from the side of retailers. Due to scarcity of time it was not possible for me to access every outlet.

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FINDINGS

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FINDINGS

After the study following are my findings:

They are not at all getting proper and timely delivery from the company due

to which they sometimes go out of stock which affects their business.

They also complained that the After sale service part of the company also

lacked in a big way since after many reminders no one from the company bothered to come and attend the complaints. They also complained that many a times the telephone at the Call center keeps on ringing and no one responds.

The Retailers complained that they do not get any timely information about

the products or the schemes launched by the company due to which they have to suffer misunderstanding between them and the customers.

According to them,the brands like LG,Samsung ,Hitachi,Carrier and

Whirlpool give the Voltas a direct and fierce competition in the AC segment.

It was found that, Window AC is the mostly demanded AC as told by many

retailers.

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Cooling capacity of AC and its compressor are the features which are

mostly enquired while buying AC.

The affordability & comfort mostly stimulates the mind of consumer for

buying AC.

For increase in sales, the price of the AC and after sales service play a very

dominant role.

Most effective mediums for advertisements are the print and electronic

media.

Some retailers complained that they received complaints of gas leakage Though the complaints were rare but they insisted

from the consumers.

improvements on this part.The retailers also received some complaints regarding handling of Remote. They were also rare and so not a matter of great concern.

Spares parts availability is the matter of great concern because some times it

is a costlier matter.

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CONCLUSIONS & RECOMMENDAT IONS

77

CONCLUSIONS & RECOMMENDATIONS

Retailers want timely delivery from the company.

The concerned people in the

company should make some more efforts to provide timely delivery to the dealers and the retailers who are associated with the company from a long time and provide big sales to the company (if not all). The company should also be more attentive towards the new dealers and retailers of the company as it would encourage them to perform better and give better sales to the company.

Good After Sales Service is what that is needed. Many retailers have complaints regarding the Service part of the Company. They complain that the company is just concerned with the sales of the products. Once the product is delivered, no one from the company bothers to attend the complaints that they have with the products. This is directly affecting the Goodwill of the company in the market. The company should employ more efficient people to keep a track of the complaints that are received from the retailers (also the customers). If needed the company should recruit more people in the service department so that the complaints are attended quickly as they are received.

The company should inform about its new launches (whether products or schemes) immediately to the retailers so that they can prepare can execute their actions accordingly. This would also help in reduction of complaints regarding misunder

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standing between the retailers and the customers. The company can issue letters or create an information system through which the retailers are able to keep themselves in touch with the latest launches and information from the company.

The spares parts of the ACs should be easily available and the cost incurring in it should also be less.

Mass media Promotion campaigns that are really good and effective and attract the customers attention should be carried from time- to- time. They should be placed in Newspapers, T.V., and Internet. This will help the brand to remain in the peoples mind.

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ANNEXURE

80

QUESTIONNAIR E

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QUESTIONNAIRE
Retailers Name: Shop Address: Tel:

1. Do you stock Voltas ACs ? Yes No ( ) ( )

2.Which other brands are competing with Voltas ACs ? LG Carrier Hitachi ( ) ( ) ( ) Whirlpool Samsung ( ) ( )

3. The model of the AC that is mostly demanded? Window AC ( ) Split AC ( )

Floor standing ( )

Multi Split ( )

4. What are the features that people generally enquire about while buying AC ? Cooling capacity Compressor ( ) ( ) Power consumption ( )

Remote/ Non remote ( )

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5. What are the motivating factors which gaves stimulus to buy a AC ? Better cooling than cooler Unique Features Affordability Maintenance ( ) ( ) ( ) ( ) De-humidification Status value Comfort ( ) ( ) ( )

6. What criterias are important from the sales point of view ? Advertisements Product Features Price ( ) ( ) ( ) Special offers ( )

After sales service ( )

7. What is/are the effective medium of advertisement ? Print media Outdoor/in shop display ( ) ( ) Electronic media ( )

8. In your opinion what are the common complaint that consumer usually make ? Gas leakage Noise ( ) ( ) Remote functioning ( )

Insufficiency in coolang ( )

9. Is the spares parts of voltas ACs are easily available? Yes No ( ) ( )

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10. Would you opt for more flexibility in credit policy ? Yes ( ) No ( ) 11. Are you satisfied with incentives given to you ? Least Satisfied ( ) Satisfied Fully satisfied Not satisfied ( ) ( ) ( )

12. According to you, What is the overall market reputation of Voltas AC? Excellent Good Average Poor ( ) ( ) ( ) ( )

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BIBLIOGRAPHY

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BIBLIOGRAPHY
The fallowing study material had been consulted during the research work to collect data and various information. Books Marketing Research : Measurement and Method, Donald S. Tull and Del I.Hawkin,Prentice Hall India,Sixth Edition,Nov,2001 Kotlar Philip, Marketing Management, New Delhi , Pearson Education (Singapore) pte LTD) Eleventh Edition Kothari, C.R., Research methodology, New Delhi, Vikas publication house, Eleventh Edition.

Journal Indian Journal of Marketing (May 2004)

Newspaper Business standard (April 25,2005)

Websites www.voltasac.com www.voltas.co.in www.voltas.com www.voltasacnr.com www.google.com

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