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Project Assignment 7 PDF Free
Project Assignment 7 PDF Free
[Roobaswathiny A]
Title
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DECLARATION
I, Roobaswathiny A, the undersigned, MBA student at Amrita School of Business, Amrita Vishwa Vidyapeetham,
hereby declare that the project titled “Identifying and establishing distribution channel for retail segment in
Puducherry market” has been done by me under the guidance of Prof. Vinitha V U, Professor of marketing dept,
Amrita School of Business, Coimbatore &Mr. Arun Kumar, Area Sales Manager, Atomberg Technologies,
Puducherry, during April and May 2020.
I also declare that this project has not been submitted, fully or partially for the award of any Degree, Diploma, Title
or Recognition earlier.
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ACKNOWLEDGEMENT
I would like to thank the management at Atomberg Technologies Pvt Ltd for giving me the opportunity to
do my summer internship project in their respected organization.
The guidance from everyone who has helped me with my success in this project cannot go unmentioned.
I would like to express my gratitude to my industrial mentor Mr. Arun Kumar, Assistant Sales Manager
for supporting me throughout the process of internship.
I would also like to thank other mentors at Atomberg to show immense faith in me and supporting me in
this due course of time.
I would also like to thank my academic mentor Prof. Vinitha V U, professor of marketing, Amrita
School of Business for giving her valuable time and advising and guiding me throughout the course of my
project.
I would like to extend my heartfelt thanks to almighty, my parents and my friends for their never-ending
support and encouragement.
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Executive summary
India highly relies on the non-renewable resource of electricity which drives most of the home
appliances. And one such electrical appliance is ceiling fan which has become a
common necessity among the households of the country. Atomberg Technologies Pvt Ltd
founded by ex-IITians Manoj Meena and Sibabrata Das fabricated a solution against the challenge
of energy crisis by producing super-efficient ceiling fans in India which gives stable performance
with the minimal energy requirement.
Currently all the fans of Atomberg are designed with disruptive BLDC (Brush Less Direct
Current) technology; and for a note of comparison, the conventional fans in the market require
75W of energy to provide a stable air delivery whereas the fans of Atomberg using
BLDC requires only 28W of energy which is less than 50% of what conventional fans need.
With an in-house production ability of 120000+ BLDC fans per month, the firm has a stronger
B2B segmentation on the other-hand B2C or retail segmentation is potentially on a growing
stage.
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Table of Contents
Contents
Identifying and Establishing Distribution Channel for retail segment in Puducherry..................................................................1
Executive summary.......................................................................................................................................................................6
Table of Contents..........................................................................................................................................................................7
Table of figures.............................................................................................................................................................................8
Introduction...................................................................................................................................................................................9
Market share analysis.........................................................................................................................................10
BLDC (Brush less Direct Current) fans in India....................................................................................................11
CHAPTER 2................................................................................................................................................................................12
About Atomberg Technologies Pvt Ltd...............................................................................................................12
Product...............................................................................................................................................................12
Atomberg Efficio +.......................................................................................................................................................................13
Studio...........................................................................................................................................................................................13
Atomberg Renesa +.....................................................................................................................................................................14
Atomberg Renesa........................................................................................................................................................................14
Atomberg Renesa smart..............................................................................................................................................................15
Efficio...........................................................................................................................................................................................15
Pedestal.......................................................................................................................................................................................16
Wall mount..................................................................................................................................................................................16
2.2.1 Product highlights......................................................................................................................................17
CHAPTER 4................................................................................................................................................................................19
Description of work............................................................................................................................................19
Study about BLDC fans.......................................................................................................................................19
CHAPTER5.................................................................................................................................................................................20
Objective............................................................................................................................................................20
CHAPTER 6................................................................................................................................................................................21
Methodology......................................................................................................................................................21
Comparison tool.................................................................................................................................................22
CHAPTER 7................................................................................................................................................................................23
Analysis...............................................................................................................................................................23
Price range.......................................................................................................................................................................................25
Mapping the outlet..........................................................................................................................................................................25
Week2: Distributor scouting in Puducherry market...........................................................................................26
Week3& 4: Creating brand and product awareness for electricians..................................................................27
Years of experience.........................................................................................................................................................................27
Open to give recommendation........................................................................................................................................................27
Recommendation on price..............................................................................................................................................................28
Recommendation on brand.............................................................................................................................................................28
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Week 5: Meeting distributors and retailers to discuss schemes and policies.....................................................29
Week 6: Planning a secondary projection for Harshath Enterprises..................................................................30
Challenges..........................................................................................................................................................31
Findings..............................................................................................................................................................32
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Table of tables
Table 1: Price structure calculation for normal fans vs. BLDC fans................................................................................7
Table of figures
Figure 1: Product segmentation of Indian fan industry...............................................................................5
Figure 2: Indian fan market by product market value INR 7000 Cr..............................................................5
Figure 3: Price segmentation of Indian fan industry....................................................................................6
Figure 4: Indian fan market by price segmentation market value INR 7000 Cr...........................................6
Figure 5: Market share analysis of Indian fan industry market value INR 7000 Cr......................................7
Figure 6: Atomberg Efficio + fan model.......................................................................................................9
Figure 7: Atomberg studio fan model..........................................................................................................9
Figure 8: Atomberg Renesa + fan model...................................................................................................10
Figure 9: Atomberg Renesa fan model......................................................................................................10
Figure 10: Atomberg Renesa smart fan model..........................................................................................11
Figure 11: Atomberg Efficio fan model......................................................................................................11
Figure 12: Atomberg pedestal fan model..................................................................................................12
Figure 13: Atomberg wall mount fan model..............................................................................................12
Figure 14: Organization structure of Atomberg.........................................................................................14
Figure 15: Role marketing team of Atomberg...........................................................................................14
Figure 16: Outline of work process............................................................................................................17
Figure 17: Example of retail outlets mapping............................................................................................19
Figure 18: Location of the retailers visited................................................................................................20
Figure 19: Retailers hot spot in Puducherry..............................................................................................20
Figure 20: Percentage of retailer and their price segmentation................................................................21
Figure 21: Percentage of retailer and mapping.........................................................................................21
Figure 22: Percentage of electricians contacted and years of experience................................................23
Figure 23: Percentage of electricians contacted and their openness to give recommendations to their
customers...................................................................................................................................................23
Figure 24 : Percentage of electricians contacted and recommended price range on buying fans.............24
Figure 25: Number of electricians and most preferred brand...................................................................24
Figure 26: Sales funnel of distributor.........................................................................................................26
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Introduction
Fan industry of India
Ceiling fans are 10+ hours/day appliances suitable for all weather conditions especially when it comes to
tropical countries like India. Ceiling fans have become one of largest selling appliance during hot
summer. And this tremendous growth is forecasted to see an increase in number with the electrification
of rural India, development of housing sector, rapid industrialization and finally a liking for aesthetic
home décor. The players of Indian fan industry majorly manufacture 3 segments of fans, primarily ceiling
fans, secondarily table wall mounted and pedestal fans and finally, other domestic exhausts and
industrial purpose fans. Considering these manufacturers, they can also be divided into two categories
organized and un-organized participants. When we take a closer look at the organized division it is
mostly ruled by many domestic and international companies while some of them are
Crompton Greaves, Havells, Orient, Usha, Bajaj, Polycab, Luminous etc.
Product segmentation
Others (Domestic
Table, Wall and Heavy volume
Ceiling fans exhaust and
Pedestal fans Low speed
industrial)
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Furthermore, the price segmentation of the ceiling fans is of three divisions, the basic/economy model,
and the standard model and at last the premium model. When it comes to the economy category the
price falls below INR 1500, while the price ranges from INR 1500 to INR 2499 for the standard category.
Lastly, the fans whose price ranges INR 2499 and above are of premium category.
Figure 4: Indian fan market by price segmentation market value INR 7000 Cr
Crompton is one of the main players in the Indian fans showcase with its wide
conveyance organize. The organization is currently concentrating more on expanding
its share in the top of the line item classification.
Havells is a main player in the top-notch fans section and a notable brand across
different purchaser durables.
Orient electric is expanding its piece of the overall industry with constant advancements
and presenting vitality effective fans which incorporate expanded dependability, and a
more drawn out life expectancy.
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Bajaj Electricals is one of the conspicuous players in fans, lighting, and luminaries section
where fans add to 24% of its income. Other significant players in the market incorporate
Usha, Khaitan, and a few disorderly players.
Figure 5: Market share analysis of Indian fan industry market value INR 7000 Cr
Bureau of Energy Efficiency India initiated Super-Efficient Equipment program (SEEP) in the year
2012 to promote the idea of energy consumption in manufacturing of electrical and electronic
home appliances. This SEEP program became the boosting idea for many startups to act
upon, especially for ceiling fan manufacturing firms. Following the concern, BLDC (Brush
less DC) methodology turned out to be the prominent solution for these startups to
build an energy efficient fan with no compromise on the performance. There are various
advantages of opting BLDC rather than using conventional induction-based motors and some of
them are;
Table 1: Price structure calculation for normal fans vs. BLDC fans
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The above table is a simple calculation that helps to understand that by opting BLDC a
consumer can save INR 1500 per year thus the complete cost of the fan can be recovered
within 2 years of usage. Some of the key players of the Indian market are;
CHAPTER 2
About Atomberg Technologies Pvt Ltd
An Atomberg technology PVT LTD is a BLDC motor-based company founded in the year 2012 by
Manoj Meena and by Sibabrata Das. In the year 2015 the firm stepped into manufacturing of
ceiling fans; the Company’s fans are known for its less power consumption which has capability
to consume 65% lesser energy than the ordinary fans. The success story of this fan
manufacturer is a composed synergy of 200+ members operating in various parts of the
country.
The Atomsense technology of the company makes the ceiling fan more interesting by enabling
the user to control the fan through a remote which adds in features like Timer and sleep. Today
Atomberg is the one of the prominent manufacturers of BLDC (Brush Less DC) motor-
based fans in India known as Atomberg Fans.
When we consider Knowledge equity of the brand, it is significantly high in B2B segment,
notably Aditya Birla, Raymond, TATA, Infosys, ITC are some of the key clientele of the firm.
Markedly B2B as well as B2C segment of Atomberg is potentially growing across various parts of
the country.
Product
Ceiling fan
Wall mounted fan
Pedestal fan
Fan accessories
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Atomberg Efficio +
Specification
Studio
Specification
13
Atomberg Renesa +
Specification
Atomberg Renesa
Specification
14
Atomberg Renesa smart
Specification
Efficio
Specification
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Pedestal
Specification
Smart Remote Controlled with Boost Mode, Oscillation and Timer Mode
Reduces Power Consumption by 50%
LED Display for Speed, Oscillation and Timer | sweep size 400 mm
Wall mount
Specification
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2.2.1 Product highlights
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CHAPTER 3
Organization structure
CEO
Research and
Quality Operations
Development
COO
Human
Sales Marketing Service Finance Admin
Resources
Role of marketing
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CHAPTER 4
Description of work
Atomberg Technology being an emerging startup is successfully launching their fans across
various parts of the country. When it comes to Puducherry the product launch is in the firm’s
pipeline, in certain cases though the fans were not readily available at the electrical as well as
electronic counters Atomberg still have customer from Puducherry who have been purchasing
fans either directly from the firm’s online market or through third party online retailers.
Currently the firm’s goal is to bridge the gap between the customer and the company by
expanding itself towards the market of Puducherry and thus by making the fans available at the
retail outlets. Following this, Atomberg’s first step is to appoint an efficient distributor in
Puducherry who is well established in the process of distribution. As a second step creating
brand awareness and product knowledge among the electrical retailers as well as among the
electricians.
The tasks for the internship were mapped accordingly which could help the firm in
understanding the market which in turn could help in accomplishing the firm’s to do list in
launching the product in Puducherry.
Creating brand awareness among the electrical retailers which also includes there in
contact electricians
Meeting the identified distributors to discuss the schemes and policies of the firm
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CHAPTER 6
Methodology
Identification and mapping of electrical retailers
Discussion onDiscussion
schemes on schemes of incentivizing
Week1: List of electrical retail outlets of Puducherry was composed and mapped them into
three distinctive categories; large, medium and small sized retailers
Week3: Created a brand and product awareness for 146 local electricians
Week4: Revisited the electrical retailers gathered information about their loyal electricians and
enquired about their knowledge and opinion on BLDC fans
Week5: Visited distributors in Puducherry and awareness about Atomberg was made in general
and took an appointment for next week for those who were interested
Week6: Visited the retailer prospects and distributor prospects to share the Atomberg’s policy
details. Specifically, a secondary projection planning was made to the lead distributors
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Comparison tool
Wattage consumption 75 28
Operating hours 20 20
Investment structure
Achievable savings for consumers from Atomberg fans
Cost of single Atomberg INR 2700
fan
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CHAPTER 7
Analysis
Based on the following inputs the electrical retailers were segmented into three distinctive
categories; large sized, medium sized and small sized.
A B
Price handling 2000
Labor force >8 Brand handling >6 Price handling >3000 To 3000
Labor force 4 to 8 Brand handling 4 to 6
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Figure 18: Location of the retailers visited
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Price range
Above 2500 1500 to 2499 below 1500
8%
30%
62%
17%
29%
54%
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Week2: Distributor scouting in Puducherry market
Revisited the retail outlets of week 1 and gathered information about the
distributors
Furthermore, some of the electronics showroom were also being visited to collect
distributor details of consumer electronics
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Week3& 4: Creating brand and product awareness for electricians
Electrician’s activeness towards the contribution of fan selection for their customers
Years of experience
1 to 5 yrs 6 to 10 yrs 11 to 15 yrs >15 yrs
8%
22%
38%
32%
6% 13%
9%
24%
48%
Figure 23: Percentage of electricians contacted and their openness to give recommendations to their customers
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Recommendation on price
1000 to 1499 1500 to 1799 1800 to 1999 >2000
5%
17% 26%
52%
Figure 24: Percentage of electricians contacted and their recommended price range on buying fans
Recommendation on brand
Usha 9
Orient 28
Havells 42
Crompton 81
In total 160 electricians were contacted in the process of creating brand awareness,
Almost 72% of the electricians were open to give recommendation to their customers.
Whereas 52% of the electricians recommend fans between the price range of 1500 to
1799
When it comes to personal choice, Crompton leads the list followed by Havells
Finally, regarding the awareness about BLDC and Atomberg, less than 10% of them had
the technology and brand knowledge
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Week 5: Meeting distributors and retailers to discuss schemes and policies
Task1
Harshath Enterprises
Riddi Siddhi Enterprises
OM Enterprises
Eswari Agency
FCI, Puducherry
On the process of converting the prospects to leads, every distributor has been met with area
sales executive and thoughts about initiating the distribution were discussed.
Out of these 5 prospects Harshath Enterprises was the positive lead generated to initiate a
stable distribution in Puducherry. The key factors of the distributor posses
Task2
Simultaneously, potential retailers were also met to discuss about taking in stocks and the
policies, schemes adhered to that process were also discussed.
Secondary 25 retailers
Planning
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Week 6: Planning a secondary projection for Harshath Enterprises
Identifying and mapping 25 retailers of Puducherry to take at least a stock of 4 fans each
Stating the incentive structure for the counter person who indulge in direct sales of the
product
Stating the incentive structure for the electrician who buy the fan from the counter
Primary billing details and their connected policies
Secondary billing details and their connected policies
Suspects 21
Prospects 5
Lead 1
1 CONVERT
Harshath Enterprises, Puducherry has been successfully appointed as distributor for Puducherry
and Cuddalore with an initial stock of 100 mapping to 25 retailers of Puducherry and Cuddalore
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CHAPTER 8
Challenges
The primary challenge was, due to Covid 19 lockdown the potential customers who
were estimated to buy fans this summer did not turn up to the level of expectation and
thus most of the retailers have paused their business and when they resumed back, they
weren’t in the position to discuss about any new brands or to take in any new stocks.
A similar situation was prevailing with the distributors too, since the retailers didn’t take
any stock the inventory got piled up and they objected on talking about launching a new
brand which is not familiar either with the retailers or with the customers.
Having Covid 19 apart, some of the other challenges were lack of product and brand
awareness among the electricians and the retailers. And few those who were aware,
tended to have an assumption that the BLDC fans which run on 28W wouldn’t be able to
generate enough air delivery. When some of the electricians showed keen interest
about the product and the technology others felt a need to see the product and
experience it before buying or recommending it to someone. But due to some of the
distant barriers there wasn’t any ready sample or a prototype in hand to sort out this
issue.
At last, a major challenge was in explaining the retailers about the product and brand
without any sample model or without any brochure in hand.
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Findings
Though the distribution was not available in Puducherry Shanmuga Electricals, Puducherry;
ordered and sold almost 30+ fans to Auroville design consultant, Puducherry. Having a
conversation with the consultant group the Architect said that they have been purchasing
Atomberg fans in order to meet their energy consumption project which they were working on.
And they have been purchasing this fan for more than three years and they also would strongly
recommend Atomberg fans for household wiring. The Architect gained the product and brand
knowledge through internet and currently they are working on the projects from Chennai and
Vedharnyam for which they have also purchased Atomberg fans.
https://www.aurovilledesign.com/
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