INTRODUCTION

CUSTOMER PERCEPTION

Perception is defined as the process by which an individual selects, organizes, and interprets

stimuli into a meaningful and coherent picture of the world. It can be described as “how we see

the world around us “.

According to Philip Kotler “perception is the process by which an individual selects,

organizes and interprets information inputs to create a meaningful picture of the world.”

The wealth of products and services produced in company make our economy strong.

Almost all the products that are available to customers have number of alternative suppliers,

i.e. substitute products are available to customers who make a decision to buy products.

Therefore a seller, most of his time seeks customers and tries to please them.

More or less, after the Second World War the sellers market has disappeared and

buyers market come up. It means the manufacture’s action has switched over from the

products to the customer and specially concentrated on the customer satisfaction.

The manufacture’s possesses not control over the customer. A modern marketer first

tries to understand the customer’s and their response. Then he studies the basic characteristics

of their perceptions. It can be said that customer is the center around which the whole

marketing system revolves. The selection or choice of products or services determines the fate

of the products.

As such, the company must know the customer more and in order manufacture the

products, which give the satisfaction in the way the customer’s need the marketing program.

Neglecting the customer perception one will naturally invite failure.

A careful study of customer’s perception will facilitate the marketer in determining the

size, style, coverage, brand etc.

To understand why customer perception is the most potent factor in sales marketing

(provided distribution and another masters are attend to adequately it ), is necessary to

recognize, first the customer friends are commonly in the same social, income, vacation interest

and age group. A managing director who is instrumental is having a computer installed in office,

as friends, other managing directors, some who may be interested in his opinion of the

computer as on office aid.

ELEMENTS OF PERCEPTION:-

SENSATION: immediate and direct response of the sensory organs to the stimuli

ABSOLUTE THRESHOLD: the lowest level at which an individual can experience a

sensation is called the absolute threshold.

DIFFERENTIAL THRESHOLD: The minimal difference that can be detected between two

similar stimuli is called differential threshold.

SUBLIMINAL PERCEPTION: stimuli that are too weak or too brief to be consciously seen

or heard may nevertheless be strong enough to be perceived by one or more receptor

cells. This process called subliminal perception

DYNAMICS OF PERCEPTION:-

PERCEPTUAL SELECTION : consumers subconsciously exercise a great deal of selectivity as to

which aspects environment (which stimuli)they perceive .An individual may look at some things

and ignore others and turn away from still others .In actually people receive (perceive) only to a

small fraction of stimuli to which they are exposed .

Various factors of perceptual perception are:

Nature of stimuli, Expectations ,motives, selective perception, selective exposure, selective

attention, perceptual defense, perceptual blocking.

PERCEPTUAL ORGANIZATION: people do not experience the numerous stimuli they select from

the environment as separate and discrete sensations they tend to organize them in to groups

and perceived them as unified wholes .Thus the perceived characteristics of even the simplest

stimulus are viewed as a function of the whole to which the stimulus appears to belong .This

method of perceptual organization simplifies life considerably for the individual .

Various factors of the perceptual organization are :

Figure and ground, Grouping, closure.

PERCEPTUAL INTERPRETATION: The preceding discussion has emphasized that perception is

personal phenomenon people exercise selectivity as to which stimuli they perceive, and they

organize these stimuli on the basis of certain psychological principles . The interpretation of

stimuli is also uniquely individual, because it is based on what individuals expect to see in light

of their previous experiences on the number of plausible explanation they can envision and on

their motives and interests at the time of perception

Various factors of the perceptual interpretation:

Perceptual distortion, physical appearance, stereotypes, first impressions, jumping to

conclusions, halo effect.

NEED OF THE STUDY

India is huge country so it is not possible to understand consumer awareness. It includes

How Consumers are aware of the product

To know how their attitude & behaviors towards the company.

To know how are they important to the company to change the buy

To know, which type of products they wants from the firm.

To know about product quality, prices, packages – compare with competitors, strategies & and

also know about SWOT at product (company).

OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE:

The main objective to analyze the opinion of consumers perception about usage of induction

cooker.

SECONDARY OBJECTIVE:

1. To study the brand awareness and brand recognition rate.

2. To make a competitive analysis on various brands of induction cooker.

3. To understand the consumer’s satisfaction levels regarding the features and services

offered.

4. To know the opinion of the consumer’s regarding the price and quality.

5. To find out the complaints / suggestion from the consumers.

6. To know the customers readiness towards innovative products

SCOPE OF THE STUDY

o The study was restricted to only twin cities.

o The scope of the study is to find out the opinion of the consumers regarding the

quality and price.

o The study is limited to the capabilities of the respondents in appropriately answering the

questions.

o The study is conducted on 30 customers selected by sampling methods in each brand.

o The study is of studying the customers’ perception towards the induction cooker.

RESEARCH METHODOLOGY

Primary data is collected from the consumers with the help of well formatted

questionnaire.

Secondary data is collected from the company manual records, magazines and

websites.

Limitations:

The customers may not reveal their intentions freely and fairly i.e., they may be biased

The respondents are impatient to answer the questionnaire.

The study is limited to a particular region, so the result may not be accurate and may

not coincide with global scenario.

Findings are confined to specified period

The study is limited to HYD and SECUNDERABAD areas.

The study is conducted for 45days.

Research Methodology:

Research design: The study is undertaken to assess the customer perception and their

responses towards the efficient brands of induction cooker in Hyderabad.

Data collection: The information is collected through questionnaires and personal interviews.

Customers are selected randomly and survey is conducted.

A Direct structured questionnaire has been asked to all the respondents in the sample followed

by direct personal interviews.

Sources of data:

The classification of data is very important procedure in this concept. The collected data can be

classified into two types.

1. Primary data

2. Secondary data

Primary Data

The primary data is very important source for to make suggestions to the title obtained.

This data can be collected in various methods like survey, interviewing, feedback, i.e. Group

Discussion etc., for collection of primary data the survey method is used, which involved

predetermined questions. The structured questionnaire contained a form list of question

framed so as to get the facts. But it involves high risk and huge expensive method to get the

facts.

Secondary Data

Collection of secondary data is very easy compared with primary data. But this data is

also very important for the growth of an organization, to predict the future and will help to

make the future plan regarding sales and improve the measures of sales.

This data can be collected from the magazines. Annual reports of the organization and other

published data.

Sample selection

The information is planned to be collected by sample method, the sample method followed is

random sampling method. The probability random sampling method is stratified random

sampling.

Population

The survey was done in Hyderabad only according to my convenience. It is not giving the

complete picture of Andhra Pradesh (or) India.

Sample frame/unit: Corporates, House wives, Govt. employees etc, who bought induction

cooker at different shopping malls.

Sample size:

The sample size consists of 30 consumers for each brand.

The survey was conducted in the form of an interview among randomly chosen sample

of 30 consumers of Prestige, Bajaj and TCL.

Tools used for the study

Research procedure:

The questionnaire designed for the study in the structured & disguised in nature. It consists of

multiple choice & short questions.

Analytical Method: simple percentage method is used for the analysis purpose.

LITERATURE REVIEW

A STUDY TO INDICATE THE IMPORTANCE OF CONSUMER BASED-BRAND EQUITY ON

CONSUMER PERCEPTION OF BRAND

University essay from Blekinge Tekniska Högskola/Sektionen för Management (MAM)

Author: Ukpebor Ipogah; [2008]

Strong brand equity has become a very important factor that influences consumer’s

perceptions of a brand. Success in brand management arises from understanding and managing

brand equity correctly to produce strong attributes that will influence consumers when making

their choices. This thesis focuses on the importance of these dimensions (brand awareness,

brand loyalty, brand image and perceived quality) of customer-based brand equity on

consumer’s perceptions of a brand. This is based on the assumption that all these dimensions of

customer based-brand equity will have influence on consumer’s perceptions of brand.

However, this thesis aims to find out which among these three dimensions (brand image, brand

loyalty and perceived quality) appear to have the least brand equity in both restaurants and to

find out if customer based-brand equity differ between the two restaurants with respect to

each attribute of brand awareness, brand image, perceived quality and brand loyalty. Brand

awareness was treated separately from other dimensions because of the difference in scale. A

structured questionnaire was constructed to provide answers to our research question. In this

study, one hundred questionnaires were distributed, but only sixty four useable questionnaires

were realized. The study surveyed four dimensions of consumer’s based-brand equity namely

brand awareness, brand image, perceived quality and brand loyalty. Among the three

dimensions, brand loyalty appears to have the least brand equity rating by consumers than the

other dimensions. Although, the four dimension appear to have influence on consumer

perceptions of brand.

Customer perceived value over time: A case study at Ericsson Soft lab

Abstract:

Author: Daniel Falldin; Daniel Pettersson (2002)

Introduction: During the last few years power has been passed from producer to consumer.

Then, for any given firm, consumers play an increasing important role. Firms sell not only within

limits set by the price of competing goods, but also become more sophisticated and each

individual customer’s value perception is important to recognize. In short, to say competitive

firms must put their main focus on customer’s needs. When it comes to services, producer and

user must cooperate. Joint venture creation process becomes a central part of the relationship

between producer and user. The service production process is consulting-related services occur

during a relatively long period of time with various interchanges before the service ultimately is

produced.

MARGARET ASHWELL Science Director, British Nutrition Foundation, 15 Belgrave Square, London

SWIX 8PG

TOPIC: CONSUMER PERCEPTION OF FOOD RELATED ISSUES.

ABSTRACT

The perception of risk in food-related issues is strongly influenced by the outrage associated with the

severity of the hazard in question, and the perception of benefit is strongly influenced by the euphoria

associated with the gain. To understand the perception of risk and benefit, it is just as important to

understand the components of outrage and euphoria, as it is to be able to assess the hazard and gain

accurately

Authors: Erdener Kaynak a;Orsay Kucukemiroglu

Published Journal of Professional Services Marketing, Volume 9, Issue 2 September 1993 , pages 139 –

158.

TOPIC: CONSUMER PERCEPTION OF COMMERCIAL BANKS IN A INDUSTRIALIZED COUNTRY.

Abstract

In recent years, there has been an increased competition and introduction of advanced technology into

the banking sector all around the world. This situation has forced banks of all sizes to apply marketing

concepts and techniques. In particular, assessment and understanding of bank customers' needs and

wants have become very important marketing strategy tools. With this in mind, the purpose of empirical

study is to determine the importance o f selected patronage factors used by Hong Kong commercial

bank customers in choosing domestic versus foreign banks. Although Hong Kong bank customers use

domestic banks more often, they perceive the usefulness of a select number of services in a similar

manner for both domestic and foreign-banks available in Hong Kong

Neale, Larry (2007) Toward a better understanding of uncommon loyalty. PhD thesis, University of

Western Australia.

TOPIC: TOWARDS A BETTER UNDERSTANDING OF UNCOMMON LOYALTY .

Abstract

Some brands seem to garner uncommon levels of loyalty from their customers. These brands can

weather economic downturns, long-term competitive disadvantage and continual performance

failures to emerge with a core of dedicated, committed, and loyal consumers. Good examples of

this phenomenon come from sports. Some sports teams have fans who proudly proclaim their

loyalty as well as financially support their team through attendance, yet live their entire life

without witnessing their team win a championship. Why would they do this, when switching

brands is possible? This study used the sports industry to explore the minds and analyse the

behaviours of sports fans in order to learn more about their uncommon loyalty towards their

favourite team. A comprehensive review of loyalty and sports literature revealed researchers

were better defining and measuring the dimensions of loyalty, while sports marketers were able

to explain more of the variability in attendance.

CONSUMER PERCEPTION

THEORATICAL PERSPECTIVE

CONSUMER PERCEPTION:

Today many companies are moving beyond the marketing concept to the consumer concept,

where as companies practicing the marketing concept work at the level of customer segment’s.

A growing number to today’s companies now shaping separate offer, services and message to

individual customers. These customers collect information on customer’s part, transaction,

demographics, psychographics, media and distribution preferences.

The ability of company to deal with customers at a time as become practical as a result of

advances in factory customization computer, the internet and database marketing software. At

the practicing one to one marketing is not for every company. The required investment in

information collection, hardware and software may exceed the payment. It works the best for

the companies that normally collect a great deal individual customer information, carries a lot

of products that can be cross – sold carry products that need periodic replacement or

upgrading and sell products of high value.

The wealth of products and services produced in company make our economy strong. Almost

all the product that is available to customers has number of alternative suppliers, i.e. substitute

products are available to customers who make a decision to buy products. Therefore a seller,

most of his time seeks customers and tries to please them.

More or less, after the Second World War the sellers market has disappeared and buyers

market come up. It means the manufacture’s action has switched over from the products to the

customer and specially concentrated on the customer satisfaction.

The manufacture’s possesses not control over the customer. A modern marketer first tries to

understand the customer’s and their response. Then he studies the basic characteristics of their

perceptions.

As such, the company must know the customer more and in order manufacture the products,

which give the satisfaction in the way the customer’s need the marketing program. Neglecting

the customer perception one will naturally invite failure. A careful study of customer’s

perception will facilitate the marketer in determining the size, style, coverage, brand etc.

To understand why customer perception is the most potent factor in sales marketing (provided

distribution and another masters are attend to adequately it ), is necessary to recognize, first

the customer friends are commonly in the same social, income, vacation interest and age

group. A managing director who is instrumental is having a computer installed in office, as

friends, other managing directors, some who may be interested in his opinion of the computer

as on office aid.

CONSUMER NEEDS AND WANTS:

Needs are the basic forces that drive consumer to take action and engage in exchanges an

unsatisfied need is gap between a person’s actual and desired status on some physical or

psychological dimension. We all have basic physical needs critical to our survival such has

food, drink, shelter and sleep. We also have social and emotional needs critical to our

psychological well being such as security, belonging the love, esteem and self fulfillment

those needs that motivate the consumption behavior of individual then are few and basic.

Organization also must satisfied needs to assure their survival and their well being. shaped

by organization strategic objectives, these needs relate to the resource inputs, capital’s

equipment and services necessary to meet those objectives.

Wants reflects a person’s desires are preferences for specific ways of satisfying a basic

need. Thus a person wants a particular products, brands or services to satisfy a need.

1. A person is thirsty and wants coke.

2. A person has tired and wants vocation in Switzerland.

Different people may have different needs to satisfy the same need. Every one needs to

keep warm and cold winter nights, for instance. But some people want electric blanket

while prefer old fashion down comforts.

The distinction between needs and wants helps put into perspective the charge that

“Marketer creates needs” or that “marketer makes people wants things they don’t need”.

DYNAMICS OF PERCEPTION:

Perception is the result of two different kids of inputs that interest to form the personal picture

– the perception that each individual experiences. One type of input is physical stimuli from the

outside environment the other type of inputs is provided by individual themselves in the form

of certain predisposition’s (expectations, motives, and learning) based on previous experience.

Individuals are very selective as to which stimuli they “recognize”. They subconsciously organize

the stimuli they do recognize according to widely held psychological principles, and they

interpret such stimuli (they give meaning to them) subjectively in accordance with their needs,

expectations and experiences. There exists three aspect of perception to study how he

perceive the things like selection, organization, and interpretation of stimuli of two kinds of

measures..

1. Expectation developing a meaningful measure of customer satisfaction requires the

merging measures

2. Performance measures the expectation measure has to do with an understanding of the

criteria used by customers to evaluate the quality of the firm’s relationship with them.

Knowing the product /services attributes that constitutes the customer’s choice criteria as

well as the relative importance of each should facilities this task.

The performance measure, is concerned with how well the firm is meeting the customer’s

expectation on an individual attribute as well as an overall basis.

Thus if the choice criteria of a cruise line’s target market included such attributes as food,

exercise facilities and entertainment then a performance measure would he developed for

each.

1. EXPECTATION MEASURES:

In most ceases the individual attributes on which perception expectations are

multidimensional. Thus it is necessary to obtain a measure for each dimension and then

weight the result by their relative importance to get an overall measure.

Unless this is done it is impossible to understand the nature and scope of a consumer’s

expectancy rating and to take corrective action. This is certainly the case with the cruse line

attributes cited above food (selection/ choice / taste /size of portion), exercise facilities

(availability/hour open / type of equipment/ presence of instructor) and entertainment.

2.PERFORMENCE MEASURES:

These are measures of how well the company has met the customer’s expectation on a

given attribute of course overall the performance are meaningless unless they are

compared with the appropriate customer’s expectations measure. The result can be

negative, when performance is less than expected, satisfactory when it is at least as good as

expected and positive when performance is better than expected.

Performance measures come in a variety of forms. The two most common are absolute

measures and scaled measures as discussed earlier in connection with expectation

measures.

Some companies use a simple yes or no question such as “was our delivery is satisfactory?”

or “was our sales person courteous?” Even if a company has factual data about its

performance on a given variable it needs a customer’s rating since in

the final analysis this is the one that matters. Where the perceived perceived performance

rating less than the factual performance or is considered unreasonable the firm makes

every effort to change the customer’s perception of the situation.

CUSTOMER VALUE SATISFACTION:

Before studying the concept of CUSTOMER PERCEPTION there is another concept

CUSTOMER SATISFACTION that must be studied to have a clear idea.

According to Peter Drucker a company’s first task is “to create customers”. However customers

face a vast array of product and brand choices, prices and suppliers. How do they make their

choices?

We believe that customer’s estimate which offer will deliver the most value. Customer are

value maximizer’s within bound of search costs and limited knowledge, mobility and income.

They form an expectation of value, and act on it. Where or not the offer lives up to the value

expectation affects both satisfaction and repurchases probability.

ATTRACTING CUSTOMERS:

Today’s customers are becoming to please. They are smarter, more price conscious more

demanding, less forgiving and they are approached by many more competitors with equal

better offers. The challenge, “according to Jeffreu Gitomer is not to produce satisfied

customers, several competitors can do this .the challenge is to produce delighted and loyal

customers.

Companies seeking to expand their profiles and sales have to spend considerable time and

resources searching for new customers. To generate leads, The company develops ads and

places them in media that will reach new prospects, it sends direct mail and makes phone calls

to possible new prospects; its sales people participate in trade shows where they might find

new leads; and so on. All this activity produces a list of suspect. The next task is to identify

which suspects are really good prospects interviewing

Them, checking on their financial standing and so on. Then it is time to send out the sales

people.

The customer-centered firm seeks to create high customer satisfaction that is not main

goal if the company increase customer satisfaction by lowering its price as increasing its

services, the result may be lower profits.

The company might be able to increase its profitability by means other than increased

satisfaction (for example by improving manufacturing processes or investing more in R&D). Also

the company has many stakeholders, including employees, dealers, suppliers and stockholders.

Spending more to increase customer satisfaction might divert funds from increasing the

satisfaction of other “partners” ultimately the company must operate on the philosophy that it

is trying to deliver a high level of customer satisfaction subject to delivering acceptable levels of

satisfaction to the stake holders given its total resources.

Claes Fornell has developed the American Customer Satisfaction Index(ACSI) to measure

the perceived satisfaction consumer’s feel with different firms,industries,economic stores and

national economics. Some companies and brands with high ACSI scores in 2001 include H.J

HEINZ COMPANY (89) COLGATE-PALMOLINE (85) and DELL (78).

Companies need to be especially concerned today with their customer satisfaction level

because the internet provides a tool for consumers to spread bad word of mouth as well as

good word of mouth to the rest of the world.

TOTAL PERCEPTUAL SELECTION:

Customer subconsciously exercise a great deal of selectivity to which aspect of the

environment they perceive. The selection process depends on people receive or perceive only a

small fraction of the stimuli to which they are exposed. Which stimuli get selected depends on

two major factors in addition to the nature of the stimulus itself.

(1) Consumer previous experience as it effects their expectations (what they are

prepared or “set”) and (2) their motives at the time (their needs, desires interests, and so on.)

Each of these factors can serve to increase or decrease the probability that a stimulus will be

perceived.

Marketing stimuli include an enormous number of variables that affect the customer

perception, such as the nature product ,its physical attributes, the package design, the brand

name, the advertisements and commercials ( including copy claims,

Choice and sex of model, positioning of model, size of, typography the position of a print ad or

a commercial, and the editorial environment.

People usually see what they expect to see, and what they expect to is usually based on

familiarity, previous experience, or preconditioned set (expectation).

Ill a marketing context, people tend to perceive products and product attributes

according to their own expectations often receive more attention than those that conform to

expectations.

What consumers perceive their needs to be in relation to the product category. The marketer

can then segment the market on the basis of those needs and the product advertising so that

consumers in each segment will perceive the product as meeting their own special needs,

wants, and interests.

IMPORTANT CONCEPTS CONCERNING SELECTIVE PERCEPTION

The consumer’s selection of stimuli from the environmental is based on the interaction of

expectation and motives with the stimulus itself. These factor give rise to four impotent

concepts concerning perception.

1. selective exposure

2. selective attention

3. perceptual defense

4. perceptual blocking

in the selective exposure customers actively seek out messages that they find pleasant or

with which they are sympathetic, and they actively avoid painful or threatening ones. They

also selectively expose themselves purchase decision.

In the selective attention customer exercise a great deal of selectively In terms of the

attention they give to commercial stimuli. They have a heightened awareness of stimuli that

meet their needs or interests and minimal awareness of stimuli irrelevant to their needs.

Thus customer are likely to note ads for products that would satisfy their needs and

disregard those in which they have no interested and the form of message and type of

medium they prefer. Some people are more interested in price, some in appearance, and

some in social acceptability. Some people like complex, sophisticated message other like

simple graphics.

In the perceptual defense consumer subconsciously screen about stimuli that they find

psychologically threatening, even though exposure has already taken place.

Thus threatening or otherwise damaging stimuli are less likely to be consciously perceived

than are neutral stimuli at the same level of exposure. Further more individual sometimes

unconsciously distort information that is not consistent with their needs, values, and beliefs.

In the perceptual blocking customers protect themselves from being bombarded with

stimuli by simply “tuning out” – blocking such stimuli from conscious awareness, they do so

out self – protection, because of the visually overwhelming nature of the world in which we

lived. This perceptual blocking is comparable to the “zapping” of TV commercial with

remote controls.

CONSUMER PERCEPTION AND AWARENESS:

An analysis of consumer perception is the first and foremost requirement for the

successful formulation and implementation of marketing strategies. The study of consumer

perception involves the process of identifying

1) When consumer purchase

2) what they purchase

3) where they purchase

4) How much they purchase

5) Their buying habits and motives etc.

For marketers, it is most important to be sufficiently well versed in the fields of consume

perception so that they may take meaningful contribution to the development of marketing

strategies.

It is a fact that marketing firms use their knowledge of consumer behaviour to segment

markets, to design marketing strategies and to measure marketing performance. Development of

consumer perception studies is an outgrowth of the evaluation of marketing orientation. Other

factors that have contributed to the development of consumer perception studies include the fast

face of new product introduction, shorter product lifecycles, the high rate of new product

lifecycles, increased interest in consumer protection by private group and public policy design -

makers and the adoption of marketing practices by service and non-profit organizations. Of

these factor, the consumer’s protection and awareness has been main frontline task of the

government and its agencies and voluntary organizations to protect the present day consumers

from all malpractice of traders. Because of the government acts and the initiatives taken by the

voluntary organizations from time to time, it can be hypotheses that the present day consumers

are better educated, informed with a greater sense awareness and right consumers with their

behavior.

CONSUMER PERCEPTION :

The term consumer perception refers to the perception that consumer’s display in searching for,

using, evaluating and disposing of products and services that they expect will satisfy their needs.

The study of consumer perception is the study of how individuals make decisions to spend their

available resources on consumption related items, it includes the study of

• What they buy

• Why they buy it

• When they buy it

• Where they buy it

• How often they buy it and

• How often they use it.

Consumer perception research goes far beyond these facts of consumer perception and

considers the uses consumers make of the goods they buy and their subsequent evaluations. In

addition to studying consumer uses and post purchase evaluations of the products they buy,

consumer researchers also are interested in how individuals in how individuals dispose of their

once – new purchases.

PERSONAL AND ORGANIZATIONAL CONSUMERS

The term consumer is often used to describe two different kinds of consuming

entities: the personal consumer and the organizational consumer.

The personal consumer buys goods and services for his or her own use, for the use of

the household, or as a gift for a friend. In each of these contexts,

Individuals who are referred to as "end users" Or "ultimate consumers" bring the

goods for final use.

EX-Shaving cream, shampoo, a book, VCR etc.

The second category of consumer, the organizational consumer encompasses for-

profit and not-for-profit business, government agencies, and institutions, all of, which must

buy products, equipment and services in order to run their organizations. Manufacturing

and sell their own products; and institutions must buy the materials they need to maintain

themselves and their populations.

BUYERS AND USERS

The person who makes a product purchase is not always the user of the product in

question. Nor is the purchaser necessarily the person who makes the product decision.

Clearly, buyers are not always the users, of the products they buy, nor clearly, buyers are

not always the users, or the only users, of the

Products they buy, nor are they necessarily the persons who make the product selection

decisions.

Marketers must decide at whom to direct their promotional activities: the buyer or the

user. For some products they must identify the person what is most likely to influence the

decision. Some marketers believe that the buyer of the product is the best prospect: others

believe it is the user of the product, while still others play it safe by directing their promotional

efforts to both buyers and users.

Small kitchen appliances - table top cooking

Article Abstract:

A review of the UK market for table top cooking appliances reveals that the value of sales in

1996 was 126.5 million pounds sterling, which represents a 37% increase since 1992. The sector

looks set to grow further, with socio-demographic factors, styling factors and improvements in

product design contributing towards the growth. The value of toaster sales, which accounted

for 46% of 1996 sales, increased by 40% from 1992 to 58.6 million pounds sterling in 1996. The

value of deep fat fryer sales increased by 30% over the same period, and value sales of

sandwich toasters grew by 124%.

Publisher: Mintel International Group Ltd.

Publication Name: Market Intelligence

Subject: Economics

ISSN: 1366-6673

Year: 1997

Electric Toasters, Electric Deep-Fat Fryers, Industry Overview, Market share, Home appliances

industry, Appliance industry, Cooking equipment, Deep fat fryers, Toasters, Fryers, Deep fat

The International Takeoff of New Products: The Role of Economics, Culture, and Country InnovativenessGerard J. Tellis, Stefan Stremersch, Eden Yin

Marshall School of Business, The University of Southern California, P.O. Box 90089-1421, Los Angeles, California 90089-1421Erasmus University Rotterdam, P.O. Box 1738, Burg. Oudlaan 50, 3000 DR Rotterdam, The NetherlandsJudge Institute, Cambridge University, Trumpington Street, Cambridge CB2 1AG, UK

Sales takeoff is vitally important for the management of new products. Limited prior research on this phenomenon covers only the United States. This study addresses the following questions about takeoff in Europe:

1) Does takeoff occur as distinctly in other countries, as it does in the United States?

2) Do different categories and countries have consistently different times-to-takeoff?

3) What economic and cultural factors explain the intercountry differences?

4) Should managers use a sprinkler or waterfall strategy for the introduction of new products across countries?

We gathered data on 137 new products across 10 categories and 16 European countries.

We adapted the threshold rule for identifying takeoff (Golder and Tellis 1997) to this multinational context. We specify a parametric hazard model to answer the questions above. The major results are as follows:

1) Sales of most new products display a distinct takeoff in various European countries, at an average of six years after introduction.

2) The time-to-takeoff varies substantially across countries and categories. It is four times shorter for entertainment products than for kitchen and laundry appliances. It is almost half aslong in Scandinavian countries as in Mediterranean countries.

3) While culture partially explains intercountry differences in time-to-takeoff, economic factors are neither strong nor robust explanatory factors.

4) These results suggest distinct advantages to a waterfall strategy for introducing products in international markets.

Key Words: International New Product Growth; New Product Takeoff; New Product Growth; International Diffusion; Diffusion of InnovationsHistory: Received: October 15, 2001;

Title: WHIRLPOOL GREENKITCHEN: INNOVATION DEVELOPMENT AND MARKETING STRATEGY

Reference: 510-084-1Author(s): Guintcheva, G; Nikolaev, B

EDHEC - Business SchooSettings: France; Home appliances; Multinational; 2010Topics: Marketing; Green; Strategy; Innovation; Product launch;

New concept development; FrancePublication year: 2010Data source: Field research

Abstract:

In March 2009, Whirlpool introduced its GreenKitchen to integrate the company's long-standing dedication to environmental well-fare and consumers' demands for cost savings in the household. With an interactive 'eco-system' of the different appliances, GreenKitchen was estimated to provide up to 70% savings on the household electricity and water bills. The potential issues with Whirlpool's innovation in the unstable economic context were: (a) the necessity to purchase the whole equipment at once; (b) the lack of choice of individual appliances; and (c) consumers' decreasing trust in green claims and products. Thus, Whirlpool was facing a challenge. Management saw real competitive advantage in GreenKitchen, but in order to capitalize on it, the company had to: (a) convince consumers in the applied value of the product's benefit; (b) motivate the spread of GreenKitchen to other consumer groups; and (c) differentiate from green products and claims, especially in the kitchen appliances industry. Success was deemed a matter of marketing, in terms of proper context assessment, targeting, pricing, distribution and communication. The objective of the case is to develop understanding of several key concepts and approaches in innovation, hi-tech and trend marketing, including: green business; blue ocean strategies of competition; strategy canvases; and innovation diffusion.

INDUSTRY PROFILE

An induction cooker uses induction heating for cooking. Unlike other forms of cooking, heat is generated directly in the pot or pan (cooking vessel), as opposed to being generated in the stovetop by electrical coils or burning gas. To be used on an induction cooker, a cooking vessel must be made of a ferromagnetic metal.

In an induction cooker, a coil of copper wire is placed underneath the cooking pot. An alternating electric current flows through the coil, which produces an oscillating magnetic field. This field induces an electric current in the pot. Current flowing in the metal pot produces resistive heating which heats the food. While the current is large, it is produced by a low voltage.

An induction cooker is faster and more energy-efficient than a traditional electric hob. It allows instant control of cooking energy similar to gas burners. Because induction heats the cooking vessel itself, the possibility of burn injury is significantly less than with other methods; the surface of the cook top is only heated from contact with the vessel. There are no flames or red-hot electric heating elements as found in traditional cooking equipment. The induction effect does not heat the air around the vessel, resulting in further energy efficiencies; some air is blown through the cooktop to cool the electronics, but this air emerges only a little warmer than ambient temperature.

Induced current can heat any type of metal, but the magnetic properties of a steel vessel concentrate the current in a thin layer near the surface, which makes the heating effect stronger. Practical induction cookers are designed for ferromagnetic pots; users are advised to use only pots on which a magnet will stick. Non-ferrous metals have a skin depth that is too thick, lowering the resistance seen by the induced current and so making such metals unusable on an induction hob.

Since heat is being generated by an induced electric current, the unit can detect whether cookware is present (or whether its contents have boiled dry) by monitoring how much power is being absorbed. That allows such functions as keeping a pot at minimal boil or automatically turning an element off when cookware is removed from it.

Economic and environmental considerations

According to the U.S. Department of Energy, the efficiency of energy transfer for an induction hob is 84%, versus 71% for a smooth-top non-induction electrical unit, for an approximate 13% saving in energy for the same amount of heat transfer.

Energy efficiency is the ratio between energy delivered to the food and that consumed by the cooker. Efficiency can be considered from the "customer side" of the energy meter, or from an overall perspective including generating and transmission losses. Cooking with gas has an energy efficiency of about 40% at the customer's meter (energy purchased vs. energy deposited in food), plus distribution losses leading to an overall efficiency of around 38%. Induction cooking deposits about 84% of the purchased energy into food, but sources of electricity have varying efficiencies in converting fuel energy to electrical energy. If natural-gas fired electrical generation is the source of electric power, overall efficiency (and CO2) generation would be comparable to direct use of natural gas for heating. Other electric cookers have lower efficiency of converting purchased energy into usable heat in the food, and so would have a lower overall efficiency and higher environmental effect. The environmental impact of electricity from other sources (nuclear, wind, hydroelectric, solar etc.) varies (the impact of construction, maintenance etc. should be taken into account for all power sources for the most meaningful comparison). Assessing the life-cycle environmental impact of various cooking methods requires thoughtful analysis for specific cases.

History

A little history lesson on induction for those who want to know. Induction cooking technology was introduced in the "Kitchen of the Future" at the Chicago "Century of Progress" World's Fair in 1933. For the first time, fairgoers witnessed the miracle of "cool heating" using electrical power (along with projection television, LOL). For the next 40 years the technology was used primarily for annealing metal in industrial applications.

Then in the 1970's European companies took the lead in developing induction cooking systems to fill a demand for cleaner, more energy efficient cooking systems. In the US, NASA developed it for the space program. Consumer units followed in the US, but were plagued by low power, reliability and noise problems. The last consumer induction units produced by American manufacturers went off the market in 1999.

Though induction faded from the American consumer scene, it continued to be developed in Europe and Asia where energy conservation is tantamount. Some US manufacturers like

Cooktek and Luxine continued to develop commercial units for the food service industry here. In 2000, European manufacturers made a breakthrough (in conjunction with DuPont) in insulating materials design for integrating the electronics with the induction generator coils.

The snap together design of these fourth generation systems along with the reduced fabrication costs enabled the manufacturers to produce induction generators for far less than previously, with much more compact designs that were inherently more reliable. As a result the market in Europe really took off. Currently induction cooktops are de rigueur in new construction in many European countries and are only about 20–30% more expensive than radiant ceramic cooktops there. In Asia a similar phenomenon has occurred. Huge numbers of Asian households are switching to induction for their wok cooking due to the safer and cooler cooking environment it provides. All-metal technology (meaning that the pots don't have to be magnetic) has been introduced in Asia by Panasonic and is currently being developed by the European manufacturers.

Early production

First patents date from the early 1900s. Demonstration stoves were shown by the Frigidaire division of General Motors in the mid-1950s on a touring GM showcase in North America. The induction cooker was shown heating a pot of water with a newspaper placed between the stove and the pot, to demonstrate the convenience and safety. This unit, however, was never put into production. Modern implementation in the USA dates from the early 1970s, with work done at the Research & Development Center of Westinghouse Electric Corporation at Churchill Borough, near Pittsburgh, PA, USA.

That work was first put on public display at the 1971 National Association of Home Builders convention in Houston, Texas, as part of the Westinghouse Consumer Products Division display. The stand-alone single-burner range was named the Cool Top Induction Range. It used transistors developed for automotive electronic ignition systems to drive the 25 kHz current.

Westinghouse decided to make a few hundred production units to develop the market. Those were named Cool Top 2 (CT2) Induction ranges. The development work was done at the same R&D location, by a team led by Bill Moreland and Terry Malarkey. The ranges were $1,500. That price included a set of high quality cookware made of Quadraply, a stainless steel/carbon steel/aluminium/stainless steel laminate (outside to inside).

Production took place in 1973 through to 1975 and stopped, coincidentally, with the sale of Westinghouse Consumer Products Division to White Consolidated Industries Inc.

CT2 had four burners of sufficient power, about 1,600 watts. The range top was a PyroCeram ceramic sheet surrounded by a stainless-steel bezel upon which four magnetic sliders adjusted four corresponding potentiometers set below. That design, using no through-holes, made the range proof against spills. The electronic section was made in four identical modules. Provision was made for fan cooling of the electronics.

In each of the electronics modules, the 240V, 60 Hz domestic line power was converted to between 20V and 200V of continuously variable DC by a phase-controlled rectifier. That DC power was in turn converted to 27 kHz AC by two arrays of six paralleled Motorola automotive-ignition transistors in a half-bridge configuration driving a series-resonant LC oscillator, of which the inductor component was the induction-heating coil and its load, the cooking pan. That elegant circuit design, largely by Ray MacKenzie, successfully dealt with certain bothersome overload problems.

Control electronics included functions such as protection against over-heated cook-pans and overloads. Provision was made to reduce radiated electrical and magnetic fields. There was also magnetic pan detection.

CT2 was UL Listed and received Federal Communications Commission (FCC) approval, both firsts. Numerous patents were also issued. CT2 won several awards, including Industrial Research Magazine's IR-100 1972 best-product award and a citation from the United States Steel Association. Raymond Baxter demonstrated the CT2 on his BBC series, Tomorrow’s World. He showed how the CT2 could cook through a slab of ice.

Sears Kenmore sold a free-standing oven/stove with four induction-cooking surfaces in the mid-1980s (Model Number 103.9647910). The unit also featured a self-cleaning oven, solid-state kitchen timer and capacitive-touch control buttons (advanced for its time). The units were more expensive than standard cooktops.

Vendors

The market for induction stoves is dominated by German manufacturers, such as AEG, Bosch, Miele and Siemens. The Spanish company Fagor, Italian firm Smeg and Sweden'sElectrolux are also key players in the European market. Prices range from about GBP250 to 1,000 within the UK. In 2006, Stoves launched the UK's first domestic induction hob (cooktop) on a range cooker at a slightly lower cost than those imported.

The European induction cooking market for hotels, restaurants and other caterers is primarily satisfied by smaller specialist commercial induction catering equipment manufacturers such as Adventys of France, Control Induction of the UK and Scholl of Germany.

Taiwanese and Japanese electronics companies are the dominant players in induction cooking for East Asia. After aggressive promotions by utilities in HK like CLP Power HK Ltd, many local brands like UNIVERSAL, icMagIC, Zanussi, iLighting, German Pool also emerged. Their power and ratings are high, more than 2,800 watts. They are multiple zone and capable of performing better than their gas counterpart. The efficiency is as high as 90% and saves a lot of energy and environmentally friendly. Their use by local Chinese for wok cooking is becoming popular. Some of these companies have also started marketing in the West. However, the product range sold in Western markets is a subset of that in their domestic market; some Japanese electronics manufacturers only sell domestically.

Small stand-alone induction cookers are relatively inexpensive, priced from around $60.

Units may have two, three, four or five induction zones, but four (normally in a 30-inch-wide unit) is the most common in the US and Europe. Two coils are most common in Hong Kong and three is most common in Japan. Some have touch-sensitive controls. Some induction stoves have a memory setting, one per element, to control the time that heat is applied.

COMPANY PROFILE

TTK PRESTIGE:

About TTK Prestige:

Over the past five decades TTK Prestige Limited, has emerged as India’s largest kitchen appliances company catering to the needs of home makers in the country. Every Prestige brand product is built on the pillars of safety, innovation, durability and trust, making the brand the first choice in millions of homes.

We always begin by understanding the needs and requirements of our customer and then we design and deliver innovative products. TTK Prestige Limited is one of the world’s largest manufacturers of Pressure Cookers and it has been forefront in introducing several innovations like Gasket Release System (GRS), Gasket Offset Device (GOD) and Double Locking System, all firsts in India. Prestige has been responsible for changing the cooking habits of millions in India; it has demonstrated how one could cook meals in minutes, the healthy way.

TTK Prestige Limited has come a long way. Today, TTK Prestige Limited has the widest product portfolio covering all aspects of the Kitchen making it the only brand to offer TOTAL KITCHEN SOLUTIONS to the customer. The product range includes Pressure Cookers, Non-Stick Cookware, Rice Cookers, OTG’s, Kitchen Hoods (Chimneys), Hobs, LP Gas Stoves, Coffee Makers, Kettles, Sandwich Toasters and many other small electrical appliances. TTK Prestige Limited also offers Modular Kitchen solutions with the widest range of options in terms of design, choice of materials, accessories and hardware.

TTK Prestige Limited is also the first Kitchenware Company in India to receive the ISO 9001 Certification and the PED/CE Certification by TUV, Germany. Prestige has been awarded with Selected “Super Brand” validated by Consumers and also it is the most preferred brand in Kitchenware segment.

TTK Prestige Limited exports its products to USA, Europe, South Africa, Kenya, Australia, Singapore, Middle East, Sri Lanka and many other countries. Products manufactured by TTK Prestige Limited meets every relevant global standard such as CE, GS, UL etc.

Today, Prestige has matured from a traditional pressure cooker brand to complete kitchen solution provider and we are working to improve and change the lifestyle of every Indian household

GENERAL ECONOMIC SCENARIO While the financial year 2009-10 started with a few uncertainties, as the year progressed the overall industrial production improved. The Indian economy grew by 7.2% as compared to 6.7% in the previous year. However, exports continued to be depressed owing to recessionary global trends especially in Europe and Middle East. The current trend in the economy is positive as witnessed by improved rates of growth in industrial production and higher advance tax collections for the first quarter. The GDP is expected to grow at more than 7%. While the overall outlook for growth seems to be positive, the unabated inflationary trend in consumer price index is a matter of concern. Given the increase in oil prices, this trend can have some adverse impact on disposable income. As regards the industry in which The company operates the growth rates are encouraging and more players are attracted to this segment. PAST DECADE Before going into the current year financials, I would like to recall the path travelled by The company since the beginning of 21st century. The beginning of the century was one of turbulence. The company’s business was severely affected by the aftermath of September 11 incident as well as the State Policy on Excise and Sales Tax. During the first 3 years The company’s turnover dropped to Rs.113 Crores and The company incurred an operating loss of Rs.17 Crores. The debt burden soared to more than Rs.80 Crores. This was the situation in 2002-2003. Unfazed by the turbulent circumstances, The company engaged in an exercise of Total Transformation and decided to back the Prestige brand and extend the brand to various product categories across the kitchen. This strategy led The company to successfully expand its focus from just products to Total Kitchen Solutions. The company adopted a totally different approach to manufacturing, marketing, sourcing, distribution, logistics, working capital management, utilization of human resources and embraced Total Cost Management strategies. The company improved capital efficiencies dramatically and improved its free cash flows year after year. The company also unlocked cash from assets not required for business. All these steps resulted in The company reaching a Turnover of Rs.516 Crores at the end of the decade i.e. financial year 2009-10 and earn an operating EBIDTA of Rs.76 Crores; and move from a debt burden of more than Rs.80 Crores to a free cash balance of more than Rs.30 Crores after spending close to Rs.40 Crores on capital expenditure.

This 10 year journey marks the resilience of The company under most adverse circumstances and the determination to break all barriers and place the company entirely on a new platform. By making a foray into inner-lid pressure cookers, stoves, domestic kitchen electric appliances and modular kitchens and setting up an exclusive retail chain network ‘Prestige Smart Kitchens’ The company has been de-risked from dependence on a single product or select geographies. The company has established leadership position in its traditional categories of cookers and cookware and has consolidated its significant presence in Stoves and Domestic Electrical appliances categories. I take this opportunity to express my deep gratitude to every one of our stake holders and all my colleagues on the Board who stood by us through thick and thin during this ten year journey. INNOVATION One of the salient aspects of total transformation process was innovation and new product development. The company focused on offering well differentiated products in every product category to stay above competition. As mentioned in the Annual Report The company recently launched Apple shaped inner lid cookers, Microwave pressure cookers, an entirely new range of Induction cook tops and induction compatible pressure cookers and cookware.

FINANCIAL YEAR 2009-10 The Annual Report for the year has already been circulated. I will just touch upon the salient points of the Company’s performance in the financial year 2009-10.

1. Sales grew by over 24% from Rs. 416 Crores to Rs.517 Crores2. All time high absolute value growth – Rs.100 Crores3. The growth was primarily driven by volumes.4. The operating profit before extra-ordinary item increased by 146% i.e. from Rs.29 Crores to

Rs.71.43 Crores.5. Earnings per share rose by 117.4% i.e. from Rs.19.77 to Rs.42.986. Prestige Smart Kitchen network was consolidated and improved as per plans. The number

of outlets as on 31.3.2010 was 228 covering 19 States and 136 towns.7. The company continued its policy of introducing new models and new products in all its

product lines.8. The company has set up a new unit II at Uttarakhand for manufacture of stoves and

electrical appliances and commercial production commenced during March 2010.

BRAND SALIENCE You Company continues to enjoy the recognition of “Super brand’ in the Kitchen Appliances segment. The company received the ‘Retailer of the year’ award from Asia Retail Congress for the year in recognition of The Company’s successful establishment and operation of Prestige Smart Kitchen Retail Network across India. DIVIDEND Taking into account the profits made and the capital outlays required for future expansion, The Board of Directors have recommended an increase in the dividend from Rs.5.00 per share to Rs.10.00 per share. This dividend will account for a cash outflow of Rs.11.32 Crores by way of dividend and Rs.1.88 Crores by way of dividend distribution tax thus aggregating to Rs.13.2 Crores. FINANCIAL YEAR 2010-11 – Positive Beginning The company continues to pursue its strategies tailored to suit the changing economic and market conditions as well as consumer preferences. This is being reflected in the improvements in top- line of the company witnessed during the first three months of the current financial year 2010-11. Turnover of the company for the first quarter of 2010-11 is expected to close at Rs.145 Crores registering a growth of 45% over the corresponding quarter of previous year. FUTURE VISION AND STRATEGY I had already briefly taken you through the eventful journey The company underwent from the start of this century and its impact on the company’s business growth and financials by the end of 31st March 2010. While the story has been successful we are aware that we should avoid getting into a state of complacency and need to be driven by higher vision and goals. Now I would like to briefly touch upon the enhanced vision for The company for the years to come. As you are aware The company belongs to the TTK group which was founded by Mr. T T Krishnanachari in 1928 and later in 1940 came under the vision of my father Mr. TT Narasimhan. TTK Group specialized in bringing into India internationally branded consumer products of a wide range. TTK Group established a unique distribution system which is today emulated by various MNCs whose products TTK Group brought into India and distributed for almost 5 decades from 1930. The basic mission of TTK Group right from its inception was ‘Quality consumer products at affordable prices’ and the reputation was built on fair trade practices.

Following the footsteps of the founders, The Board now has decided to pursue an enhanced Vision namely ‘A Prestige in every Indian kitchen’. In realizing the above vision The company will continue to be guided by its Core Values

• Quality products at affordable prices• Trust, Transparency, Knowledge and “Prestige” in whatever we do• Fairness in dealings with every stakeholder• Respect for Environment

The company now has the requisite platform of product categories to embark on the journey to the above vision. However this new vision calls for greater efforts, newer strategies and further transformation at all levels besides striking trade and technical alliances and The Board is committed to take necessary steps in this regard. The company will continue to tap global markets as a tactical strategy for specific products. EXPANSION PLANS:The new Vision calls for establishing manufacturing and sourcing capacities of a different scale. To start with The company has initiated efforts to expand capacities at various locations starting with the facilities at Kinnathu Kidavu village, near Coimbatore. As mentioned in the Director’s Report the capital expenditure outlay for the year is estimated at Rs.50 Crores. FINANCIAL POSITION:The company is debt-free and has an opening free cash balance in excess of Rs.30 Crores. The Board expects that The company will be cash positive at the end of the financial year 2010-11 even after incurring the above capital expenditure.

1. PHILOSOPHY:In line with the tradition of the TTK Group, the Board of Directors of TTK Prestige Limited view their role as Trustees of the various stakeholders and the society at large and it is their endeavour to observe best governance practices.

2. MISSION:The basic mission of the Company is “Quality Consumer Products at affordable prices” and in the process delivering long-term value to all stakeholders in the Company.

3. VISION:The Company envisions being a dominant global player in the Pressure Cooker category and the leading Branded Player in the Domestic Kitchen and Kitchen Appliances segment in the Indian Market and thus occupying a place of pride in the Indian Kitchens.

This shall be achieved through Customer Centric Processes, People Development and Operational Excellence.

4. VALUES:

The Company shall work towards deliveing long-term shareholder value through fair business and organizational practices and the Company strongly believes that such value cannot be achieved by short changing the customer or other stakeholders or the society or willful non-compliance with the laws. Thus fairness in business and organisational dealings, trust, transparency, accountability and pursuing a policy of appropriate disclosures and communication form the core value system of the Company.

5. ALIGNMENT:

It is imperative that the entire organisation is aligned to the above Philosophy, Mission, Vision and Value statements so that conflicts are avoided and the purpose for which the Company is run is achieved.

6. CODE OF CONDUCT: -The following General Code of Conduct has formally been adopted by the Board of Directors and notified to all employees to achieve this end. This Code is also published in the website of the Company for information of public and all employees of the Company.

1. Applicability: This Code of Conduct applies to all directors, senior management, heads of department, functional heads including branch heads and commercial managers. The persons to whom this Code is extended will be required to acknowledge the same in writing for adherence. The persons covered by this Code are hereinafter referred to as Officers.

2. Changes: The Board is free to amend or alter this Code from time to time and such changes will be binding.

3. Terms in Appointment Letters/ Office manuals/circulars: The letters of appointment and Office manuals/circulars do contain certain codes/obligations/workplace disciplines binding on the persons concerned. This Code supplements such appointment terms/manuals/circulars and may contain certain additional requirements and these are required to be observed mandatorily.

4. General Code: This Code contains broader features and for any procedural detail or rules or clarifications the Corporate Affairs/Finance/HR departments can be contacted.

5. Trusteeship/Accountability: Officers are entrusted with certain powers and authorities whether express or implied as also with Company’s finances, properties, equipments, documents and records. Such powers should be exercised for bonafide purposes in the interest of the Company. The finances and assets should be applied for the purposes of the Company and the Officers are accountable for all such finances, assets, documents etc that are under their respective control or possession and appropriate records should be maintained and reports and information submitted as per schedule or as and when required.

6. Personal and Professional Integrity: Acting with a mindset of Trustee presumes high standards of personal and professional integrity in dealings with the Company and co-

employees as well outside stakeholders. Officers are required to maintain such standards. Officers shall be honest and transparent in reporting the performance of their teams as well as their own performance. Integrity also calls for the ability to take ownership and acknowledge failures openly. As trustees, Officers are also expected to challenge and take action on any impropriety of conduct and business dealings.Some examples of unacceptable standards of personal and professional integrity are given here. For instance, non-furnishing of information though available, or furnishing an information knowingly that it is not true or not validated or not sharing or furnishing data or information amongst co-Officers and employees due to hierarchical issues or personal issues amounts to a substandard level of professional integrity. To give another example, the abuse of Company resources for personal gains or non-permitted personal use will constitute lack of personal integrity.

7. Conflict of Interest: This arises when there is clash of interests of the Company and the personal interests of the Officer, which can lead to the Company’s interest being relegated to the second place or even sacrificed. This Code calls for avoidance of such situations, transparent disclosures when there is apparent or potential conflict of interest and meeting with arm’s length criteria if at all there are related party transactions. Some of such situations are described below:

1. Outside employment/contracts: Officers are full time employees and are expected to devote full attention to the business interests of the Company. Officers are prohibited from promoting or taking an active interest directly or through relatives in any business or profession outside the Company, which is in competition with the Company or which will strengthen or support a competitor or which will otherwise interfere with their performance or responsibilities to the Company. Officers must disclose to the Company any such interest, which may conflict with the business of the Company.

2. Dealings with Vendors/Suppliers: Officers are expected not to have any personal contracts or arrangements either directly or through their relatives with the vendors/suppliers/dealers/agents/consultants etc of the Company as the same can result in compromising Company’s interest while dealing with such parties on behalf of the Company. If there be any such contract or arrangement the same should be disclosed to the Company. This will also include accepting gifts and complements from such parties beyond the gift policy specified by the Company. The gift policy permits accepting diaries or customary standard corporate gifts distributed during festival times. Demanding or accepting inducements of any nature is totally prohibited. If any party offers any inducement the same shall be brought to the notice of the Company.

3. Related Party transactions: Officers are not expected to have any contract for purchase, sale, service or lease or agency with the Company. This applies to contracts through relatives or firms or entities in which the Officers or their relatives are interested. Any such contract should be disclosed to the Conduct Committee and cleared by the committee. However purchase of Company’s products at prices applicable to staff is outside the scope of this Code and does not require Conduct

Committee’s clearance. The provisions of the Companies Act, 1956 or any statutory amendments thereof will govern transactions of directors with the Company.

4. Directorships in other companies: Officers are prohibited to get appointed on Boards of other companies, which are in competition with the Company’s business. Executive directors and Officers who are not directors on the Board of the Company are required to seek the clearance of the Company before accepting appointment as Director in other companies.

5. Employment of Relatives: While the employment of relatives is discouraged, wherever required such employment is allowed on merits and on clearance by Conduct Committee. Employment of relatives in the same department is not encouraged as it can conflict with performance management systems. Employment of relatives of directors will be governed by the provisions of the Companies Act, 1956 or any statutory amendments thereof.

6. Other interests: There may be other situations not enumerated above which may have apparent or potential conflict of interest. Officers are expected to evaluate each such situation and if necessary discuss with the Corporate Affairs/Finance/HR departments of the Company and take necessary steps including disclosure or taking prior permission as the case may be.

7. For the purpose of this Code, the expression ‘Relative’ will mean and include spouse, parents, grand parents, children, brothers, sisters, aunts, uncles, nephews, nieces and in-laws.

8. General Behavior: i. Ethical and civilised conduct is required to be observed while working within the Company’s premises or Contractor’s premises or social events sponsored/organised/hosted/attended by the Company or while dealing with business clients, vendors, buyers and customers. Unethical or uncivilised conduct is understood as such behaviour, which is capable of bringing down the image or reputation of the Officer/Company. ii. The Company values honesty of intent and purpose in all the business transactions and the same shall be reflected by the Officers while transacting on behalf of the Company whether within the Company or with outsiders. This includes respecting all internal control systems, checks and balances, audit processes, quality systems, performance management systems, development initiatives as well as people (whether employees or outside professionals) who carry out such checks, balances, reviews, audits etc irrespective of their position in hierarchy and extending whole hearted adherence to such systems and processes. iii. The Company values a congenial work environment. All Officers are expected to work towards this end and shun incivility in word and deed and treat all employees with respect irrespective of their sex, caste, creed or hierarchy and ensure that there is no room for harassment on the basis of sex, caste, creed or hierarchy.

9. Compliance with Laws: The Company values compliance with all the laws, which are applicable to the Company and its business. Officers are expected to be familiar with the applicable laws in their respective area of work and ensure compliance with the same and in case of any doubt or clarification to get in touch with the Legal Department or the legal consultants usually engaged by the Company. Officers are required to certify to the Board of Directors compliance with applicable laws in their respective areas of operation and ensure maintenance of records for verification.

10. Trading in Company’s shares: The Company’s shares are listed and the Officers who are privy to sensitive information which is still not made public are not expected to trade by themselves or through relatives in the Company’s shares till such information becomes public. The Company has in place certain Regulations in this respect and the Officers are required to follow the same and obtain prior clearance from the designated Officer (Director-Corporate Affairs) of the Company before buying or selling the Company’s shares in the market.

11. Disclosures/Communication: The Company pursues a policy of appropriate timely disclosures and communication to its shareholders and compliance with the information and disclosure norms prescribed by SEBI. Officers are required to ensure that they furnish/observe all the internal information requirements and internal control processes keeping in mind that such information/compliance from them constitutes the basis for Company’s disclosures and financial reporting. No Officer shall communicate any financial or Company performance information or future plans to the media or other outsiders without having the same vetted by Corporate Affairs department.

12. Confidentiality: Officers are required to keep all the information relating to the Company’s business, processes, technology etc, confidential. Such information can be shared only with selective co-employees or contractors who need the same for discharge of their functions in relation to their engagement with the Company. Disclosure to any other party is prohibited except where the same is required to be disclosed under due process of law or disclosure requirements prescribed by regulatory bodies. This requirement will survive the expiry/termination of their service with the Company.

13. Political Contributions: The Company does not associate or identify itself with any particular political party or outfit. Only the Board of Directors at their discretion may occasionally authorise political contributions as permitted by Law and no individual Officer can make any commitments in this regard.

7. Leadership Role of Officers:The Company values the role of its Officers in achieving alignment of goals, fulfillment of the Company’s mission and realization of the Company’s vision. The Company’s Corporate Governance policy states that excellence in Corporate Governance Practices can be achieved only if the spirit of Corporate Governance is followed right from the top

management to the last level employee. Observance of this Code of Conduct in letter and spirit will automatically achieve this objective. This Code is primarily meant for the Officers to imbibe the same in their culture so that they become role models and leaders for the rest of the employees and enable the Company to achieve and maintain excellence in all its sphere of activities.

8. Breach of the Code of Conduct:The Company values self-regulation and expects that the Officers will be role models and help in implementation of this Code. Any breach will be dealt with appropriately by the Conduct Committee depending on the severity of the breach. Action may range from mere warning to termination of appointment and recovery of loss caused to the Company as well as pursuing other options available under law.

Various products of Prestige

Apple Cookers,

Prestige Microchef

Pressure Cookers

Pressure Handis

Inner Lid Cookers

Non-Stick Cookware

Mixer Grinders

Hand Blenders

Rice Cookers

Induction Cook-Tops

Pop-Up Toasters

Sandwich Toasters

Electric Kettles

Coffee Makers

Oven, Toaster & Grill

Irons

Juicers

Kitchen Hoods (Chimney)

Gas Stoves

Modular Kitchens

Gift Certificates

BAJAJ ELECTRICALS

About Bajaj

Bajaj Electricals Limited (BEL), a 72 year old trusted company with a turnover of Rs. 2252 crores, is a part of the US $ 7 billion (over Rs 30,000 crores) "Bajaj Group". Bajaj Electricals Limited has six strategic business units – Engineering and Projects, Appliances, Fans, Luminaires, Lighting and Morphy Richards.

Bajaj Electricals has 19 branch offices spread in different parts of the country besides being supported by a chain of about 1000 distributors, 4000 authorized dealers, over 4,00,000 retail outlets and over 282 Customer Care centers.

Bajaj Electricals has distribution arrangements with Trilux Lenze of Germany (for Luminaires), tie up with Delta Controls of Canada (for Building Management Systems) and Securiton of Switzerland (for security systems), Morphy Richards of UK and Nardi of Italy (for Appliances), Disney of USA & Midea of China (for Fans). The company has also invested in Starlite Lighting for manufacture of energy saving lamps (CFL)

VISION, PHILOSOPHY AND VALUES

We aim to bring greater happiness to our customers, through our products

and services, while continuously enhancing stakeholder value.

Trust builds Quality

Quality builds Satisfaction

Satisfaction builds Relationship

Relationship builds Trust

We believe in “Inspiring Trust”

Build Trust : We will conduct all our business dealings with fair and ethical business practices and strive to build trust in the minds of all our stakeholders.

Belief in Excellence : We believe in setting higher levels of Excellence in all our actions and will recognize and reward the excellence achieved by our team members.

Delighting Customers : We will delight our customers by providing them world-class products and services and thereby enhance their quality of life.

Ensuring Accountability : We will work in a transparent, performance oriented environment and define clear accountability for our employees, while empowering them to achieve their performance goals with speed and efficiency.

Encouraging Teamwork : We will ensure dignity and respect for the individual while encouraging Teamwork.

Personal Growth : Every employee will be enabled to learn at the work place with significant opportunities for Personal Growth and Contribution to the organization.

LONG TERM GOALS

Market Leadership

To provide quality, reliability and good value in the products we sell and services we offer. To be sensitive and responsive to changing customer needs right from product development stage to after-sales-service. To aim to become market leaders in whatever we take up for marketing – whether in restricted areas for certain products or on an All-India basis for others.

Price Competitiveness

To improve our competitiveness by constantly enhancing the performance of our manufacturing, development, marketing and administrative functions. We would like to improve our profits by higher market share rather than by higher margin.

Consumer Satisfaction

To develop the right relationship between the Company and all its customers, so that the customer’s needs are met simply and effectively. Services should not just be a slogan; it should be our ‘Dharma’. We have already established a consumer cell to take care of consumer complaints as also desired by the council for FAIR Business Practices.

Ethical Dealings

To conduct the company’s affairs with honesty and integrity. People at every level will be expected to adhere to high standards of business ethics.

Social Responsibility

To discharge our responsibility to people. We are committed to five groups of people and we cannot reduce the emphasis of obligations and responsibilities on any of them.

Suppliers

They are our backbone. We have to see that they earn reasonable profits from dealings with us. We should also assure them satisfactory growth so that they also prosper with the prosperity of the company.

Dealers

To motivate them by offering quality products at reasonable prices. We must create conditions for them in which they would like to establish long term relationship with us. We must make such policies that will improve the profits of our dealers.

People

To offer growth and encourage promotion from within by proper training and motivation. To create an atmosphere that will encourage best of talent talent to join our company. To see that the fruits of prosperity are shared by those who have contributed in the prosperity of the company.

Shareholders

To assure them proper growth and return for their trust in us by investing their money in our company.

Consumers

To ensure that our customers are kept satisfied through good quality products at reasonable price and proper after-sales-services.

Profit awareness

To earn reasonable profit is extremely essential for discharging our obligation to any of the above five groups of people. Awareness to profit has to be strengthened and percolated at all levels, since each person is expected to and must contribute to increasing the profitability of the Company.

Quality Consciousness

To perpetually strive to improve the quality where there is to be no compromise. People at all levels-whether they are employees or vendors, or dealers – should be made to consider “quality as a way of life”. The emphasis on quality is not to be restricted to our products and our services only, but to all spheres of our activities.

Technical Superiority

To develop our Company in technical orientation so that we sell our products on the basis of technical superiority.

Action Orientation

To be on our toes and always dynamic whether markets are good or bad. There should be no place for demoralization and frustration if the markets are bad or for complacency or lethargy when they are good. We should not be satisfied with our past achievement but strive for higher and better performance like a real “Karma yogi”.

Excellence Culture

To develop a culture where mediocrity is neither accepted nor tolerated. To create conditions where each person is striving to surpass his earlier best; where each person is motivated and assisted to give out his best.

Brief history of our Company

Our Company was incorporated as Radio Lamp Works Limited under the Indian Companies Act, 1913 as a public company limited by shares, pursuant to a certificate of incorporation dated July 14, 1938. Subsequently the name of our Company was changed to Bajaj Electricals Limited, pursuant to a fresh certificate of incorporation dated October 1, 1960.

In 1964, Matchwell Electricals (India) Limited, ("Matchwell"), a manufacturer of electric fans became a subsidiary of our Company and subsequently, with effect from July 1, 1984, the business and undertaking of Matchwell was amalgamated with our Company.

In the financial year 1993-1994, our Company entered into a joint venture with Black & Decker Corporation, United States, for the manufacture and marketing of power tools, household appliances, and related accessories, through a separate company named Black & Decker Bajaj Private Limited, ("Black & Decker Bajaj"). During the financial year 1999-2000 Black & Decker Bajaj became a 100% subsidiary of our Company upon our Company acquiring a further 50% of the shareholding thereof from Black & Decker Corporation, pursuant to which Black & Decker Bajaj was renamed as Bajaj Ventures Limited. However, the financial year 2002-2003, our Company divested 50% of its shareholding in Bajaj Ventures Limited and Bajaj Ventures Limited ceased to be a subsidiary of our Company.

In January 1998, our Company established a new manufacturing unit at Chakan near Pune and commenced operations of manufacturing of fans and die-cast components. The production of fans at our manufacturing activities of the Matchwell unit also was gradually shifted to our Chakan unit.

In September 1999, our Company established and commissioned a wind energy generation unit with an installed capacity of 2.8 mega watts at Village Vankusawade, Tal. Patan, District Satara, Maharashtra.

In the year 2000-2001 our Company set-up our manufacturing facilities including a fabrication unit and a galvanizing plant at Ranjangaon, near Pune for the manufacture of high masts, lattice towers, and related products, and the said manufacturing facilities commenced commercial production with effect from April 1, 2001.

In November 2002, our Company entered into a technical collaboration and brand licensing agreement with Morphy Richards, United Kingdom, for the sales and marketing of electrical appliances under the brand name of "Morphy Richards" in India.

In the financial year 2002-2003 our Company discontinued manufacturing die-cast components.

In the year 2005 our company entered into a Distribution agreement with Trilux Lenze of Germany for high end technical lighting.

In the year 2007, we acquired 32% of the share capital of Starlite Lighting Limited, a company engaged in the manufacture of Compact Fluorescent Lamps ("CFLs").

APPLIANCES

When it comes to small appliances, no other company in India offers as wide and modern a range as Bajaj Electricals does. Bajaj Appliances is the market leader in small appliances category offering a wide range of domestic appliances under the ‘brown goods’ category.

The range includes Microwave Ovens, Room Coolers, Water Heaters, Room Heaters, Oven-Toaster-Grillers, Toasters, Juicers & Mixer Grinders, Food Processors, Steam & Dry Irons and Water Purifiers. All of these have found favour in the Indian kitchens and homes for decades. The trust placed by the millions of consumers have fuelled the company into introducing the premium range of home appliances called “Bajaj Platini” - designed as a fitting accessory to new age India’s global aspirations.

Bajaj Appliances are moving to a more aspirational, futuristic brand. In the near future, this brand might be the only Indian small appliances brand to be available across internationally.

It’s no surprise that our consumers have voted us as the most trusted brand ensuring the Gold Award in the Reader’s Digest Trusted Brand 2009 Survey India.

List of products offered by BAJAJ

Mixer Grinders

Food Processor

JMGs and Juicers

Hand Blenders

Wet Grinders

Toasters

Oven Toaster Grillers

Microwave Ovens

Automatic Electric Cookers

Electric Kettles

Electric Tea Maker

Coffee Makers

Induction Cookers

Water Purifier

Cook Tops

Chimneys

Nardi Hobs

Pressure Cookers

Water Heaters

Irons - Dry and Steam

Room Coolers

Room Heaters

Home UPS and Inverters

TCL

Introduction :

TCL HOME APPLIANCES (NANHAI)CO.,LTD was founded on July 13th, 2004, professional in home appliances R&D, manufacture and sales. The company has talented team in professional fields, which has abundant experience of R&D, manufacture, domestic marketing, overseas marketing, cost study & control, quality management and so on. It was directly invested and equity controlled by TCL CORPORATION, which is one of the most important parts of the “ Longhu Plan” strategy. The company is located in the Nanhai Technology Industrial Park of Foshan, Guangdong province. The total industrial field about 350000 square meters, total investment over 300millions RMB.

The first stage project of industrial park was put into use in May,2006 with production capacity of 10million units; After completion of second stage project, the production capacity would be 20million units per year. At that time, the industry park will become one of the largest and most professional intelligent small home appliances production base.

The company products Line including: Rice cooker, Induction cooker , Water dispenser, Water purifying bottle, Electric fans, Heater, Smoking hood, Cooker disinfecting machine, Gas water heater, Gas cooker and so on. It has more than 400 types and the producing and R&D ability of Rice cooker, Water dispenser and Induction cooker have reached the leading level. Our R&D department consists of more than 100 designers and 100 industrial engineers. We have utilized the most advance R&D system from industry and structure design to tooling design, gaining over 100 patents. Our company has successively passed ISO9001:2000 quality management system approval and ISO14001:2004 environment management system approval, investing more than 10million in authentication and inspection center, which has all kinds of testing instrument, over 100 sets of equipments and more than 30 professional testing engineers. From the beginning, TCL spent much in setting up high class standard quality control platform, building up testing & certificate center, which is one of the largest scale testing labs in current domestic small home appliances industry.

The company will continue its enterprise spirit of “profession, honesty, teamwork, innovation" and stick to offering value for customers, providing opportunity for staff ,creating benefit for the shareholder, undertaking our responsibility to the society". We will persist in developing the best product, offering the best service and creating the best brand” We will strive for creating world-class small home appliances Co.,Ltd with international competition by insisting our policy “team-work, dispersed policy decision, marketing orientation and overall management” in order to realize Chairman Li Dong Shengs kindly wish “Come back to the fist and create the miracle again!”

TCL Small Home Appliances let quality and profession testify to all, let speed testify to the future!

The R&D Center

Company culture

Meaning of TCL

THE CREATIVE LIFEIt is the first and also the unique Chinese company which registers its company name and trademark in English.

The color of red represents: passion, vigor, competition, and honesty.

Company's Goal

Establish a world-class company with an international competitive edge

Company's Tenet

create value for customers · our company's value is based on customers'value · lead the market tendency by continuously create the needs of customers and innovation of value· Satisfy customers to the most with TCL's innovative technology, quality and service

create opportunities for employee · provide the platform for their strong suit · provide opportunities of training · provide opportunities of promotion

create benefit for shareholders · Based on maintaining the public figure, we do our best to create social benefits to respond our shareholders, according to their require and expectation to us.

undertake responsibility for society · We are willing to undertake the social obligation by taking the social moral responsibility as criterion. And we will do the best to deal with the public relations between company and society and contribute to social commonweal affairs, on the premise of creating profit for company and providing job opportunities. · take booming up the national economy and industry as our own task

Company's Inspirit

responsible · a spirit of dedication-take the job as a lifetime career

· a spirit of profession-continuously challenge oneself and difficulty to improve, consummate and be the best · a spirit of undertaking-willing to venture, look for new opportunities

honesty· Emphasizing the loyalty to the company and one’s duty, be responsible and honest, and attach importance to individual credit. · The spirit of honesty is the basis of both company and employee. It is the premise for company to create good communication environment and mutual trust as it is not only a moral concept, but also a criterion of law.· Emphasizing the promises between company and customers, company and employees, superior and subordinate; a promise is a promise.· Honesty is the core of the company’s ethic·Honesty is the core competition of the company.

Team · is a good profession ambit with cooperative spirit; a theory of mutual opened mind; a environment for non-obstacle communication. · be responsible to one’s own job and teamwork; pay attention to the cooperation with other departments.· establish a harmonious and healthy working environment and interpersonal relation

Innovation· constantly exceed the past and advance ourselves · actively explore the new working method and make continuous progress on the basis of the past successful experience · pay attention to basic work, search and discover new breakthrough in every specific and be good at learning, summarizing and abstracting

Company's expectation

· be the best brand in the small home appliance line worldwide · be one of the most respectable subordinate company of TCL group · be the employee of the world-class company

Company's Mission

· respond the shareholders and the society· let the employees, agents and suppliers become wealthy· increase the brand value of TCL

Management guideline

concentration stratagem· compete in large scale so that can enhance the negotiation ability of market access · produce in large scale to enhance the negotiation ability of purchasing · Establish the advantages of operating cost and brand competition

distribution stratagem ·authorize the agents to make district competition stratagem to improve the reacting speed to market in maximum; succeed by rapidness· Authorize the interior member to make his own decision within the right scope, so as to achieve the company’s goal most efficiently.

market oriented · establish the market oriented product programming and development system · establish the market oriented product price decision-making model · Design the market oriented organizing construct and operation procedure

collectivity management· establish the collectivity management system by dividing the company management goal into every unit, then each unit interior make the target more specific

management stratagem

develop the best product Create high quality product for customers by the innovation of technology provide the best service Provide perfect service before, during and after the sales by the manner of “immediate, profession and kindness”; take customers’ satisfaction as the weighing criterion create the best brand Make TCL the worldwide famous brand and fashion it into the figure of advanced technology, advanced vogue and unending progress.

Company honor

2007

·January 2007, the company gained the environment symbol certificate for induction cooker product ·January 2007, the TC series induction cooker won the innovation prize of the 2006 annual home appliance

2006

·Jan. 2006 the TCL brand small home appliance won the honor of the best popular and reliable product among the nationwide induction cooker product

·Feb. 2006 the company was assessed the Excellent Management Company of 2005 ·Feb. 2006 the company obtained the ISO14001:2004 Environment Management System Certificate·Mar. 2006 won the honor of “Advanced Science and Technology Unit of Nanhai of 2005”·May 2005 the company was cognized “Advanced Technology Company” authorized by Guangdong Science and Technology Office·May 2006 the company joined China Standard Association·Jul. 2006 the company was successfully put on record for the license of production of gas cooker and gas water heater ·Sep. 2006 the TCL brand induction cooker, water dispenser and rice cooker passed the national power-saving certificate·Dec. 2006 TCL brand value ranked 3rd in China of 2006

Meaning of TCL

THE CREATIVE LIFEIt is the first and also the unique Chinese company which registers its company name and trademark in English.The color of red represents: passion, vigor, competition, and honesty.

Company's Goal Establish a world-class company with an international competitive edge

Company's Tenet create value for customers · our company's value is based on customers'value · lead the market tendency by continuously create the needs of customers and innovation of value· Satisfy customers to the most with TCL's innovative technology, quality and service

create opportunities for employee · provide the platform for their strong suit · provide opportunities of training · provide opportunities of promotion

create benefit for shareholders · Based on maintaining the public figure, we do our best to create social benefits to respond our shareholders, according to their require and expectation to us.

undertake responsibility for society · We are willing to undertake the social obligation by taking the social moral responsibility as criterion. And we will do the best to deal with the public relations between company and society and contribute to social commonweal affairs, on the premise of creating profit for company and providing job opportunities. · take booming up the national economy and industry as our own task

Company's Inspirit responsible · a spirit of dedication-take the job as a lifetime career · a spirit of profession-continuously challenge oneself and difficulty to improve, consummate and be the best · a spirit of undertaking-willing to venture, look for new opportunities

Induction Cooker

Rice Cooker

Induction Cooker

Electric Pressure Cooker

Deep Fryer

Chocolate Fondue Fountain

Water Purifying Bottle

Electrc Fan

Coffee Meker

DATA ANALYSIS

1) How do you come to know about the product?

Prestige Bajaj TCLNo. of respondents

Percentage

No. of respondents

Percentage

No. of respondents

Percentage

Friends 6 20% 7 23.33% 5 16.66%Relatives

13 43.33% 14 46.66% 12 40%

Media 7 23.33% 7 23.33% 5 16.66%Others 4 13.33% 2 6.66% 8 26.66%Total 30 100% 30 100% 30 100%

Friends relatives media others05

101520253035404550

Prestige

Bajaj

TCL

From the above table, 43.33% of the respondents of prestige came to know about the product through their relatives, 46.66% of the respondents of bajaj came to know about the product through their relatives and 40% of the respondents of TCL came to know about the product through their relatives.

From this it is clear that most of the respondents came to know about the induction cooker through their relatives.

2) While buying induction cooker, what comes to The mind?

Prestige Bajaj TCLNo. of respondents

Percentage

No. of respondents

Percentage

No. of respondents

Percentage

Price 4 13.33% 5 16.66% 2 6.66%Health & safety

16 53.33% 14 46.66% 15 50%

Power consumption

10 33.33% 11 36.66% 13 43.33%

Total 30 100% 30 100% 30 100%

Price Health & safety Power consump-tion

0

10

20

30

40

50

60

Prestige

Bajaj

TCL

From the above table, 53.33% of the respondents of prestige buy the product with the main constraint as health and safety, similarly 46.66% of the respondents of bajaj and 50% of the respondents of TCL buy the product with main constraint as health and safety.

From this it is clear that most of the customers prefer health and safety while buying induction cooker.

3) How do you feel about the cost of the induction cooker?

Prestige Bajaj TCLNo. of respondents

Percentage No. of respondents

Percentage No. of respondents

Percentage

Costly 8 26.66% 9 30% 2 6.66%Moderate 12 40% 11 36.66% 13 43.33%Normal 10 33.33% 10 33.33% 15 50%Total 30 100% 30 100% 30 100%

Costly Moderate Normal05

101520253035404550

Prestige

Bajaj

TCL

From the above table, 40% of the respondents of Prestige and 36.66% of the respondents of Bajaj feel the price of the cooker as moderate and 50% of the respondents of TCL feel the price as normal.

4) What are the problems faced by you regarding The induction cooker?

Prestige Bajaj TCLNo. of respondents

Percentage

No. of respondents

Percentage

No. of respondents

Percentage

High power consumption

7 23.33% 8 26.66% 5 16.66%

Coil failure 5 16.66% 6 20% 11 36.66%Time consumption

8 26.66% 9 30% 9 30%

Others 10 33.33% 7 23.33% 5 16.66%

Total 30 100% 30 100% 30 100%

High power consumption

Coil failure Time consump-tion

others0

5

10

15

20

25

30

35

40

Prestige

Bajaj

TCL

From the above table, 26.66% of the respondents of Bajaj face the problem of time consumption, 33.33% of the respondents of Prestige face other problems other than the listed problems and 36.66% of the respondents of TCL face Coil failure as their main problem

5) How often do you use Induction cooker?

Prestige Bajaj TCLNo. of respondents

Percentage No. of respondents

Percentage No. of respondents

Percentage

Twice a day

18 56.66% 14 46.66% 12 40%

Once a day

9 30% 13 43.33% 14 46.66%

3 to 4 times a week

2 6.66% 3 10% 3 10%

Once a week

1 3.33% 0 0% 1 3.33%

Total 30 100% 30 100% 30 100%

Twice a day Once a day 3 to 4 times a week

once a week0

10

20

30

40

50

60

Prestige

Bajaj

TCL

From the above table, 56.66% of the respondents of Prestige use their induction cooker twice a day, 46.66% of the respondents of Bajaj use their induction cooker twice a day and 46.66% use their cooker once a day.

6) If there is any malfunction with The induction cooker, whom do you like to visit?

Prestige Bajaj TCLNo. of respondents

Percentage No. of respondents

Percentage No. of respondents

Percentage

Service center

25 83.33% 24 80% 18 60%

Local repair shop

5 16.66% 6 20% 12 40%

Total 30 100% 30 100% 30 100%

Service center Local repair shop

0102030405060708090

Prestige

Bajaj

TCL

From the above table, 83.33% of the respondents of Prestige, 80% of the respondents of Bajaj and 60% of the respondents of TCL prefer to visit service center when they observe any malfunction in induction cooker.

It means that most of the customers would like to visit service centers whenever they observe any malfunction in their induction cooker.

7) Overall, are you satisfied with the product?

Prestige Bajaj TCLNo. of respondents

percentage No. of respondents

percentage No. of respondents

Percentage

Very good 12 40% 7 23.33% 6 20%Good 14 46.66% 16 53.33% 7 23.33%Average 3 10% 5 16.66% 12 40%Bad 1 3.33% 2 6.66% 4 13.33%Very bad 0 0% 0 0% 1 3.33%Total 30 100% 30 100% 30 100%

Very good Good Average Bad0

10

20

30

40

50

60

Prestige

Bajaj

TCL

From the above table, 46.66% of the respondents of Prestige and 43.33% of the respondents of Bajaj are satisfied with their induction cooker and 40% of the respondents of TCL are little bit satisfied about their product.

8) How do you rate The preferences towards an induction cooker?

A) Prestige

Preferences Very imp. important neutral Not imp. Not at all imp.

Price 5 10 8 6 1Guarantee 12 14 4 0 0After sale service

20 8 2 0 0

Brand image 16 9 2 3 0

B) Bajaj

Preferences Very imp. important neutral Not imp. Not at all imp.

Price 9 12 6 3 0Guarantee 15 12 3 0 0After sale service

19 10 1 0 0

Brand image 12 15 2 1 0

C) TCL

Preferences Very imp. important neutral Not imp. Not at all imp.

Price 6 14 6 3 1Guarantee 14 13 2 1 0After sale service

15 12 2 1 0

Brand image 3 13 10 3 1

Weighted average mean:

Preferences Prestige Bajaj TCLPrice 0.405 0.9 0.73Guarantee 1.266 1.4 1.23After sale service 1.596 1.599 1.37Brand image 1.266 1.27 0.467

From the above table we observe that most of the respondents of 3 brands prefer after sale service to other preferences.

9) How do you rate different features of induction cooker?

A) Prestige

Features Very good Good Average Poor Very poorVoltage range

10 12 6 2 0

Auto ON/OFF 14 8 6 2 0Non-magnetic wall

12 14 3 1 0

B) Bajaj

Features Very good Good Average Poor Very poorVoltage range

11 11 4 2 2

Auto ON/OFF 12 14 3 1 0Non-magnetic wall

12 15 3 0 0

C) TCL

Features Very good Good Average Poor Very poorVoltage range

6 15 5 3 1

Auto ON/OFF 8 10 9 2 1Non-magnetic wall

10 11 5 3 1

Weighted average mean:

Features Prestige Bajaj TCLVoltage range 1 0.901 0.777Auto ON/OFF 1.139 1.233 0.777Non-magnetic wall 1.236 1.3 0.876

From the above table, we observe that most of the respondents of prestige, bajaj and TCL prefer Non-magnetic wall to

FINDINGS:

The major observations and findings:

1. It is found that the age groups of 30-35 years and 35-40 years are playing dominant part

in this study.

2. It is found that majority of the customers’ income range fall in between 20000 – 30000

who use induction cooker.

3. It is found that Prestige and Bajaj are having good recognition rate.

4. It is found that most of the customers came to know about the products through their

relatives. Positive word of mouth plays a major role here.

5. It is found that most of the customers buy induction cooker keeping in mind health and

safety.

6. Most of the customers feel Prestige and Baja induction cooker are priced moderately.

TCL induction cooker is normally priced.

7. Though majority of the models produced by Prestige, Bajaj and TCL are awareness in

market, still there are many brands in the market

8. It is found that majority of the respondents of TCL face the problem of coil failure which

is comparatively less in other 2 cases.

9. The majority of the respondents use their induction cooker twice a day, it means

customers use the product much frequently than early cookers.

10. It means that there is great opportunity for the companies to gain the market.

11. It is found most of the customers prefer service centers to local repair shops when they

observe any malfunction in their induction cooker.

12. It is found that majority of the customers are interested in buying a product that has

after sale service.

13. It is found that majority of the customers are showing much interest in the features like

non-magnetic walls and auto ON/OFF.

14. Some of the customers feel that discounts are to be provided during festive seasons.

15. Majority of the customers are ready to adopt new technology in their routine life

16. It is found that majority of the customers are interested to buy induction cooker in

exchange offers.

17. It is found that most of the customers are satisfied with the product.

SUGGESTION:

1. The following are the few suggestions from my point of view to Bajaj electrical regarding

consumer perception.

2. Company should focus on the innovative technology.

3. Company should focus on the middle class people, because most of the Indians are

middle class (salary range below 1, 80,000 p.a.)

4. Company should focus on the on-line marketing why because most of the people are

using internet.

5. Most of the customers came to know about the product through their relatives. So

advertisements have wider scope to gain market.

6. Most of the respondents gave importance to after sale service, so company should focus

more on after sale service and service centers.

7. Most of the customers are attracted to the technology and simplified usage of the

product. So, company should make the product more attractive with better features at

medium cost.

8. Company should target the employees and house wives as there are the effective.

9. Manufacturers should use advanced technology to reduce the cooking time.

10. Most of the customers prefer the product to maintain health and safety.

11. Rapid advertisements must be done in order to ensure the awareness of the customers

about the product.

12. Customer mindsets have been changing from using traditional products, as this is

chance marketers and retail firms must concentrate on new and innovative products

more and more.

13. As on the whole opinion of respondent about the induction cooker of Prestige, Bajaj,

TCL is very good, it needs to maintain it with good Service.

CONCLUSIONS

1. Company should focus more on promoting the product as a daily use product.

2. As observed that bringing awareness is slow. The company should take more aggressive

promotional activities like people in order to increase awareness.

3. Since most of the customers prefer health and safety to price manufacturers should produce the

product with more safety norms.

4. Company has to focus on the other age segments like bachelors, though its mostly preferred by

middle aged.

5. Should improve television adds to attact the consumers because many of the consumers do not

know about the product.

6. Should concentrate more on after sale services and should establish more service centers as

most of the customers prefer service centers to local repair shop when they observe any

malfunction in their induction cooker.