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A PROJECT REPORT ON THE STUDY OF A.C.

MARKET OF JAIPUR CITY ANALYSIS OF CUSTOMERS SATISFACTION REGARDING VARIOUS BRANDS IN

VIDEOCON INTERNATIONAL LTD

SUBMITTED BY

EXECUTIVE SUMMARY

Today companies work in a war zone of rapidly changing competitors, technological advances, new laws, trade policies and diminishing customer loyalty. Therefore, todays winning companies are those who succeed best in satisfying their target customers. They are marketfocused and customer-driven, rather than solely product focused or cost driven. For that, it is very essential to know the latest trends in the market (concerning demand, market share, etc.) and customer satisfaction regarding various aspects so that the finance people can raise the needed cash for investment and operation; by the R & D department to make required up gradings in the product; by the manufacturing department to establish capacity and output levels; by purchase department to acquire right amount of supplies; and by personnel department to hire the needed number of workers.

The main focus of this report was to define Videocon Companys position in the market and level of customers satisfaction regarding aspects. This was done by analysing companys market share and total market demand of window and split airconditioners and conducting interviews with the A.C. users.

OBJECTIVES Major Objective:

To study the Air Conditioners (A.C.) market of Jaipur City and to analyze Customers satisfaction regarding various aspects.

Sub-objectives:

1.

To compare Videocons existing market vis-a-vis competition. (Air-conditioners)

2. To identify the Videocons Customer Satisfaction Level regarding various aspects vis-a-vis competition. (Air-conditioners). 3. To assess effectiveness of existing brands for the products category i.e.

y y y y y y y y

Advertisement Inputs Availability Of Product Pricing Pattern Schemes And Margins Quality Of Products Service Backup Product Range Credit Terms

INTRODUCTION Videocon Group is a diversified group of companies having a great deal of interest in the consumer electronics, appliances, electronic components, glass shells and finance sector. Major group companies dealing in consumer electronics and home appliances are: y Videocon International Ltd. (VIL) y Videocon Industries Ltd. (VIL) The principal manufacturing facility of VIL, VAL, VVL is located in Aurangabad. Supplies are augmented by additional Original Equipment Manufacturing units located in Ahmednagar, Gandhinagar, Bangalore, Noida, Bhopal, Calcutta, Mohali, Jaipur, Uttaranchal, Jammu Kashmir and other third party OEM units all over the country. Videocons main product lines are classified into: y y y Consumer Electronics (CE) Consumer Appliances (CA) A.C. Division

It includes small appliances classified as Utilities. Consumer Electronics includes Colour Television, Black & White Television, Video-Cassette Recorder/Player and Audio System. Consumer Appliances includes Washing Machine, Refrigerators, and Utilities such as Air Cooler, Mixer, Ceiling Fan and Water Purifier. A.C. Division includes only Airconditioners being a vast product line. A central marketing outfit for Consumer Appliances is based in Bombay known as Corporate Marketing. It is entrusted with the task of carrying out the marketing and related functions including service of all the three companies. Videocon International Ltd. has experienced phenomenal growth in sales as well as enhancement to its product and models. This has necessitated increase of distribution network comprising sales offices, sales depot and dealers/distributors throughout the country. The number of branches exceeds 50 at present with a presence in all principal towns and cities in different states. The list of existing branches is given in EXHIBIT I Marketing has added significantly to the growth of Videocon. The marketing system has evolved over the years considering the growth requirements and individual experiences of marketing personnel.

List & Categorization of Branches

CAT'A
Mumbai New Delhi Chennai Calcutta

CAT'B
Hyderaba d Bangalor e Cochin Jaipur Pune Ahmedab ad Indore Lucknow Vijayawa da Gaziabad

CAT'C
Ambala Vadodara Coimbator e Surat Guwahati Nagpur Rajkot Nasik

CAT'D
Ahmedna gar Aurangab ad Hubli Ranchi Kolhapur Agra Asansol Jodhpur Kanpur Siliguri Varanasi Jammu Manglore Sholapur

CAT'E
Cuttack Gawalior Jabalpur Parwanoo Raipur Vishakhap attnam Male Pondicher ry

OBJECTIVES:

LEADERSHIP THROUGH TECHNOLOGY:

Videocon is exploring the most advanced technologies to give the worlds finest Consumer Electronics and Home Appliances.

Videocon: A household name Today, Videocon is the leader in the Consumer Electronics and Home Appliances with 19 state-of-art manufacturing facilities all over India, manned by skilled and dedicated employees.

Bringing the world to India Videocon produces a wide range of quality products through its tie-ups with world leaders: y Colour TV, VCR and VCP through its tie-up with Toshiba, Japan. y Washing Machine in technical collaboration with Matsushita Electric Industrial Co., Japan. y Refrigerators manufactured in technical design and drawing collaboration with Matsushita Refrigeration Co., Japan manufacturer of the National Refrigerator. y Air-conditioners manufactured under a design and drawing agreement with Matsushita Electric Industrial Co., Japan. y Audio Systems from Sunsui, Japan.

Improving the quality of life The growing world of Videocon, a world led by technology and a philosophy aimed at bringing home the benefits of modern ethnological innovations to more and more people.

LEADERSHIP THROUGH INNOVATION:

Videocon is breaking new ground to offer every Indian what the world has to offer.

In the pioneering tradition From the start, Videocon has blazed a new trail, right across in entire spectrum of world class Consumer Electronics and Home Appliances. Videocon is always first with the best and is always ahead of the rest.

Taking the lead y Colour T.V.: First to introduce Colour Television with PIP, with surround sound, full flat square tube and with the mighty Bazooka Woofer. y y Refrigerators: First to offer No Frost technology in refrigerators and also the largest range of No Frost Refrigerators. Washing Machine: First to launch International quality Washing Machine in India with Neuro Fuzzy Logic.

y Air Conditioner: First with the Rotary Compressor and with Neuro Fuzzy Logic has the widest range of room air-conditioners in India. y Audio System: First with an Integrated Home Audio System.

The new frontier Videocon is poised to take giant leap into the 21st century with daring new forays across every product category. From the 32 inches Window Dramatic Wider Colour Television to stunning extension of the Bazooka range from Multi Split Fuzzy Logic Air Conditioners to coastal coolers. From Dish-Washers to Microwave Oven, to a 6-door No-Frost Refrigerator.

LEADERSHIP THROUGH QUALITY:

Videocon is the first Indian Company on par with the worlds finest Electric Companies, having won CE approval for exporting its Colour TV to Europe.

The world of Videocon quality Right from the start, Videocon has believed in keeping pace with technology and adhering to a single-minded commitment to quality. Over the year, Videocon has constantly upgraded its manufacturing facilities, incorporating advanced technology and high standards of quality into its range of Consumer Electronics & Home Appliances. Videocons pursuit of excellence has been rewarded with a significant breakthrough: it has recently been awarded the CE mark for export of its Colour TV to Europe.

Affordable quality without compromise Keeping consumer in mind, Videocon has developed near zero wastage technology, minimizing wastage of material, manpower and time, thereby reducing manufacturing cost. Reliability, quality products with the assurance of trouble-free performance, year after year.

Going global Today, Videocons quality achievement has enabled it to look beyond India, earning the highly prestigious CE mark for exporting its Colour Televisions to Europe. Apart for making the product for Toshiba and Sansui for their global markets, Videocon is also setting up the manufacturing and marketing facilities in the Middle East, Europe, Indonesia and South Africa.

LEADERSHIP THROUGH PERFORMANCE:

Videocon is harnessing its manufacturing and marketing skills to turn in a consistently outstanding performance over the past 18 years.

THE PRODUCT MIX:

Home Appliance Division:

The division was incorporated in 1988, which includes Washing Machines, Refrigerators and Air-conditioners. The division had a turnover of RS. 700 crores in 1997-98, which is projected to be doubled next year. The VIL (H.A. Division) differs wide product range in all the three categories: -

Washing Machines Models X-Lent Brand Washing Machines Model No: 80X-FA Model No: 60X-FT Fully Automatic Washing Machines Konzerv 5200 Konzerv 5500 Konzerv 5800 Konzerv 6000 Konzerv 6200 Konzerv 7500 Konzerv 7500 DX Semi Automatic Washing Machines SA 73 SA 69 SA 63 SA 53 SA 50 SA 43 SA 40 Multie 6800 Maxie 6800E Combie 6800 7 6.3 6 4.5 4.5 3 6 6.8 6.8 6 5.2 5.5 5.8 6 6.2 7.5 7.5 8 5 Capacity(Kg)

Refrigerators Model s X-Lent Brand Refrigerators (a) 625X - FF (b)315X - FF (C)55X - DC Frost Free Refrigerators (a)D452 MFE (b)D231 DX (c)D312 DX (d)D275 DX (e)D2 80 (f)D280 DX Direct Cool Refrigerators (a)S 091 DX (b)S 091 (c)S 180 (d)S 180 DX (e)S 180 SS DX (f)S 180 WD DX (g)S 201 WDX (h)S 220 (I)S 220 HT (j)S 220 DX (j) S 220 SS DX (k)S 220 WD DX 261 WDX (l)S (m)S 332 WDX (n)S 332 LX/S332 80 80 180 180 180 180 200 215 215 215 215 215 240 320 320 Capacity (ltrs)

625 290 50 Window A.C.

450 210 290 250 250 250

Model.no

Capacity (tons)

(a) VAW 1022 (b) VAW 1222 (c) VAW 1822 (d )VAW 1823 (e) VAW 1833 I (f) VAW 2434

0.8 tr 1.0 tr 1.6 tr 1.6 tr 1.6 tr 2.1 tr

Tower A.C.

Cassette A.C.

Model no:

Capacity(ton s) 1.6 tr 2.1 tr SPLIT A.C

Model no:

Capacity

(a) VA 2400 SPT (b) RC 30 SPT

(a) VA 2400 SPCA (b) RC 30 SPCA

2.1 tr 3.0 tr

MODEL NO.

CAPACITY(tons)

(a) VAS T102

0.8 tr

(b) VAS T122

1.0 tr

(c) VAS T182

1.6 tr

(d) VAS T242

2.1 tr

MARKETING ORGANIZATION:

Geographical Set-up:

The marketing of Videocon products is controlled by corporate marketing at Mumbai. The marketing set-up is geared to meet the requirement of four zones-West, North, South and East, at the first level. A zone comprises of few contiguous states with the sales control office located in the metropolitan cities of Mumbai, Chennai, New Delhi and Calcutta. A state has the controlling sales office for the state, based in the state capital. The current zone and region composition is given in Exhibit-II. A state comprises several branches/areas, located in the principal urban centers of each state. The principal office is known as Branch, while the smaller branches under the main branch is known as the Area Office. The branch/area is further having territories, which comprise the smallest geographical unit for sales.
COMPOSITION OF ZONE AND REGION STATE UNDER THE ZONE ZONAL OFFICE Andhra Pradesh Chenn ai Karnataka Tamil Nadu Kerala Delhi Rajasthan Greater Punjab Mumba i Nagpur Pune Lucknow Gaziabad Kolkatt a

ZONE South

North

Delhi

West

Mumba i Kolkatt a

UP/MP & East

Exhibit II

The Distribution Set-up:

Sales is carried out through four parallel distribution channels consisting of: y Retailers having Showroom in the Market. y Dealers having their own service set-up with Equipments. y Authorized Wholesale Distributors (AWDs) and Sub-dealers for up country. y Direct institutional sales. Direct dealers and AWDs are appointed for various product groups wherever felt necessary. The AWDs in turn have sub-dealers.

Marketing Organisation Structure: It is designed on the basis of product groups-Consumer Electronics and Consumer Appliances. The marketing function involves implementation of strategies and action plans. The function at Corporate Marketing in Mumbai predominantly involves Marketing and Sales Monitoring while the Zonal and other offices down the line are involved predominantly in sales. The organizational structure for corporate marketing is given in Exhibit-III.

The functional profile of the major groups relating to marketing and related function at Corporate Marketing is presented here. a) Head-Corporate Marketing :

He is the head for the entire marketing and sales function (M&S) and is responsible for the overall profitability for corporate marketing. b) Division Head: A division head (DH) looks after consumer electronics and appliances separately reporting directly to the head of corporate marketing. The division head looks after the sales and marketing function for their respective products. c) Product sub-division :

The division heads for consumer appliances and electronics will be assisted by a product sub-division (PSD) head separately for each of the products for the two groups. This is for CE-Colour TV, Black & White TV, Audio Products and Video Products. The product subdivision looks after the marketing aspects involving product management functions. c) Product Management :

The head for PSD for consumer appliances and electronics have individual heads for each product assisting them in the sales and logistic aspects of the product management function. d) Advertising Management :

The CA & CE have separate heads for executing the advertising management (AM) function. They directly interact with the concerned division heads and coordinate with the concerned PSD heads for advertising related aspects. Advertising Accounts (AA) is a separate function under direct supervision of the head corporate marketing. The outdoor media and the advertising rate database and the technical and financial verification of accounting bills payment is made by AA. They also interact with the concerned Advertising Management Heads for Consumer Appliances and Electronics in this regard. e) Marketing Accounts :

This function is the overall responsibility of the Head Marketing Accounts and Audit (MAA). He is supported by individual heads for Division Marketing Accounts (DMA) separately for CA and CE. The heads of DMA have indirect reporting responsibility to the concerned PSA heads for the CA and CE. The Operational Audit is looked after as separate function directly under the head MAA. f) Service Management :

This function for CA and CE is looked after by separate head. The Service Management Head for CA and CE report directly to their concerned division heads. It counterparts at various Zones report indirectly to their service management heads at corporate marketing.

c)

HRD and Personnel & Administration (P&A) :

The HRD and P&A functions looked after by separate heads as corporate marketing. Both of these functions are looked after together at zonal level. d) EDP and MIS:

The centralized EDP and MIS function at corporate marketing is placed directly under Head Corporate Marketing. The department assist other function and offices for their EDP and MIS function terms of computerization, documentation and their maintenance.

SALES ORGANISATION: The sales aspects in predominantly looked after by zone. States and Branches. The detailed functions are presented here: a) Zone :

Zones have separate heads looking after the related to CE and CA groups of products. The Zonal Heads (ZH) incharge of them report directly to the concerned division heads. The organization structure of the zone is given in the Exhibit-IV; the eligible and competent heads among the zonal heads is designated as the zonal heads for the administrative aspects by the Head Corporate Marketing in discussion with PSD Heads and Division Heads. The Zonal setup has separate setup for service for CE and CA and are reporting directly to the concerned Zonal Heads. The sales account functions reporting directly to the designated Zonal Heads and indirectly to the Division Marketing Account at Corporate Marketing separately for CE and CA. The service function at Zone is looked after by a separate Service Zonal Head (ZSH) for CE and CA reporting directly to the concerned Zonal Heads and indirectly to their Service Management Heads at Corporate Marketing.

b)

State :

The geographical sales region for each State is headed by separate State Head (SH) for sales management function for CE and CA. The setup at State is similar to that of Zone. The eligible and competent services head of the two is designated as service head for all administrative and statutory aspects, by a committee consisting of Zonal Head for CE and CA. Sales and Service, the Accounts and Division Heads. The Services Head reports sake of convenience and optimization of efforts, some states can be a combination of more than one state after considering the sales potential in the regions and the promotional efforts required. The State Head is supported by State Services Heads (SSH) for CE and CA separately. The SSH reports directly to their concerned Service Heads and indirectly to their Zonal Service Heads. The Sales Account function for CA and CE is looked after together by a separate head for State Sales Account (SSA) reporting directly to the SSH and indirectly to the Zonal Accounts.

a)

Branch :

Branch is specified to a state. The sales function at branches is carried out separately for CE and CA groups by separate Branch Heads (BH) appointed for the purpose. For sake of convenience and optimization, a single branch head looks after some of branches for both CE and CA. The organizational structure for the branch setup by corporate marketing is given in Exhibit-V. The eligible and competent branch head is designated as the branch head for carrying out the statutory and administrative functions, by a committee consisting of State Heads for CE and CA, Service and Accounts and Zonal Heads-CE and CA. The designated branch head represents Videocon International Ltd. On all statutory matters at branch. The Branch Head reports directly to State Head for all sales related matters. Sales Executive (SE) and Sales Officer assist the BH (SO) for each product group/product depending upon the sales potential in a branch. The SE/SO looks after the sales of particular product(s) within the assigned territory. The Branch Service Heads (BSH) incharge of CE and CA reports directly to the designated Branch Heads and indirectly to the State Service Head. The Branch Sales Account (BA) reports directly to the State Accounts and indirectly to the designated Branch Head. The branches have stores and stop points directly under their control to facilitate distribution of products sole. These are headed by a Store In-Charge (SIC) reporting directly to Branch Accounts and indirectly to the designated Branch Heads.

INTRODUCTION: Air conditioning is a process of simultaneous control of air for: y y y Temperature Control, Air Freshness, Filtration, dehumidification within a confined space.

The A.C. consists of the following important components: y y y y y Cooling coil, Condenser Coil, Compressor, Fan Motor, and Electrical Components.

The A.C. works on the following cycles of air: The Rooms Side Close Cycle A.C.`s blower on Cooling Coil side sucks the hot from the room. Then it cooled, dehumidified and redelivered back in the room. During the process, the room gradually becomes cold. The Outdoor Open Cycle A.C.`s fan on Condenser Coil side sucks the fresh air from outside atmosphere and delivers it back in the atmosphere after taking the heat from the Condenser Coil. The Refrigerant Cycle or GasThe closed cycle in which Compressor compresses the refrigerant gas through its piston inside its sealed body/dom and delivers it to the Condenser Coil then to the Cooling Coil and back. This recycling process is going on till A.C. machine is in ON position. The whole system (compressor, cooling and condenser coil) are attached with copper tubes. In Cooling Coil, cold refrigerant circulates whereas, in Condenser Coil, hot refrigerant circulates.

TYPES OF AIRCONDITIONERS (AC): Window AC: It is a most compact, versatile and cheapest air-conditioning system. It has the advantage of using single motor for both condenser and cooling coil side. It is a machinery assembled in one piece due to which installation at any sight is very easy and maintenance is also easier, cheaper and faster. Its front part (cooling coil side) is always kept in the room part and back part (condenser coil side) is in fresh environment i.e., outside for easy delivery of hot air. Split AC: It is the most versatile and little bit costlier than Window AC. It is assembled in two separate parts, one is evaporator/cooling unit and other is condensing unit. Cooling unit is installed at any part of room/basement, which cools the room and condensing unit at outside wherever suitable for easily delivering of hot air. These two units are connected with copper tubes and the gas charging process is also done at site where is installed. It is known as split AC because it is spitted in two parts. Cassette & Tower AC Packaged AC: It is used the area where the tonnage is high (approx., above 3.0 ton to 30 ton). It is economical inspite of Window/Split AC it is useful where the whole area is to be chilled simultaneously. Central AC: It is used for the area where the tonnage required is more than 30 tons. Thought the capital cost is higher but the running cost is very economical. In Central Air-conditioning, a final air-conditioning is done through cold water running through tubes. Videocon, the leader in Consumer electronics and Home Appliances, is a multi-faceted groups with a dynamic presence spread across the length and breadth of India manufacturing wide range if quality products. Videocon A.C.`s with Rotary Compressors are manufactured under D & D supply agreement with Matsushita Electric Company, Japanowner of the brand name National.

Models of Videocon Window AC:VAW 1022 A 0.8 TR AC provided with a super silent and power saving rotary compressor .Its cooling capacity is 9200 BTU/Hr. & power consumption is 930 Watt. It is suitable for 70-80 sq.ft. of room area. VAW 1222 A 1.0 TR AC provided with a super silent and power saving rotary compressor .Its cooling capacity is 12300 BTU/Hr. & power consumption is 1350 Watt. It is suitable for 100-120 sq.ft. of room area. VAW 1822/1823/1833 i A 1.6 TR AC provided with a super silent and power saving rotary compressor .Its cooling capacity is 18700 BTU/Hr. & power consumption is 1880 Watt. It is suitable for 150-180 sq.ft. of room area. VAW 2434 A 2.1 TR AC provided with a super silent and power saving rotary compressor .Its cooling capacity is 25200 BTU/Hr. & power consumption is 2500 Watt. It is suitable for 100-120 sq.ft. of room area.

MODELS OF VIDEOCON SPLIT AC:VAS T102 A 0.8 TR AC provided with a super silent and power saving rotary compressor .Its cooling capacity is 9000 BTU/Hr. & power consumption is 950 Watt. It is suitable for 70-80 sq.ft. of room area. VAS T122 A 1.0 TR AC provided with a super silent and power saving rotary compressor .Its cooling capacity is 12000 BTU/Hr. & power consumption is 1270 Watt. It is suitable for 100-120 sq.ft. of room area. VAS T 182 A 1.6 TR AC provided with a super silent and power saving rotary compressor .Its cooling capacity is 19300 BTU/Hr. & power consumption is 1900 Watt. It is suitable for 150-180 sq.ft. of room area. VAS G 182 A 1.7 TR AC provided with a super silent and power saving rotary compressor .Its cooling capacity is 19900 BTU/Hr. & power consumption is 1950 Watt. It is suitable for 170-190 sq.ft. of room area. VAS T 242 A 2.1 TR AC provided with a super silent and power saving rotary compressor .Its cooling capacity is 25200 BTU/Hr. & power consumption is 2440 Watt. It is suitable for 200-230 sq.ft. of room area. VA 2400 SPT (TOWER AC) A 2.1 TR AC provided with a super silent and power saving rotary compressor .Its cooling capacity is 25200 BTU/Hr. & power consumption is 2550 Watt. It is suitable for 200-230 sq.ft. of room area.

RC 30 SPT (TOWER AC) A 3.0 TR AC provided with a super silent and power saving Reciprocating compressor .Its cooling capacity is 36000 BTU/Hr. & power consumption is 3800 Watt. It is suitable for 300-330 sq.ft. of room area. VA2400 SPCA (CASSETTE AC) A 2.1 TR AC provided with a super silent and power saving rotary compressor .Its cooling capacity is 25200 BTU/Hr. & power consumption is 2550 Watt. It is suitable for 200-230 sq.ft. of room area.

RC 30 SPCA (CASSETTE AC) A 3.0 TR AC provided with a super silent and power saving Reciprocating compressor .Its cooling capacity is 36000 BTU/Hr. & power consumption is 3800 Watt. It is suitable for 300-330 sq.ft. of room area.

SALIENT FEATURES OF WINDOW AC:y y y y y y y y y y y y y y 20 Micron anti bacterial filter Multi-directional flow Fan speed (turbo / quiet) Sleep mode function Real time clock (in LCD remote) 24 hrs ON/OFF Timer Full function remote Soft touch digital panel Anti-corrosive blue fins for heat exchanger (condenser) Anti-freeze thermostat 1 yr warranty on air conditioners Resin coating for sheet metal (internal & external) 6 yrs warranty on compressor 3 mins times delay

SALIENT FEATURES OF SPLIT AC:y y y y y y y y y y y y y y y y 20 Micron anti bacterial filter Multi-directional flow 3 Fan speed Sleep mode function 24 hrs ON/OFF Timer Auto restart LCD remote Auto swing Silent operation Resin coating for sheet metal (internal & external) Singer Up Mechanism Anti-corrosive blue fins for heat exchanger (condenser) 6 yrs warranty on compressor 1 yr warranty on air conditioners 3 mins times delay Anti-freeze thermostat

SALIENT FEATURES OF CASSETTE AC:y y y y y y y y y y y y y y y y y Ion recharger 20 Micron anti bacterial filter Multi-directional flow 2 Fan speed Real time clock 24 hrs ON/OFF Timer Auto restart Anti-freeze thermostat 6 yrs warranty on compressor 1 yr warranty on air conditioners 3 mins times delay Self diagnosis function LCD remote Auto swing Silent operation Resin coating for sheet metal (internal & external) Anti-corrosive blue fins for heat exchanger (condenser)

SALIENT FEATURES OF TOWER AC:y y y y y y y y y y y y y y y y Ion recharger 20 Micron anti bacterial filter Multi-directional flow 2 Fan speed 24 hrs ON/OFF Timer Auto restart LCD remote Auto Swing 6 yrs warranty on compressor 1 yr warranty on air conditioners 3 mins times delay Self diagnosis function Silent operation Resin coating for sheet metal (internal & external) Anti-corrosive blue fins for heat exchanger (condenser) Anti-freeze thermostat

USF (Unique Salient Feature):-

Videocon presents a state-of-the-art range of Air Conditioners equipped with a unique Ion Recharger. The oxy-ion generator produces negative oxy-ions to remove air-borne pollutants such as smoke and dust particles. The positively charged atoms in the pollutants are neutralised by negative ions released by the oxy-ioniser. Thereby, ensuring an improved quality of air in your homes and offices.

The air we breathe is not what it used to be. Every but of smoke, dust and pollution which has been released into our fragile ionosphere remains suspended. And negative ions are nature's way of getting rid of them. Since polluting chemicals are positively charged atoms, any source that generates negatively charged atoms can neutralize them. An oxy-ioniser replenishes negative ions, which reduce pollution and other impurities. Thereby, recharging the air. A step ahead - The true Indian Multinational As India's largest exporter of Air Conditioners, Videocon has always been at the forefront of technological innovation. The company has many technological first to its credit. Videocon was the first to offer Rotary Air Conditioners and Air Conditioners with oxy-ions. Videocon Air Conditioners can generate more negative oxy-ions, approx 10 lac ions/cc, more than even the best nature can provide, to keep you recharged and refreshed. Videocon is the first Indian company to set up an advanced manufacturing facility in Muscat and Italy to supply state-of-the-art Air Conditioners to global brands. TECHNICAL SPECIFICATION:Cooling Capacity The cooling capacity of an Air-conditioner is measured in terms of Tons or BTU/Hr. (British Thermal Units per Hour) or Keal/Hr. (Kilo Calories per Hour). 1 Ton Cooling Capacity = 12,000 BTU per hour Or 3,000 Keal per hour Cooling Capacity of 1.0 Ton means the cooling achieved by melting of 1.0 Ton of Ice, if kept in the room. Power ConsumptionThe power consumption is measured in Watts (W). Area Calculation The Area of Room is calculated as: 100 Sq.ft. = Or 1000 Cubic Ft. =

1 Ton 1 Ton

(Note: The Tonnage of an Air-conditioner varies from 10% - 30% according to the Heat Load in a Room (Approx.)

INTRODUCTION: (About Air-conditioners) The invention of Willis Haviland Carriers A.C. system was back in 1902, marked the genesis of a new industry without which summers scorching heat and intolerable humidity would not have been surmounted. Air conditioning may be defined as the simultaneous control of all those factors affecting both the physical and chemical conditions of the atmosphere within any structure. These factors include temperature, humidity, motion, distribution, dust, bacteria, odors and toxic gases, most of which affect in greater or lesser degree, human health and comfort. Air that has been properly conditioned has one or a combination of the foregoing processes performed on it e.g., it has been heated or cooled; it has had moisture removed from it (dehumidified); it has been placed in motion by means of fans or other apparatus; and it has been filtered and clean. The Indian white goods category, which includes washing machines, refrigerators, air conditioners, vacuum cleaners, televisions et al, accounts for the largest chunk of domestic appliances market in value terms. Increasing income levels and changes in life styles have led to heavy demand for consumer durable, especially refrigerators, washing machines and air conditioners. Only two years ago, these were regarded as luxuries. Since then, they have penetrated most urban households. Estimatedly, the existing market for the consumer durable in India is over 30-35 million households with the top three-income groups-middle, upper and high accounting for a sixth of the population. Between 1986-95, while the proportion of the low-income group has fallen by eight percent, there was an almost equal rise in the top three groups. The air conditioner industry can be broadly divided into room air conditioners and central air conditioners-while the latter is suitable for controlling and maintaining ambient temperature and humidity in large establishments, high rise buildings and apartment complexes, the former is applicable for smaller areas, usually single rooms. The room air-conditioner is either Window A.C. or Split A.C. the Window A.C.s have been around for 40 years, whereas the split version originated in late 80s.

THE INDUSTRY:The Air Conditioners has a total market size of approx. RS. 4,000 crore. It can be classified into window, split, cassette Tower, packaged and chilling plant. Further, the split segment is divided into ducted and non-ducted. In the split air conditioner, the evaporator/cooling unit is separated from the condenser unit (having compressor). The window & split have a current market of RS. 2400 crore and the central air conditioners, including chilling plant, command a market of RS. 1600 crore. The market for air conditioner was earlier dominated by the unorganised sector as a result of high excise duties. The sector accounted for around 55-60% of the market share only twelve years ago. This unorganised sector looms large over profits. This segment is plagued the most by the unorganised sector, as it requires the low level of investment on technology. This proportion used to be 30:70 during 1991-92. Then lowering of excise duties from 110-16% favoured the organised sector by narrowing the price gap e.g., a 1.5 ton air conditioner which cost RS. 45,000/- in 199192 now costs only RS. 15,000/- in the organised sector against about RS. 13,000/- in the unorganised sector. THE GOVT. POLICY REGARDING A.C.S: The attitude of the government to the industry in general has been influenced by the perception of white goods as luxury items. Therefore, with every new central budget, the levies on these goods were jacked up, making these unaffordable for the better off. This considerably reduced the off-take of these items though huge demand was building up. Only after 1993 did the government liberalise its attitude towards white goods. Till 2006, excise duty on air-conditioners varied from RS. 1,800/- for 0.8 ton to RS. 3,500/- for 1.5 ton to 2.0 ton models. In the year 1994-95 to 2005-2006 budgets, the government gives considerable relief to air conditioning sector. The excise duty was reduced from 80% to 60% in 1994-95 and from 60% to 18% in the following years. In the Exim Policy, A.C.s continue to be in the negative list, which means they cannot be imported without license or a baggage.

DEMAND:Demand for A.C.s has never been better. The reason; fall in prices coupled with the increased purchasing power of the middle-class and the perception that an A.C. is no longer a luxury but a necessity due to increase in Ambient Temperature & Humidity. According to industry sources earlier 70-80 percent of the A.C.s sold are used for essential industrial applications, hospitals and pharmaceuticals and not merely for comfort, as it widely believed. A large part of the demand comes from the commercial and industrial sector, even the government is the major customer but now it proportionately covered by domestic sector also. The boom is luring many players including M.N.C.s to setup in India. Some of the major players are Videocon, L.G., Samsung, Hitachi, etc. These MNCs & Indians expected to be added this year are to the extent of one-lakh units in the windows & split segment. In the central and chiller segment, new capacities being added are by Carrier, Amtrex, Voltas and Blue Star. PROFITABILITY:Margins in the industry vary depending upon the segment, model and sizes, between a broad range of 5-10 percent. However, margins in the window segment are the least. But these are reasonable in case of Split A.C.s and higher in case of Cassette & Tower A.C. Even then, for players who have packed and chilly plant manufacturing facilities e.g. Carrier Aircon, Voltas, Blue Star, Daikin, Hitachi & L.G. margins are higher. Of Course, Margins are the highest in the central and packaged air conditioning segments ranging between 15-20 percent. IMPORTANT FACTORS: The important factors that govern profitability in the air conditioning industry are product technology, volumes, distribution network, after sales service and aesthetics. Most critical in the product technology is the compressor, which contributes about 40% of the total cost. The most common type is the notary compressor. This is well suited for the Indian conditions where the Humidity Ratio and ambient temperature are relatively high up to 52%. But the wear and tear is quite high if not properly used & voltage fluctuations are high necessitating frequent repairs. The reciprocating compressor is suitable for conditions where temperature does not exceed 45 degree Celsius. Beyond this, its cooling efficiency decreases. Hence, it is

suitable for dusty areas. Also it can withstand voltage fluctuations which are common in India up to the limit. The advantage of Rotary Compressor is that it is much more efficient than the reciprocating one at moderate temperatures, consuming less power with negligible wear and tear problems. Now scroll compressors are also used for higher Tonnage A.C. i.e. above 2 Ton.

BRIEF ABOUT COMPETITORS PROFILE: In the Air conditioning Industry especially Window and Split A.C.s, following companies has shown their presence: Daikin: The $4.5 billion Daikin Industries is a multi product company with the air-conditioning business comprising 74 per cent of its business. It has a 10 per cent share in the residential air-conditioning market and 36 per cent in the commercial air-conditioning in Japan. With a well-established presence in 8 major world markets, it is targeting to be a global leader in air-conditioning by 2005. Daikin is the only air-conditioning company worldwide which manufactures everything on its own from refrigerants till compressors. Voltas: Established in 1954, Voltas is India's premier air conditioning and engineering services provider. It offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, climate control, textile machinery, machine tools, mining and construction, materials handling, water management, building management systems, pollution control and chemicals . L.G.: LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB). Turnover for 2004 Crossed Rs.6500 Crores Hitachi: Hitachi Home & Life Solutions (India) Ltd., a subsidiary of Hitachi Home & Life Solutions, Inc., Japan, was first established in 1984. Headquartered in Ahmedabad, Gujarat, the company's manufacturing facility at Kadi is among the seven Hitachi room air conditioner facilities worldwide. With a total installed capacity of 250,000 units a year and turnover of over RS. 2800 million, Hitachi Home & Life Solutions (India) is amongst the top air-conditioning companies in India Samsung: Samsung India is the Regional Headquarters for Samsungs operations in SouthWest Asia, and a leading provider of high tech information technology, telecom, consumer electronics and home appliance products in the country. Samsung Electronics. Co Ltd. is a global leader in semi-conductor, telecommunication, digital media and digital convergence technologies with 2004 parent company sales of US$ 55.2 billion and net income of US$ 10.3 billion. QGeneral : Fujitsu General, Japan is part of US $ 50 billion Fujitsu group, a Fortune 100 company. Established in 1936, Fujitsu General has business interests in Air Conditioners, refrigerators, visual products, system, communications and electrical devices. Its credo is to be an attractive and energetic corporation that develops

business on a world level, coexists with the people of the world and practices open management. It's a leading player in the global air-conditioning market and is known essentially for its quality, technical superiority proven technology and innovative products. It operates in more than 130 countries and is a major player in 22 countries and is among the major three in another 36 countries

Indian Company Voltas Videocon O General Hitachi LG Samsung Daikin

Foreign Collaboration Purely Indian Purely Indian Purely Japan Japanese collaborated with Amtrex Purely S. Korean Purely S. Korean Purely Japanese
Exhibit VI

It deals with most efficient plan for gathering the needed information. The plan calls for the decisions on Data Sources, Research Instrument, Sampling Plan and Contact Method.

DATA SOURCES :Data was gathered through Primary and Secondary Data : 1. Primary Data -

It consists of original information gathered for the specific purpose. This data is generally collected by Observation, Survey or Experimental Method. 2. Secondary Method -

It consists of information that already exists somewhere, having been collected for another purpose. They offer the advantage of low cost and already availability. With the help of Secondary Data collected from various magazines, newspapers, Industries Trade Association and Computer. The actual sales of the industries, its growth rates and the share of different companies in the market was found out. RESEARCH INSTRUMENTS : To collect the primary data, the most common research instrument used was : 1. Questionnaire A questionnaire consists of a set of questions presented to respondents for their answers. For that two types of questionnaires were developed: y y For the present/prospective customers. For the experts (i.e., Dealers, Distributors, etc.)

Questionnaires are enclosed in Appendices. 2.Sampling Plan This calls for three decisions :y y Sample Units : Who is to be surveyed ? Sample Size : How many are to be surveyed ? Sample Procedure : How they are to be surveyed ?

As the Air conditioner is still a luxury product so far the survey purpose, the following people were considered : Exporters Banking Sector Hotel Industries Doctors Computer Centers Industrial Sector High Income Class Due to the limitations in the budget, a small sample size was taken and surveyed by adopting Judgement Sampling Procedure. In this method, researcher uses judgement to select population member who are good prospects for accurate information. Three types of contact method are used : The Mail Questionnaire Telephone Interview Personal Interview

For the present study, Personal Interview Method was chosen as it was the most versatile of the three methods. Here the interviewer can ask more question and can record additional observations about :1.Market Demand According to Philip Kotler, Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program. 2.Company Demand Company demand is the companys share of market demand. Qi = siQ Here, Qi = Companys demand, Si = Companys market share, and Q = Total market demand.

LIMITATIONS : Despite all possible efforts in conducting the research, there were some unavoidable situations, which limited the scope of the project : 1. Some of the dealers were not co-operative in giving the information, which hampered the actual calculation. Some of the confidential information viz. credit period, schemes, policies and sales figure were not disclosed by the competitors. The time-period allotted for the project was less when compared to the geographical extent of the area. The data collected from secondary sources i.e., journals, newspapers, magazines, etc. may be manipulated.

2.

3. 4.

Market S are f

& Spl t AC's (I F .) f Maj r Players

Ja pur 2005-06

It is found that L is on the top in Jaipur because of its accessive publicitywhile Videocon and Voltas are neck to neck there as shown below 4000 3500 3000 2500 2000 1500 1000 500 0 Video on L Voltas Samsung itachi Others Window Split

Market S are f AC (

%)

r a se Sect r

Ja pur 2005-06

6% 13%

4%

16%

Videocon L Voltas Samsung itachi Others 20% 41%

S are f

Spl t AC

Or a se sect r

Ja pur 2005-06

48% Window Split 52%

S are f
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 1438

Spl t AC f V e c

Ja pur 2005-06 (

f ures)

Videocon Windows and Split AC's sold are 1438 and 1362 pcs which shows a good sell of AC's, the reason found behind is good competitive prices and wide range of AC's. 9223 8677

1362

Window

Split

Freque cy f v s t by Sales Staff (%)


It is found that Customer's satisfaction is good in case of LG, Videocon, Voltas and Samsung as shown below 18 16 14 12 10 8 6 4 2 0 L Voltas Videocon Samsung itachi Others Good Average Poor

Ava lab l ty f pr
25

uct (%)

Customer's satisfaction level regarding availability of product is found to be good case of LG, Videocon, Voltas, Hitachi and others while Samsung is still struggling with supply constrants as shown below

20

Perce t

15

Good Average Poor

10

0 LG Voltas Videocon Samsung itachi Others

C
16 14 12 10 Perce t

sumer Pr c

f Pr

uct (%)

Customer's satisfaction level regarding consumer pricing of product is found to be good in case of LG, Videocon and Samsung where as pricing of Voltas, Hitachi and others are average as shown below:-

Good 8 6 4 2 0 LG Voltas Videocon Samsung Hitachi Others Average Poor

Dem
16 14 12 10 Perce t

strat

Pr

uct I f rmat

(%)

Consumer satisfaction regading demonstration and product information is e tremly good in case of LG only and then Samsung, it is average in case of Videocon and Voltas and poor in Hitachi and Others as shown below

Good 8 6 4 2 0 LG Voltas Videocon Samsung Hitachi Others Average Poor

Attract ve ess f Sc emes (%)


18 16 14 12 Perce t 10 8 6 4 2 0 LG Voltas Videocon Samsung Hitachi Others Good Average Poor Customer's satisfaction level regarding attractiveness of schemes is best in case of LG only, average in case of Videocon , Voltas and Samsung, poor in case of Hitachi and others as shown below

Qual ty f Pr
20 18 16 14 Perce t 12 10 8 6 4 2 0 LG Voltas Videocon

uct (%)

Customer's satisfaction level on and average is found to be average in case of Videocon , LG, Samsung, Voltas, Hitachi and other Brands as shown below

Good Average Poor

Samsung

Hitachi

Others

Existing Pr
16 14 12 10 Percent

uct Range (%)

Product range is found to be good in case of Videocon and LG, average in case of Samsung, voltas, Hitachi and others as shown below

Good 8 6 4 2 0 LG Voltas Videocon Samsung Hitachi Others Average Poor

After Sales Service (%)


16 14 12 10 Percent Good 8 6 4 2 0 LG Voltas Videocon Samsung Hitachi Others Average Poor After sales services are best in case of Videocon, average in LG, Samsung and Voltas and poor in Hitachi and others as shown below

Annual Maintainance C ntract (in %)


90 80 70 60 Percent 50 Percentage 40 30 20 10 0 LG Voltas Videocon Samsung Hitachi Others System of AMC is maximum found in case of Voltas and closely followed by Videocon LG and Samsung as shown below

Cre it Facility fr m Dealer (%)


Customers get Highest Credit Facility in Samsung and Lg followed by Videocon as shown below 90 80 70 60 Percent 50 Percentage 40 30 20 10 0 LG Voltas Videocon Samsung Hitachi Others

CONCLUSION :Relating to Customers : 1. Many customers do not believe that Videocon is using the Rotary Compressor of such reputed brands like Matsushita, Mitsubishi, Hitachi & Toshiba since it is not written or printed on the cartoon. Frequency of sales staff of Videocon in Jaipur city is quite satisfactory as compared to previous years to get more and more market show from MNCs. Quality of product was appreciated on an average by majority of the customers and dealers its a great mileage among MNCs. Availability of Product is good. So diversification chances are negligible. Pricing of window A.C.s is quite competitive but in case of split A.C.s, it is very good because the competitor prices are quite higher. Attractiveness of Schemes is on an average in Videocon for Customers. No A.C. ads are there in magazines and very few are there in newspapers at Local or National level, although Videocon Ads for other products are very frequent in National or Regional level papers. Demonstration & Product information are on an average in Videocon for Customers. There are very few or can say no hoardings in Jaipur City, the absence of which results in less motivation in dealers to rise their sale. Existing product range in Videocon is quite good so the Customers have a good scope of choice while selecting a particular model with latest features & aesthetics. The system of Annual Maintenance Contract (AMC) is average in Videocon. The credit facility is average in Videocon. After sales service is found good here so it increases brand loyalty.

2.

3.

4. 5.

6.

7.

8.

9. 10.

Relating to Dealers :

1.

Most of the dealers are satisfied with the schemes and margins, a few are not satisfied due to many reasons like their low sale of A.C.s or price cutting in an open market. Availability of product is sometimes not according to the demand at the time of season. Sales promotion inputs like banners and gates are not satisfactory. It is found that dealers do not know much about the make of compressors, technology & features of the machine. They identify the machines by saying that it is with Rotary Compressor. Almost not every dealer are sales & service dealer as it is very important for service based industry. DGS&D Rate Contract for Govt. Supplies gives a great push to dealers. Most of the dealers provide installation facility through their own service personnel. Sometimes spare parts are not available for replacement. Non-availability of training programs for the sales & service part for the dealers.

2. 3. 4.

5. 6. 7. 8. 9.

RECOMMENDATIONS :Price : In Window A.C. : The prices are little bit higher as per as there are some unique features but it is very difficult to compete with huge giants like LG, Samsung, Voltas etc. are found tougher sometimes. CT-3 Form : Voltas is supplying against CT-3 Form on which excise duty @ 16% is 100% exempted, so we are loosing on that side also. Sales Promotion :Promotion Schemes : Incentives to the customers should be given to attract them, like a free gift in the way of credit cards, inter cards, executive watches, membership of executive clubs, camera, mobile phones, etc. was purchase of every A.C. The unit wise incentives can be given, like worth of gifts should be increased depending upon the increase in the number of units purchased. For examples, for purchase of two air-conditioners a pair of Ray Ban Sun Glasses can be given, for three or more units, a music system can be given and likewise free foreign tours on five A.C.s or more. Handsome Discount or free gift on a joint purchase of television, audios or refrigerators along with an A.C. can be given to the customers. It will help the company to make the customer totally Videocon products oriented, thus paving way for other Videocon products in that house. The existing actual loyal customers are motivated through promotion schemes, like if any existing customer helps in bringing a demand of A.C., he/she can be awarded by a gift. A.C., being a luxury service based and costly product, people generally discuss with other A.C. users before buying. Thus their involvement in buying a brand and the product is very high. This gift will be like fixed discount in % for buying any Videocon Product once in a year. Interdealer competitions is always there, so there must be restrictions/punishment for not to sale beyond the point and best dealer award should be given so it further motivate the dealers.

Advertisement : Electronic Media has a very effective reach in each and every potential household, but Videocon is not using this media. Videocon must have very effective and attractive T.V. and radio advertisements, so that all the family members can be acquainted with the special features of Videocon A.C.s. This is necessary because the decision of purchasing any high involvement product has the pre purchase consent of all the family members. Print Media has a widespread reach to the customers and it makes a good impact on them when they read advertisements in newspapers and magazines, so there must be frequent advertisements in magazines and local newspapers on corporate level. Combined Ads consisting of names and addresses of all the dealers of Rajasthan should be given, because people of small towns have a tendency to buy the A.C. from bigger towns, inspite the existence of dealer in their own town. The advertisements should be of bigger size and more attractive with some unique features. And at least one colourful advertisement must be given in the newspaper in a month at the time of season. Contact Building : Videocon must arrange timely get-together for building contacts with higher officials of the corporate and government, which will help in developing and strengthening their brand loyalty towards Videocon. There should be schemes for Architects, Builders and Interior Decorators such as subsidized A.C.s for their offices, free gifts with every unit sold, etc., so that good contacts can be maintained with them. Display Model : Dummy A.C.s must be arranged for the display at the dealers showroom with stand.

Product : Availability : Since Videocon has a very good brand equity in the market, in terms of strong brand image, wider brand awareness, product quality and after sales service, so there is a rising trend in the demand of Videocon A.C.s but due to the demand exceeding the supply, the product is poorly available to the customers sometimes at that time, benefit goes to competitors. So, to create good brand image of Videocon A.C.s in the market, to build good relations with the customers and to retain customer loyalty, it is very essential that the product must be available all the time. Range : There is rising trend in the demand of ductable & chilling plant. A.C.s in the market, which is going to touch a good ratio. For ductable & chilling Plant A.C.s the demand growth will come from commercial complexes, and the corporate sector because of the rising constraints on space. Generic selling will give way to sleekness of design, power, efficiency and low noise as the key proposition in the market. Hitachi, Blue Star and Voltas are having an upper hand by serving the market with a wide range of these A.C.s So, considering the rising trend in the demand of ductable & chilling plant A.C.s, Videocon must introduce a wider range. During the research, it is found that Videocon lost so many mixed orders of Ductable & Chilling Plant A.C.s. Though customer had a preference for Videocon Window & Split A.C.s but due to lack of full range of A.C.s, the whole of the mixed orders were lost. The market for Ductable & Chilling Plant A.C.s have a good growth rate but it is, at present, not served by Videocon. Its demand is coming from small industries-commercial and corporate sector, which makes a big market to be served to increase profits and market share. So Videocon must come up with a range of Ductable & Chilling Plant A.C.s to put its seat firmly in the air conditioning industry and to built up a strong brand awareness

and brand image in the commercial sector so that a further demand of all types (window and split) of A.C.s can be developed from existing clients. Grills Protection : Grills supplied by VIL are sometimes found scratched / damaged. So it need to be properly / safely cartooned. Different Models : In Window A.C.s, the model supplied was from right hand side air flow means the air comes from right hand side of the A.C. which doesnt suit some places for better cooling. To meet out this problem, Videocon requires giving left-hand side airflow models like Hitachi, Carrier Aircon, etc. Sometimes a wide range of product also creates confusion among customers to select if a dealer didnt convince properly. Sales Force / Training : Sales staff, which is very essential for any company, should be sufficient in number and adequately trained to bring about better communication and to maintain good relations with the customers and between the company and the dealers. For this, Videocon must have a sound training facility for its sales personnel and Service Engineers. Jaipur being a large market, requires such people to carry out the activities in terms of better communication (for convincing technically sound personnel), better motivation, better follow-up and defining the potential customer to the dealer in his area, thus not overburdening one person to handle large area. This result into more effectiveness of dealers. After Sales Service : A Very good and quick sales service not only satisfy the customer having high expectations but also provide him a feeling of satisfaction and thus ensures his loyalty towards the brand. For thus, Videocon must provide a sound facility and faculty for technical training for the dealers to train their service personnel. These training centers must be setup at branch levels to facilitate easiness in providing training. Presently, dealers are not willing to store even the essential spare parts because they dont get any profit on his investment for spare parts. So, by considering spare parts as a product and giving margins on that, the storage of spare parts can be justified to dealers.

Though, the after sales service is a backup system for customers and this policy can create such a situation wherein dealers will replace unnecessary parts for increasing profits. But these activities can be restricted by designing a control system for it. Secondly, Videocon serves with the best available quality product, which requires least maintenance so this wont create hefty problems. Moreover the A.C. users are least bothered about the charges incurred in servicing rather he is more concerned with his comfortability. Advanced tools like digital tong tester, digital thermometer, etc. should be provided to the outstanding dealers. Apart from all these things, dealers must be provided with a well-defined catalogue for the quick and proper identification of spare parts.

Finance Scheme : Estimatedly, the existing market for consumer durables in India is over 100-110 million households with the top three income groups-middle, upper middle and high-accounting for the sixth of the population, Between 1986-95, while the proportion of the low income group has fallen by 8 % there was an almost equal rise in the top three groups. But the middle class who accounts for the largest proportion among three is not able to pay such an amount in one single payment. The family disposable income of this class varies from RS. 10,000 - RS. 30000 per month, so a consumer finance scheme 0 % will obviously have an important role to play in the A.C.`s market scheme of things. For this, Videocon must launch a 0 % finance scheme in collaboration with some well-reputed finance companies. Under this scheme, the consumer can borrow up to 70 % of the price of the product, subject to his repayment capacity. This scheme will be obviously targeted at the salaried class who would find it difficult to part with a hefty sum for an A.C. By this scheme, these consumers will definitely put A.C.`s in their preference list. These types of schemes can be launched at national level or at branch level, as per the convenience of the company. By launching these finance schemes, the market will grow at a very fast pace. Secondly, by this scheme, the demand can be well stimulated during of-seasons, like during Diwali festival, people get bonus and incentives and being a holy festival, people become willing to spend on premium items, so this opportunity can be very well enchased, thus the demand can be well-spread over the whole year, thus reducing the demand during the peak seasons.

Leaflets : Leaflets for A.C.`s which are being supplied to dealers have information for all type of A.C.`s being shown together. This leaflet supplies all the information concisely for all type of A.C.`s but it appears that this leaflet falls to create interests about a particular A.C. according to the requirement of the customer. In addition to this leaflet, separate single sheet leaflet must be designed for separate A.C.`s By this way, customer will spend more time in seeing and understanding about the particular A.C. according to his requirement. This will create more interest in customers mind which will lead into more acquaintance and more information about that particular A.C. and he will devote more time in getting familiar with the product by discussing about it with the dealer at length.

Technical Education : It has been found that most of the dealers do not know about the technological specifications of the A.C. They know about category that it is with Rotary Compressors. So, dealers must be educated with all technical aspects to get business from the mouth of competitors.

Bibliography
MARKETING MANAGEMENT MARKETING RESEARCH Philip kotler C.K KOTHARI

ECONOMIC TIMES

INDIA TODAY

INTERNET ---- WEBSITE OF VIDEOCON NORTHERN INDIA REFGERATION AND AIR CONDITIONING TRADE ASSOCIATION CIRCULAR ANNUAL REPORT OF VIDEOCON INTERNATIONAL