Study of consumer behavior in appliances threat and dividing STRATEGIE for business enhancement.

PREFACE
With the need of an hour and the changing environment, Management Institutes these days have started giving more stress on the management training program as it is the first interface of a management student with the culture and environment of the Corporate World. It gives them the first hand information and experience to share and use their knowledge and bring out some meaningful results out of it. This is the opportunity where students learn to experiment theory in practice in the real World of Corporate Business. Our Institute has also been looking in the same direction to produce students with excellence and with great determination that can possess knowledge of theory along with practice. So for this we have undergone a Summer Training Program of 8 weeks in Bajaj Electrical ltd for a project on “Study on consumer behavior to enhance the brand image of Bajaj appliances”. For our project we are thankful to our Institute for providing us valuable encouragement and guidance which has facilitated us in making and completing our report.

A Background of the problem.2 1. Buying Decision Process.1 1.3 Introduction Introduction about The Company. .Table of Content Preface Acknowledgment Chapter 1 1.

3 4. Research design.4 2. Chapter 5 Observation/ Analysis & discussion .4 1.1 2.1.2 Objective of Study Main Objective.1 3.5 Rational of study. Chapter 2 2. Research approach.3 2. Chapter 3 3. Types of consumer purchase decision. Limitation of study. How consumer buy. What influence purchasing.5 Review of literature Consumer buying behavior. Specific Objective. Scope of study. Chapter 4 4.4 Research Methodology Source of data. Why consumer buy.2 2.2 4.1 4.

3 Questionnaire analysis. Chapter 8 Bibliography.5. Feature analysis. Demographic Analysis.1 5. Chapter 1 . Chapter 6 Conclusion/ Recommendation. Chapter 7 Executive Summary. Chapter 9 Annexure.2 5.

Introduction .

share of the organized sector in the Home Appliances industry is set to improve going ahead. BEL (Bajaj Electricals Limited) is one of the fastest growing players and enjoys strong brand recognition. with a market share of more than 15-30% in a range of products.25. Bajaj Electricals Limited (BEL) is an India-based consumer electrical products manufacturing company. consumer preference is shifting to branded products from the unbranded and low-quality home appliances. Further.1 Introduction about the company:- Currently. BEL is the largest player in the Small Appliances market. the domestic Home Appliances market stands at around Rs4. Bajaj Electricals has 70 years of experience in the electrical market and is known for being an innovator and market leader in the Indian consumer electrical manufacturing sector. As per the company’s internal estimates. In the Home Appliances Segment.1.000 Retail outlets. Hence. . the domestic Home Appliances Segment is growing at around 20% on the back of rapid urbanization and improving purchasing power of the Indian consumers. It is well entrenched in the Segment on account of having a strong distribution network of more than 1. 400cr and 65% of it is in the organized segment.

Bajaj Platini is a brand apart . it . Further. Right from the Water Heaters to match the decor of the bathroom. This range will surprise the customers with features never seen or experienced before. Bajaj Appliances bring an array of products that redefine fine living. the first Pop Up Toaster with LED that allows for precise browning of breads. Bajaj Platini is a range that makes a lifestyle statement whether you own it or choose to gift it ! With this range. Bajaj Group’s consumer electrical products manufacturing company Bajaj Electricals and Appliances unveiled its range of home appliances under the brand name Bajaj Platina. In many cases these features are for the first time ever in the Country. the first digital OTG. Steam Irons with detachable water tank and a lot more.designed as a fitting accessory to new age India’s global aspirations.About Bajaj Platini Appliances:- Bajaj Platini is the premium range of home appliances from the house of Bajaj. There’s more to every Bajaj Platini product than the numerous and unique features. Every product is an exceptional blend of classy designing and intelligent technology making each a one-of-its-kind offering in the market. to the personalized setting features for precision temperature.

“We may enter the microwave and room heating devices as it is a fast growing category. luminaries and engineering. Presently.98 crore posted in the corresponding quarter last fiscal.50. Further.763 crore with 22.000 retail outlets and over 230 service franchises spread across the country.04 billion in 2007-08. “We are eyeing a turnover of Rs 17 billion by the end of this fiscal.741 crore as against Rs 2. fans.000 authorised dealers. gross turnover crossed Rs 2.229 crore in the financial year 2009-10.9 per cent growth over the last year.has tied-up with UK-based Strix for heating element controls and Galanz of China for microwave ovens and Italian company Nardi for hobs. reports Business Line. we are looking at more such tie-ups. it added. During the year 2010-11. Commenting on the same. over 2. During the quarter under review. The net sales/income from operations of the financial year 2010-11 is higher by about 23 per cent at Rs 2. chimney and modular products. a 24. R Ramakrishnan. executive director.” added Ramakrishnan. Bajaj Electricals' net sales stood at Rs 979. it has five major strategic business units comprising of home appliances.9 per cent increase. lighting. . the company said in a statement. Bajaj Electricals has a chain of 600 distributors.” Bajaj Electricals had posted a turnover of Rs 14. 3. Bajaj Electricals said.38 crore from Rs 783.

the net profit of the company has increased by 22.For FY11. It was a difficult quarter with significant margin pressures due to commodity pressures.9 per cent EBIT. ." Chairman and Managing Director Bajaj Electricals Ltd Mr Shekhar Bajaj said. The demand for all our products continues to be robust.8 per cent to Rs 143. We have taken the right pricing decisions along with focus on profitable growth. as against Rs 117.80 a share of Rs 2 each for the financial year 2010-11.8 crore. "The 4th quarter witnessed 24.1 crore in the corresponding period of the previous year. The company has announced 140 per cent dividend of Rs 2.9 per cent growth in revenues and 9. it said.

irons. wall fans.microwave ovens. GLS lamps. . fresh air fans. Legend luminaires. retail lighting. commercial decorative lighting. and mannifique ceiling fans  Lights . and gas stoves  Fans . miniature lamps  Luminaires . and Renaissance Luminaires. industrial lighting. roadway lighting. Le Magique Luminaires.modern workplace lighting. room heaters. and compact fluorescent lamps Consumer luminaries. mixers. pedestal fans. table fans.ceiling fans.Bajaj Electricals has 5 major strategic business units like: • • • • • Home appliances Fans Lighting Luminaires Engineering and related projects Bajaj Electricals product lines include the following  Appliances . electric kettles. toasters. water filters OTGs.fluorescent tubes. hazardous area lighting. area lighting.

Bajaj Platini is a brand apart. . Making each a one-of-a-kind offering in the market.The trust placed by the millions of consumers have fuelled the company into introducing the premium range of home appliances called “Bajaj Platini” . In some cases they are a first for the Indian sub-continent. Inalsa.designed as a fitting accessory to new age India’s global aspirations. Every product is an exceptional blend of classy designing and intelligent technology. But there’s more to every Platini product than their numerous and unique features. The company’s competitors in this segment include Philips. It is designed as a fitting accessory to a new age India’s global aspirations. Morphy Richards.The Platini range will surprise you and your customers with features never seen or experienced before. Bajaj Platini is a range that makes a lifestyle statement whether you own it or choose to gift it.

Steam iron Food processor .

Juicers and Juicers Mixer Grinder .

Pop Up Toaster Sandwich Toaster and Grill Toaster .

Water heater Emergency light .

Room Heater:- Oven Toaster And Grill .

Room Coolers:- Kettles:- .

The overall consumer market consists of all buyers of goods and services for personal or family use. For example. Consumer behavior essentially refers to how and why people make the purchase decisions they do. Marketers spend a great deal of time and money discovering what compels consumers to make such on-the-spot purchases. Marketers strive to understand this behavior so they can better formulate appropriate marketing stimuli that will result in increased sales and brand loyalty. especially any particular triggers that compel consumers to buy a certain product. giving marketers a very limited amount of time to influence consumers. one study only 23 percent of the store. but consumers tend to attribute this volume to the industrial world's massive production capacity.1. The science of evaluating and influencing consumer behavior is foremost in determining . experts examine purchase decision processes. And 59 percent of all supermarket purchases were unplanned. In this manner. Market researchers obtain some of the best information through in-store research. more than 270 million people (including children) spending trillions of dollars in the United States as of the late 1990s. the giant To understand consumer behavior.2 A Background about the problem:Consumer buying behavior/Behavior strategy:A consumer is the ultimate user of a product or service. There are a vast number of goods available for purchase. they known as the marketing profession is responsible for the variety of goods on the market. and will often launch new products only in select small venues where they expect a reasonable test of the product's success can be executed. Rather.

" This type of focus might link products either to the attainment of love and belonging. even if that choice does not always appear to be rational. may be physical or biological. or for self-fulfillment. and values. Purchase decisions depend on personal emotions. connecting products with love or belonging has been a success for several wildly popular campaigns such as "Reach Out and Touch Someone. goals. each decision that is made has some meaning behind it. social situations." "Fly the Friendly Skies. for love and affiliation.which marketing efforts will be used and when. or by linking those products with people similar to those with whom people would like to associate. However. as identified by Abraham Maslow in the early 1940s. and those concerned with status will pay for it.can determine whether a product's success is likely before investing excessive company resources to introduce that product nationally or even internationally. not just for utilitarian purposes. For example. consumer choice can appear to be quite random. However. Prestige is another intangible need. People buy to satisfy all types of needs. for safety and security." and "Gentlemen Prefer Hanes. On some levels. These needs. goods appealing to this type of need must be viewed as high-profile products that others will see . researchers try to ascertain what happens inside consumers' minds and to identify physical and social exterior influences on purchase decisions. to obtain prestige and esteem. CONSUMER NEEDS Consumers adjust purchasing behavior based on their individual needs and interpersonal factors. In order to understand these influences.

a need for achievement might drive people to perform difficult tasks. (Consumers also vary in determining the needs they want to satisfy. high-status products sell better with higher prices. One benefit of targeting this type of market is that the demand curve for luxury products is typically the reverse of the standard. and they make purchases based more on quality and durability than on physical beauty. and charitable service appeals. do-it-yourself materials. For instance. houseplants. and beauty. Pragmatists will buy what is practical or useful. and nurturing behavior. and to invest in products such as tools. Some equate the type of need to be met with certain classes of goods. to exercise skills and talents. and self-improvement programs. for their own happiness? Or do they rely on the opinions of others to determine what products and services they should be using? This determines.in use. kindness. is drawn to objects that project symmetry. Are they more concerned with meeting their own needs and buying what they want to. The need to nurture or for nurturing leads consumers to buy products associated with things such as parenthood. for example. pets. The aesthetically inclined consumer. cooking." enhancing power and social position. They also like to compare and contrast similar products before making the decision to buy. among others. while making a purchase decision of certain goods & services. Politically motivated people seek out products and services that will give them an "edge. Personality traits and characteristics are also important to establish how consumers meet their needs. on the other hand. Intellectuals are more interested in obtaining knowledge and truth and tend to be more critical. harmony. . And people who are more social can best be motivated by appealing to their fondness for humanity with advertising that suggests empathy.

it is more likely consumers will respond. then companies who suggest their products represent those values are more likely to be successful. Social values are equally important.whether or not they will make a purchase just because it's the newest. If great value is placed on characteristics such as activity. . hard work. most popular item available or because it is truly what they need and/or want. If a manufacturer suggests their product will make the consumer appear more romantic or competitive in a place where those values are highly regarded. and materialism. Cultural and social values also play large roles in determining what products will be successful in a given market. This also influences the way marketers will advertise products.

1.4 Buying decision process:- .

With an internal stimulus (one of the persons)/ (customer) normal needs arises to a certain level and become a drive or need can be aroused by an external stimuli. average etc. price. whereas need can be aroused by an external stimulus such as sight of new things in a shop while purchasing other things. Now suppose. model. Information search:After need arousal the consumer tries to solve it and gathers the sources and information about the product and information is searched from the individuals surrounding or individual uses his/her knowledge about the product which satisfies his/her need. . if individuals need is to purchase a new car then in this case individual will search all the Information about a particular car which he/she is willing to buy. engine capacity. That is all the features.According to theoretical point of view the buying decision process for an individual requires following steps those are as follows:• Problem recognition • Information search • Evaluation of alternative • Purchase decision • Post purchase evaluation Problem Recognition:The buying process starts when the buyer recognizes the problem or need triggered by internal or external stimuli.

the consumer clarifies and evaluates the alternative. Purchase decision:Evaluation behavior leads the consumer to form a ranked set of preference. If the product matches up to his expectation the consumer is satisfied. relatives and friends.(a) attitude of others such as wife. weight. brand image. After evaluation of various alternatives he takes the decision to buy. expected total cost of the product and expected benefit of the product. Normally a consumer buys the article he/she like the most but there are 3 more important considerations for taking buying decisions:.Evaluation of alternatives:Having collected the information. . Post purchase decision:After buying and trying the product. (b) anticipated situational factors as expected family income. the consumer will feel some level of satisfaction or dis satisfaction and level of satisfaction will depend upon expectation and the product perceived performance. utility function for each attribute. importance. (c) Unanticipated situational factors looks or manner of the salesman or the way the business is carried on. if it exceeds he is highly satisfied if not then dissatisfied. There are many considerations from the part of judgment such as product attributes. attitude etc.