VOLTAS AC – A STUDY ON CONSUMER BEHAVIOR

• Submitted By-• Nitika Garg• Deepika Thakur• Meenu Goswami• Palak Madan• Tarandeep Kaur• Gourav Mukhija

INTRODUCTIONTHE TATA ‘s

• Tata Group is one of India's largest and most respected business groups.

• Tata Comprises of 96 operating companies in seven business sectors.

• information systems and communications; engineering; materials; services; energy; consumer products; and chemicals.

• Operates in more than 54 countries across six continents, • Its companies export products and services to 120

nations.

VOLTAS

• Established in 1954 in collaboration with Volkart Brothers, a Swiss firm and Tata Sons Limited.

• Manufactured the first ever room air conditioner in 1954.• Introduced the first innovative split air conditioner in 1984.• Introduced the tall and elegant slimline air conditioner in

1993.• Among the first to launch sub 1.0 Ton ACs.• Introduced Energy Efficient Air-Conditioners in 2007• First to introduce corner split AC in 2009

Business Organization

RESTRUCTURING OF VOLTAS• Product: 71 new products Initiative- Launched 1.5 Ton AC• Channel revamp: Weed out Non-Performing Dealers Investment in Training• Brand Building: “AC with IQ” Aspirational Theme "India ka AC”

OPERATING PROFITS & REVENUE

Split Ac segment has grown with 38% while Windows segment contributes 17%.

STPSEGMENTATION TARGETING POSITIONING

Mass Segment Middle Income GroupsAll age groups

Power saving, value for money, Indian factorFamily Factor.

Premium Segment Upper ClassAll age groups

High Technology, New Design.

Commercial Segment In Malls, Offices etc. Ambience Mall, Gurgaon, Dell Office Chandigarh.

POSITIONING

PRICE & PRODUCT

Vertis Pristine ACRs 28990(0.75 Ton)- 33990(1.0Ton)

SlimLine ACRs 46,990(2 ton)-Rs

66,990(3 ton)

Cassette ACRs 61,490 (2 ton)-Rs 106,864(4 ton)

Vertis Split ACRs 15990(1 ton) - Rs34990(2 ton)

PLACEFactory

1.Inhouse Manufacturing2.Outsourced Manufacturing

Warehouse

Distributors

Dealers & Retailers

•Company has adopted a flexible Business Model

•To reach semi-urban and rural Market-Expansion of network of dealers, distributors and retailers in 2009.

•Focus on Service Infrastructure.

PROMOTION• The new advertising platform of

‘Sensible Cooling’.• Voltas AC TV commercial is running

across various channels such as NDTV 24X7, Aaj Tak, CNBC, Times Now, Discovery and National Geographic.

• CSR- It is running a campaign, titled Jagmag Desh Mera, by TERI.

Contd.• Print ads - The Times of

India, Hindustan Times and The Hindu newspapers.

• Websites used- Yahoo!, Rediff, MSN, Sify and NDTV.com

• Radio campaign on Big FM• Below-the-line activities

across eight metros and Tier II towns.

COMPETITORS• LG• Samsung• Hitachi• Haier• Videocon• Bluestar• Carrier• Others(Including O-general etc)• Unorganized Sector

17%

27%

19%7%

30%

VOLTASLGSAMSUNGHITACHIOTHERS

MARKET SHARE IN ROOM AC SEGMENT

The Room AC Segment is expected to grow by 25% in coming years.

CONSUMER BEHAVIOR

PERSONALITY• Cognitive

Personality factors

• Ethnocentrism

• Reliability

PERCEPTION• BEFORE-

Outfashioned, outdated bulky “Dabbas”. .

• PRESENT- Good Quality , TATA Brand

MOTIVATION• Voltas Vertis

brand- SATISFACTION

• PRISTINE-EGO

• Friends and Relatives

ATTITUDECognitive-Affective-Conative

COMMERCIAL SEGMENT• Caters to Light commercial segment • Products: Venture range of products that includes

Floor Standing (Slimline), Cassette and Ductable Air Conditioners.

• Supported by strong R&D and technical support• Hyderabad International Airport ,ITC Mumbai, Dell

Chandigarh, Sahara Ganj Mall, Lucknow

•QUESTIONNAIRE ANALYSIS

Q1.WHICH AC BRANDS DO YOU KNOW?

LG

SAMSU

NG

HITACHI

GODREJ

WHIRLP

OOLHAIER

VOLTAS

CARRIER

O GENER

AL

BLUES

TAR

VIDEOCON

ONIDA

OTHER

S0

5

10

15

20

25

30

3533 33

19

8

14

7

24

5 5

10

45 5

In our survey, we found that 24 out of 45 are aware of Voltas AC whereas LG and Samsung are more popular among people

Q2.HOW MANY HOURS DO YOU USE AC IN A DAY?

1

19

23

2

2 HOURS3-5 HOURSMORE THAN 5 HOURSWHOLE DAY

Q3.WHICH AC BRANDS YOU CONSIDERED WHILE MAKING YOUR PURCHASE DECISION?

26

2216

4

14

8

12 2

LGSAMSUNGVOLTASHAIERHITACHIWHIRLPOOLBLUESTARO GENERALONIDA

35 % among 45 people will consider Voltas while making their purchase decision. Whereas this is highest for LG with 57%.

Q4.WHICH AC BRAND HAVE YOU BOUGHT?

16

15

6

1

2

4

3

31 1

LGSAMSUNGVOLTASONIDAO GENERALHITACHIBLUESTARGODREJWHIRLPOOLHAIER

Q5.WHAT IS THE MEDIUM OF INFORMATION?

TVC

NEWSPAPER

INTERNET

FRIENDS & RELATIVES

RETAIL OUTLETS

TRADE FAIRS

0 5 10 15 20 25 30

27

11

14

12

13

2

The most important source of information came out to be TVC and internet is at second number and retail outlets are at third number.

Q6.WHY DO YOU PURCHASE AC?

COOLING ABILITY

UNIFORM COOLING

STAR RATING

AFTER SALES SERVICES

PRICE

PROMOTIONAL ACTIVITY

DESIGN

WEIGHT

0 5 10 15 20 25 30 35

29

8

22

18

21

8

7

3

In our survey, we find that cooling is the most important factor in making AC purchase decision.

Q7.ARE YOU SATISFIED WITH YOUR PRESENT AC??

LG

HITACHI

SAMSU

NG

WHIRLP

OOL

VOLTAS

GODREJ

O GENER

AL

BLUES

TAR

HAEIR0

2

4

6

8

10

12

14

16

18

TOTALYESNO

Out of 45 people, 13 have bought Samsung and all 13 are satisfied with its performance.

Q8.HAVE YOU EVER BOUGHT VOLTAS AC

10

35

YESNO

Out of 45 people, only 13% has said that they have bought Voltas AC whereas 35% has bought LG and 33% bought Samsung.

Q9. WHAT DO YOU FEEL ABOUT AFTER SALES SERVICES?

4

27

12

2

FULLY SATISFIEDSATISFIEDAVERAGE SATISFACTIONBELOW SATISFACTION

Q10. WILL YOU BUY IT AGAIN?

30

7

8

YESNOMAY BE CONSIDERED

30 out of 45 people have said that they will buy their present AC again.

Q11. WILL YOU SUGGEST IT TO YOUR FRIENDS?

33

12

YESNO

Out of 45, 33 said they will suggest it to their friends.

Q12. What comes to your mind when you think of Voltas AC?

• Good quality• Tata product • Average AC• Indian AC• Cooling ability & size• Bad service• Value for money• No comments

RECOMMENDATIONS

• Voltas should come up with new and good schemes for consumers like discounts, coupons etc.

• It should provide more profit margins to its dealers.• Brand building exercises and other Marketing

strategies need to be strengthened.• Voltas should focus on the availability of its products

like Voltas Vertis(0.75 Ton)

PRESENT SCENARIO• Present Industry Trends:

1. Energy Efficient Star Rated Acs2. Higher growth in Split AC Segment

• Multiple options for multiple niches1. Launched new range of 50 AC models for the coming summer

season.2. Has choices in terms of features, tonnage, price and other

parameters.3. Focus on market’s heterogeneous nature.

• At its upper end, the range includes the Gold, Platina and Plus versions of the flagship Vertis brand.

THANK YOU