Company profile Usha International Limited (UIL). The Group operates in four segments, namely, Consumer durables, Engines, pump sets and motors, Auto products and others. USHA international is one of the Indias known consumer durables marketing and distribution companies. It started in 1957 and marketing its products for over 50 years under the brand name USHA company majorly Manufacturing of Electric Fans and Fuel Injection Equipment. Presently USHA have Over 50 million customers. They have a Large distribution network in core categories. It is the First Indian Company to be awarded ISO 9001:2000 for Marketing practices. USHA international is a company under the flagship of Siddhartha Shriram group The Company has a dedicated team promoting the brand in large format retail outlets in urban and semi- urban commercial centres. Last year 20 new models with distinctive styles and features had been introduced in the market. Presently, the brand offers the widest portfolio of products across categories in the fan industry.
History of the company
The group was incorporated by Lala Shriram (grandfather of Siddhartha Shriram) in 1889. Over the next 100 years, the group expanded into textiles, chemicals, sugar, automobiles, engines, rayons / nylon tyre cord, automotive components, edible oils, heavy chemicals (fertilizers/ chlor caustic), engineering foundries, sewing machines, fans, home appliances and other kind of items. In 1989, the group was split amongst the descendants of Lala Shriram and the businesses that came to Siddhartha Shrirams group have been mentioned below. Siddhartha Shriram group is one of Indias renowned business groups with interests as diverse as sugar, edible oils and industrial chemicals to fans, appliances and automobile.
Consumer goods include items meant for immediate use, such as a TV dinner or a bar of chocolate, as well as consumer durablesthat is, goods with long-term use, such as video cassette recorders, computers, and washing machines. Items such as washing machines, refrigerators, and dishwashers are often called white goods because of the traditional, white enamel finish that coated many of these appliances. Other goods originally equipped with brown casings, such as stereo equipment and televisions, are sometimes referred to as brown goods. Joint ventures
Company has joint ventures with Hunter Fan Company, USA (Fans)
Janome Sewing Machine Company, Japan (Sewing Machines)
Mission of the company
Usha International's mission is to pursue excellence in all its spheres of business activity. It believes in providing reasonable returns to its shareholders and adding value to the principal's business operations through effective marketing. Thus making it one of India's leading marketing organizations. This must be achieved by meeting customer requirements, providing them satisfaction thereby building their trust in the company and its products.
Diverse product portfolio Electric Fans Home Appliances Sewing Machines Engines, Electrical motors & Pump sets. Drinking water coolers & dispensers Auto components. Generators
Diverse product portfolio SEGMENTATION Segmentation has played an important role in defining the marketing strategy. Usha entered the air circulator segment, a niche that has evolved owing to the rapid industrialization taking place in the country. The industry is expected to achieve good growth in the coming years. The pace of growth however will witness a decline as it will be impacted by macro trends in the Indian economy with real estate adversely affected and increasing interest rates reducing disposable incomes.
UILS distribution network
Sales force
Reach across India
Supply chain network
Sales management practices
Sales force
Separate sales force for 6 product lines and 3 different channels (traditional, modern retail and government sales) 16 Locational offices across India, with a Location Head to ensure capture of synergies across product lines Strong experienced middle management in charge of sales.
Reach across India
Dealerships in all urban centers with population greater than 20,000.
Penetration in important modern retail outlets (Future Group, Metro, Reliance)
Presence in rural India, contributing to around 20% of total sales.
Supply chain network
33 warehouses leased and managed in-house.
SAP enabled across all UIL locations (head office, location offices, and warehouses)
Product line of the company
Cei l i ng Fans Tabl e Fans Pedestal Fans
Wal l Fans Exhaust Fans Other Fans
Product depth
Specially built in loniser fan Gives you a pure, healthy and dust free environment
Specially designed hand-woven rattan blades Weatherproof coating on blades for both indoor and outdoor use Option of an adaptable light kit 1200 mm sweep
Remote control operation Three speed selection along with a 7.5 hour timer Motor overheat protection and unique oil reservoir lubrication for better reliability and longer life Specially designed powerful motor for Indian conditions SWOT Analysis STRENGTHS 1. Strong distribution network : Usha International Ltd. has a strong distribution network, with a presence across all metros. Separate sales teams handle each of these segments and distribution up gradation is one of their Key Result Areas. 2. Strong brand : Usha has a high brand recall in most of its product categories. The brand is associated with quality, trust and reliability. WEAKNESSES 1. As company is targeting aggressive growth, they will be short on highly skilled HR resources across the board in the near future. OPPORTUNITIES 1. Multi-brand Marketing 2. Good macro economic performance 3. Potential for home appliances 4. Potential of reaching rural India 5. Favourable government policies
THREATS 1.Threat to the straight stitch sewing machine business 2. Competition from Small Scale Sector players Distribution channel
DISTRIBUTOR DEALER SHOPS SALES TEAM ELECTRICIAN S SHOP S
ELECTRICIAN S
CUSTOMER MAJOR MARKETING STRATEGIES
Sales promotions: For the promotion of their product company time to time give some extra incentives, discounts and gifts to the dealers and shopkeepers as well as customers. Sometimes these types of methods used by distributors also.
Margin policy: Company try to give more and more margins to the shopkeepers because when a customer come to in a shop to buy a fan then it is in the hand of shopkeepers that what customer buy. Generally 70 % customer said that show me any good fan, then it is depend on shopkeeper that which he will promote. Definitely he will promote that company product who will give him more margins. Quantity discount: Company gives a quantity discount to the distributors, dealers and shopkeepers. Company said that if you purchase this much amount then I will provide you some extra fans, some cash discounts etc.
Continuous improvement: Company continuously make some improvements in his product like a new fan which is more power saver, introduce some new colors, change the weight of the fans, change the design of the fans, some decorative features etc.
Pricing policy: Company price policy is flexible. Here flexible means not this that company less or increase his product price, but when company see that some less price fans come in the market, then they immediately starts discounts on his price, start providing free gifts like watches. Cameras etc.
Competitors Usha has a lot of competitors. Some of international brands, some national brands and lot of local brands. The main competitors of Usha are as follows Bajaj, Polar, Crompton, Khaitan, Havells, Orpat, etc And in local brand Indian, Sarvotam,cyclone, etc.
Top five companies according to market share are : CROMPTON ORIENT USHA BAJAJ KHAITAN According to the above graph 51% fan market of India captured by only five companies and in 49% All remaining brands are exist. This distribution clearly says that on the basis of market share Usha have 3rd place. MARKET SHARE Company involvement
Company appointed his 3-4 members team with each distributer and they regularly keep their eyes in the happenings of market. They always are in the touch of all distributers and all dealers. They always watch the marketing process of distributers and the performance of dealers, shopkeepers and sales teams. They also conducted researches time to time to find out where the company is gaining and where the company is lacking. And if lacking then why. What is the factors due to which there competitors are able to doing well. And eventually on the basis of their findings and conclusions they suggest the company to make required changes in product features and there prices. Benefits to the company
WITH THE HELP OF THIS REPORT COMPANY WILL ABLE TO :
Judge its actual position in the market Aware with the competitors strategy. Compare his marketing strategy with competitors strategy and will able to find out the reason where they are lacking. They will able to know the weakest point of their product and there strategy. They will able to know the perception of customers and shopkeepers towards there product. They will get the idea that how we improve our market share.
Bibliography
Marketing management (published by ICFAI) Google search Wikipedia Local shopkeepers of kothrud, paud road and karve road Youtube THANK YOU