IN COMPANY TRAINING REPORT ON ANALYSIS OF THREE SUCCESSFUL CONSUMER GOODS OF BPL

(COLOUR TELEVISION, REFRIGERATOR, WASHING MACHINE)

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELORS OF BUSINESS ADMINISTRATION (BBA) GURU JAMBHESHWAR UNIVERSITY, HISAR

TRAINING SUPERVISOR MR. ASHOK KUMAR (MARKETING DEPARTMENT)

SUBMITTED BY: AWADESH SHARMA ENROLLMENT NO.: 06511213011

SESSION: MARCH 2009

DIRECTORATE OF DISTANCE EDUCATION GURU JAMBHESHWAR UNIVERSITY OF SCIENCE AND TECHNOLOGY HISAR-125001

CONTENTS
Page No. Company profile Phase-I (Project C TV) SWOT analysis Marketing mix Product Price Place Promotion Positioning Phase-II (Project Ref.) SWOT Analysis Marketing Mix Product Price Place Promotion Positioning Phase-III (Project W/M) SWOT Analysis Marketing Mix Product Price Promotion Positioning DEALERS SURVEY CONSUMER SURVEY FINDINGS CONCLUSION BIBLIOGRAPHY APPENDIX 3 8 8 13 14 15 15 23 23 24 24 27 28 29 31 31 32 33 33 34 35 36 37 37 38 49 56 60 63 64

ACKNOWLEDGEMENT
This project is based entirely on personal finding and information, which was gathered from all reliable sources. I have been careful to avoid disclosing anything, which in my judgement could adversely affect BPL Ltd. It is impossible to thank personally all the people who have helped in the making of this project. But I would like to take this opportunity to express my profound gratitude and indebtedness to the following. I am grateful to my guide and project coordinator Mr. Ashok Kumar (Marketing Department) who provided me with valuable advice and assistance for arriving at the most functional and relevant format of this project and constant monitoring of the field work, which was a great moral booster. I also thank her for helping me out of problems and bottlenecks. Lastly I thank all my colleagues and friends for providing moral and academic support to me during the course of my project.

COMPANY PROFILE BPL LTD

BPL Came into being with a vision that was nurtured by T.P.G. Nambiar. BPL incorporated as British Physical Laboratories Ltd. n 1963 to manufacture hermetically seated panel meters. Now its Business areas include consumer Soft electronics, energy, Telecommunications, and Medical

Consumer

durables,

professional

products, power and components covering over 230 products and services. BPL PRODUCTS DIVERSIFICATION: Entertainment Electronics BPL Ltd. BPL Sanyo Technologies Ltd. BPL Sanyo Ltd. Home Appliance BPL Refrigeration Ltd. BPL Sanyo Utilities & Appliances Ltd. Colour & B&W TVs VCRs / VCDs Audio Systems Satellite Receivers Refrigerators Washing Machines Microwave Ovens Vacuum Cleaners Gas Cables Components BPL Engineering Ltd. Electronic Research Ltd. BPL Display Devices Ltd. TV, VCR & Audio Components Components for Home Appliances Compressors Other Electronic Components

Telecommunications BPL Mobile Communication Ltd. BPL US West Cellular Ltd. BPL Wireless Telecom Services Ltd. BPL Telecom Ltd.

Celluar Services (Mumbai, Maharashtra, Kerala, TamilNadu) Paging Services (Kerala, Karnataka, TamilNadu) Business Communications Transmission & Scade Consumer Telecom

Power

BPL Power Project (AP) Ltd.

520 MW Power Generation at Ramagungam, Andra Pradesh Alkaline Batteries Managanese Batteries Rechargable Lanterns

Soft Energy

BPL PTI Chemicals Ind. Ltd. BPL Ltd.

Professional Products

BPL Ltd.

Colour Monitor CTV Cameras Medical Electronics LCD Projectors

Technical Collaboration: BPL has its Technical collaboration with the worlds best: Sanyo Japan For consumer electronics, home appliances components, officer automation products, soft energy product

Toshiba Corporation

For colour picture Tubes, key Telephone and power project

France Telecoms & US West International

For cellular mobile phone service

Media one & Harriz Communcaiton

For digital switching system

Octel

For voice processing system

Nokia

For private mobile radios

Korea Heavy Industries Balck & Veatch and Marubani Production Capacity:

For power projects

BPL is the flagship of the Rs. 30 billion ($ US 755 million) as per March 1998 financial statement states. It has unrivalled

infrastructure of 30 factories covering over 5 million square ft. and highly skilled 13000 strong force i.e. perhaps one way BPL can retain its status as a low cost manufacture. Its personal costs, as percentage of sales, were 1.57% in 1997-98 compared to Videocon internationals 1.7%, Mirc

Electronics 3.90% and Philips Indias 7.20%. BPL Ltd. In CTV Product manufacturing capacity is at the top. While in case of refrigeration and washing machine its capacity utilisah is comparatively 47% and 72% respectively. NAME UNIT BPL LTD BPL LTD BPL LTD OF PRODUCT CTV B&W CTV CAPACITY (MILLION) 5.0 1.0 1.0 STATUS UNDER IMPLEMENTATION 1999 PLANNNG UNDER IMPLEMENTATION 1999-2000

Especially, since its competitors like Electrolux, Videocon & GodrejGE are way ahead of it in the volumes games. Therefore BPL will have to either invest in expanding its capacity or possibly seek acquisitions. Only when this happens then the customer believe that BPL is the Best. BPL Export Performance; BPL won many awards from the Government of India in recognition of BPLs exemplary export performance. BPL groups state of the part art manufacturing units have been exporting a wide range of

products

since

1991

to

many

countries

around

the world

particularly to USA, Europe, Japan, Taiwan, Singapore and SouthEast Asia. MAJOR CATEGORIES OF PRODUCT FOR EXPORT ARE: Soft Energy: Alkaline batteries are manufactured under the license form Sanyo and are exported back to Sanyo and also to Fuzi Films for their disposable cameras. BPL has the capacities to manufacture 15 million pieces per months. The batteries are available in two sizes:LR03 LR06 (AAA) (AA)

These are environment friendly batteries with a zero mercury and cadium content. These batteries can be offered in private labels in a wide choice of packaging. Computer Monitor: BPL started exporting SVGA Colour Monitors to USA in 1996. Kleer monitors in sizes 14, 15 and 17 are making waves in the USA markets and are available through a number of mail order and regional distributing companies. BPL also supplies monitors to Europe under OEM labels.

PHASE I SWOT ANALYSIS

STRENGTHS 90% Manufacturing Base. BPL Ltd has acquired four CTV manufacturing facilities in the country on lease basis. This takes companys CTV manufacturing capacity 2 millions units from existing 1.2 million. Units are located in: Banglore Chennai Delhi Palakkad BPL also acquired Uptron facility Brand Awareness BPL never lost the mind game, according to A&M annual survey BPL is Indias first most admired consumer durable firm. Trisys an independent research agency has valued the BPL brand at Rs. 1,102 crore. Maximum dealers networking in India almost 4000 authorised dealers which gives it price control & maximum reach.

Collaboration with worlds best manufacturers which upgrade its technology when market demands. 65% of Indias CTV Industry depends on BPL for equipments.

Second Largest Exporter of CTV after Sony but still commands in 14 & 17 CTV Exports. S.No. 1 2 3 4 Company Sony BPL Videocon Dixon Exports share 34.5% 23.16% 19.52% 16.34% CTV Sets 55292 37132 31277 26171

Note BPL was No. 1 last year at 58% export share BPL is adorned with internationally aclaimed quality standards. The BPL group has reported whopping 36% rise in volume in CTV for the period April 1998 to Feb. 1999 according to latest ORG Report. With this BPL has maintained its No.1 Position with an over all market share of 23.2% last year. Despite the domestic market getting fragmented due to stiff competition. In four out of five segment of CTV (20, 21, 25, 29) BPL is No. 1. (Above mentioned facts helps BPL to check on price, distribution and cost which further reflects in lower price & better service

maintenance.)

10

Weaknesses: Considered as premium brand so middle class people think it is unaffordable. Non-Existence of BPL in CTV exports in following categories: 20 CTV 21 CTV 25 CTV 29 CTV Although BPL protected its No. 1 Position in domestic CTV market but is regularly losing market share. Dec 1998 22% June1999 20.2 % Dec.1999 19.7%

BPL slipped to no. 2 in 14 CTV Opportunities: Potential market for CTV sets in India is vast as CTV penetration in the country is one of the lowest, 43 persons per 1000 population possess a TV set. 60% of CTV revenues seem coming from rural areas, BPL can cash upon this. Indias rapidly growing middle class segment.

11

Growing replacement market. Multiple TV homes increasing. TV Veopar Journal states, greater export potential for CTV in Singapore (currently 81% export share), followed by UAE (18%), China & Malaysia. Threats: Kabir Mulchandani picked up AIWA over Akai since AIWA is producing kits 10 15 % lower prices than Akai. Hence armed up for low-price war in CTV 14 Rs. 5950, 20 Rs. 11440. China largest TV manufacturer KONKA ready to hoist the red flag over Indias CTV Market. KONKA entered the CTV arena last year. Kabir Mulchandanis Marketing Sales & Distribution tie up with HHEA (Hitachi Home Electronics Asia) to initially market three models 21, 29 & 33. Patent rights on On Screen Display and Menu Display a major road block for BPL exports to Germany, U.S.A. & Italy. Existing MNCs Samsung, AIWA, LG and Philips continuously raising their share while BPL despite of increasing sales losing its market share.

12

Segment

BPL Market Share as on Volume Dec.1999

growth

over

Previous Year 50.5 % 7.7 % 33.1 % 192.3 % 75.7 %

20 21 25 29 14

21.1 % 18.1 % 47.5 % 30.6 % 13.0 %

13

ANALYSIS OF COLOUR TELEVISIONS MARKETING MIX

Products Price Place Promotion Positioning

14

PRODUCT
Model 14" Portable KSR KDR KBR KTE 20" CTV EBR LVR LXR LCR 21" Flat & Full Square Tube FQR FXR FHR FTR FWR FYR 25" Large Screen BQR BXR BZR 29" Large Screen NPR NQR

15

PRICING
The BPL brand commands a premium position in consumer durables. But, if it has to climb up the volume, ladder, it has to step down the price-ladder since it is the middle class segment that have the potential for growth. Size 14 20 21 25 29 Price (Rs.) 7000 10000 10000 12000 13000 20000 20000 30000 35000 45000

PLACE
Needless to say that competitive scenario in the CTV Market is extremely intense. Infact the industry is gradually becoming over crowded and competition is cut-throat. So in present marketing situation BPL to become CTV leader has three marketing strategies (3M) available to deal upon.

16

 I-M

Marketing in Traditional Area (Urban) But with new marketing perspective.

II-M III-M

Marketing in Rural Area. Marketing in Overseas (Exports)

Although earlier, BPL had placed itself as marketing leader in I-M & III-M, but recently it has lost its leadership in export. Also it is striving to maintain its supreme position in urban market, since its market share has reduced to 19.7% in December 1999 as compared to 22% in December 1998.

17

I-M MARKETING IN URBAN

BPL Videocon Onida Samsang Philips Aiwa LG Sony Thompson Panasonic Akai Daewoo Konka T-Series Sharp

In current situation around 15 CTV manufacturers are fighting cutthroat competition in urban market. As out of 15 listed CTV manufacturer 74% (11) are MNCs with a total 54.7% (Dec'99) market coverage. And in initial phase of their marketing strategies (Top to bottom) they always prefer to cater in large density cities/towns. Thus making the urban market congested and operating at thin margins, by working at large volumes and low price. Even BPL is striving to maintain its supreme position since despite of rise in sales volumes to 63,800 in 1999 from 55, 400 CTV sets in 1998. Its market share reduced to 19.7% in Dec'99 from 22% in Dec'98.

18

II-M MARKETING IN RURAL

Why go rural Urban Market is over crowded with domestic as well as MNC players and saturated urban demand made the profit margin thin. 60% CTV revenues seen coming from rural areas in 2005 which is almost 30% at present. (FICCI) Increased rural income resulted in growing consumerism. Pioneer is the first & maximum beneficiary. You do otherwise some other will do, as Philips & LG started to look upon Rural Segment. Analysis: Over the past twenty years there has been a great increase in television viewership in rural ares as compared to urban areas.

19

III-M MARKETING IN OVERSEAS (EXPORTS) WORLDWIDE CTV DEMAND OVER THE YEARS

Worldwide CTV Demand (Million Nos.)

160 140 120 100 80 60 40 20 0 1990 1991 1992 1993 1994 Years 1995 1996 1997 91.2 114.7 120.4 104.9 95.2 100.2 125.4 128

150

2000

Analysis : Huge potential for BPLs, CTV Export

20

The Paradigm Shift The Transition of TV viewership from Urban to Rural, which makes it evident that Rural percentage has suppressed the urban. Hence they are the better prospects to target.

1980
Rural 20% Rural Urban Urban 80% Urban 70%

1985
Rural 30%

Rural Urban

1990

1996

Urban 60%

Rural 40%

Rural Urban

Urban 49%

Rural 51%

Rural Urban

Expected in 2000

Urban 40%

Rural Rural 60% Urban

It is evident from the above pie charts the relative importance of the rural market for CTV manufactures (BPL) is rising.

21

Geographical distribution of T.V viewership in urban and rural India.

Viewership (%)

80 70 60 50 40 30 20 10 0 48.58

66.82

62.78

65.8 58.82 54.7 42.55 49.9 Urban Rural

North

West

South

East

Regions

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

22

PROMOTION
The beginning of 1998 did not present an exciting picture of CTV manufacture, with poor counter sales and the economy witnessing a slow down in many key segments. Thus manufacturers had to stimulate demand and wake up latent desires. With more than 15 brands competing in the same market place, and with very little differential between one brand and the other. Companies resorted to various tactics to attract the attention of the consumers. Free gifts, attractive exchange offers for old TVs sets, money back offers and zero-percent finance schemes have become handy tactics to push up sales with each company outdoing the other in giving free gifts and discounts. The market registered a dramatic increase in size last year, BPL has also introduced some exciting offers to attract the customers, like: A. B. Real Discounts. Exchange Offers Installment Schemes.

C.

23

Positioning: Undoubtedly, BPL is considered as top brand and its positioning is basically based on following categories: A. B. C. Attractive Looks World Class Products Attractive Advertisement

Analysis: BPL is declining in its positioning strategies, where as LG is regularly gaining growth.

24

PHASE II BPL SWOT ANALYSIS

Strengths It commands a leading position in frost free segment with 43.4% market share Top Brand awareness BPL Refrigeration merger with Sanyo to uplift BPLs market share. Weaknesses BPL Refrigeration has accumulated losses of Rs. 55 crore or 47% of its net worth. It has incurred a loss of Rs. 41.49 crore in 18 months ended Dec'98. BPL brand has greater association with CTV Negligible presence in direct cool segment which constitutes 80% Refrigeration market. Opportunities Expected market share in frost-free Refrigeration and Direct cool is 40:60 in 2000 and 60:40 in 2005 respectively. Rural market in North India with small size Refrigerator range 165-200 litre.

25

 To be pioneer in introducing first ozone-friendly HFC-134 refrigerator. Threats MNCs like Whirlpool, Daewoo gaining ground in domestic market. Montreal protocol- Till 2010 entirely eliminate the consumption and production of CFC- Refrigerator.

26

ANALYSIS
BPL is the leader in the frost free refrigerator segment share (43.4%) of price range (Rs. 14000-23000) but it has negligible presence (0.02% market share) in the direct-cool refrigerators Price range : (Rs. 9000-18000) business, which constitutes 85% of the Rs. 3500/- crore market. With the help of Sanyo, BPL is committed to become market leader in Refrigeration also. There's no denying that BPL Refrigeration accumulated losses raised to Rs. 55 crore, 47% of its networth, in Dec'98. But its new merger with Alpha securities & BPL Sanyo may help it to overcome its turnover tumble in near future with enough finance availability and expanding capacity.

27

ANALYSIS OF REFRIGERATORS MARKETING MIX

Product Price Place Promotion Positioning

28

PRODUCT
4-Door
Launched Model Capacity (Litre) 350 Freezer Compartment (Litre) 78 Refrigerator Compartment (Litre) 272

1996

BR 3504

Product USP
"Deodoriser (Actocarbo), Humidity Controlled Vegetable,

Compartment"

6-Door
Launched Model Capacity (Litre) 560 Freezer Compartment (Litre) 180 Refrigerator Compartment (Litre) 380

1997

SR 56 x J

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

29

ANALYSIS
BPL does'nt have any model in 165lt category despite the fact that about 77.5% market share is captured by 165lt in conventional refrigerator. BPL has better prospects in frost free segment since its market share is forecasted 40% in 2000 in comparison to 20% in 1998.

PRICE
Company BPL BPL BPL BPL BPL BPL BPL BPL Model BR 1852 BR 2002 BR 2502 BR 3102 BR 310VX BR 3503 BR 4852 BR 5502 Capacity (litre) 185 200 250 310 310 350 485 550 Price (Rs.) 12,800 14,400 17,700 23,500 24,000 28,500 46,000 63,000

30

Analysis
Being premium brand, BPL exhibits premium pricing policy in most of its refrigerators. But stiff competition scenario and growing middle class, today, demand BPL to power down in pricing ladder to capture big chunk of market share. Presently BPL follows following pricing strategy in various capacity of refrigerators. 185 lt 200 lt 250lt 310 lt 350 lt 485 lt 550 lt Competitive pricing premium pricing Premium pricing competitive pricing competitive pricing premium pricing premium pricing

31

PLACE
BPL should focus on a TWIN strategy to raise its sales volume : 1. Place bigger models (185 lt. and above) in Urban areas since in Urban areas demand is shifting from traditional 165lt., to capacities of 185lt and above. Also in replacement scheme mostly consumers prefer bigger models. 2. Pushing the smaller models (below 250lt)) in rural market of North & South India, like U.P., Punjab, Haryana, Kerala, karnataka, Maharastra etc.

Promotion
BPLs Ad campaign of "80:20 Principle" scripted a success story in 1998-99. Which stated space for placing vegetables, fruits and cooked food. BPLs advertisement and expenditure largely executed on CTV in comparison to Refrigerator or washing machine which resulted in lower "top-of the mind" brand recall" of BPL in refrigerators. With the entry of foreign players, another trend emerging is that of the fancy exchange offers for the existing old models i.e., something which had been their standard marketing penetration strategy in all electronic application. Following in the same pursuit, BPL has also introduced certain exciting schemes like:

32

1. Discount offer 2. Exchange offer 3. Installment schemes

POSITIONING
The BPL brand commands premium position in refrigeration category in one segment, and a non existent position in the other segment. BPL Positioning in refrigerator can be broadly classified under two categories. Direct cool refrigeration BPL has a negligible market share since it entered this segment only in 1998. Frost Free Refrigeration BPL is the market share leader in this segment.

33

PHASE - III
SWOT Analysis: Strengths: Third Largest player in W/M. 80% Sale form Semi Automatic Category. BPL Merged with Sernyd Alpha securities in July'99, which stimulated good business. Opportunities: Urbanised sector still have huge untapped potential for both Semi Automatic (SA) and Fully Automatic (FA) segment of W/M. Weaknesses: Need to upgrade fully automatic segment. BPL Brand most known for CTV and a big portion of its advertisement expenditure goes to CTV. Threats: MNCs, like Whirlpool, Samsung, LG & IFB Strengthening their roles in Indian market at the cost of domestic players. Technology oriented competition.

34

ANALYSIS OF WASHING MACHINES MARKETING MIX

Products Price Place Promotion Positioning

35

PRODUCTS
Semi Automatic Deluxe 30 BS 35 BS 40 BS 50 BS 65 USP Pressure Cleaning Technology: By using the force of water it crates maximum turbulence Action Soak Option: In case of really dirty clothes, the soak process consists of detergent dissolution, repetitive cycle of silent immersion and agitation. Fully Automatic ABS 45 Deluxe ABS 45 Super ABS 50 F USP Fuzzy Logic: Depending on the fabric type and the number of clothes, the quantity of water to wash is decided and filled in by the machine

36

and quantity of detergent is indicated on the panel. The wash, rinse and spin cycle duration are determined automatically. PRICE Semi-Automatic (Rs. 6000-10000) Fully Automatic (Rs. 12000-20000) The years ago, a washing machine was considered an essential item only on the conspicuous consumers shopping list for status symbols, even if this object of desire in the bath room. Today they have become so much part of the urbanities list of necessary household appliance that she could not wash her dirty linen in public even if she had a mind to. Analysis : Both Semi Automatic and Fully Automatic are demanded in Urbanised sector and in few rural sector Punjab, Haryana & Maharashtra where it is perceived as status symbol.

37

PROMOTION
Exchange Offers: Six leading players including BPL have flooded the washing machine market with Old for New exchange schemes. These price wares in disguise offer up to Rs. 3000 off on a new washing machine of BPL. BPLs Ad Campaign Fights Dirt Not Clothes played an important role to surge its sales volume in 1998-99. Positioning: In washing Machine, BPL enjoys the third largest position and is regularly strengthening it. It is considered an affordable W/M manufacture equipped with latest technology. While in fully automatic segment its still working on premium brand positioning but with competitive Price i.e. emphasis is on heavy promotion with competitive pricing.

38

BPLS DEALERS SURVEY IN DELHI

Ref. Q. 1 : Average CTVs, Refs, W/M sold per dealer in Dec.99 Product Territory SD WD C &E WD 35 15 36 20 106 29 18 21 13 81 19 15 28 12 74 CTV Refs. W/M

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

40

CTVs

Refs.

W/M

Average Units per dealer sold

35 30 25 20 15 10 5 0 SD ND C&E WD

Regions

Findings: SD & C&E Dec. 99. Delhi evolved as major in BPL sales volume in

39

Ref Q. 2: What was the break up of unit sold (Av. Sale per dealer) a) CTV Model Size Territory South Delhi North Delhi Central & East West Delhi Total %age

14 5 2 7 10 24 22.6%

20 13 7 10 5 35 33%

21 10 5 14 5 34 32%

25 3 1 5 9 8.4%

29 4 4 4%

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

4% 8% 23%

32% 33%

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

40

Ref. Q. 2: b. Refrigerator What was the break up of unit sold (Av. Sale per dealer)
Capacity lt Territory SD ND C&E WD Total %age 185 8 7 10 7 32 39.5% 200 5 6 10 3 24 29.6% 250 3 4 7 8.6% 310 2 2 5 2 11 13.6% 350 1 1 2 2.5% 485 3 3 3.7% 550 1 1 2 2.5%

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

2.5% 3.7% 13.6%

2.5%
185

39.5%

200 250 310 350 485 550

8.6%

29.6%

Findings : 69.1% sales is recovered from (185-200lt) segment followed by 13.6% of sales from (310lt).

41

Ref. Q. 2 : c. Washing Machine What was the breakup of unit sold (av. Sale per dealer) Territory SD Model SA FA Total % Finding: a) SA type leads with 62.9% market share of total of BPLs W/M sales. b) Territory wise SD and ND constitute for 54.2% sales of W/M. 15 11 26 37.1 8 4 12 17.1 10 6 16 22.9 11 5 16 22.9 ND C&E WD

42

Ref. No. 3 : Which other brand do you keep in your show room.

Only BPL

Other Brands Also 15%

85%

Findings: Since most of BPL dealers also keep other competition brands in their show room which gives consumers an option to choose other brands hence hampered BPL sales.

43

Ref. Q. 4 : What do you think about the margin given by the company. Capacity Territory SD ND C&E WD Total %age Very Good 2 1 2 1 6 15 Average 2 2 3 3 10 25 Low 7 5 8 4 24 60

Low Margin 15%

Average Margin

Very Good

25%

60%

Findings : a) 60% Dealers are not satisfied with margin given by BPL in comparison to competitors. b) And if margin is increased, most dealers confirm to increase 10% or more sales of BPL products.

44

Ref. Q. 5 : Do you think company should force all its dealers to sell its products at fixed price.

YES 7% NO YES NO 93%

Findings: a) Theres negligible controversy (7%) among BPL dealers in terms of Price off given by the co-company. b) So BPL should not force its dealerss to sell its products at fixed price.

45

Ref. Q. 6 : Are you satisfied with the current inventory level. Capacity Y Territory SD ND C&E WD Total %age 7 2 8 1 18 60% 2 5 1 4 12 40% N

Findings : a) 60% dealers are satisfied with current inventory level. b) From non satisfied dealers 75% belong to ND & WD and they demand of more frequent supply.

46

Ref. Q. 6: Are you satisfied with the current inventory level.

Satisfied 40% Unsatisfied 60%

Satisfied Unsatisfied

Among Non-Satisfied:

SD 16.7% C&E 8.3% ND 41.7%

ND WD C&E SD

WD 33.3%

Findings : a. 60% of the dealers are unsatisfied with the current inventory level. b. Out of this 60% of unsatisfied dealers, 41.7% are from North Delhi and 33.3% are from west Delhi

47

Ref. Q. 7: According to you which of the following factor will result in increase in sale of BPL products from your counter.
Factor Territory Increase Margin though uniform pricing 3 2 2 -7 23.3% Training Your sales person on BPL Products ------Faster (Order to delivery) process ------More frequent contact by Company sales Person ---2 2 6.7% Better After sales Service Better Adv. & Publicity

SD ND C&E WD Total %age

2 -3 -5 16.7%

4 5 4 3 16 53.3%

Adv. & Publicity Increase margin through uniform pricing Better after sales service More frequent contact by sales persons
6.7% 16.7%

53.3% 23.3%

Findings : Mostly dealers (53.3%) voted for advertising & publicity as best factors for increase in sales of BPL products.

48

Ref. Q. 8: BPL reward system for dealers is good enough to motivate them

Disagree 13% Agree Disagree Agree 87%

Findings : Those 13% who are not satisfied with reward of BPL, most of them demanding for foreign trips related to any event like cricket match, tennis match, etc.

49

CONSUMER SURVEY IN DELHI

Ref. Q. 1:
According to you which is the top two brands in following consumer durables. CTV Sony BPL Videocon Akai LG Sumsung 68 62 18 12 W/M Videocon Voltas Godrej Kelvinator Whirlpool BPL 59 8 48 45 Refs. Videocon BPL Voltas Godrej Whirlpool Kelvinator 31 22 5 42 10 50

FINDINGS:
Mind Share (i.e., name the first company that comes to mind) IN CTV, Sony and BPL are two top of the mind brands. BPL mind share in W/M comes 3rd In Refs. BPL acquired very less mind share due to non-existence in direct cool segment (Rs. 9000-14000). Heart Share (i.e., Name of the company from which you would prefer to buy product).

50

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

Ref. Q 1.
According to you which is the top brand in following consumer

51

durables.
68 70 60 62

CTV's

No. of Responses

50 40 30 20 10 0 Sony BPL Videocon Brands Samsung 18 12

60 50

59 48

W/M
45

No. of Responses

40 30 20 8 10 0 Videocon Whirlpool Brands BPL Voltas

52

50 50 45 42 31 22 40 35 30 25 20 15 10 5 0
Kalvinator Godrej Videocon BPL Whirlpool Voltas

Refs.

No. of the Respons es

10 5

Brands

53

Ref. Q. 2
Which of the following stimulus motivate you to purchase consumer durable products. Category Response %age Discount 29 36.2% Exchange Offer 8 10% Advertisement 43 53.8%

FINDINGS
Very few people (10%) are stimulated by exchange offers, since they have purchased CTV, W/M or Refs few years ago or they are the first time purchaser of these products. More emphasis should be given to attract prospects on advertisements and discount.

Exchange Offer 10% Discount 36%

Adv. 54%

54

Ref. Q. 3
Previous purchase decision of BPL products was influenced by
Category Dealers Advice Response %age 18 23 Past Experience 6 8 Neighbor's Advice 20 25 Wife pursuance 8 10 Children's Pursuance 3 4 25 30 Warranty

FINDINGS
Only 23% consumers confirmed that they were motivated by dealers. Now, if dealers advice and past experience are kept apart, rest 77% consumers can be directly persuaded by BPL through increased advertisement expenditure and warranty period.

Warranty 30%

Dealer's Advice 23%

Past Exp. 8%

Chldren Per. 4% Wife Per. 10% Neighbour Advice 25%

55

Ref. Q.4
Satisfaction level of consumer
Fully satisfied After sales service (%) Quality Life of products (%) Value for money (%) Features (%) 7 (8.8%) 58 (72.5%) 59 (73.8%) 35 (43.8%) 73 (91.2%) Partially satisfied 23 (28.8%) 22 (27.5%) 12 (15%) 39 (48.8%) 7 (8.8%) Unsatisfied 49 (61.2%) 9 (11.2%) 6 (7.4%) Strongly unsatisfied 1 (1.2%) -

FINDING
Mostly, 62.4%, consumers are unsatisfied with BPLs after sales services 100% consumers are satisfied with quality of BPLs products (fully and partially). 88.8% are satisfied with life of BPLs products. 92.6% consider it as value for money brand. 100% consumer are satisfied with BPLs products features (fully and partially). Ref. Q. 5 Problems Faced with BPL products.

FINDINGS
Around 60% of consumers are unsatisfied with BPLs after sales services.
56

FINDINGS
I. PRODUCT CTV
BPL the market leader in CTV with 19.2% Market Share in Dec'99 but erosion in market share from 22% Dec'98. In screen size BPL enjoys No. 1 in 20", 21", 25" & 29" but slipped in No. 2 in 14". BPL is major exporter of CTV after Sony (T.V. Veopar Journal). BPL mainly exports 14" & 17" CTV but absolute non-existence in 20", 21", 25" & 29".

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

W/M
Third Largest player in W/M market share with nearly 80% of its sales in fastest growing SA segment, but FA segment needs to update its products.

II. PRICE
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BPL adopted and currently working on skimming pricing strategy in CTV's But it is working on competitive pricing in Refs. & W/M. Most of the middle class segments considered it-"A brand suitable for upper class segment".

III. PLACE
Commands leading position in urban sector but no serious efforts are made to cash upon untapped huge potential demand in Rural Sector, specially demand for Small Size CTV and smaller capacity refrigerators, (165-200 L.).

IV. PROMOTION
BPL Advertisement expenditure and brand association largely executed on CTVs as compared to Refs and W/M.

Dealer's Survey
Most of BPLs Authorized Dealers keep other competitive brands (L.G. Philips, Aiwa etc.) which hamper BPL sales. South Delhi and Central and East Delhi performing well as compare to North and West Delhi. 60% authorized dealers are not satisfied with current inventory level Mostly from North West Delhi. If Dealers margin is increased Sales volume will increased to 10% or more.

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

V. POSITIONING
Mind Share as well as heart Share of BPL, CTV is very high as compare to Refs and W/M. Large Chunk of people stimulated to purchase BPL product by Adv. And discount schemes.

Most demanded feature CTV

a. When switch over from one channel to another sound should be same. b. Coloured plastic cabinet of CTV. c. 100 or more programs. d. Child lock. e. Hi-fi surround system.

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

W/M
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a. Less electricity consumption b. Increased warranty period. c. More wash programs in SA.

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CONCLUSION
POTENTIAL MARKET CTV: Small Size CTV (14") particularly in rural market. Ref. : Small size refrigerator (165 to 200lt) both in urban and rural market. W/M: Capitalize on untapped potential urban market for both semi automatic and fully automatic washing machines. Also target rural market. HOW TO INCREASE SALES (FOUND OUT BY DEALERS SURVEY) CTV : Emphasize on 20" & 21" (TV since they are the most selling sizes. Ref. : Emphasize on 165 to 200lt refrigerator since they are the most selling sizes. W/M: Emphasize on semiautomatic machines especially south Delhi and North Delhi regions. HOW TO INCREASE SALES (FOUND OUT BY CONSUMERS SURVEY). In order to increase sales of CTV, Refs, and W/M emphasis should be given on heavy advertisement expenditure and discount offer. Also dependable warranty should be given to the consumer for purchased product.
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After sales service should be given more emphasis and improved. CAUSES FOR DECLINING PERFORMANCE OF BPL IN : 14" CTV Intensive price war in 14" CTV market segment Particularly launched by Aiwa which is offering 10 to 15% lower prices to the consumer. Also BPL is emphasizing on exports of 14" CTV and overlooking the national market. Direct cool Refs. BPL has almost a non existent presence in the direct cool refrigerator segment since they had entered this market recently (1998). Fully automatic W/M Fully automatic washing machine segment of BPL's washing machines needs to be upgraded, technologically in order to compete in the cut throat market with competitors. FEEDBACK CONSUMERS: Most consumers are satisfied with quality of BPL's products, life of BPLs products and BPL's products features. They also consider it a value for money brand. Most consumers are unsatisfied with after sales service though. RELATIVE QUALITY PERCEPTION OF BPL BRAND IN: ON PRODUCT PERFORMANCE FROM

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CTV : In CTV's quality perception of BPL's product is quite good with consumers. Refs. In refs. Quality perception of BPLs product in the frost free segment is very good, but in Direct cool segment there is no question of quality perception since there is non existence of BPL in that particular segment. W/M : In W/M quality perception of BPLs product is not so good with consumers and needs to be worked on. DECISION - MAKING CRITERIA Decision making criteria of consumers is heavily dependent upon warranty neighbors advice and dealer's advice followed by past experience, wife and children pursuance.

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BIBLIOGRAPHY

Television Veopar Journal'99 Business Today'99 Outlook'99 A & M'99 Business World'99 Capital Market'99 Economics Times'99 BPL Monthly Magazines BPL Annual Reports and Journals.

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APPENDIX
DEALER QUESTIONNAIRE
Q1. How many units did you sell in Dec'99? (Give in no.) CTV Washing Machine Refrigerator

Q2. What was the breakup (no. of units sold in each model) CTV 14" model 20" model 21" model 25" model 29" model WM Refrigerator

Semi Automatic Full Automatic

185 lt. 200 lt. 250lt. 310lt. 350 lt. 485 lt. 550 lt.

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

Videocon Whirlpool Sony

Videocon Daewoo

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Q4. What do you think about the margin given by the company? 1. Very Good

2. Average

3. Low

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

or

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

Q7. According to you which of the following factor will result in increase in sale of BPL product from you counter? (Give 1-for Best Factor, 2-for average factor, 3-for poor factor.) - Increase Margin through uniform pricing - Training your sales person on BPL product features - Faster (order to-delivery) Process - More frequent contact by company sales personal - Better after sales service - Better advertising publicity `

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Q8. Is BPL's reward system for dealers good enough to motivate you? Agree

or

Disagree

Signature of Interviewee

Signature of Interviewer

Name Address

: _______________________________________ : _______________________________________ _______________________________________ _______________________________________

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CUSTOMER QUESTIONNAIRE
PERSONAL INFORMATION

Name Address Tel. No.

Q1. According to your which are the top two brand in following consumer durables.
CTV Sony_________ BPL _________ Videocon______ Akai ___________ L.G. __________ Samsung________ Washing Machine Videocon Refrigerator Videocon BPL Voltas Godrej Whirlpool Kelvinator ________ ________ ________ ________ ________ ________

_________

Voltas_________ Godrej_________ Kelvinator_________ Whirlpool_________ BPL

_________

Q2. Which of the following stimulus motivate you to purchase consumer durable products? (pl. Tick any one) - Discount Offer - Exchange Offer - Advertising & Publicity

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Q3. Your previous purchase Decision of BPL Products was influenced by: - Dealer Advice - Neighbor Advice - Warranty

- Past Experience - Wife Pursuance - Children Pursuance

Q4. What is your satisfaction level (on give parameters) for BPL Product Currently used by you? (pl. Tick under appropriate column)?
Fully satisfied After sales service Quality Life of product Value for money Features Partially satisfied Un satisfied Stongly unsatisfied

Q5. What are the problems (if any) faced in the current BPL product owned by you(if any): ____________________________________________________________ ____________________________________________________________

Signature of Interviewee

Signature of Interviewer

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