Analysis of Three Successful Consumer Goods of

7/31/2019 Analysis of Three Successful Consumer Goods of

1/70

IN COMPANY TRAINING REPORT

ON

ANALYSIS OF THREE SUCCESSFUL CONSUMER

GOODS OF BPL(COLOUR TELEVISION, REFRIGERATOR, WASHING

MACHINE)

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

BACHELORS OF BUSINESS ADMINISTRATION (BBA)

GURU JAMBHESHWAR UNIVERSITY, HISAR

TRAINING SUPERVISOR SUBMITTED BY:

MR. ASHOK KUMAR AWADESH SHARMA

(MARKETING DEPARTMENT) ENROLLMENT NO.:

06511213011

SESSION: MARCH 2009

DIRECTORATE OF DISTANCE EDUCATION

GURU JAMBHESHWAR UNIVERSITY OF

SCIENCE AND TECHNOLOGY

HISAR-125001


2/70

1

CONTENTS

Page No.

Company profile 3

Phase-I (Project C TV) 8

SWOT analysis 8Marketing mix 13

Product 14 Price 15 Place 15 Promotion 23 Positioning 23

Phase-II (Project Ref.) 24

SWOT Analysis 24Marketing Mix 27

Product 28 Price 29 Place 31 Promotion 31 Positioning 32

Phase-III (Project W/M) 33

SWOT Analysis 33Marketing Mix 34

Product 35 Price 36

Promotion 37 Positioning 37

DEALERS SURVEY 38

CONSUMER SURVEY 49

FINDINGS 56

CONCLUSION 60

BIBLIOGRAPHY 63

APPENDIX 64


3/70

2

ACKNOWLEDGEMENT

This project is based entirely on personal finding and information,

which was gathered from all reliable sources. I have been careful to

avoid disclosing anything, which in my judgement could adversely

affect BPL Ltd.

It is impossible to thank personally all the people who have helped

in the making of this project. But I would like to take this

opportunity to express my profound gratitude and indebtedness to

the following.

I am grateful to my guide and project coordinator Mr. Ashok

Kumar (Marketing Department) who provided me with valuable

advice and assistance for arriving at the most functional and

relevant format of this project and constant monitoring of the field

work, which was a great moral booster. I also thank her for helping

me out of problems and bottlenecks.

Lastly I thank all my colleagues and friends for providing moral and

academic support to me during the course of my project.


4/70

3

COMPANY PROFILE BPL LTD

BPL Came into being with a vision that was nurtured by T.P.G.

Nambiar.

BPL incorporated as British Physical Laboratories Ltd. n 1963 to

manufacture hermetically seated panel meters. Now its Business

areas include consumer electronics, Telecommunications,

Consumer durables, Soft energy, professional and Medical

products, power and components covering over 230 products and

services.

BPL PRODUCTS DIVERSIFICATION:

EntertainmentElectronics

BPL Ltd.

BPL Sanyo Technologies

Ltd.

BPL Sanyo Ltd.

Colour & B&W TVs

VCRs / VCDs

Audio Systems

Satellite Receivers

Home Appliance BPL Refrigeration Ltd.

BPL Sanyo Utilities &Appliances Ltd.

Refrigerators

Washing Machines

Microwave Ovens

Vacuum Cleaners

Gas Cables

Components BPL Engineering Ltd.

Electronic Research Ltd.

BPL Display Devices Ltd.

TV, VCR & AudioComponents

Components forHome Appliances

Compressors Other

ElectronicComponents


5/70

4


6/70

5

Telecommunications BPL MobileCommunication Ltd.

BPL US West CellularLtd.

BPL Wireless TelecomServices Ltd.

BPL Telecom Ltd.

Celluar Services

(Mumbai,Maharashtra,Kerala, TamilNadu)

Paging Services

(Kerala,Karnataka,TamilNadu)

Business

Communications

Transmission &Scade

Consumer Telecom

Power BPL Power Project(AP) Ltd.

520 MW PowerGeneration atRamagungam,Andra Pradesh

Soft Energy BPL PTI ChemicalsInd. Ltd.

BPL Ltd.

Alkaline Batteries

ManaganeseBatteries

RechargableLanterns

ProfessionalProducts

BPL Ltd. Colour Monitor

CTV Cameras

Medical Electronics

LCD Projectors


7/70

6

Technical Collaboration:

BPL has its Technical collaboration with the worlds best:

Sanyo Japan For consumer electronics,

home appliances

components, officer

automation products, soft

energy product

Toshiba Corporation For colour picture Tubes, key

Telephone and power project

France Telecoms & US West

International

For cellular mobile phone

service

Media one & Harriz

Communcaiton

For digital switching system

Octel For voice processing system

Nokia For private mobile radios

Korea Heavy Industries Balck

& Veatch and Marubani

For power projects

Production Capacity:

BPL is the flagship of the Rs. 30 billion ($ US 755 million) as per

March 1998 financial statement states. It has unrivalled


8/70

7

infrastructure of 30 factories covering over 5 million square ft. and

highly skilled 13000 strong force i.e. perhaps one way BPL can

retain its status as a low cost manufacture. Its personal costs, as

percentage of sales, were 1.57% in

1997-98 compared to Videocon internationals 1.7%, Mirc

Electronics 3.90% and Philips Indias 7.20%.

BPL Ltd. In CTV Product manufacturing capacity is at the top.While in case of refrigeration and washing machine its capacity

utilisah is comparatively 47% and 72% respectively.

NAME OFUNIT

PRODUCT CAPACITY(MILLION)

STATUS

BPL LTD CTV 5.0 UNDERIMPLEMENTATION 1999

BPL LTD B & W 1.0 PLANNNG

BPL LTD CTV 1.0 UNDER

IMPLEMENTATION1999-2000

Especially, since its competitors like Electrolux, Videocon & Godrej-

GE are way ahead of it in the volumes games. Therefore BPL will

have to either invest in expanding its capacity or possibly seek

acquisitions. Only when this happens then the customer believe

that BPL is the Best.

BPL Export Performance;

BPL won many awards from the Government of India in recognition

of BPLs exemplary export performance. BPL groups state of the

part art manufacturing units have been exporting a wide range of


9/70

8

products since 1991 to many countries around the world

particularly to USA, Europe, Japan, Taiwan, Singapore and South-

East Asia.

MAJOR CATEGORIES OF PRODUCT FOR EXPORT ARE:

Soft Energy: -

Alkaline batteries are manufactured under the license form Sanyo

and are exported back to Sanyo and also to Fuzi Films for their

disposable cameras. BPL has the capacities to manufacture 15

million pieces per months. The batteries are available in two sizes:-

LR03 (AAA)

LR06 (AA)

These are environment friendly batteries with a zero mercury and

cadium content. These batteries can be offered in private labels in a

wide choice of packaging.

Computer Monitor:

BPL started exporting SVGA Colour Monitors to USA in 1996. Kleer

monitors in sizes 14, 15 and 17 are making waves in the USA

markets and are available through a number of mail order and

regional distributing companies. BPL also supplies monitors to

Europe under OEM labels.


10/70

9

PHASEI

SWOT ANALYSIS

STRENGTHS

90% Manufacturing Base. BPL Ltd has acquired four CTV

manufacturing facilities in the country on lease basis. This takes

companys CTV manufacturing capacity 2 millions units from

existing 1.2 million.

Units are located in:

Banglore

Chennai

Delhi

Palakkad

BPL also acquired Uptron facility

Brand Awareness

BPL never lost the mind game, according to A&M annual survey

BPL is Indias first most admired consumer durable firm. Trisys an

independent research agency has valued the BPL brand at Rs.

1,102 crore.

Maximum dealers networking in India almost 4000 authorised

dealers which gives it price control & maximum reach.

Collaboration with worlds best manufacturers which upgrade its

technology when market demands.

65% of Indias CTV Industry depends on BPL for equipments.


11/70

10

Second Largest Exporter of CTV after Sony but still commands in

14 & 17 CTV Exports.

S.No. Company Exports share CTV Sets

1 Sony 34.5% 55292

2 BPL 23.16% 37132

3 Videocon 19.52% 31277

4 Dixon 16.34% 26171

Note BPL was No.1 last year at 58% export share

BPL is adorned with internationally aclaimed quality standards.

The BPL group has reported whopping 36% rise in volume in CTV

for the period April 1998 to Feb. 1999 according to latest ORG

Report.

With this BPL has maintained its No.1 Position with an over all

market share of 23.2% last year.

Despite the domestic market getting fragmented due to stiff

competition. In four out of five segment of CTV (20, 21, 25, 29)

BPL is No. 1.

(Above mentioned facts helps BPL to check on price, distribution and

cost which further reflects in lower price & better service

maintenance.)


12/70

11

Weaknesses:

Considered as premium brand so middle class people think it is

unaffordable.

Non-Existence of BPL in CTV exports in following categories:

20 CTV

21 CTV

25 CTV

29 CTV

Although BPL protected its No.1 Position in domestic CTV market

but is regularly losing market share.

Dec 1998 June1999 Dec.1999

22% 20.2 % 19.7%

BPL slipped to no.2 in 14 CTV

Opportunities:

Potential market for CTV sets in India is vast as CTV penetration in

the country is one of the lowest, 43 persons per 1000 population

possess a TV set.

60% of CTV revenues seem coming from rural areas, BPL can cash

upon this.

Indias rapidly growing middle class segment.


13/70

12

Growing replacement market.

Multiple TV homes increasing.

TV Veopar Journal states, greater export potential for CTV in

Singapore (currently 81% export share), followed by UAE (18%),

China & Malaysia.

Threats:

Kabir Mulchandani picked up AIWA over Akai since AIWA is

producing kits 10 15 % lower prices than Akai. Hence armed up

for low-price war in CTV 14 Rs. 5950, 20 Rs. 11440.

China largest TV manufacturer KONKA ready to hoist the red flag

over Indias CTV Market. KONKA entered the CTV arena last year.

Kabir Mulchandanis Marketing Sales & Distribution tie up with

HHEA (Hitachi Home Electronics Asia) to initially market three

models 21, 29 & 33.

Patent rights on On Screen Display and Menu Display a major

road block for BPL exports to Germany, U.S.A. & Italy.

Existing MNCs Samsung, AIWA, LG and Philips continuously

raising their share while BPL despite of increasing sales losing its

market share.


14/70

13

Segment BPL Market Share as on

Dec.1999

Volume growth over

Previous Year

20 21.1 % 50.5 %

21 18.1 % 7.7 %

25 47.5 % 33.1 %

29 30.6 % 192.3 %

14 13.0 % 75.7 %


15/70

14

ANALYSIS OF COLOUR

TELEVISIONS MARKETING

MIX

Products Price Place Promotion Positioning


16/70

15

PRODUCT

Model

14" Portable

KSR

KDR

KBR

KTE

20" CTV

EBR

LVR

LXR

LCR

21" Flat & Full Square Tube

FQR

FXR

FHR

FTR

FWR

FYR

25" Large Screen

BQR

BXR

BZR

29" Large Screen

NPR

NQR


17/70

16

PRICING

The BPL brand commands a premium position in consumer

durables. But, if it has to climb up the volume, ladder, it has to step

down the price-ladder since it is the middle class segment that have

the potential for growth.

Size Price (Rs.)

14 70001000020 100001200021 130002000025 200003000029 3500045000PLACE

Needless to say that competitive scenario in the CTV Market is

extremely intense. Infact the industry is gradually becoming over

crowded and competition is cut-throat.

So in present marketing situation BPL to become CTV leader has

three marketing strategies (3M) available to deal upon.


18/70

17

I-M - Marketing in Traditional Area (Urban) Butwith new marketing perspective.

II-M - Marketing in Rural Area.III-M - Marketing in Overseas (Exports)Although earlier, BPL had placed itself as marketing leader in I-M

&

III-M, but recently it has lost its leadership in export.

Also it is striving to maintain its supreme position in urban market,

since its market share has reduced to 19.7% in December 1999 as

compared to 22% in December 1998.


19/70

18

I-M MARKETING IN URBAN

BPL LG Konka

Videocon Sony T-Series

Onida Thompson Sharp

Samsang Panasonic

Philips Akai

Aiwa Daewoo

In current situation around 15 CTV manufacturers are fighting cut-

throat competition in urban market. As out of 15 listed CTV

manufacturer 74% (11) are MNCs with a total 54.7% (Dec'99)

market coverage.

And in initial phase of their marketing strategies (Top to bottom)

they always prefer to cater in large density cities/towns. Thus

making the urban market congested and operating at thin margins,

by working at large volumes and low price.

Even BPL is striving to maintain its supreme position since despite

of rise in sales volumes to 63,800 in 1999 from 55, 400 CTV sets in

1998.

Its market share reduced to 19.7% in Dec'99 from 22% in Dec'98.


20/70

19

II-M MARKETING IN RURAL

Why go rural

Urban Market is over crowded with domestic as well as MNCplayers and saturated urban demand made the profit margin

thin.

60% CTV revenues seen coming from rural areas in 2005 whichis almost 30% at present. (FICCI)

Increased rural income resulted in growing consumerism. Pioneer is the first & maximum beneficiary. You do otherwise some other will do, as Philips & LG started to

look upon Rural Segment.

Analysis:

Over the past twenty years there has been a great increase in

television viewership in rural ares as compared to urban areas.


21/70

20

III-M MARKETING IN OVERSEAS (EXPORTS)

WORLDWIDE CTV DEMAND OVER THE YEARS

Analysis : Huge potential for BPLs, CTV Export

91.2 95.2100.2 104.9

114.7120.4

125.4 128

150

0

20

40

60

80

100

120

140

160

WorldwideCTVDemand

(Million

Nos.)

1990 1991 1992 1993 1994 1995 1996 1997 2000

Years


22/70

21

The Paradigm Shift

The Transition of TV viewership from Urban to Rural, which makes

it evident that Rural percentage has suppressed the urban. Hence

they are the better prospects to target.

It is evident from the above pie charts the relative importance of the

rural market for CTV manufactures (BPL) is rising.

1985

Rural

30%

Urban

70%

Rural

Urban

1980

Rural

20%

Urban

80%

Rural

Urban

1990

Rural

40%Urban

60%

Rural

Urban

1996

Rural

51%

Urban

49%

Rural

Urban

Expected in 2000

Rural

60%

Urban

40% Rural

Urban


23/70

22

Geographical distribution of T.V viewership in urban and rural

India.

Analysis:

TV viewership is high in North, West & South India Rural areasso they are better prospects for the sale of CTV.

48.58

62.7865.8

42.55

66.82

58.8254.7

49.9

010

20

30

40

50

60

70

80

North West South East

Regions

Viewership(%)

Urban

Rural


24/70

23

PROMOTION

The beginning of 1998 did not present an exciting picture of CTV

manufacture, with poor counter sales and the economy witnessing

a slow down in many key segments. Thus manufacturers had to

stimulate demand and wake up latent desires. With more than 15

brands competing in the same market place, and with very little

differential between one brand and the other. Companies resorted

to various tactics to attract the attention of the consumers.

Free gifts, attractive exchange offers for old TVs sets, money back

offers and zero-percent finance schemes have become handy tactics

to push up sales with each company outdoing the other in giving

free gifts and discounts.

The market registered a dramatic increase in size last year, BPL has

also introduced some exciting offers to attract the customers, like:

A. Real Discounts.

B. Exchange Offers

C. Installment Schemes.


25/70

24

Positioning:

Undoubtedly, BPL is considered as top brand and its positioning is

basically based on following categories:

A. Attractive Looks

B. World Class Products

C. Attractive Advertisement

Analysis:

BPL is declining in its positioning strategies, where as LG is

regularly gaining growth.


26/70

25

PHASEII

BPL SWOT ANALYSIS

Strengths

It commands a leading position in frost free segment with 43.4%market share

Top Brand awareness BPL Refrigeration merger with Sanyo to uplift BPLs market

share.

Weaknesses

BPL Refrigeration has accumulated losses of Rs. 55 crore or 47%of its net worth. It has incurred a loss of Rs. 41.49 crore in 18

months ended Dec'98.

BPL brand has greater association with CTV Negligible presence in direct cool segment which constitutes 80%

Refrigeration market.

Opportunities

Expected market share in frost-free Refrigeration and Direct coolis 40:60 in 2000 and 60:40 in 2005 respectively.

Rural market in North India with small size Refrigerator range165-200 litre.


27/70

26

To be pioneer in introducing first ozone-friendly HFC-134refrigerator.

Threats

MNCs like Whirlpool, Daewoo gaining ground in domesticmarket.

Montreal protocol- Till 2010 entirely eliminate the consumptionand production of CFC- Refrigerator.


28/70

27

ANALYSIS

BPL is the leader in the frost free refrigerator segment share(43.4%) of price range (Rs. 14000-23000) but it has negligible

presence (0.02% market share) in the direct-cool refrigerators

Price range : (Rs. 9000-18000) business, which constitutes 85%

of the Rs. 3500/- crore market.

With the help of Sanyo, BPL is committed to become marketleader in Refrigeration also.

There's no denying that BPL Refrigeration accumulated lossesraised to Rs. 55 crore, 47% of its networth, in Dec'98. But its

new merger with Alpha securities & BPL Sanyo may help it to

overcome its turnover tumble in near future with enough finance

availability and expanding capacity.


29/70

28

ANALYSIS OF

REFRIGERATORS MARKETING

MIX

ProductPricePlacePromotionPositioning


30/70

29

PRODUCT

4-Door

Launched Model Capacity(Litre)

FreezerCompartment

(Litre)

RefrigeratorCompartment

(Litre)

1996 BR 3504 350 78 272

Product USP

"Deodoriser (Actocarbo), Humidity Controlled Vegetable,Compartment"

6-Door

Launched Model Capacity(Litre)

FreezerCompartment

(Litre)

RefrigeratorCompartment

(Litre)

1997 SR 56 x J 560 180 380

PRODUCT USP

"100% CFC free" "Fuzzy logic temperature control and neuro logic defrosting" "Automatic ice-maker"


31/70

30

ANALYSIS

BPL does'nt have any model in 165lt category despite the factthat about 77.5% market share is captured by 165lt in

conventional refrigerator.

BPL has better prospects in frost free segment since its marketshare is forecasted 40% in 2000 in comparison to 20% in 1998.

PRICE

Company Model Capacity (litre) Price (Rs.)

BPL BR 1852 185 12,800

BPL BR 2002 200 14,400

BPL BR 2502 250 17,700

BPL BR 3102 310 23,500

BPL BR 310VX 310 24,000

BPL BR 3503 350 28,500

BPL BR 4852 485 46,000

BPL BR 5502 550 63,000


32/70

31

Analysis

Being premium brand, BPL exhibits premium pricing policy in most

of its refrigerators. But stiff competition scenario and growing

middle class, today, demand BPL to power down in pricing ladder to

capture big chunk of market share.

Presently BPL follows following pricing strategy in various capacity

of refrigerators.

185 lt - Competitive pricing

200 lt - premium pricing

250lt - Premium pricing

310 lt - competitive pricing

350 lt - competitive pricing




33/70

32

PLACE

BPL should focus on a TWIN strategy to raise its sales volume :

1. Place bigger models (185 lt. and above) in Urban areas since inUrban areas demand is shifting from traditional 165lt., to

capacities of 185lt and above. Also in replacement scheme

mostly consumers prefer bigger models.

2. Pushing the smaller models (below 250lt)) in rural market ofNorth & South India, like U.P., Punjab, Haryana, Kerala,

karnataka, Maharastra etc.

Promotion

BPLs Ad campaign of "80:20 Principle" scripted a success story in

1998-99. Which stated space for placing vegetables, fruits and

cooked food.

BPLs advertisement and expenditure largely executed on CTV in

comparison to Refrigerator or washing machine which resulted in

lower "top-of the mind" brand recall" of BPL in refrigerators.

With the entry of foreign players, another trend emerging is that of

the fancy exchange offers for the existing old models i.e., something

which had been their standard marketing penetration strategy in all

electronic application.

Following in the same pursuit, BPL has also introduced certain

exciting schemes like:


34/70

33

1. Discount offer2. Exchange offer3. Installment schemesPOSITIONING

The BPL brand commands premium position in refrigeration

category in one segment, and a non existent position in the other

segment.

BPL Positioning in refrigerator can be broadly classified under two

categories.

Direct cool refrigeration

BPL has a negligible market share since it entered this segmentonly in 1998.

Frost Free Refrigeration

BPL is the market share leader in this segment.


35/70

34

PHASE - III

SWOT Analysis:

Strengths:

Third Largest player in W/M. 80% Sale form Semi Automatic Category. BPL Merged with Sernyd Alpha securities in July'99, which

stimulated good business.

Opportunities:

Urbanised sector still have huge untapped potential for bothSemi Automatic (SA) and Fully Automatic (FA) segment of W/M.

Weaknesses:

Need to upgrade fully automatic segment. BPL Brand most known for CTV and a big portion of its

advertisement expenditure goes to CTV.

Threats:

MNCs, like Whirlpool, Samsung, LG & IFB Strengthening theirroles in Indian market at the cost of domestic players.

Technology oriented competition.


36/70

35

ANALYSIS OF WASHING

MACHINES MARKETING MIX

Products Price Place Promotion Positioning


37/70

36

PRODUCTS

Semi Automatic

Deluxe 30

BS 35

BS 40

BS 50

BS 65

USP Pressure Cleaning Technology: -

By using the force of water it crates maximum turbulence

Action Soak Option: -

In case of really dirty clothes, the soak process consists of detergent

dissolution, repetitive cycle of silent immersion and agitation.

Fully Automatic

ABS 45 Deluxe

ABS 45 Super

ABS 50 F

USP Fuzzy Logic: -

Depending on the fabric type and the number of clothes, the

quantity of water to wash is decided and filled in by the machine


38/70

37

and quantity of detergent is indicated on the panel. The wash, rinse

and spin cycle duration are determined automatically.

PRICE

Semi-Automatic (Rs. 6000-10000)

Fully Automatic (Rs. 12000-20000)

The years ago, a washing machine was considered an essential item

only on the conspicuous consumers shopping list for status

symbols, even if this object of desire in the bath room.

Today they have become so much part of the urbanities list of

necessary household appliance that she could not wash her dirty

linen in public even if she had a mind to.

Analysis :

Both Semi Automatic and Fully Automatic are demanded in

Urbanised sector and in few rural sector Punjab, Haryana &

Maharashtra where it is perceived as status symbol.


39/70

38

PROMOTION

Exchange Offers: -

Six leading players including BPL have flooded the washing

machine market with Old for New exchange schemes. These price

wares in disguise offer up to Rs. 3000 off on a new washing

machine of BPL.

BPLs Ad Campaign Fights Dirt Not Clothes played an important

role to surge its sales volume in 1998-99.

Positioning: -

In washing Machine, BPL enjoys the third largest position and is

regularly strengthening it.

It is considered an affordable W/M manufacture equipped with

latest technology.

While in fully automatic segment its still working on premium

brand positioning but with competitive Price i.e. emphasis is on

heavy promotion with competitive pricing.


40/70

39

BPLS DEALERS SURVEY IN DELHI

Ref. Q. 1 :

Average CTVs, Refs, W/Msold per dealer in Dec.99

Product

Territory

CTV Refs. W/M

SD 35 29 19

WD 15 18 15

C &E 36 21 28

WD 20 13 12

106 81 74

Average CTV, Ref, w/m sold per dealer in Dec99

0

5

10

15

20

25

30

35

40

Average

Un

itsper

dea

ler

so

ld

SD ND C&E WD

Regions

CTVs Refs. W/M

Findings:

SD & C&E Delhi evolved as major in BPL sales volume inDec. 99.


41/70

40

Ref Q. 2:

What was the break up of unit sold (Av. Sale per dealer)

a) CTVModel Size

Territory14 20 21 25 29

South Delhi 5 13 10 3 4

North Delhi 2 7 5 1 -

Central & East 7 10 14 5 -

West Delhi 10 5 5 - -

Total 24 35 34 9 4

%age 22.6% 33% 32% 8.4% 4%


Findings:

65% market share of BPL CTV sale is captured by 20 & 21 CTV.

23%

33%

32%

8%

4%


42/70

41

Ref. Q. 2:

b. Refrigerator


Capacity lt

Territory185 200 250 310 350 485 550

SD 8 5 3 2 1 - -

ND 7 6 4 2 1 - 1

C&E 10 10 - 5 - 3 1

WD 7 3 - 2 - - -

Total 32 24 7 11 2 3 2

%age 39.5% 29.6% 8.6% 13.6% 2.5% 3.7% 2.5%

What was the breakup of unit sold (av. Sales per dealer)

Findings :

69.1% sales is recovered from (185-200lt) segment followed by13.6% of sales from (310lt).

39.5%

29.6%

8.6%

13.6%

2.5% 3.7% 2.5%

185

200

250

310

350

485

550


43/70

42

Ref. Q. 2 :

c. Washing MachineWhat was the breakup of unit sold (av. Sale per dealer)

Territory

Model

SD ND C&E WD

SA 15 8 10 11

FA 11 4 6 5

Total 26 12 16 16

% 37.1 17.1 22.9 22.9

Finding:

a) SA type leads with 62.9% market share of total of BPLs W/Msales.

b)Territory wise SD and ND constitute for 54.2% sales ofW/M.


44/70

43

Ref. No. 3 :

Which other brand do you keep in your show room.

Findings:

Since most of BPL dealers also keep other competition brands intheir show room which gives consumers an option to choose

other brands hence hampered BPL sales.

15%

85%

Only BPL Other Brands Also


45/70

44

Ref. Q. 4 :

What do you think about the margin given by the company.

Capacity

TerritoryVery Good Average Low

SD 2 2 7

ND 1 2 5

C & E 2 3 8

WD 1 3 4Total 6 10 24

%age 15 25 60

Findings :

a) 60% Dealers are not satisfied with margin given by BPL incomparison to competitors.

b) And if margin is increased, most dealers confirm to increase10% or more sales of BPL products.

60%25%

15%

Low Margin Average Margin Very Good


46/70

45

Ref. Q. 5 :

Do you think company should force all its dealers to sell its

products at fixed price.

NO

93%

YES

7%

NO

YES

Findings:

a)Theres negligible controversy (7%) among BPL dealers interms of Price off given by the co-company.

b) So BPL should not force its dealerss to sell its products atfixed price.


47/70

46

Ref. Q. 6 :

Are you satisfied with the current inventory level.

Capacity

Territory

Y N

SD 7 2

ND 2 5

C & E 8 1

WD 1 4

Total 18 12

%age 60% 40%

Findings :

a) 60% dealers are satisfied with current inventory level.

b) From non satisfied dealers 75% belong to ND & WD and theydemand of more frequent supply.


48/70

47

Ref. Q. 6:

Are you satisfied with the current inventory level.

Satisfied

40%

Unsatisfied

60%

Satisfied

Unsatisfied

Among Non-Satisfied:

SD

16.7%

C&E

8.3%

WD

33.3%

ND

41.7%ND

WD

C&E

SD

Findings :

a. 60% of the dealers are unsatisfied with the current inventorylevel.

b. Out of this 60% of unsatisfied dealers, 41.7% are from NorthDelhi and 33.3% are from west Delhi


49/70

48

Ref. Q. 7:

According to you which of the following factor will result in increase

in sale of BPL products from your counter.

Factor

Territory

Increase

Marginthoughuniformpricing

TrainingYoursales

personon BPL

Products

Faster

(Order todelivery)process

Morefrequent

contact byCompany

sales Person

BetterAftersales

Service

BetterAdv. &

Publicity

SD 3 -- -- -- 2 4

ND 2 -- -- -- -- 5

C & E 2 -- -- -- 3 4

WD -- -- -- 2 -- 3

Total 7 -- -- 2 5 16

%age 23.3% -- -- 6.7% 16.7% 53.3%

Findings :

Mostly dealers (53.3%) voted for advertising & publicity as bestfactors for increase in sales of BPL products.

53.3%

23.3%

16.7%

6.7%

Adv. & PublicityIncrease margin through uniform pricingBetter after sales serviceMore frequent contact by sales persons


50/70

49

Ref. Q. 8:

BPL reward system for dealers is good enough to motivate them

Agree

87%

Disagree

13%

Agree

Disagree

Findings :

Those 13% who are not satisfied with reward of BPL, most ofthem demanding for foreign trips related to any event like cricket

match, tennis match, etc.


51/70

50

CONSUMER SURVEY IN DELHI

Ref. Q. 1:

According to you which is the top two brands in following consumer

durables.

CTV W/M Refs.

Sony 68 Videocon 59 Videocon 31

BPL 62 Voltas 8 BPL 22

Videocon 18 Godrej - Voltas 5

Akai - Kelvinator - Godrej 42

LG - Whirlpool 48 Whirlpool 10

Sumsung 12 BPL 45 Kelvinator 50

FINDINGS:

Mind Share (i.e., name the first company that comes to mind)

IN CTV, Sony and BPL are two top of the mind brands. BPL mind share in W/M comes 3rd In Refs. BPL acquired very less mind share due to non-existence

in direct cool segment (Rs. 9000-14000).

Heart Share (i.e., Name of the company from which you would

prefer to buy product).


52/70

51

IN CTV 39% responded for BPL In W/M 28% responded for BPL Refs 14% responded for BPL.Ref. Q 1.

According to you which is the top brand in following consumer


53/70

52

durables.

68

62

1812

0

10

20

30

40

50

60

70

No.ofResponses

Sony BPL Videocon Samsung

Brands

CTV's

59

4845

8

0

10

20

30

40

50

60

No.ofResponses

Videocon Whirlpool BPL Voltas

Brands

W/M


54/70

53

50

42

31

22

10

5

0

5

10

15

20

25

3035

40

45

50

No.oftheResponses

Kalvinator Godrej Videocon BPL Whirlpool Voltas

Brands

Refs.


55/70

54

Ref. Q. 2

Which of the following stimulus motivate you to purchase consumer

durable products.

Category Discount Exchange Offer Advertisement

Response 29 8 43

%age 36.2% 10% 53.8%

FINDINGS

Very few people (10%) are stimulated by exchange offers, sincethey have purchased CTV, W/M or Refs few years ago or they are

the first time purchaser of these products.

More emphasis should be given to attract prospects onadvertisements and discount.

Exchange Offer

10%

Adv.

54%

Discount

36%


56/70

55

Ref. Q. 3

Previous purchase decision of BPL products was influenced by

Category Dealers

Advice

Past

Experience

Neighbor's

Advice

Wife

pursuance

Children's

Pursuance

Warranty

Response 18 6 20 8 3 25

%age 23 8 25 10 4 30

FINDINGS

Only 23% consumers confirmed that they were motivated bydealers.

Now, if dealers advice and past experience are kept apart, rest77% consumers can be directly persuaded by BPL through

increased advertisement expenditure and warranty period.

Wife Per.

10%

Chldren Per.

4%

Neighbour Advice

25%

Past Exp.8%

Warranty

30%

Dealer 's Advice

23%


57/70

56

Ref. Q.4

Satisfaction level of consumer

Fully

satisfied

Partially

satisfied

Unsatisfied Strongly

unsatisfied

After salesservice (%)

7 (8.8%) 23 (28.8%) 49 (61.2%) 1 (1.2%)

Quality 58 (72.5%) 22 (27.5%) - -

Life ofproducts (%)

59 (73.8%) 12 (15%) 9 (11.2%) -

Value formoney (%)

35 (43.8%) 39 (48.8%) 6 (7.4%) -

Features (%) 73 (91.2%) 7 (8.8%) - -

FINDING

Mostly, 62.4%, consumers are unsatisfied with BPLs after salesservices

100% consumers are satisfied with quality of BPLs products(fully and partially).

88.8% are satisfied with life of BPLs products. 92.6% consider it as value for money brand. 100% consumer are satisfied with BPLs products features (fully

and partially).

Ref. Q. 5

Problems Faced with BPL products.

FINDINGS

Around 60% of consumers are unsatisfied with BPLs after salesservices.


58/70

57

FINDINGS

I. PRODUCT

CTV

BPL the market leader in CTV with 19.2% Market Share inDec'99 but erosion in market share from 22% Dec'98.

In screen size BPL enjoys No. 1 in 20", 21", 25" & 29" but slippedin No. 2 in 14".

BPL is major exporter of CTV after Sony (T.V. Veopar Journal). BPL mainly exports 14" & 17" CTV but absolute non-existence in

20", 21", 25" & 29".

Refs.

Leader in Frost-Free Market Share. Negligible Share in Direct Cool Market Share. Non-existence in 165lt category that constitutes 77.5% Market

Share.

W/M

Third Largest player in W/M market share with nearly 80% of itssales in fastest growing SA segment, but FA segment needs to

update its products.

II. PRICE


59/70

58

BPL adopted and currently working on skimming pricing strategy in

CTV's But it is working on competitive pricing in Refs. & W/M.

Most of the middle class segments considered it-"A brand suitable

for upper class segment".

III. PLACE

Commands leading position in urban sector but no serious efforts

are made to cash upon untapped huge potential demand in Rural

Sector, specially demand for Small Size CTV and smaller capacity

refrigerators, (165-200 L.).

IV. PROMOTION

BPL Advertisement expenditure and brand association largely

executed on CTVs as compared to Refs and W/M.

Dealer's Survey

Most of BPLs Authorized Dealers keep other competitive brands(L.G. Philips, Aiwa etc.) which hamper BPL sales.

South Delhi and Central and East Delhi performing well ascompare to North and West Delhi.

60% authorized dealers are not satisfied with currentinventory level Mostly from North West Delhi.

If Dealers margin is increased Sales volume will increased to10% or more.


60/70

59

Dealers are more susceptive to foreign trip as reward forperformance credit or commission.

V. POSITIONING

Mind Share as well as heart Share of BPL, CTV is very high as

compare to Refs and W/M.

Large Chunk of people stimulated to purchase BPL product by Adv.

And discount schemes.

Most demanded feature

CTV

a. When switch over from one channel to another sound should besame.

b. Coloured plastic cabinet of CTV.c. 100 or more programs.d. Child lock.e. Hi-fi surround system.Refs.

a. Reduced weight Refs.b. Ice-trays should not stick to refrigerator floor.W/M


61/70

60

a. Less electricity consumptionb. Increased warranty period.c. More wash programs in SA.


62/70

61

CONCLUSION

POTENTIAL MARKETCTV: Small Size CTV (14") particularly in rural market.

Ref. : Small size refrigerator (165 to 200lt) both in urban and rural

market.

W/M: Capitalize on untapped potential urban market for both semi

automatic and fully automatic washing machines. Also target rural

market.

HOW TO INCREASE SALES (FOUND OUT BY DEALERSSURVEY)

CTV : Emphasize on 20" & 21" (TV since they are the most selling

sizes.

Ref. : Emphasize on 165 to 200lt refrigerator since they are the

most selling sizes.

W/M: Emphasize on semiautomatic machines especially south

Delhi and North Delhi regions.

HOW TO INCREASE SALES (FOUND OUT BY CONSUMERSSURVEY).

In order to increase sales of CTV, Refs, and W/M emphasis should

be given on heavy advertisement expenditure and discount offer.

Also dependable warranty should be given to the consumer forpurchased product.


63/70

62

After sales service should be given more emphasis and improved.

CAUSES FOR DECLINING PERFORMANCE OF BPL IN :14" CTV

Intensive price war in 14" CTV market segment Particularly

launched by Aiwa which is offering 10 to 15% lower prices to the

consumer. Also BPL is emphasizing on exports of 14" CTV and

overlooking the national market.

Direct cool Refs.

BPL has almost a non existent presence in the direct cool

refrigerator segment since they had entered this market recently

(1998).

Fully automatic W/M

Fully automatic washing machine segment of BPL's washing

machines needs to be upgraded, technologically in order to compete

in the cut throat market with competitors.

FEEDBACK ON PRODUCT PERFORMANCE FROMCONSUMERS:

Most consumers are satisfied with quality of BPL's products, life of

BPLs products and BPL's products features. They also consider it a

value for money brand. Most consumers are unsatisfied with after

sales service though.

RELATIVE QUALITY PERCEPTION OF BPL BRAND IN:


64/70

63

CTV : In CTV's quality perception of BPL's product is quite good

with consumers.

Refs. In refs. Quality perception of BPLs product in the frost free

segment is very good, but in Direct cool segment there is no

question of quality perception since there is non existence of BPL in

that particular segment.

W/M : In W/M quality perception of BPLs product is not so good

with consumers and needs to be worked on.

DECISION - MAKING CRITERIADecision making criteria of consumers is heavily dependent upon

warranty neighbors advice and dealer's advice followed by past

experience, wife and children pursuance.


65/70

64

BIBLIOGRAPHY

Television Veopar Journal'99

Business Today'99

Outlook'99

A & M'99

Business World'99

Capital Market'99

Economics Times'99

BPL Monthly Magazines

BPL Annual Reports and Journals.


66/70

65

APPENDIX

DEALER QUESTIONNAIRE

Q1. How many units did you sell in Dec'99? (Give in no.)

CTV Washing Machine Refrigerator

Q2. What was the breakup (no. of units sold in each model)

CTV WM Refrigerator

14" model Semi Automatic 185 lt.

20" model Full Automatic 200 lt.

21" model 250lt.

25" model 310lt.

29" model 350 lt.

485 lt.

550 lt.

Q3. Which other brands do you keep in you showroom (please tick)

LG Videocon Videocon

Voltas Whirlpool Daewoo

Samsung Sony


67/70

66

Q4. What do you think about the margin given by the company?

1. Very Good 2. Average 3. Low

Q5. Do you think company should force all its dealers to sell itsproduct at fixed price?

Y or N Q6. Are your satisfied with the current inventory level?

Y or N Q7. According to you which of the following factor will result in

increase in sale of BPL product from you counter?

(Give 1-for Best Factor, 2-for average factor, 3-for poor factor.)

-Increase Margin through uniform pricing

-Training your sales person on BPL product features -Faster (order to-delivery) Process -More frequent contact by company sales personal -Better after sales service -Better advertising publicity `


68/70

67

Q8. Is BPL's reward system for dealers good enough to motivateyou?

Agree or Disagree

Signature of Interviewee Signature of Interviewer

Name : _______________________________________

Address : _______________________________________

_______________________________________

_______________________________________


69/70

68

CUSTOMER QUESTIONNAIRE

PERSONAL INFORMATION

Name

Address

Tel. No.

Q1. According to your which are the top two brand in followingconsumer durables.

CTV Washing Machine Refrigerator

Sony_________ Videocon_________ Videocon ________

BPL _________ Voltas_________ BPL ________

Videocon______ Godrej_________ Voltas ________

Akai ___________ Kelvinator_________ Godrej ________

L.G. __________ Whirlpool_________ Whirlpool ________

Samsung________ BPL_________ Kelvinator ________

Q2. Which of the following stimulus motivate you to purchaseconsumer durable products? (pl. Tick any one)

- Discount Offer

- Exchange Offer

- Advertising & Publicity


70/70

Q3. Your previous purchase Decision of BPL Products wasinfluenced by:

- Dealer Advice - Past Experience

- Neighbor Advice - Wife Pursuance

- Warranty - Children Pursuance

Q4. What is your satisfaction level (on give parameters) for BPLProduct Currently used by you? (pl. Tick under appropriatecolumn)?

Fullysatisfied

Partiallysatisfied

Unsatisfied

Stonglyunsatisfied

After sales service

Quality

Life of product

Value for money

Features

Q5. What are the problems (if any) faced in the current BPL product

owned by you(if any):

____________________________________________________________

____________________________________________________________

Signature of Interviewee Signature of Interviewer

Documents

Analysis of Three Successful Consumer Goods of