Blue Star Custmer Satisfctn2.2 | Customer Satisfaction | Survey Methodology



Satisfaction is a person feeling of pleasure or disappointments resulting from comparing a product perceive performance or outcome in relation to his/her expectation. As this definition makes clear, satisfaction is function perceive performance and expectations. If the performance falls short of expectations the customer is dissatisfied. If the performance matches the expectation the customer is satisfied. If the performance exceeds expectation the customer is highly dissatisfied. Buyers form their expectations from past buying experience, friends and associates, advice marketers & competitor information and promises. If marketer raises expectations too high, the buyer is likely to be disappointed. Some of today’s most successful companies are raising expectations and delivering performance to match. These companies are aiming for TCS (Total Customer Satisfaction). Some companies guarantee total customer satisfaction and will replace at its expense any dissatisfied customer’s equipment within period of many years after purchase. Study shows that although customers are dissatisfied with one out of every four purchases, less than 5% of dissatisfied customers will complain. Most customers will by less or switch suppliers. Complaints levels are thus not a good measure of customer’s satisfaction. Responsiveness companies’ measure Customer’s satisfaction is closely linked to quality in recent years. Many companies have adopted Total Quality Management (TQM) programs, designs to constantly improve quality of their products, service & marketing processes. Quality has an impact on product performance and hence on customer satisfaction.


• • • •

To study and compare the customer satisfaction of maruti suzuki motor with other brands. To know about the post sales service provided by the dealer. To find out the overall experience of the customers with reference to MITHRA Maruti Agency. To find out whether the vehicle details were made known to every Customer or not.


Research Design Sample Design Type of universe Sampling unit Size of the sample Type of sampling Type of question Type of questionnaire Type of scaling : Descriptive Research : Consumer : Hyderabad : 100 : Simple random sampling : Open-ended and Close-ended : Structure disguised : Nominal, Ordinal, Interval scale

a. Primary Source: This was the main source of data. The data was obtained from individual respondent through a questionnaire. b. Secondary Source: The use of secondary data is made in knowing the industry trends and market share of individual company.

Data was collected from primary sources. The instrument used for this purpose was a structured questionnaire, which was formatted in such a way that it was clear and easy for the respondents to understand and it had optimum number of questions. The questionnaire method was chosen for this research because collection of behavioral data was the key objective of this research.

The geographical scope of study is confined to the city of Hyderabad. The various customers were met to find out their perception towards the various elements that satisfies the customer. This study given me a wonderful opportunity to meeting different customer of four wheeler companies and get a great practical exposure of working with them.

The study could not be conducted on a large sample size and area Because of time constraint. The number of sample size is respondents and the study is confined Only to the Hyderabad confined limits. The study is time bound & would be applicable to the current Findings of the study.

With the recent influx of different brands in today’s four wheeler auto segment each striving to satisfy customers with the end results of maintaining loyalty, at present cars as such have become necessity but not a nicety. With this out look of today’s market it is even a layman’s perceptive that Ford itself reflects a satisfied customer. Keeping in mind curriculum requirement & organizational requirement the study has been conducted to find out customer satisfaction towards BLUE STAR products. However, due to time constraints an in-depth study could not be undertaken.

Whether the buyer is satisfied after purchase depends on the offer performance in relation to the buyer’s expectations. Satisfaction is a person feeling of pleasure or disappointments resulting from comparing a product perceive performance or outcome in relation to his/her expectation. As this definition makes clear, satisfaction is function perceive performance and expectations. If the performance falls short of expectations the customer is dissatisfied. If the performance matches the expectation the customer is satisfied. If the performance exceeds expectation the customer is highly dissatisfied. Many companies are aiming for high satisfaction because customers who are just satisfied still find easy to switch when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional bond with the bond, not just a rational preference. The result is high customer loyalty. Senior management believes that a very satisfied that a very satisfied or delighted customer is worth ten times as much to the company as a satisfied customer. A very satisfied customer is likely to stay in company for many more years and by more than a satisfied customer will. Buyers form their expectations from past buying experience, friends and associates, advice marketers & competitor information and promises. If marketer raises expectations too high, the buyer is likely to be disappointed. Some of today’s most successful companies are raising expectations and delivering performance to match. These companies are aiming for TCS (Total Customer Satisfaction). Some companies guarantee total customer satisfaction and will replace at its expense any dissatisfied customer’s equipment within period of many years after purchase.

For customers centered companies, customer satisfaction is both a goal and a marketing too. Companies that achieve high customer satisfaction rating make sure that the target market knows it. Study shows that although customers are dissatisfied with one out of every four purchases, less than 5% of dissatisfied customers will complain. Most customers will by less or switch suppliers. Complaints levels are thus not a good measure of customer’s satisfaction. Responsiveness companies measure customer satisfaction directly by conducting periodic surveys. They sent questionnaire or make telephone calls to random sample of recent customers. They also solicit buyer’s view on their competitor’s performance. While collecting customers satisfaction data kit is also useful it ask additional questions to measure repurchase intention, this will normally by high if the customers satisfaction is high, it is also useful to measure the likelihood or willingness to recommend the company and the brand to others. High positive word-of-mouth score indicates that the company is Producing high customer’s satisfaction. When customers rate their satisfaction with the element of company’s performance like delivery. The company needs to recognize that customer vary in how they define good delivery. It could mean early delivery on time delivery, order completeness and so on. Yet if the company had to spell out every element in detail customers would face huge questionnaire the company must also realize that customers can report being satisfied for different reasons. One may be easily satisfied most of the time and other might be hard to please, but was pleased on this occasion. Company should also note that managers and sales people could manipulate customer’s satisfactions rating. They can especially nice to customers just before the survey. They can also try to exclude Un-happy customers from the survey. Another danger is that if the customer knew that the company would go out it way to lease customers. Some express high dissatisfaction (even if satisfied). In order to receive more concessions. Some companies navigate all these pit falls to reach their customers value and satisfaction goals. We call these companies high-performance business.

Customers satisfaction depends on the products perceive performance in delivery value relative to buyer’s expectations. If the product performance falls short of customer expectations, the buyer is satisfied. Outstanding marketing companies go out of their way to keep their customer satisfied. Satisfied customer may report purchase and they tell us about their good experience with the product. The key being to match customer’s expectations with company performance. Smart companies aim to delight customers by promising only what they can deliver then delivering more than they promise. Customer’s satisfaction is closely linked to quality in recent years. Many companies have adopted Total Quality Management (TQM) programs, designs to constantly improve quality of their products, service & marketing processes. Quality has an impact on product performance and hence on customer satisfaction.

Customer satisfaction definition:
Customer satisfaction, commonly abbreviated CS, is a business term which is used to capture the idea of measuring how satisfied an enterprise's customers are with the organization's efforts in a marketplace. It is seen as a key business performance indicator and is part of the four perspectives of a Balanced Scorecard. Every organization has customers of some kind. The organization provides products (goods and/or services) of some kind to its customers through the mechanism of a marketplace. The products the organization provides are subject to competition whether by similar products or by substitution products.

Reasons to Monitor Customer Satisfaction:
The reason an organization is interested in the satisfaction of its customers is because customers purchase the organization's products. The organization is interested in retaining its existing customers and increasing the number of its customers.

Measuring Customer Satisfaction:
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Berry, Brodeur between 1990 and 1998 defined ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction “gap” which is objective and quantitative in nature. work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. According to Gar brand, customer satisfaction equals perception. The usual measures of customer satisfaction involve a survey instrument with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of the performance of the organisation being measured.

Today, customer satisfaction is the mission of most companies. Companies like Dell have made make-to-order products and direct sales their differential advantage in increasing customer satisfaction. Operational strategies can now be structured for attaining high levels of customer satisfaction at relatively low costs. Innovations in online information access, creative product design, flexibility, outsourcing, postponement, dynamic pricing, and reactive-capacity have been the major enablers of managing manufacturing-supply networks. However, the choice of positioning a firm along the dimensions of customer satisfaction and total delivered cost, and its implications for operational strategies, are not yet clear.

Blue Star is India's largest central air-conditioning company with an annual turnover of Rs 2270 crores, a network of 24 offices, 5 modern manufacturing facilities, 650 dealers and around 2500 employees. Blue Star has business alliances with world renowned technology leaders such as Rheem Mfg Co, USA; Hitachi, Japan; Eaton - Williams, UK; Thales e-Security Ltd., UK; Jeol, Japan; ISA, Italy and many others, to offer superior products and solutions to customers. The Company has manufacturing facilities at Thane, Dadra, Bharuch, Himachal and Wada which use state-of-the-art manufacturing equipment to ensure that the products have consistent quality and reliability. Blue Star fulfills the air-conditioning needs of a large number of corporate and commercial customers and has also established leadership in the field of commercial refrigeration equipment ranging from water coolers to cold storages. Blue Star's other businesses include marketing and maintenance of hi-tech professional electronic and industrial products. Blue Star primarily focuses on the corporate and commercial markets. These include institutional, industrial and government organizations as well as commercial establishments such as showrooms, restaurants, banks, hospitals, theatres, shopping malls and boutiques.

• • • • • • • • • • • • To deliver a world class customer experience. Focus on profitable company growth. Be a company that is a pleasure to do business with. Work in a boundary – less manner between divisions to provide best solutions to customers. Win our people’s hearts and minds. Place the company’s interest above one’s own. Encourage innovation, creativity and experimentation in what we do. Build an extended organisation of committed business partners. Be a good corporate citizen. Honour all personal and corporate commitments. Maintain personal integrity. Ensure high standards of corporate governance.

Blue Star was founded in 1943, by Mohan T Advani, an entrepreneur of exemplary vision and drive. The Company began as a modest 3-member team engaged in reconditioning of air conditioners and refrigerators. An expanding Blue Star then ventured into the manufacture of ice candy machines and bottle coolers and also began the design and execution of central air-conditioning projects. Then came the manufacture of water coolers. In 1949, the proprietorship company set its sights on bigger expansion, took on shareholders and became Blue Star Engineering Company Private Limited. Ever since, there has been a constant and profitable growth. Blue Star diversified and took up agencies for Material Testing Machines and Business Machines. The export arena beckoned and the Company began exporting water coolers to Dubai, where in fact, 'Blue Star' soon became the generic name for water coolers. The sixties and the early seventies witnessed Blue Star continuing to expand and thrive. A team of dedicated professionals aided Mohan T Advani in ever furthering his vision of a profitable company dedicated to its ideals of professionalism and success. Employee strength crossed the 1000 mark and the company went public in 1969 to become Blue Star Limited, as it continues to be called today. Blue Star crossed the Rs. 500 crore milestones in 2000 and the Rs. 600 crore milestones in 2002-03. With the boom in construction activity and increased infrastructure investments, the Company leveraged its leadership position to grow aggressively. In the following three years, the Company nearly doubled its turnover, clocking Rs 1178 crores in 2005-06.

Even more than size, Blue Star enjoys an enviable reputation as an ethical corporation, ever mindful of its obligations towards customers, shareholders, dealers, business partners, employees and the environment in which it operates.


Year 1943 1946 1947

Event Mohan T Advani establishes Blue Star Engineering Company as a proprietary firm Blue Star secures Melchior Armstrong Dessau agency Worthington selects Blue Star as Indian Partner. Manufacturing of ice candy machines and bottle coolers begins. Central airconditioning system design and execution begins Manufacture of water coolers commences Proprietorship converted to Private Limited Companies Blue Star selected as distributor for Honeywell GDR Testing machines distributorship begins Perkin-Elmer tie-up marks the start of the electronics business. GDR business machines agency commences Total Income crosses the Rs 1 crore mark Total employment crosses 1,000 Techniglas Pvt Ltd set up to manufacture insulation material Factory moves from Colaba in Mumbai to Thane Hewlett- Packard distributorship commences First skyscrapers of Mumbai – Air India Building, Express Towers and Oberoi Hotel set-up – all air-conditioned by Blue Star Total Income crosses Rs 10 crores. Employment crosses 2,000 Water Cooler manufacturing license granted to Yusuf Alghanim, Kuwait Middle East thrust begins. Joint Venture (JV) with Al Shirawi in Dubai Hitachi Medical Equipment distributorship begins Industrial Division commences activity Bharuch Factory set up Major AC and R projects executed in the Middle East International Software Division inaugurated in Seepz York technology collaboration begins Manufacture of centrifugal packaged chillers commences at Thane Plant Total Income crosses Rs 100 crores Yokogawa Blue Star JV formed Gandhinagar factory set up for EPABX systems Blue Star becomes India’s largest central air-conditioning company Manufacturing collaboration with Mitsubishi

1948 1949 1954 1955 1957 1960 1964 1965 1969 1970 1972 1972 1974 1977 1977 1978 1980 1980-86 1983 1984 1985 1986 1987 1987 1988 1988

Blue Star understands that skilled manpower and other staff members are an indispensable part of the manufacturing set-up and the management should work shoulder to shoulder with them. Management grade staff too is put through training programs on various aspects of manufacturing and business. Also, performance awards are announced every year. Apart from enhancing the skills of the staff, such initiatives create a positive, firm and lasting emotional bond between staff and company. This in turn contributes to greater productivity.

The factories make extensive use of IT to enhance productivity and product development capabilities. All our factories are ISO 9001: 2000 certified BAAN ERP implemented in 3 factories and Himachal under implementation.

Sheet metal fabrication: A high degree of repetitive accuracy in sheet metal fabrication is achieved by using specialized equipment, CNC metal forming machines. The raw material used is prime quality, corrosion-resistant, galvanized steel for enhanced life of the product. The

equipment used for processing the steel includes CNC machines such as an Amada turret punch press, a LVD / Amada hydraulic press-break. All these allow for high quality cabinet fabrication within tight tolerances. Power coating plant: The state-of-the-art powder coating plant covers a wide range of very specialized process equipment, and is fully automated. A water-softening unit treats the raw water before it is utilized in the automatic hot spray pre-treatment system. It provides an even distribution of chemicals, controlled by an auto dosing mechanism that maintains the chemical bath composition with the help of electronic sensors. After a final mineral water rinse, the components pass through a dry-off oven under dust-free conditions to remove all traces of moisture. The components are then transferred into the powder painting booth for coating, where temperature, humidity and dust levels are controlled. The powder painting equipment, supplied by Nordson, USA, is equipped with automatic electromechanical oscillators, for even powder deposition. Desiccant dry air-with a dew point of minus 40 0 C - helps avoid any moisture contamination of the powder. A 'smart spray' mechanism senses the conveyor movement and component geometry to adjust powder flow. Polyester powder - ideally suited for out door applications - provides the maximum protection against UV deterioration and corrosion. The components finally pass through a temperature-regulated curing oven to achieve desired gloss and surface hardness.

Heat exchangers: Experienced engineers create heat exchanger designs using high precision design software, which are then validated in our test labs. Blue Star also makes sure that the designs are energy efficient for optimum heat transfer.

Fin and Tube: The sophisticated coil shops have some of the most advanced machines from USA, Japan and Korea. The Burr Oak coil line produces energy efficient DX heat exchangers. These have plain or enhanced split fins with grooved copper tubes for maximum heat transfer efficiency. Then the source plain and inner grooved copper tubes with coated aluminum fin stock of international quality from leading manufacturers to fit our specifications. Shell and Tube: Blue Star has shell and tube exchangers using specially enhanced surface copper tubes and shell design as per Blue Star or TEMA standards. Blue Star uses Heat Transfer Research Inc. (HTRI design software for these heat exchangers). Plate Type: Blue Star products also incorporate stainless steel plate heat exchangers for specialized process applications. System tubing: 3-axis CNC copper tube-bending machines from Japan fabricate wrinkle-free system tubing to exact dimensions for a perfect stress-free fit. Special purpose machines carry out operations like end closing, flaring and forming for good joint formation. Prime quality copper tubes sourced globally help in optimum product performance.

Brazing: The brazing process is carried out in an inert atmosphere to avoid oxidation and the resultant impurities from contaminating the refrigerant system. Specially selected brazing equipment and fixtures are used to produce high quality brazing. The joints are pressure-tested to check weld strength and leakage. The coils are then tested for fine

leaks with ultra-sensitive electronic leak detectors. An automated coil brazing line from Korea ensures consistent quality brazing and leak proof joints. PUF installation: Blue Star fabricates CFC-free PUF insulated panels by using the latest equipment from Cannon. This enables to achieve a uniform and constant density of insulation for air handling units, telecom shelters and cold storage panels. Blue Star supply panels of up to 6 meters in length and 25 mm to 125 mm in PUF thickness. PUF insulation expertise finds use in a wide range of applications such as Air Handling Units, water coolers, deep freezers, reach-in coolers and mortuary chambers. Assembly and testing: The final product is assembled sequentially on conveyors, with in-built quality checks during assembly operations. Pneumatic tools permit torque-controlled rigidity, and specially coated corrosion-resistant hardware provides firm locking. Each machine is then electronically tested for leaks and run-tested for performance and electrical safety parameters before packaging.

Central air-condition:

The building blocks of Blue Star’s solutions are its products. The most comprehensive range of air-conditioning products in the country. A wide range of models are available in each product category to ensure that the air-conditioning system design is implemented without any compromise. All products have been designed on the energyefficiency platform, and offer a host of advanced features.

Room air conditioners: By being an expert in the area of central air-conditioning, it also helps us understand the cooling requirements of a diverse range of applications. This expertise, knowledge and the skills have helped us to have some of the most technologically advanced and energy efficient air-conditioning solutions for small spaces. Commercial Refrigeration: Having been the leaders in commercial refrigeration, we have a wide range of products catering to various small and large scale industries

Cold storages: Blue Star’s Cold Storage Division offers us a wide range of cooling and preservation solutions. Solutions tailored made to suit any industry that requires storage of perishable produce over extended periods of time without suffering any loss of quality

– be it in look, feel, touch, taste or chemical composition. Industries that find Blue Star’s cold storage solutions enormously useful include the agriculture sector including horticulture and floriculture units, manufacturers of fresh produce of any kind, food processing units, pharmaceutical industries, seafood and other similar industries, as well as the dairy and hospitality sectors, including hotels, restaurants, and eateries. Specialty Cooling Products: Blue Star has developed specialized products for process applications, IT/ITES, telecom and the dairy industry. It has diverse experience and have a deep understanding of the demands on air-conditioning and refrigeration in each industry. This knowledge and domain expertise has helped in designing and manufacturing a range of specialized products which ensure that critical applications work seamlessly. Research & Development: Blue Star offers complete engineered products and solutions with differentiated features. With the extent of climatic conditions varying across the nation, our products are designed to suit the specific local conditions. Considering the shortfall of Electricity supply, all the products are designed for energy efficiency. Blue Star products are most preferred in the domestic market because of energy efficiency features. In the offer, they are widest range of products for varying applications. This is possible due to extensive research and development that goes behind the products.

All our factories are equipped with robust R&D facilities and a lot of importance is given towards continuous up gradation. Currently R&D team constitutes nearly 20% of the manufacturing division work force. This is a testimony to the significance that R&D has in the product development process at Blue Star. R&D team is encouraged to update with the latest techniques and processes in the field and thus are sent to various

exhibitions / site visits across the globe. Consultants from various industries are also hired for specific industrial design projects. Blue Star also believes in associating itself with leading global organizations that have done path breaking work in the field of innovations. The company also has tie-ups with reputed companies for knowledge sharing and technical institutions like IIT, Mumbai, where individual projects are executed. R&D at Blue Star also handles customer specific requirements, which require tremendous amount of expertise in that particular domain. Software that R&D team has deployed and which is used on a regular basis - ProEngineer, Solid Edge, AutoCAD, Pro Mechanics, R&R, HTRI, Mechanical Desktop, Rhino, Alias, CATIA, IDEAS, Solid Works, Patran, Hypermesh, Femap, Ansys, Nastran, Fluent, Flow Mechanica and Moldflow. Software packages including those for system design, air handling unit selection and heat exchanger optimization.

Blue Star has associated itself with global knowledge partners who have been leaders in specific product manufacturing. Through this partnership, Blue Star has been able to command a leadership position in the domestic market. Blue Star initially tied-up with York in the mid 1980s. It has been able to leverage this expertise and learning to manufacture its own Chillers. We now manufacture our own range of Screw, Scroll and Process Chillers. For Cold Rooms, Blue Star had tied-up with Kolpak, USA and Heat Craft for Freezing Units. Rheem, USA not only provided technical support for building the world class Dadra manufacturing unit, but also shared technical expertise. The foray in precision equipment business was achieved with support from Eaton Williams. Blue Star now manufactures Precision Control Packaged Units for domestic and global markets.

In keeping with its win-win approach, Blue Star treats its vendors as not just suppliers, but as business partners and tries to build long term associations that are

profitable both to the suppliers and to Blue Star. In line with this thought, Blue Star has entered into long term arrangements with its key suppliers, many of whom are world leaders. For instance, Blue Star sources its Switchgears from Siemens, Compressors from Danfoss of Netherlands and Refrigerant from DuPont. General Electric Corp of USA provides Motors, while Hanbell of Taiwan supplies Screw Compressors. Copeland of USA assists in System Design. Over the years, Blue Star has built a strong network of suppliers around it. Not only that, the company also helps in the development of its smaller suppliers by providing various business related and technical inputs to them. For instance, since the vendors are also manufacturers, they will benefit from some of the good manufacturing practices that Blue Star adopts. Blue Star has educated a number of small vendors on the importance of ISO certification and encouraged them to get certified within a certain time period. This approach has greatly boosted the morale of vendors and firmly bonded them with Blue Star. Also, it ensures that the suppliers walk side-by-side with Blue Star on the path to growth.


Blue Star has been exporting its products to the Middle East for over two decades. Blue Star products have stood the test of time in some of the most difficult climatic conditions in the world such as UAE, Qatar, Bahrain, Oman and Kuwait. On offer it has a comprehensive range of products such as chillers with screw and hermetic scroll compressors, a wide range of air handling and fan coil units, duct able packaged and duct able split air conditioners including the heat pump versions. Blue Star also offers unitary products such as window and split air conditioners, deep freezers, cold rooms, water coolers and specialized air conditioners for precision control applications, Variable Refrigerant Flow (VRF) Systems with digital scroll technology and process chillers with frequency modulation. These world-class products are manufactured at our state-of-theart manufacturing facilities in India. All the manufacturing facilities are ISO 9001: 2000 certified, and are powered through integrated Enterprise Resource Planning (ERP) software. Moreover, most of the products go through stringent tests on reliability and performance in our test labs.

SUPPLY CHAIN MANAGEMENT: Rapid growth coupled with volatility of input costs necessitated an agile and adaptable supply chain. The Blue Star focused on both the efficiency and responsiveness of all aspects of the supply chain by improving all round execution capability. A combination of short term and long term view along with the support of business associates helped the Company tide over the uncertainty and turbulence of increasing input costs. The supply chain adequately met the increased demands of the market place supporting greater channel and project business success.


Blue Star has around 180 systems dealers who exclusively deal in the Company's systems businesses consisting of packaged air conditioning and cold rooms. These dealers are provided technical expertise, installation and service competence of a high order. On the other hand, room air conditioners and refrigeration products, which are simple to install, are sold through a larger network of approximately 600 dealers. Most of them deal exclusively with Blue Star products in the HVAC domain. A few are multibrand, multi-product dealers. The Company has established a Channel Management Centre to oversee the policy framework, certification and development of dealers and also put in place a Training Department for training channel partners. During the year, the Company implemented a number of initiatives in order to strengthen the competence of the dealer channels and make them more robust. A Management Development Program (MDP) for systems dealers was held to impart the essentials of managing a business professionally. Systems dealers were also put through a Sales Management training programme in order to enhance their sales competence.


Blue Star takes pride in the fact that the invaluable technical and business knowledge it has acquired in 65 years as an organization in the field of air conditioning and refrigeration is perhaps the richest in the country. During the review period, with the substantial increase in business volume, the Company increased its total head count to 2565 (including the absorbing of 124 employees from Nasser Electricals) as on March 31, 2008, an increase of 18% over the previous year, while Net Sales grew by 39%. Organizational productivity continued to grow in terms of sales per person and value added per person. The focus on people development continued at the same pace with special attention to developing the technical skills of dealers and business associates. Training in soft skills for Blue Star employees was enhanced with the introduction of some new training programmes. In order to sustain the positive culture of the Company, a new corporate programme was introduced called 'The Blue Star Way'. This programme is intended to create an awareness of, and strengthen the Blue Star Way of working. A 360-degree feedback system continued to be used to measure behavior of Senior Managers pertaining to the Corporate Values and Beliefs. Environment, Health & Safety (EHS) has gained relevance as a new management discipline in recent times. In order to improve its performance in the EHS domain, the Company decided to provide a corporate focus by creating a new department called 'Environment, Health & Safety'. The EHS Department will be responsible for creating standards and conducting workshops to sensitize all employees and business partners on the EHS norms to be followed in the course of business. The Welfare initiatives include providing life insurance cover to all employees through HDFC Standard Life Insurance, annual medical check-ups for employees above the age of 40 years, and the Company subsidizing the medical insurance premium for dependent parents.

The Mohan T Advani Education Trust disbursed scholarships to employees' children pursuing higher professional education while Blue Star Sahayata Foundation extended financial assistance to a number of deserving cases for mitigating emergency

medical expenses. Harmonious and constructive relations between the Management and workmen helped to maintain a cordial work atmosphere and achieve business growth.

Blue Star has made significant progress towards minimizing and even eliminating the environmental hazards resulting from CFCs in certain refrigerants used for cooling. As a matter of fact, Blue Star is one of the few companies selected in India for funding by "The Multilateral Fund for the implementation of the MONTREAL PROTOCOL". Blue Star has already introduced 'ozone friendly' centrifugal chillers using HCFC-123, the safe refrigerant replacing CFC-11. Blue Star also markets absorption chillers which use water as refrigerant. All Blue Star reciprocating chillers already use HCFC-22 refrigerant which is friendlier to the environment than the older R-12. The Company actively promotes wider use of large refrigeration systems using ammonia as the refrigerant. In fact, Blue Star is a member of the International Institute of Ammonia Refrigeration, USA.

Social initiative:
Blue Star firmly believes that organizations must look beyond making profits and should contribute to the development and welfare of the society. This attitude is most evident in the outreach initiatives organized by Blue Star's factories. Blue Star factories take active participation in providing temporary shelters and essentials for the victims of an earthquake, sponsoring health check-ups and health education programs in local schools. The families of operators are an integral part of social development. Blue Star gives them appropriate advice on personal matters, financial and investment matters. The family members are also imparted training on diverse subjects. They are taught English as well.

Environmental initiative:
Blue Star's factories have been exquisitely landscaped with lawns and flowering plants dotting the campus. Trees have also been planted on a proactive basis even outside the Blue Star factories. As a responsible organization, special ETP plants are installed to dispose off the wastes generated. Additionally, all our factories are designed for rain water harvesting. RISKS AND CONCERNS RISKS: The Company has in place an effective Risk Management framework under which all internal and external risks across the various businesses and functions are periodically identified, assessed and acted upon by the risk owners to minimize and mitigate their impact. These processes are also periodically reviewed to ensure their effectiveness. The Company continues to satisfactorily address the various financial risks relating to interest rates, exchange rates and credit risks as well as operating risks arising out of high input costs, changes in technology, customer preferences, increasing size and complexity of contracts and competitive pressures. CONCERNS: While the strong fundamentals of the Company and it's sound financial base have placed it in a strong position to face the vagaries of the market, the overall uncertain economic scenario coupled with local and global inflation and the high price of oil are causes for concern and consequently a slow down in the economy could impact the growth of the Company to some extent in the coming year. The Company will continue to remain vigilant and will proactively take steps to mitigate the adverse impact, if any, arising out of these concerns.


The benefit of a mature business organization with 65 years of operational excellence is that there are several good systems in place. From a prospective employee point of view, Blue Star offers the following advantages:

There are well designed induction and technical orientation programmes. There is a Corporate Technical Training Organization which delivers a variety of technical training programmes for the AC&R business. Engineers who join the Electronics Division get a chance to go abroad for training with the Principals. The Corporate HR runs a menu of non-technical soft skills training programmes such as Business Communication Skills and Business Etiquette.

The Blue Star Company has many well designed, time tested HR practices such as setting the performance objectives at the beginning of the year, reviewing employee performance every year through an annual appraisal system and an annual compensation review based on market surveys. In addition to a market aligned salary structure, Blue Star also has a fairly attractive incentive scheme wherein, the employee gets an incentive based on his department’s performance coupled with his own performance rating.

Typically, graduate engineers can look forward to entering real managerial grades within 4 to 5 years. Once an employee enters the managerial grade, he is exposed to a variety of management education programmes including some programmes at IIM. Ahmedabad.

Last, but not the least, Blue Star rightly boasts of the Blue Star Way, which is founded on a set of values and beliefs which have evolved over time. These beliefs have made Blue Star a highly respected, secular organization. The Company has an excellent track record of employees working for many decades with the Company. In today’s high attrition market, the Company continues to enjoy the privilege of retaining many of its employees for many decades, thanks to its positive work culture.

The company lays stress on continuously upgrading the skills of operators, so that they keep increasing their productivity in the face of changing manufacturing

practices. Operators are put through training programs, on passing which they are given certificates. In the long term, these certificates also become a yardstick for measuring employee performance. Learning through cross functional activities is encouraged. In addition to that, staff members and operators are encouraged to exercise yoga, play sports and participate in community development initiatives. This helps in the overall development of the individual and improves performance. Kaizen and 5S are an integral part of all factory operations.

Since engineering and technical expertise are at the heart of the Blue Star value proposition, engineers constitute the bulk of Blue Star’s recruitment. Consequently, engineers (graduate as well as diploma) can find technically satisfying and well paying jobs in the following areas of Blue Star

Air conditioning Projects Division:
Mechanical engineers are deployed in 3 different disciplines i.e. Sales, Design & Engineering and Construction. Blue Star also entered the commercial building electrical business since 2008. Consequently, electrical engineers (graduate and diploma) can also find careers in the Electrical Projects

Blue Star manufactures a wide range of air conditioning and refrigeration equipment at its five factories. Here, careers can be made in R & D, Production, Production Planning, Manufacturing Engineering, Quality and Reliability and Procurement. Graduates as well as post graduates in mechanical, electrical and electronics engineering can find rewarding careers in Blue Star’s manufacturing group.

Air-conditioning & Refrigeration Service Division:
Here again, engineers constitute the bulk of recruitment. Careers can be made broadly in 3 disciplines viz. Service Marketing, Service Delivery and Service Specialists’ Group.

Channel Businesses:
Packaged air conditioners, room air conditioners, refrigeration products and cold storages are mostly executed through licensed channel partners. Consequently, engineers as well as MBAs with an aptitude for marketing can develop satisfying careers in any of the channel businesses.

Management Services:
Like in all large corporate, the Company has well structured management service departments such as Procurement & Logistics, Finance and Accounts and Human Resources. Blue Star looks for talented professionals with appropriate qualifications for these departments.

Work with BLUE STAR:

An industry that’s over Rs. 12,000 crores can be the opportunity to meet your ambitious career goals. The cooling industry is thriving in a rapidly developing industrial landscape wherein almost every major corporate and commercial segment needs to cool down with efficient cooling systems. No wonder the company is slated to grow at a rate of more than 30% in the next few years. And this is the point where the cooling company really becomes hot. To propel career in this arena, one definitely need an organization that has what it takes to command a leadership position in the industry. Blue Star is the India’s largest central air-conditioning and commercial refrigeration company with over six decades of experience in providing expert cooling solutions. It has been associated with the most prestigious installations and projects in the country and enjoys a preferred partner status in most of the high growth segments. The Company has tripled its turnover over the last three years and continues to be on a strong growth trajectory.


What is research? In simple words, research is the study of materials and sources in order to establish facts and to reach at new conclusions. According to American Marketing Association “Research is the systematic and objective identification, collection, analysis, dissemination, and use of information for the purpose of assisting management in decision making related to the identification and solution of problems (and opportunities) in marketing.” Any research or study starts with Question or problem and research is undertaken to get the solution. Following are the objectives to undertake the research. The very first step in marketing research process is to define carefully the objectives of the study. It is important for the researcher to agree art the outset on the purpose and objectives of the study to ensure that the research design is appropriate. A carefully thought out statement of objectives helps to define the types and the level of information.

Types of Research:

There are mainly two types of market research the first one is problem Identification and second one is problem solving market research.

1.) Problem Identification Research :
Research that is undertaken to help to identify problems which are not necessary apparent on the surface and yet exist or are likely to arise in the future. For example, what will be the consumer’s behavior while making decision for purchasing “Bluestar-Bluestar” car and to know the consumer response whether it will be negative or positive.

2.) Problem solving Research :
Research is undertaken to solve specific marketing problems. For example, After putting “Bluestar” in market and there will be negative response and low demand for it then to find out the reasons for its negative demand in the market and to find out those reasons through research. For example, “Bluestar” also undertake research to get the answer of following questions Before they take decision to launch a new small car or not. 1. Who are my customer and potential customer? 2. What kind of people they are? 3. Where do they live? 4. Can and will they buy? Research helps us to get the answer of above mentioned questions.

Thus, research helps producer to collect the information which reduces business risk. It helps producer to identify sales opportunities and to develop action plans.

Following are the objectives of this Study:
Research is undertaken for following reasons. 1. To know awareness of potential customers about “BLUESTAR” 2. To Know the Perception of people toward pre-launched Bluestar Bluestar .


Types of Research Design Source of Data

Exploratory research Design A. Primary data : Survey method B.Secondary data (Economics : Internet, Magazine, News papers Times, Business Standard & Gujarat

Research Equipment Sampling Technique Sample Size Area of Research

Samachar,ICFAI General) Questionnaire Non Probability Technique - Convenience sampling method 150 Samples warangal

Research design:

Classification of Research Design: there are main two types of Research Design.

Research Design

Exploratory Research

Conclusive Research

Descriptive Research

Casual Research

We had considered exploratory research design for my project in order to know awareness of the potential customers and I want to know the willingness of potential customers to buy “Bluestar-Bluestar” car. For this study, I have considered exploratory research and descriptive research to know the awareness and purchase intention of potential customers as well as to know the characteristics of groups such as respondent’s age, their gender, education, income, occupation etc.

To study the problem and to reach at conclusion , data are essential which are collected from following sources.

Sources of Data

Primary Data

Secondary Data


Primary Data : It means Data originated by the researcher for the Specific Purpose of addressing the research problem. “Primary Data are collect to conduct the study and helped to reach at the conclusions from the findings. In this study , the primary data were obtain by survey method with the help of structured questionnaire. Data were collected with the help of the response of respondents, they provide information through questionnaire.

2. Secondary Data : “It means that Data collected for some purpose other than problem at hand”. In this study, the secondary data obtained from the websites, newspapers and Magazines.

Survey Methods: The Survey method involves a structured Questionnaire, given to respondents which is designed to obtain response or reaction for specific information. There are four survey methods.

Methods of Survey

Personal Interviewing

Telephonic Interviewing

Mail Interviewing

Electronic Interviewing

In-Home Interview

Mall Intercept

Computer Assisted

To collect the primary data, I have used personal interviewing method. Respondents were interviewed at their home, so, I relied upon in-home survey method. Respondents were interviewed face to face at their homes. The task of Interviewer is to contact respondents, ask the questions and record their response. Research Instrument: To obtain Primary data for this research I used survey method by designing Questionnaire.” Questionnaire is a structured technique for data collection that consists of a series of questions, written or verbal that a respondent answers.” Questionnaire is a set of a questions through which we can obtain necessary information from respondents.”

We can collect the information such as the behavior, attitude of respondents etc . . . . We can also understand facts, their awareness, belief and their future action plans.


Q1-You are dealing with the BLUE STAR brands from? No of years 5 years No of respondents 25 % of respondents 50%

5-10 years More than 10 years Total

15 10 50

30% 20% 100%

% of dealers dealing with BLUE STAR brand

20% 50% 30%

5 years 5-10 years More than 10 years

Interpretation: - Above graph shows that half of the dealers selling from 5years. 30% selling from 5-10years and rest of them more than 10 years that means they are satisfied with company. So they are doing regularly.

Q2-Which products of BLUE STAR are most preferable by customers: Product TV Washing machine Refrigerator AC Computer Mobile Total No of respondents 16 8 10 4 8 4 50 % of respondents 32% 16% 20% 8% 16% 8% 100%

% of selling of products
TV 32% W.M. Refr 8% 20% 16% A.C. Computers Mobile



Interpretation:-This chart is showing that % of sales of TV is 32% which is more than that of others. It means the selling of TV is more than that of other BLUE STAR products

Q3. In which season the selling of products is more:

Months Jan-March Apr-June July-Sep Oct-Dec Total

No of respondents 8 22 3 17 50

% of respondents 16% 44% 6% 34% 100%

Interpretation:-This chart is showing that in the month of April to June the sale of BLUE STAR products is very high than that of other which is 44%. It means it may after that in the month of October to December the sales of BLUE STAR product is also more.

Q4.Which factors influence the consumers to purchase the BLUE STAR products: Factors Quality Price Sales promotion activities Brand image Services Total No of respondent 9 7 4 27 3 50 % of respondents 18% 14% 8% 54% 6% 100

% of factors influence consumer to
Purchase BLUE STAR product

Quality 6% 18% Price Sales promotion Activities Brand image Services


14% 8%

Interpretation:- Brand image is influenced most of the people to purchase the consumer durable.

Q5.Opinion of the credit facilities are provided by the company:

Level of satisfaction Very satisfied Somewhat satisfied Somewhat dissatisfied Very satisfied Total

No of respondents 5 10 27 8 50

% of respondents 10% 20% 54% 16% 100%

% of level of satisfaction of dealers

Very satisfied 16% 10% 20% Somewhat Satisfied Somewhat Dissatisfied Very dissatisfied


Interpretation: - the dealers are not getting the credit facility by the BLUE STAR which makes them more dissatisfied.

Q6. Media plays an important role of making the awareness of the product. What do you think? Percentage 20%-30% 30%-50% 50%-70% 70%-90% No of respondents 1 4 9 6




20%-30% 30%-50% 50%-70% 70%-90%

% of people

Interpretation:-60%to 70% of the people get aware from media. Q7. What are the factors in media which makes the consumer more attentive towards the new, improved and innovative products and technology? Factors of media Television News paper Internet Magazine Hoardings Total No of respondents 29 9 17 2 3 50 % of respondents 58% 18% 14% 4% 6% 100%

% of respondents


4% 6%



Television News paper Internet Magazines Hoardings

Interpretation: - the factor in media which makes the consumer more attentive towards the new, improved and innovative products and technology is Television which plays important role in advertisement in comparison to others.

Q8. Are you satisfied with the promotional activities of the company: Level of satisfaction Very Satisfied Somewhat satisfied Somewhat dissatisfied Very dissatisfied Total No of respondents 2 13 5 0 50 % of respondents 10% 64% 26% 0% 100%

%of respondents

Very satisfied 26% 0% 10% Somewhat Satisfied Somewhat Dissatisfied Very dissatisfied


Interpretation:-This chart is showing that most of the dealers are somewhat satisfied with the promotional activities of the company because the % of somewhat satisfied is more than that of other which is 64 % and 26% dealers are somewhat dissatisfied also.

Q9. What is your annual sale of BLUE STAR products? Income level Less than 5 lakhs 5 to 10 lakhs 10 to 15 lakhs More than 15 lakhs Total No. of respondents 10 22 13 5 50 % of respondents 20% 44% 26% 10% 100%

%of respondent's annual income

10% 26%


>5 lakhs 5-10 lakhs 10-15 lakhs <15 lakhs


Interpretation:-By this chart we have come to know that the area where we have done survey the % of annual income of dealers is more within the limit of 5 to 10 lakhs and after that the % of 10 to 15 lakhs takes place.

Q10. Are you satisfied with the distribution system of BLUE STAR? Levels Satisfied Somewhat satisfied Somewhat dissatisfied Very dissatisfied Total No. of respondents 8 30 12 0 50 % of respondents 16% 60% 24% 0% 100%

% of respondents

Very satisfied 24% 0% 16% Somewhat Satisfied Somewhat Dissatisfied Very dissatisfied


Interpretation:-By this chart we have come to know that 60%of dealers are some what satisfied with the distribution system of BLUE STAR Company but 24% people are somewhat dissatisfied also and only 16% dealers are satisfied with the distribution system of company.

FINDINGS: 1) Quality is most important factor while purchasing a Bluestar AC. 2) VOLTAS is leading brand in AC. 3) While purchasing Bluestar AC consumer mostly prefer quality, price, brand and installation. 4) LG and Voltas is the main competitor of BLUESTAR in air condition market.

5) Sales promotion scheme were sufficient. 6) After sale service is the biggest problem with Bluestar AC in Jalandhar area.

SUGGESTION AND RECOMMENDATION: 1. Quality should be more improve so that sale of AC will be increase more in future and capture the market. 2. If the BLUESTAR Ltd. reduces their product price like LG and Voltas then BLUESTAR will take over the LG in all categories. 3. Prompt of service in time.

4. Advertisements of the company’s products should focus on quality rather than price. 5. Company should target upper middle class or premium class customers. 6. Company should introduce low cost products to satisfy the needs of low or middle class. 7. BLUESTAR ltd. should concentrate on after sales service. 8. BLUESTAR ltd. should try to trap the rural market. CONCLUSION: With respect to the above study and the findings thereby, the company has definitely entrenched into the urban market and it should concentrate in rural market in order to completely establish itself all over.

Dear sir/madam, We are the student of “Kakatiya Institute of Technology & Sciences, Warangal” conducting a survey on dealer satisfaction of BLUE STAR products as a part of our curriculum. I assure that information are given by you will be secret. Q1- You are dealing with the BLUE STAR brands from... (1) 5 years (2) 5-10 years

(3) More than 10 years Q2-How many products of BLUE STAR you sale? Please mention their names also. (1)…………………… (2)…………………… (3)…………………... (4)…………………… (5)………………….. (6)…………………… (7)…………………… (8)…………………… (9)…………………… (10)…………………… Q 3-Which products of BLUE STAR is most preferable by customers? (Please specify ……………………………………………… Q4-In which season the selling of products is more? (1)Jan-march (2) April-June (3)July-sep .(4) Oct-Dec Q5-Which factors influence the consumers to purchase the BLUE STAR products? (1). Quality (2) Price (3). Sales promotion activities (4) Brand image (5). Services

Q6- Opinion on the availability of credit facilities provided by the company? (1) Very satisfied (2) Somewhat satisfied (3) Somewhat dissatisfied (4) Very dissatisfied Q7-Media plays an important role of making the awareness of the product. What do you think? (1) 20% to 30% (2) 30% to 50% (3) 50% to 70% (4) 70% to 90% Q8- What are the factors in media which makes the consumer more attentive towards the new, improved and innovative products and technology? (1)Television (2) News paper (3) Internet (4) Magazines (5) Hoardings (6) specify if any…………… Q9-Are you satisfied with the promotional activities of the company? (1) Very satisfied. (2) Somewhat satisfied. (3) Somewhat dissatisfied. (4) Very dissatisfied. Q10- Opinion of dealers on the regular supply of goods? ............................................................................................... ……………………………………………………………. Q11- What is your annual sale of BLUE STAR products? (1) Less than 5 Lakhs (2) 5Lac to 10 Lakhs (3) 10 Lac to 15 Lakhs (4) More than 15 Lakhs

Q12-Are you satisfied with the distribution system of BLUE STAR? (1) Very satisfied. (2) Somewhat satisfied .(3) Somewhat dissatisfied. (4) Very dissatisfied. Q13-what is your suggestion to the company for improving the performance of sales? (1) By improving the advertisement (2) By providing the discount (3) By improving the quality (4) By increasing the margin Q14- Apart from the above options if any other suggestion you have then please specify …..... ……………………………………………………………................................................... . Name-……………………………………………… Age-……………………………………………….. Address-…………………………………………… Contact no.-………………………………………..


Marketing management: Marketing research:

By Philip Kotlar text and cases

Research methodology: Websites:--

By C.R. Kothari

1.http://www.Blue 2. http://www.Blue

3.The code of ethics:** STARrule/BLUE STARrule_main.htm

Sign up to vote on this title
UsefulNot useful