Allied Voltas PDF

7/27/2019 Allied Voltas PDF

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Summer Training Project On

A Study on Brand Management and Market Penetration Strategies atUltraTech Cement Limited Building Products Division

(Dry Mix Products)

Submitted To

ANJUMAN I ISLAMs ALLANA INSTITUTE OF MANAGEMENT STUDIES

Required For Partial Fulfillment of M.M.S. Program

By

Khan Fahad Abdul Baqi

DIV B

Roll No 16

Under The Guidance Of

Mr. Abdul Majid

Managing Director

Allied Engineering Services

&

Under The Mentorship Of

Afreen Sayed

For The Academic Year

20122013


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ACKNOWLEDGEMENT

First of all I would like to express my sincere gratitude to Allah- The most Gracious most

merciful for his kindness towards humanity .

I wish to place on record my sincere gratitude towards Allied Engineering Consultancy for

providing me an opportunity to take up this project and giving a platform to experience the

intense corporate culture.

I further take this opportunity to thank Mr. Majid (Managing Director) my project guide in

particular as the guiding source of light in this vast journey of learning experience while doing

the project that really made me learn the real application and management principles of theproject.

I would also like to acknowledge my director at Anjuman Islams Allana Institute of

Management studies Dr. Lukman Patel for his timely and valuable advice on project related

issues, helping me extract the most out of my summer internship program.

I also want to thank the entire staff at Allied Engineering Services for taking the time to share

their expertise and knowledge of the field. The staff was most responsive to my quiries and

always made me feel like a full-time member of the group.

The project has given me the opportunity to understand the practical nuances of sales &

marketing, explore ways to effectively craft and communicate a message.

My time at Allied Engineering Consultancy has been a thorough professional experience of the

highest caliber and I will always remember it asAllied Engineering Consultancy: A Learning

Curve

KHAN FAHAD ABDUL BAQI

.


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INDEX

Sr. No Topic Covered Page No.

1 Executive Summary 1

2 Introduction 2-3

3 Company Profile: Allied Engineering Consultancy 4-17

4 Background of the study, Objective, Scope & Methodology 18-19

5 Company Profile: Voltas 20-32

8 Consumer Questionnaire 34-37

9 Data Analysis and findings Consumers 34-44

10 Distributor Questionnaire 45-46

11 Data Analysis and findings Distributors 47-49

12 SWOT Analysis 50

13 Marketing Analysis 51-57

14 Marketing Strategy 58-62

15 Marketing Mix 63

16 Market Potential 64

17 Limitations of the project & Recommendations 65

18 Conclusion 66

19 Bibliography 67


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Executive Summary

To provide a reliable, personal and professional service to all our customers with the emphasis on

quality and value for money. We strive to deliver to our clients environmentally safe and

responsible engineered systems that will benefit to all . Our solutions will provide both comfort

and energy efficiency and we are dedicated to improving the quality of life while sustaining the

quality of our earth.

Established in 1996, we has evolved to provide a high level of professionalism, allied to ever

increasing standards of engineering. Our blend of workforce from various fields in the building

services industry enables the company to provide a wide range of services to any client.

Our increasing portfolio of clients have come to rely on the personal touch every project is given,

which creates a team capable of ensuring high standards of quality, completion on time, to a

budget and in a safe manner. We specialize in the design and installation of all air conditioning

systems from single split systems in a domestic capacity, through to server farm data centres

utilizing close control systems and main chiller installations serving complete office buildings.


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Introduction

Indian Consumer durables market used to be dominated by few domestic players like Godrej,

Voltas, Allwyn and Kelvinator. But post liberalization many foreign companies have entered into

Indian market dethroning the Indian player and dominating Indian market the major categories in

the market REFRIGRATOR, AIR CONDTIONERS AND WATER COOLERS.India being the

second largest growing economy with huge consumer class has resulted in consumer durables as

the fastest growing industries in India. LG &SAMSUNG the two Korean companies have been

maintaining the lead in the industries with LG being leader in almost all the categories. Consumer

durables major Voltas Limited will invest nearly Rs 500 crore in India this year in research and

development, brand-building and other marketing initiatives. The company, having a turnover of

Rs 500 crore and market share of 17 per cent, is investing Rs 500 crore on brand-building and

other marketing initiatives and around Rs 500 crore on research and development, besides

launching new platforms I information technology and related areas, Before the liberalization of

the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the

major players in the consumer durables market, accounting for no less than 90% of the market.

Then, after the liberalization, foreign players like LG, Samsung, Whirlpool, Daewoo, and Aiwa

came into the picture. Today, these players control the major share of the consumer durables

market. Consumer durables market is expected to grow at 8-13% in 2009-2010. It is growing very

fast because of rise in living standards, easy access to consumer finance, and wide range of

choice, as many foreign players are entering in the market. With the increase in income levels,

easy availability of finance, increase in consumer awareness, and introduction of new models, the

demand for consumer durables has increased significantly. Products like washing machines, air

conditioners, microwave ovens, color televisions (CTVs) are no longer considered luxury items.

However, there are still very few players in categories. Consumer durables sector is characterized

by the emergence of MNCs, exchange offers, discounts, and intense competition. The marketshare of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle

class of India. MNCs offer superior technology to the Consumers whereas the Indian companies

compete on the basis of firm grasp of the local market, their well-acknowledged brand name, and


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hold over wide distribution network. However, the penetration level of the consumer durables is

still low in India & there is a yet a huge untapped rural market waiting to be exploited.


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Company Profile

ALLIED ENGINEERING CONSULTANCY

ALLIED ENGINEERING CONSULTANCY. is a professionally run engineering

Company. AES was incepted in January 1996 by Mr. Abdul Majeed Nawab , a B.Tech

Engineering from Dr.Babasaheb Ambedkar Polytechnic Raigad ,& achieved GOLD MEDAL

given by Dr. P.C. ALEXANDER the Governor of Maharashtra. He worked with TATA

VOLTAS ; which is known one of the leading air conditioner company, as Sales & Marketing

Manager for ten Years, marketing Heavy air conditioning plants and Material Handling

Equipments to the emerging infrastructure ,trade centers educational institutes and multi storeys

as well as residential in India

AES has business set up for marketing engineering products, directly as well as through Channel

partners, throughout India. Qualified professionals & Engineers are part of the team to provide

Engineering solutions & support to our clients.

Our Work philosophy is to provide better & efficient services to all our customers and we

believe in being the important partner in their long term growth.

ALLIED ENGINEERING CONSULTANCY

Core Values

Responsibility: We seek and accept personal responsibility for our actions and results. We

keep promises and commitments made to others. We are responsible for ensuring that quality

is built into everything we do. We take pride in providing outstanding customer service. We

are committed to fostering an environment where every employee understands and accepts

responsibility for upholding and reinforcing our values.


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Integrity: People want to do business with us because we are true to our word and we keep

our promises. Integrity is the heart of who we are and what we do. We are each personally

accountable for the highest standards of ethics. We will fulfill our commitments as

responsible citizens and employees. We will consistently treat customers and company

resources with the respect each deserves.

Teamwork: We are one company; one team. We promote and support a diverse, unified

team. We believe that succeeding together is as important as succeeding independently. The

most important job of any manager is to develop people to become experts and leaders. This

is how we build strong teams. As one company,AES impact is far greater than the impact of

any one of its parts. We will work together to build relationships that create ever-greater

value for the customers and communities we serve.

Excellence: We strive to do our best in everything we do. We value the talent, ambition, and

drive of each employee to perform their best, striving to achieve superior results. We are

committed to creating an environment where everyone pursues the highest possible level of

performance. No barrier impedes us from performing to the best of our abilities. We will

strive to continually improve our processes, technology and solutions for the benefit of our

customers.

Respect: We treat others with the highest degree of fairness, dignity, equality and trust. We

honor the rights and beliefs of our fellow employees, our customers, our teammates and our

community. We value our differences and diverse opinions, which helps us to learn from

each other. We provide honest, constructive, and discrete feedback when and where it's

needed.

Honesty: We are uncompromising with the truth. We are committed to being truthful,

trustworthy and honorable in all of our dealings with our each other, our customers,

teammates, suppliers and competitors. We respect and adhere to all of the laws and

regulations that govern our business practices.


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Innovation: We are driven by a desire to continually learn, improve, and grow. We are

creative in delivering value to our employees, customers, teammates and community. We use

our collective experience and knowledge to identify and shape meaningful improvement to

our services, programs, processes, operations, and business model to create new value for

AES.

Innovation is part of our learning culture. We thrive on innovation, so that we can deliver

solutions to our customers that make their work easier, more efficient, and more cost

effective.

Passion: We show pride, enthusiasm and dedication in everything that we do. We are

committed to selling and delivering high-quality products and services. We are passionate

about what we do; about meeting our customers' expectations, about creating new sales

services and improvements, about working with partners for mutual benefit and aboutcontributing in a positive way to the world around us. As a leader, you must envision the

future, passionately believe that you can make a difference, and inspire people to achieve

more than they may have dreamed possible. You will create a sense of identity and spirit

which will spread through your team. There is no better motivator than a shared passion.

Vision Statement

The vision is to be a trusted, respected, and dynamic technical services provider sought out

by customers, partners, and employees.

Mission Statement

The mission is to understand and provide Maintenance, Modernization, Logistics,

Engineering, IT, and offering solutions for the evolving customers. Our expert team

members take personal responsibility in providing quality services and solutions to

maximize value for customers, partners, and employees.

AES is: "Quality People Providing Quality Service"


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Areas of business

The company mainly operates in the following areas:

Company involved mainly into 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. Voltas' operations have been organized

into three independent business-specific clusters. Each of these has its own facilities for

market coverage and service to customers. Namely:

Electro-Mechanical Projects Services

Engineering products Services

Unitary Cooling Product

Electro-Mechanical Projects & Services

Electrical, Mechanical, HVAC & Refrigeration

Electrical, Mechanical & HVAC Solutions(International) Water Management & Treatment

Engineering products & Services

Textile Machinery

Mining & Construction Equipment

Machine Tools

Materials Handling Solutions

Unitary Cooling Products for Comfort & Commercial Use

Cooling Appliances

Commercial Refrigeration


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Maintenance, repair, and operations

(MRO) or maintenance, repair, and overhaul involves fixing any sort of mechanical

or electricaldevice should it become out of order or broken (known as repair, unscheduled,

or casualty maintenance). It also includes performing routine actions which keep the device in

working order (known as scheduled maintenance) or prevent trouble from arising (preventive

maintenance).

MRO may be defined as, "All actions which have the objective of retaining or restoring an

item in or to a state in which it can perform its required function. The actions include the

combination of all technical and corresponding administrative, managerial, and supervision

actions."

MRO operations can be categorised by whether the product remains the property of the

customer, i.e. a service is being offered, or whether the product is bought by the reprocessing

organisation and sold to any customer wishing to make the purchase. In the former case it

may be a back shop operation within a larger organization or smaller operation.

The former of these represents a closed loop supply chain and usually has the scope of

maintenance, repair or overhaul of the product. The latter of the categorizations is an open

loop supply chain and is typified by refurbishment and remanufacture. The main

characteristic of the closed loop system is that the demand for a product is matched with the

supply of a used product. Neglecting asset write-offs and exceptional activities the total

population of the product between the customer and the service provider remains constant.


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Maintenance types

Generally there are three types of maintenance in use:

o Preventive maintenance, where equipment is maintained before break down occurs. This

type of maintenance has many different variations and is subject of various researches to

determine best and most efficient way to maintain equipment. Recent studies have shown that

Preventive maintenance is effective in preventing age related failures of the equipment. For

random failure patterns which amount to 80% of the failure patterns, condition monitoring

proves to be effective.

o Corrective maintenance, where equipment is maintained after break down. This

maintenance is often most expensive because worn equipment can damage other parts and

cause multiple damages.

o Reliability centered maintenance, often known as RCM, is a process to ensure that assets

continue to do what their users require in their present operating context.

Preventive maintenance

Preventive maintenance is maintenance performed in an attempt to avoid failures,

unnecessary production loss and safety violations.

The effectiveness of a preventive maintenance schedule depends on the RCM analysis which

it was based on, and the ground rules used for cost-effectivity.

Corrective maintenance

Corrective maintenance is probably the most commonly used approach, but it is easy to see its

limitations. When equipment fails, it often leads to downtime in production. In most cases,

this is costly business. Also, if the equipment needs to be replaced, the cost of replacing it

alone can be substantial. It is also important to consider health, safety and environment (HSE)

issues related to malfunctioning equipment.


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Corrective maintenance can be defined as the maintenance which is required when an item

has failed or worn out, to bring it back to working order.

Corrective maintenance is carried out on all items where the consequences of failure or

wearing out are not significant and the cost of this maintenance is much greater than

preventive maintenance.

Reliability centered maintenance

Reliability centered maintenance is an engineering framework that enables the definition of a

complete maintenance regime.

It regards maintenance as the means to maintain the functions a user may require of

machinery in a defined operating context. As a discipline it enables machinery stakeholders to

monitor, assess, predict and generally understand the working of their physical assets. This is

embodied in the initial part of the RCM process which is to identify the operating context of

the machinery, and write a Failure Mode Effects and Criticality Analysis .

The second part of the analysis is to apply the "RCM logic", which helps determine the

appropriate maintenance tasks for the identified failure modes . Once the logic is complete for

all elements , the resulting list of maintenance is "packaged", so that the periodicities of the

tasks are rationalised to be called up in work packages; it is important not to destroy the

applicability of maintenance in this phase.

Lastly, RCM is kept live throughout the "in-service" life of machinery, where the

effectiveness of the maintenance is kept under constant review and adjusted in light of the

experience gained.


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DEFINITION OF AN AC

Air conditioning is simultaneous control of air for:

Temperature control

Air freshness

Filtration, Dehumidification within a confined space. In other words, AC is defined as a

process, which heats, cools, cleans and circulates air and its moisture content.

Components of an Air Conditioner

The Air-conditioner consists of the following components

1.A Cooling Coil (evaporator coil)

2.A Condenser Coil

3.A Compressor and

4.A Fan Motor

Working of an Air-conditioner

A Window air conditioner cools room air by means of refrigerant. The refrigerant absorbs

heat from air and becomes vapour as it flows through the evaporator. A compressor pumps

the vapour to condenser, which discharges the heat and turns the vapors back to

liquid.Three important working cycles of an AC are:1.Room side close cycle

2.Outdoor open cycle

3.The Refrigerant cycle

The room side close cycle

AC sucks the hot air from the room. The air is cooled, dehumidified and redelivered

back to the room, during the process the room gradually becomes cold.

Outdoor open cycle

The fan on the condenser side sucks the air from outside atmosphere and delivers it back to

the atmosphere after taking the heat from the condenser coil.


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The refrigerant cycle

The closed cycle in which compressor compresses the refrigerant gas and delivers it to the

condenser coil and then to the evaporator coil and back.

Type of Air-Conditioners:

Window AC

Window AC is the most compact, versatile and cheapest air-conditioning system. It has the

advantage of using single motor for both compressor and cooling side. It also takes motor

for both compressor and cooling side. It also takes into advantage of the usage of humidity,

which is absorbed, from cooling sides to lower temperature of condensing side.

Split A.C.

It is the most versatile and cheapest air-conditioning system where window ACs cannot be

provided. It has the advantage of cooling any place irrespective of its location and just

need a passage three inch in diameter so as to connect both sides of split AC. In split AC

area covered is higher than the windowAC.

Package A.C.

It is used for larger areas where the tonnage is higher (approx.3.0 tonne-15 tonnes). It

consumes less power.

Central A.C.It is used for cooling the area where the tonnage required is more than 50 tons. Though the

capital cost is higher but the running cost is very economical. In central air conditioning a

final air-conditioning is done through cold/hot water running through tubes.


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Product Range

Allied Engineering Services offers a range of Ducted Splits and Packaged ACs (both air-

cooled and water-cooled).Through its agreement with Rheem, Blue Star has access to

world class manufacturing processes. The sophisticated facilities installed include: a range

of imported fabrication equipment; an advanced powder coating paint line; conveyor belt

system and an on-line computerized manufacturing resources planning system, which

streamlines and integrates the entire process. All of which ensure that our customers get

the best air-conditioning technology.

Packaged ACs

Air-cooled or Water-cooled, these versatile units in 5, 7.5, 10 & 15 ton capacities can

individually cool 75 to 250 meters of floor space. In multiples they can handle entire floors

and buildings. These come with imported compressors. Optionally they offer packaged air

conditioners fitted with scroll compressors,which are significantly more reliable because of

only three moving parts within the compressor, compared to 15 moving parts in

reciprocating compressors. The scroll compressors are also eight times quieter. We have

re-engineered the complete system to ensure a saving of up to 25% on energy cost to the

customer. The range is 5.5, 8.3, 11 and 16.5 TR. This product has already begun torevolutionize this market, and has captured a significant market share in the few months

after launch.


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DUCTED SPLIT AC

Ducted Split Air conditioners from India'sNo. 1 central air-conditioning company bring to

offices, banks, software development centers, hospitals, hotels,restaurants and showrooms

a new concept of comfort cooling. Advantages of Comfort Cooling The cooling unit is

safely tucked away and all that is visible are the sleek lines of the ducting that blend so

beautifully into your decor.Sleek, slim and just 425 mm in height, the unit fits into false

ceilings and gives an ambience with low noise levels, as all internal surfaces are

acoustically insulated.Also available with imported energy efficient scroll compressors for

higher reliability, low noise and power saving. The range is 5.5 and 8.3 TR.

SPLIT ACS

Blue Star, India's leading central air-conditioning company, presents a state-of-the-artrange of Split Air conditioners.Deluxe Hi - Wall SplitThe problem with normal air

conditioners is that while they start off cooling you well, pretty soon they begin freezing

you. A problem that we have cleverly taken care of in our air conditioners. It has an

electronic thermostat that's accurate and reliable, fuzzy logic control that adjusts

performance automatically and an energy-efficient compressor amongst others.

Manufactured at Blue Star's state-of-the-art factory; it includes reliable components,

excellent after-sales service and friendly looks. It's just what you'd expect from the leaders

in air-conditioning.


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CORDED HI - WALL SPLIT AIRCONDITIONERS

The Corded Hi-Wall Split Air conditioner, comes to you from the acknowledged experts in

air-conditioning technology, who are also the most preferred - Blue Star. On offer is a wide

range of capacities. The lowest being 1 ton, and the highest, 4tons. Each and every air

conditioner is loaded with a host of thoughtful and exciting features. After all, nothing less

is expected from the leaders in air-conditioning.

CONCEALED SPLIT AC

You and your interior designer have taken enormous care to create great looking interiors.

You want to conceal the air conditioner so that a neat central air-conditioning look is

maintained. Enter the Blue Star Concealed Split. A powerful machine that believes in

efficiently working behind the scenes. Apart from impeccable cooling, a Concealed Split isa big bonus when wall and floorspace is not available. Its the sleekest indoor unit in the

market and stands less than 11" tall (conveniently allowing higher head room under a false

ceiling). So, if you're looking for the compliment to your dream office, insist on the

Concealed Split. Like everything with pedigree, it can only be felt and not seen.

Deluxe Hi - Wall Split Air conditioners

The Deluxe Hi-Wall Split Air conditioner comes to you from the acknowledged experts inair-conditioning technology, who are also the most preferred - Blue Star. On offer is a wide

range of capacities. The lowest being 1 ton, and the highest, 4 tons.Each and every air

conditioner is loaded with a host of thoughtful and exciting features. After all, nothing less

is expected from the leaders in air-conditioning.


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CASSETTE AIRCONDITIONING SYSTEMS

Blue Star, in its continuing effort to provide innovative cooling solutions for your business,

brings you the Cassette Air-conditioning Systems. They not only look contemporary, but

are also extremely quiet and installation friendly. They blend beautifully with stylish

interiors by virtue of their excellent looks, fit & finish. Their compactness and ability

without necessary ducting makes them an ideal choice where ducting is not practical (due

to structural constraints such as low cross beams).

WINDOW ACS - TURBO ROTARY DELUXE MODEL

Blue Star Turbo Rotary ACs come in innovative capacities. Like 1.25T. Which means that

you don't have to compromise and settle for an AC of higher tonnage, and consequently,

higher power consumption. Botht hese models are fitted with Mitsubishi compressors forvirtually silent operation and come with anti-bacterial filters, corrosion resistant blue fins

and full function remote (optional). All in all the best AC deal you're likely to get.

WINDOW ACS - TURBO ROTARY SUPER DELUXE REMOTEMODEL

Blue Star Turbo Rotary ACs come in innovative capacities. Like 1.25T. Which means that

you don't have to compromise and settle for an AC of higher tonnage, and

consequently,higher power consumption. Both these models are fitted with Mitsubishi

compressors for virtually silent operation and come with anti-bacterial filters,corrosion

resistant blue fins and full function remote(optional). All in all the best AC deal you're

likely to get.


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WINDOW ACS - DELUXE MODEL

Blue Star cooling standards are so high that even the experts recommend us.Little surprise

then when we were chosen to air-condition India's most prestigious establishments. Like

Parliament House, Bombay Stock Exchange and the Reserve Bank of India.You'll find this

very expertise in cooling, in our new window air conditioners. As well as brand new

exciting features. For example, an electronic thermostat that's accurate and reliable, fuzzy

logic control that adjusts performance automatically and a low energy-consuming

compressor, besides others. Made atVoltass state-of-the-art factory, your window ACs

includes dependable components, excellent after-sales service and stunning looks.

WINDOW ACS - SUPER DELUXE REMOTE MODEL

Blue Star cooling standards are so high that even the experts recommend us.Little surprise

then when we were chosen to air-condition India's most prestigious establishments.Like

Parliament House, Bombay Stock Exchange and the Reserve Bank of India. You'll find this

very expertise in cooling, in our new window air conditioners. As well as brand new

exciting features. For example, an electronic thermostat that's accurate and reliable, fuzzy

logic control that adjusts performance automatically and a low energy consuming

compressor,besides others. Made at Blue Star's state-of-the -art factory, your window ACs

includes dependable components, excellent after-sales service and stunning looks.


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BACKGROUND OF STUDY

This study has been done as part of the project work for Marketing Management II course.

The study is majorly focused on developing a sound understanding of various aspects of

Marketing Management. For this we have taken up one of the leading Air Conditioner Brand -

Voltas.

The reason why we chose this particular company in specific is that

Voltas is closely related to one of the oldest Indian Industry, Tata

Air Conditioner market is having huge demand in India

Voltas has launched products for different customer segments

Objective:-

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

1. Study Customer Behaviour Understanding the factors responsible for customer buyingbehavior.

2. Marketing Strategy ofVoltas Understanding the Marketing plan of Voltas.

3. Analysis of Market Share ofVoltasTo study and analyze the annual and financial

growth reports of Voltas Co.

4. Study ofCustomerSegmentation To study the products of Voltas with respect to the

Segmentation of Customer over Family Size, Income, Price, Features etc.

5. Study of Product Differentiation Variants of Products offered by Voltas Co.6. Competition faced by Voltas Analysis of the domestic competitors for Voltas.

7. ExternalEnvironment ofVoltas Analysis of the Air Conditioner Industry.


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

Voltas.

Scope:-

As part of this project we have limited ourselves to study the marketing strategy of Voltas

Air Conditioners only. We have studied the different brands of AC products being produced

by Voltas.

For this we have done a consumer survey within the domestic boundary of our

college students and friends and families outside.

Methodology

The sources used for our study are as follows:

Primary data

A consumer survey was conducted with the help of questionnaires across our colleagues

within the campus and friends and family members.

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

Secondary data

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

data

We have referred to the home page of Voltas for current information on products

and financial report


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DESCRIPTION OF CURRENT SITUATION:-

Company Profile Voltas

Voltas is among India's leading air-conditioning, refrigeration and engineering

services companies. Set up in 1954, its core competencies lie in air conditioning and

cooling appliances and services. Voltas is India's largest supplier of engineering

products and services for the textile machinery sector and is a major manufacturer of

forklift trucks. It provides solutions in turnkey pumping projects for water, effluent

and sewage treatment, and water pollution control. The company has ISO 9001-2000

certification and has executed projects in the Middle East, Southeast Asia, Central

Asia, Africa and Europe. Voltas Limited is a Public Limited Rs 2500 crore multi

divisional company, engaged in the air conditioning and engineering business. It was

incorporated on 6th September 1954. Tata Sons Ltd and Volkart Brothers, a Swiss

Company operating in India since1851, promoted this company and hence the name

VOLTAS.Voltas, A Tata Group Company is India's premier air conditioning and

engineering services provider. It provides engineering solutions for a wide spectrum

of industries in areas such as heating, ventilation and air conditioning, refrigeration,

climate control, electro-mechanical projects, textile machinery, machine tools,

mining and construction, materials handling, water management, building

management systems, pollution control and chemicals. Voltas have capability in the

manufacture of room/split air conditioners, industrial air conditioning and

refrigeration equipment, water coolers, refrigerators, visi-coolers, freezers, forklift

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. Company is partnered with international

companies such as LG Electronics and Samsung of Korea and Fedders International of USA


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for 'manufacture only' alliances producing low cost, high quality refrigerators and room air

conditioners.

The companys promoters, Tata Sons hold around 28 per cent of the shares in the company.

Foreign investors and the public hold around 21 per cent share each, while domestic financial

institutions and non-promoter corporates hold the balance. Voltas has recently gone through a

comprehensive restructuring exercise, aimed at bringing the core to the fore. This exercise,

conducted between 1997-1998 and 2001-2002, comprised of redefining the business focus of

Voltas as being an engineering.


Heating, ventilation and air-conditioning (HVAC) solutions: Includes the entire range

of mechanical, electrical and plumbing services for a diverse range of applications,

spanning office complexes, airports, malls, mercantile ships, atomic energy plants, IT

parks, hospitals, etc.

Cooling appliances: Design, manufacture and marketing of a range of air conditioners

and water coolers for household and institutional use

Engineering products and services: Design, sourcing, installation, training,

maintenance, etc of engineering products and services in the fields of textile

machinery, machine tools, mining and construction equipment and materials handling

equipment.

Chemicals: Import and distribution of an array of industrial, specialty and

pharmaceutical chemicals, industrial plastics and bulk drugs. The company also

exports gelatine, ultramarine blue and agrochemicals.


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JOINT VENTURES, SUBSIDIARIES, ASSOCIATES

Voltas's subsidiaries include Metrovol FZE, VIL Overseas Enterprises BV, Voice Antilles

NV, Weathermaker, Jebel Ali (Dubai), Simto Investment Company and Auto Aircon

(India).

LOCATION

Voltas has its head office in Mumbai and regional offices in several major cities in India.

Its overseas offices are in Abu Dhabi (UAE), Hong Kong and Singapore. The company

has factories at Thane (Maharashtra) and Pantnagar (Uttarakhand) in India.


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Air Conditioner Industry

Thanks to the fabled Indian middle-class, the air-conditioner market is hooting up. An

inordinately hot summer has convinced the people the comfort of an air-conditioner and a

large number appears to have decided to take one home this year. Indeed, in the last few

the years, the demand for air-conditioners from the household sector has been growing

rapidly. Still, the demand growth is particularly noticeable, and was also the most

significant change in the industry during this period.

According to some industry estimates, growth in volume terms has been 45-50 per cent

this fiscal. But official statistics underestimate this and even report a decline in production.

Nevertheless, by all accounts, including a study by the Confederation of Indian Industry

(CII), there has been a noticeable jump in the demand for air-conditioners from the

household segment. After several years of relatively modest growth, which was totally at

variance with the latent potential of the product, the sharp growth in demand the summer

past was very welcome for air-conditioner companies in many respects. One, it relatively

reduced their dependence on the corporate sector which is still the major demand driver.

Corporate traditionally accounted for about 60 per cent of the total demand for air-

conditioners. But the burgeoning demand from the household segment could level the ratioin the near future


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One of the significant factors influencing the fortunes of the industry is the taxation

structure. The industry has come a long way from the time when the excise duty structure

favored only the unorganized sector. The steady fall in the excise rate in the 1990s helped

the organized sector cope with the competition from the unorganized sector on more

favorable terms. Still, the unorganized sector continues to meet a sizeable proportion of

the demand for non-ducted products.

There was a significant change in the excise duty structure in 2000. The rate was raised

from 30 per cent to 32 per cent and this was expected to adversely impact the industry.

However, the shift to a maximum retail price based system for the levy of excise appears to

have helped the manufacturers. In the MRP-based system, an abatement of around 40 per

cent was provided. This ensured that the impact of the increase in excise was minimal if not

positive. Another major fiscal change is the removal of quantitative restrictions on imports.

Imports are, however, not all that competitive considering the Customs duty structure. An

import duty of 44 per cent along with a countervailing duty, which is equivalent to the

excise duty, is a large enough protection for the domestic companies.

Growth of AC market

The demand for non-ducted products grew steadily in the latter half of the 1990s. The

demand for mini-splits has grown at a higher rate compared to window ACs because of the

lower base. The demand switch from mid-sized ducted products, such as packaged ACs or

ducted splits, to mini-splits is also one of the reasons for the larger growth rates in the

latter segment.

Another major reason for the growth in demand was the increased attention this product

category has attracted in the recent past. Prices of air-conditioners dropped sharply in the

past few years because of competition. Most established players upgraded their

manufacturing facilities, while fresh capacities were created by companies such as

Matsushita (National brand). The marketing and advertisement spend by companies has

also been on the rise.


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With such investments flowing into building both the product and the brand, the expansion

of the market was inevitable. As seen with other consumer durables, in the initial years of

increased intensity of competition, both existing and new players invest more cash. This

leads to a drop in prices, fuelling demand and the result is a much larger market. And thenon-ducted segment has attracted a lot of players in the last few years. The latent long-

term demand potential from Indian households has led to a number of multinational

companies making a beeline to set up base in the country.

Major players in this product category are Carrier Aircon, Voltas and Blue Star. Brands

such as Hitachi, Videocon and Godrej also have a sizeable presence. Among the recent

entrants, the Korean brands such as Samsung and LG have been able to make an

immediate impact. Other brands that have positioned themselves for a share in this fast-

growing market are National, Fuji General and Daikin. On a much smaller scale,

Whirlpool and Electrolux have entered the market to cater to household demand.

Initially, the entry of new players did have an adverse impact on the established players --

especially Voltas and Carrier Aircon. The reduced sales of window ACs by Carrier Aircon

and Voltas in 1999-2000 compared to 1998-99 is testimony to the adverse impact caused

by the entry of the new brands, especially Samsung and LG. However, since the beginning

of 2000-01, it does appear that the established players -- Carrier Aircon and Voltas -- have

started to hit back. They may have even picked up some of the market shares they lost in

the earlier period. Again, initially, margins of established companies suffered as larger

outlays in selling and distribution failed to translate into superior sales growth. The trend

now appears to have been reversed.


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Major Competitors

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

i. LG

ii. Samsung

iii. Videocon

iv. Hitachi

v. Carrier

vi. Whirlpool

Operational sector


Company involved mainly into 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. Voltas' operations have been organized

into three independent business-specific clusters. Each of these has its own facilities for

market coverage and service to customers.

Types of Air Conditioners offered by Voltas:

Now when we talk of air conditioners, there are a number of makes and models available inthe market. So as to say that there is a variety of sizes and types of ACs available for cooling

rooms of different sizes. And in order to choose the perfect air conditioner for your room it

is always advisable to have some extra knowledge about the types of AC and their purpose as

to which one is best for what kind of room. With the variety of air conditioners available in


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the market, it is very difficult to choose the most suitable AC for our home or office. And if

we dont have a clue about air conditioner then it adds to our own disadvantage. There are

mainly five types of air conditioner:

1) Window mounted: These are air conditioners that are usually fixed through the windows,

which have been designed typically for double hung windows. And it is one of the most

commonly used air conditioners as this is best for cooling a single room for the simple reason

that these are easy to install, cheaper and works with almost all the wiring system of your

home. The price range varies from Rs. 12,000 to Rs. 27, 000on an average for room size the

range varies from 10 meter square - 84 meter square.

2)Split Air conditioner This type of air conditioner is best suited for rooms whose area is up

to 60 meter square and might cost you (approx) around Rs.16,000 to Rs.35,000 on an average

(multi-split system). A split air conditioner consists of two parts: the indoor unit which is also

called as the evaporator unit and the outdoor unit which is known as the external condenser

box and is installed outside the room or the building. And this is one main reason why most

people opt for split ACs, as during the operation, it doesnt make any noise which

might distract your attention or annoy you. Split ACs are permanent systems which can

either be installed at the floor level or on the walls or on the ceiling. However, it can be

very noisy and may create nuisance for your neighbours.

3) Cassette Air Conditioner:

These are air conditioners that are usually fixed into the sealing. This ultrathin air conditioner

can be installed in any narrow ceiling. These are usually fit in places where it is not possible

to fit either a Window or Split Air conditioner. The price range varies from Rs. 68,500 to Rs.

86,500on an average

4) Slim line Air Conditioner:

This type of air conditioner has been one of the most popular types for certain reasons.

One major reason is that they can be easily moved from one room to the other and is often

referred to as a mobile air conditioner. Being portable, it is easier to store when the summer

season wears off.


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It is best suited for smaller rooms and for those people who moves their houses very

frequently. The only minus point is that they are quite expensive and the exhaust tube needs

to be fitted each time. It has a separate indoor and outdoor section. It is recommended for

rooms whose area is up to 35 meter square.

5) Ductable Split Air Conditioners: Ductable air conditioners are those that are used to

condition more than one room, in the same building. These kind of air conditioners are

usually seen in institutions, big organizations, hotels etc. Ductables comes indifferent

tonnages depending upon the space needed to be cooled. The prices of ductables vary

depending upon the tonn age. Out of all the above mentioned air conditions the maximum

selling would be the Split air conditioners .Though window a/c will cost less and is easier to

install. The downside is you will loose your view through the window and you will have more

air

leakage than a split unit. A window unit will be less efficient than the split also a slit a/c is

much quieter than a window a/c. The split unit will add more value to the home and will be

quieter.


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SELECTION OF SAMPLES AND DATA COLLECTION

SAMPLING METHOD

Random Sampling method

SAMPLE SIZE

50 Customers & 5 Dealer/Distributors

RESEARCHTOOL

Questionnaires

RESEARCH AREA

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


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The following are the set of questions which we used for extracting information from theresponders.

CustomerResponse for VoltasAir conditioners

This set ofquestions are used for academic project to study the Voltas Air conditionerMarket

* Required

What is your age group? *

15 - 25

26 - 35

36 - 50

above 50

How many members are there in your household?

less than 3

3 - 6

6 - 9

more than 9

What is your family AnnualIncomeScale?

less than 5 lac

5 lac - 10 lac

10 lac - 20 lac

more than 20 lac


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

0 - 1

2 - 4

4 - 6

more than 6

Which Brand(s) ofAC do you have? Ifyou have given 1 or more in previous response

Voltas LG

Samsung

Hitachi

Videocon

Whirlpool

Other:

Which brand ofAC have you recentlypurchased

Voltas LG

Samsung

Hitachi

Videocon

Whirlpool

Other:

What are the factors for selecting a Brand

BrandPopularity

Advertisement

Currenttrend

Financeoption

BrandImage


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Other:

Where do you prefer to purchase Air conditioner

Exclusive Showroom

Multi BrandStore

LocalRetailer

Non BrandedRetailers

What are the influences for purchasingAC

Friend

Family

Price

Features

Looks

Other:

When do you prefer to purchase Air Conditioner?

Pre Summer

Peak summer

OffSeason

Festive Season


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DATA ANALYSIS AND FINDINGS:-

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

How many members are there in your household?

What is your family Annual Income Scale?

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

less than 3 13%

3 - 6 81%

6 - 9 4%

more than 9 2%

less than 5 lac 22%

5 lac - 10 lac 50%

10 lac - 20 lac 20%

more than 20 lac 8%

0 - 1 40%

2 - 4 46%

4 - 6 12%

more than 6 2%


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Which Brand(s) of AC do you have?

Voltas 19%

LG 52%

Samsung 25%

Hitachi 17%

Videocon 8%

Whirlpool 6%

Other 15%

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

Which brand of AC have you recently purchasedVoltas 17%

LG 38%

Samsung 17%

Hitachi 9%

Videocon 6%

Whirlpool 2%

Other 11%


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Exclusive Showroom 13 27%

Multi Brand Store 26 53%

Local Retailer 9 18%

Non Branded Retailers 1 2%

What are the factors for selecting a Brand

Brand Popularity 35%

Advertisement 4%

Current trend 14%

Finance option 37%

Brand Image 49%

Other 24%


Where do you prefer to purchase Air conditioner

What are the influences for purchasing ACFriend 6%

Family 19%

Price 27%

Features 44%

Looks 0%

Other 4%


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1 63%

2 17%

3 10%

4 4%

5 6%

1 31%

2 35%

3 19%

4 12%

5 4%

When do you prefer to purchase Air Conditioner

Pre Summer 27 52%Peak Summer 8 15%

Off Season 13 25%

Festive Season 4 8%

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

How do you rate the factors for Air conditioners - Maintenance


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1 23%

2 27%

3 27%

4 12%

5 12%

1 29%

2 35%

3 8%

4 22%

5 6%

1 19%

2 13%

3 35%

4 15%

5 17%

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

How do you rate the factors for Air conditioners - Warranty

How do you rate the factors for Air conditioners - Size


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Which brand tagline says "India ka Dil, India ka AC"LG 6%

Samsung 0%

Voltas 78%

Videocon 4%

Whirlpool 2%

Hitachi 2%

Other 8%


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Our Finding Report

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

LG Brand AC is most popular within the consumer groups covered under our survey

Samsung and Voltas are maintaining close market share

AC purchase decision is governed by following factors

o Brand Image

o Brand Popularity

o Finance optionsThe purchase decision is a lot depended upon Brand Image but a typical customer

considers finance options also while its purchase.

Shopping Malls / Multi Brand Stores are the most favorable place of purchase. This

clearly says that customers prefers to have comparative analysis of all possible brands

before purchasing an AC

The top 3 factors influencing AC purchase decision are

o Features

o Priceo Family

AC sales are at maximum during Pre Summer and then during off season (considering

prices are low). It is not much affected during festive offer period

60% sample survey suggest that

o Power Consumption

o Maintenance

o On Call Support service

o WarrantyAre the important factors considered while purchasing/selecting a branded AC

The Branding of Voltas is strong and connects well within the masses


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DistributorsResponse FormThis set of questions is intended to be used for Academicresearch project to study the VoltasAir conditionermarket* Required

Name of the Store *

Address of Store

Do You Sell Voltas AC in your store *

Yes

No

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

Exclusive Showroom

Lackof demand

Low Profit Margin

No serviceshop availablelocally

Other:

What are the major brands of AC beingsoldout from the store *

Samsung

LG

Videocon

Voltas

Hitachi

Carrier

Whirlpool

Other:


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What are the usualbrands considered by consumers for AC purchase

Samsung

LG

Videocon

Voltas

Hitachi

Carrier

Whirlpoll

Other:

What are the primary reasons for most sellingbrands of AC

Price

Quality

AfterSaleService

Features

Advertisement

AttractiveSchemes

Any Suggestionsfor IncreasingVoltassales


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Data Analysis

Do You Sell Voltas AC in your store

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

Yes 83%

No 17%


Exclusive Showroom 0%

Lack of demand 100%

Low Profit Margin 0%

No service shop available locally 0%Other 0%


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What are the major brands of AC being sold out from the storeSamsung 50%

LG 100%Videocon 50%

Voltas 50%

Hitachi 33%

Carrier 33%

Whirlpool 33%

Other 0%

People may select

more than onecheckbox, sopercentages may

add up to morethan 100%.

What are the usual brands considered by consumers for AC purchaseSamsung 50%

LG 67%Videocon 50%

Voltas 17%

Hitachi 17%

Carrier 0%

Whirlpool 0%

Other 0%

People may select

more than onecheckbox, sopercentages may

add up to morethan 100%.


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SWOT Analysis of Voltas Air Conditioners

Strength

Design and manufacture of

industrial equipment.

Management and execution of

Air Conditioning

Voltas represents a number of

global technology leaders,

serving diverse industrialsectors and applications.

Public works project

Sourcing, installation and

servicing of technology based

systems

Weakness

Too keen on targeting the

economy consumer segment

only

Unable to target the Green

conscious customers

Opportunities

The high end value driven

proposition helps increase the

market share.

Voltas is well known for its

product differentiation

Promote eco friendliness

through their energy efficient

products

Threats

Due to increased price of inputs

and continued price erosion

there is downtrend in the

consumer durables market


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MARKETING ANALYSIS

Marketing is a societal process by which individuals and groups obtain what they need and

want through creating, offering and freely exchanging products and services of value with

others or otherwise it is the process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods, services to create exchanges that satisfy individual

and organizational goals.

Marketing Strategy

Marketing strategy is a set of objectives, policies and rules that leads the company's marketing

efforts. It is the marketing approach to accomplish the bread objective of the marketing

approach to accomplish the bread objective of the marketing plan. The various process ofmarketing strategy is given below.

1. Selecting largest markets segmentation

2. Positioning

3. Product4. Price5. Place

6. Promotion7. Research and development

8. Marketing research

1. Market segmentation and selecting target market

Voltas has smartly created their market segment on the basis of the Cost sensitivity

within consumers. Voltas has segmented their consumers as

- Cost saving conscious

- Cost saving plus appearance conscious

- Affordability with ease


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2. Positioning

Voltas has positioned themselves as a low on cost air conditioners with all the features

of a good air conditioner.

3. Product

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

Split AC Window AC Pristine AC

Panache AC Cassette AC Slim line ACRecommendations about Product To improve after sales services provided. Instead of providing 2 free services Voltas must

offer at least 3 like its major competitors. Also the time when a complaint is made and the

complaint is attended to should be reduced. The company could also offer an extended

warranty at a nominal rate.

Availability of spares needs to be looked into. A separate team could be to appointed tohandle all spare part related issues.

Better design could give it a huge leverage as in todays world looks are given high weighed.Different color panels could be used like that used by Godrej togive the product a better look.

Also detachable panels could be popularized as people could select the color of the panels

according to there taste & preferences.

Product availability especially during peak season must be paint a lot of attention to. As I

observed that there was not even a single window A/cavailable in the first half of June &

there was a lot of demand for the same in the market.

A lot more must be spend on R & D activities & to introduce never seen before features and

products much like Hitachi.

Voltas can come up with detachable panels. This will allow the customers tochoose the color

of there choice to match there room & taste.


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Recommendations about Product

To improve after sales services provided. Instead of providing 2 free services Voltas must

offer at least 3 like its major competitors. Also the time when a complaint is made and the

complaint is attended to should be reduced. The company could also offer an extended

warranty at a nominal rate.

Availability of spares needs to be looked into. A separate team could be to appointed to

handle all spare part related issues.

Better design could give it a huge leverage as in todays world looks are given high weighed.

Different color panels could be used like that used by Godrej to give the product a better look.

Also detachable panels could be popularized as people could select the color of the panels

according to there taste & preferences.

4. Price

Considering the customer segmentation and market positioning, Voltas has kept its

product prices competitive and lucrative for the economy minded consumers. The

company does operate in the higher segments but it ensures Price as their winning

factors, since they cannot compete over other value addition which is possible for other

costlier brands.

Voltas-Vertis GOLD Split 1.0T SAC24,500/-

Voltas-Vertis Elite window 0.75 Ton14,000/-

Voltas-Vertis GOLD Split 0.75T SAC18,500/-

Voltas-Vertis window Plus -2.0Ton19,500/-

Voltas-Vertis ELITE Split 2.0T SAC33,000/-

Voltas-Vertis Plus window -1.5Ton17,500/-




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Voltas-Vertis Premium window 1.5Ton R16,800/-

Voltas-Vertis PLUS Split 2.0T SAC28,500/-

Voltas-Vertis Premium window 1.5Ton M16,400/-


Voltas-Vertis Premium window 1.0Ton R14,500/-


Voltas-Vertis Premium window 1.0Ton M14,000/-


Average Price21,123 Split

Average Price16,177 window

.

Key Findings about Pricing:

Voltas air conditioner are priced nearly Rs.2000 to Rs. 3000 higher than LG.

Incentives provided to small dealers is 5% less than that provided by LG

Margins offered to big giants like Vijay Sales, Croma, Reliance Digital etc is far more

than that offered to the small dealers .As a result small dealers would find it extremely

difficult to compete with these heavy weights.

One would rather not prefer to be a dealer of Voltas and buy the products from these

giants themselves at a lower price than what Voltas can offer them. Example: As a

dealer, Voltas offers me an incentive of 2% on 50 units sold. I would rather purchase the

products from Vijay sales at a lower price and sell it at a higher profit margin.

Recommendations about Pricing

Increase margins for all dealers.

Along with dealership fees provided the dealer with a free Voltas Air conditioner. This

would serve 2 benefits

Firstly the dealer will feel he s paying less as he s getting a free air conditioner so he


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will not feel the pinch of shelling out 50, 000 &

Secondly as a customer you tend to observe the air conditioner installed in the dealers

shop, while making your purchase decision you observe a Voltas ac installed in the

dealers shop this will tend to boost your buying decision & will give you confidence in

your buying decision. This would act as a promotion as well.

Reduce the margins between the big & small dealers so that the small dealers have a

good chance of competing with these giants.

Offer incentives to dealers to achieve set targets. Example: If a dealer meets his targets

provided him/her with a free Ac or a Cash incentive.

5. Place

Voltas has ensured its product presence at almost all tiers of cities throughout the country

through local retailers, exclusive showrooms, malls, electrical and electronic superstores

etc.

Since last year, the company has also started coming up with special retail franchisee where

all the Voltas products are installed in working conditions so that the consumers can check

and feel the features of the product at the store. The location of such innovative stores is made

such that it caters to majority of the areas within its radius.

Findings about Place

It was found that Voltas had to go through a lot of nitigrity processes which are time

consuming hence resulting in slow delivery.

While LG manages to delivery its air conditioners in a1 days it was found that Voltas

delivered its air conditioners in 2 to 3 days.

The installation of the air conditioner too was found to be on the slower side while

comparing it to market leader LG.

The market penetration can be increased by having more number of dealers.

Only 2 warehouses in Mumbai.


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Recommendations about Place

Make process short & simple to ensure quicker delivery of final product.

Improve the pace of installation at customers place.

Reduce the delivery time from 2 to 1 day.

Decide on the best possible channel of distribution keeping in mind companys value to its

customers.

Developing operational excellence in sales forecasting, warehouse management,

transportation management & material management.

Having more number of dealers to increase the market reach.

Having more number of warehouses at strategic locations could reduce the time lag.

Reducing the cost of logistics & passing on the benefit to the consumer.

To reduce octroi charges the movement could be directed via Goa as its an octroi free zone.


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6. Promotion

Voltas advertisement strategy clearly depicts their customer segmentation and positioning

within market. The advertisement is meant to emotionally bridge the gap within its

consumers who feel that AC runs on electricity bill to electricity saving AC.

The promotions done through magazines are smartly placed and designed to attract

different income level customers who prefer AC with good exterior look and low on

energy bill.The after sale service shops are present in all major tier A, B, C cities.

Voltas has even developed its own 24 hours dedicated customer care representatives to

take all types of complaints, feedbacks and suggestions from customers.

7. Research and Development

Voltas uses the state of the art technology in its entire product range. With the solid back up

of Voltas and dependable Indian label, Tata, Voltas AC continuously develops its product to

match with all the compliance and customer requirement.


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MARKETING STRATEGY

Marketing is not Euclidean geometry a fixed system of concept. Rather marketing is one of

the dynamic fields with in the management arena. The market faces continually a new

challenge everyday and companies must respond to it positively. Therefore it is not surprising

that new market idea keep surfacing to meet new market place challenges.

The market process is applicable to more than goods and services. Anything related to market

including ideas, events, policies, prices and personalities comes under market strategy.

However it is important to emphasize opportunity in the market through market strategy.

Following strategies adopted by the organization.

Niche Marketing:

Voltas has kept their marketing objectives for niche segments. The specific marketing effect

helps them staying focused with their product and customer demand

Multi Prolonged Strategy:

Voltas marketing strategy is a long term approach. They have not changed their stand since

the inception of the brand and continue to promote the same value proposition of economic

energy consumption to their customer segments. This has helped them in creating a brand

sentiment within masses and the featured product are helping them in getting into cutting edge

competition.

Corporate selling at discount price to Employees:

Voltas has adopted an amazing marketing technique of offering their AC product at reduced

price to the employees of TCS. This promoted the brand within in house.

On the basis of marketing strategy an organization runs in the market. It is several types of

which makes helpful to increase sales and turnover of the organization.


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STRATEGIES FOR GROWTH

Voltas has identified mega air-conditioning projects within the country and abroad as an

opportunity area for growth. At the other end of the spectrum, the Company has

aggressive plans to enhance its share in the growing market for window and split air

conditioners, with a specific focus on corporate and commercial customers. Voltas has

ambitious plans to expand its commercial refrigeration business as well. Encouraged by

the recent break-through orders from Sri Lanka, Yemen, Maldives and Armenia for

water coolers, room air conditioners and packaged air conditioners, the Company wants

to strengthen its exports operations as well.

Product Awareness

Advertising is the main tool in the hands of the company so as to make the consumers

aware regarding the different products available in the market. Above all Advertising is

a good business

Advertising is the marketing force, which helps in mass selling and distribution.The

company gives their advertisements through

Road side hoardings, banners & signboards

Newspapers like Times of India, Hindustan Times, Navbharat Times

Magazines like India Today, Business Outlook, etc.

It is about to begin with TV Advertisements

Consumers come across advertisements for their brands everywhere - television, print,

posters, Internet and through sponsorships and goodwill campaigns. With the changing

face and speed of communication today, the company is focussed on using media

specific to audiences.

Strong Dealer Network

The Company has got a strong dealer network all over India and the products are

available in each town and area.


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Credit Facilities & Discounts to dealers

Dealers, retailers, sub-dealers are also vital to be due to be given due importance. It is

also necessary to understand the dealers, retailers, and sub-dealers because they are one

of the important people who can push the sales of the company. It was found that dealers

mainly want that the company should give them credit facilities and discounts.

VOLTAS is the overall winner in its category. And according to them the dealers are

also the controller of the sales to some extent. One of the important information is that

most of the dealers ask the customers to wait and assure him the delivery if the

particular brand is not available. For Example, VOLTAS comes out with new schemes

for dealers every month for special promotions. Special margins are made available to

dealers from time to time. Overall the company operates as many as half-a-dozen

schemes at any given time.Moreover the company ensures that dealers accounts are reconciled every quarter.

Customer Care

It was found that the company more or less analyses what customers are looking for and

then incorporate those features in their products. The company provides quick &

efficient after sales services. The service mission of VOLTAS is to become the most

customer-oriented company in the country, by building a proactive service organization

that continuously strives to create customer satisfaction, by internalizing the best

practices of customer relationships management.

Innovations

Voltas launches stylish split air conditioners

Air-conditioning and Commercial Refrigeration major, Voltas, has launched a new

range of hi-wall split air conditioners across the country. The new range comes in two

versions - one with an electronic controlled cordless remote and the other with an

electronic controlled corded remote.

Available in capacities ranging from 1 ton to 4 tons, these aesthetically appealing air

conditioners come with a host of features like fuzzy logic, sleep mode, programmable


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timer, oscillating louvers, auto restart and non-volatile memory. The outdoor unit, which

houses the all important heart of the air conditioner, the compressor, is capable of

withstanding a 1000-hour salt spray test, making it an ideal choice for coastal areas.

These air conditioners are also attractively priced, starting from Rs 26,720 onwards.

Voltas launches aesthetically appealing Cassette ACs

Central air-conditioning and Commercial Refrigeration major, Voltas, has launched

anew range of contemporary and aesthetically appealing Cassette Air-conditioning

Systems. These systems blend beautifully with stylish interiors. Apart from its looks,

these systems are also extremely silent. Cassette air-conditioning systems is the ideal

choice where ducting is not practical, due to structural constraints such as low

crossbeams and low ceilings.

The Voltas Cassette ACs distribute cool air in four directions without ducting and comewith a host of powerful features apart from remote control for ease of operation. They

are also installation friendly. They incorporate a scroll compressor, which ensure sthat

the system is energy efficient and maintenance free. The systems come with newly

designed aesthetically superior low noise outdoor units.

The Cassette AC Systems are available in capacities of 2, 3 and 4 tons and are

attractively priced at Rs 86,700 onwards.

Voltas launches new Turbo Rotary Remote Air conditioners

Voltas has launched a new range of sleek, stylish and contemporary turbo rotary room

air conditioners. These air conditioners, which are available in unique capacities of

1.25and 1.75 Tons, incorporate a Mitsubishi Rotary compressor, anti bacterial filters and

corrosion resistant condensers to ensure silent operation and substantial savings in

electricity bills. Voltas, who are currently leaders in the Air-conditioning segment, have

nearly six decades of experience in providing expert cooling solutions not only in India

but also overseas.

Its commitment to add value to customers in terms of design, installation and after sales

service has resulted in it being associated with the most prestigious projects and

companies.


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This latest offering from the stable of the Air conditioning expert includes advanced user

friendly features such as Sleep Mode, Programmable Timer and Fuzzy Logic apart from

Remote Control.

The 1.25 Ton capacity is designed for cabins and bedrooms while the1.75 Ton is

positioned for bigger halls. These unique capacities fill the gap in the room air

conditioner segment where customers till now had the option of only 1, 1.5 or 2 Ton

capacities.


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MARKETING MIX

Target Market

Product Price Promotion Place

Product variety List price Sales promotion Channels

Quality Discounts Advertising Coverage

Design Allowances Sales forces Assortments

Features Payment period Public relation Locations

Brand name Credit terms Direct marketing Inventory

Packaging Transport

Sizes

Services

Warranties

returns


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MARKET POTENTIAL

The size of the air-conditioner industry in India is about Rs 2,000 crores. The industry can be

sub-divided into non-ducted and ducted products. The demand for non-ducted products --

window air-conditioners and mini-splits -- comes from both households and corporate. The

demand for ducted products -- central plants, packaged air-conditioners and ducted splits -- is

only from the corporate.

A vast majority of middle-class Indian homes have traditionally battled the summer heat with

the help of fans or giant fan-driven water coolers which blast cool air. "All these years

companies have thought of an AC as an expensive luxury product but that's no longer true,

(The AC) has moved from its luxury status to a necessity item just like any washing machine

or refrigerator. Air conditioner companies see India as a potential gold mine as it offers a

winning combination of rising disposable incomes and AC ownership levels of just 1.1

percent of households. And average prices for air conditioners in India have dropped by about

20 percent over the past two years thanks to new companies entering the fray, making them

more accessible to consumers.

With average incomes rising, AC penetration to follow the same trajectory as colour TV

ownership which is pegged at 18 percent of all households and whose sales have also been

spurred by falling prices. The dismal supply of power where outages, lasting hours, are a part

of life in large swathes of India, could still throw a spanner into the bullish hopes of AC

companies. The big problem is the quality of power supply and the cost of running an AC

running costs are upwards of three rupees an hour depending upon electricity tariffs. Also

hurting growth is the unofficial "grey" market that accounts for close to 15 percent of the

sales. But that is down from 70 percent a decade ago, as competition among established

players and growing preference for brand name ACs among consumers who want after-sales

service has narrowed the gap to around 3,000 rupees from 7,000 earlier. It will shrink further

and further as markets mature and consumers get educated.

Indian air conditioner market is already flooded by players like Hitachi, Whirlpool, LG, Haier,

Samsung, Voltas, Videocon and many more each competing on the basis of price and features.


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Limitations of the Project

1. The sample used for our consumer behaviour analysis is very small and does not

represent the whole market

2. The study is based on articles, presentations, etc available in library, internet, companyhome page etc. only

3. Due to the lack of field work there is no substantial backing for the recommendation

4. The analysis is done by under trainee students and cannot be taken as final report

Recommendations:

In the coming years competition will intensify more, so companies will have to fight hard towoo the customers. Crucial role facilitates price control. In other words, lower down its cost

of production.

Company should improve there after sales service & should go for warranties for long

durations.

Company should also come up with the new schemes for the customers. This will help in

attracting more and more prospects.

It was found that most customers owning ACs were interested in an exchange offer. So,

company can also consider exchange offer scheme to beef up its sales.

Electronic media has a very effective reach in each and every potential household, but Blue

Star is not using this media. So Blue Star should stress on electronic media to beef up its

sales.

The Advertisement should be such that customer develops an emotional attachment with the

product.

Company should come out with 0% Finance Scheme. Due to this scheme more and more

prospects will enter into the customer base of Blue Star.

The product must be available at most of the places keeping in mind that the distribution

cost should remain minimum.

Last but not the least the company should introduce their consumer electronics products. Such

as Television and washing machines.


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CONCLUSION

Based on this Marketing research project we were able to make the following conclusions

about the brand Voltas AC

1. Customer Behaviour With the help of our survey we were able to deduce that the

consumers of ACs are mostly driven by Energy efficiency, maintenance cost, after sale

support

2. Marketing Strategy ofVoltas Voltas has strictly adhered to their mass marketing

technique and highly efficient products at reasonable cost of owning. This has helped

Voltas to capture the niche market of cost sensitive consumers and even retain them.

3. Market Share ofVoltasVoltas is doing fairly well in the current scenario with its last

quarter results showing positive development

4. CustomerSegmentation Voltas customer segmentation is very clear and they have

streamlined their products as per the same.

5. Product Differentiation Voltas has a good line of products within each type of

products.

Voltas is a prominent AC brand within masses which promises cost saving through energy

efficiency to their customers. They have been able to reach out to their customer segments

through very emotional and powerful advertisement channels. The recent partnership at the

Abu Dhabi Grand Prix race, 2008 gave them an International dimension. Voltas has been

pioneering themselves across all segments of ACs with their solid engineering expertise of

Voltas engineers and great Indian value company Tata.


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BIBLIOGRAPHY

http://www.voltasac.com/news-6.aspx

http://www.thaindian.com/newsportal/business/voltas-targets-premium-air-conditioner-segment_10029375.html

http://www.theequitydesk.com/forum/forum_posts.asp?TID=1742

http://www.tata.co.in/company/media/index.aspx?sectid=PwJV/FG+lC4=

http://www.voltasac.com/air-conditioners.aspx

Documents

Allied Voltas PDF