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A Summer Internship Project Report on
Study on awareness of ‘TISVA’ Lights among retailers - Retail Shop
Audit
Submitted in partial fulfillment of the requirements for the degree of
Post Graduate Diploma in Management (Marketing)
by
PRATIK J. MUNDHADA
Roll No. PGDM-0068/15
Under the guidance of
Dr. T. Pillai
A Study Conducted for USHA INTERNATIONAL LTD.
At
Indira Institute of Management,
Tathawade, Pune 411033
(2015-17)
2
Acknowledgement
It is indeed of great moment of pleasure to express my senses of per found gratitude to all the
people who have been instrumental in making my training a rich experience. I got an opportunity to
get a project in USHA INTERNATIONAL.
For this, I would like to thank Mr. Uday Tiwary (Senior Sales Manager) who talked to the
concerned person and without whom an internship with the company would not have been possible.
I express my gratitude to Prof. K. P. Mishra and my project guide Dr. T. Pillai for giving me an
opportunity to work and make the best out of my internship.
My heartfelt gratitude also goes out to the employees at TISVA Mr. Ranjesh kumar
(Deputy Sales Manager- A&I), Mr. Manish kumar (Territory sales manager- Retail), Mr. MD
Tanveer (Technician), Mr. Shivaprasad (Store manager) and Mr. Kurbaan for having co-
operated with me and guided me throughout the training period. I thank my college, INDIRA
INSTITUTE OF MANAGEMENT, Pune for having given me this opportunity to put to practice,
the theoretical knowledge that I imparted from the program.
Pratik J. Mundhada
PGDM-0068/15
IIMP, Pune
3
DECLARATION
I PRATIK J. MUNDHADA, a bonafide student of PGDM programme at Indira Institute of
Management, Pune, hereby declare that I have undergone the summer training at USHA
INTERNATIONAL LIMITED under the supervision of Mr. Uday Tiwary from 9th of June to
31st of July 2016. I also declare that the present project is based on the above summer training and
is my original work. The content of this project report has not been submitted to any other
university or institute either in part or in full for the award of any degree, diploma or fellowship.
Further I assign the right to the institute, subject to the permission from the organization concerned,
use the information and content of this project to develop cases, papers, etc for publication and for
use in teaching.
Pratik J. Mundhada
PGDM-0068/15
IIMP, Pune
4
INDEX
Table of Contents Sr. No. Contents Page. No.
I Executive Summary 6
1 Chapter I: Introduction and Rationale of the study 7
1.1 Introduction 7
1.2 Significance of the study 9
2 Chapter II: Industry Profile 10
2.1 Overview of the industry 10
2.2 Contribution of the sector towards GDP 11
2.3 Trend of industry performance for last three years 11
2.4 Major players in the industry 12
2.5 PEST analysis 14
3 Chapter III: Company profile 16
3.1 History 16
3.2 About management 18
3.2.1 USHA management team 19
3.2.2 Verticals of Usha International ltd. 20
3.2.3 TISVA management team 21
3.3 Company mission and vision 23
3.4 Companies footprint 23
3.5 Marketing organization 24
3.6 Product portfolio 24
3.6.1 Total products of TISVA 24
3.7 Customer segments and channel distribution 27
4 Chapter IV: Business performance 28
4.1 Market share 28
4.2 Organizational growth 29
4.3 New product launches 34
4.4 Technological Tie-up 35
4.5 Rewards and Recognition 36
4.6 Business SWOT analysis 37
5 CHAPTER V: THEORETICAL/CONCEPTUAL FRAMEWORK 38
5.1 What is consumer behaviour 38
5.2 Evaluation of consumer behaviour 38
5.3 Consumer buying process 39
5.4 About Indian consumer durables industry 40
6 CHAPTER VI: OBJECTIVES AND SCOPE OF PROJECT 41
6.1 Objectives 41
6.2 Scope of project 41
7 CHAPTER VII: METHODOLOGY OR ACTION PLAN 42
7.1 Research methodology 42
7.2 Research Design 42
7.3 Data collection 42
7.4 Action plan 43
8 CHAPETER VIII: ANALYSIS AND FINDINGS 44
8.1 Data analysis 44
8.2 Findings 49
9 CHAPTER IX: CONCLUSIONS & SUGGESTIONS 50
APPENDIX I- QUESTIONNAIR 51
APPENDIX II- ABBRIVATION 53
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List of Tables
Sr. No. Name of Tables Page. No.
1 Competitors of TISVA 29
2 TISVA Brand Awareness 44
3 Awareness through various sources 45
4 Awareness of Franchise partner & Distributor 46
5 Distributor coverage 47
6 Scheme communication to retailers 48
Table of Figures
Sr. No. Figure name Page. No.
1 Verticals of USHA 20
2 TISVA foot print in Indian market 23
3 Product portfolio 24
4 TISVA channel partner 27
5 Architect/ID sale 30
6 MIS sale YTM 2015-16 30
7 MIS sale Pune store 2014-15 31
8 Total MIS sale 31
9 Primary sale YTM 2015-2016 32
10 Primary sale YTM 2014-15 32
11 Consumer behaviour 38
12 TISVA Brand Awareness 44
13 Awareness through various sources 45
14 Awareness of Franchise partner & Distributor 46
15 Distributor coverage 47
16 Scheme communication to retailers 48
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Executive Summary
“Study on awareness of ‘TISVA’ Lights among retailers - Retail Shop Audit”
This study is conducted for USHA International ltd. This study focuses on retail survey for TISVA, Special
Business Unit of USHA International Ltd. This study based on concept of marketing mix. Marketing is
simplistically defined as ‘putting the right product in the product in the right place, at the right price, at the
right time’. Though this sounds like an easy enough propositions, a lot of hard work and research needs to
go into setting this simple definition up. And if even one element is off the mark, a promising product or
service can fail completely and end up costing the company substantially.
Importance of the project: -
This project help to increase awareness about TISVA brand among retailers segment and this also provide
better solution for them in lighting decision. This project helps to understand the retailers need as well as
market requirements and trend in lighting industry.This study helps, TISVA to understand where they
required focus and suitable promotional activity to increase their brand awareness and market share.
Objectives of the project: -
To study the awareness level of TISVA products range among the exiting users especially in
wholesale and retail outlets.
To examine the marketing activities of the distributors relating to TISVA utility product.
To do price mapping and scheme communication to retailers.
Methodology adopted: -
For this project research design is based on descriptive research methodology. The various tools used in
conducting the surveys are as follows:-
Observation method
Personal interviews
Finding of the projects: -
This project come up with various finding related to products and price and promotion activity of TISVA. Such ae
findings of the retail survey, less availability of running products and incomplete product range, update product in
speedy way and finding about product pricing. This report explains this finding in deep in subsequent chapters.
Learning from the project: -
This project gives real good platform to apply theoretical concept in a practical way. Also give golden opportunities to
understand the FMCD sector and its marketplace. How the day in and day out process are happening in this
marketplace.
Conclusion:-
For TISVA market is very potent and has very good scope to be in the market and strong competition
to existing players.
Pune market is very vast in size and territory it is very important to increase sales persons to capture
whole territory. Distributors needs to be shown more activeness to grow and reach out whole market.
Franchise and channel distributors are capable enough to penetrate local market somehow; they are
lacking to achieve this. It is need to understand their views on it.
7
CHAPTER I: INTRODUCTION AND RATIONALE OF THE STUDY
1.1 Introduction:-
“Study on awareness of ‘TISVA’ Lights among retailers - Retail Shop Audit”
Marketing is simplistically defined as ‘putting the right product in the product in the right place, at the right
price, at the right time’. Though this sounds like an easy enough propositions, a lot of hard work and
research needs to go into setting this simple definition up. And if even one element is off the mark, a
promising product or service can fail completely and end up costing the company substantially.
The use of marketing mix is an excellent way to help ensure that ‘putting the right product in the right
place…’ will happen. The marketing mix is a crucial tool to help understand what the product or service can
offer and how to plan for successful product offering. The marketing mix is most commonly executed
through the 4 P’s of marketing: Product, price, Promotion and Place.
The Four P’s
Product
The product is either a tangible good or an intangible service that is seem to meet a specific customer need
or demand. All products follow a logical product life cycle and it is vital for marketers to understand and
plan for the various stages and their unique challenges. It is key to understand those problems that the
product is attempting to solve. The benefits offered by the product and all its features need to be understood
and the unique selling proposition of the product need to be studied. In addition, the potential buyers of the
product need to be identified and understood.
Price
Price covers the actual amount the end user is expected to pay for a product. How a product is priced will
directly affect how it sells. This is linked to what the perceived value of the product is to the customer rather
than an objective costing of the product on offer. If a product is priced higher or lower than its perceived
value, then it will not sell. This is why it is imperative to understand how a customer sees what you are
selling. If there is a positive customer value, than a product may be successfully priced higher than its
objective monetary value. Conversely, if a product has little value in the eyes of the consumer, then it may
need to be underpriced to sell. Price may also be affected by distribution plans, value chain costs and
markups and how competitors price a rival product.
Promotion
The marketing communication strategies and techniques all fall under the promotion heading. These may
include advertising, sales promotions, special offers and public relations. Whatever the channel used, it is
necessary for it to be suitable for the product, the price and the end user it is being marketed to. It is
important to differentiate between marketing and promotion. Promotion is just the communication aspect of
the entire marketing function.
Place
Place or placement has to do with how the product will be provided to the customer. Distribution is a key
element of placement. The placement strategy will help assess what channel is the most suited to a product.
How a product is accessed by the end user also needs to compliment the rest of the product strategy.
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DEVELOPING A MARKETING MIX
Intuition and creative thinking are essential job requirements for a marketing manager. But relying on just
these can lead to inaccurate assumptions that may not end up delivering results. To ensure a marketing mix
that is based in research and combines facts with innovation, a manager should go through the following
systematic process:
Step 1: Defining Unique Selling Proposition
The first item on the marketing manager’s agenda should be to define what the product has to offer or its
unique selling proposition (USP). Through customer surveys or focus groups, there needs to be an
identification of how important this USP is to the consumer and whether they are intrigued by the offering.
It needs to be clearly understood what the key features and benefits of the product are and whether they will
help ensure sales.
Step 2: Understanding the Consumer
The second step is to understand the consumer. The product can be focused by identifying who will
purchase it. All other elements of the marketing mix follow from this understanding. Who is the customer?
What do they need? What is the value of the product to them? This understanding will ensure that the
product offering is relevant and targeted.
Step 3: Understanding the Competition
The next step is to understand the competition. The prices and related benefits such as discounts, warranties
and special offers need to be assessed. An understanding of the subjective value of the product and a
comparison with its actual manufacturing distribution cost will help set a realistic price point.
Step 4: Evaluating Placement Options
At this point the marketing manager needs to evaluate placement options to understand where the customer
is most likely to make a purchase and what are the costs associated with using this channel. Multiple
channels may help target a wider customer base and ensure east of access. On the other hand, if the product
serves a niche market then it may make good business sense to concentrate distribution to a specific area or
channel. The perceived value of the product is closely tied in with how it is made available.
Step 5: Developing Communication / Promotion strategy
Based on the audience identified and the price points established, the marketing communication strategy can
now be developed. Whatever promotional methods are finalized need to appeal to the intended customers
and ensure that the key features and benefits of the product are clearly understood and highlighted.
Step 6: Cross-check of the Marketing Mix
A step back needs to be taken at this point to see how all the elements identified and planned for relate to
each other. All marketing mix variables are interdependent and rely on each other for a strong strategy. Do
the proposed selling channels reinforce the perceived value of the product? Is the promotional material in
keeping with the distribution channels proposed? The marketing plan can be finalized once it is ensured that
all four elements are in harmony and there are no conflicting messages, either implicit or explicit.
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1.2 Significance of the study:-
This study helps to know that there is huge market for lighting but currently few organized players in market
like Philips, Havells, Wipro, Crompton Greaves(CG) and Bajaj are the existing player and doing very well.
But count is increasing very fast as few more players come in competition like Eveready, Syska, OSRAM,
TISVA and count still increase. This research shows there is huge scope for USHA International Ltd. in
decorative and utility lights both. But when we look at competition in market especially from new players in
market for USHA (TISVA) this will be tuff nut to crack.
This project help to increase awareness about TISVA brand among retailers segment and this also provide
better solution for them in lighting decision. This project helps to understand the retailers need as well as
market requirements and trend in lighting industry.
This study helps, TISVA to understand where they required focus and suitable promotional activity to
increase their brand awareness and market share. This study also going to help management to understand
the market trend, product development, pricing structure and competitors activities.
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CHAPTER II: INDUSTRY PROFILE
2.1 Overview of the industry:-
India’s consumer durables industry is valued at $9.7 billion as of 2015. This sector is expected to grow to
$20.6 billion by 2020 and become the fifth largest in the world by 2025.
The consumer durables industry can be categorized into two segments:
Consumer electronics (brown goods) – such as televisions, laptops, cameras, computers, and audio
systems
Consumer appliances (white goods) –washing machines, kitchen appliances, microwave ovens,
cleaning equipment, air conditioners, and fans
About two-thirds of India’s consumer durables are currently sold in urban markets. The most popular
consumer electronics are color television sets. Electric fans and air conditioners are popular due to India’s
hot climate. Other top consumer durables include refrigerators and washing machines.
The majority of consumer durables production occurs in Delhi and Uttarakhand in the north, West Bengal in
the east, Tamil Nadu in the south, and Maharashtra and Gujarat in the west.
Light industry is industry that is usually less capital-intensive than heavy industry, and is more consumer-
oriented than business-oriented (i.e., most light industry products are produced for end users rather than as
intermediates for use by other industries). Light industry facilities typically have less environmental impact
than those associated with heavy industry, and zoning laws are more likely to permit light industry near
residential areas. It is the production of small consumer goods.
One economic definition states that light industry is a "manufacturing activity that uses moderate amounts of
partially processed materials to produce items of relatively high value per unit weight".
Examples of light industries include the manufacturing of clothes, shoes, furniture, consumer electronics and
home appliances. Conversely, industries such as shipbuilding would fall under heavy industry.
2.1.1 Characteristics
Light industries require only a small amount of raw materials, area and power. The value of the goods is low
and they are easy to transport. The number of products is high. While light industry typically causes little
pollution, particularly when compared to heavy industries, some light industry can cause significant
pollution or risk of contamination. Electronics manufacturing, itself often a light industry, can create
potentially harmful levels of lead or chemical wastes in soil due to improper handling of solder and waste
products (such as cleaning and degreasing agents used in manufacture).
2.1.2 About Consumer Durables
Consumer durables refer to those consumer goods that do not quickly wear out and yields utility over a long
period of time. Some of the popular and common examples of these kinds of items are electronic goods,
kitchen appliances, home furnishings and leisure equipments etc. Consumer durables can be broadly
categorized into the following 3 heads:
White Goods: White goods mainly include air conditioners, refrigerators, washing machines, audio
equipment and speakers.
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Brown Goods: This kind of consumer durables mostly include kitchen appliances like chimneys, electric
fans, grinders, iron, microwave ovens, mixers and varied other cooking ranges.
Consumer Electronics: Some of the mostly used consumer electronic goods are DVD players, MP3 players,
mobile telephones, telephones, VCD players, Lighting, etc.
2.2 Contribution of the sector towards GDP India is expected to become the fifth largest consumer durables market in the world by 2025. The consumer
electronics market is expected to increase to US$ 400 billion by 2020. The production is expected to reach US$ 104
billion by 2016.
The sector is expected to double at 14.7 per cent compound annual growth rate (CAGR) to US$ 12.5 billion
in FY15 from US$ 6.3 billion in FY10. Urban markets account for the major share (65 per cent) of total
revenues in the consumer durables sector in the country. Demand in urban markets is expected to increase
for non-essential products such as LED TVs, laptops, split ACs and, beauty and wellness products. In rural
markets, durables like refrigerators as well as consumer electronic goods are likely to witness growing
demand in the coming years as the government plans to invest significantly in rural electrification.
The Government of India has increased liberalisation which has favoured foreign direct investments (FDI).
Also, policies such as National Electronics Mission and digitisation of television and setting up of Electronic
Hardware Technology Parks (EHTPs) are expected to boost the growth of this sector.
The consumer durables market is anticipated to expand at a CAGR of 14.8 per cent to US$ 12.5 billion in
FY15. Also, the demand from rural and semi-urban areas is projected to expand at a CAGR of 25 per cent to
US$ 6.4 billion in FY15, with rural and semi-urban markets likely contributing majorly to consumer
durables sales.
The global LED industry keeps an eye on the LED lighting industry in India as it is considered to be one of
the most potential markets for LED lighting and one of the fastest growing LED markets in the world.
LEDs as well as LED lighting manufacturers are keen on penetrating the LED lighting market in India as it
is forecast to reach $1,457.8 million by 2019, which grew and will continue to grow at a CAGR of 35.9%,
during 2014-19.
2.3 Trend of industry performance for last three years
Energy Efficiency and Cost Reduction are Driving LED Adoption:-
India Lighting market is growing with a CAGR of 16.83% from last five years and is projected to grow even
in future due to excellent growth in the LED Lighting industry. LED Lighting market is growing with a
whopping CAGR of 57.31% over last five years. Government initiatives to replace incandescent bulbs with
LED bulbs under various schemes, increasing energy demand in the country and declining prices of LED
lights are the factors driving the growth of LED lighting in India.
According to India LED Lighting Market Outlook, 2021, India's LED Lighting market is forecast to grow at
a CAGR of 32.15% over six years. LED Lighting, which accounts for 19% share in the current overall
Lighting market, is anticipated to reach 62% by the year 2021. The report reveals that Philips, Surya Roshni,
Osram, Bajaj, Havells, etc. are the leading players in India Lighting market and are expected to dominate the
market in the forecast period also. The growing awareness about LED lighting in the Southern India has
proved to be the important market for LED lighting companies. Street lighting application accounts for
majority of the market revenues in India LED lighting market.
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India has massive energy needs in view of a large population and growing economy.
As more Indians gain access to available electricity and the convenience it provides, the
Pressure on the nation’s energy infrastructure will only grow more severe.
Adoption of LEDs in India could significantly reduce lighting load, peak demand and overall
energy consumption.
The Indian Government is greatly pushing for increased adoption of LEDs through initiatives
like the Bachat Lamp Yojna, LED Village Campaign and promoting LED usage in street lighting.
There is a very strong environmental lobby pushing for growth of LEDs because of their lack of
mercury content and other hazardous substances.
Potential of LED Lighting.
2.4 Major players in the industry
Bajaj Electricals Ltd.
Bajaj Electricals Ltd offers a wide range of LED lighting systems for home and commercial applications.
Bajaj aims at about 20% growth in the lighting business in 2015. It introduced a sub-brand .next that aims to
help its customers to upgrade to the latest range of LED lights and lighting systems.
Bajaj Electricals expects a strong growth in the market with its new range of products and lighting systems
that includes commercial, home lighting as well as street lighting systems.
Eveready Industries India Ltd.
Eveready Industries India Ltd is promoting its LED products on a larger scale. It believes that the Indian
government’s LED lighting initiatives and decrease in LED lighting prices will lead to the growth of its
share in the LED lighting market in India in the next three years. However, the company presently
outsources the manufacturing of its LED lighting products. However, Eveready is betting big on its LED
lighting business, which it hopes to account for about 30% of its turnover, or around Rs. 7000 million, in the
next three years.
GE Lighting
GE Lighting offers a wide range of high quality LED products, lamps and luminaries. GE’s 40-watt
replacement LED was the world’s first incandescent-shaped LED bulb to earn an Energy Star rating. GE
Lighting has developed a new tool, an LED energy-saving calculator to calculate a home’s energy-saving
potential by switching to LED lighting. This tool translates energy savings into relatable terms for
consumers.
Havells India Ltd.
Havells India Ltd had acquired the world-renowned lighting company Sylvania and registered itself amongst
the top five lighting companies in the world. Havells entered LED business in 2010 and soon became a
leading LED lighting manufacturer in India. Its LED lighting business accounts for nearly a third of its
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lighting business. It offers a wide range of LED products including downlights, spotlights, commercial lights
and streetlights.
Moser Baer India Ltd.
Moser Baer India Ltd now offers LED lighting products, and has introduced next gen LED lighting products
for the Indian consumers, which includes retrofit, LED tubelights, bulbs, streetlights, downlights and panel
lights. It aims to make a mark in the LED market with the help of its rich technology, strong brand
recognition in the Indian market, moulding capabilities, and a broad distribution network.
Despite a late entry in the LED market, Moser Baer hopes to capture about 7% market share in the next
three years. It expects to have a market of Rs 5000 million by FY 2018-19 with 6-7% market share in India.
Osram India Pvt. Ltd.
A wholly owned subsidiary of Osram GmbH, Osram India Pvt Ltd, is a leading player in the LED lighting
market in India. With its innovative technologies and solutions, Osram has continually opened up new
horizons in LED lighting?in offices, factories, homes and on the roads. The innovative range of Osram
comprises over 5000 lighting products.
In October 2015, Osram in partnership with Tata Power launched an LED tube light scheme in Indian city
Mumbai. Under the scheme, buyers can purchase five LED tube lights for Rs 525 (US $8.11), which is
about half of the current average market price of Rs 1,325.
Philips Electronics India Ltd.
A subsidiary of Royal Philips Electronics, Philips Electronics India Ltd, is a leading manufacturer of LED
lighting in India. It offers a huge range of LED products, which are made with most advanced technology
across offices, retail stores, hospitals, industries, commercial establishments and hotels.
In November 2015, Philips lit more than 800 rural villages in Indian state Uttar Pradesh, with 76,000 solar
LED street lighting units as part of a government initiative.
Surya Roshni
Surya Roshni, a leading lighting manufacturer, entered into the LED business in 2014, and invested Rs 500
million. It aims to achieve Rs 5000 million from LED lighting business in the next three years. The company
will add more investments in this segment in the coming years. Surya Roshni also makes initiatives to create
awareness among people about the benefits of LED lights.
Syska
Syska has an annual turnover of about Rs 125,000 million in India. It specialises in manufacturing energy
saving and environment-friendly LED lighting. The company offers turnkey solutions in designing,
manufacturing, supplying and installing LED fixtures for various applications. Syska offers LED lighting
solutions with power saving benefits up to 50-70%.
Wipro
Wipro Lighting, a part of Wipro Consumer Care and Lighting Group, was started in 1992 to manufacture
and market lighting products. In line with the lighting trends, it later launched a wide variety of LED lights
for the domestic, commercial and institutional segments. Wipro LED lights are designed and tested
extensively for Indian conditions.
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2.5 PEST Analysis: -
The Lighting Industry
- Environmental Analysis -
Political Environmental
1. A string of new legislation mandating
greater energy efficiency in buildings has
emphasized the role of lighting and high
energy prices. Therefore, energy
efficiency and a move towards intelligent
luminaries have become the major
objectives for both the manufacturers and
end users. In the European Union the
emphasis is on energy savings in the
lighting sector and a new legislation that
phases out inefficient lighting was
adopted.
2. Similar initiatives have been made by
other countries outside EU border, in
order to phase out the inefficient light
bulbs.
1. During the life of a lamp 90% or
more of the lamps environmental
impact is represented by the use
phase, which is the energy
consumption of a lamp. For
reducing energy consumption,
lighting has to be energy efficient.
2. The scarcity of materials used in
manufacturing luminaires and
lamps is a factor that determines
further research for determining
new materials to be used in this
process.
3. The reduction or elimination of toxic
materials used in lighting is another
factor that affects the lighting
industry. For that reason,
incandescent bulbs relying on
mercury are banned in many
countries.
15
The Lighting Industry
- Environmental Analysis -
Societal Technology
1. As countries evolve, we are witnessing
demographic shifts and a higher degree
of urbanization, which will rise the
needs of indoor and outdoor lighting,
whereas the need for the manufacturer
to develop a more cost and time
efficient production process.
2. The expanding middle class in growth
geographies reflects in a higher
consumption rate and a investment
oriented mentality when it comes to
home improvement. This can be seen as a
larger client base for the LED appliances
and lamps, opposed to incandescent.
3. Lifestyle and leisure trends are going
towards indoor facilities for sports and
relaxation opened all year round, which
emphasizes the need for indoor
specialized lighting.
4. Employee health and safety
influences the technology used in
lighting as to insure the safety of
employees and not to damage their
health and well-being.
1. Technology changes and so does the
market structure as manufacturers and
consumers have scrambled for
technology that is more efficient.
2. Generally speaking, in recent years, the
trends in technology have been based on
integration and multi-tasking. These
tendencies have been adopted by the
lighting industry and transposed in a
greater level of integration between
controls and luminaires.
3. Solid State Lighting (SSL) is a the newest
lighting technology that offers the
advantage of reducing the consumption
of energy for lighting compared to
existing, conventional lighting
technologies, whilst improving light
quality. SSL was initially used for mobile
and large displays.
Exhibit 3. The evolution of SSL and market
projections
(Source: www.idef.org)
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CHAPTER III: COMPANY PROFILE
3.1 HISTORY
YEAR EVENTS 1954 - The Company was incorporated on 3rd April, under the name and style of Agents
and Distributors Ltd. The main object of the company is to manufacture Trading.
1956 - The world `private' was added to its name by the Assistant Registrar of Companies, West Bengal on
9th June.
1961 - The name of the Company was further changed to Usha Sales Pvt. Ltd. vide fresh Certificate of
Incorporation dated 13th November, issued by the Registrar of Companies at New Delhi.
1975 - The word `private' was deleted from the name of the company on 9th April, pursuant to provisions of
Section 43A of the Act.
1982 - With effect from 15th September, the name has been changed to Usha International Ltd. - The
Company is one of the largest consumer durable marketing company in India. The range of merchandise
presently includes sewing machines, electric fans, diesel engines, pistons, pins and rings, fuel injection
equipment, knitting machines, hand tools, valves, marine products, marble and granite, brass ware, etc. The
Company also exports its merchandise to a number of countries. It belongs to the Shriram Group of
Enterprises.
Fig: Corporate journey of Usha International
1983 - Till date 3,38,000 No. of equity shares were issued as bonus shares (30,000 shares in 1969-70 in
prop. 1:5; 64,000 shares in 1980-81 in prop. 16:45 and 2,44,000 shares in 1984-85 in prop. 1:1).
1984 - 4,50,000 No. of equity shares of Rs. 10 each issued at a premium of Rs. 10 per share of which 74,800
shares were reserved and allotted to directors, their friends, etc. and business associates.
- The balance 3,75,200 shares were offered for public subscription during August 1985 out of which 18,750
shares to employees of the Company and 7,500 shares to business associates of the Company were reserved
for preferential allotment, the unsubscribed portion, if any, being added to the public offer.
1985 - The objects of the public issue of capital during August were (i) to augment the long term resources
of the Company, (ii) to get the shares of the Company listed on a stock exchange.
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1986 - Sales of main product lines and most of the products handled by the Company increased.
- The Company had expanded its product range from dominantly fans, sewing machines etc. to auto industry
products and consumer durables viz., knitting machines, heat, converters, mixer-grinders, electric irons,
furniture etc.
1989 - Efforts were also underway to increase exports of the company's products to other developing and
developed countries like the U.K. and U.S.A.
- 60,000 - 11% Pref. C shares redeemed.
1990 - Sales of sewing machines, diesel engines and knitting machines were lower due to reduced
availability, while sales of all other products increased.
- As the Company's branches at Singapore and Malaysia were incurring losses due to stiff competition and
increasing costs, it was decided to close down these branches.
USHA International Logo history
USHA International Current Logo
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3.2 About Management:
The Siddharth Shriram group was founded by the legendary Lala Shriram in 1889. The group’s businesses
extended to textiles, chemicals, sugar, automobiles, engines, nylon tyre cord, automotive components, edible
oil, heavy chemicals (fertilizers), engineering foundries, sewing machines, fans and home appliances. In
1989, the group underwent a major transformation, following the segregation of business interests across the
new generation – the descendants of Lala Shriram. The group’s proud heritage and achievement over the
years have earned it the trust and respect of its consumers both in India and abroad.
Usha International Ltd (the Company), a constituent of the Siddharth Shriram group, was formed in 1934
and started doing business under the brand name, USHA.
Usha International Ltd is a public company registered on 08/11/1935. The company has an authorized
capital of Rs 1,00,00,00,000.00 and paid-up capital of Rs 47,98,37,150.00. Over the decades, this brand
name has become a household name in India while the Company has diversified into the business of new
age home appliances, sewing machines, fans, power products, water cooler, water dispensers, modern farm
equipments and auto components.
. Usha International Limited is a trusted house hold consumer durables company with a turnover well over
Rs. 2000 crores today. All the products including electrical kitchen appliances, fans, sewing machines,
power products, water coolers and dispensers, inverters and auto components are marketed under the ‘Usha’
brand name. Building on its 80 year old heritage with the knowledge and vibrancy of today, the company
has grown from strength to strength developing an infrastructure. There are around 3700 employees
working from16 location offices, 60 company showrooms, 34 warehouses and 200 service centers
backed by an in-house customer call center. Headquartered at Gurgaon, India, Usha has overseas offices
in China and Sri Lanka.
Date of Establishment 03-04 1934
Revenue 151.811 ( USD in Millions )
Market Cap 9526.549058 ( Rs. In Millions )
Corporate Address 19,Kasturba Gandhi Marg, New Delhi-110001, Delhi
www.ushainternational.com
Business Operation Consumer Durables – Domestic Appliances
Financials Total Income –Rs. 10239.074 Million ( year ending Mar 2010)
Net Profit–Rs. 326.516 Million ( year ending Mar 2010)
Bankers Punjab National Bank, Bank of Baroda
Auditors Thakur, VaidyanathAiyar& Co
Company has currently 10 director and falls under the jurisdiction of Registrar of Company-Delhi.
19
3.2.1 USHA Management Team:-
Board of Directors Key Person
Name
KRISHNA SHRIRAM Whole-time Director
CHHAYA SHRIRAM
DINESH CHHABRA
Whole-time Director
CEO
ANAND KUMAR CHOWDHURY Director
ANIL KUMAR JAIN Director
VINOD KUMAR WAZIR Director
PRAMOD KUMAR BHALLA Director
NANDAN KUMAR GOILA Director
SANDEEP SIKKA CFO
MANISH GUPTA Secretary
20
3.2.2 Verticals of Usha International Ltd
Cooking Appliances
Home Appliances
Drinking Water Solutions
Kitchen Appliances
Fans
Sewing Machines
Electric Water Pumps
Agribusiness
Lighting product
Fig.3.2.2 Verticals of USHA
21
3.2.3 TISVA Management Team:-
As USHA have total separate nine divisions. Each division work as an SBU. Every SBU has its own
management hierarchy. Following is the management body of TISVA.
President and VP :- Mr. Vikas Gandhi
National Sales Manager :-
Mr. Sudeep Goel
Ms. Sonal Malik
Mr. Prashant Shrivastav
North [Delhi- Head Office] :- Mr. Animesh Prakash (Reg. Sales Manager)
South [Chennai-Head Office] :- Mr. K. Shashikaran (Reg. Sales Manager)
West [Mumbai- Head Office] :-
Mr. Devendra Gandhi (Reg. Sales Manager)
Mr. Jitendra Vashith (Reg. Q&S Manager)
Pune Team :-
Mr. Uday Tiwari (Sr. Sales Manager)
Mr. Ranjesh Kumar (Dep. Sales Manager – Architect & Interior)
Mr. Manish Kumar (Territory Sales Manager – Retails)
Mr. Abhinav (Customer Relationship Management)
Mr. Sivaprasad (Store Manager)
Mr. MD. Tanveer (Service Engineer)
22
TISVA, inspired by the concept of Tvisa (light) and Tattva (essence) was launched in April 2014.
True to its name, TISVA goes beyond ordinary lighting concepts and brings forth a collection of aesthetic
luminaries designed with love to illuminate contemporary homes. TISVA is an addition to the diversified
portfolio of (Usha International Limited.)
TISVA’s collections are a peek into the future of lighting, allowing consumers to indulge their
emotions and play with light. The philosophy of beauty behind every piece combines with cutting edge
technology to showcase inspirational lighting; where hues and colours can be changed from pure white to
warm yellow and brightness modulated according to moods.
The brand’s uniquely designed products include LED designer range, Chandeliers, Wall Lights,
Mood lighting, Pendants and Utility products including CFLs, LED Lamps, T5 Battens and Downlights.
Designed with little ones in mind, TISVA has an exciting range of playful lights catering specially to kids.
Each piece meets the brand’s high quality standards and at the same time is environment friendly.
TISVA’s tag line ‘Feel the warmth. See the light’ applies not just to the brand’s product but also to the
exclusive spaces where they will be showcased. Thus, the brand’s exclusive showrooms are a tribute to the
Art of Illumination, with each store featuring customized experience zones. These zones will enable patrons
to see, touch and feel the diverse range of world-class home designer lighting concepts. The distinctive
ambience created by every style, colour and tone of light will let a customer choose the best lighting
narrative for his or her own home. TISVA have 15 Brand Stores all over India.
23
3.3 Company Mission and Vision:-
Mission:-
Usha International's mission is to pursue excellence in all its spheres of business activity. The consumer
brand believes in providing reasonable returns to its shareholders and adding value to all its principals'
business operations. Usha is one of India's leading sales, marketing, distribution and manufacturing
organizations, striving to meet customer requirements and providing customer satisfaction, thereby building
trust in the Company and its products.
3.4 Companies Footprint:-
Major Office Locations in India
Gurgaon
Plot No. 15, Institutional Area
Sector-32, Gurgaon, Haryana
Pin: 122001
Ph: 91 124 4583100
Fax: 91 124 4583200, 91 124 2883300
email:[email protected]
International Offices
China: Lin He Xi Road Ltd,
#3705, China Shine Plaza No.9,
Parkway
Tian He District - 510000
Telephone:+94112302088
Sri Lanka
Usha International
N0. 48, 1st level,
Building, Park Street,
Sri Lanka
Fax : + 94 112302087
Fig.3.4: TISVA foot print in Indian market.
24
3.5 Marketing Organization:-
USHA International has very large product portfolio segmented in 9 different divisions. Every divisions
work as separate SBU. They have their own separate management. Each division have its own marketing
and sales team. For many divisions market remain same, even counters also remain same, but no one
interfere in else one job.
3.6 Product Portfolio:-
Fig. 3.6: Product Portfolio
3.6.1 Total Products of TISVA
It has been 2 and half year that TISVA has been established. And every year TISVA update her products on
quarterly basis. Means after every 4 months new products are introduced to market by TISVA.
Following are the products from TISVA family:-
Fig.3.6.1: Product-Ambient Lighting
25
Fig.3.6.1. Product- Chandeliers
Fig.3.6.1: Product- Wall Lights
Fig.3.6.1: Product-Kid’s Range
26
Fig.3.6.1: Product-LED Spots
Fig3.6.1: Product-Floor Lamps
Fig.3.6.1: Product-Table Lamps
27
3.7 Customer Segments and Channel distribution:-
USHA International decided to not to do mass marketing and go with niche marketing. And target only
specific group of customer. USHA International’s lighting division (TISVA) has broadly two ways B2B and
B2C both. TISVA also have combination of ‘Brick and Click’. Customer either visit companies brand stores
or go online to www.lightsbyTISVA.com
3.7.1 B2B Segment:-
TISVA has channel partner and distributor network across Pune and PCMC circle for both utility and
decorative range. These media is especially dedicated for retail and wholesale counters. Distributors also
have own team for sales and payment collection. Other media is direct dealer means some retailers have
direct dealing with company and bypass distributor channel.
3.7.2 B2C Segment:-
As we discussed earlier TISVA has combination of ‘Brick and Click’. This arrangement especially done for
end users of company’s product. TISVA’s customer either walk-In or go through company’s URL i.e.
www.lightsbyTISVA.com
Such arrangement is done because it is very important that company should have physical existence for
better brand visibility and online is also equally important, so customer can access our service and update
regarding new launches and for many other tasks.
Fig.3.7: TISVA Channel partner
Tisva Lighting
Brand Store 80% Decorative
20% Utility
Shop in Shop Shoppe
Dirct Dealer
Shoppe
Utility Distributor 80% Utility
20% decorative
Retail Outlets
28
CHAPTER IV: BUSINESS PERFORMANCE
Business performance management is a set of performance management and analytic processes that enables
the management of an organization's performance to achieve one or more pre-selected goals. Synonyms for
“business performance management” include "corporate performance management (CPM)" and "enterprise
performance management". Business performance management is contained within approaches to business
process management.
Business performance management has three main activities:
Selection of goals,
Consolidation of measurement information relevant to an organization’s progress against these goals,
and
Interventions made by managers in light of this information with a view to improving future
performance against these goals.
Although presented here sequentially, typically all three activities will run concurrently, with interventions
by managers affecting the choice of goals, the measurement information monitored, and the activities being
undertaken by the organization.
Because business performance management activities in large organizations often involve the collation and
reporting of large volumes of data, many software vendors, particularly those offering business intelligence
tools, market products intended to assist in this process. As a result of this marketing effort, business
performance management is often incorrectly understood as an activity that necessarily relies on software
systems to work, and many definitions of business performance management explicitly suggest software as
being a definitive component of the approach.
This interest in business performance management from the software community is sales-driven - "The
biggest growth area in operational BI analysis is in the area of business performance management."
Since 1992, business performance management has been strongly influenced by the rise of the balanced
scorecard framework. It is common for managers to use the balanced scorecard framework to clarify the
goals of an organization, to identify how to track them and to structure the mechanisms by which
interventions will be triggered. These steps are the same as those that are found in BPM, and as a result
balanced scorecard is often used as the basis for business performance management activity with
organizations.
TISVA launched in April, 2014. TISVA currently not so strong that it can compete with other brands in
terms of volume. So currently TISVA competing on value basis. TISVA focused on specific group of
customer and decided to do niche marketing. TISVA has tie-up with many of retailers and work accordingly
this retailers. TISVA updates their product on quarterly basis. Currently no one in market updating their
product even yearly basis
4.1 Market Share:-
TISVA is new segment of USHA International start in April, 2014. There is very huge opportunity for
TISVA in decorative range as existing players are not active. Customer looks for variety, quality and
appearance of the products. TISVA updating its products as per specifier’s needs and market trend. USHA
International is market leaders in his Fans, sewing machine and kitchen appliances.
29
Table 4.1: Competitors of TISVA
Products Competitor 1 Competitor 2 Competitor 3 Competitor 4
CFL Philips Havells CG Wipro
LED Bulb Philips Havells Syska OSRAM
T5 Philips Havells Bajaj Wipro
Ceiling Lights Havells Chinese
LED D/L Philips Havells Wipro Syska
CFL D/L Mostly Local
Players
LED Panel Philips Havells Wipro Syska
The information is taken from the company’s internal sources. From above table we can understand as per
products which are tuff competitors for USHA especially in lighting industry. Currently USHA (TISVA) is
new in lighting business but the trend in market is focused on LED and next generation SSL lighting. So
USHA (TISVA) can compete on this new segment to their competitor.
4.2 Organizational Growth:-
Consumer durable company Usha International is expanding its retail footprint across modern retail, rural
markets and e-commerce and looking at a 30 per cent growth in retail business.
"Usha is investing significantly to expand its retail presence and aiming at a 30 per cent growth in retail
business by ensuring product display management and focus experiential marketing," Kapil Kohli, Vice-
President and Retail Head at Usha International, told PTI.
"Leveraging our high brand recall, we are ensuring presence across channels and the last-mile connectivity
for maximum outreach for all our products across categories."
The company is looking to improve its overall buying experience, taking into consideration a shift in
consumer behavior.
Usha plans to open 50 new 'Usha Joy' stores by March 2017 across tier-II and tier-III cities and is looking to
establish a connect with over 17,500 retailers and dealers to consolidate its brand presence across the
country, Kohli explained.
Additionally, it is transforming its existing 60 plus company showrooms in metro cities and integrating
'experiential zones'
The following statistical data helps to understand TISVA’s growth in last two years. Looking at various
factors and performance of TISVA.
30
4.2.1 Architect/ID sale:-
Fig 4.2.1: Architect/ID sale details
The above figure shows last year value sale monthly performance TISVA especially specifiers (architect and
interior) segment. From figure we can see in 2015 year minimum sale happen through specifiers in January
and February. And maximum sale is maximum in July and October. Which will shows positive response
from specifiers group.
4.2.2 MIS sale YTM 2015-16
Fig.4.2.2 MIS sale YTM 2015-16
The above figure shows the yield to maturity sale of TISVA products during year 2015-16. Sale get rises
over period of one year. This will indicate the positive performance of the TISVA.
0
100000
200000
300000
400000
500000
600000
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
Sale
(lac
s)
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
Value Sale 17242 11891 29251 212550 77788 120650 445082 147332 195245 570531 257482 153400
Architect/ID Sale Details
0
2
4
6
8
10
12
14
16
18
Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
Sale
(lac
s)
Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
Decorative 2.2 1.1 5 2.7 8.6 3.4 6.5 9.5 3.8
Utility 4.1 9.7 3.1 6.9 1.6 7.2 9.4 5.3 2.8
Total 6.3 10.8 8.1 9.6 10.2 10.6 15.9 14.8 6.6
MIS Sale YTM 2015-16
31
4.2.3 MIS Sale Pune Store 2014-15
Fig. 4.2.3 MIS sale Pune store 2014-15
Above figure shows the monthly sales done at brand store during year 2014-15.
4.2.4 Total MIS Sale
Fig. 4.2.4 Total MIS sale
0
2
4
6
8
10
12
May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15
Sale
(Lac
s)
May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15
Decorative 2.98 1.49 2.74 3.92 2.93 5.91 1.76 4.7 4.5 0.98 3.69
Utility 0.16 0.35 0.56 0.24 1.43 1.24 1.68 1.03 4.09 9.89 4.81
Total 3.14 1.84 3.3 4.16 4.36 7.15 3.44 5.73 8.59 10.87 8.5
MIS Sale Pune Store 2014-15
0
2
4
6
8
10
12
14
16
18
Sale
s
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Decorative 2.98 1.49 2.74 3.92 2.93 5.91 1.76 4.7 4.5 0.98 3.69 2.2 1.1 5 2.7 8.6 3.4 6.5 9.5 3.8
Utility 0.16 0.35 0.56 0.24 1.43 1.24 1.68 1.03 4.09 9.89 4.81 4.1 9.7 3.1 6.9 1.6 7.2 9.4 5.3 2.8
Total 3.14 1.84 3.3 4.16 4.36 7.15 3.44 5.73 8.59 10.9 8.5 6.27 10.7 8.04 9.58 10.2 10.6 15.9 14.8 6.58
Total MIS Sale
32
Above figure shows overall sales done during year 2014-15. From the figure it is observe that sales
gradually increases over a time period.
4.2.5 Primary Sale YTM 2015-2016
Fig. 4.2.5 Primary sale YTM 2015-2016
The above figure shows the monthly primary sale YTM done during year 2015.
4.2.6 Primary sale 2014-15
Fig. 4.2.6 Primary sale 2014-15
0
5
10
15
20
Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
Sale
(Lac
s)
Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
Decorative 1.1 0.6 3.7 3.1 3.1 1.2 9.4 5.7 4
Utility 3.4 11.5 3.2 7.1 6.2 4.8 7.7 6.2 3
Total 4.5 12.1 6.9 10.1 9.3 6 17.1 11.8 7
Primary Sale YTM 2015-2016
0
2
4
6
8
10
12
14
16
Sale
s(La
cs)
May-14
Jun-14
Jul-14Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Primary Sales Brand Store 2014-15Decorative
5.25 0.97 2.49 4.27 2.07 5.52 6.53 6.33 4.81 4.86 4.93
Primary Sales Brand Store 2014-15Utility
1.04 0.41 1.02 0.25 1.2 1.62 0.74 7.5 2.68 3.57 9.11
Primary Sales Brand Store 2014-15Total Sales
6.29 1.38 3.51 4.52 3.27 7.14 7.27 13.83 7.49 8.43 14.04
Primary Sales 2014-15
33
4.2.7 Key Highlights of TISVA:-
Primary sales growth over2014-15 Vs 2015-16 to YTM 80%.
MIS sales growth over 2014-15 Vs 2015-16 YTM to 180%.
Good support from architect segment.
Franchise channel partner.
Focus on project sales.
Incremental sales growth during scheme period.
Footfalls Vs Buyers growth over 2014-15 to 2015-16 127%
34
4.3 New Product Launches:-
Company update its products on quarterly basis in heading ‘Winter’, ‘Spring’, ‘Summer’ and ‘Autumn’
collection. Recently company launches its spring collection.
Fig. 4.3 New Product Launched
Highlight of the new collection is the concept pendant range made from concrete. Concrete, a material
containing in itself all features of sturdiness and industriousness, creates a perfect luminaire to be
displayed in an area of activity and dynamism. Designed for ultra-modern rugged interiors these fixtures
come with aluminum reflector on the inside to ensure high efficiency of light with minimal light loss.
The Spring Collection 2016, starts from a price of INR 3,000.00 and extends up to INR 60,000.00. It will be
available through exclusive TISVA brand stores and authorized TISVA dealers. A comprehensive
promotion is planned to create awareness about the launch amongst customers and influencers like
architects, lighting consultants and interior designers.
35
4.4 Technology Tie-up:-
Janome Sewing Machine Company,
Japan
Honda Siel Power Products, India
Hunter Fan company, USA
G.D. Midea Environment
Appliances Manufacturing Company
Ltd., China
Rinnai Corporation, Japan
Cixi Three Circle, China
Honeywell International Inc., USA
Cree LED, USA
EagleRise, China
Kerosene Pumps
Swing Machine
Decorative Fans
Home Appliances
Gas Appliances
Diesel Engines
LED Chip
Cooling App.
LED Driver
36
4.5 Rewards and Recognition:-
1. The prestigious Brand Equity supplement of The Economic Times, has ranked Brand USHA at No. 8 in
the ‘Consumer Durables’ segment. The survey conducted by Brand Equity for the “Most Trusted
Brands” places Brand USHA ahead of its competition in the relevant segment.
The results of the survey have been published in the Brand Equity dated 22nd
October, 2014.
2. USHA International bags National Energy Conservation Award 2015
USHA International, one of India’s leading consumer durables manufacturing and marketing company,
bagged the first prize for its energy efficient fan range at the National Energy Conservation Awards 2015
held in New Delhi today. With its range of 5-star labelled energy efficient fans, the company was conferred
with this prestigious award for its maximum contribution in BEE Star labelled fan category.
3. Usha International Limited won the Gold award at 6th Flame Awards 2015
Usha International Limited on 25 March 2015 won the Gold award in the Last Mile Distribution Initiative of
the year category at the 6th Annual Flame Awards 2015. The awards were hosted by the Rural Marketing
Association of India.
37
4.6 Business SWOT Analysis:-
What makes SWOT particularly powerful is that, with a little thought, it can help you uncover opportunities
that you are well-placed to exploit. And by understanding the weaknesses of your business, you can manage
and eliminate threats that would otherwise catch you unawares.
More than this, by looking at yourself and your competitors using the SWOT framework, you can start to
craft a strategy that helps you distinguish yourself from your competitors, so that you can compete
successfully in your market.
Product Quality
USP and Service
Product Pancaking
Architects Reach
Connect programs for
architects
More channel appointment in
ROM i.e.
(Kholapur/Nasik/Aurangabad)
Reach to end customer
Data sharing implementation
Brand Visibility
Competition new products
launches
Channel are not showing
interest
S W
O T
38
CHAPTER V: THEORETICAL FRAMEWORK
5.1 What is Consumer behaviour?
Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to
select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts
that these processes have on the consumer and society. It blends elements from psychology, sociology,
social anthropology, marketing and economics. It attempts to understand the decision-making processes of
buyers, both individually and in groups such as how emotions affect buying behaviour. It studies
characteristics of individual consumers such as demographics or personality and behavioural variables in an
attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as
family, friends, sports, reference groups, and society in general.
Fig.5.1: Consumer behavior
5.2 Evaluation of consumer behaviour
At this time the consumer compares the brands and products that are in their evoked set. The evoked set
refers to the number of alternatives that are considered by consumers during the problem-solving process.
Sometimes also known as consideration, this set tends to be small relative to the total number of options
available. How can the marketing organization increase the likelihood that their brand is part of the
consumer's evoked set? Consumers evaluate alternatives in terms of the functional and psychological
benefits that they offer. The marketing organization needs to understand what benefits consumers are
seeking and therefore which attributes are most important in terms of making a decision. It also needs to
check other brands of the customer’s consideration set to prepare the right plan for its own brand.
39
The evaluation of the alternatives process is how the consumer determines the different products available.
According to Kotler et al., (2014) there appears to be no simple evaluation process useful by consumers in
all-buying situations. There are a few concepts that can explain the consumer process. A consumer evaluates
a product with different attributes, for example Kotler et al., (2014) explains that restaurant attributes would
be food quality, price, location, and atmosphere, quality of service and menu selection. Consumers
depending on their geographic, demographic, psychographic and behavioral characteristics will decide
which attributes are important to them. After evaluating the different attribute the product offers the
consumer will then priorities each attribute in the order from highly important to least important. As stated
in Kotler et al., (2014) these priorities are directly related to the consumer’s needs and wants. The next
process in brand image, Kotler et al., (2014) says the consumer applies certain beliefs to a particular known
brand. The consumer’s beliefs may differ depending on the consumers experience and the effects of
selective perception, distortion and retention. Kotler et al., (2014) portrays that one or more of the processes
suggest above is used depending on the customers buying decision process.
5.3 Consumer buying process
A consumer goes through several stages before purchasing a product or service.
NEED
↓
INFORMATION GATHERING/SEARCH
↓
EVALUATION OF ALTERNATIVES
↓
PURCHASE OF PRODUCT/SERVICE
↓
POST PURCHASE EVALUATION
Step 1 - Need is the most important factor which leads to buying of products and services. Need infact is the
catalyst which triggers the buying decision of individuals.
An individual who buys cold drink or a bottle of mineral water identifies his/her need as thirst. However in
such cases steps such as information search and evaluation of alternatives are generally missing. These two
steps are important when an individual purchases expensive products/services such as laptop, cars, mobile
phones and so on.
Step 2 - When an individual recognizes his need for a particular product/service he tries to gather as much
information as he can. An individual can acquire information through any of the following sources:
Personal Sources - He might discuss his need with his friends, family members, co-workers and
other acquaintances.
40
Commercial sources - Advertisements, sales people (in Tim’s case it was the store manager),
Packaging of a particular product in many cases prompt individuals to buy the same, Displays
(Props, Mannequins etc.)
Public sources - Newspaper, Radio, Magazine
Experiential sources - Individual’s own experience, prior handling of a particular product (Tim
would definitely purchase a Dell laptop again if he had already used one)
Step 3 - The next step is to evaluate the various alternatives available in the market. An individual after
gathering relevant information tries to choose the best option available as per his need, taste and pocket.
Step 4 - After going through all the above stages, customer finally purchases the product.
Step 5 - The purchase of the product is followed by post purchase evaluation. Post purchase evaluation
refers to a customer’s analysis whether the product was useful to him or not, whether the product fulfilled
his need or not?
5.4 About Indian consumer durables industry
The Indian consumer durables industry has witnessed a considerable change over the last few years.
Changing lifestyle and higher disposable income coupled with boom in the real estate and housing industry
and a surge in advertising have been instrumental in bringing about a sea change in the consumer behaviour
pattern. Consumer durables involve any type of product purchased by consumers that is manufactured for
long-term use. As opposed to many goods that are intended for consumption in short term, consumer
durables are intended to endure regular usage for several years or longer before their replacement is
required. Just about every household contains at least a few items that may be considered to be of consumer
durable nature. With India being the second fastest growing economy having a huge consumer class,
consumer durables have emerged as one of the fastest growing industries in India.
Large numbers of research studies have been conducted on consumer behaviour both in India and abroad.
The studies have covered both durables and non-durables goods. The available literature on selected topic
reveals that research studies on consumer behaviour date back to early fifties up to the present period. An
attempt is made here review some selected works on consumer behaviours on consumer durables.
Aradhana Krishna (2003) viewed that buyers’ purchase behaviours can be influenced not only by the
current prices of a product but also by those prices expect in the future.
Bhawaniprasad and Kumari (1987) have analyzed “Impact of advertising on consumer durables
markets: A study of Refrigerator consumer”, in this study a ranking/importance of refrigerator
among other consumer durables is studied. Study of 200 owners of Allwyn refrigerator in the twin
cities of Hyderabad and Secunderabad and Districts of Nizamabad and Karimnagar in Andhra
Pradesh indicates that a very positive impact of advertising is found on the consumer durables
market.
Bayus (1991) studied “The consumer durable replacement buyer”, and found that replacements
account for a substantial portion of the sale of consumer durables in the U S. Results of replacement
of automobiles indicate that “early” replacement buyers are more concerned with styling and image
and less concerned with costs than “late” replacement buyers.
Gupta & Verma (2000) have done a study under convenience sampling of 50 household of New
Delhi by questionnaire. It indicates that husband’s influence is considerably higher that the wives.
Children also play an active role in brand selection of CTV.
41
CHAPTER VI: OBJECTIVES AND SCOPE OF PROJECT
6.1 Objectives:-
Primary:
To study the awareness level of TISVA products range among the exiting users especially in
wholesale and retail outlets.
Secondary:
To examine the marketing activities of the distributors relating to TISVA utility product.
To do price mapping and scheme communication to retailers.
6.2 Scope of project: -
This report covers only the promotional aspect of the company products. It does not relate to the
other P’s of the marketing mix.
This report focus on working on weakness and opportunity of TISVA Lighting. Closely looking for
the market trend and demand for various sources like wholesalers and retailers.
This report gathers primary data which will make access to those retail outlets where TISVA not
reach so far.
This report Worked as facilitated to those electronics counters which are agile to keep TISVA
lighting product at their counters.
This report is limited to Pune city only. Hence cannot be looking at trends and demand in other urban
centers.
This report does not include the buying behavior of end users of TISVA products.
42
CHAPTER VII: METHODOLOGY OR ACTION PLAN
7.1 Research Methodology
“Research is the systematic design, collection, analysis and reporting of data and findings relevant to a
specific situation or problem”. The objective of this section is to describe the research procedure and
methods that have been adopted for the achievement of the project objectives.
7.2 Research Design-
Descriptive Research Method:
• Descriptive Research method attempts to determine the extent of differences in the needs,
perceptions, attitude and characteristics of subgroups. It determines the answers as to who, what,
when, where, and how questions. For E.g. identify the demographics of the retailers and wholesalers
who sale decorative and utility lighting products. My research is Survey in nature.
Sampling Design-
Sample Size -100
Sampling Framework -Pune city
Sampling Method -Non Probability Sampling.
7.3 Data Collection
Method of Data collection: In order to study the architects & interior designer perception regarding
the uses of decorative and utility lighting Products with respect to other companies in Pune both primary and
secondary data will be collected.
Primary Data
The various tools used in conducting the surveys are as follows:-
Observation method
Personal interviews
1 OBSERVATION METHOD
Observation method in the most commonly used method in a survey. Observation becomes a scientific tool
and the method of data collection for the researcher, when it serves a formulated research purposes
systematically planned and recorded and is subjected to checks and controls on validity and reliability, under
the observation without asking from the respondent.
2 INTERVIEW METHOD
The interview method of collecting data involves presentation of oral verbal stimuli and reply in term of oral
verbal responses. Personal interview methods in a face-to face contact to the other person or persons. This
43
method is particularly suitable for intensive investigations.
Following Techniques were used by me:
Personal Interview
Secondary Data
Company website/ Other website
Publish Research paper / Available research project
Books review
Sampling Technique: The study proposed to use convenience sampling.
Sample Area: In order to make a comparative analysis study of the retailers’ perception of TISVA
products with respect to its competitor, the data for the study has been collected through a survey of retailers
of Pune City.
7.4 Action Plan:-
Process Flow chart depicting the activities planned for conducting the project/ study
Step 1
• Understanding complete utility product range.
• Understanding pricing, offers and schemes related to utility range.
Step 2
• Mapping will start from 9.30 Am to 5 pm
• Select paticular area
• Visit all shops in that particular area
Step 3
• Increase brand awareness about TISVA
• Explain retailers about TISVA and its product's specification
• Make them aware about TISVA policies and schemes.
• Capture all data that needed in excel sheet given by company
Step 4
• Fill data on same day in excel sheet
• Do price mapping
Step 5
• Writing review from feedback from retailers
• Note down what are my insights abot products, post sale services
44
CHAPTER VIII: ANALYSIS AND FINDINGS
8.1 Data Analysis:
1. Do you know TISVA & its products?
Table 8.1.1: TISVA Brand Awareness
Sr. no Options No. of Retailers (Frq.) No. of Retailers (%)
1 Yes 30 30 %
2 No 70 70 %
3 Total 100 100 %
Fig. 8.1.1 TISVA Brand Awareness
Inference: -
From the above table and the figure it can be observed that more than half of retailers i.e.70 % are not
cognizant of the TISVA where only 30% of retailers known about TISVA. It is seen that TISVA has to get
very hard efforts to reach out to remaining retailers.
Key Finding: -
For TISVA market is very potent and has very good scope to be in the market and strong competition to
existing players.
Yes
30%
No
70%
TISVA Brand Awareness
45
2. from where you come to know about TISVA products?
Table 8.1.2: Awareness through various sources
Fig. 8.1.2 Awareness through various sources
Inference: -
From the above table and the figure it can be noted that from most of the visited retailers only 30 outlets are
aware about TISVA. Out of that maximum awareness by sales persons and followed by the distributor and
the rest of the come to know about TISVA franchise partner. Here the other sources are very less like only
6.67% but they exist like retailers have their network and know every activity of market through their own
network.
Key Finding: -
Pune market is very vast in size and territory it is very important to increase sales persons to capture whole
territory. Distributors needs to be shown more activeness to grow and reach out whole market.
3
10
15
2
10.00
33.33
50.00
6.67
0
10
20
30
40
50
60
Franchise partner Distributor Sales Person Other Source
No
. of
Re
taile
rs
Sources
Awareness through various sources
No. of Retailers (Frq.)
No. of Retailers (%)
Sr. No. Sources No. of Retailers (Frq.) No. of Retailers (%)
1 Franchise partner 3 10.00 %
2 Distributor 10 33.33 %
3 Sales Person 15 50.00 %
4 Other Source 2 6.67 %
5 Total 30 100 %
46
3. Do you know the TISVA authorized Franchise partner & distributor in your city?
Table 8.1.3: Awareness of Franchise partner & Distributor
Sr. no Options No. of Retailers (Frq.) % of Retailers
1 Yes 15 15 %
2 No 85 85 %
Total 100 100 %
Fig. 8.1.3 Awareness of Franchise partner & Distributor
Inference: -
From the above fig it can be observed that 85% of sample size is not aware of the franchise partner and
channel distributors only 15% are aware about them. It needed to take strong action to reach out those.
Key Finding: -
Franchise and channel distributors are capable enough to penetrate local market somehow; they are lacking
to achieve this. It is need to understand their views on it.
15
85
0 10 20 30 40 50 60 70 80 90
Yes
No
No. of Retailers
Re
spo
nse
s
Awareness of Franchise partner & Distributor
47
4. Does distributor/salesperson come and mention the product range of TISVA?
Table 8.1.4: Distributor coverage
Sr. no Options No. of Retailers No. of Retailers (%)
1 Yes 9 09.00 %
2 No 91 91.00 %
Total 100 100 %
Fig. 8.4: Distributor coverage
Inference: -
Out of visited outlets only nine of them under distributor’s and sales person’s coverage. Very big part of
market is untouched by them.
9
91
0
10
20
30
40
50
60
70
80
90
100
Yes No
No
. of
Re
taile
rs
Responses
Distributor Coverage
No. of Retailers
48
5. Are you communicated about TISVA’s various schemes?
Table 8.1.5: Scheme communication to retailers
Sr. no Options No. of Retailers No. of Retailers (%)
1 Yes 9 09.00%
2 No 91 91.00%
Total 100 100%
Fig. 8.1.4 Scheme communication to retailers
Inference: -
From the above fig it can be observed that scheme communicate to only 9% and 91% are not aware about
various schemes offered by company.
Note: -
Where there is no access of TISVA, their Author communicates all schemes to visited outlets as part of job.
9
91
0 20 40 60 80 100
Yes
No
No. of Retailers
Re
spo
nse
s
Scheme communication to retailers
No. of Retailers
49
8.2 Findings: -
1. Findings of the retail survey-
i. Maximum retailers are not aware about TISVA brand product.
ii. Salespersons are the main source of creating awareness followed by distributors.
iii. There is lack of awareness among the retailers on TISVA products franchise partner and
distributors.
iv. Market coverage through distributors and salesmen are observed to be low.
2. Less availability of running products and incomplete product range-
i. Products likes chandeliers especially metallic and antique look, 10W LED bulb in E27 base,
etc. are always out of stock.
ii. TISVA is currently only in indoors lighting and not in outdoors.
iii. There is huge demand for outdoor lighting. Especially in utility lighting TISVA suffers
because of incomplete product range. Like non availability in 3.5W, 12W, 15W, 18W, etc.
3. Update product speedy way-
i. TISVA has good opportunity to flourish in market as its biggest competitor Philips had not
launched any new collection from long time.
ii. TISVA has policy to update product on quarterly basis especially for decorative lighting. This
policy is adopted by only TISVA and no other brand currently have any similar policy. This
gives advantage over other brands.
4. Product pricing-
i. TISVA is new player in lighting and competitors have advantage over TISVA in every
aspect. Price of products is high as compare to competitors’ products. TISVA have to
redesign price for their products.
50
CHAPTER IX: CONCLUSIONS and SUGGESTIONS
9.1 Conclusion:-
For TISVA market is very potent and has very good scope to be in the market and strong competition
to existing players.
Pune market is very vast in size and territory it is very important to increase sales persons to capture
whole territory. Distributors needs to be shown more activeness to grow and reach out whole market.
Franchise and channel distributors are capable enough to penetrate local market somehow; they are
lacking to achieve this. It is need to understand their views on it.
9.2 Suggestion:-
It is required to increase advertisement in local newspaper, magazines and local branding.
It is important to update on MRP and manufacturing date on packaging.
Encourage distributors and franchise partner to take initiatives and more active.
Come up with more consumer schemes to attract more customers.
51
APPENDIX I:
Questionnaire
Name of Retailer counter: - __________________________ Locality: - ___________________________
Retailer’s Category: - __________________
Contact no.:- +91 ________________
Address: - ________________________________________________________________
________________________________________________________________
1. Do you know TISVA & its products?
Yes No
2. From where you come to know about TISVA products?
Distributor Sales Person
Franchise partner (Blue-Rayon) other sources
3(a). Do you know the TISVA authorized Franchise partner in your city.
Yes No
3(b). If yes then please agree or disagree to following questions
Strongly
agree
Agree Neither Agree
nor Disagree
Disagree Strongly
disagree
Does the franchise show you TISVA
Products
Does the franchise gives you complete
information about all products
Does the franchise gives your products
& services on time
Does the franchise solve your queries
in time
4. Do you use TISVA products?
Yes No
52
5. Distributer Coverage: -
Yes No
6. Frequency of Visit: -
[ ] Weekly [ ] Between 10 to 15 days [ ] Monthly
7. Schemes Communication: -
Yes No
8. Replacement Service: -
Yes No
9.
LED blub ( Avg.
Sale/mth in pcs )
TISVA PHILIPS CG WIPRO HAVELLS Others
10.
CFL blub ( Avg.
Sale/mth in pcs )
TISVA PHILIPS CG WIPRO HAVELLS Others
11.
LED Batten/T5
batten( Avg.
Sale/mth in pcs )
TISVA PHILIPS CG WIPRO HAVELLS Others
12.
DL/Panel( Avg.
sale/mth in pcs)
TISVA PHILIPS CG WIPRO HAVELLS Others
Remark: -
53
APPENDIX II:
Abbreviations Long form
LED Light Emitting Diode
FIG Figure
CFL Compact Fluorescent Lamps
SMF/CMF/WMF Surface Mounted Fitting/ Ceiling Mounted/Wall Mounted
TM Table Mounted
FM Floor Mounted
K Kelvin
L Lumen
RGB Red Green Blue (colours)
L F Luminous Flux
D/L Down Lighters
SSL Solid State Lighting
