1

STUDY OF THE CONSUMER BUYING BEHAVIOR &

SALES PROMOTION OF KHAITANHOME APPLIANCES.

A report submitted towards the partial fulfillment of the requirement of the two
years full time Post Graduate Diploma in Management.

SUBMITTED BY: VivekRanjan
Post Graduate Diploma in Management
Roll No. :2k11B36
(Session: 2011-13)








ASIA-PACIFIC INSTITUTE OF MANAGEMENT
3& 4, Institutional Area, Jasola, New Delhi 110025.


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PREFACE
With the need of an hour and the changing environment, Management Institutes these days have
started giving more stress on the management training program as it is the first interface of a
management student with the culture and environment of the Corporate World. It gives them the
first hand information and experience to share and use their knowledge and bring out some
meaningful results out of it. This is the opportunity where students learn to experiment theory in
practice in the real World of Corporate Business.
Our Institute has also been looking in the same direction to produce students with
excellence and with great determination that can possess knowledge of theory along with
practice. So for this we have undergone a Summer Training Program of 6 weeks in Khaitan
Electrical Ltd for a project on Consumer Behavior and Analysis for Enhancement of Business
Strategy with Emphasis on KhaitanAppliances (B2C). For our project we are thankful to our
Institute for providing us valuable encouragement and guidance which has facilitated us in
making and completing our report.






3



Acknowledgment
I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals. I would like to extend my sincere thanks to all of them.
First of all I would like to thank Mr. Vikas Gupta, RegionalManager Eastern region Khaitan
Electricals Ltd., for providing me an opportunity to undertake the project of summer internship
as a summer trainee atKhaitanElectricals Ltd.
I am highly indebted to MrPuneetSaxena for their guidance and constant supervision as well as
for providing necessary information regarding the products& also for their support in completing
the project.
I would like to express my gratitude towards MrVipin, our territory in charge for their kind co-
operation and encouragement which help me in completion of this project.
It has also been my proud privilege and good fortune to work on this study under the table guidance of
Prof. Ratnesh Kumar, Faculty of Asia Pacific Institute of Management. His thoughtful comments
and conceptual insights into the subject kept me from floundering in my quest. Despite his busy
schedule he spared valuable moments for reviewing and rectifying this work. His uncompromising
demand for logical conclusions, quality of presentation, and originality of work and novelty of ideas
has benefited every single page of this study. I shall always remain grateful to him and no words of


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thanks can compensate for the liberty that I had been given to encroach upon whatever little spare time
he had at his disposal.
I also extend my thanks to various department heads, friends & family for the co-operation and help
extended to me during the preparation of the project.
















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CERTIFICATE FROM THE FACULTY GUIDE


This is to certify that the project work entitled Study of the Consumer buying behavior and
sales promotion of KhaitanHome Appliancesis a piece of bonafide work done by
VivekRanjan, student of Asia Pacific Institute of Management, under my guidance and
supervision for the partial fulfillmentof the course PGDM.
To the best of my knowledge and belief, the thesis embodies the work of the candidate himself
and has been duly completed. Simultaneously, the thesis fulfils the requirements of the rules and
regulations related to the summer internship of the institute and I am assured that the project is
up to the standard both in respect to the contents and language for being referred to the examiner.


Prof. Ratnesh Kumar



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DECLARATION
I hereby declare that the project report entitled Study of the Consumer buying behavior and
sales promotion of Khaitan Home Appliances is the fruit of my sincere effort. Isubmit this
summer internship project to Asia Pacific Institute of Management, New Delhi, for the partial
fulfilment of the course PGDM, and the report is not submitted to any other educational
institutions or for any other purpose whatsoever.


VivekRanjan.





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EXECUTIVE SUMMARY
i. During the last financial year the home appliances division has reported revenue growth
toRs84crore contributing 17.3% of the total revenue of 486 Crore and the Appliance
segment for the quarter stood at Rs18.9croreof the total revenue of 135 Crore. So as the
company is growing its Home appliances division is also growing.The company has a
strong position in the market because of it strong marketing and distribution network.
ii. Almost 93% of the people are using at least one home appliance in the major cities. So
the potential of Home appliances is high and in Delhi Home appliances market potential
are about 200 crores.
iii. Khaitan has a highest market share for KhaitanFans.It has reasonably good market share
in Mixer grinder, Air cooler category, Pumps,Lights and wires category.
iv. According to our respondents Khaitan brand is accepted to both Male and Female
category almost equally.
v. Almost th of the Khaitan product users say they use Khaitan home appliances in
between one month to five years.
vi. Customers visiting Shopping Complexes like Big Bazar are more concern about
Durability, Price,Features of a product and they are less concern about the Brand and


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the Quality. The most probable reason may be because Modern Retailer isicon of Less
Price Product, and few times they sell product of their own brand. This can be easily
predicted by the tag line of Big Bazar- Issesastaaurachhakahinahin
vii. But in case of Shopping Complex like Pantaloons respondents are more concern about
brand and usually they prefer prime products.
viii. Customers who purchase Khaitan Home Appliances are more concern aboutPrice and
Value for money composition. They also look for more Features and Warranty/
guarantee.
ix. According to the respondents half of them are ready to pay more for more features. So
Khaitan can launch new prime products either under the same brand or with a new brand
name. They can also upgrade some of the existing products.
x. It has been pointed out that Usha is the biggest competitor of Khaitan, and the other
major competitors are Philips, Kenstar, Maharaja, KenwoodKoryo etc. The main reason
behind this may be as Usha is also providing almost same kind of product in same or less
prices. Philips provides premium products and Maharaja low price products. Now few
domestic and international players are using China made components for reduction of
manufacturing cost which increase the market competition.
xi. The purpose of visiting shopping complexes varies with age, Indian youth are visiting
mall mainly as a hang out places. But the older people and mid age group visit mall
mainly to purchase. Frequency of visiting a mall is also depend on age youth are more
frequent in visiting whereas mid age people visit mall 1 to 3 times a week.
xii. Khaitan is not a premium class home appliances manufacturer rather Khaitan product is
known for Low price, performance, guarantee & warranty. So Khaitan should focus more
on price leadership in order to get an edge over its competitors.
xiii. Other than that respondents consider Durability, easy maintenance as preferred factors
while purchasing General Home Appliance but in case of Khaitan electrical they consider
Brand image, Warranty & Guarantee, Features & Quality as significant factors. So in
order to maintain the current market share and to increase it Khaitan should strategically
used the above mentioned factors.
xiv. It has been pointed out that respondents who are willing to repurchase Khaitan will
recommendKhaitan to friends, relatives and known one. In Shop promotion and


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suggestion From Relatives and Friends are affecting the purchase but for factors like
Brand ambassador and advertisement the response is almost neutral. So investments in in
shop promotion may increase the sale of product.
xv. During holidays and week end consumers prefer to visit shopping complexes. So in shop
promotion during this period may increase the sale. And it has been pointed out that word
of mouth and in shop promotion has an impact on purchase.
xvi. Promotional offer like free gift, price offer and tour & packages influence purchase and
its preference varies with occupation of the respondents. According to them students
generally prefer

Overall, Khaitan Appliances has the potential to be the market leader of the extremely
competitive small appliance market in Delhi provided it pays attention to these problems
and implement the recommendations suggested.














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Table of Content
Section 1:-
1.1 Introduction to Topic:-
1.2 Objective:-
1.3 Scope Of Study:-
SECTION 2:-
2.1 Introduction of company:-
2.2 About the company:-
2.3 Products:-
2.4 Development of company:-
2.5 SWOT analysis:-
2.6 Comparative analysis with the competetors:-


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SECTION 3:-Review of Literature:-

SECTION 4:-
4.1 Market Strategy:-
4.2 Marketing MIX:-
4.3 Step of Report generation:-
4.4 Limitations of Study:-
4.5 Observation, Analysis &Discussion:-
4.6 Key Findings:-
4.7 Conclusion:-
4.8 Recommendation:-
SECTION 5:-Bibliography

SECTION 6:-ANNEXURE






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SECTION 1
1.1 INTRODUCTION TO THE TOPIC


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The title of my project is Study of the consumer buying behavior and sales promotion of
KhaitanHome Appliances. The company wants that there should be a market survey to know
the buying pattern of the customers and to know the requirement for any of the Khaitan
appliances in the market in the same product range of its competitors. So for this knowing the
demand pattern is very essential as to when and how the demand for the products arises and on
what factors does the customers buy the products. My area of survey was North Delhi. I visited
a showroom from wherein I have gathered a concrete data and have drawn analysis on the data
collected which will be helpful to the Company in studying and analyzing and drawing various
conclusions which will help in boosting the sales and growth of the Company. The data has been
collected from shops and have been gathered through many persons with full name and contact
details with the requisite information on the usage of appliances in the market and future
requirement of the same along with the details of its competitors products being used therein.




1.2 OBJECTIVE


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MAIN OBJECTIVE:-
To know the views and perception of business professionals regarding Khaitan as a
Brand and its products feedback.

To analyze what market trends and Customer behavior is regarding its demand and
buying pattern.

To know what, why, where, when and how the Company procures the products.

To forecast sales this is dependent on the consumer response and their feedback.

To know the customers response to the products.

To increase sales and growth in future.

To segment, target and position itself (company) according to the current environment
and need of the market.




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SPECIFIC OBJECTIVE:-
For achieving my Objective of the report I have been visiting shops in Delhi and took personal
interview of individuals from shop owner, customers and the persons who work there. I was set
to conduct a market research in the shop and customers (B2C) on the study and understanding of
what, when, where, why and how the consumers purchase the products especially with regards to
Khaitan appliances and its competitors products. I myself prepared a certain set of questions to
be asked from the consumers and shop owners and to know any future requirement of any of the
Khaitan appliances in future. Questions asked were relating to:
1. What kinds of products do you purchase?
2. What kinds of Brands you opt for?
3. For what purpose you purchase it?
4. On what factors do you purchase the products?
5. When the requirement does arise?
So for all the above questions the data has been collected and the contact details have been taken
of the concerned person and the shop owners which would help the company in analyzing the
demand pattern and to maintain further contact with the Customers.





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1.3 Scope of the Study:-
1. This study can be carried further by any other Home Appliances company to know the
Brand Presence and market potential in both Organized and Unorganized Retail sector.
2. KhaitanElectricals can extend further this study in the other parts of India.
3. Khaitan will come to know about what are the factors like colour, design, guarantee
warranty, after sale service that will affect the final purchase and can get a competitive
advantage and will have a consumer insight.
4. Khaitan can make strategy about pricing, sales and promotional offer, in house
promotion.
5. By knowing the market share Khaitan can analyse the product mix i.e. which product is
to be promoted and which product is to be discontinued.
6. Through this study Khaitanwill get a insight about what are the potential area where they
can launch new product/s.
7. Through this project Khaitan will also know about the loop hole in communication and
operational activities. And thus make product readily available in shop floor and have a
good relationship with organized retailers and PROMOTOR ( In Shop Demonstrators )





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SECTION 2
INTRODUCTION
2.1 Profile of the company:-
For decades, the Khaitan name has been synonymous with quality fans in India. With 19 offices
located across the country, Khaitan has established itself as the undisputed leader in air-
management technology. The Khaitan name is renowned for innovations as well which is
reflected in the design of pioneering product concepts such as Fresh air fans, and models in the
mini category. Now Khaitan is diversifying even further. Pumps, lights,home appliances, cables,
wires and circuit breakers have been added to Khaitan's portfolio. Good quality, great
performance and novelty in design are some of the assured features of any product from Khaitan.
As a young entrepreneur in the early 60s, S.K. Khaitan (chairman) was possessed by a burning
desire to push the limits and create new goals for himself. Men like Henry Ford, Thomas Bata,


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Soichario Honda and J N Tata who had guts to build great brands with their own name, deeply
moved him and then he was all set to create Khaitan his family name into a household word as
well. Today Khaitan is already a household name and a leading brand through out the country,
but the vision continues to grow. In 1971, Mr. S.K. Khaitan founded Khaitan electrical ltd in
kolkata. These products are manufactured at factories located in Kolkata (West Bengal),
NarsapurTaluk (Andhra Pradesh), Faridabad (Haryana) and Ponta Sahib (Himachal Pradesh).
The Faridabad factory is the Company`s R&D hub while the other three factories produce over
100,000 units of fans a month with an installed capacity to produce over 200,000 units a month.
The company is also engaged in exporting its various range of fans to countries like Africa, the
Middle East and Asia including Sri Lanka, Bangladesh, Singapore, Myanmar and Nepal.
Khaitan`s main mode of business is through its channel partners such as dealers and distributors.
The company has a network of more than 3,500 dealers and distributors across the country.






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History of Khaitan Electricals
YEAR EVENTS 1975 - The Company was Incorporated on 27th October, as a private limited
company and then converted into public limited company on 14th August, 1982. The Company
was promoted by Shri S.K. Khaitan, the chairman of the Khaitan group of companies.
- The Company's object is to manufacture electric fans, industrial and ventilating fans,
electrical household appliances electric motors, cables, electric lamps, electrical meters etc.
- The Company entered into an agreement with Khaitan Fans Pvt. Ltd. for obtaining "technical


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know-how" for the manufacture of electric fans and regulators and for using their trade mark
"Khaitan". Since then the Company is engaged in the manufacture of various types of elctric
fans and regulators.
- The Company started its first plant at Faridabad to manufacture a wide range of ceiling,
exhaust, portable, industrial and ventilating fans, FHP motor and power driven pumps. To cater
to the growing demand in Western India and overseas markets, a second plant was started at
Tarapur near Mumbai in January 1983 to manufacutre ceiling and portable fans. The first plant
was set up at the Company's own land at Faridabad while an industrial plant was acquired on
lease at Tarapur for the setting up of the second project. A third plant was set up at Noida in
1985.
1981 - 3,70,000 No. of equity and 3,000 pref. shares taken up by promoters, etc. In November,
1983, 8,80,000 No. of equity shares issued of which 1,30,000 shares were allotted to
promoters, etc. The balance 7,50,000 shares offered to the public.

1983 - The Company undertook to set up a new unit at Faridabad to manufacture a wider range
of F.H.P motors and electrical household appliances. The necessary technical know-how and
R&D facilities were available with the Company and the prototypes were under development.
Negotiations were at an advanced stage for procuring plant and machinery needed for the
project. The plant went on stream during 1984.
- The object of the public issue of capital during March, was to augment the Company's
working capital and to provide funds for normal capital expenditure other than for substantial
expansion and diversification.
- The Company undertook an expansion and diversification programme. A second plant was
put up at Bachepalli in the Medak district of Andhra Pradesh to manufacture a wide range of


21

portable and other fans and household electrical appliances.
- 1,77,500 shares issued at par of which 27,500 shares reserved and allotted to promoters,
directors, etc. The balance 1,50,000 shares offered to the public in March.
1984 - Pref. dividend raised to 15% from 1.1.1985. 12,50,000 rights equity shares offered at
par (linked to 15% debentures) in the ratio 1:1 in Oct. 1985. Additional 3,12,500 No.of equity
shares allotted to retain oversubscription. 62,500 No. of equity shares also offered at par to
employees (only 2,200 shares taken up).
- In Sept., 12,60,000 shares issued (prem. Rs 1 per share) of which 5,04,000 shares reserved
and allotted to promoters, directors, etc. The balance 7,56,000 shares offered to the public.
1985 - A new factory was set up at NOIDA, Expansion of the Tarapur factory was undertaken.
- M/s. KhaitanLefin Ltd., is a subsidiary of the Company. It ceased to be a subsidiary to the
Company during 1994-95.

- In October, in order to part finance the expansion programme and to augment long-term
resources, the Company made a rights issue of 12,50,000 No. of equity shares of Rs.10 each,
both at par, in the ratio 1 equity share for every equity share held and 1 debenture for every 10
equity shares held. Each debenture offered was linked to 10 equity shares.
- In Feb./Mar., 15,00,000 right shares offered (prem. Re. 1 per share; prop. 1:1). 3,75,000
additional shares allotted to retain oversubscription. 75,000 shares were also offered (prem. Re.
1 per share) to the employees of the Company. Only 15,700 shares taken up. The remaining
59,300 shares allowed to lapse.
1987 - The oscillating type air circulators was launched during the period and washing
machines were under final stage of development.


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- Jhunjhunu Holdings Limited became a wholly owned subsidiary of the Company during the
year.
1991 - The Window type air cooler was launched during the year and the company had decided
to manufacture both floor and window type coolers in a big way.
- Lock-out at the Faridabad plant for 71 days and reduced activities at Noida and Tarapur
plants led to the poor performance.
1992 - For better utilisation of resources, the operations of Noida works were closed and its
machinery shifted and commissioned at Faridabad factory.
1993 - The company proposed to diversify into sugar/agro based industry.
- 16,95,350 rights shares issued (prem. Rs 20 per share; prop. 1:2) only 9,82,956 share taken
up. Another 6,76,344 shares devolved on the underwriters. The balance 36,050 shares
remained unsubscribed.

- 2,000 preference shares are redeemable during 31st March, 1993/96, 500 preference shares
are redeemable during 29th March 1995/98 and 500 preference shares are redeemable during
23rd May 1995/98.
1994 - With effect from 1st April, Khaitan Fans (I) Ltd. amalgamated with the Company.
- 1000 pref. shares redeemed. 30,00,000 shares issued as fully paid up to the shareholders of
Khaitan Fan India Ltd. (KFIL) without payment being received in cash and 14,700 No. of
equity shares of Rs.10 each of the company held by KFIL were cancelled.
1995 - 96,500 preference shares are redeemable during 29th March.
1996 - 1,56,470 secured non-convertible debentures of Rs.100 each were issued to be
redeemable at par in three equal annual instalments commencing from 21st April. As per the


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scheme of arrangement Rs 2.45 lakhs of NCD were received and redeemed during the year,
making to date redemption of Rs 56.82 lakhs.
2001 - The Company equity shareholders is proposed to be held on March 10 to consider the
scheme of arrangement of amalgamation between Jhunjhunu Electricals & Finance Ltd and
Khaitan Electricals Ltd.
2005-Dlist from The Hyderabad stock Exchange Ltd(HSE) with effect from January 19, 2005.
2009- Khaitan Electricals Limited has informed that a meeting of the Board of Directors has
been held on January 30, 2009 and discuss the following agenda : 1) Resignation of Sri O.
Swaminatha Reddy as a Independent Director. 2) Resignation of Sri P. R. Agarwala as a
Independent Director. 3) Appointment of Mr. A. K. Bhattacharya as Additional Director
(Independent Director).
2010- Khaitan Electricals Ltd has appointed Sri BiswajitChoudhary as Additional Director
(Independent Director) from December 31, 2009 to the date of ensuing Annual General
Meeting of the Company.
2.2 ABOUT THE COMPANY
Khaitan (India) Limited engages in the manufacture and sale of electric home appliances
primarily underthe Khaitan name in India. It offers various domestic products, which
include fans, such as ceiling, table,pedestal, wall and cabin, fresh air, portable, and
multipurpose fans; kitchen appliances, including mixergrinders, juicers, snacker, hand
blenders and mixers, toasters, electric kettles, electric irons, and immersionheaters; lights
comprising tube lights, compact fluorescent lamps, GLS bulbs, and decorative bulbs;
pumpsconsisting of monoblock, centrifugal, jet, submersible, and mini submersible
pumps; cooler kit and FHPpumps; circuit breakers; domestic wires and cables; and air
coolers. The company also provides industrialproducts, including HD exhausts, air
circulatos, axial flows, and mancoolers. In addition, it producessugarcane, sugar, and


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molasses. Khaitan (India) Limited sells its products through a network of distributorsand
dealers. The company also exports its products to Africa, the Middle East, and other
Asian countries,including Sri Lanka, Bangladesh, Singapore, Myanmar, and Nepal.
Khaitan (India) Limited is based inKolkata, India.

Corporate Vision:






A trail-blazing mission

Today Khaitan takes its place as one of the largest fan
manufacturers in India. The winning reputation of the
Khaitan name is built on the trust of millions of customers
and the spirit of innovation kindled by my father, our
Founder and Chairman. It is my mission to take the brand
from strength to strength by tapping new markets, creating
new models and continuously upgrading quality. After all,
my name too is at stake.





Sunil K Khaitan
Vice-Chairman, Khaitan Group of Companies
A never-ending vision

As a young entrepreneur in the early 60's, I was possessed
by a burning desire to push the limits and create new goals
for myself. Men like Henry Ford, Thomas Bata, Soichairo
Honda and J N Tata who had the guts to build great brands
with their own names, deeply moved me. And I was all set
to turn "Khaitan" my family name into a household word
as well.




In my mind's eye I saw Khaitan fans in homes, offices, shops, factories and
godowns. Today, Khaitan is already a household name and a leading brand
throughout the country. But my vision continues to grow. Because everyday
there is a new horizon to conquer, a new goal to reach.

S K Khaitan
Chairman, Khaitan Group of Companies





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Values:
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


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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.

Our products are testaments to our belief in excellence
and are duly subject to the most stringent quality
standards in the world. The Replacement Bond ensures
that the customer always comes first. It is a bond
signed by the Chairman of the Company, promising to
replace any Khaitan fan with a manufacturing defect,
discovered within one year of its purchase,with a new
one. Till today, the ideagoes unmatched by any
competitor. This confidence in our fans is a result of
dedicated service, commitment to quality and careful
attention to detail.

2.1 PRODUCTS
Khaitan Electricals product lines include the following
DOMESTIC PRODUCTS:


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Home Appliances - Mixer and Grinder,Snacker or Toaster, Juicer, Electric Kettle, Hand
Blender ,Hand Mixer, Electric Iron and Imersion Rod.
Fans - Ceiling fans, Table fans, Pedestal fans, Wall fans and Fresh air fans.
Lights CFL,Tubelights, GLS lamps and Decorative Bulbs.
Pumps- Monoblock, Jet Pumps, Submersible, Centrifugal, Mini-Submersible.
Cooler Kit and FHP motors
Circuit Breakers
Wires and Cables
Air Coolers
INDUSTRIAL PRODUCTS:
HD EXHAUST
AIR CIRCULATOR
AXIAL FLOW
MANCOOLER

The trust placed by the millions of consumers have fuelled the company into introducing the
premium range of home appliances designed as a fitting accessory to new age Indias global
aspirations.
The companys competitors in this segment include Philips, MorphyRichards, and Inalsa.
FANS
Ceiling,Table,Pedestal,Wall and cabin


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Home Appliances
1. Kitchen Appliances





Juicer Mixer
Grinder





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Chirga

Mixer Grinder


Chirga

Mixer Grinder
(Model No. KMG-802)
Chirga

Mixer Grinder
(Model No. KMG-803s)
Juicer

Juice Extractor
(Model No. KJE-601)

Snacker

Electric Toaster
(Model No. KTK-101)


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Snacker

Sandwich Toaster (Model No. KST-201)
Autocrisp

Pop-Up Toaster
(Model No. KPT-101)
Ketli

Electric Kettle
(Model No. KTK-101)

Hand Blender

(Model No. KHB-401)



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Hand Mixer

(Model No. KHM-501)
2. Electric Heater

Nafiza

Automatic Dry Iron
Natasha

Automatic Dry Iron

Manisha

Automatic Dry Iron

Tarasa

Automatic Dry Iron
3.Immersion Rod



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Model Description

Unbreakable Connection Cover
Elegant Look
1 Year Guarantee

Lights
CFL
RETROFIT














NON - RETROFIT


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Tubelights
Bulbs







34

Decorative Bulbs

Cooler kit and FHP motor









35

Circuit Breakers


Wires and cables

Telephone cables



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Coaxail Cables

Pumps
Monoblock



Centrifugal


Submersible


37


Aircoolers


INDUSTRIAL PRODUCTS

HD EXHAUST








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AIR CIRCULATOR

AXIAL FLOW

MANCOOLERS




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2.4 Development of Company

YEAR EVENTS 1975 - The Company was Incorporated on 27th October, as a private limited
company and then converted into public limited company on 14th August, 1982. The Company
was promoted by Shri S.K. Khaitan, the chairman of the Khaitan group of companies.
- The Company's object is to manufacture electric fans, industrial and ventilating fans,
electrical household appliances electric motors, cables, electric lamps, electrical meters etc.
- The Company entered into an agreement with Khaitan Fans Pvt. Ltd. for obtaining "technical
know-how" for the manufacture of electric fans and regulators and for using their trade mark
"Khaitan". Since then the Company is engaged in the manufacture of various types of elctric
fans and regulators.
- The Company started its first plant at Faridabad to manufacture a wide range of ceiling,
exhaust, portable, industrial and ventilating fans, FHP motor and power driven pumps. To cater
to the growing demand in Western India and overseas markets, a second plant was started at
Tarapur near Mumbai in January 1983 to manufacutre ceiling and portable fans. The first plant
was set up at the Company's own land at Faridabad while an industrial plant was acquired on
lease at Tarapur for the setting up of the second project. A third plant was set up at Noida in
1985.
1981 - 3,70,000 No. of equity and 3,000 pref. shares taken up by promoters, etc. In November,
1983, 8,80,000 No. of equity shares issued of which 1,30,000 shares were allotted to
promoters, etc. The balance 7,50,000 shares offered to the public.


40


1983 - The Company undertook to set up a new unit at Faridabad to manufacture a wider range
of F.H.P motors and electrical household appliances. The necessary technical know-how and
R&D facilities were available with the Company and the prototypes were under development.
Negotiations were at an advanced stage for procuring plant and machinery needed for the
project. The plant went on stream during 1984.
- The object of the public issue of capital during March, was to augment the Company's
working capital and to provide funds for normal capital expenditure other than for substantial
expansion and diversification.
- The Company undertook an expansion and diversification programme. A second plant was
put up at Bachepalli in the Medak district of Andhra Pradesh to manufacture a wide range of
portable and other fans and household electrical appliances.
- 1,77,500 shares issued at par of which 27,500 shares reserved and allotted to promoters,
directors, etc. The balance 1,50,000 shares offered to the public in March.
1984 - Pref. dividend raised to 15% from 1.1.1985. 12,50,000 rights equity shares offered at
par (linked to 15% debentures) in the ratio 1:1 in Oct. 1985. Additional 3,12,500 No.of equity
shares allotted to retain oversubscription. 62,500 No. of equity shares also offered at par to
employees (only 2,200 shares taken up).
- In Sept., 12,60,000 shares issued (prem. Rs 1 per share) of which 5,04,000 shares reserved
and allotted to promoters, directors, etc. The balance 7,56,000 shares offered to the public.
1985 - A new factory was set up at NOIDA, Expansion of the Tarapur factory was undertaken.
- M/s. KhaitanLefin Ltd., is a subsidiary of the Company. It ceased to be a subsidiary to the
Company during 1994-95.



41

- In October, in order to part finance the expansion programme and to augment long-term
resources, the Company made a rights issue of 12,50,000 No. of equity shares of Rs.10 each,
both at par, in the ratio 1 equity share for every equity share held and 1 debenture for every 10
equity shares held. Each debenture offered was linked to 10 equity shares.
- In Feb./Mar., 15,00,000 right shares offered (prem. Re. 1 per share; prop. 1:1). 3,75,000
additional shares allotted to retain oversubscription. 75,000 shares were also offered (prem. Re.
1 per share) to the employees of the Company. Only 15,700 shares taken up. The remaining
59,300 shares allowed to lapse.
1987 - The oscillating type air circulators was launched during the period and washing
machines were under final stage of development.
- Jhunjhunu Holdings Limited became a wholly owned subsidiary of the Company during the
year.
1991 - The Window type air cooler was launched during the year and the company had decided
to manufacture both floor and window type coolers in a big way.
- Lock-out at the Faridabad plant for 71 days and reduced activities at Noida and Tarapur
plants led to the poor performance.
1992 - For better utilisation of resources, the operations of Noida works were closed and its
machinery shifted and commissioned at Faridabad factory.
1993 - The company proposed to diversify into sugar/agro based industry.
- 16,95,350 rights shares issued (prem. Rs 20 per share; prop. 1:2) only 9,82,956 share taken
up. Another 6,76,344 shares devolved on the underwriters. The balance 36,050 shares
remained unsubscribed.



42

- 2,000 preference shares are redeemable during 31st March, 1993/96, 500 preference shares
are redeemable during 29th March 1995/98 and 500 preference shares are redeemable during
23rd May 1995/98.
1994 - With effect from 1st April, Khaitan Fans (I) Ltd. amalgamated with the Company.
- 1000 pref. shares redeemed. 30,00,000 shares issued as fully paid up to the shareholders of
Khaitan Fan India Ltd. (KFIL) without payment being received in cash and 14,700 No. of
equity shares of Rs.10 each of the company held by KFIL were cancelled.
1995 - 96,500 preference shares are redeemable during 29th March.
1996 - 1,56,470 secured non-convertible debentures of Rs.100 each were issued to be
redeemable at par in three equal annual instalments commencing from 21st April. As per the
scheme of arrangement Rs 2.45 lakhs of NCD were received and redeemed during the year,
making to date redemption of Rs 56.82 lakhs.
2001 - The Company equity shareholders is proposed to be held on March 10 to consider the
scheme of arrangement of amalgamation between Jhunjhunu Electricals & Finance Ltd and
Khaitan Electricals Ltd.
2005-Dlist from The Hyderabad stock Exchange Ltd(HSE) with effect from January 19, 2005.
2009- Khaitan Electricals Limited has informed that a meeting of the Board of Directors has
been held on January 30, 2009 and discuss the following agenda : 1) Resignation of Sri O.
Swaminatha Reddy as a Independent Director. 2) Resignation of Sri P. R. Agarwala as a
Independent Director. 3) Appointment of Mr. A. K. Bhattacharya as Additional Director
(Independent Director).
2010- Khaitan Electricals Ltd has appointed Sri BiswajitChoudhary as Additional Director


43

(Independent Director) from December 31, 2009 to the date of ensuing Annual General
Meeting of the Company.






Laurels for quality

The untiring quest for superlative quality and innovative design has brought some laurels
both at home and abroad. They represent our commitment to quality and service.
ISO 9001 for the Kolkata and Hyderabad factories (including design)
Awards from Export Promotion Council, Govt. of India
CE Marking for our ceiling fan
The CSA certification marking, with the adjacent
Indicator: NRTL/C Canada










A landmark achievement

Khaitan carved a niche for itself in the fan industry by creating a new
market for exhaust fans with its unique KhaitanFreshair fans. It
resegmented the category by positioning KhaitanFreshair fans as the
modern-day answer to kitchen ventilation and bathroom hygiene. With
bathrooms and kitchens becoming more and more compact,
KhaitanFreshair fans have become an essential accessory for living well.
What's more, backed by modern, streamlined looks KhaitanFreshair fans
also add style to bathrooms and kitchens.





44

2.5 SWOT ANALYSIS




45


STRENGTH
1. Good brand image Nationwide.
2. Good quality of products.
3. Low price.
4. Wide range of products.
5. Consumer trustKhaitan a lot therefore is able to develop a long term relationship
with its customers.
WEAKNESS
1. Weak distribution channel.
2. Low brand awareness of some products in Market.
3. Stock out problem is always prevalent.
4. High price of the products
5. Consumers are not fully satisfied with its after sales service.
6. There is ineffective personal or impersonal communication with the customers or
middleman in the channels of distribution.
7. Sales promotion technique and various trade promotion techniques like gift offers,
discounts, dealer contest, and push money are not taken care.


46





OPPURTUNITIES
1. Huge market to tap.
2. Collaboration with advertising agencies.
3. People these days are ready to spend more appliances.
4. Adopting new technology and becoming innovative.

THREATS
1. Established competitors.
2. Price war.
2.6 COMPARITIVE ANALYSIS
Before doing comparison I have taken few products of few brands from each category of Home
Appliances and these products are having similar or almost similar attributes. The name and the
specific attributes of these products are discussed below.
Product Features:-


47

Category Name: - IRON
Khaitan Philips Morphy Richards
(Dolphin)
Inalsa pro max
Soleplates Non stick coated Gold American
heritage coated
Coated soleplate Non stick coated
Auto cut Off

Self Cleaning

Double active calc
system

Dual Voltage

Wattage 1300W 1200W 1300W 1400W

Category Name: - MIXER GRINDER

Khaitan Philips 1632 Inalsa (star Dx)
MorphyRichards(
DIVO)
Chutney Grinding

Number of Blades 4 4 4 4
Chutney Blade

Number of Jars 2 3 3 3
Chutney Jar

Material of Jars
Polycarbonate
And Stainless Steel
Plastic &
Stainless
steel
Shock proof
plastic
Body
Polycarbonate
Jar
Juicer Accessories Pulp Container
and Food Pusher
Pulp Container
Detachable pulp
Collector
Pulp Container
Stirrer Cum
Scraper

Cord Winding

Material of Lid Polycarbonate Plastic Plastic Plastic
Motor Type Universal Heavy Duty Universal Plastic
Type of Switch Piano Type
Switch
Rotary Switch
Piano Type
Switch
Rotary Switch
Power
Consumption
(Watts)
550 500

500

500

Category name: - AIR COOLER



48

Khaitan Usha Dolphin Kenstarturbocool
Voltage 230V 230V 250V
Wattage 240W 240W 240W
RPM 1350 1400 1350
Water Tank Capacity 40 Litres 32 35
Rust proof all plastic
body

Auto water level
controller

Air Throw Distance 30 ft. 32 ft. 30 ft.
Air Delivery 3000 M
3
/hr 3250 M
3
/hr 2850 M
3
/hr
Cooling Area 600 sq. ft. 600 sq. ft. 600 sq. ft.
Ice chamber














49








SECTION 3
REVIEW OF LITARATURE
The organized retail industry in India is just 3% and it is growing at a faster rate because of
strong increase in income, changing lifestyle, and demographic patterns.
In the last 10 years, a huge growth has taken place in the consumer durables retail market.
Taking the present situation into account, one can see that the demand for consumer durables has
been increasing.

The increase in demand for consumer durables retail is because of the increase in disposable
income levels in families, since most families are based on a double income these days. The rise


50

in the levels of family income has transformed the visage of the Indian lifestyle which means that
most companies view India as a prime destination for consumer durables retail.
Most of the consumer durables retail market comprises of television sets, audio systems, VCD
players, washing machines, microwave ovens, air conditioners, toasters, juicer-mixer-grinders,
food- processors and so on. Though Indian consumer durables have been increasing in demand
within the domestic market, it has tough competition from international consumer durables
companies such as Sony, Samsung, LG, Philips, Inalsa, Morphyrichards, Black and Decker, . In
fact, according to the Indian Retail Sector analysis 2008-09, the size of the Indian consumer
durables and tech led industry is valued at Rs 35,000 crore.

The performance of the consumer durables retail is critical to the growth of the retail industry
of India. There are new ventures being forayed into by the big Indian companies. For instance,
we have the Speech and Software technologies, from the Tata Group which is working towards
the launch of consumer durables in India. TATA Croma is one of its retail outlets which is
proving itself as one of the major competitors in the retail market. The Tata Group has already
collaborated with Woolworths - an Australian company.

Such steps in the consumer durables retail sector would definitely facilitate the need for Foreign
Direct Investment. However, some international retailers have already started investing in the
Indian consumer durables market, such as Metro, Spa International, and Dairy Farm.
Among Indian companies, Pantaloons has already started its saga of consumer durables retail.
The commodities would constitute color televisions, washing machines, refrigerators, and


51

microwave ovens. The chain of goods will be available in Big Bazaar, Food Bazaar, Ezone,
Home Town, Electronic bazaar, which is also owned by Pantaloons.

It is quite a challenge to maintain the consumer durables retail market in India because of the
unprecedented challenges that are attached with it. However, the consumer durables retail market
in India is here to stay because of the new age tastes of the modern consumer in India.



Consumer Buying Behavior

Possibly the most challenging concept in marketing deals with understanding why buyers do
what they do (or dont do). But such knowledge is critical for marketers since having a strong
understanding of buyer behavior will help shed light on what is important to the customer and
also suggest the important influences on customer decision-making. Using this information,
marketers can create marketing programs that they believe will be of interest to customers.
As you might guess, factors affecting how customers make decisions are extremely complex.
Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make
things more interesting. Since every person in the world is different, it is impossible to have
simple rules that explain how buying decisions are made. But those who have spent many years


52

analyzing customer activity have presented us with useful guidelines in how someone decides
whether or not to make a purchase.



BUYING - DECISION
PROCESS



53

01. Need Recognition:-
The first stage of the buyer decision process in which the consumer recognizes a problem a need.
e.g. The need can be triggered by internal stimuli when one of the persons normal needs
hangers, thirst, Sex rises to a level high enough to become a drive. The need can be triggered
by external stimuli.
02. Information Search:-
The stage of the buyer decision process in which the consumer is around to search for more
information. The consumer may simply have heightened attention or may go into active
information search. The consumer can obtain information from any of several sources. I.e.
personal sources (family, friends, and neighbours) commercial sources (advertising
sales peoples dealers, packaging, displays). Public sources (mass media etc.)
Experiential sources (handling, examining, using the product).
03. Evaluation of Alternatives:
The stage of the buyer decision process in which the consumer uses information to evaluate
alternative bounds in the choice set.
04 Purchase Decision:-
The stage of buyer decision process in which the consumer actually buys the product.
Two factors can come between the purchase intention and the purchase decision. The first factor
is attitudes of others.
The second factor is unexpected situational factor.


54

05. Post Purchase Behaviour:
The stage of the buyer decision process in which consumers take further action after purchase
based on their satisfaction or dissatisfaction.




SECTION 4
METHODOLOGY OF THE
PROJECT
4.1 MARKETING STRATEGY
A marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. A marketing strategy should be centered on the key concept that customer satisfaction
is the main goal a strategy consists of a well thought out series of tactics to make a marketing
plan more effective. Marketing strategies serve as the fundamental underpinning of marketing


55

plans designed to fill market needs and reach marketing objectives. Plans and objectives are
generally tested for measurable results.
I adopted different marketing strategies like combinations, schemes, discounts,
guarantee/warranty and highlighting product features and its various attributes. I created an
impression in the minds of our customer by creating its Brand image which can play huge role in
boosting sales.




4.2 MARKETING MIX
The basic purpose of determining the marketing mix is to satisfy the needs and wants of the
customers in the most effective manner. The Marketing Mix, originally known as The Four
Ps, is a combination of product, price, place [distribution], and promotion activities that are
applied to a particular target market. The general idea is to combine (mix) the variables to
generate an optimal, positive, and desired response in the target market
Product - An object or a service that is mass produced or manufactured on a large scale
with a specific volume of units. A typical example of a mass produced service is the hotel


56

industry. A less obvious but ubiquitous mass produced service is a computer operating
system. Typical examples of a mass produced objects are the motor car and the
disposable razor.
Khaitan has a huge variety of products ranging from appliances to fans to luminaries. The
products are imbibed with excellent features with a 2 years warranty whichKhaitan provides
along with. All these products are produced in huge volumes and are designed with the latest
technologies.
Price The price is the amount a customer pays for the product. It is determined by a
number of factors including market share, competition, material costs, product identity
and the customer's perceived value of the product. The business may increase or decrease
the price of product if other stores have the same product.
Khaitan offers a wide range of products at different prices for various classes of goods with
respect to the prices of its competitors products.
Place Place represents the location where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store as well as virtual
stores on the Internet.
Khaitan has a good distribution channel in the Markets and mainly the purchases are made in
bulk.
Promotion Promotion represents all of the communications that a marketer may use in
the marketplace.


57

In our training we promoted Khaitan products to Customers primarily by calling and by
distributing Brochures of product range.







4.3 Step of report generation:-


58


Fig 4
4.2 Types of Data and data collection:
The research includes primary as well as secondary data.
Primary data: - The primary data is collected through questionnaire, interaction with
customers, Floor Manager and PROMOTORs (In Shop Demonstrators). The primary
data, which is generated by the above methods, may be qualitative in nature (usually in
the form of words) or quantitative (usually in the form of numbers or where you can
make counts of words used).
Secondary data: - The secondary data is collected through the daily sales report. And
Internet is also one of the main sources of the data collection.
Sampling:Judgmental Sampling is used here to fill up questionnaire and to collect
primary data.
Population of Interest:- In this marketing research population of interest is the
customers visiting shopping complexes.
Sample Size: The sample size is 100


59

Demographic region: - NorthDelhi
Research design:
Descriptive research design has been used in this study. A customers perception
regarding home appliances has helped us to know about this particular segment of
Khaitan Electricals ltd. This method enabled us to a clear view of outcomes, opportunities
and even the risk-oriented areas. To further analysis all these mention effect in detail,
descriptive method has been used which gave an insight of all the possible reasons that
are responsible for the growth of this segment. To further facilitate the research,
structured as well as unstructured questionnaire, observations and consumer survey has
been done. Focus group interview is also taken.
Data Analysis Technique:
After collecting data it is being analyzed using Microsoft Excel.
4.4 Limitations of the study
Limited time was the major constraint of this study.
Sample size (which is 100) is also a limitation of this study as the sample may or may not
be the representative of the population.
Comparison of all brands was not possible because of non- availability of every brands
on the same floor.
Some consumers are not cooperative and some do not know what to say.
4.5 Observation, Analysis and Discussion


60

Before we analyzed the data we have collected through questionnaire fill up by respondent, we
will discuss the demographic factors related Respondents. Total no of our Respondents is 100.
1. Discussion about the sex ratio of our respondents.





So 55% of the respondents were Male and 45% were female.



2. Age of respondents:
AGE No of respondents % OF RESPONDENTS
Male 55
Female 45


61

BETWEEN 15-25 22 22
BETWEEN 25-35 16 16
BETWEEN 35-45 35 35
BETWEEN 45-55 20 20
ABOVE 55 7 7




So from the above pie chart we can say that the major respondent were of the age 25-
45(51%). And respondents of these age groups are the biggest consumer of Home
Appliances.

3. Occupation of Respondents:
Profession no of respondents


62

Student 18
Self Employed 20
House Wife 28
Employee 29
Retired Person 5



So 29% of the respondents is Employee, 28% is house wife and 20% is self employed. So this is
the main population who uses Home Appliances mostly. So through this wide variety of
respondents which have different will give us insight about brand presence of Khaitan electrical
and its competitors.





63

Analysis of customers Response:
1. Which Company products you prefer most?

Company Name Rating
Khaitan 33
Morphy Richards 20
Inalsa 10
Philips 37













2. Are you aware about the KhaitanHome Appliances products?




64






















3. How do you come to know about KhaitanPlatini products?


Method Name Rating
Influence Rating
Yes 34
No 66


65

Newspaper 29
T.V 38
Internet 18
Others 15
















4. Is KhaitanPlatini is successful in satisfying the customer demand?





66

































Influence Rating
Yes 36
No 64


67















5. Does celebrity endorsement influence you to buy a particular product?









Influence Rating
Yes 40
No 60


68



6. While purchasing any home appliances what factor you look into the product?











FACTOR RATING
Price 30
Quality 22
Design 10
Features 38


69


7. Which retail outlet you prefer most for the purchase any electrical appliances?















OUT LET Preference
Modern Retail Chains 12
Company Showrooms 20
Nearby Retailer 30
Authorised Dealer 38


70




8. Are you satisfied with the after sales services of Khaitan home appliances?






Influence Rating
Yes 30
No 70


71





4.6 Key Findings :
Almost majorityof Customers wanted to pay more formore features in Khaitan Products.
So company can add some more features or can launched Premium Products.


72

Some of the persons are already using Khaitan appliances and are satisfied with it.
Majority persons are not aware of KhaitanPlatini products.
Many customers have rated Khaitan products as durable and of good quality.
Majority of the customer is totally dissatisfied with the after sales service of Khaitan
appliances.











73


4.7 CONCLUSION
Looking at the survey as a whole it is very clear that many people are using Khaitan appliances.
Some people are not using its products but they are interested to use in future. Khaitan has a
good brand name with wide product range. But its services provided needs a lot of improvement
in after sales services; it can definitely increase its market share in its product range. So on this
basis I can say that there is a good market potential of Khaitan products not only in New Delhi
and NCR region but also in other parts of india in near future.













74







4.8 Recommendations:
First of all I would like suggest the more availability of Khaitan product in store. I
noticed that in most of the store Khaitan Promoters complained about the shortage of the
product. Because of shortage of the Khaitan product many customer either return or tend
to another brand.
Ensure there is widespread distribution of Product brochures in the retail stores.
The colour of Every Home appliances is of White colour, so Khaitan can bring variety in
colour, they can launch Black or Greycolour Model specially those Home appliances
which are used in Kitchen, like mixer grinder, juicer, microwaves, toasteretc because
White colour products become dirty and not so easy to maintain.
Training Should be provided to Khaitan Promoters at regular interval and at the time
of new Product launched
Khaitan should concentrate on CRM, and should maintain a data base of customer choice
and preference so that they can satisfy the need of customers.
Price factor :-
Talking about KhaitanHome Appliances, though the product has been targeted for its
premium segment but price should be of affordable range or else varieties should be
provided i.e. different range should be made available(in products).


75

Collaboration with advertising agencies can be made which will help in promoting its
products.
The most important thingh which they should do is to improve the after sales service,
which is very poor.




5 BIBLIOGRAPHY
Books: -
1. Principles of marketing by Philip Kotler and Gary Armstrong.
2. Marketing Management (12
th
edition) by Philip Kotler and Kevin Lane Keller.

Web sites:-
1. www.khaitanelectricals.com
2. www.wikipedia.org
3. http://en.wikipedia.org/wiki/Brand_management
4. http://www.marketingsciencecentre.com/page5/page20/brandimage.html
5. http://www.khaitan.com
6. http://ezone.futurebazaar.com
7. www.economictimes.com

Search engines: -
www.google.com


76

http://in.answers.yahoo.com





SECTION 6
ANNEXURE












77









Questionnaire (Customer)
To know customers perception towards Khaitan Electricals as a Brand
in Home appliances and factors influencing their buying decision during
purchase of Home appliances
Dear Respondents,
We would be grateful if you could spare some of your time to response to the following
questions needless to say your response would be treated as confidential and would be used only for the
purpose of study.
Thank you for your time,
Year 2011
1. Which Company products you prefer most?


78

Company Name Rating
Khaitan
Morphy Richards
Inalsa
Philips

2. Are you aware about the KhaitanHome products?






3. How do you come to know about KhaitanHome Appliances?







4. Is Khaitan successful in satisfying the customer demand?

Influence Rating
Yes
No
Method Name Rating
Newspaper
T.V
Internet
Others
Influence Rating
Yes


79





5. Does celebrity endorsement influence you to buy a particular product?





6. While purchasing any home appliances what factor you look into the product?





7. Which retail outlet you prefer most for the purchase any electrical appliances?






No
Influence Rating
Yes
No
FACTOR RATING
Price
Quality
Design
Features
OUT LET Preference
Modern Retail Chains
Company Showrooms
Nearby Retailer
Authorised Dealer


80


8. Are you satisfied with the after sales services of Khaitan home appliances?














PERSONAL DETAILS
Name:
Address:
Between 15-25 Between25-35
Between 35-45 Between 45-55 Above 55
Gender: Male Female
Influence Rating
Yes
No


81

Phone Number:
Marital status: Married Unmarried
Profession: Student self employed employee Retired Person
THANKS