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A STUDY ON DEALER SATISFACTION OF CROMPTON GREAVES PREMIUM DECORATIVE CEILING FANS IN ERNAKULAM DISTRICT

A report on the Project Work submitted in partial fulfillment of the requirements for the MBA ( Full time ) Degree of the Mahatma Gandhi University Submitted by
Vinil Steephen P Reg . No . 31306 2011 - 13 Batch

FISAT BUSINESS SCHOOL Hormis Nagar, Angamaly Cochin 683577 July 2013

Date :- 07 /11/ 2013

CERTIFICATE

Certified that the Project Work SATISFACTION DECORATIVE OF

entitled A STUDY ON DEALER GREAVES IN PREMIUM ERNAKULAM

CROMPTON FANS

CEILING

DISTRICTinCROMPTON GREAVES LIMITED COCHIN BRANCH is a bona-fide work done by VinilSteephen P during the period June 3 , 2013 to July 31 , 2013 under my supervision and guidance.

Dean and Director FISAT Business School

Faculty Guide SABU MANGALASSERRIL ( Professor ) FISAT Business School

ACKNOWLEDGEMENT

First and foremost, I thank the lord almighty for his perpetual showers blessings, which led to the successful completion of my project. It gives me immense pleasure to present this report. I take this opportunity to express my deep sincere of gratitude to all those who have helped me throughout this organizational study. It gives me

immense pleasure to acknowledge all those who have rendered encouragement and support for the successful completion of my work. I am also thankful to Dr, P A MATHEW, (Dean & Director , MBA) FISAT BUSINESS SCHOOL for his whole hearted co-operation in bringing out this project.. I also take this opportunity to express my sincere gratitude to Mr. SABU MANGALASSERRIL, my faculty in charge who has helped me throughout this project. I would like to convey my sincere gratitude to Mr A.G. Ramesh,(Branch . MANAGER) CROMPTON GREAVES LIMITED, for giving me an opportunity to do my study in such a reputed organization. I also extend my sincere gratitude to Mr. RAJEEV S.(Engineer In-charge) for helping me in this project by giving proper directions and suggestions. Finally, I am very thankful to all my parents, friends, other staff members of Crompton Greaves Limited Cochin Branch and faculty members whose cooperation and suggestions have helped me in successful completion of this project. Above all, I would like to thank God Almighty without whose blessings this project would not have been a reality.

DECLARATION
I hereby declare that the Research Report entitled A STUDY ON DEALER SATISFACTION OF CROMPTON GREAVES PREMIUM DECORATIVE CEILING FANS IN ERNAKULAM DISTRICT is a record of bona fide work done by me in Crompton Greaves Ltd., during 03/06/2013 to 3/08/2012 under the supervision of Mr. RAJEEV S.(Engineer in-charge) CROMPTON GREAVES LTD and Mr SABU MANGALASSERRIL , FISAT BUSINESS SCHOOL, and that no part of this report has formed the basis for award of any degree, diploma, associateship, fellowship or any other similar title or recognition in any other institution.

Place : Hormis Nagar Date : VINIL STEEPHEN P

Table of Contents
Sl.No. 1 CHAPTER 1 1.1 1.2 1.3 1.4 1.5 Content EXECUTIVE SUMMARY INTRODUCTION TO THE STUDY Introduction Importance of the study Organization selected for study Objectives of the study Scope of the study 2 2 2 3 4 Page No.

CHAPTER 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 CHAPTER 3 3.1 3.2 3.3 CHAPTER 4

RESEARCH METHODOLOGY Research design Details of Data collection Research period Research instrument Sample design Tools for data analysis and interpretation Hypothesis of the study Limitations of the study INDUSTRY, COMPANY AND PRODUCT PROFILE Industry profile Company profile Product profile REVIEW OF LITERATURE 11 16 23 30 5 5 5 6 6 7 9 10

CHAPTER 5

THEORETICAL FRAMEWORK

33

CHAPTER 6 6.1 6.2

DATA ANALYSIS AND INTERPRETATION Data Analysis And Interpretation Statistical Analysis 40 66

CHAPTER 7

FINDINGS, SUGGESTIONS AND CONCLUSION 5.1 Findings 5.2 Suggestions 5.3 Conclusion 82 84 85

BIBLIOGRAPHY QUESTIONNAIRE

List of Tables
Table No. 1 2 3 4 5 6 7 8 Content Sector wise fan production Experience in selling Crompton greaves products Dealing with competitors Use of advertisements Pattern of advertisements Factors affecting dealer satisfaction. Opinion about the brand Crompton greaves Opinion about quality of Crompton greaves decorative fans Opinion about margin of Crompton greaves decorative fans 10 Opinion about promotional activities of Crompton greaves Most preferred type of promotional activity Opinion about timely delivery of Crompton decorative fans Opinion regarding employees of Crompton greaves Opinion regarding after sales service of Crompton decorative fans 15 Opinion regarding availability of Crompton decorative fans Areas for boosting premium decorative fan range. Overall opinion of dealer satisfaction of Crompton decorative fans 60 52 Page. No. 13 40 41 42 42 45 47 48

50

11 12

54 56

13 14

57 59

16 17

62 64

List of Figures/Graphs/Charts
Sl No. Content Page No.

Transformers & Reactors

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2 3 4 5 6 7 8 9 10 11 12 13 14

Switchgear Products Industrial Systems Rail Control & Coach Products Celling Fans Industrial Fans Experience in selling Crompton products Dealing with competitors Use of advertisement Pattern of advertisements Factors affecting dealer satisfaction. Opinion about the brand Compton greaves Quality of Crompton greaves decorative fans Opinion about margin of Crompton greaves decorative fans Opinion about promotional activities of Crompton greaves Most preferred type of promotional activity Opinion about timely delivery of Crompton decorative fans

24 25 26 27 28 40 41 43 44 46 47 49 51

15

53

16 17

55 57

18

Opinion regarding employees of Crompton greaves

58

19

Opinion regarding after sales service of Crompton decorative fans

60

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20 Opinion regarding availability of Crompton decorative fans 61

21 22

Areas for boosting premium decorative fan range Overall opinion of dealer satisfaction of Crompton decorative fans

63 65

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EXECUTIVE SUMMARY

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Crompton Greaves Ltd is one of the world's leading engineering corporations. Their unique and diverse portfolio ranges from transformers, switchgear, circuit breakers, network protection & control gear, project engineering, HT and LT motors, drives, lighting, fans, pumps and consumer appliances and turnkey solutions in all these areas; thus enhancing the many aspects of industrial and personal life. The company operates in four segments: Power Systems, Consumer Products, Industrial Systems and Others. The Power Systems include transformer, switchgear, turnkey projects and power Supervisory control and data acquisition systems (SCADA). The Consumer Products business supplies fans, lighting equipment (light sources and luminaires), pumps, and range of electrical household appliances and provides solutions for integrated security systems, home automation and street lighting. Dealers play a very important role in supporting the business activities of any company. For any company dealers satisfaction is a key marketing tool. It not only helps in framing the marketing strategy, but also an important part of the industry as far as its existence is concerned. Dealers play an important role in market growth, diversification of products, market modification and above all retaining the customers in their custody. In todays economy dealers face a vast array of products, brand choices prices. These situations put pressure on the companies to measure and understand new ways in which their existing dealer chain can be retained.Companies cannot ignore in designing long term growthoriented policies, strategies aimed at dealers satisfaction. The study titled A study on dealer satisfaction of Crompton greaves premium decorative ceiling fans in Ernakulam districtis about understanding the satisfaction level of Crompton greaves decorative fan dealers towards the company dealership. Considering the fact that the way in which a dealer is treated by its manufacturer has decisive influence on the dealers commitment to the brand as well as on the dealers business success, an examination of dealer satisfaction or dissatisfaction has become strikingly important during the last few years. For this purpose a questionnaire has was developed with the aim to study the Dealer Satisfaction of Crompton Greaves premium decorative fans in Ernakulam District. Another objective of this questionnaire was to identify and evaluate the various factors which influenced the dealer satisfaction with regard to Crompton greaves decorative fans to provide a result concerning satisfaction or dissatisfaction of all dealers with regard to Crompton greaves premium decorative ceiling fans..The analysis part consists of Percentage analysis,Chi Square Analysis,and use of Statistical packagesThis project gives suggestions for improvement.with respect to the findings from the study.

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CHAPTER 1 INTRODUCTION

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1.1INTRODUCTION
Every company considers dealer satisfaction as a goal and marketing tool.It is not only a decisive component in framing the marketing strategy, but also an inseparable part of the industry as far as its existence is concerned. Dealer satisfaction also plays an important role in market growth, diversification of products, market modification and above all retaining the customers in their custody. Further, companies cannot perform the competition only if they can go about winning dealers by meeting and satisfying their needs because todays dealers face a vast array of products, brand choices prices. In such an environment it is quite natural that dealers estimate which companys offer will deliver them the maximum profit or satisfaction.

1.2 IMPORTANCE OF THE STUDY

Companies manufacture products according to the consumers needs and preferences, but the products reach the final consumers through the dealers, hence it is very much essential for the manufacturers to ensure whether their dealers are able to fulfill their roles effectively and to check the performance of its dealers periodically .Understanding of these factors will help the companies to make the prompt action to make product improvements on time and hence grab more market. For doing this, company needs adequate information so that it can further improve the performance of its dealers thereby improving its sales and profit .Company can get the necessary information from the market by conducting a market research on the perception of the dealers. This research is a genuine effort to understand the dealer satisfaction levels on Crompton Greaves Premium decorative ceiling fans. This will enable the company to enhance or modify their image and value in dealers minds.

1.3 ORGANIZATION SELECTED FOR THE STUDY

The company selected for the study was Crompton Greaves Ltd. It is one of the world's leading engineering corporations. Their portfolio ranges from transformers, switchgear, circuit breakers, network protection & control gear, project engineering, HT and LT motors, drives, lighting, fans, pumps and consumer appliances and turnkey solutions in all these areas; thus enhancing the many aspects of industrial and personal life. The company operates in four segments: Power Systems, Consumer Products, Industrial Systems and Others. The Power Systems include transformer, switchgear, turnkey projects and power Supervisory control and data acquisition systems (SCADA).

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The Consumer Products business supplies fans, lighting equipment (light sources and luminaires), pumps, and range of electrical household appliances and provides solutions for integrated security systems, home automation and street lighting. The Industrial Systems include electric motors, alternators, drives, traction electronics and Crompton Greaves brought the electric fan tothe Indian sub-continent.The company earlier known as CromptonParkinson Works manufactured its first ceilingfan in 1937 at Worli, Mumbai. It later diversifiedinto table- pedestal- wall-mounted- exhaustedindustrial-fans. .The fans division has been winning the market race for over a decade.CG is the largest fan manufacturer in India, manufacturing fans like Ceiling fans, Table fans, Wall mounting fans, Pedestal fans, Exhaust fans, Industrial fans for various applications of air delivery- be it domestic or industrial. CG is a leading fan exporter to countries like USA, Italy, S. Africa, Ghana, Fiji, Singapore, Bahrain, UAE, Sri Lanka, UK, France, etc.

1.4OBJECTIVES OF THE STUDY

The objectives of the study are mainly classified into two types; Primary :

To identify the level of satisfaction of Crompton Greaves Premium decorative range fan dealers and to measure the factors influencing the dealers to deal with Crompton Greaves.

Secondary:

To identify the pattern of advertisement followed by the dealers. To find out how the dealers rate the brand Crompton greaves. To know how the dealers rate the quality of premium decorative range fan of Crompton Greaves.

To find out how the dealers rate the promotional activities carried down by Crompton greaves. To know the impact of after sales service provided by Crompton greaves and the satisfaction level of the dealers

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To know dealers opinion regarding the availability of Crompton decorative fans. To find out the areas of dealership that needs improvement with respect to Crompton Greaves decorative fans.

1.5SCOPE OF THE STUDY

Study is confined to selected dealers of Ernakulam District To know dealers satisfaction level regarding Premium Decorative range fans To know the expectations and minds of dealers The study highlights the scope for future improvements on the basis of present scale.

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CHAPTER 2 RESEARCH METHODOLOGY

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2. RESEARCH METHODOLOGY
2.1Research design The Research conducted is descriptive in nature. Questionnaires were used to collect the data through a field survey. Descriptive Research mainly involves surveys and fact finding enquiries of different kinds. The main objective of research is to describe the state of affair as it exists at present. Even though variables are beyond the researchers control he can report what is happening or happened and also discover the causes. The research design is the conceptual structure within which research isconducted; it constitutes the blueprint for the collection, measurement andanalysis of data. The data was collected from 75 dealers from Ernakulam district.A scheduled questionnaire was used to collect primary data on the otherhand; secondary data was collected using books, magazines and websites.Graphical tools including bar diagrams, pie charts and statistical tools which included percentage& chi-square analysis were used in the process ofanalysis and interpretations of the collected data.

2.2 Details of Data collection

Primary data The primary data was collected using questionnaire, the questionnaire comprised of 17 question each with open-ended questions, multiple choice questions and dichotomous questions

Secondary data The secondary data was collected through company brochures, management books, market research books, websites etc.

Area covered

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The study was conducted with the dealers in Ernakulam district who sold Crompton greaves Premium decorative ceiling fan models.

2.3 Research period

The research period was from 03/6/2013 to 05/8/2013

2.4 RESEARCH INSTRUMENT

Research instrument used for data collecting is questionnaire. Questionnaire preparation is one of the most challenging tasks of conducting a research.The questionnaire is the backbone for obtaining data during survey. The questionnaire is prepared in well-structured and non- designed form so that it is easily understandable and answerable by everyone.The type of questions included in the questionnaire are Open ended Questions, Multiple choice questions and Dichotomous question.

Open ended questions Open ended questions require the respondents to provide his/her own answer to the question. This is referred as a free response to collect the primary data.

Multiple choice question A multiple choice question requires the respondent to choose an answer from among the list provided in the questionnaire. Therespondents may be asked to choose the most apt answer for the question.

Dichotomous Question Dichotomous Questions allow the respondents to choose on from two extreme responses like Yes/No, Agree / Disagree etc.

2..5 SAMPLE DESIGN A research design is the agreement made to collect and analyze the data in a manner that aims to combine the relevance to the research purpose with economy in procedure. It constitutes the blue print for the collection, measurement and analysis of data.Sample design is the way of selecting the sample, in other words a sample design is a

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definite plan determined before any data are actually collected for obtaining a sample from the given sampling frame.

Population All dealers dealing with Crompton Greaves Premium decorative ceiling fans in Ernakulam district are coming under the population of the study.

Sample size Sample size was taken as 75 dealers from Ernakulam district.

Contact Method The method used to contact the respondents was direct personal interview. For conducting the personal interview a structured questionnaire was prepared.

Sampling Method The sampling method used for this study is non-probabilistic judgment sampling, in this type of sampling procedure, the sampling unit selected for the collecting the information is based on the judgment of the researcher. A judgment sample is a sample, which a researcher purposively draws from the population which he thinks is a representative of the population.

2.6 TOOLS FOR DATA ANALYSIS AND INTERPRETAION

The researcher carries out analysis through various statistical tools . The

statistical analysis is useful for drawing inference from the collected information. . The statistical analysis and interpretation has been using the following tools:-

2.6.1 PERCENTAGE ANALYSIS

After the data is collected , it is then recorded , tabulated and edited accurately. Here percentage analysis test is applied for analyzing and interpreting the data. It is an important test of significance developed by statistician. As a known Para metric test, It can be used to determine whether the categorical data shows dependency or if they are independent.

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2.6.2 CHI-SQUARE ANALYSIS Pearsons Chi-square test is the best known of several Chi-square test. Statistical procedureswhose results are evaluated by the reference to the Chi-square distribution. It tests a null hypothesis, that the frequency distribution of certain events observed in a sample is consistent with a particular theoretical distribution.

Chi-square test, 2 = (Oij-Eij) 2ij

Where, O= Observed frequency E = Expected frequency Degree of freedom (D.F) plays an important part in using the chi-square distribution and tests are based on it. The degree of freedom is worked out as follows. D.F = (c-1) (r-1) C represents number of columns and r represents number of rows.

2.6.3 SPSS

Statistical packages are computer programs written for statistical analysis. These programs have simplified the work of researchers who have to do statistical analysis in their research work. Many statistical packages known as SPSS, MSAT, INDOSTAT, MINITAB, EXCEL etc. are now developed for statistical analysis. These packages are useful in employing most of the statistical techniques like calculating averages, standard deviation, coefficient of correlation, regression, equation etc. and conducting statistical tests like t-test, f-test and chi-square test. SPSS for windows is a relatively

comprehensive package for use in economics, business and research.

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2.7HYPOTHESIS OF THE STUDY

Hypothesis 1

H0 : Brand name does not affect the overall satisfaction. H1 : Brand name does affect the overall satisfaction.

Hypothesis 2

H0 : Product quality does not affect the overall satisfaction. H1 : Product quality does affect the overall satisfaction.

Hypothesis 3

H0 : Credit period does not affect the overall satisfaction. H1 : Credit does affect the overall satisfaction.

Hypothesis 4

H0 : Promotional activities does not affect the overall satisfaction. H1 : Promotional activities does affect the overall satisfaction.

Hypothesis 5

H0: Timely delivery of goods does not affect the overall satisfaction. H1: Timely delivery of goods does affect the overall satisfaction.

Hypothesis 6

H0 :Employee interactions with the dealer does not affect the overall satisfaction. H1 Employee interactions with the dealer does affect the overall satisfaction.

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Hypothesis 7

H0 : After sales service does not affect the overall satisfaction. H1 : After sales service does affect the overall satisfaction.

Hypothesis 8

H0 : Availability of products during season does not affect the overall satisfaction. H1 : Availability of products during season does affect the overall satisfaction.

2.8LIMITATIONS OF THE STUDY

Any research study will be restricted in scope by particular inherent limitations that are participated by the choice of the research design, sampling procedure and respondent selection. This study has the following limitations:

Since the survey was done only in Ernakulam district the result obtained may not be taken as a universal suggestion. Quality of the information highly dependent on the knowledge of the respondents. Dealers opinion is susceptible to change. Time for the study was major constraint as the study was within a period of 8 weeks.

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CHAPTER 3 INDUSTRY, COMPANY AND PRODUCT PROFILES

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3.1 INDUSTRY PROFILE

Electric equipments
The electrical equipment industry comprises several products such as transformers, switchgears, motors and control equipment. In 2009-10, the size of the electrical equipment industry stood at Rs 525 billion. The electrical equipment industry grew at 11.3 per cent during 2009-10. The main buyers of electrical equipment are powerutilities. A typical electric equipment component has a life of 20-25 years; hence, replacement demand would incrementally add to the growth opportunities. The raw Material cost of electrical equipment manufacturers is estimated at 50-60 per cent of sales. Primary raw materials include copper, aluminum and steel. A few large players dominate the electrical equipment industry. However, several other small and mediumsized players too specialize in specific product lines. In addition, there has been substantial competition from Chinese equipments manufacturers especially in the high voltage category. The electrical equipment industry is highly working-capital Intensive as it takes 4-5 months to recover payments from SEBs, which are their major clients.

Electric fans

Electric fans are broadly categorized as general purpose fans and industrial fans. While the latter are used in factories for driving out hot or polluted air, the former includes ceiling fans, table fans, railway fans and pedestal fans etc. that are meant to provide human comfort.

An introduction to Indian Fan Industry

Though the first electric fan was manufactured in India in 1921, the industry was dominated by imports until the late forties. Import of fans was banned after independence. With this ban, the domestic manufacturing was started in the medium scale sector in 1947 around Kolkata with a unit called Jay Engineering Works. This was

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followed by orient in early fifties again in Kolkata. With the closure of the JE plant in Kolkata because of labor problems, JEs Hyderabad unit became the main manufacturing center for the company. Initially, all the components were manufactured in-house by JE. Over time, In order to reduce costs, JE started outsourcing components until only the assemblywas being done in-house. Finally, JE started procuring completed fans manufactured to theirspecifications and branding them..Starting in the mid-eighties, other brands emerged and JEs production declined resulting in excesscapacity with the component manufacturers. These component manufacturers scouted around for newcustomers, and as a result the ceiling fan technology was out in the open in Hyderabad. Over time, inaddition to the organized component manufacturers, there emerged a number of units in the unorganized sector each manufacturing one or two components such as CI castings, aluminum diecastings, blades, stators, rotors etc, or providing single services such as machining. Several assemblyunits also came up and assembly work became a cottage industry. In this way a cluster of units formanufacturing fans developed in Hyderabad. In a similar way, clusters came up around Delhi, Kolkata, Bangalore, Pune, Varanasi, and in parts of Punjab and Haryana. Cromptons unit came up in late fifties at Mumbai with a British collaboration. Other organized sector manufacturers also emerged like Khaitan and Rallies (in sixties), Polar (in seventies) etc. With the development of skills and migration of labor, the industry developed around metropolitan cities like Delhi, Mumbai and Chennai and then expanded in the small scale sector of Punjab, Haryana and around cities like Bangalore, Pune, Hyderabad, Varanasi etc. The fan industry has grown tremendously in the post-independence period. The industry has grown nearly ten times between 1950 and 1970. The production from the organized sector had a five-fold growth from 15.5 lakhs in 1970-71 to 81.4 lakhs in 1998-99. The production from the unorganized sector for the period has grown from 4.5 lakhs to 24.1 lakhs. Thus, the total production has increased from around 20 lakhs in 1970-71 to around 108.5 lakhs in 1998-99. The annual compounded growth comes to about 5.9% for both the organized and the small-scale sector, the relative share being fairly stable over the period.

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According to Usha International Limited, the marketing arm of the leading fan manufacturer, Jay Engineering Works, a total market size of Rs.1500 crores is being shared by the organized and the unorganized sectors. On this basis, the total production comes to 262.5 lakh pieces, with the organized sector accounting for 75 lakhs (at a market price of Rs.1000 per fan) and the unorganized sector accounting for 187.5lakhs (at a market price of Rs.400 per fan). According to their industry sources, the current production is of the order of 200 lakhs, with the share of unorganized sector rising to 60%. On this basis, the production comes to 80 lakh fans from the organized sector and to 120 lakh fans from the unorganized sector.

Sector wise fan production

India is a tropical country and thus fans are necessary. Therefore the Fan industry in India is well-established and has grown significantly over the years.The fan market in India consists of ceiling fans (which have dominant share), table fans, pedestal fans, wall fans and exhaust fans and manufacture special purpose fans for industrial applications. The Indian market is estimated at 2.5 million fans per month and it is growing at about10% per annum. India has large number of manufacturing plants located across the country and producing world class fans.Infact the export of fans from India has doubled in the last few years and are a testimony to the quality and development of the Indian fan Industry. The distribution of fans in India is also well developed with over 1,00,000 selling pointsfor fans, across the country. The fan industry has taken significant steps to ensure consumer satisfaction and leading brands not only provide good quality but also back this up with good after sales

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service.The organized market is dominated by players like Usha, Crompton, Orient and Khaitan.These players are facing stiff competition from the local players who compete on the basis of price. The organized players try to defend their position banking on their brandequity.Although the fan industry size is huge, the industry players are facing issues of competition from unorganized sector. Unorganized sector holds around half of the totalmarket.It has to be noted that in the early 1990s the market was in the hand of four of five players like Usha, Polar, Khaitanetc . But later regional players hit the market with low priced fans which eroded the market share of these major players. Rural sector offers huge scope for consumer durables industry, as it accounts for 70% of the Indian population. Rural areas have the penetration level of only 2% and 0.5% for refrigerators and washingmachines respectively. The urban market and the rural market are growing at the annual rates of 7%-10%and 25% respectively. The rural market is growing faster than the urban market. The urban markethas now largely become a product replacement market. The bottom line is that Indian market ischanging rapidly and is showing unprecedented business opportunity. More recently, competition in the fan industry has increased, forcing manufacturers to look foradditional ways to cut costs. Himachal Pradesh (HP) and Uttarakhand have offered tax holidays toattract industries to set up manufacturing units in these two states. Some of the entrepreneurs fromthe old clusters shifted their bases to these two states and some new entrepreneurs joined in. As aresult, now there are a few hundred manufacturers in these two states who supply fans to all leadingbrands according to their designs and desired level of quality.

STRUCTURE OF THE INDIAN FAN INDUSTRY

Today the market is divided into three segments: (1) Eight leading brands - Bajaj; Crompton-Greaves;Havells; Khaitan; Orient; Ortem; Polar; and Usha - together have a market share of about 60%. (2) About a hundred lesser known brands in the organized sector have a market share of about 25%; and (3) A large number of very small manufacturers have the remaining market share of about 15%.

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A largefraction of the demand for fans for the organized sector is met by the clusters in HP and Uttarakhand.

INTERNATIONAL MARKET
Besides meeting the domestic requirements, electric fans are also bring exported from India (table 1.2). It can be seen that with an export of nearly 6.5 lakh ceiling fans in 1999-2000, the export earning was of the order of Rs.41.6 crores (or an average realization of Rs.640 per fan). The major destinations for Indian ceiling fans are the Middle East (Bahrain i.e. Kuwait, Oman, Saudi Arabia, Yemen, United Arab Emirates etc.), African countries (Ghana, Egypt, Nigeria etc.), South and South East Asian countries (Sri Lanka, Bangladesh, Singapore etc.), and Italy, United Kingdom and United States of America. Tables 1.3 & 1.4 provide data on imports of table and ceiling fans into India in recent years. Given the tropical conditions of India, the growing population and the reducing cost of fans (particularly those from the unorganized sector), the demand is expected to grow with a major part of the growth coming from the household sector. The sources of new demand would be household sector, office sector, new buildings and replacement requirements of old fans. The estimated demand for electric fans is shown in table 1.5. With the demand estimated between 11.5 million and 14.9 million over 2001-06, prima facie there appears to be substantial opportunity for new investments, since the production by the industry was only around 10.8 million in 1998-99, with the contribution of organized industry at 8.1 million. With easy availability of finance, emergence of double-income families, fall in prices due to increased competition, government support, growth of media, availability of disposable incomes, improvements in technology, reduction in customs duty, rise in temperatures, growth in consumer base of ruralsector, the consumer durables industry is growing at a fast pace. Given these factors, a good growth is projected in the future, too.

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3.2COMPANY PROFILE

Crompton Greaves Ltd is one of the world's leading engineering corporations. The company provides end-to-end solutions, helping its customers use electrical power effectively and increase industrial productivity with sustainability. Their unique and diverse portfolio ranges from transformers, switchgear, circuit breakers, network protection & control gear, project engineering, HT and LT motors, drives, lighting, fans, pumps and consumer appliances and turnkey solutions in all these areas; thus enhancing the many aspects of industrial and personal life. The company operates in four segments: Power Systems, Consumer Products, Industrial Systems and Others. The Power Systems include transformer, switchgear, turnkey projects and power Supervisory control and data acquisition systems (SCADA). The Consumer Products business supplies fans, lighting equipment (light sources and luminaires), pumps, and range of electrical household appliances and provides solutions for integrated security systems, home automation and street lighting. The Industrial Systems include electric motors, alternators, drives, traction electronics and SCADA Since 2005, CG has embarked upon an ambitious globalization strategy, growing both organically and inorganically, drawing into its fold leading international companies such as Pauwels, Ganz, Micro sol, Sonomatra, MSE and PTS. Consequent to this globalization, CG now enjoys manufacturing bases in Belgium, Canada, Hungary, Indonesia, Ireland, France, UK and US, in addition to more than twenty manufacturing locations in India, employing more than 8000 employees worldwide with diverse nationalities and cultures. A worldwide marketing network of more than 150 representatives spans the globe, offering the entire range of CGs products, solutions and services.

CG has been aggressively investing in R&D, product certifications, product quality, productivity enhancement and operational excellence. CG`s Global R&D center, located in India, has been recognized for its innovation and received the prestigious "National Award for the Best R&D Efforts" for its outstanding achievements in the Electrical Engineering Sector in 2008. CG`s R&D strategy aligns with the Company`s Global Vision, and focuses on creating platform technologies, shrinking product development cycle time and enhancing CGs Intellectual Property capital.

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To unify global focus, all CG facilities across the world have taken actions to ensure that customers receive consistent "One World Quality", for all CG products and solutions in all parts of the world.

Thanks to its well structured and validated business model, CG is well positioned to provide its customers with technology-driven, value-added solutions, leveraging a broad product portfolio on the one hand, and enhancing the entire value-chain quality, delivery, and services on the other hand.

Company History
The origins of CG can be traced back to the pioneering work of Colonel REB Crompton, who, in 1878 founded a business at Chelmsford, Essex, England under the name of REB Crompton & Co., to engage in the manufacture and contracting of electrical equipment. REB Crompton & Co. merged with F&A Parkinson Limited, thereby establishing Crompton Parkinson Limited (CPL) in England. In 1937, CPL established its wholly owned Indian subsidiary 'Crompton Parkinson Works Ltd.', in Mumbai, along with a sales organization, 'Greaves Cotton & Crompton Parkinson Ltd.'

In the year 1947, with the dawn of the independence of India, the Company was taken over by LalaKaramchandThapar, an eminent Indian industrialist who formed the Thapar Group. In 1966, Crompton Parkinson Works Ltd and Greaves Cotton & Crompton Parkinson Ltd. merged to create Crompton Greaves Limited (CG) in its present form.

In the 1960s CG took its initial steps to revolutionize its portfolio, which till then comprised only motors and consumer products. It took a major leap in the electrical engineering segment, through the acquisition of transformer technology from Westinghouse Electric Corporation of USA, for manufacture of 400 kV transformers and aluminum wound transformers. This was followed by further expansion in the switchgear, vacuum interrupter and allied businesses. By 2005, the Company had emerged as one of the leading companies in the electrical engineering domain of India, in its three business areas of Power Systems, Industrial Systems and Consumer Products; and a serious contender in the global arena.

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CG established its international manufacturing footprint in the year 2005 by acquisition of the Belgium based Pauwels Group, which gave CG additional manufacturing facilities for Power and Distribution transformers at Belgium, Ireland, USA, Canada and Indonesia. This was followed with a series of successful acquisitions Ganz, Hungary in 2006; Microsol, Ireland in 2007; Sonomatra, France; MSE, USA in 2008 and PTS, UK in 2010 in its quest to establish a technology edge, increase its global market reach and enhance the product portfolio. The business domains of the new companies that joined the CG family, has charted the way for CG becoming a "full solutions provider" which has carved out for CG a position as a serious international player and a recognized transnational corporation.

Initially, CG`s foreign acquisitions operated their respective businesses under their individual Brand names. To integrate these new entrants into the CG family, the first step was integration of processes, systems and technologies across all the acquired companies worldwide. The next step was to articulate the one single idea that provided a common thread through all the CG Group companies. We discovered our shared philosophy as "our core strength is the value we place on relationships, and the ability to provide solutions, which, in turn, strengthen these relationships". This realisation and initiative gave birth to CG`s new Brand Identity which was launched on 15th October, 2009, succinctly conveying this shared philosophy. In May 2011, the company was awarded a contract for acting as the distribution franchisee of Maharashtra State Electricity Distribution Company Ltd (MSEDCL) for power distribution in the Jalgaon Circle (Maharashtra) for a period of ten years. In May 19, 2011, the company acquired Emotron of Sweden for an enterprise value of Rs 57.8 million there after they acquired QEI Inc of USA, a provider of automation systems and products for power transmission and distribution, for an enterprise value of USD 30 million. In 2012 Crompton Greaves Acquired leader in smart Grid Automation : ZIV Group, then again Crompton Greaves establishes new JIT manufacturing facility in Goa.AfterwardsGreaves crossed the three million mark in light diesel engines.

Whilst the Company`s name in India will continue to be Crompton Greaves, the names of all the foreign companies in the CG family start with "CG", thus establishing their lineage and uniting every company in the CG family with a common face to the internal as well as the external world, globally.

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Today, CG is a public listed company, amongst the "A" (premier) category of listings on the Bombay and National Stock Exchanges of India and its GDRs are listed on the London Stock Exchange, with over 140,000 shareholders.

Values

The ideology for CG`s businesses emanates from its 5 Values of Performance Excellence; Leading Edge Knowledge; Nurturance; Customer Orientation and Intellectual Honesty. These Values articulate the basic behaviors that every employee is expected to display in business situations and these form the core principles for all actions.

CG thrusts upon each employee to be aware of and practice the CG Values, and behave in accordance with the letter as well as the spirit of CG Values.

Brand Values When a customer thinks of a fan the chances are that the name most top of mind is Crompton. This is the real power of this fine brand, recognized and validated, time and again, by Indian consumer studies. Over the years, the powerful brand recall the identity of fans with Crompton has impacted not only dealers but also consumers. Crompton fans signify and embody trust, unimpeachable quality, reliability and a sense of belonging. The brand has been generational in character, like a family that has grown up with, inspiring and been inspired by its customers. The brand has never fallen behind trends; it has led them. The legacy of the fan that keeps working from year to year is the special bonding it has forged with its customers a tie that has only grown stronger with time.

Promotion It is believed in the advertising world that ultimately a product will sell on its own merit thus underlining the significant role of word-of-mouth. This adage is best illustrated in thepositive feedback Crompton fans generate from satisfied customers. In many pockets of the country, the brand has almost become generic to fans. To ensure that the customer is effectively updated on new product developments, the company has identified the sales counter as its first point of contact. Crompton provides product

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information leaflets and catalogues at all these locations, besides also dynamically displaying its range banners. Channel partners are trained and armed to handle every conceivable query on models,performance, maintenance, utility and value-for-price considerations. Sales promotiondrives at the regional level ensure that Crompton fans can be seen on highvisibilitylocations such as front-lit hoardings, gantries, bus and metro panels, road shows andmobile vans. The brand advertises regularly in the print and electronic media at the national as well as regional levels. It actively seeks to be seen in places of mass interest. Thus, the sports section of national dailies carried sustained advertising for Crompton fans during the first round of the IPL cricket series. Crompton Greaves is notably present at most national exhibitions for electrical goods. Prominent amongst these are Elecrama and Gridtech which provide the company highvisibility platforms to promote its wares on a large scale. In the Hannover and the Dubai Electricity Fairs, Crompton Greaves stalls with banners, display logos, glossy handbooks are must-visit destinations. At these fairs the company sends out a powerful message: it can compete with any world-class company and benchmark its products and technologies with the best in the business.

Code of Business Practices

The CG Code of Business Practices has been conceptualized considering CG`s multi segment and transnational culture, as well as the need to respect the cultures of all companies in the CG fold. The Code strives to provide guiding principles in various business situations and is the lighthouse for decision making and actions, with integrity and discipline. This Code also aims to minimize adverse consequences due to ambiguity, for CG and every employee.

CORPORATE GOVERNANCE

CG believes that its Management is accountable to its shareholders, for creating, protecting and enhancing their shareholder value, and reporting to them on the Company's performance and developments on the performance in a timely and transparent manner. All our systems institutionalize our belief that Corporate Governance protects the interest

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of all stakeholders by inculcating in all our operations and processes, the principles of transparency, integrity, professionalism and accountability.

It starts at the top with the Board of Directors comprising eminent professionals, as Independent Directors, who provide high quality, impartial advice to the Chairman, Managing Director and the various Committees of the Board. The Chairman of the Board is a non-Executive Director providing the necessary independence to the management to chart its growth strategy and promote operational excellence. Espousing the philosophy of going beyond Regulatory requirements, the number of Independent Directors on the Board far exceeds the proportion required between Independent and Non-Independent directors, prescribed by the Listing Agreement with the Stock Exchanges.

The above ideology is also well reflected through best-in-class business practices and adoption of high level ethical standards in all its business dealings. CG encourages Management independence and provides individual flexibility within an established framework of policies, standards and processes, which for clarity, are amplified in its "Rules of Procedure for Management" through which decision-making levels, with respect to the areas of importance in CG`s day-to-day operations within India, are documented.

As CG`s foreign locations progressively get integrated with CG India, the best practices of governance get progressively extended to these locations as well. To better achieve its high Governance standards at its foreign locations as well, CG has articulated "Transnational Governance Guidelines", with a view to creating a common platform for Board practices across the Company`s subsidiaries and joint ventures, and introduce an effective governance framework. These Guidelines outline comprehensive integrated approach towards Governance, which includes creation of an Authority-Responsibility Matrix for Management; Compliance Certifications; Board Compositions, Procedures, Information Flow, and Reporting Formats for Board Reviews, across the Group.

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Business Review Process

CG has a robust business review framework, to monitor the ultimate direction and implementation of the Company`s business strategies and plans. Periodically, each

business presents its strategic road map at specially constituted Board meetings. Approved initiatives form a part of the growth and business strategy of the Divisions. The performance of the businesses is reviewed at monthly meetings, through a monthly review by the Managing Director with the Management team. Operational Issues and budgets are extensively monitored through an elaborate Management Information System, with adequate focus on non-financial business enablers including process improvements and customer service

CG Global R&D Centre CG Global R&D Centre is a state-of-the-art facility which caters to the New Product Development & technology needs for its Strategic Business Units spread across the world. The Global R&D Centre is certified with ISO 9001:2008, ISO 27001:2005 and its laboratories are NABL accredited for testing & calibration as per ISO/ IEC 17025:2005. It has also bagged the Golden Peacock Award. At the center of the activities are the 12 expert centers with highly qualified manpower and a robust infrastructure driven by a strong technology process. The R&D Centre manages CG`s innovation wealth through its state of the art IPR (Intellectual Property Rights) cell. Through its research contributions, it has earned itself much recognition such as DSIR recognized R&D Centre. Recent Developments Over the decades, Crompton fans have been synonymous with eminence and dependability. To maintain this distinction Crompton Greaves strives to produce better fans every day. Its most recent high-profile initiative is the conscientious design and implementation of a Six Sigma initiative. Six Sigma is a practice designed to improvemanufacturing processes and reduce production defects leading to a measurable improvement in customer satisfaction. The company is working towards achieving the sixth level which entails bringing defects down to 3.4 parts per million opportunities.

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3.3PRODUCT PROFILE
As one of the world`s leading engineering corporations, Crompton Greaves provides end-to-end solutions, helping its customers use electrical power effectively and increase industrial productivity with sustainability. CG was established in 1937 in India; and, since then the Company has been a pioneer and has retained its leadership position in the management and application of electrical energy.

PRODUCTS MANUFACTURED
Crompton greaves unique and diverse portfolio ranges from transformers, switchgear, circuit breakers, network protection & control gear, project engineering, HT and LT motors, drives, lighting, fans, pumps and consumer appliances and turnkey solutions in all these areas; thus enhancing the many aspects of industrial and personal life. This portfolio has been structured into 3 SBUs Power Systems Industrial Systems Consumer Products.

Power Systems
Power Systems, includes the business area related to transformers, switchgear, circuit breakers, vacuum interrupters, network protection & control gear, as well as design, execution and servicing of turnkey T&D as well as sub-station projects and solutions including complete end to end Renewable projects. This is the largest business of CG which is now well entrenched throughout the world. It is a high value, high turnover business with a strong global footprint, contributing to approx. 70 per cent of CGs consolidated revenue. Its facilities are located in Belgium, Canada, Hungary, India, Indonesia, Ireland, France, UK and USA.

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Fig,3.1.Transformers& Reactors

Fig 3.2.Switchgear Products

It includes :
Transformers & Reactors Switchgear Products Instrument Transformers Power Quality Solutions T&D Systems / Engineering Solutions Protection, Control & Automation

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Services for Power Systems Transformer & Switchgear Components LV Switches & Panel Products

Industrial Systems
Industrial Systems is engaged in the business of providing solutions through the supply of power conversion equipments of a wide spectrum of High and Low Tension rotating machines (motors and alternators), inverters & converters, stampings, as well as railway transportation and signaling equipments. Industrial Systems has a very strong market presence and market leadership position in most segments in India. It also caters to overseas markets through its facilities in Hungary and through exports from India. Its product portfolio includes motors ranging from 20W to 25MW and generators ranging from 1kW to 70MW; and CG is the largest manufacturer of Low Tension motors in India offering a range of 0.18kW to 4MW in various standard and customized configurations to respond to the exacting demands of the industry.

Fig 3.3. Industrial Systems

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Fig. 3.4. Rail Control & Coach Products It includes : Motors: High / Low Voltage AC & DC Generators / Alternators AC & DC Traction Motors / Alternators / Control Electrics FHP / Commercial Motors Railway Signalling& Coach Appliations Drives & Automation Stampings & Laminations Services for Industrial Systems Products & Solutions by End Use

Consumer Products
Consumer Products, one of CG's fastest growing businesses, manufactures and markets a wide spectrum of products ranging from fans, light sources and luminaires, pumps and household appliances such as geysers, mixer grinders, toasters, irons and

41

electric lanterns. This business is the second largest SBU of CG. It also enjoys a substantial brand presence and goodwill in India.

CG's Fans and Lighting Brands have been accredited with the 'Superbrand' status. CG has the largest number of 5-Star energy efficient rated products in this segment in India, certified by Bureau of Energy Efficiency, a Government of India agency. CG is the largest manufacturer of fans in India, with offerings for all sections of the market and various applications - domestic or industrial . Although predominantly India centric, CG is a leading fan exporter to countries like USA, Italy, South Africa, Ghana, Fiji, Singapore, Bahrain, UAE, Sri Lanka, UK, France, Oman, Sudan, etc.

Fig. 3.5.Celling Fans

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Fig. 3.6.Industrial Fans It includes : Fans Appliances Lighting Pumps Home Automation Integrated SecuritySystems Wiring Accessories The Fans Division of Crompton Greaves is the market leader in India and has been so for over a decade. Its dominance of the market is comprehensive and it manufacturers fans for all sections of the market and for all applications of air delivery be it domestic or industrial. In the international market, the company is one of the leading exporters to countries like USA, Italy, S.Africa, Ghana, Fiji, Singapore, Bahrain, UAE, Sri Lanka, UK, France, Oman, Sudan, etc. Its products are known for consistent quality, low current consumption and high volume air delivery. Crompton Greaves Fans are the preferred supplier for two important Govt.

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of India departments Defense and Directorate General of Supplies and Disposal (DGSD). The Indian Standards Institute (ISI) has certified the quality of the range of Crompton Greaves fans and the brand has been awarded the ISI mark. The range is also certified by a variety of International Quality Certification boards.

Fan range includes:

Luxury Under light Fans Premium Decorative fans Star Rated Fans Standard Fans Table Fans Pedestal Fans Remote Fans Wall Mounting Fans Battery Operated Fans Domestic Exhaust Fans Speciality Fans Industrial Fans CG`s ceiling fans incorporate power and performance, safety and durability, comfort and style and offer both decorative and economy models to suit individual needs Crompton Greaves range of ceiling fans is the largest in India and encompasses everything from under-light and decorative fans to standard models in different colours and blade shapes. In addition, its table, pedestal and wallmounted fans are available in both metal and plastic and form an enviable addition to the brands' product portfolio. For the industrial segment Crompton Greaves has a range of industrial heavy duty exhaust fans, air circulators and air curtains.

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CHAPTER 4 REVIEW OF LITERATURE

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4. REVIEW OFLITERATURE

Indian Consumer Durable sector has been witnessing significant growth in recent years, helped by several drivers such as retail boom, real estate, and housing demand, greater disposable income and an overall increase in the level of affluence of a significant section of population. Apart from steady income gains, consumer financing and hire purchase schemes have become a major driver in the consumer durable industry. Indian consumer durable industry can be broadly segmented into three key groups:- 1) White Goods: Washing Machines, Air conditioners, Speakers and Audio equipment, etc. 2) Kitchen Appliances or Brown Goods: Mixers, Grinders, Microwave ovens, Fans etc. 3) Consumer Electronics: Mobile Phones, Televisions, DVD players, VCD players etc (1. Sontaki, S. N. (1999)) Anyone who has a continuing relationship with a supplier in buying and selling goods is considered a dealer. More specifically, dealers are middlemen selling industrial goods or durable consumer goods direct to customers; they are the last step in the channel of distribution. Dealers have continuing, close working relationships with their suppliers and exclusive selling rights for their producers products within a given geographic area. They drive a large portion of their sales volume from the products of a single supplier firm (2. Cateora, PR& Graham (2004)). In marketing channel relationship, researchers have revealed that a channel members satisfaction increases long-term orientation and continuity .In such cases, channel members like retailers and dealers must develop good working relationships with their suppliers in order to provide merchandise efficiently and effectively to the consumers. This is because the retailers and their suppliers are interdependent on one another and this relationship is a key to a successful channel distribution. In addition, building strong relationships between manufacturers, suppliers, distributors, retailers, and customers has become an important channel strategy in both industrial and consumer markets. Through the utilization of relationship element like relationship satisfaction, buyers and suppliers could integrate various functions spread over different areas within them which could lead to greater levels of channel trust and commitment. This effort could enhance their capability to cope with todays worldwide trend towards building closer and more integrated relationships between

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channel intermediaries and suppliers (3.Corsten, D. & Kumar, N. (2005) &

4.

Leonidou, L. C., Palihawadana, D., &Theodosiou, M. (2006)). Studies found that higher levels of supports are associated with higher levels of satisfaction in channel relationships .A study in channel relations by Gassenheimer and Ramsey (1994) found that dealers reliance on their primary supplier for quality of service support, not only contributes to the dependence imbalance, but also to their satisfaction with the relationship. In other words, dealers who receive better service support from their primary supplier consider the relationship as more satisfying. (5. Gassenheimer, J. B., & Ramsey, R. (1994)). Relationship has become an inevitable feature in todays business environment. Businesses are increasingly emphasizing on the relationships they have with their suppliers and are demanding that they adhere to high standards. The pressure to compete also makes it necessary of the development and maintenance of relationships between buyers and suppliers. In relation to that, small and large companies nowadays are fostering partnerships with suppliers as a foundation of their supply strategies (6. Theng-Lau, G., &Goh, M. (2005). A study by Abdul-Muhmin (2005) among Saudi Arabia manufacturing firms discovered that relationship satisfaction is positively related to satisfaction with product performance of the supplier marketing programme. However, there is no relationship found between pricing, delivery support and marketing communication performance on relationship satisfaction. (7Adul-Muhmin, A. G. (2002)). In a study done by Nor Azila, M.N*, Selvan, P.a and Zolkafli, H.b on globalization in the automobile industry: how supplier-dealer relationship could be effectively managed it was revealed that the dealers relationship satisfaction is contributed by supports that they get form the suppliers. Specifically, sales support from the supplier appear to develop the amount of satisfaction that the dealers perceive to obtain from having relationship with the suppliers.Perceptions of a dealer relationship satisfaction is important to suppliers for three reasons. First, suppliers who are partnering with highly customer-oriented dealers, may be able to create greater value for end customers and thereby gain a competitive advantage by maintaining satisfied relationship with the existing dealers. Second, suppliers may be able to improve their own levels of performance through trickle-up effect, which means that when dealers satisfaction improves, by virtue of the dependent dealer-supplier relationship, it will lead to suppliers sales improvement. Finally, relationship satisfaction becomes relevant because of the

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concern given to the importance of relational market base which appears to be vigorous for current business competencies, especially in the area of managing relationship between organizations. (8.Nor Azila, M.N., Selvan, P.a, Zolkafli, H.b (2011)) A study done by Norris Bruce, Preyas Desai & Richard Staelin on Trade

Promotions of Consumer Durables revealed inter-temporal effects of trade promotions as well as the effect of product durability on the promotion strategies of manufacturers. For example, manufacturers of more durable products benefit more from running trade promotions and give deeper discounts.most trade promotion models assume a) the retailers can forward buy, b) the manufacturers are not able to easily monitor the retailers sales and c) the product being sold is a non durable and thus there is no secondary market for the used product. In addition, most trade promotion models are aimed at situations where the retailer is able to carry multiple products produced by competing manufacturers. In contrast, automobiles (and many other durables) are sold through franchise dealers who can carry and display only one manufacturers line. (9.Norris Bruce, Preyas Desai, Richard Staelin, (January, 2004)) In the study of 2012 India Dealer Satisfaction with Automotive Manufacturers Index Study, MohitArora mentioned that overall dealer satisfaction is determined by examining nine factors: marketing and sales activities; product; vehicle ordering and delivery; sales team; parts; warranty claims; after-sales team; training; and support from the manufacturerJ.D. (10.Power Asia Pacific 2012). In a study Md. AslamUddin studies the dealers satisfaction of Partex Furniture Industry Limited (PFIL) in Bangladesh. The study was designed to provide manufacturers with insights about dealer opinions and attitudes to help them improve dealer relations. In order to ensure the fulfillment of the concept place in marketing mix and to survive in the competitive environment, organizations need to satisfy its dealers by providing greater benefits from all the aspects.The total number of dealer and agent outlets of this organization is about 80. Among them, 20 outlets have been selected as sample. The findings of this research showed that most of the dealers are satisfied with their principal in respect of availability of products, timeliness of product deliveries, quality, price, credit sales, allowances, and brand name. (11.Md. AslamUddin (August 2012))

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CHAPTER 5 THEORETICAL FRAMEWORK

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5. THEORETICAL FRAMEWORK Market The market consists of all the potential customers, dealers and producers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want. But the growth in the size of the companies and markets has removed many marketing managers from direct contact to the customers. The role of dealers in developing the marketing activity cannot be ignored. Several instructions are involved in discharging marketing functions. There may be either small machinery or big, good or bad, but they are on their toes to satisfy human wants. Marketing Marketing is essentially about marshaling the resources of an organization so that they meet the changing needs of customers on whom the organization depends. As a verb, marketing is all about how an organization addresses its markets. Marketing is The management process which identifies anticipates and supplies customer requirements efficiently and profitably. Marketing is a total system of interesting business activities defined to Plan, piece, promote and distribution want satisfying products & services to present and potential consumers- William. J. Stantion Marketing is the performance of business activities that direct the follow of goods and services from the producer to the consumer or user - American Marketing Association A social and managerial process, by which individuals and groups obtain what they need and want, through creating and exchanging product and value with others. Dealer Dealer is a person or firm engaged in commercial purchase and sale. Dealer may signify firms that buy or resell products at retail or wholesale basis. A producer cannot sell all his products directly to consumer, he has to depend upon intermediaries to push, off, his products. A dealer is an intermediary who helps to market a product. A dealer is one who purchase and sells products. A dealer may be a wholesaler or a retailer or a distributor or any agents. The volume of sales depends on the efficiency of a dealer who assesses the psychology of consumers and takes appropriate steps to sell a product. It is the dealer who suggests to the manufacturers the suitable media of advertisement and other promotional tools. Dealers include all activities involved in selling goods and

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services to those buying for resale or business use. Dealers buy mostly producers and sell mostly to retailers or industrial consumers Dealer Satisfaction begins with the following specific assumptions about companys relationship with the customers. The dealer service activities focus mainly on existing dealers. Some dealers are more important than others They are the assets The dealer is always specific.

The dealer needs and value should influence every aspect of the organization strategy, employee safety and performance, product and organization strategy, employee safety and performance, product and service development, sales and marketing programs, operational procedures and information and measurement system. Understanding the dealer is critical to the success of any customer focus initiative, the first step in understanding the dealers is to listen to them. A company needs to hear what its dealers are saying about its people, product, service and vision. Their information helps to develop meaningful product and service. Organizations need to listen to their dealer satisfied, dissatisfied, neutral and prospective. In the past, dealer satisfaction and service was the responsibility of a separate organization that supported the dealer primarily after the sale. Today, service is also likely to be interested with the every product a company offers. High dealer satisfaction comes from providing effective services. But giving that service is a continuous activity. It means being efficient, reliable, courteous, curing and professional every time. Dealer wants high marginal gain from manufacturers. The main objective of dealership isearning profits. Dealership business is different from other business. The peculiar feature of a dealer is dealing with one or more similar products. Dealers earn commission for goods sold from the manufacturers. The commission depends upon the value of sales both cash and credit. Dealer excepts income from business because there is some guarantee of getting more commission from this business. Dealers demand more commission from the manufactures; they cover the entire market within their locality.

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Channel Marketing Channel marketing is the means by which manufacturers work with different distribution channel members to reach consumers with their products. In addition to helping manufacturers serve customers, channels allow manufacturers to transfer a portion of their marketing costs to channel partners. Selecting appropriate channel members and marketing activities involves choosing ones that meet the manufacturer's needs and effectively serve consumers while generating profitable sales for all channel members. Much of the power in the channels of distribution has shifted to the retailer as competition for limited amounts of shelf space has intensified. Therefore, marketers must focus their attention and effort on "pushing" their products through the channels of distribution. Trade sales promotions are an important part of this strategy. Advertising The term advertising includes any paid form of non-personal communications through the media about a product, that has an identified sponsor. The use of payment differentiates advertising from public relations for which no payment is made for the time or space to convey a message. The media may include telephone directories, guides, newspapers, magazines, radio, television, direct mail, Web pages and billboards. It is normally associated with mass communication, where a broad target market is to be contacted. Types Of Advertising: Product advertising: Product advertising is aimed at enriching people to the store in order to consider specific merchandise. Product advertising will feature the promotion of merchandise that is new, exclusive, and superior in aspects of quality and design as well as creating awareness of complete assortments or special merchandise events. Markdown event advertising: This is used to create some excitement about a special period of lower cost offers for products. It is likely to be more successful if the reduction is believed to be part of a genuine sale of products which in the past had been fairly faced.

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Institutional advertising: This type of advertising is used to sell the store or shopping mall as a pleasing place to shop. With the use of institutional advertising, the store attempts to reinforce the image of one or more of the following: a leader in fashion, fair prices, wide merchandise selection, superior service or quality, a leisure experience or somewhere to enjoy visiting. Co-operative advertising: This is used where manufacturers fund part of a promotion by supplying leaflets or advertising material for use by the store. The store can add its own address to ready prepared printed material and carry out mail drops or other methods of distribution. Alternatively a manufacturer may agree to share equally the costs of an advertising campaign. Credit facilities: Business is based on bonafide good faith, confident and mutual trust. Long ago businesswas based on cash basis. But now business is based on mercantile basis (Credit basis).More over cash basis of business in also not possible for every business because of want of funds. Mercantile basis of business is globally accepted and very easier for the business people.Credit facilities to regular customer and genuine consumers will enhance the business.There some consumers who buy mostly in credit and make their payment at regular intervals. There is some agreement between the buyer and seller for a credit purchase.This agreement also covers terms of payment trade discount, cash discount etc., for thesmooth ant regular payment of cash. Credit facility system is beneficial to both the buyersand sellers. There will be tremendous improvement on both the sides. Allowing credit toconsumers is also useful for growth and expansion. Trade Sales Promotions Trade sales promotions are designed to encourage channel members to stock, display, and promote the marketer's brand. They are part of a promotional "push" strategy. Their role is to improve trade relations, gain new distributors, and obtain support for consumer sales promotions.

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Trade Sales Promotion Tactics (or Tools) Once the trade objectives and strategies are established, it is important to develop a tactical plan for the execution of these promotions. There are numerous people and tasks to be planned within a specific period to ensure that the trade promotion strategies are executed perfectly. There are a variety of trade promotion techniques manufacturers can use as incentives (it leads to price reductions) for sales representatives, wholesalers, distributors and retailers. Contests and Incentives Manufacturers use contests and special incentive programs to stimulate greater selling effort from resellers, management, and/or sales personnel. Special prizes and contests (especially travel-related contests) are available when sales reach a predetermined volume (or a stated percentage increase on the previous year's sales). The sales personnel of the intermediaries are an important target of contests or special incentives. Contests offering several prizes are much more successful than those offering only one or two big prizes. Trade Allowances The most commonly used trade promotion is some form of trade allowance. This is a discount or deal offered to the retailer or channel member to encourage them to stock, promote, and/or display a manufacturer's products. There are several types of trade allowances, including: Buying allowancesA deal or discount offered to resellers in the form of a price reduction on a product ordered during a fixed time period. As an example, a coat manufacturer may offer a 30% reduction in the cost of a coat if the retailer agrees to order and pay for the coat in the summer months. This allowance benefits the manufacturer in that it can keep the factory operating during the summer months, and it benefits the retailer in that it receives a substantial discount by ordering early. Promotional allowancesThese are discounts provided to retailers for performing certain promotional or merchandising activities in support of a manufacturer's brand. Slotting allowances or feeA one-time fee manufacturers pay retailers to stock a product and provide a slot or position in their stores. The fee depends upon the product placement

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on the shelf-shelf space just above eye level costs more than shelf space closer to the floor-and how many front-facing columns the product will occupy on the shelf. Displays and Point-of-Purchase (POP) Materials POP materials are displays designed by the manufacturer and distributed to retailers to promote a particular brand or line of products. Products often sell better when they are on display, as they are more likely to be noticed by consumers. POP displays advertise a product at its point of purchase. They are important promotional tools as they help a manufacturer obtain more effective in-store merchandising of their products. The manufacturer employs a price discount called a display allowance to obtain trade support from retailers for their displays. Marketers use a variety of POP materials, including on-premise signs, window displays, display racks, display signs, wall displays, posters, banners, audiovisual materials, and vending machines. These materials can be as small as a 2? by 3? sign card on a store shelf or as large and expensive as a major cosmetic manufacturer's counter in a department store. Keep in mind, that the lower the level of customer service, the more essential POP material becomes. These displays are particularly important in self-serve outlets.POP materials are effective because they provide customers with a reminder just prior to making their purchase decision and a finishing touch to a well-integrated MC program. Most importantly, when the creative concept and message of the marketing communication tools are repeated in an in-store display, sales increase significantly. Dealer Loaders These are an incentive or a gift given to a wholesaler or retailer in return for purchasing a particular quantity of a product during a trade sales promotion. Often the incentive is a POP display or attached to a POP displaythese types of dealer loaders are permanent displays the store can continue to use after the end of the promotion. The objective of dealer loaders is to gain the attention of the trade and encourage support of the trade sales promotion.

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Gifts Some reputed companies will provide a number of gifts to its dealers and distributors. Their gifts are allowed to improved sales in all areas. Dealers will be much motivated when gifts are offered by manufactures. Gifts are a special kind of incentives, which will pursue the dealers to increase their sales. The main objectives of offering gifts to dealer and distributors are to enhance or improve sales to the maximum level. The competition can be easily managed when gifts are offered to dealer, the number of types of gifts is as follows. Value of sales in Rupees. Value of sales in units Seasonal gifts.

Gifts to dealers will play a greater role in marketing. This will motivate the full dealers to do better and this will also encourage better sales.

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CHAPTER 6 DATA ANALYSIS AND INTERPRETATION

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6. DATA ANALYSIS AND INTERPRETATION

6.1. EXPERINCE IN SELLING CROMPTON GREAVES PRODUCTS EXPERIENCE IN SELLIG CROMPTON PRODUCTS Sl.No. 1 2 3 4 Criteria Less than 3 years 4 7 years 8 10 years Above 10 years Total Inference: This table shows the experience of the dealers in dealing the Crompton Greaves products. 18.7% of the dealers have experience in dealing Crompton products for 4 to 7 years. Experienced dealers are up to 9.3%. 41% of the dealers are having experience above 10 years and the rest 17.3% have less than 3 years experience with Crompton products. Fig. 6.1.EXPERIENCE IN SELLING CROMPTON PRODUCTS No. of respondents 13 14 7 41 75 % of respondents 17.3 18.7 9.3 54.7 100

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6.2. DEALING WITH COMPETITORS DEALING WITH COMPETITORS Sl. No. 1 2 Total Criteria Yes No No. of respondents 63 12 75 % of respondents 84 16 100

Inference: Most of the dealers deal with the competitors also. This is in order to satisfy their various customers who have different brand and product preferences. Most of them are dealing in companies like Havells,Orient, Usha, Bajaj, Khaitan, Polar and many other local brands. Many of them are dominated by Crompton Greaves. Fig. 6.2 DEALING WITH COMPETITORS

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6.3. USE AND PATTERN OF ADVERTISEMENTS

6.3.1 USE OFADVERTISEMENT USE OFADVERTISEMENT Sl. No. 1 2 Criteria Yes No 75 No. of respondents 16 59 % of respondents 21.3 78.7 100

6.3.2PATTERN OF ADVERTISEMENTS PATTERN OF ADVERTISEMENTS Sl. No. 1 Criteria Independently by the shop 2 In collaboration with the company 3 Solely by the company 75 100 59 78.7 8 10.7 No. of respondents 8 % of respondents 10.7

Inference: These tablesdisplay the use of advertisements by the dealers of Crompton Greaves decorative fans and the pattern in which they have used it. It can be seen that majority of the dealers ie. Almost 78.7% had no advertisements for the decorative fan ranges, these dealers display a pattern of advertisement which is done solely by the company. 21.3 % of the dealers mentioned the use of advertisements of which the half of them does their advertisements independently by the shop and the other half does advertisements in

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collaboration with the company. The common forms of advertisements seen are Bill boards, Posters,Catalogues etc.

Fig. 6.3 (a )USE OF ADVERTISEMENT

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F1g. 6.3 (b)PATTERN OF ADVERTISEMENTS

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6.4. FACTORS AFFECTING DEALER SATISFACTION. FACTORS AFFECTING DEALER SATISFACTION. Sl. No. 1 2 3 4 5 6 7 8 9 Total Criteria Promotion Schemes Company Policy Margin Brand Name Availability Timely Delivery Product Quality Price Credit Period No. of respondents 3 0 8 24 5 4 23 6 2 75 % of respondents 4 0 10.7 32 6.7 5.3 30.7 8 2.7 100

Inference: The table shows the factors affecting dealer satisfaction.Most of the dealers mentioned Brand name(32%) and Product quality(30.7) as their main reason for continuing as a Crompton greaves dealer. Those dealers who mentioned margin as a main factor were 10.7 %. 8 % of the dealers mentioned Price as a major factor. Percentage of dealers who mentioned availability of the products as a major factor were 6.7 & 5.3 % of dealers said Timely delivery as their main factor. 4% of dealers mentioned Promotion schemes as a factor affecting dealer satisfaction and the rest 2.7 % dealers mentioned Credit period as the major factor for their satisfaction.

63

Fig.6.4 FACTORS AFFECTING DEALER SATISFACTION

64

6.5. OPINION ABOUT THE BRAND CROMPTON GREAVES OPINION ABOUT THE BRAND CROMPTON GREAVES Sl. No. 1. 2 3 4 5 Total Inference: Majority of the dealers had the best remarks for the brand Crompton Greaves 33.3 and 41.3% of the dealers mentioned the brand Crompton as very good and Good respectively. 21.3 % of the dealers mentioned the brand to be Average. No dealer mentioned the Brand to be Poor or Very poor. Fig. 6.5 OPINION ABOUT THE BRAND CROMPTON GREAVES Criteria Very Good Good Average Poor Very Poor No. of respondents 25 34 16 0 0 75 % of respondents 33.3 45.3
21.3

0 0 100

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6.6. OPINION ABOUT QUALITY OF CROMPTON GREAVES DECORATIVE FANS

OPINION ABOUT QUALITY OF CROMPTON GREAVES DECORATIVE FANS Sl. No. 1. 2 3 4 5 Total Criteria Very good Good Average Poor Very Poor No. of respondents 31 31 13 0 0 75 % of respondents 41.3 41.3 17.3 0 0 100

Inference: Majority of the dealers said the quality of Crompton Greaves decorative fans is the best in market today. 41.3 % mentioned it to be very good. 41.3 % of them said its quality to be good. The rest 13 % of the dealers mentioned the Quality of Crompton greaves decorative fans to be Average. No dealers mentioned the quality of the fans to be below average.

66

Fig. 6.6QUALITY OF CROMPTON GREAVES DECORATIVE FANS

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6.7.OPINION

ABOUT

MARGIN

OF

CROMPTON

GREAVES

DECORATIVE FANS
OPINION ABOUT MARGIN OF CROMPTON GREAVES DECORATIVE FANS Sl. No. 1. 2 3 4 5 Total Criteria Very good Good Average Poor Very Poor No. of respondents 4 15 44 12 0 75 % of respondents 5.3 20 58.7 16 0 100

Inference : Most of dealers mentioned the margin from Crompton Greaves decorative fans to be having moderate level of margin. 44% of dealers said their margin to be average.4% of dealers mentioned their margin to be very good and the rest 15% of the dealers said their margin from Crompton premium decorative fans to be good.

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Fig. 6.7OPINION ABOUT MARGIN OF CROMPTON GREAVES DECORATIVE FANS

69

6.8.OPINION

ABOUT

PROMOTIONAL

ACTIVITIES

OF

CROMPTON GGREAVES

OPINION ABOUT PROMOTIONAL ACTIVITIES OF CROMPTON GGREAVES Sl. No. 1. 2 3 4 5 Total Criteria Very good Good Average Poor Very Poor No. of respondents 12 21 30 12 0 75 % of respondents 16 28 40 16 0 100

Inference: Mostof the dealers were satisfied by the present promotional activities of Crompton. 40 % of thedealers mentioned it to be average. 28 percent of the dealers mentioned it to be good, 16 % mentioned it to be very good and 16 % of them rated it as poor.No dealer said it to be very poor.

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Fig. 6.8 OPINION ABOUT PROMOTIONAL ACTIVITIES OF CROMPTON GREAVES

71

6.9. MOST PREFERED TYPE OF PROMOTIONAL ACTIVITY MOST PREFERED TYPE OF PROMOTIONAL ACTIVITY Sl. No. 1. 2 3 4 Total Criteria Discount Gift/Prize Offers Others No. of respondents 41 10 22 2 75 % of respondents 54.7 13.3 29.3 2.7 100

Inference : 54.% of the dealers said Discount as their most preferred type of promotion. 29.3 % of the dealers said offers were their most preferred type of promotion and 13.3 % dealers selected Gifts or Prizes as their preferred type of promotion.2.7 % of the dealers suggested some other methods of promotion such as dealer meets, bonuses, surprise schemes etc.

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Fig.6.9. MOST PREFERED TYPE OF PROMOTIONAL ACTIVITY

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6..10. OPINION ABOUT TIMELY DELIVERY OF CROMPTON

DECORATIVE FANS
OPINION ABOUT TIMELY DELIVERY OF CROMPTON GREAVES

DECORATIVE FANS Sl. No. 1. 2 3 4 5 Criteria Highly Satisfied Satisfied Average Dissatisfied Highly Dissatisfied Total No. of respondents 36 29 4 6 0 75 % of respondents 48 38.7 5.3 8 0 100

Inference: Most of the dealers were highly satisfied by the timely delivery of Crompton decorative fans of which 48 % were highly satisfied, 38.7 % rated it satisfied and 5.3% of them marked it Average. Thought 8 % of them were dissatisfied none of the dealer were highly dissatisfied.

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Fig.6.10. OPINION ABOUT TIMELY DELIVERY OF CROMPTON

DECORATIVE FANS

6..11.

OPINION REGARDING EMPLOYEES OF CROMPTON

GREAVES
OPINION REGARDING EMPLOYEES OF CROMPTON GREAVES Sl. No. 1. 2 3 4 5 Criteria Highly Satisfied Satisfied Average Dissatisfied Highly Dissatisfied Total No. of respondents 37 28 7 3 0 75 % of respondents 49.3 37.3 9.3 4 0 100

75

Inference: Majority of the dealers were highly satisfied by employees of Crompton. More than 49 % of the dealers were highly satisfied, More than 37 % of the dealers were satisfied and 9.3 percent f the dealers rated it average. Though no dealers were highly dissatisfied 4 % of the dealers were found dissatisfied

Fig.6.11. OPINION REGARDING EMPLOYEES OF CROMPTON

GREAVES

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6.12. OPINION REGARDING AFTER SALES SERVICE OF CROMPTON DECORATIVE FANS

OPINION

REGARDING

AFTER

SALES

SERVICE

OF

CROMPTON

DECORATIVE FANS Sl. No. 1 2 3 4 5 Criteria Highly Satisfied Satisfied Average Dissatisfied Highly Dissatisfied Total No. of respondents 29 29 14 3 0 75 % of respondents 38.7 38.7 18.7 4 0 100

Inference : Majority of the dealers found to be happy with the aftersales service of Crompton greaves . 38.7 % were Highly satisfied and 38.7 % of them were found satisfied/ 18.7 % of the dealers found the aftersales service to be average and 4 % of them were dissatisfied but none of them were highly dissatisfied.

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Fig. 6.12 OPINION REGARDING AFTER SALES SERVICE OF CROMPTON DECORATIVE FANS

6.13. OPINION REGARDING AVAILABILITY OF CROMPTON DECORATIVE FANS OPINION REGARDING AFTERSALES SERVICE OF CROMPTON

DECORATIVE FANS Sl. No. 1 2 3 4 5 Total Criteria Very Good Good Average Poor Very Poor No. of respondents 26 28 14 7 0 75 % of respondents 34.3 37.3 18.7 9.3 0 100

78

Inference: 37.3 % of the dealers mentioned that the availability of the Crompton greaves fans is good. More than 34 % of the dealers mentioned that the availability is Very good and 18.7% of them said that the availability was average. Although none of the dealers mentioned about very poor availability 9.3% of them mention it to be poor.

Fig6.13.

OPINION

REGARDING

AVAILABILITY

OF

CROMPTON

DECORATIVE FANS

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6.14. AREAS FOR BOOSTING PREMIUM DECORATIVE FAN

RANGE.
AREAS FOR BOOSTING PREMIUM DECORATIVE FAN RANGE. Sl. No. 1 2 3 4 5 Criteria Promotional Sales Follow up Service Credit facility Total No. of respondents 20 15 9 22 9 75 % of respondents 26.7 20 12 29.3 12 100

Inference: Most of the dealers ( 29.3% ) mentioned that Service can be a bit more early, 26.7 % of the dealers found that more importance should be given to promotional activities. 20 % of the dealers mentioned a help in Sales can improve the Premium Decorative fan range. 9% of the dealers mentioned the need for help in credit facility and rest 12 % specified follow up as a way for improving the Premium decorative range.

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Fig.6.14.AREAS FOR BOOSTING PREMIUM DECORATIVE FAN

RANGE.

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6.15. OVERALL OPINION OF DEALER SATISFACTION OF CROMPTON DECORATIVE FANS OVERALL OPINION OF DECORATIVE FANS Sl. No. 1 2 3 4 5 Criteria Highly Satisfied Satisfied Average Dissatisfied Highly Dissatisfied Total No. of respondents 25 39 10 1 0 75 % of respondents 33.3 52 13.3 1.3 0 100 DEALER SATISFACTION OF CROMPTON

Inference : Majority of the dealers were happy with their dealership with Crompton greaves. No dealer was highly dissatisfied by their Crompton dealership. 33.3 were Highly Satisfied with the dealership and 52 % of them were satisfied. More than 13 % of the dealers gave an average rating for the dealership and 1.3% of the dealers were found dissatisfied.

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Fig.6.15. OVERALL OPINION OF DEALER SATISFACTION OF CROMPTON DECORATIVE FANS

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6.2STATISTICAL ANALYSIS

Hypothesis 1

H0 :Brand name does not affect the overall satisfaction. H1 : Brand name does affect the overall satisfaction.

Crosstabs

Case Processing Summary Cases Valid N DealerSatisfaction * Brandname Percent 75 100.0% N 0 Missing Percent 0.0% N Total Percent 75 100.0%

DealerSatisfaction * BrandnameCrosstabulation Count Brandname 3 2 DealerSatisfacti 3 on 4 5 Total 0 5 6 5 16 4 0 2 24 8 34 5 1 3 9 12 25 1 10 39 25 75 Total

Chi-Square Tests Value df Asymp. Sig. (2-sided)

84

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

14.053a 13.470 1.493 75

6 6 1

.029 .036 .222

a. 6 cells (50.0%) have expected count less than 5. The minimum expected count is .21.

Symmetric Measures Value Approx. Sig. Phi Nominal by Nominal N of Valid Cases Cramer's V .306 75 .029 .433 .029

a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis.

Inference: Since the Asymp. Sig. (2-sided) value is more than the cut off value (0.05) , therefore the null hypothesis is H0 accepted and the H1 is rejected i.e Brand name does not affect the Dealer satisfaction.

85

Hypothesis 2

H0 :Product quality does not affect the overall satisfaction. H1 : Product quality does affect the overall satisfaction.

Crosstabs

Case Processing Summary Cases Valid N Overalsatsfn * Quality 75 Percent 100.0% N 0 Missing Percent 0.0% N 75 Total Percent 100.0%

Overalsatsfn * Quality Crosstabulation Count Quality Average Poor Average Overalsatsfn Satisfied Highly Satisfied Total 8 2 13 15 11 31 16 12 31 39 25 75 0 3 Good 0 5 Very Good 1 2 1 10 Total

Chi-Square Tests Value 5.502a df Asymp. Sig. (2-sided) Pearson Chi-Square 6 .481

86

Likelihood Ratio Linear-by-Linear Association N of Valid Cases

6.225 1.755 75

6 1

.398 .185

a. 7 cells (58.3%) have expected count less than 5. The minimum expected count is .17.

Symmetric Measures Value Phi Nominal by Nominal Cramer's V N of Valid Cases a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. .192 75 .481 .271 Approx. Sig. .481

Inference: Since the Asymp. Sig. (2-sided) value is more than the cut off value (0.05) , therefore the null hypothesis H0 accepted and the H1 is rejected i.eProduct quality does not affect the Dealer satisfaction.

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Hypothesis 3

H0 :Credit period does not affect the overall satisfaction. H1 : Credit does affect the overall satisfaction.

Crosstabs

Case Processing Summary Cases Valid N Overalsatsfn * Credit 75 Percent 100.0% N 0 Missing Percent 0.0% N 75 Total Percent 100.0%

Overalsatsfn * Credit Crosstabulation Count Credit Poor Average Good Very Good Poor Average Overalsatsfn Satisfied Highly Satisfied Total 1 3 2 3 9 0 4 20 3 27 0 2 15 13 30 0 1 2 6 9 1 10 39 25 75 Total

Chi-Square Tests

88

Value 24.634a 22.167 9.706 75

df

Asymp. Sig. (2-sided)

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

9 9 1

.003 .008 .002

a. 12 cells (75.0%) have expected count less than 5. The minimum expected count is .12.

Symmetric Measures Value Phi Nominal by Nominal Cramer's V N of Valid Cases a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. .331 75 .003 .573 Approx. Sig. .003

Inference: Since the Asymp. Sig. (2-sided) value is less than the cut off value (0.05) , therefore the null hypothesis H0 rejected and the H1 is accepted i.e Credit period does affect the Dealer satisfaction.

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Hypothesis 4

H0 :Promotional activities does not affect the overall satisfaction. H1 : Promotional activities does affect the overall satisfaction.

Crosstabs

Case Processing Summary Cases Valid N Overalsatsfn * Promotion Percent 75 100.0% N 0 Missing Percent 0.0% N Total Percent 75 100.0%

Overalsatsfn * Promotion Crosstabulation Count Promotion Poor Average Good Very Good Poor Average Overalsatsf n Satisfied Highly Satisfied Total 3 3 12 20 5 30 14 7 21 2 10 12 39 25 75 1 5 0 5 0 0 0 0 1 10 Total

Chi-Square Tests

90

Value 35.548a 34.909 19.359 75

df

Asymp. Sig. (2-sided)

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

9 9 1

.000 .000 .000

a. 10 cells (62.5%) have expected count less than 5. The minimum expected count is .16.

Symmetric Measures Value Phi Nominal by Nominal Cramer's V N of Valid Cases a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. .397 75 .000 .688 Approx. Sig. .000

Inference: Since the Asymp. Sig. (2-sided) value is less than the cut off value (0.05) , therefore the null hypothesis H0 rejected and the H1 is accepted i.e Promotional activities does affect the Dealer satisfaction.

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Hypothesis 5

H0 Timely delivery of goods does not affect the overall satisfaction. H1 : Timely delivery of goods does affect the overall satisfaction.

Crosstabs

Case Processing Summary Cases Valid N Overalsatsfn * Tmlydelivry Percent 75 100.0% N 0 Missing Percent 0.0% N Total Percent 75 100.0%

Overalsatsfn * TmlydelivryCrosstabulation Count Tmlydelivry Poor Average Satisfied Highly Satisfied Poor Average Overalsatsf n Satisfied Highly Satisfied Total 2 0 6 1 2 4 20 5 29 16 18 36 39 25 75 1 3 0 1 0 4 0 2 1 10 Total

Chi-Square Tests Value df Asymp. Sig. (2-sided)

92

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

30.146a 23.662 15.916 75

9 9 1

.000 .005 .000

a. 12 cells (75.0%) have expected count less than 5. The minimum expected count is .05.

Symmetric Measures Value Phi Nominal by Nominal Cramer's V N of Valid Cases a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. .366 75 .000 .634 Approx. Sig. .000

Inference: Since the Asymp. Sig. (2-sided) value is less than the cut off value (0.05) , therefore the null hypothesis H0 rejected and the H1 is accepted i.e Timely delivery of goods does affect the Dealer satisfaction.

93

Hypothesis 6

H0 Employee interactions with the dealer does not affect the overall satisfaction. H1 Employee interactions with the dealer does affect the overall satisfaction.

Crosstabs

Case Processing Summary Cases Valid N Overalsatsfn * Employees Percent 75 100.0% N 0 Missing Percent 0.0% N Total Percent 75 100.0%

Overalsatsfn * Employees Crosstabulation Count Employees Poor Average Satisfied Highly Satisfied Poor Average Overalsatsf n Satisfied Highly Satisfied Total 2 0 3 3 1 7 17 5 28 17 19 37 39 25 75 0 1 0 3 1 5 0 1 1 10 Total

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Chi-Square Tests Value 19.004a 19.916 13.264 75 df Asymp. Sig. (2-sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 9 9 1 .025 .018 .000

a. 12 cells (75.0%) have expected count less than 5. The minimum expected count is .04.

Symmetric Measures Value Phi Nominal by Nominal Cramer's V N of Valid Cases a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. .291 75 .025 .503 Approx. Sig. .025

Inference: Since the Asymp. Sig. (2-sided) value is less than the cut off value (0.05) , therefore the null hypothesis H0 rejected and the H1 is accepted i.e Employee interactions with the dealer does affect the Dealer satisfaction.

95

Hypothesis 7

H0 : After sales service does not affect the overall satisfaction. H1 : After sales service does affect the overall satisfaction.

Crosstabs

Case Processing Summary Cases Valid N Overalsatsfn * Aftrsales 75 Percent 100.0% N 0 Missing Percent 0.0% N Total Percent 75 100.0%

Overalsatsfn * AftrsalesCrosstabulation Count Aftrsales Poor Average Satisfied Highly Satisfied Poor Average Overalsatsf n Satisfied Highly Satisfied Total 2 0 3 6 2 14 18 9 29 13 14 29 39 25 75 1 0 0 6 0 2 0 2 1 10 Total

Chi-Square Tests

96

Value 41.068a 22.057 12.699 75

df

Asymp. Sig. (2-sided)

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

9 9 1

.000 .009 .000

a. 11 cells (68.8%) have expected count less than 5. The minimum expected count is .04.

Symmetric Measures Value Phi Nominal by Nominal Cramer's V N of Valid Cases a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. .427 75 .000 .740 Approx. Sig. .000

Inference: Since the Asymp. Sig. (2-sided) value is less than the cut off value (0.05) , therefore the null hypothesis H0 rejected and the H1 is accepted i.e After sales service does affect the Dealer satisfaction.

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Hypothesis 8

H0 : Availability of products during season does not affect the overall satisfaction. H1 : Availability of products during season does affect the overall satisfaction.

Crosstabs

Case Processing Summary Cases Valid N Overalsatsfn * Availablty Percent 75 100.0% N 0 Missing Percent 0.0% N Total Percent 75 100.0%

Overalsatsfn * AvailabltyCrosstabulation Count Availablty Poor Average Good Very Good Poor Average Overalsatsfn Satisfied Highly Satisfied Total 0 5 1 1 7 1 3 9 1 14 0 2 21 5 28 0 0 8 18 26 1 10 39 25 75 Total

98

Chi-Square Tests Value 50.165a 44.007 27.294 75 df Asymp. Sig. (2-sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 9 9 1 .000 .000 .000

a. 11 cells (68.8%) have expected count less than 5. The minimum expected count is .09.

Symmetric Measures Value Phi Nominal by Nominal Cramer's V N of Valid Cases a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. .472 75 .000 .818 Approx. Sig. .000

Inference : Since the Asymp. Sig. (2-sided) value is less than the cut off value (0.05) , therefore the null hypothesis H0 rejected and the H1 is accepted i.e Availability of products during season does affect the Dealer satisfaction.

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CHAPTER 7 FINDINGS, SUGGESTIONS AND CONCLUSION

100

7.1FINDINGS Almost all dealers of Crompton greaves Premium decorative fans are satisfied with their dealership. It can be seen that more than half of the dealers in Ernakulam district had experience as a Crompton greaves dealer for more than 10 years. Many dealers were electrical retailers Majority of the dealers dealt with competitors of Crompton Greaves such as Havells, Orient, Usha, Bajaj, Khaitan, Polar and other brands such as Almonard,,Impexetc ,indicating that there is high market competition. It is found that majority of the dealers consider the Brand name and Product Quality of Crompton Greaves fans to be the highest available in the market. It is found that majority of the dealers have not used any form of advertisements for promoting decorative fan range and depended highly on advertisements by the company alone. Very few dealers are using advertisements on their own consisting of posters and hoardings. Margin of Crompton greaves decorative fans is considered to be average compared to other brand. Almost 12 % of the dealers have indicated dissatisfaction with the present margin. Majority of the dealers consider the current promotional activities done for Crompton greaves decorative fans as average and a few even consider them to be poor. Most of the dealers consider discount more than offers , gifts and prizes Majority of the dealers are highly satisfied by the availability and timely delivery of Crompton decorative fans , even when the demand is high Majority of Dealers were impressed with the employees of Crompton greaves that they come into contact with. Although dealers think the aftersales service of Crompton greaves fans are excellent few dealers mentioned that Servicing of the complaints should be made more fast

101

20 % of the dealers mentioned a help in Sales can improve the Premium Decorative fan range. 9% of the dealers wanted better credit periods. Through statistical analysis the factors that affecting dealer satisfaction were found as credit period, promotional activities,timely delivery of goods,employee interaction with the dealer, after sales service and availability of products. Dealers mentioned existence of duplicates in the market. Dealers mentioned the presence of price difference in the market Dealers are uninformed regarding few of the models available within the premium decorative range.

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7.2SUGGESTIONS
As some dealers have mentioned their dissatisfaction with the after sales servicing of Crompton Greaves fans, facilitating speedy spot servicing is suggested. There are only very few exclusive dealers for Crompton greaves in Ernakulam district, therefore having exclusive dealership can be helpful for the company. Majority of the Crompton Greaves dealers depend solely on company

advertisement for making sales which mainly consist of hoardings and bill boards .Encouraging the dealers to advertise the Crompton Greaves fans in collaboration with the company by word of mouth and Point-of-purchase displays etc. can make positive differences in the sales. 12% of the dealer mentioned that margin received is average compared to other brands. This could be due to the price difference that exist in the market.Hence, the existence of price differences in the market is to be checked and controlled by the company by maintaining strict price standardization. Dealer meets, trade allowances and push money can be good promotional techniques to boost the morale of the dealers. The existence of duplicates in the market should be checked and dealt with using methods such as holograms, Unique bar coding etc. Few dealers have mentioned their displeasure with the availability of the fans during seasons of high demand. A suitable method should be adopted to forecast the dealers demand. For example opening an online portal showing the current stock levels with each dealer can be an effective solution. Having a separate website where the Crompton Greaves fan dealers can enter using a separate user name and password thereby creating a platform for them to interact among each other and the company alike can be a cost effective way to maintain the dealers morale. .

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7.3. CONCLUSION
In todays economy all manufacturers need to pay attention on how to buildstrong long-term relationships with their dealers chain..For a manufacturing company, in order to satisfy its customers, it is highly important to satisfy its dealers, as they are the direct customers to them. Establishing satisfaction as the ultimate goal, is like the other ultimate goals of business pursuit of higher profits or shareholders wealth. Perfect dealer service or satisfaction is one that meets the combined need satisfaction. The Study on dealer satisfaction of Crompton greaves premium decorative ceiling fans in Ernakulam district helped in understanding the level of satisfaction of fan dealers.Another purpose of the study was to measure the factors affecting the dealer satisfaction.The study helped in having a better understanding about Premium decorative fan market in Ernakulam district and about the dealer network of Crompton greaves fans. Most of the dealers have good opinion about the brand and quality of Crompton greaves. Majority of the dealers are impressed by the timely delivery and employeesinteractionson part of the company.The study revealed that satisfaction of Crompton Greaves premium decorative fans dealers is good. Statistical analysis of the hypotheses revealed that overall satisfaction of the dealers were affected by the factors such as credit period, promotional activities, timely delivery of products, employees interaction with the dealer, after sales service and availability of products during seasons of high demand.Study revealed few areas that need continuedattention from the company such as advertising,sales, credit facilities, better promotion, speedy serviceetc. These factors can be crucial for further success of the company. Understanding the needs of the dealers beforehand and making adequate efforts to meet those needs on time are crucial for the growth and success of Companys business. Dealer satisfaction is a systemized service that involves the entire organization. This study helped in measuring and understanding those factors which affected dealer satisfaction and to estimate the overall satisfaction of Crompton greaves Premium decorative fan dealers.

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BIBLIOGRAPHY Books
Principles of marketing,PhilipKotler& Gary Armstrong Marketing research -Principles applications & Cases, D.D. Sharama& G.C. Beri Statistical tools, S.P. Gupta Research methodology,C.R. Kothari Basic marketing, William G.Zikmund, Michaell d. Amico.

Websites
www.google.com www.cgglobal.com
www.jdpower.com

Journals
1. Sontaki, S. N. (1999). Marketing Management - In the Indian background (1/e). New Delhi: Kalyani Publishers, 209. 2. Cateora, PR& Graham (2004), International Marketing, McGraw-Hill. 3. Corsten, D. & Kumar, N. (2005) 'Do suppliers benefit from colloborative relationships with large retailers? An Empirical investigation of efficient consumer response action' 4. Leonidou, L. C., Palihawadana, D., &Theodosiou, M. (2006) 'An integrated model of the behavioural dimensions of industrial buyer-seller relationships', European Journal of Marketing 5. Gassenheimer, J. B., & Ramsey, R. (1994) 'The impact of dependence on dealer satisfction: A comparison of reseller-supplier relationships', Journal of Retailing 6. Theng-Lau, G., &Goh, M. (2005) 'Buyer-seller relationship in PCB industry', Supply Chain Management: An International Journal, vol. 10, no. 4, pp. 302-312

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7. Adul-Muhmin, A. G. (2002) Effects of suppliers' marketing program variables on industrial buyers' relationship satisfaction and commitment, Journal of Business & Industrial Marketing. 8. Nor Azila, M.N., Selvan, P.a, Zolkafli, H.b (2011) Globalization in the

automobile industry: how supplier-dealer relationship could be effectively managed? 9. Norris Bruce, Preyas Desai, Richard Staelin, (January, 2004) 10. J.D. Power Asia Pacific 2012 India Dealer Satisfaction with Automotive Manufacturers Index Study 11. Md. AslamUddin (August 2012) Factors Responsible to Dealers Satisfaction: A Study on Partex Furniture Industries Ltd. World Journal of Social Sciences

Vol. 2. No. 5.

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APPENDIX

107

QUESTIONNAIRE A study on dealer satisfaction of Crompton Greaves Premium decorative ceiling fans in Ernakulam District Name : Address :

1. How long you are dealing with the Premium range of Crompton Greaves products? 1-3 years 4-7 years 8-10 years above 10 years

2. Are you dealing with Premium range decorative fans of other companies? Yes No

If Yes, specify BRANDS__________________________________

3. Which factor enables you to be the dealer of Crompton Premium decorative ceiling products?

Promotion Schemes Availability period

Company Policy

Margin Price

Brand Name Credit

timeliness of delivery

Product quality

4. How do you feel about the brand Crompton Greaves? Very Good Good Average Poor Very Poor

108

5. How do you feel about Quality of Premium decorative ceiling fans of Crompton? Very Good Good Average Poor Very Poor

6.Do you have any advertisements for boosting the volume of sale of the Premium range fans? Yes No

7.Mention the Pattern of the advertisements? Independently by the shop Solely by the company 8. How do you rate the Profit margin from Crompton greaves premium decorative ceiling fans against other brands . Very Good Good Average Poor Very Poor In collaboration with the company

9. What do you feel about credit period given by Crompton for the Premium Decorative ceiling fans? Very Good Good Average Poor Very Poor

10. How do you rate the Promotional Activities given by Crompton? Very Good Good Average Poor Very Poor

11. What type of promotional activity do you prefer with Crompton products? Discount (Specify).. Gift Prize Offers Others

109

12. How do you feel about the timely Delivery of the Premium decorative ceiling fans of Crompton? Highly Satisfied Highly Dissatisfied Satisfied Average Dissatisfied

13. What do you feel about the employees dealing with you in Crompton? Highly Satisfied Highly Dissatisfied Satisfied Average Dissatisfied

14. What are the factors that you expect from Crompton for boosting the Premium Decorative ceilingfans ? Promotional Credit Facility Others____________________________ Sales follow-up Scheme Service

15. What do you feel about after sales service given by Crompton? Highly Satisfied Highly Dissatisfied Satisfied Average Dissatisfied

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16.How is the availability of premium decorative ceiling fans during seasons? Very Good Good Average Poor Very Poor

17.What is your opinion regarding the dealership network of Crompton? Highly Satisfied Highly Dissatisfied Satisfied Average Dissatisfied