PROFILE OF THE COMPANY

For decades, the Khaitan name has been synonymous with quality fans in India.
With 19 offices located across the country, Khaitan has established itself as the
undisputed leader in air-management technology. The Khaitan name is renowned for
innovations as well which is reflected in the design of pioneering product concepts
such as Fresh air fans, and models in the mini category. Now Khaitan is
diversifying even further. Pumps, lights, home appliances, cables, wires and circuit
breakers have been added to Khaitan's portfolio. Good quality, great performance
and novelty in design are some of the assured features of any product from Kha itan.
As a young entrepreneur in the early 60s, S.K. Khaitan (chairman) was possessed
by a burning desire to push the limits and create new goals for himself. Men like
Henry Ford, Thomas Bata, Soichario Honda and J N Tata who had guts to build
great brands with their own name, deeply moved him and then he was all set to
create Khaitan his family name into a household word as well. Today Khaitan is
already a household name and a leading brand throughout the country, but the
vision continues to grow. In 1971, Mr. S.K. Khaitan founded Khaitan electrical ltd
in kolkata. These products are manufactured at factories located in Kolkata (West
Bengal), NarsapurTaluk (Andhra Pradesh), Faridabad (Haryana) and Ponta Sahib
(Himachal Pradesh). The Faridabad factory is th e Company`s R&D hub while the
other three factories produce over 100,000 units of fans a month with an installed
capacity to produce over 200,000 units a month. The company is also engaged in
exporting its various range of fans to countries like Africa, th e Middle East and
Asia including Sri Lanka, Bangladesh, Singapore, Myanmar and Nepal. Khaitan`s
main mode of business is through its channel partners such as dealers and
distributors. The company has a network of more than 3,500 dealers and distributors
across the country.

1
Founder Chairman

S K Khaitan

Founder, Khaitan Electricals Ltd.

15th December, 1939 - 4th November, 2012

PIONEER. INNOVATOR. LEADER.

Shree Krishna Khaitan made his surname the last name in fans. His vision, courage
and innovative spirit made Khaitan a household name in India and even overseas.
Born on 15th December, 1939 in Jhunjhunu, Rajasthan, Shree Krishna grew up to be
one in a million, as if in answer to his mothers prayers when he was born. Business
was in his blood. Which is why, at the young age of 16 he started a shop for food
grains and other edibles in his village. He carried on his business successfully while
doing his Intermediate in Commerce at Seth Motilal Inter College.

In June, 1958, he travelled to Kolkata to pursue his twin dreams of business and
academics. He enrolled for early morning classes at City College and worked in a
sugar mill, during the day. In 1960, Shree Krishna was inducted in trading of
electrical fans. Later on to start a business ventures with his brother - S. Khaitan &
Co. - selling fans in the WHOLESALE market.

While selling reputed brands of fans from the showroom, Shree Krishna started
marketing his own DC fan called Breezy. With its good looks, low price and better
performance, Breezy made a significant impact on the fan market.

Thus was born a legend - Khaitan fans, captured the hearts of millions with sleek
looks, low power consumption, hassle -free service and extended warranty. Shree
Krishna introduced a number of firsts in the fan industry.

2
Shree Krishna formed Khaitan Electricals Ltd. in 1981. The Company was driven by
his belief that if you spoil your reputation, you lose everything. He had given
everything to his fans, including his surname and would not allow anything to
tarnish that - whether in India or in the export market, where Khaitan was fast
becoming a name to reckon with.

Shree Krishna also realized his long cherished dream to own a sugar mill when h e
turned around the fortunes of Ramnugger Cane & Sugar Co. Ltd in West Bengal.
Shree Krishna was a philanthropist at heart. Long before Corporate Social
Responsibility [CSR] became a buzzword, he would do his bit for social welfare of
the distressed and the needy in the fields of healthcare and education. Durga Devi
Khaitan Ladies Hospital in Jhunjhunu is a shining example of his philanthropy. He
always extended a helping hand to those in need of financial assistance and was
forever involved in initiatives like blood donation & eye check -up camps.

He has won many awards & accolades. Notable among them are the NIF NAYE
Outstanding Entrepreneur Award and the NIA National Honor. He is also the
recipient of Rajasthan Shri and National Integration Award.

Shree Krishna can be rightfully called the father of branded fans in India. He passed
away in November, 2012, leaving behind a vast business empire. But his legend
endures through his surname which finds pride of place on every Khaitan product.

HISTORY OF KHAITAN ELECTRICALS

YEAR EVENTS 1975 - The Company was Incorporated on 27th October, as a

private limited company and then converted into public limited company on 14th
August, 1982. The Company was promoted by Shri S.K. Khaitan, the chairman of
the Khaitan group of companies.

- The Company's object is to manufacture electric fans, industrial and ventilating

fans, electrical household appliances electric motors, cables, electric lamps,
electrical meters etc.

3
- The Company entered into an agreement with Khaitan Fans Pvt. Ltd. for obtaining
"technical know-how" for the manufacture of electric fans and regulators and for
using their trade mark "Khaitan". Since then the Company is engaged in the
manufacture of various types of elctric fans and regulators.

- The Company started its first plant at Faridabad to manufacture a wide range of
ceiling, exhaust, portable, industrial and ventilating fans, FHP motor and power
driven pumps. To cater to the growing demand in Western India and overseas
markets, a second plant was started at Tarapur near Mumbai in January 1983 to
manufacture ceiling and portable fans. The first plant was set up at the Company's
own land at Faridabad while an industrial plant was acquired on lease at Tarapur for
the setting up of the second project. A th ird plant was set up at Noida in 1985.

1981 - 3,70,000 No. of equity and 3,000 pref. shares taken up by promoters, etc. In
November, 1983, 8,80,000 No. of equity shares issued of which 1,30,000 shares
were allotted to promoters, etc. The balance 7,50,000 s hares offered to the public.

1983 - The Company undertook to set up a new unit at Faridabad to manufacture a

wider range of F.H.P motors and electrical household appliances. The necessary
technical know-how and R&D facilities were available with the Compan y and the
prototypes were under development. Negotiations were at an advanced stage for
procuring plant and machinery needed for the project. The plant went on stream
during 1984.

- The object of the public issue of capital during March, was to augment the
Company's working capital and to provide funds for normal capital expenditure
other than for substantial expansion and diversification.

- The Company undertook an expansion and diversification programme. A second

plant was put up at Bachepalli in the Medak district of Andhra Pradesh to
manufacture a wide range of portable and other fans and household electrical
appliances.

4
- 1,77,500 shares issued at par of which 27,500 shares reserved and allotted to
promoters, directors, etc. The balance 1,50,000 sha res offered to the public in
March.

1984 - Pref. dividend raised to 15% from 1.1.1985. 12,50,000 rights equity shares
offered at par (linked to 15% debentures) in the ratio 1:1 in Oct. 1985. Additional
3,12,500 No. of equity shares allotted to retain overs ubscription. 62,500 No. of
equity shares also offered at par to employees (only 2,200 shares taken up).

- In Sept., 12,60,000 shares issued (prem. Rs 1 per share) of which 5,04,000 shares
reserved and allotted to promoters, directors, etc. The balance 7,56 ,000 shares
offered to the public.

1985 - A new factory was set up at NOIDA, Expansion of the Tarapur factory was
undertaken.

- M/s. KhaitanLefin Ltd., is a subsidiary of the Company. It ceased to be a

subsidiary to the Company during 1994-95.

- In October, in order to part finance the expansion programme and to augment

long-term resources, the Company made a rights issue of 12,50,000 No. of equity
shares of Rs.10 each, both at par, in the ratio 1 equity share for every equity share
held and 1 debenture for every 10 equity shares held. Each debenture offered was
linked to 10 equity shares.

- In Feb./Mar., 15,00,000 right shares offered (prem. Re. 1 per share; prop. 1:1).
3,75,000 additional shares allotted to retain oversubscription. 75,000 shares were
also offered (prem. Re. 1 per share) to the employees of the Company. Only 15,700
shares taken up. The remaining 59,300 shares allowed to lapse.

1987 - The oscillating type air circulators was launched during the period and
washing machines were under final sta ge of development.

5
- Jhunjhunu Holdings Limited became a wholly owned subsidiary of the Company
during the year.

1991 - The Window type air cooler was launched during the year and the company
had decided to manufacture both floor and window type coolers in a big way.

- Lock-out at the Faridabad plant for 71 days and reduced activities at Noida and
Tarapur plants led to the poor performance.

1992 - For better utilization of resources, the operations of Noida works were
closed and its machinery shifted and co mmissioned at Faridabad factory.

1993 - The company proposed to diversify into sugar/agro based industry.

- 16,95,350 rights shares issued (prem. Rs 20 per share; prop. 1:2) only 9,82,956
share taken up. Another 6,76,344 shares devolved on the underwriters . The balance
36,050 shares remained unsubscribed.

- 2,000 preference shares are redeemable during 31st March, 1993/96, 500
preference shares are redeemable during 29th March 1995/98 and 500 preference
shares are redeemable during 23rd May 1995/98.

1994 - With effect from 1st April, Khaitan Fans (I) Ltd. amalgamated with the
Company.

- 1000 pref. shares redeemed. 30,00,000 shares issued as fully paid up to the
shareholders of Khaitan Fan India Ltd. (KFIL) without payment being received in
cash and 14,700 No. of equity shares of Rs.10 each of the company held by KFIL
were cancelled.

1995 - 96,500 preference shares are redeemable during 29th March.

1996 - 1,56,470 secured non-convertible debentures of Rs.100 each were issued to

be redeemable at par in three equal annual instalments commencing from 21st April.

6
As per the scheme of arrangement Rs 2.45 lakhs of NCD were received and
redeemed during the year, making to date redemption of Rs 56.82 lakhs.

2001 - The Company equity shareholders is proposed to be held on March 10 to

consider the scheme of arrangement of amalgamation between Jhunjhunu Electricals
& Finance Ltd and Khaitan Electricals Ltd.

2005-Dlist from The Hyderabad stock Exchange Ltd(HSE) with effect from January
19, 2005.

2009- Khaitan Electricals Limited has informed that a meeting of the Board of
Directors has been held on January 30, 2009 and discuss the following agenda: 1)
Resignation of Sri O. Swaminatha Reddy as a Independent Director. 2) Resignation
of Sri P. R. Agarwal as a Independent Director. 3) Appointment of Mr. A. K.
Bhattacharya as Additional Director (Independent Director).

2010- Khaitan Electricals Ltd has appointed Sri BiswajitChoudhary as Additional

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

ABOUT THE COMPANY

Khaitan (India) Limited engages in the manufacture and sale of electric home
appliances primarily under the Khaitan name in India. It offers various domestic
products, which include fans, such as ceiling, table, pedestal, wall and cabin, fresh
air, portable, and multipurpose fans; kitchen appliances, including mixer grinders,
juicers, snacker, hand blenders and mixers, toasters, electric kettles, electric irons,
and immersion heaters; lights comprising tube lights, compact fluorescent lamps,
GLS bulbs, and decorative bulbs; pumps consisting of mono block, centrifugal, jet,
submersible, and mini submersible pumps; cooler kit and FHP pumps; circuit
breakers; domestic wires and cables; and air coolers. The company also provides
industrial products, including HD exhausts, air circulato r, axial flows, and man
coolers. In addition, it produces sugarcane, sugar, and molasses. Khaitan (India)

7
Limited sells its products through a network of distributors and dealers. The
company also exports its products to Africa, the Middle East, and other Asian
countries, including Sri Lanka, Bangladesh, Singapore, Myanmar, and Nepal.
Khaitan (India) Limited is based in Kolkata, India.

Values:

Build Trust: We will conduct all our business dealings with fair and ethical
business practices and strive to build trust in the minds of all our stakeholders.

Belief in Excellence: We believe in setti ng higher levels of Excellence in all our

actions and will recognize and reward the excellence achieved by our team
members.

Delighting Customers: We will delight our customers by providing them world -

class products and services and thereby enhance thei r quality of life.

Ensuring Accountability: We will work in a transparent, performance oriented

environment and define clear accountability for our employees, while empowering
them to achieve their performance goals with speed and efficiency.

Encouraging Teamwork: We will ensure dignity and respect for the individual
while encouraging Teamwork.

Personal Growth: Every employee will be enabled to learn at the work place with
significant opportunities for Personal Growth and Contribution to the organi zation.

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

8
 PRODUCTS

Khaitan Electricals product lines include the following

DOMESTIC PRODUCTS:

Home Appliances - Mixer and Grinder, Snacker or Toaster, Juicer, Electric

Kettle, Hand Blender, Hand Mixer, Electric Iron and Imersion Rod.
Fans - Ceiling fans, Table fans, Pedestal fans, Wall fans and Fresh air fans.
Lights CFL, Tube lights, GLS lamps and Decorative Bulbs.
Pumps- Monoblock, Jet Pumps, Submersible, Centrifugal, Mini -Submersible.
Cooler Kit and FHP motors
Circuit Breakers
Wires and Cables
Air Coolers

INDUSTRIAL PRODUCTS:

HD Exhaust
Air Circulator
Axial Flow
Man, Cooler

The trust placed by the millions of consumers have fueled the company into
introducing the premium range of home appliances designed as a fitting accessory
to new age Indias global aspirations.The companys competitors in this segment
include Philips, Usha & Maharaja.

9
FANS

Ceiling, Table, Pedestal, Wall and cabin

Home Appliances
1. Kitchen Appliances

10
Household Appliances

Lights

CFL

Tube light & Bulbs

11
Cooler kit and FHP motor

Circuit Breakers

Wires and cables

12
Pumps & Submersible

Air coolers

13
 DEVELOPMENT OF COMPANY

YEAR EVENTS 1975 - The Company was Incorporated on 27th October, as a

private limited company and then converted into public limited company on 14th
August, 1982. The Company was promoted by Shri S.K. Khaitan, the chairman of
the Khaitan group of companies.

- The Company's object is to manufacture electric fans, industrial and ventilating

fans, electrical household appliances electric motors, cables, electric lamps,
electrical meters etc.

- The Company entered into an agreement with Khaitan Fans Pvt. Ltd. f or obtaining
"technical know-how" for the manufacture of electric fans and regulators and for
using their trade mark "Khaitan". Since then the Company is engaged in the
manufacture of various types of electric fans and regulators.

- The Company started its first plant at Faridabad to manufacture a wide range of
ceiling, exhaust, portable, industrial and ventilating fans, FHP motor and power
driven pumps. To cater to the growing demand in Western India and overseas
markets, a second plant was started at Tarapur near Mumbai in January 1983 to
manufacture ceiling and portable fans. The first plant was set up at the Company's
own land at Faridabad while an industrial plant was acquired on lease at Tarapur for
the setting up of the second project. A third plant was set up at Noida in 1985.

1981 - 3,70,000 No. of equity and 3,000 pref. shares taken up by promoters, etc. In
November, 1983, 8,80,000 No. of equity shares issued of which 1,30,000 shares
were allotted to promoters, etc. The balance 7,50,000 shares offered to the public.

1983 - The Company undertook to set up a new unit at Faridabad to manufacture a

wider range of F.H.P motors and electrical household appliances. The necessary
technical know-how and R&D facilities were available w ith the Company and the
prototypes were under development. Negotiations were at an advanced stage for

14
procuring plant and machinery needed for the project. The plant went on stream
during 1984.

- The object of the public issue of capital during March, was to augment the
Company's working capital and to provide funds for normal capital expenditure
other than for substantial expansion and diversification.

- The Company undertook an expansion and diversification programme. A second

plant was put up at Bachepalli in the Medak district of Andhra Pradesh to
manufacture a wide range of portable and other fans and household electrical
appliances.

- 1,77,500 shares issued at par of which 27,500 shares reserved and allotted to
promoters, directors, etc. The balance 1, 50,000 shares offered to the public in
March.

1984 - Pref. dividend raised to 15% from 1.1.1985. 12,50,000 rights equity shares
offered at par (linked to 15% debentures) in the ratio 1:1 in Oct. 1985. Additional
3,12,500 No.of equity shares allotted to ret ain oversubscription. 62,500 No. of
equity shares also offered at par to employees (only 2,200 shares taken up).

- In Sept., 12,60,000 shares issued (prem. Rs 1 per share) of which 5,04,000 shares
reserved and allotted to promoters, directors, etc. The bal ance 7,56,000 shares
offered to the public.

1985 - A new factory was set up at NOIDA, Expansion of the Tarapur factory was
undertaken.

- M/s. KhaitanLefin Ltd., is a subsidiary of the Company. It ceased to be a

subsidiary to the Company during 1994-95.

- In October, in order to part finance the expansion programme and to augment

long-term resources, the Company made a rights issue of 12,50,000 No. of equity
shares of Rs.10 each, both at par, in the ratio 1 equity share for every equity share

15
held and 1 debenture for every 10 equity shares held. Each debenture offered was
linked to 10 equity shares.

- In Feb./Mar., 15,00,000 right shares offered (prem. Re. 1 per share; prop. 1:1).
3,75,000 additional shares allotted to retain oversubscription. 75,000 shares w ere
also offered (prem. Re. 1 per share) to the employees of the Company. Only 15,700
shares taken up. The remaining 59,300 shares allowed to lapse.

1987 - The oscillating type air circulators was launched during the period and
washing machines were under final stage of development.

- Jhunjhunu Holdings Limited became a wholly owned subsidiary of the Company

during the year.

1991 - The Window type air cooler was launched during the year and the company
had decided to manufacture both floor and window type c oolers in a big way.

- Lock-out at the Faridabad plant for 71 days and reduced activities at Noida and
Tarapur plants led to the poor performance.

1992 - For better utilization of resources, the operations of Noida works were
closed and its machinery shifted and commissioned at Faridabad factory.

1993 - The company proposed to diversify into sugar/agro based industry.

- 16,95,350 rights shares issued (prem. Rs 20 per share; prop. 1:2) only 9,82,956
share taken up. Another 6,76,344 shares devolved on the und erwriters. The balance
36,050 shares remained unsubscribed.

- 2,000 preference shares are redeemable during 31st March, 1993/96, 500
preference shares are redeemable during 29th March 1995/98 and 500 preference
shares are redeemable during 23rd May 1995/98 .

16
1994 - With effect from 1st April, Khaitan Fans (I) Ltd. amalgamated with the
Company.

- 1000 pref. shares redeemed. 30,00,000 shares issued as fully paid up to the
shareholders of Khaitan Fan India Ltd. (KFIL) without payment being received in
cash and 14,700 No. of equity shares of Rs.10 each of the company held by KFIL
were cancelled.

1995 - 96,500 preference shares are redeemable during 29th March.

1996 - 1,56,470 secured non-convertible debentures of Rs.100 each were issued to

be redeemable at par in three equal annual instalments commencing from 21st April.
As per the scheme of arrangement Rs 2.45 lakhs of NCD were received and
redeemed during the year, making to date redemption of Rs 56.82 lakhs.

2001 - The Company equity shareholders is proposed to be held on March 10 to

consider the scheme of arrangement of amalgamation between Jhunjhunu Electricals
& Finance Ltd and Khaitan Electricals Ltd.

2005-Dlist from The Hyderabad stock Exchange Ltd(HSE) w ith effect from January
19, 2005.

2009- Khaitan Electricals Limited has informed that a meeting of the Board of
Directors has been held on January 30, 2009 and discuss the following agenda : 1)
Resignation of Sri O. Swaminatha Reddy as a Independent Direct or. 2) Resignation
of Sri P. R. Agarwal as a Independent Director. 3) Appointment of Mr. A. K.
Bhattacharya as Additional Director (Independent Director).

2010- Khaitan Electricals Ltd has appointed Sri BiswajitChoudhary as Additional

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

17
 MARKETING STRATEGY

A marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to incre ase sales and achieve a
sustainable competitive advantage. A marketing strategy should be centered on the
key concept that customer satisfaction is the main goal a strategy consists of a well
thought out series of tactics to make a marketing plan more effe ctive. Marketing
strategies serve as the fundamental underpinning of marketing plans designed to fill
market needs and reach marketing objectives. Plans and objectives are generally
tested for measurable results.

We adopted different marketing strategies like combinations, schemes, discounts,

guarantee/warranty and highlighting product features and its various attributes. I
created an impression in the minds of our customer by creating it s Brand image
which can play huge role in boosting sales.

MARKETING MIX

The basic purpose of determining the marketing mix is to satisfy the needs and
wants of the customers in the most effective manner. The Marketing Mix,
originally known as The Four Ps, is a combination of product, price, place
[distribution], and promotion activities that are applied to a particular target
market. The general idea is to combine (mix) the variables to generate an optimal,
positive, and desired response in the target m arket

Product - An object or a service that is mass produced or manufactured on a

large scale with a specific volume of units. A typical example of a mass -
produced service is the hotel industry. A less obvious but ubiquitous mass
produced service is a computer operating system. Typical examples of a mass -
produced objects are the motor car and the disposable razor.

Khaitan has a huge variety of products ranging from appliances to fans to

luminaries. The products are imbibed with excellent features with a 2 years

18
warranty which Khaitan provides along with. All these products are produced in
huge volumes and are designed with the latest technologies.

Price The price is the amount a customer pays for the product. It is determined
by a number of factors including market shar e, competition, material costs,
product identity and the customer's perceived value of the product. The business
may increase or decrease the price of product if other stores have the same
product.

Khaitan offers a wide range of products at different pric es for various classes of
goods with respect to the prices of its competitors products.

Place Place represents the location where a product can be purchased. It is

often referred to as the distribution channel. It can include any physical store as
well as virtual stores on the Internet.

Khaitan has a good distribution channel in the Markets and mainly the purchases are
made in bulk.

Promotion Promotion represents all of the communications that a marketer

may use in the marketplace.

In our training, we promoted Khaitan products to Customers primarily by calling

and by distributing Brochures of product range.

19
 OBJECTIVE

MAIN OBJECTIVE: -

To know the views and perception of business professionals regarding

Khaitan as a Brand and its products feedback.
To analyze what market trends and Customer behavior is regarding its
demand and buying pattern.
To know what, why, where, when and how the Company procures the
products.
To forecast sales this is dependent on the cons umer response and their
feedback.
To know the customers response to the products.
To increase sales and growth in future.
To segment, target and position itself (company) according to the current
environment and need of the market.
For achieving my Objective of the report, I myself prepared a certain set of
questions to be asked from the consumers to know any future requirement of
any of the Khaitan appliances in future. Questions asked were relating to:
What kinds of products do you purchase?
What kinds of Brands you opt for?
For what purpose, you purchase it?
On what factors do you purchase the products?
When the requirement does arise?
So, for all the above questions the data has been collected and the contact
details have been taken of the concerned pe rson which would help the
company in analyzing the demand pattern and to maintain further contact
with the Customers.

20
 SCOPE Of THE STUDY

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

21
The organized retail industry in India is just 3% and it is growing at a faster rate because of

strong increase in income, changing lifestyle, and demographic patterns.

In the last 10 years, a huge growth has taken place in the consumer durables retail market.

Taking the present situation into account, one can see that the demand for consumer durables has

been increasing.

The increase in demand for consumer durables retail is because of the increase in disposable

income levels in families, since most families are based on a double income these days. The rise

in the levels of family income has transformed the visage of the Indian lifestyle which means that

most companies view India as a prime destination for consumer durables retail.

Most of the consumer durables retail market comprises of television sets, audio systems, VCD

players, washing machines, microwave ovens, air conditioners, toasters, juicer-mixer-grinders,

food- processors and so on. Though Indian consumer durables have been increasing in demand

within the domestic market, it has tough competition from international consumer durables

companies such as Sony, Samsung, LG, Philips, Usha, Maharaja, Black and Decker, . In fact,

according to the Indian Retail Sector analysis 2008-09, the size of the Indian consumer

durables and tech led industry is valued at Rs 35,000 crore.

The performance of the consumer durables retail is critical to the growth of the retail industry

of India. There are new ventures being forayed into by the big Indian companies. For instance,

we have the Speech and Software technologies, from the Tata Group which is working towards

the launch of consumer durables in India. TATA Croma is one of its retail outlets which is

proving itself as one of the major competitors in the retail market. The Tata Group has already

collaborated with Woolworths - an Australian company.

22
Such steps in the consumer durables retail sector would definitely facilitate the need for Foreign

Direct Investment. However, some international retailers have already started investing in the

Indian consumer durables market, such as Metro, Spa International, and Dairy Farm.

Among Indian companies, Pantaloons has already started its saga of consumer durables retail.

The commodities would constitute color televisions, washing machines, refrigerators, and

microwave ovens. The chain of goods will be available in Big Bazaar, Food Bazaar, Ezone,

Home Town, Electronic bazaar, which is also owned by Pantaloons.

It is quite a challenge to maintain the consumer durables retail market in India because of the

unprecedented challenges that are attached with it. However, the consumer durables retail market

in India is here to stay because of the new age tastes of the modern consumer in India.

Consumer Buying Behavior

Possibly the most challenging concept in marketing deals with understanding why buyers do

what they do (or dont do). But such knowledge is critical for marketers since having a strong

understanding of buyer behavior will help shed light on what is important to the customer and

also suggest the important influences on customer decision-making. Using this information,

marketers can create marketing programs that they believe will be of interest to customers.

As you might guess, factors affecting how customers make decisions are extremely complex.

Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make

things more interesting. Since every person in the world is different, it is impossible to have

simple rules that explain how buying decisions are made. But those who have spent many years

analyzing customer activity have presented us with useful guidelines in how someone decides

whether or not to make a purchase.

23
Buying Decision
Process

01. Need Recognition: -

The first stage of the buyer decision process in which the consumer recognizes a problem a need.

e.g. The need can be triggered by internal stimuli when one of the persons normal needs

hangers, thirst, Sex rises to a level high enough to become a drive. The need can be triggered

by external stimuli.

02. Information Search: -

The stage of the buyer decision process in which the consumer is around to search for more

information. The consumer may simply have heightened attention or may go into active

information search. The consumer can obtain information from any of several sources. I.e.

personal sources (family, friends, and neighbours) commercial sources (advertising

sales peoples dealers, packaging, displays). Public sources (mass media etc.)

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Experiential sources (handling, examining, using the product).

03. Evaluation of Alternatives:

The stage of the buyer decision process in which the consumer uses information to evaluate

alternative bounds in the choice set.

04 Purchase Decision: -

The stage of buyer decision process in which the consumer actually buys the product.

Two factors can come between the purchase intention and the purchase decision. The first factor

is attitudes of others.

The second factor is unexpected situational factor.

05. Post Purchase Behaviour:

The stage of the buyer decision process in which consumers take further action after purchase

based on their satisfaction or dissatisfaction.

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 Steps of report generation

Types of Data and data collection:

The research includes primary as well as secondary data.

Primary data: The primary data is collected through questionnaire,

interaction with customers. The primary data, which is generated by the
above methods, may be qualitative in nature (usually in the form of words) or
quantitative (usually in the form of numbers or where you can make counts of
words used).
Secondary data: The secondary data is collected through the daily sales
report. And Internet is also one of the main sources of the data collection.

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 Sampling: Judgmental Sampling is used here to fill up questionnaire and to
collect primary data.
Population of Interest: In this marketing research population of interest is
the customers visiting shopping complexes.
Sample Size: The sample size is 56

Research design:

Descriptive research design has been used in this study. A customers perception
regarding home appliances has helped us to know about this particular segment of
Khaitan Electricals ltd. This method enabled us to a clear view of outcomes,
opportunities and even the risk-oriented areas. To further analysis all these mention
effect in detail, descriptive method has been used which gave an insight of all the
possible reasons that are responsible for the growth of this segment. To further
facilitate the research, structured as well as unstructured questionnaire,
observations and consumer survey has been done. Focus group interview is also
taken.

Data Analysis Technique:

After collecting data, it is being analyzed using Microsoft Excel and Pie Chart.

Limitations of the study

Limited time was the major constraint of this study.

Sample size (which is 56) is also a limitation of this study as the sample may
or may not be the representative of the population.
Comparison of all brands was not possible be cause of non- availability of
every brands on the same floor.
Some consumers are not cooperative and some do not know what to say.

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 SWOT ANALYSIS

STRENGTH

1. Good brand image Nationwide.

2. Good quality of products.
3. Low price.
4. Wide range of products.
5. Consumer trust Khaitan a lot therefore is able to develop a long-term
relationship with its customers.

WEAKNESS

1. Weak distribution channel.

2. Low brand awareness of some products in Market.
3. Stock out problem is always prevalent.
4. High price of the products

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 5. Consumers are not fully satisfied with its after sales service.
6. There is ineffective personal or impersonal communication with the
customers or middleman in the channels of distribution.
7. Sales promotion technique and various trade promotion techniques like gi ft
offers, discounts, dealer contest, and push money are not taken care.

OPPORTUNITIES

1. Huge market to tap.

2. Collaboration with advertising agencies like newspaper advertising agencies.
3. People these days are ready to spend more on appliances.
4. Adopting new technology and becoming innovative in the society.

THREATS

1. Established competitors like Philips, Maharaja, Usha, etc.

2. Price war with established competitors.

COMPARITIVE ANALYSIS

Before doing comparison, I have taken few products of few brands from each
category of Home Appliances and these products are having similar or almost
similar attributes. The name and the specific attributes of these products are
discussed below.

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Product Features: -

Category Name: - IRON

Khaitan Philips Usha Maharaja

Soleplates Non stick coated Gold American Coated soleplate Non stick coated
heritage coated
Auto cut Off
Self Cleaning
Double active calc
system
Dual Voltage
Wattage 1300W 1200W 1300W 1400W

Category Name: - MIXER GRINDER

Khaitan Philips 1632 Usha Maharaja

Chutney Grinding
Number of Blades 4 4 4 4
Chutney Blade
Number of Jars 2 3 3 3

Chutney Jar
Material of Jars
Plastic & Shock proof
Polycarbonate Polycarbonate
Stainless plastic
And Stainless Steel Jar
Steel Body
Juicer Accessories Pulp Container Detachable pulp
Pulp Container Pulp Container
and Food Pusher Collector
Stirrer Cum
Scraper
Cord Winding
Material of Lid Polycarbonate Plastic Plastic Plastic
Motor Type Universal Heavy Duty Universal Plastic
Type of Switch Piano Type Piano Type
Rotary Switch Rotary Switch
Switch Switch

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Power
Consumption
550 500
(Watts) 500 500

Category name: - AIR COOLER

Khaitan Usha Dolphin Maharaja

Voltage 230V 230V 250V

Wattage 240W 240W 240W

RPM 1350 1400 1350

Water Tank Capacity 40 Litres 32 35

Rust proof all plastic body

Auto water level controller

Air Throw Distance 30 ft. 32 ft. 30 ft.

Air Delivery 3000 M3/hr 3250 M3/hr 2850 M3/hr

Cooling Area 600 sq. ft. 600 sq. ft. 600 sq. ft.

Ice chamber

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 QUESTIONNAIRE ANALYSIS

Before we analyzed the data we have collected through questionnaire fill up by

respondent, we will discuss the demographic factors related Respondents. Total no
of our Respondents is 56.

1. Discussion about the sex ratio of our respondents.

Particulars No. of respondents Percentage (%)

MALE 27 48

FEMALE 29 52

48% 52%

Female
Male

Interpretation: From the above study 48% of respondents are male and 52% of
respondents are female.

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 2. Age of respondents.

Particulars No. of respondents Percentage %

Between 15-25 33 59

Between 25-35 9 16

Between 35-45 7 12

Above 45 7 13

13%

12%
15-25
25-35
35-45
59% Above 45
16%

Interpretation: From the above pie chart, we can say that our maximum
respondents are from 15-25 age group i.e. 59%.

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 3. RELATIONSHIP STATUS OF THE RESPONDENTS.

Particulars No. of respondents Percentage %

Married 33 59

Unmarried 23 41

41%

59%
Married
Umarried

Interpretation:

From the above pie chart 59% of our respondents are married and 41% of our
respondents are unmarried.

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 4. OCCUPATION OF RESPONDENTS

Particulars No. of respondents Percentage %

Student 24 43

Self Employed 19 34

Employee 13 23

23%

43%

Employee
Self Employed

34% Student

Interpretation: From the above pie chart 43% of our respondents are student, 34%
are self-employed and 23% are employee. Being a student mostly I can reach PGs
and Hostels.

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 5. COMPANY PRODUCTS MOSTLY PREFERED

Particulars No. of respondents Percentage %

Usha 8 14

Philips 24 43

Khaitan 18 32

Maharaja 6 11

Usha
14%
Khaitan
32%

Philips
43% Maharaja
11%

Interpretation: From the study of 56 respondents 43% of the consumers prefer

Philips products, 32% prefer khaitan, 14% prefer Usha and 11% prefer Maharaja.

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 6. PEOPLE COME TO KNOW ABOUT KHAITAN

Particulars No. of respondents Percentage %

T.V. 19 34

Internet 26 46

News paper 11 20

T.V.
34%
Internet
46%

Internet
News Paper
T.V.

News Paper
20%

Interpretation: From the above study 46% of respondents from Internet, 34% of
respondents from T.V. and 20% of respondents from newspaper.

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 7. Khaitan satisfying consumer demands.

Particulars No. of respondents

Yes 22

No 34

35

30

25

20

15

10

0
No Yes

Interpretation: From the above chart, out of 56 respondents 34 are saying No and
rest 22 are saying Yes.

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 8. Celebrity endoresment to buy a product.

Particulars No. of respondents Percentage

Yes 24 43

No 32 57

43%

57%
No
Yes

Interpretation: From the above study of 56 respondents 32 respondents are saying

no that celebrity endorsement does not matter them to buy a product and rest 24
respondents are saying yes.

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 9. Outlet prefer by the customers to buy a product.

Particulars No. of respondents Percentage

Authorized dealers 24 43

Company showrooms 8 14

Modern retail chains 13 23

Nearby retailers 7 13

Online retail 4 7

25

20

15

10

0
Authorised Company Modern retail Near by Online Retail.
Dealers showrooms chains Retailers

Interpretation: From the above study, maximum no. of people prefers Authorized
dealers to buy a product i.e. 24 out of 56 and 4 out of 56 prefers online retail to buy
a product.

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 10.Factors look into the product while purchasing any home appliances.

Particulars No. of respondents Percentage

Price 5 9

Quality 11 20

Design 2 3

Features 6 11

All of the above 32 57

20%

9%
All of The Above

57% Design
Features
11% Price
Quality

3%

Interpretation: From the above pie chart 20% of respondents check quality, 11%
of respondents check features, 9% of respondents check price, 3% of respondents
check design and 57 % of respondents check all these factors while purchasing a
home appliances.

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 11. Purchasing decision for home appliances in your home.

Particulars No. of respondents Percentage

Parent 11 20

Joint decision 30 53

Myself 15 27

20%

53%
Joint Decision
27%
Myself
Parent

Interpretation: From the above pie chart 30 out of 56 respondents are saying that
they prefer joint decision in their home while purchasing home appliances in their
home.

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 12. Recommend others to buy khaitan home appliances.

Particulars No. of respondents Percentage

Yes 34 61

No 22 39

NO
39%
Yes
61%

NO
Yes

Interpretation: From the above pie chart 34 out of 56 respondents are saying yes
that they recommend other peoples to buy khaitan home appliances.

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 Findings

As per our findings we can say that all peoples are aware about the khaitan
home appliances.

As per our findings 52% of our respondents are female.

The customers who were mainly age group of 15 -25 buy home appliances.

As per our findings 59% of our respond ents are married and buy home
appliances.

It has been found that the majority of our respondents uses Philips home
appliances in comparison of other companies.

It has been found that majority of the respondents come to know about the
khaitan by Internet and Television. We can say that internet plays an
important role in peoples life.

As per our findings 34 out of 56 respondents are saying that khaitan is not
satisfying consumer demands.

As per our findings 57% of our respondents are saying that celebrity
endorsement does not matter them to buy a product.

As per our findings 43% of our respondents prefer Authorized Dealers to buy
a product.

As per our findings 57% of our respondents are saying that price, quality,
design, features are important factor in pur chasing any home appliances.

As per our findings 53% of our respondents saying that they take joint
decision in their home while purchasing home appliances.

As per our findings 61% of our respondents are saying that they recommend
others to buy khaitan home appliances.

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 Suggestions

First of all, we would like suggest the more availability of Khaitan product in
store. I noticed that in most of the store Khaitan Promoters complained about
the shortage of the product. Because of shortage of the Khaitan product many
customer either return or tend to another brand.

Ensure there is widespread distribution of Product brochures in the retail

stores.

The colour of Every Home appliances is of White color, so Khaitan can bring
variety in colour, they can launch Black or Grey colour Model specially those
Home appliances which are used in Kitchen, like mixer grinder, juicer,
microwaves, toaster because White colour products become dirty and not so
easy to maintain.

Training Should be provided to Khaitan Promoters at regular interval and at

the time of new Product launched

Khaitan should concentrate on CRM, and should maintain a data base of

customer choice and preference so that they can satisfy the need of
customers.

Talking about Khaitan Home Appliances, though t he product has been

targeted for its premium segment but price should be of affordable range or
else varieties should be provided i.e. different range should be made
available (in products).

Collaboration with advertising agencies can be made which wi ll help in

promoting its products.

The most important thing which they should do is to improve the after sales
service, which is very poor.

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