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CONTENTS

Title of the Section

Executive Summary
Project Objective
Introduction
Company Overview
Area Of Business
Air Conditioning Industry
History Of Air Conditioners
Methodology
Analysis
Product
Price
Place
Promotion
Suggestions & Recommendation

Conclusion

Executive Summary
The project deals with the Study into the marketing mix of Voltas in the Mumbai AirConditioner Market. The report consists of the primary data obtained from the dealers.
The attributes, which defined the data, were Shelf Space, Window Display, Prices
Given, P.O.P. Material, Dealer Preference, General Positive and Negative Attributes
for various Brands, Dealer Interface, and Finance Schemes Offered.
In all I visited 50 outlets spread all over Mumbai (includes dealers and retailer), who
dealt in air conditioner I also interviewed 44 customers at showrooms across Mumbai.
Data thus obtained was then grouped and analyzed, after which the inferences were
drawn.
I observed that L.G. was undoubtedly the market leader. In Mumbai AC market LG
has the highest penetration, as it is available in almost 75% of the outlets while
Hitachi is present in only 64% of the outlets. L.G. also leads in the other categories
like the window display (40%), shelf space (50%) and POP (40%) while Voltas has
the share of 7%, 28% and 34% in the respective categories. Although Voltas is No.2
brand in Mumbai region but it has the highest corporate customer or we can say,
institutional sales in comparison to other AC brands.

Of the outlets visited, 44% claim L.G. to be the top Brand whereas Voltas has 21% of
the outlets claim it to be the top Brand. The strengths of L.G. lie in its low price and
good quality whereas Hitachis strengths lie in its superior quality and post sales
service. Whereas, on the negative side the claim that LG is not as durable as other
brands & has a life expectancy less than other brands like Voltas, General etc.

For Voltas the most spoken about negative is its high price & poor after sales service.
Next there was the classification of the demonstrator/salesperson for the outlets
visited. Based on this data collected, I recommend that customer awareness about
Voltass star rating mode has to improve, so that it will be a lot easier to convince the
customer that price difference, which works against Voltas, can be negated in the
electricity bills.

Project Objective
This project was carried out in Mumbai during the period of 4th May 2009 to 30th June
2009. The project would also include the study competitor activities and the relative
position of Voltas, when it comes to retail level activities.
The following are the heads, which were given prominence during the primary data
collection.
Information on the display of Voltas A.C.s vis--vis competition:
Under this head the objective was to understand the display allocation for air
conditioners in the outlets and also making a note of the shelf space and the window
display space allocated to each of the brands. Also, making a note of how many
Voltas units are on display and what is the strength of the competitors. The main focus
when considering the competitors was on L.G., Samsung, O-General, Hitachi, Carrier,
Godrej, Blue Star and others including Videocon, Kenstar, Onida Whirlpool and
National.

Display and use of support material:


The support material in the case is Carton Display, Poster, Sticker, Dangler, Leaflet,
Dealer Certificate, Working Window Display, Glow Signs and stands. The objective
here is to verify whether all the support material is in place. How much support is
given to the various brands at each outlet? The objective here is to check the
effectiveness of the support material in increasing the brand visibility, awareness and
in addition there would be a study of the various promotional activities by the
competition to woo the customers and success rates of these promotional activities.

Information on the performance of the Demonstrators/Salesperson:


Under this head the focus will be on the activities carried out by the
demonstrators/Salesperson on the shop floor. Also, there will be rating of the
demonstrators on three aspects- 1) Communication skills 2) Technical Knowledge and
3) Enthusiasm shown. Apart from this there will also be a study of which brand the
demonstrators/salespersons are pushing, what they have to say about Voltas. There
will the top preference of demonstrators from every outlet which will give an idea of
who is pushing what and what are the most talked about positives and negatives of
Hitachi.

Cleanliness of the displayed product:


A damaged or unkempt display unit will create a bad impression of the brand. Also,
the approach to the unit on display has to be tidy and easy in addition to the clean
surroundings of the display unit to serve the purpose. As a result the condition in
which the display units are is also one of the objectives of the project.

Prominence given to Voltas Air Conditioners vis--vis competitors:


For a brand to sell there is a lot of nitty-gritty that goes into it like the prominence
given to a brand. This can be adjudged by the location of display on the shop floor, the
lighting, the space provided around where the product is centered, on shelves
the level at which the display unit is kept governs the visibility. All these factors
combine together to

Dealers Level Activities:


Dealers are the main part for any product that can create and damage the image of
a product. So this project also includes the study at dealer level which includes the

points like; which kind of Voltas AC is doing well in the market, what are the issues
which they are facing from product and company side, also what are the suggestions
and recommendation from their side to increase the sales of the products.

Voltas Ltd. is one of the major players in the highly competitive A.C. market today
with the market share of 16 %, which is overall second in the market today. This
project primarily aims to understand the 4 Ps i.e Product ,Price ,Place & Promotion
of Voltas air conditioners at SSD level, Dealer level & Customers Level.

Introduction
Indian Consumer durables market used to be dominated by few domestic players like
Godrej, Voltas, Allwyn and Kelvinator. But post liberalization many foreign
companies have entered into Indian market dethroning the Indian player and
dominating Indian market the major categories in the market REFRIGRATOR, AIR
CONDTIONERS AND WATER COOLERS.

India being the second largest growing economy with huge consumer class has
resulted in consumer durables as the fastest growing industries in India. LG &
SAMSUNG the two Korean companies have been maintaining the lead in the
industries with LG being leader in almost all the categories.
Consumer durables major Voltas Limited will invest nearly Rs 500 crore in India this
year in research and development, brand-building and other marketing initiatives.
The company, having a turnover of Rs 500 crore and market share of 17 per cent, is
investing Rs 500 crore on brand-building and other marketing initiatives and around
Rs 500 crore on research and development, besides launching new platforms in
information technology and related areas,
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer
durables market, accounting for no less than 90% of the market. Then, after the
liberalization, foreign players like LG, Samsung, Whirlpool, Daewoo, and Aiwa came
into the picture. Today, these players control the major share of the consumer durables
market.

Consumer durables market is expected to grow at 8-13% in 2009-2010. It is growing


very fast because of rise in living standards, easy access to consumer finance, and
wide range of choice, as many foreign players are entering in the market.
With the increase in income levels, easy availability of finance, increase in consumer
awareness, and introduction of new models, the demand for consumer durables has
increased significantly. Products like washing machines, air conditioners, microwave
ovens, color televisions (CTVs) are no longer considered luxury items. However,
there are still very few players in categories.
Consumer durables sector is characterized by the emergence of MNCs, exchange
offers, discounts, and intense competition. The market share of MNCs in consumer
durables sector is 65%. MNC's major target is the growing middle class of India.
MNCs offer superior technology to the Consumers whereas the Indian companies
compete on the basis of firm grasp of the local market, their well-acknowledged brand
name, and hold over wide distribution network. However, the penetration level of the
consumer durables is still low in India & there is a yet a huge untapped rural market
waiting to be exploited.

Company Overview
Voltas Limited is a Public Limited Rs 2500 crore multi divisional company, engaged
in the air conditioning and engineering business. It was incorporated on 6th September
1954. Tata Sons Ltd and Volkart Brothers, a Swiss Company operating in India since
1851, promoted this company and hence the name VOLTAS.
Voltas, A Tata Group Company is India's premier air conditioning and engineering
services provider. It provides engineering solutions for a wide spectrum of industries
in areas such as heating, ventilation and air conditioning, refrigeration, climate
control, electro-mechanical projects, textile machinery, machine tools, mining and
construction, materials handling, water management, building management systems,
pollution control and chemicals. Voltas have capability in the manufacture of
room/split air conditioners, industrial air conditioning and refrigeration equipment,
water coolers, refrigerators, visi-coolers, freezers, forklift trucks and large water
supply pumps. All these products bear the stamp of state-of-the-art automated
manufacturing plants resulting in consistently high quality and reduced costs.
Company is partnered with international companies such as LG Electronics and
Samsung of Korea and Fedders International of USA for 'manufacture only' alliances
producing low cost, high quality refrigerators and room air conditioners.

The companys promoters, Tata Sons hold around 28 per cent of the shares in the
company. Foreign investors and the public hold around 21 per cent share each, while
domestic financial institutions and non-promoter corporates hold the balance.
Voltas has recently gone through a comprehensive restructuring exercise, aimed at
bringing the core to the fore. This exercise, conducted between 1997-1998 and 20012002, comprised of redefining the business focus of Voltas as being an engineering

services company. Accordingly it involved reorganizing the companys business


portfolio, exiting non-core businesses and exploiting unproductive assets to generate
revenues, rightsizing the organisation through focused voluntary retirement schemes,
aggressive cost cutting and financial re-engineering.

Areas of business
The company mainly operates in the following areas:
Company involved mainly into the design and manufacture of industrial equipment,
management and execution of air conditioning and public work projects, sourcing,
installation and servicing of technology-based systems, and representation of global
technology leaders, serving diverse industrial sectors and applications. Voltas'
operations have been organized into three independent business-specific clusters. Each
of these has its own facilities for market coverage and service to customers. Namely:

Unitary
Cooling
Product
s
Engineering products &
Services
Electro-Mechanical Projects &
Services

Electro-Mechanical Projects & Services

Electrical, Mechanical, HVAC & Refrigeration Solutions

Electrical, Mechanical & HVAC Solutions(International)

Water Management & Treatment

Engineering products & Services

Textile Machinery

Mining & Construction Equipment

Machine Tools

Materials Handling Solutions

Unitary Cooling Products for Comfort & Commercial Use

Cooling Appliances

Commercial Refrigeration

Air Conditioning Industry


Air Conditioners give respite from summer heat and have become a necessity. They have
made our lives comfortable. After a hard day's work you return home and switch on your
air conditioner and let the fresh air relax you and rejuvenate your spirits. Once again you
are ready to shop out with your family or help your spouse in household work or spend
some quality time with your kids. India you desperately need an air conditioner. In this
scorching heat it is only an air conditioner that can give you some respite and make you
livelier and energetic. Earlier buying an air conditioner was not easy. It was very costly
and middle class families can't afford but now purchasing an air conditioner in India is
no more tough and expensive. There are various companies offering air conditioner like
LG, Hitachi, Samsung, Onida, Godrej, Sanyo, Cerrier, Bluestar, Voltas, Amtrex, O
General etc. These companies have various offices all over India. They have their own
store and shops selling air conditioner of all types.
Air conditioner comes in various sizes and shapes. Some air conditioner does not even
look like an air conditioner especially ones offered by LG. Their surfaces are too good
looking and look like a beautiful scenery. There are room air conditioners, split air
conditioners, car air conditioners, ductless air conditioners, air ceiling conditioner mount
system etc.

History of Air Conditioners


Air conditioning as we know it today is a rather new technology although different form
of cooling air and dehumidifying the air has been around for centuries. The ancient
Romans used aqua duct water to circulate through the walls of the wealthiest homes. This
is just one example of ancient air conditioning. The Chinese were also were also obsessed
with cooling the air through water and wind. They used various methods to cool their
interior buildings and stay cool during the hot months. In the 1800's one man came close
to

inventing

what

is

similar

to

modern

day

air

conditioning.

In 1820 British Inventor Michael Faraday discovered that ammonia could chill the air
when compressed and liquidized and then allowed to evaporate. In 1841, John Gorrie, a
medical doctor discovered that he could use compressor technology to create ice to cool
his patients rooms in Florida. This discovery gave Gorrie the great aspiration of inventing
the first air conditioning unit. He came very close. His first pro type leaked and was
unsuccessful. He secured funding and his patent was approved in 1851. His funding
partner died and he lost the money to see his dream realized. He later died in 1855 and
with him his vision of indoor air conditioning died as well for the next 50 years.

The commercially available of air conditioning applications started based on the need to
cool air for industrial processes than for personal comfort. The first electrical air
conditioning was invented by Willis Haviland Carrier in the year 1902. He was also
known as the Father of Modern Air Conditioning. His invention was designed to improve
the manufacturing process of a printing plant. By controlling the temperature

and humidity of the plant, the processes were made more efficient as the paper size and
the ink alignment were consistently maintained.

The Carrier Air Conditioning Company of America was established by him to meet the
demand of better productivity in the workplace. Today, Carrier Corporation is the biggest
air conditioner manufacturer and marketing corporation in the world in central air
conditioning.

The term air conditioning was first coined by Stuart W. Cramer of Charlotte, North
Carolina in 1906. Cramer was trying to create ways to add moisture to the air in his textile
plants. Cramer used the term Air conditioning in a papers filed to the patent office for his
invention of a water conditioning unit which was required to control the humidity in
textile plants. Willis Carrier took the term air conditioning and put it into his companies
name as he used evaporative cooling to provide a cooling effect in the air.
The first air conditioners proved to be hazardous to humans health when the toxic gases
leaked. The use of ammonia, methyl chloride and propane. These toxic, flammable gases
tended to leak causing fatal results. In 1928 Thomas Midgley, Jr. was the first to create an
air conditioner that used Freon. This was found to be much safer for humans but had
disastrous effects to the environment.

Modern day air conditioning has improved over the years. The emphasis these days are on
energy conservation and efficiency. The modern day air conditioner can come with all
sorts of bells and whistles and most importantly is that it is available to just about
everyone. The modern day air conditioning is affordable to everyone.

METHODOLOGY
Research methodology is considered as the nerve of the project. Without a proper wellorganized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey was to
collect appropriate data, which work as a base for drawing conclusion and getting result.

Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods
used in the context of a research study and it explains why a particular method has been
used in the preference of the other methods.

Research design:
Research design is important primarily because of the increased complexity in the market
as well as marketing approaches available to the researchers. In fact, it is the key to the
evolution of successful marketing strategies and programmers. It is an important tool to
study buyers behavior, consumption pattern, brand loyalty, and focus market changes. A
research design specifies the methods and procedures for conducting a particular study.
According to Kerlinger, Research Design is a plan, conceptual structure, and strategy of
investigation conceived as to obtain answers to research questions and to control variance.
The first step of the project was to collect information regarding the distributors, dealers
and sub dealers with multi product/ multi brand portfolio which included products like
A.C. Televisions, Refrigerators and Washing Machines for the whole Mumbai region
(also including the sales and services that are exclusive dealers for A.C).

For this purpose I took the help of various newspapers like T.O.I., Economic Times,
Midday and Business Standard & also Just Dial. All the ads of Consumer Durables, which
appeared in these papers, were noted down and the necessary details like the name of the
shop, the phone number and the location of the shop was fed into the computer in an excel
format and used as the database during the course of the survey.
The data was then structured and the whole Mumbai Region was divided into three Zones.
Then I set about the job of deciding upon the format of the Questionnaire that would be
used while collecting data from the retailers/dealers. The initial format was then tested for
whether all required information was obtained from the showrooms after which the
required changes were made to get the optimum results.

After freezing the format I had to decide on the role that would enable us to get the
complete information that I was looking for. I had various options:

To go to the outlets as personnel from Voltas.

To go to the outlets as Management Student.

To go to the outlets disguised as customers.

I realized during the format the best and most unbiased Information was provided to me
when I visited the outlets as a Management Student. Hence a call was made by me
to visit the outlets as a Management Student so that the purpose of getting complete and
unbiased information is served.

Data collection methods:


After the research problem, we have to identify and select which type of data is to
research. At this stage; we have to organize a field survey to collect the data. One of the
important tools for conducting market research is the availability of necessary and useful
data.

Primary data: For primary data collection, we have to plan the following four important
aspects.

Sampling

Research Instrument

Secondary Data - The Companys profile, journals and various literature studies are

important sources of secondary data.

Data analysis and interpretation

1.

Questionnaires

2.

Pie chart and Bar chart

Questionnaires:
This is the most popular tool for the data collection. A questionnaire contains question that
the researcher wishes to ask his respondents which is always guided by the objective of
the survey.
Pie chart:
This is very useful diagram to represent data, which are divided into a number of
categories. This diagram consists of a circle of divided into a number of sectors, which are
proportional to the values they represent. The total value is represented by the full create.
The diagram bar chart can make comparison among the various components or between a
part and a whole of data.

Bar chart:
This is another way of representing data graphically. As the name implies, it consist of a
number of whispered bar, which originate from a common base line and are equal widths.
The lengths of the bards are proportional to the value they represent.

Preparation of report:
The report was based on the analysis and presented with the findings and suggestions. The
sample of the questionnaires is attached with the report itself.

Sampling Methodology:
Details of the sampling methodology, I have made questionnaire.

No. of questions in questionnaires for Product:

09

No. of questions in questionnaires for Price:

08

No. of questions in questionnaires for Place:

06

No. of questions in questionnaires for Promotion:

05

No. of questions in questionnaires for Customers:

12

No. of Dealers interviewed:

50

No. of Customers interviewed:

44

Sample unit:
Dealers, Employees, Professionals,
Businessmen, House wife,
Working women, Students.

Analysis
PRODUCT & SERVCE:
On the whole the data collected shows that under the various heads taken to conduct
the survey Voltass performance overall is a mixed bag or I can say that it was 75:25
of (good: bad). Finally I landed up to five most popular brands who are ruling the AC
market; Voltas, LG, Samsung, Carrier and Hitachi. On the basis of these brands the
further study has been carried out.

From the survey conducted we can determine that the overall presence of Voltas is
equal to the other four brands, which would primarily mean that the reach of the brand
to the people is satisfactory. Brands like LG and Samsung doing well because of their
overall branding due to their presence in other consumer product like LCD,
refrigerators, Washing Machines etc.

But, on the counts of Shelf Space and Window Display Voltas is lagging behind LG
and Samsung thus depriving the potential customers the first hand experience of the
functioning of the AC which might also mean that the brands which have more
presence on the shelf might capture these customers.

The POP material which is quite quintessential when it comes to convincing the
customer about the Brands features, providing it distinctness from the host of other
competitors and in establishing the Brand Identity in the minds of the customers. In
the survey it was found that Voltas is in the second position after LG when it comes to
the POP material in the outlets but this is not the complete picture the presence of LG
in terms of the support material.

Continuing about the support material, the best support any brand can have is the
word of mouth preference that the dealers or the salespersons give to the customers as
only what they push has the maximum chance of selling. In the outlets visited it was
found that Voltas although second, again lags behind LG by some margin.

While speaking about there preferences the dealers or the salespersons invariably give
the attributes of the brand that they are pushing and the negatives of others that they
advise the customers against. The good news here is that the most spoken about
positive attribute for Voltas (the good quality attribute) as against the most spoken
about positive attribute of LG (the low price attribute). So, we can safely assume that
the positive attributes of Voltas are spoken about by the dealers/salespersons.

But here again there is a spoiler, which are the negative attributes of the Brands that
the dealers/salespersons use to dissuade the customer buying a particular brand. While
dealers claimed LG to be less durable, there were outlets that claimed that Voltas is
priced too high. The result of which is that all the good work of the positive attributes
is nullified.

The best and the biggest international brands are here in India but the irony if it all:
where is the after-sales-service? So integral to a brand, so critical for its success and
so taken for granted in developed markets! In India, after sales service is, for want of a
better description, the pits. So whats stopping the second best air conditioning
companies from pulling out all the stops when it comes to providing the best service?
Do customers expect for too much? Or is it that in India they dont really care. Brand
Equity fanned out to MNC as well as Indian consumer durable companies, stockiest

and dealers, analysts and market researchers to get a feel of whats really keeping after
sales from being used as a cutting edge marketing tool in pushing products across
categories.

Customers support following the purchase of a product or service. In some cases,


after-sales service can be almost as important as the initial purchase. The
manufacturer, retailer, or service provider determines what is included in any warranty
(or guarantee) package. This will include the duration of the warranty traditionally one
year from the date of purchase, but increasingly two or more years maintenance
and/or replacement policy, items included/excluded, labor costs, and speed of
response. In the case of a service provider, after-sales service might include additional
training or helpdesk availability. Of equal importance is the customer's perception of
the degree of willingness with which a dealer deals with a question or complaint,
speed of response, and action taken.

Types of Air Conditioners offered by Voltas:


Now when we talk of air conditioners, there are a number of makes and models
available in the market. So as to say that there is a variety of sizes and types of ACs
available for cooling rooms of different sizes. And in order to choose the perfect air
conditioner for your room it is always advisable to have some extra knowledge about
the types of AC and their purpose as to which one is best for what kind of room.
With the variety of air conditioners available in the market, it is very difficult to
choose the most suitable AC for our home or office. And if we dont have a clue about
air conditioner then it adds to our own disadvantage. There are mainly five types of air
conditioner:
1) Window mounted: These are air conditioners that are usually fixed through the
windows, which have been designed typically for double hung windows. And it is one
of the most commonly used air conditioners as this is best for cooling a single room
for the simple reason that these are easy to install, cheaper and works with almost all
the wiring system of your home. The price range varies from Rs. 12,000 to Rs. 27,
000 on an average for room size the range varies from 10 meter square - 84 meter
square.

2) Split Air conditioner: This type of air conditioner is best suited for rooms whose

area is up to 60 meter square and might cost you (approx) around Rs.16,000 to Rs.
35,000 on an average (multi-split system). A split air conditioner consists of two parts:
the indoor unit which is also called as the evaporator unit and the outdoor unit which
is known as the external condenser box and is installed outside the room or the
building. And this is one main reason why most people opt for split ACs, as during
the operation, it doesnt make any noise which might distract your attention or annoy
you. Split ACs are permanent systems which can either be installed at the floor level
or on the walls or on the ceiling. However, it can be very noisy and may create
nuisance for your neighbors.

3) Cassette Air Conditioner: These are air conditioners that are usually fixed into
the sealing. This ultra thin air conditioner can be installed in any narrow ceiling.
These are usually fit in places where it is not possible to fit either a Window or
Split Air conditioner. The price range varies from Rs. 68,500 to Rs. 86,500on an
average.

4) Slimline Air Conditioner: This type of air conditioner has been one of the most
popular types for certain reasons. One major reason is that they can be easily moved
from one room to the other and is often referred to as a mobile air conditioner. Being
portable,

it

is

easier

to

store

when

the

summer

season

wears

off.

It is best suited for smaller rooms and for those


people who moves their houses very frequently. The only minus point is that they are
quite expensive and the exhaust tube needs to be fitted each time. It has a separate
indoor and outdoor section. It is recommended for rooms whose area is up to 35 meter
square.

5) Ductable Split Air Conditioners: Ductable air conditioners are those that are used
to condition more than one room, in the same building. These kind of air conditioners
are usually seen in institutions, big organizations, hotels etc. Duatables comes in
different tonnages depending upon the space needed to be cooled. The prices of
ductables vary depending upon the tonnage.

Out of all the above mentioned air conditions the maximum selling would be the Split
air conditioners .Though window a/c will cost less and is easier to install. The
downside is you will loose your view through the window and you will have more air
leakage than a split unit. A window unit will be less efficient than the split also a slit
a/c is much quieter than a window a/c. The split unit will add more value to the home
and will be quieter.

Key Findings about Product


The product range is changed very frequently and the customers are not able to
relate themselves to the products.
Spare parts are a major issue as they are not available readily. While comparing
it to market leader LG spares are readily available.
Stock outs too are a major worry as products are not available on demand,
especially during peak season.
There are a lot of complaints from customers about the machine making a lot of
noise while running.
After sales service was criticized greatly. While most of the dealers &
customers were happy with the after sales service provided by LG.
Installation too is a bit on a slower side when you compare it to LG. Where
Voltas takes approximately 48hrs to install the a/c LG takes half as much time.
The design & color of Voltas air conditioners is very simple & common.
People buy Voltas mainly because its a Tata group of company & also as it is
the pioneer in air conditioners in India.
By calculating the display share we found that in most of store LG has 50%
display share almost all categories.
Demo calls also not done properly.

Recommendations about Product


To improve after sales services provided. Instead of providing 2 free services
Voltas must offer at least 3 like its major competitors. Also the time when a
complaint is made and the complaint is attended to should be reduced. The
company could also offer an extended warranty at a nominal rate.
Availability of spares needs to be looked into. A separate team could be to
appointed to handle all spare part related issues.
Better design could give it a huge leverage as in todays world looks are given
high weighed. Different color panels could be used like that used by Godrej to
give the product a better look. Also detachable panels could be popularized as
people could select the color of the panels according to there taste &
preferences.
In a lot of cases it was reported that dealers are not made aware about new
product releases hence awareness about new products should improve the
enthusiasm of dealers to sell a product as well.

A separate sales person could be appointed by Voltas in major stores promoting


Voltas exclusively. In most of the outlets visited it was observed that most of
the dealers promoted LG as the first preference.

To make efforts to make the machine a lot more silent.

Product availability especially during peak season must be paint a lot of


attention to. As I observed that there was not even a single window A/c
available in the first half of June & there was a lot of demand for the same in
the market.

A lot more must be spend on R & D activities & to introduce never seen before
features and products much like Hitachi.
Make the products more durable (increased life) as a numerous customers give
a lot of importance to durability of product.
On the counts of Shelf Space and Window Display Voltas is lagging behind LG
and Samsung thus depriving the potential customers the first hand experience of
the functioning of the AC which might also mean that the brands which have
more presence on the shelf might capture these customers hence rigorous effort
need to be made to increase the shelf space & window display in order to attain
leadership position
Voltas can come up with detachable panels. This will allow the customers to
choose the color of there choice to match there room & taste.

Pricing

Definition: Pricing is the process of determining what a company will receive in


exchange for its products. Pricing factors are manufacturing cost, market place,
competition, market condition, Quality of product.
Following is the price list of different air conditioner of Voltas:
Voltas Windows AC
Price List

Voltas Split AC Price List

Product Name

Price

Product Name

Price

Voltas-Vertis GOLD 2.0T SAC

34,500/-

Voltas-Vertis Elite 1.5 Ton

21,900/

Voltas-Vertis GOLD 1.5T SAC

30,500/-

Voltas-Vertis Elite 1.0 Ton

17,000/-

Voltas-Vertis GOLD 1.0T SAC

24,500/-

Voltas-Vertis Elite 0.75 Ton

14,000/-

Voltas-Vertis GOLD 0.75T SAC

18,500/-

Voltas-Vertis Plus -2.0Ton

19,500/-

Voltas-Vertis ELITE 2.0T SAC

33,000/-

Voltas-Vertis Plus -1.5Ton

17,500/-

Voltas-Vertis ELITE 1.5T SAC

28,400/-

Voltas-Vertis Plus -1.0Ton

14,350/-

Voltas-Vertis ELITE 1.0T SAC

20,100/-

Voltas-Vertis Plus -0.75Ton

12,000/-

Voltas-Vertis ELITE 0.75T SAC

16,000/-

Voltas-Vertis Premium 1.5Ton R

16,800/-

Voltas-Vertis PLUS 2.0T SAC

Voltas-Vertis Premium 1.5Ton M

16,400/-

Voltas-Vertis PLUS 1.5T SAC

28,500/26,200/-

Voltas-Vertis Premium 1.0Ton R

14,500/-

Voltas-Vertis PLUS 1.0T SAC

22,500/-

Voltas-Vertis Premium 1.0Ton M

14,000/-

Voltas-Vertis PLUS 0.75T SAC

15,000/-

Average Price

21,123

Average Price

16,177

Following is the price list of different air conditioner of LG


LG Split AC Price

LG Window AC Price
Price

Price

LG LSA7JW2CFC1 2.0 Ton Split AC

37,000

LG LSA5NW3VF1 1.5 Ton Split AC

27,000

LG LWA2DW1AF1 0.75 Ton Window AC

11,000

LG LSA3NW2VF1 1.0 Ton Split AC

19,400

LG LWA3EW1DF1 1.0 Ton Window AC

14,000

LG LSUC2BW1AF1 0.75 Ton Split AC

15,000

LG LWA3FW1DD1 1.0 Ton Window AC

14,000

LG LSNC2BW1AF1 0.75 Ton Split AC

15,000

LG LWA3EW2DD1 1.0 Ton Window AC

14,400

LG LSA3CW2VF1 1.0 Ton Split AC

19,000

LG LWA5EW1DF1 1.5 Ton Window AC

17,000

LG LSA3NW2VF1 1.0 Ton Split AC

19,400

LG LWA5FW1DD1 1.5 Ton Window AC

15,700

LG LSA3QW2VF1 1.0Ton Split AC

19,400

LG LWA5VW1DT1 1.5 Ton Window AC

16,200

LG LSA3QW2VF2 1.0 Ton Split AC

19,400

LG LWA5HW2DD1 1.5 Ton Window AC

16,990

LG LSA3FG2VTY1 1.0 Ton AC

20,000

LG LWA5VW2DT1 1.5 Ton Window AC

17,200

LG LSA3QW2VFR1 1.0 Ton Split AC

20,000

LG LWA5HW3DD1 1.5 Ton Window AC

18,200

LG LSA3CW3VF1 1.0 Ton Split AC

21,000

LG LWA5VW3DT1 1.5 Ton Window AC

18,400

LG LSA3NF5VFC1 1.0 Ton Split AC

23,000

Average Price

19,800

Average Price

15,375

One can notice significant difference in the prices offered by LG & Voltas. Today s
market is very sensitive to prices. The customers survey conduced reviles that nearly
30% of the customers buying decision is influenced by the price offered of a particular
product. Also most of the multi brand dealers were of the opinion that there is not
much product differentiation, almost all the features of all brands are alike the only
thing setting them apart is the price .As a customer you would tend to choose a
product which has all the features and also which is the lowest on price. Hence LG by
offering such low prices has managed to capture the majority of the market share.

The pricing policy for dealers varies depending upon the number of units sold by a
particular dealer in a stipulated period of time (usually 1 month.).
Following is the Pricing & Incentives policy for dealers.
Quantity
15-50
51-75
75-125
126-175
176-220
>220

Scheme
2% On basic To
2.5% On basic To
3% On basic To
3% On basic To
4% On basic To
5% On basic To

Quantity

Incentives

15-50
51-75
>75

500 on WAC & 750 on SAC


750 on WAC & 1000 on SAC
1000 on WAC & 1250 on SAC

As seen from the above table it is can be seen that while Voltas provides a minimum
of 2% to dealers selling upto 50 units and a cash incentive of Rs. 500 on window AC
& Rs. 750 on splits, while market leader LG provides its dealers with 8% incentives
for the same & Rs. 500 on window AC & Rs. 750 on splits. Hence as a multi brand
dealer one would tend to push for LG as compared to to any other brand as it would be
a lot more profitable.
In nearly all the multi brand dealers vested there primary preference was LG followed
my either Voltas or Samsung. The best support any brand can have is the word of

mouth preference that the dealers or the salespersons give to the customers as only
what they push has the maximum chance of selling hence it would be vital for Voltas
to offer higher margins to its dealers if it wanted to be the primary brand spoken about
my all dealers.
It was also observed that Big accounts such as Vijay Sales, Croma, Reliance Digital,
Kohinoor and Snehaanjali are offered products at nearly 22% less than small dealers.
In such a scenario it would get extremely difficult for small dealers to compete with
these giants.
Example: An air conditioner sold to a small dealer for a price of Rs.25, 000 the same
air conditioner would be sold to Vijay sales for 19,500. As a dealer there would be no
ways in which you could compete with these big dealers as far as price is concerned
eventually resulting in loosing out the customer.

Key Findings about Pricing:


Voltas air conditioner are priced nearly Rs.2000 to Rs. 3000 higher than LG.
The Incentives provided to small dealers is 5% less than that provided by LG
Margins offered to big giants like Vijay Sales, Croma, Reliance Digital etc is
far more than that offered to the small dealers .As a result small dealers would
find it extremely difficult to compete with these heavy weights.
One would rather not prefer to be a dealer of Voltas and buy the products from
these giants themselves at a lower price than what Voltas can offer them.
Example: As a dealer, Voltas offers me an incentive of 2% on 50 units sold. I
would rather purchase the products from Vijay sales at a lower price and sell it
at a higher profit margin.
Spares too are a bit higher priced while comparing it to LG
Initial dealership fees of Rs 50, 000 needs to be paid to become an authorized
dealer of Voltas.
Very low profit margins for dealers.
From time to time LG provides free installation for its customers.

Recommendations about Pricing

Increase margins for all dealers.

Along with dealership fees provided the dealer with a free Voltas Air
conditioner. This would serve 2 benefits firstly the dealer will feel he s paying
less as he s getting a free air conditioner so he will not feel the pinch of shelling
out 50, 000 & secondly as a customer you tend to observe the air conditioner
installed in the dealers shop, while making your purchase decision you observe
a Voltas ac installed in the dealers shop this will tend to boost your buying
decision & will give you confidence in your buying decision. This would act as
a promotion as well.
Reduce the margins between the big & small dealers so that the small dealers
have a good chance of competing with these giants.
Offer incentives to dealers to achieve set targets.
Example: If a dealer meets his targets provided him/her with a free Ac or a cash
incentive.
Reduce prices of Air conditioner to match LG.
Come up with Nano air conditioner for the lower middle class of people.
Offer interest free loans for purchasing an air conditioner which is already
offered by LG.
A lot more should be spent on R & D activities and also on Advertising.
Payments by customers can be made in installments.
Free installation could be provided in off season.

Place

The logistics (Supply Chain Management)

Visit to warehouse

Logistics is the art and science of managing and controlling the flow of goods, energy,
information, and other resources like products, services, and people, from the source
of production to the marketplace. It is difficult to accomplish any marketing or
manufacturing without logistical support. It involves the integration of information,
transportation, inventory, warehousing, material handling, and packaging. The
operating responsibility of logistics is the geographical repositioning of raw materials,
work in process, and finished inventories where required at the lowest cost possible.

Logistics Management is that part of the supply chain, which plans, implements and
controls the efficient, effective forward and reverse flow and storage of goods,
services and related information between the point of origin and the point of
consumption in order to meet customers' requirements.

5Rs of Logistic followed by Voltas:


1. Right Time
2. Right Place
3. Right Condition
4. Right Cost
5. Right Handling
The Factory is located at Bhandup & Bhiwandi there are three types of
Warehouse1. Mother Warehouse
2. Branch Warehouse
3. Spare part warehouse

The mother warehouse is that where the products from the factory are kept and from
that warehouse, the products are sent to the branch warehouse.
A warehouse is a commercial building for storage of goods. Warehouses are used by
manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.
They are usually large plain buildings in industrial areas of cities and towns. They
come equipped with loading docks to load and unload trucks; or sometimes are loaded
directly from railways, airports, or seaports. They also often have cranes and forklifts
for moving goods, which are usually placed on ISO standard pallets loaded into pallet
racks.
5Ss of warehouse, which Voltas strictly follows.
1.
2.
3.
4.
5.

Sweeping
Sorting
Systematic Arrangement
Simplification
Self- discipline

In warehouse, the products are pinup with 3-color paper to get the knowledge about
the delivery.
1. Red Card To stop the product going into market,
2. Green card To allow the product for delivery in market,
3. Yellow Card After the product labeled with green, allow this to move in
market
Distribution Time: Local delivery

24 hrs

Upcountry delivery 48 hrs


Within 200 km.

24 hrs.

Beyond 200 km. 48 hrs.


The above distribution time is the time of delivery of products from warehouse to the
market place, which the logistic department follows to fulfill the demand in the market
at right time. In Voltas, we have the following process, which is followed in logistic
through ERP.
Order Processing
Invoicing
Indenting
Report
Order Processing

booking for dealers /distributors

Invoicing

after billing process/bill generation

Indenting

requirement (Pdt Unit to branch unit)

Report

distributed to all

Findings about Place


It was found that Voltas had to go through a lot of nitigrity processes which are
time consuming hence resulting in slow delivery.
While LG manages to delivery its air conditioners in a1 days it was found that
Voltas delivered its air conditioners in 2 to 3 days.
The installation of the air conditioner too was found to be on the slower side
while comparing it to market leader LG.
The market penetration can be increased by having more number of dealers.
Only 2 warehouses in Mumbai.

Recommendations about Place


Make process short & simple to ensure quicker delivery of final product.
Improve the pace of installation at customers place.
Reduce the delivery time from 2 to 1 day.
Decide on the best possible channel of distribution keeping in mind
companys value to its customers.
Developing operational excellence in sales forecasting, warehouse
management, transportation management & material management.
Having more number of dealers to increase the market reach.
Having more number of warehouses at strategic locations could reduce
the time lag.
Reducing the cost of logistics & passing on the benefit to the consumer.
To reduce octroi charges the movement could be directed via Goa as its
an octroi free zone.

Promotion:
Retailers communicate with customers through five vehicles
Advertising
Sales Promotion
Publicity
Store Atmosphere &
Personal selling
Advertising: form of paid communication to customers using mass media like TV,
Newspaper, and Radio. Here the ad spend is something that had to be very carefully
planned. In the months preceding summers (April to June & October) the aggressive
approach needs to be adopted, as the AC market in India is seasonal. The key here is
to provide information to the customer when he is on the look out.. Its ad campaigns
like Jagmag Desh Mera & India ka dil India ka AC are emotional appeals to
Indians.
Voltas, the first company in India to manufacture an indigenous air-conditioner in
1954, was also the first to launch the split AC in 1982. Over five decades of
operations, Voltas has introduced India to newer cooling technologies. That is why the
India ka Dil, India ka AC campaign resonates so strongly with Indian consumers,
appealing to their pride in the new emerging India. An Indian brand at heart, Voltas
understands the needs and concerns of the consumer. To Indians, an AC is not just a
cooling appliance; it is a device that enables them to provide care and comfort to those
they love. While consumers are moved by this emotional plank, they are also aware
that every Voltas product is supported by state-of- the-art technology, a robust after
sales services network and the inherent assurance of being a Tata product. The appeal
of Voltas lies in the values and emotions it stands for. The brand also implies

dependability in delivering value through engineering and innovation. Value,


according to Voltas, means providing the customer satisfaction in terms of
performance, durability and cost. Like the Tata brand, Voltas too is being seen as a
brand which effortlessly combines the traditional with the modern, a brand that has
deep roots in India and a global outlook to take on the world.
Sales promotion: Paid impersonal communication activity that offers incentive to
customer to purchase a product like coupons, contests, discounts etc. in the bigger
outlets like Vijay Sales there are invariably schemes offered on the purchases, which
include free tour packages, discount coupon schemes etc. which increase the footfalls
in the showroom thus increasing the probability of sales. The showrooms that offer
such schemes are of prime importance to the company as the awareness regarding
such showrooms is very high amongst the customers.

Publicity: Is communication through significant unpaid presentation about the


retailer. For example the newspaper coverage of any special event conducted by the
retailer. In newspapers like the Midday there are a lot of Ads give by the retailers for
their showrooms along with the brands of AC, this also fetches important publicity to
the AC companies.

Store atmosphere: paid impersonal communication is combination of stores physical


characteristics like signs, displays, color, lighting etc, which create an image about
stores service, pricing, fashion ability of merchandise. This is one of the areas that we
covered under our project. The figures for store atmosphere are- of the total 50 outlets
for the Mumbai Region 22 had the POP Material for Voltas Air Conditioners. This
figure is second after LG, which has a presence in 31outlets with its POP Material.

Personal selling: Is communication process in which sales people assist customers in


satisfying their needs through face-to-face conversation. It is paid personal
conversation. This as another head covered under the project. The Dealers/Salespeople
at majority of the outlets speak highly of LGs low price & good quality (21 outlets),
as the most running brand (31 outlets) and good after sales (10 outlets). Whereas for
Voltas the most spoken about positive features are good quality (19 outlets), and better
electricity efficiency (20 outlets). Thus the positive feedback from the outlets is
almost the same but the difference creeps in when it comes to the negative features
given by the Dealers/Salespersons Voltas has a problem as 25 outlets allover Mumbai
claim it to priced to high and 16 claim it to be poor on the after sales front. For LG the
negative feedback is very low as there are overall only 10 outlets claiming it too are
on the quality. This is one of the major differentiating factors.

Communication methods
Impersonal
Advertising, Store
atmosphere, Visual
merchandising, Sales
promotion
Publicity

Personal
Personal selling

Paid

Word of mouth

Unpaid

Comparison of Communication Methods:


Paid Impersonal:
Control
Advertising
Sales
promotion
Sales
atmosphere

Flexibility

Credibility

Cost

Control

Flexibility

Credibility

Cost

Unpaid Impersonal:
Control
Publicity

Flexibility

Credibility

Cost

Flexibility

Credibility

Cost

Paid Personal:
Personal
selling

Unpaid Personal:
Control
Word of
mouth

High

High to Moderate

Moderate to Low

Moderate

Low

Control: Retailers have more control when using paid versus unpaid methods. When
using advertising, Sales promotions, and Stores atmosphere retailers determine
messages, content and time of delivery. But because each salesman can deliver
different messages, retailers have less control over content/timing of publicity and
word of mouth. Since unpaid communication is not designed and delivered by retailer
one can communicate both favorable and unfavorable information.

The showroom atmosphere along with the word of mouth is the perfect combination
when it comes to wining the customers confidence. The perfect example could be of
LGs, there were 11 outlets that had the dealer certificates for the brand claiming it to
be the number 1 brand in India and invariably these outlets pushed LG to the
customers (overall LG is the most preferred brand at 21outlets and one of the top three
most preferred brands at a staggering 36 outlets. With such kind of bombardment
more customers are expected to turn to LG rather than away from it.
Flexibility: Personal selling most flexible because sales people can talk and cover
customer specific needs and develop unique presentation. Other communication
method less flexible
E.g.: Advertisements convey the same message to all customers. In all there area lot of
dealers that claim that Voltass electricity efficiency will see to it that the difference in
the price (over LG) will be recovered in about a years time. Such a push will lure the
customers who want to buy a cheaper AC to buying Voltas.

Credibility: Because publicity and word of mouth are communicated by independent


sources, Information is more credible than in paid communication sources. The word
of mouth is the best publicity for the brand.
Cost: publicity and word of mouth are unpaid communication methods

Communication elements and consumers decision making


process
Awareness
Knowledge

Signs
Advertising
Publicity

Favorable
Attitude

Sales people
Image advertising (shop)
Store Atmosphere

Visit
Store

Sales Promotion
POP Displays

Repeat
Visits

Positional Advertising
Personal Selling / Sales Promotion
POP Displays /Positional Advertising
Personal Selling

The above figure shows which communication methods most effective at various
stages in the decision are making process. For egg: for creating awareness/knowledge
Signs, Advertising, and Publicity are very important.

Continuous Patronage and loyalty/repeat visits are developed through communication


directed at positioning the store and through service provided by Sales people.
Favorable attitude and visiting the store is very important from the sales point of view
these 2 factors are dependent on the dealer preference, image of the shop, the
atmosphere inside the shop, sales promotion carried out by the dealer, and the
effective use of the POP material by the dealer is very important

In the overall analysis we found that the dealer preference for LG was the most, in 21
outlets out of 50 LG was the top brand while in 36 outlets it figured among the top
three brands.
Voltas was the top brand in 14 outlets while in 29 outlets it figured among the top
three brands.

In the use of POP material again LG was the top brand, 21 outlets made proper use of
the POP material for LG out of 50, while for Voltas 11 outlets made use of the POP
material provided by the company.

Steps between evaluation of Alternatives & a Purchase


decision
Attitudes of
others

Evaluation of
Alternatives

Purchase
decision

Purchase
Intention
Unanticipated
Situational
Factors

Here the customer typically goes through all the brands offered by the dealer in the
market definitely with the intention of purchasing one of them. He evaluates each
brand on the basis of the information provided in the leaflet and then on the response
given by the dealer.
Price is one factor, which weighs heavily in the favor of a particular brand. Here LG
scores highly and Voltas gets negative feedback from the dealers.
After deciding on a particular product there is a very rare chance that the customer
will backtrack from the purchase of that particular brand until and unless he comes
across some negative feedback regarding the brand or the company?
For e.g.: in the case of LG bad service and low durability are the major negative
factors which a customer would often come across while looking for ACs. Word of
mouth spreads very fast and travels even faster when the news is bad; hence it
becomes very important for the company to create a goodwill and trust among the
consumers as well as the dealers.

Successive steps involved in preferences given by the dealer


Total set

Voltas
LG
Hitachi
Samsung
Carrier
Videocon
Whirlpool
Onida
OG
National

Awareness set

Voltas
LG
Hitachi
Samsung
Carrier
OG

Consideration set

Voltas
LG
Samsung
Carrier

Choice set

Voltas
LG
Samsung

Decision

Key Findings about Promotion


A lot of dealers as well as customers could not recollect a Voltas Ad.
The emotional appeal does not really make the customers buy a product.
A lot of customers did not know that Voltas is a TATA product hence.
20% of customers interviewed said LG was there favorite Air conditioner
ad followed by Hitachi at 16%.
In 2008 Rs 1250.76 lakhs was spent towards advertisement expenditure
which is substantially less when you compare it to LG.
Other forms of media too are now being used by Voltas to advertise like
Radio, Print ads, Hoardings etc this was not done enough earlier.
It was found that in most of the multi brand dealers the branding of the
dealers shops were done by LG.
In nearly all the LG dealers a certificated of dealership was given to
dealers which also stated that LG is the Number 1 brand in air
conditioners.
It was also found that LG organized exhibitions to showcase its products
which Voltas does not do.
LG also provided free installation as a promotional strategy.
LG also throws parties to its dealers every year also LG sends its dealers
for paid holidays on achieving of set targets.
Customers also felt that the ad campaigned India ka dil.India ka AC
did not stand out in the ad.

Recommendations about Promotion


Highlight brand TATA in the ads.
Spend a lot more on outdoor advertising.
Appointed Voltas salesmen in popular showrooms like Vijay Sales,
Sumaria etc. to not only promote the brand but also to push for sales.
Use celebrities to promote the brand.
Sponsor important events like T20 World Cup, Popular television serials
etc.
Set up kiosks outside shops to promote the brand.
Provided inept training to dealers about product specifications.
Branding of dealers shops & proving them dealership certificated which
can be displayed..
Providing dealers with rewards & recognitions for achieving targets.
Advertise a lot more aggressively during summers.
Highlight the power saving feature also make users aware about star
ratings.
Use the advantage of being the pioneer in Indian air conditioner.
Come up with attractive schemes like free installation, scratch card, free
trips, etc.
Come up with full page ads in newspapers, leaflets in popular newspaper.
Product awareness needs to be increased further.
Install a Voltas AC at dealers shops as a customer tends to notice the air
conditioner used by the dealer.

Dealers Questionnaire
Product
1) Which air conditioner according to you offers the best features?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others
2) On a scale of 1 To 5, how would you rate Voltas Air conditioners on the
basis of design?
a )1
b) 2
c) 3
d) 4
e) 5
3) How would you rate Voltas Air conditioners in terms of performance Vis a
Vis competition?
a) Low
b) Average
c) High
b) Superior
4) What is your take on the after sales service provided by Voltas compared to
other Brands?
a) Excellent b) Very Good c) Good d)Average e) Poor
5) In selling situations, which particular aspect of Voltas Air conditioner offers
leverage over other brands?
a) Features b) Brand Name c) Design d) Price e)Others
6) Why according to you, is LG the market leader in Air conditioners?
a) Better design b) Better technology used c) Lower Prices
d) Brand Name e) Better Service provided f) More durability
7) Which Air conditioner is the most Durable?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others
8) Are you aware in advance about the new products which are going to be
launched by Voltas?
a)Yes
b)No
9) What complaints do you most often face from customers?

a) Poor after sales service b) Goods Received in damaged condition


c) Availability of spare parts d) Others

Price
1) How do u find the pricing of Voltas Air Conditioners compared to
other brands?
a)Competent
b) High
c) Low
d) Average
2) Which brand according to you offers full value for money?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others
3) How much of your business volume is accounted for by Voltas
Products?
a) Less than 10% b) 11% -25% c) 26%-50% d) 50% And more
4) How much of your business profits is accounted for by Voltas
Products?
a) Less than 10% b) 11% -25% c) 26%-50% d) 50% And more
5) Does the pricing of Voltas Air conditioners offer enough range to

different classes of customers


a) Yes
b) No
5) What are your payment terms?

a)Full on delivery b) Full advance c) Part advance & Part on delivery


d) Full credit
7) Which Air conditioning Brand offers you maximum discount &
return on investments (Highest profit)?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others
8) Do you as a dealer get some additional benefit for promoting a
particular brand?
a) Yes
b) No
c) Would not like to reveal

Place
1) What is the delivery system adopted by Voltas compared to other
brands?
a) Delivery via intermediaries b) Direct delivery c) Pick up
from factory/warehouse
2) Are you happy with the delivery System of Voltas?
a) Yes
b) No
3) Have you ever faced stock out for Voltas Products?
a) Yes

b) No

4) In case of any damaged products, are you happy with the process
of returning back the products to Company?
a) Yes
b) No
5) Why dont you display more of Voltas Products?
a) Limited Demand b) Space Problem c) Low profits
b) More demand for competitors products
6) What is the average number of days taken by Voltas to deliver the
Air Conditioner?
a) 12 hours b) 1 Day c) 2 Days d) 3 days e) 4 Days

Promotion
1) Which is your favorite Air conditioner Ad?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others
2) Which companys name comes to your mind First when one says
Air Conditioners?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others
3) How effective is Voltas Air conditioner ad compared to other
brands?
a) Very Effective b) Effective c) Not effective d) Cant Recollect
Voltas Ad
4) How effective are Voltas Ads in drawing out customers?
a) Very Effective b) Effective c) Not Effective d) Ads have no
effect on sales of
brand
5) On a scale of 1 to 5 how would you rate Voltas ads?
a) 1
b) 2
c) 3
d)4
e) 5
6) Any suggestions for Voltas top management?

Thank You For Taking The Survey.

Customers Questionnaire
1) How do you perceive Air conditioners today?
a) Luxury
b) Necessity
c) Can do without
2) Do you own an Air conditioner?
a) Yes
b) No
3) If Yes Which Brand?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others
4) Which brand according to you offers best features?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others
5) While purchasing an Air conditioner what particular aspect do
you give highest weighted to?
a) Features b) Price c) Brand Name d) Design e) Durability
6) Which is the most trusted brand of Air conditioner according to
you?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others
7) According to you which Air conditioner offers full value for
money?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others
8) Which is your favorite Air conditioner Ad?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others
9) Which companys name comes to your mind First when one says
Air Conditioners?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others

10) Have you seen Voltas Ad?


a) Yes
b) No
11) What message is tried to be put across by the ad?
a) Voltas Air conditioners save electricity
b) Voltas is the pioneer in Air conditioners
c) Voltas is the most trusted brand of Air conditioners
d) Not seen the ads
12) How effective are Voltas Ads in drawing out customers?
a) Very Effective b) Effective c) Not Effective
d) Ads have no effect on sales of brand
13) Any Suggestions for Voltas Top Management?

Thank You For Taking The Survey

Results
Product
1) Which air conditioner according to you offers the best features?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others

2) On a scale of 1 To 5, how would you rate Voltas Air conditioners on the basis
of design?
a )1
b) 2
c) 3
d) 4
e) 5

3) How would you rate Voltas Air conditioners in terms of performance Vis a Vis
competition?
a) Low
b) Average
c) High
b) Superior

4) What is your take on the after sales service provided by Voltas compared to
other Brands?
a) Excellent b) Very Good c) Good d)Average e) Poor

5) In selling situations, which particular aspect of Voltas Air conditioner offers


leverage over other brands?
a) Features b) Brand Name c) Design d) Price e)Others

6) Why according to you, is LG the market leader in Air conditioners?


a) Better design b) Better technology used c) Lower Prices
d) Brand Name e) Better Service provided f) More durability

7) Which Air conditioner is the most durable?


a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others

8) Are you aware in advance about the new products which are going to be
launched by Voltas?
a) Yes
b) No

9) What complaints do you most often face from customers?


a) Poor after sales service b) Goods Received in damaged condition
c) Availability of spare parts d) others

Price
1) How do u find the pricing of Voltas Air Conditioners compared to other
brands?
a) Competent
b) High
c) Low
d) Average

2) Which brand according to you offers full value for money?


a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others

3) How much of your business volume is accounted for by Voltas Products?


a) Less than 10% b) 11% -25% c) 26%-50% d) 50% and more

4) How much of your business profits is accounted for by Voltas Products?


a) Less than 10% b) 11% -25% c) 26%-50% d) 50% and more

5) Does the pricing of Voltas Air conditioners offer enough range to different

classes of customers?
a) Yes

b) No

6) What are your payment terms?


a) Full on delivery b) Full advance c) Part advance & Part on delivery
d) Full credit

7) Which Air conditioning Brand offers you maximum discount & return on
investments (Highest profit)?
a) Voltas b) LG c) Hitachi d) Carrier e) Samsung f) Blue Star
g) Godrej h) General
i) Others

8) Do you as a dealer get some additional benefit for promoting a particular


brand?
a) Yes
b) No

Place
1) What is the delivery system adopted by Voltas compared to other brands?
a) Delivery via intermediaries b) Direct delivery c) Pick up from
factory/warehouse

Conclusion
From above Literature review and findings we can say that Voltas needs to redesign
its marketing strategies and improve its after sales services and also a slight revision
its pricing strategy for dealers in order to make a success in India .If Voltas improves
the services & incentive scheme for dealers, then there are good chances of a grand
success, as the Indian air conditioner market is growing very fast. So Voltas has two
options:
1. Improve the marketing strategies i.e. advertising & after sales service. This
could certainly help Voltas to penetrate the tough Indian market and to increase
the market share.
2. Revamp the incentive schemes for dealers & distributors so that they push
brand Voltas instead of any other brand.
Finally we can conclude that the success (or Sales) of Voltas AC is dependent on
after sales service & incentives provided to dealers as they are the ones who push your
brand. Indian customers wont buy it just because it is their brand; but they expect
value for money and satisfaction.