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SUMMER TRAINING REPORT ON
BRAND TRACKING FOR
LLOYD ELECTRIC & ENGINEERING LTD
BY
SRIJIT PAUL CHOUDHURY
58
In Partial Fulfilment for the award of the degreePost Graduate Diploma in Management
Batch 2014-16
New Delhi Institute of Management50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062E-mail: [email protected] Website: www.ndimdelhi.org
New Delhi Institute Of Management Page | 1
SUMMER TRAINING REPORT ON
BRAND TRACKINGLENDING BY
LLOYD ELECTRIC & ENGINEERING LTD
Under The Supervision
Of
MR. SHAHSIKANT BHAGOJI
(SR. MARKETING EXECUTIVE)
Submitted By: Submitted To:
SRIJIT PAUL CHOUDHURY PROF. SHAGUN ARORA
New Delhi Institute Of Management Page | 2
CERTIFICATE
New Delhi Institute Of Management Page | 3
ACKNOWLEDGEMENT
It is my honour to attain my sincere gratitude to Mr. Shashikant Bhagoji for his
guidance, understanding, and patience during my internship at Lloyd Electric. I
would also like to acknowledge my regards to Mr.Rahul Gaur and Mr Joy Nag.
Their mentorship was paramount in providing a well-rounded experience which
will help me to achieve my long term career goals. They also encouraged me to
work as an independent thinker. I would also like to thank the other employees
and my co-interns who not only supported me as friends but also guided and
helped me in doing my project.
An unparalleled gratitude must be extended to my faculty mentor, Prof. Shagun
Arora, (Faculty of New Delhi Institute of Management), under whose genuine
and inspiring guidance, this project could get its present shape in such a limited
range of time. Her tireless commitment, support and confidence given
throughout the project cannot go under recognized.
Last but not the least I express my thanks to all the people and friends who
always encouraged me and supported me at all times.
I am also grateful to my parents for providing me the continuous support which
helped me to fight against all odds.
New Delhi Institute Of Management Page | 4
DECLARATION
I, Srijit Paul Choudhury, student of New Delhi Institute of Management Batch
(2014-2016), declare that every part of the Project Report on ‘Brand Tracking
Of Lloyd Electric & Engineering Ltd’, submitted by me is original.
I was in regular contact with my faculty guide and contacted her at regular
intervals for discussing the project.
Date of project submission:
(Srijit Paul Choudhury)
Faculty Mentor’s Comments:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Date: (Prof. Shagun Arora)
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Table of Contents
Serial No Title Page No
Project Executive Summary 8
Chapter 1 Introduction To The Consumer Durable Industry
1.1 Introduction
1.2 A Competitive Landscape
1.3 Growth Prospectus
1.4 Key Challenges
1.5 Opportunities
10
11
11
12
13
Chapter 2
Company’s Profile
2.1 Company Overview
2.2 Promoters & Senior Executives
2.3 Product Line
2.4 Market Segment
2.5 Turnover
2.6 Market Share
2.7 Positioning
2.8 Mergers and Acquisitions
2.9 Revenue Model
2.10 HR practices
15
16
17
19
19
19
20
20
20
21
Chapter 3 Objectives and Methodology
3.1 Problem Statement
3.2 Details of work assigned
3.3 Methodology
3.4 Week wise description of work assigned
24
24
25
25
Chapter 4 Data Analysis 33
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Chapter 5 Findings & Conclusions
5.1 Major Findings From The Internship
5.2 Significance of Findings
46
47
Chapter 6 Recommendations & Suggestions
6.1 Brief description of recommendations
6.2 Detailed description of recommendations
49
49
Chapter 7 Annexure
8.1 Questionnaire- Existing Customers
8.2 Questionnaire- Non Existing Customers
55
58
BIBLIOGRAPHY 62
Executive Summary
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Lloyd Electric & Engineering Ltd. is one of the major Consumer Durables key
market players & it is consistently printing its foot prints in the market science
the year of its incorporation, 1987. This project report draws attention to the
Consumer Awareness & Adoptability towards the brand LLOYD & is titled
“BRAND TRACKING: STUDY THE CONSUMERS BEHAVIOUR
TOWARDS LLOYD”. My attempt was attained the watchful guidance of my
mentors to help me study thoroughly & gauge the aforesaid market situation.
This exploratory research has been carried out using separate questionnaires
prepared by the company for both EXSISTING and NON-EXSISTING
customers who refers being the sample size of 250. These questionnaires had a
set of 18 different socio-economical parameters to fit into. The research
methodology includes QUESTIONAIRES, PERSONAL INTERVIEWS &
OBSERVATION & is done through random sampling.
The responses are analyzed using PIE CHARTS and BAR GRAPHS to give a
clear indication to LLOYD about their products performance in the market and
the interpretation of KKG in the minds of the customers. Also, this analysis
gives a clear picture of the income and age wise distribution and preference of
buying CONSUMER DURABLE PRODUCTS.
During the course of my internship I found Lloyd lacks brand awareness. There are no sales promoter appointed by Lloyd in any of the retail outlets as a result Lloyd misses out its sales opportunities.
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CHAPTER 1:
INTRODUCTION TO
THE CONSUMER
DURABLE
INDUSTRY
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1.1 INTRODUCTION
Pre-liberalization the consumer durable industry in India had been dominated by players such as ONIDA, LG and GODREJ. However post-liberalization has been highlighted with the entry of new foreign players such as SAMSUNG, and WHIRLPOOL
With the change in the market dynamics there has been a change in the consumer mind-set as well. Consumers have become more and more “BRAND CONSCIOUS”. They have become choosy while purchasing any product and there are several parameters which they keep in mind while purchasing the product.
Thus all the brands now days are not only focusing on the consumers but also focusing on how to build relations. This can only be done via accurate market survey of what the customers want. Knowing your customers and “CREATING NEEDS” is what makes a brand successful in modern times.
With the continuous inflow of disposable income and advancement of technology, then need for varied consumer durable goods are increasing. This in turn is leading to a strong competition among other consumer durable brands available in the nation as well as the price gap between the same consumer goods of different companies are narrowing down. The rural & urban market of consumer durables has been growing at an average of 15% p.a.
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1.2 A Competitive Landscape
Some of the top consumer durable brands in India are:
LG NOKIA PHILLIPS SAMSUNG SONY WHIRLPOOL BLUESTAR CARRIER GODREJ INDIA HITACHI INDIA LTD SHARP INDIA LTD TATA TOSHIBA INDIA PVT LTD VIDEOCON
1.3 Growth Prospects:
Size of the consumer durables market in India
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India is likely to emerge as the world’s largest consumer durable market with an
aggregate consumer spends of $US 13 trillion by 2030 as per a report by
Deloitte titled “India matters: Winning in growing markets”
Fuelled by rising income and growing affordability the consumer durable
market is expected to expand at a CAGR of 14.8% to US $12.5 billion by FY
2015 from US $7.3 billion in FY 2012. Urban markets account for a major share
(65%) of total revenue in Indian consumer durables sector. In the rural market
durables such as refrigerators and consumer electronic goods are likely to
witness growing demands in the coming years. From US$2.1 billion in FY 2010
the rural market is expected to grow at a CAGR of 25% to touch US$6.4 billion
by 2015.
1.4 Key Challenges
Among all challenges, it is difficult to control the cost of production, primarily
because of rising inflation. The continuous, year-long supply of raw materials,
and the non-stop production of consumer durables for the full season, is another
production-linked issue which needs to be managed carefully.
Also of vital importance is controlling transportation and logistics costs. Air
Conditioners & Refrigerators are gradually cementing their place in the urban
household in the metros and Tier I cities; however, replicating the same success
in Tier II and Tier III cities is still a struggle as residents in these regions are
still not exposed to these products.
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1.5 Opportunities
At the same time, the consumer durables market throws up many opportunities.
Some of them are outlined below:
A. Rising demands: India is a developing country with a continuous rise in
Per capita Income. As a result of the continuous increase in the standard
of living the demand of various consumer durable goods like Air
conditioners and Refrigerators keep on increasing.
B. Flexible Investment Option: It has been observed that consumers prefer
paying in instalments. They prefer to pay a certain amount of down
payment and the rest in instalments. This mode of payment is quite
suitable for consumer durable industry as the production period is quite
long. The time taken for production is long enough to recover most of the
costs for producing the product.
C. Incentives from the Government: The government is also keen in
developing this sector of the economy. This is because of the rising
demands and purchasing power of the economy. Thus the Government
provides more incentives for the growth of this sector.
D. Greater FDI: Companies like SAMSUNG, LG have entered the Indian
market and brought in foreign exchange which is good for any country.
So there is scope for many more foreign companies to enter the Indian
market.
E. Employability: As discussed above there is a lot of labour force involved
in this industry so there is a lot of scope of employability. Each company
employs a lot of man power so there is again an opportunity to increase
income and increase the standard of living. Also there is a lot of scope for
New Delhi Institute Of Management Page | 13
workers to go out of the country in big multinational companies. This
again creates the cycle and leads to the development of the country
CHAPTER 2 :
COMPANY
PROFILE
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2.1 COMPANY’S PROFILE
With a true blend of value added engineering, leading edge technology, flexible production capacity and individual customer satisfaction makes LEEL the preferred brand supplier for high quality coils and heat transfer products. Since 1989 LLOYD ELECTRIC has evolved into a world class manufacturer by providing product support that is unsurpassed in the industry.
The Growth Dimensions:
Since 1989 LLOYD ELECTRIC has evolved rapidly and come to be respected dependable supplier of high quality to Original Equipment Manufacturers of Heating Ventilation, Air Conditioning and Refrigeration equipment.
The Growing Clout:
Today Lloyd Electric and Engineering Ltd is a publicly traded company with its headquarters in New Delhi. It is the leading and the largest manufacturer of Coils / Heat Exchangers (Fin and Tube Type) in India serving the entire spectrum of HVAC & R industry in India as well as OEM in North America, Europe, Middle East and Australia. Lloyd Electric also manufactures Air Conditioners for Indian Railways, Metro Rail and buses at its Biwadi Factory.
The Global Aspiration:
As part of its global aspiration and encourages by the preference it enjoys
among its international clients Lloyd Electric & Engineering Ltd acquired its
Lloyd coils Europe , Czech Republic in May 2008. With this strategic
acquisition the company has entered the European market thus truly becoming
global company.
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2.2 PROMOTERS / SENIOR EXECUTIVES OF Lloyd
Managing Director and Chairman - Mr. Brij Raj Punj
Executive Director - Mr. Bharat Raj Punj
Whole Time Director – Mr. Achin Kumar Roy
Whole Time Director & Chief Financial Officer – Mr. Mukat B Sharma
Company Secretary- Ms Anita K Sharma
Other Executives:
Mr. Krishan Laal
Mr. Surjit Krishan Sharma
Mrs. Geeta Ajit Teckchand
Mr. Ramesh Kumar Vasudeva
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2.3 PRODUCT LINE
The company has 6 product categories:
a) Air Conditioners Window Ac Split Ac Tower Ac Inverter Ac Portable Ac Cassette Ac
b) LED
LED Tv
Sound Bar
c) Refrigerator
Domestic Refrigerators
Commercial Refrigerators
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New Delhi Institute Of Management Page | 18
2.4 MARKET SEGMENT
Lloyd’s Target Market :
Young Generation -
Age Bracket - 21-45.
Income Bracket – Rs 50,000- Rs 1,50,000 and above.
Older Generation -
Age Bracket – 45-55.
Income Bracket – Rs 50,000- Rs 1,50,000 and above.
2.5 TURN OVER
As of 2011, Rasna International had a turnover of 3.5 billion (US$58 million).
In 2013 the turnover is INR 100 crores. For Ju-C, Rasna is targeting at
achieving a turnover of INR 400 crores and a market share of 4-4.5 per cent at
the end of three years.
2.6 MARKET SHARE
Lloyd Electric and Engineering Ltd., incorporated in the year 1987, is a Mid Cap Comp (having a market cap of Rs 952.29cr) operating in Consumer Durables sector.Lloyd Electric and Engineering Ltd’s key Products/Revenue include consumer durables which contributed Rs 869.94cr to Sale value (47.40% of Total Sale), Heat Exchanger and components which contributed Rs 539.59 cr to Sale Value (29.38& of Total Sales), Air Conditioners which contributed Rs 425.87 cr to Sale Value (23.20% of Total Sale) for the year ending 31st March 2015.
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For the quarter ended 31st March 2015, the company has reported a standalone sales of Rs 618.31cr , up 63.28% from last quarter sales of Rs 378.67 cr and up 21.07% from last year same quarter sales of Rs 510.69 cr. The company has reported a net Profit After Tax of Rs 50.05 cr in the last quarter.
2.7 POSITIONING
Even though Lloyd is leaving no stone unturned in marketing its products which
includes advertising online as well as in the cinema halls, experts are of the
view that ‘Smart positioning’ is what the company requires at this point in time.
2.8 MERGERS AND ACQUISTIONS
No recent mergers and acquistions.
2.9 REVENUE MODEL
All the payments are done at the Dealer Point. The orders are confirmed,
cheques are signed and all necessary transactions take place at the dealer
location.
Keeping in mind that Lloyd Electric has just started, this is the appropriate revenue model, as all the transactions are done at one go in the presence of all the concerned people.
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2.10 HR PRACTISES
If an organisation needs to be competitive, more productive and economically sustainable, they will require skilled knowledgeable, innovative workers and a relatively stable workforce. Implementing the management system and the HR practices to enhance the employee involvement helps increase the productivity, quality, and to gain competitive advantage of a workforce strategically aligned with the company’s goal and objectives. Here in Lloyd electric and engineering the HR practices are well taken care to improve the skills and the willingness of the workers to work for the company.
Recruitment and selection:
The company mostly recruits online. The process initiates only when they get the information from the departments about an empty position. So when there is a vacancy they move forward for recruitment after the necessary approval from the required Head of Department.
For fresh positions the company prefers visiting colleges. The company mostly recruits online from NAUKRI.COM.
Training and Development:
Continuous training and upgrading technical, behavioural and managerial skills is a way of life in Lloyd Electric and Engineering. It encourages employees to hone their skills regularly to enable them to face the challenges of the changing requirements of customers that fit market up and down. The company right now has its focus more on the service engineers, technicians and the service staffs. The process of training and development by the company for these lower level staffs is launched in every 3 to 4 months. For the higher level staffs the company launches once or twice annually.
Employee Motivation:
The company keeps its employees motivated along with the daily works by conducting various engagement activities like comedy months. The company also takes good care of the health and safety of the employees which helps gives higher level motivation.
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SWOT ANALYSIS
Strengths:
Domestic marketHigh profitability & revenueReduced labour costsExisting distribution & sales network
Weakness:
Investments in research & developmentSmall business unitsFuture profitabilityCompetitive marketBrand portfolioFuture debt rating
Opportunity:
Income level is at a constant increaseVenture capitalNew acquisitionsNew markets
Threats:
Increase in Labour costTax changesGrowing CompetitionTechnological Problems
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CHAPTER 3 :
OBJECTIVES AND
METHODOLOGIES
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3.1 PROBLEM STATEMENT
To check the level of brand awareness among non-existing customers.
To check the level of satisfaction & brand adoptability of the existing
customers.
3.2 DETAILS OF WORK ASSIGNED
Market Survey
I had to visit different areas in Bangalore, to conduct a market survey about Lloyd Electric. I also had to get questionnaires filled up by the customers. There were 2 types of questionnaires – EXSISTING CUSTOMERS and NON LLOYD CUSTOMERS. I had to then submit the details of the same to our company. These references were in turn very useful to us while we went out in the market to get re-orders.
Customer feedback
Using the questionnaires which were prepared by the company we got an insight into the minds of the customers regarding their perception of Lloyd. There were different questions for existing and non existing customers. Using these questions we could get an insight as to what the customers feel about the products and what more do they expect from Lloyd Electric.
Idea generation
A lot of new ideas could be developed using the information from the questionnaires filled up by the customers. The company got a pool of ideas as to what more would the customers expect from their products.
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3.3 METHODOLOGY
This exploratory research is carried out using both PRIMARY & SECONDARY data with a sample size of 212 in the city of BANGALORE. We had to conduct our research on 106 non existing customers and 106 existing customers.
The tools used for analyzing the findings from primary data are TABLES & PIE CHARTS. For the research work a set of questionnaires were prepared separately for the new as well as existing customers. The questionnaires were prepared by the management of the company and there were separate parameters for each. There were 10 parameters for existing customers while 13 for non existing customers.
The methods used to conduct my market survey were:
Questionnaire Personal Interview Personal Observation
Questionnaires were filled up using PRIMARY data while PERSONAL INTERVIEW & PERSONAL OBSERVATION were conducted using the secondary data provided by the company.
SAMPLING:
We were required to conduct our market survey in the high footfall areas of Bangalore. The following were the areas which we tried to cover in our 2 month of survey:
Koramangala Mantri mall Orion mall Phoenix city
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M G road Domlur Rajajinagar UB City Electronic City Whitefield
SAMPLE MATRIX:
There was a matrix provided to us by the company according to which we had to conduct our survey. Below is a table depicting the TARGET ACHIEVED by me during the course of my internship.
MALE
AGE GROUP INCOME GROUP TARGET COMPLETED21-35 Below 50,000 1721-35 50,000-1,50,000 1821-35 Above 1,50,000 16
35-45 Below 50,000 1835-45 50,000-1,50,000 1135-45 Above 1,50,000 5
45-55 Below 50,000 1645-55 50,000-1,50,000 1945-55 Above 1,50,000 17
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FEMALE
AGE GROUP INCOME GROUP TARGET COMPLETED
21-35 Below 50,000 10
21-35 50,000-1,50,000 1421-35 Above 1,50,000 7
35-45 Below 50,000 10
35-45 50,000-1,50,000 535-45 Above 1,50,000 7
45-55 Below 50,000 345-55 50,000-1,50,000 345-55 Above 1,50,000 6
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3.4 WEEK WISE DESCRIPTION OF WORK ASSIGNED
WEEK 1
Work and areas were assigned on a day to day basis. The first 2 days I, had to
wait for the company to finish preparing its set of questionnaires. I was sent a
presentation to go through regarding the products and their specifications. I
were also given a set MATRIX showing a combination of income and age
group according to which I had to get the questionnaires filled up.
Once the questionnaires were ready I was given a list of about 20 areas to be
covered during the course of my internship. These areas were a mix of high end
as well as low foot fall areas where we could meet potential customers.
The areas were as follows :
Rajajinagar
Kormangla
Orion Mall
Whitefield
Electronic City
Mantri Mall
Pheonix Mall
MG Road
Domlur
Indranagar
Marthalli
Hosur Road
Jayanagar
BTM layout
JP Nagar
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HSR Layout
Commercial Street
Ulsoor Road
Shivaji Nagar
Malleshwaram
Sarjapur Main Road
Banarshankari
Hebbal
Kundanhalli
I started visiting these areas from week 1. In this week I faced some problems.
The areas were totally new to me and I had to face some language barriers as
well. Many local people could not understand Hindi/English as a result I found
some problems communicating.
In this first week of internship I had a firsthand experience of the market and
how the company uses its logistics. I was under the direct supervision of Mr
Shashikant Bahgogi. I went to one of their major dealers GIRIAS to find out
about the performance of Lloyd. Different managers of different stores had
different opinions. Some were happy with Lloyd’s products while some were
not. On talking to them I found that a majority of them were using Lloyd
cassette AC’s and some of them were not working. They had complained but no
action had been taken. I realised that Lloyd has a lot of potential and growth as
there are a lot of untapped areas which could be tapped by the company. I met
around 68 Non Lloyd customers during the course of the week and got an
insight about their perception of Lloyd.
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WEEK 2
In the second week I went to more GIRIAS outlets and met more 40 customers
to get their view points .During this 2 week of internship I had a complete
knowledge of the logistics of the company. Its lead time is a maximum of 24
hours. Also what I realised that there were no special sales force in any of the
GIRIAS outlets as a result Lloyd looses out on most of its sales to its
competitors like SAMSUNG , SONY , ONIDA , LG etc.
WEEK 3
In the third week of internship I went to a few channel partners, a few existing
and potential customers. It was a continuation of my second week of internship
where my primary task was to gauge the perception of the customers and the
dealers towards the products of Lloyd.
WEEK 4
The fourth week of internship was a bit different from the previous weeks as my
target segment was different from the previous weeks. My target income group
was between Rs 50,000 to Rs 1,50,000 and above Rs 1,50,000.
As my target segment was different I had to use different techniques to get their
perception as it was very evident that they did not have time to spare. So instead
of using questionnaires I had to talk to them regarding the products of Lloyd.
As a market follower Lloyd has to adopt different strategies to create brand
awareness and has to have a stronger promotional mix.
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WEEK 5
The fifth week was again a continuation of our fourth week of internship where
I had to reach my specific target, Then I had to wait for my company to send me
the database for the existing customers. The database had a complete list of
information regarding the names, contact numbers , address and which Lloyd
product were they using.
WEEK 6
During the 6th week I had to work on the database provided by the company. I
had to visit their houses before taking their appointments. It was again a bit
different from the previous weeks as this week I had to visit EXISTING
customers. Their view points were different from that of NON-EXISTING
customers. It was a very useful week as I got to know and learn a lot this week.
My approach had to be different towards EXISTING customers as compared to
NON EXISTING customers.
WEEK 7
This week was a mixture of calls and personal visits done. I called up most of
the customers and spoke to them regarding the products. Also I tried to find out
what were the problems they were facing while using the products and weather
any attempt had been made by the company to resolve the issue or not. Also i
had to visit a few elite customers of the company. These customers had to be
given special emphasis so a personal visit had to be made on behalf of the
company.
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CHAPTER 4 :
DATA
ANALYSIS
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Income wise segmentation of durables owned
MALESBelow 50,000
AC WM LED REF20 25 22 31
20%
26%
22%
32%
AC
WM
LED
REF
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FEMALESBelow 50,000
AC WM LED REF8 10 6 16
20%
25%
15%
40% AC
WM
LED
REF
MALESFrom 50,000-1,50,000
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AC WM LED REF26 35 30 47
19%
25%
22%
34%
ACWMLEDREF
FEMALES
From 50,000-1,50,000
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AC WM LED REF 15 18 12 20
23%
28%18%
31%AC
WM
LED
REF
MALE
Above 1,50,000:
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AC WM LED REF 26 22 24 27
26%
22%24%
27% AC
WM
LED
REF
FEMALEAbove 1,50,000:AC WM LED REF 6 4 3 6
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32%
21%16%
32%AC
WM
LED
REF
Most recalled Consumer Durable Brand By Males
Samsung LG Sony Panasonic Bluestar Philips Lloyd Others
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66 16 23 6 11 2 1 13
SAMSUNG48%
LG12%
Lloyd1%
SONY17%
PANASONIC
4%
BLUESTAR8%
PHILIPS1%
Others9%
SAMSUNG
LG
Lloyd
SONY
PANASONIC
BLUESTAR
PHILIPS
Others
Most recalled Consumer Durable Brand By Females
Samsung LG Sony Panasonic Bluestar Philips Lloyd Others34 14 4 0 1 2 0 5
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SAMSUNG57%
LG23%
SONY7%
BLUESTAR2%
PHILIPS3%
Others8%
SAMSUNG
LG
SONY
BLUESTAR
PHILIPS
Others
Mode Of Awareness
TV NEWSPAPAER CINEMA ADS
ONLINE DELER PEERS
31 11 44 16 64 69
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0.1319; 9%
0.046; 3%
0.1872; 13%
0.068; 5%
0.7223; 48%
0.3415; 23%
TVNEWSPAPERCINEMA ADSONLINEDELERPEERS
Awareness Of Khusiyon Ki Guarantee In NON-EXISTING Customers
YES NO66 136
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0.1319; 9%
0.046; 3%
0.1872; 13%
0.068; 5%
0.7223; 48%
0.3415; 23%
TVNEWSPAPERCINEMA ADSONLINEDELERPEERS
YES NO0%
10%
20%
30%
40%
50%
60%
70%
80%
33%
67%
Responses
Perc
enta
ge o
f Res
ponc
es
Key factors while buying a consumer durable
QUALITY WARRANTY PRICE SERVICE BRAND IMAGE
TECHNOLOGY
123 8 23 14 31 3
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60.89%
3.96%
11.38%
6.93%
15.34%
1.48%
QUALITY WARRANTY PRICE SERVICE BRAND IMAGE TECHNOLOGY
Expectation from Lloyd
Service Quality Technology Brand Image
Warranty Price
40 10 6 19 3 2
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CHAPTER 5:
FINDINGS AND
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SERVICE; 50.00%
QUALITY; 12.50%
TECHNOLOGY; 7.50%
BRAND IMAGE; 23.75%
WARRANTY; 3.75% PRICE; 2.50%
SERVICE QUALITY TECHNOLOGY BRAND IMAGE WARRANTY PRICE
CONCLUSIONS
5.1 MAJOR FINDINGS FROM THE INTERNSHIP
Lloyd is one of the growing brands in SOUTH INDIA. It has a lot of untapped market opportunities. Lloyd’s main competitors are SAMSUNG, VOLTAS, LG, &
BLUESTAR. There is lack of BRAND AWARNESS. On an average LEEL has a sale of around 20% in all the GIRIAS stores.
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The flagship product for LLOYD is AIR CONDITIONER. Most of the existing customers expect better after sales services from
LEEL. People in Bangalore do not know even about the brand which proves
scope for growth. The channel partners suggestion is to improve ADVERTISMENT &
SALES PROMOTION. There is no sales appointed in the outlets by Lloyd to promote the
products as a result Lloyd looses out footfalls. The latest campaign started by Lloyd known as KHUSHIYON KI
GUARANTEE for its after sales service, which requires proper
execution.
5.2 SIGNIFIGANCE OF FINDINGS
Although this project was assigned to us in order to collect and collate the data for the purpose of BRAND TRACKING FOR CONSUMER DURABLE PRODUCTS and the result’s evaluation was to be done by the company’s marketing analyst. But on compiling the data I, could analyse some part of it in terms of certain parameters.
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The importance of my findings are listed below:
This project has clearly given a true picture of LEELs consumer expectations.
The questionnaires which the existing customers filled up, gave LEEL a reality check on the performance of the products and their services & what the existing customers expect more from their products.
This project gave LEEL a list of potential customers whom could be converted to its existing customers.
The feedback of these Non-existing customers gave LEEL a pool of ideas as to how to improve on its products.
These feedbacks will also give LEEL a pool of ideas for launching NEW products.
These feedbacks would also give LEEL an insight into its after sales service. Lloyd prides itself on its after sales service. So it lays special importance on KKG scheme.
CHAPTER 6 :
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RECOMMENDATION
& SUGGESTIONS
6.1 BRIEF DESCRIPTION OF FINDING &
RECOMENDATIONS
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The following is a brief description of my recommendations and suggestions which LLOYD should keep in mind to implement its current strategies:
Sales Promotions During Sales & After Sales Services
6.2 DETAILED DESCRIPTION OF FINDING &
RECOMMENDATIONS
Sales
During this 2 months of internship I, found Lloyd pre-dominantly has a tie up with only a few of the retail outlets in KARNATAKA. On further conducting my research I found Lloyd does not have a tie up with prime retail outlets like CROMA, RELIANCE DIGITAL.
Lloyd is relatively new to the consumer durables sector and it surely lacks brand awareness as a result it has low conversion of foot falls into sales as compared to the major market players.
So in order to increase its sales LEELs only possible option is to PUSH its products into the market by entering into agreement with major retail outlets so that it can compete at a greater pace with its major competitors like Samsung, LG and Voltas. But only pushing the brand will not help in full as the competing industry giants are following both PUSH & PULL strategies.
LEEL lacks in brand awareness so creating a strong pull ‘now ‘n’ here’ on the potential target is next to impossible & will not be possible by only using cinema ads as the only pulling vehicle. It will require longer time span, creation of sales & service standards, maintaining thorough & proper implementation of the standards undertaken. Which will eventually attain a value & a desired attitude for the brand Lloyd.
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The PUSHING tools used by LEEL are strong distribution network & sales incentives for retails & distributors. But it’s not enough to capture the major chunk the target untapped.
There are two main internal lags affecting negatively on sales-
Absence of sales promoters in outlets of GIRIAS, the main retail partner Pricing strategy of GIRIAS threatening other small dealers to keep Lloyd
products
Let’s discuss these points one by one
Absence of sales promoters in outlets of GIRIAS
In Bengaluru Girias is the main retail partner of LEEL. It has a remarkable presence throughout the city, so, confirming Giras as a partner was a right decision to take. More over people in Bengaluru is very much habituated with organised retail & that also adds up a plus point. But the problem lies in the terms & conditions of Lloyd & Girias. Lloyd does not provide any sales personnel to promote its product in the dealers premises, as a result of that it purposefully gets neglected while other brands get promoting support by their own sales force.
Example –
MR X- I want to buy an AC. What all brands do you have? I want an affordable one & that should be durable as well.
Promoter- Hi sir! I’m Y from Samsung. Please come I’ll show you our range of ACs……...
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Mr X- I can see you also have LG, Voltas & Lloyd.
Promoter- You can also look for LG/ Voltas. This is the guy from LG/ Voltas. He’ll walk you through with LG/ Voltas ACs. Lloyd is a local/ Indian brand sir. You can go for it but I don’t think it’ll serve your purpose.
This way others are killing our sales opportunities. Even above that most of the outlets have Samsung, LG & other brands on their display panel but not Lloyds. That also drives down Lloyds CTS (Chances To Be Seen).
On the flip side appointing sales personnel will ensure a hike in the sales support budget. To get rid of the cost partially I’ve a plan to recommend.
If we look at the graphical representation of Bengaluru’s average temperature, it’s observed that the level of heat that will generate more sales of ACs, takes place between the months of March & May. So, if Lloyd appoints part time sales force to those outlets at this particular time of the year. It’ll surely add profit up in terms of sales in volume & also will attain a cost saving pathway.
Though training & HR cost may be considered as an issue.
Pricing strategy of GIRIAS
Girias follows HIGH VOLUME, LOW MARGIN practice. It sells at lower rate of MRP. Girias’s centralised buying policy, higher reach, during & after sales support & sound brand equity helps it to get maximum number of foot falls than that of any other retail electronic store present in Bengaluru. That becomes an issue for other dealers & standalone electronic stores as they cannot
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afford to consider the same selling price as Girias. So, they try to avoid stocking Lloyd’s product throughout the year or mainly in shoulder seasons. If Lloyd can afford to pay them a bit higher rate of margin, it’ll definitely have a positive impact on Lloyd’s market presence as well as market share.
Promotions
The promotional strategies undertaken by Lloyd seems to be relevant according to the Bengaluru’s Consumer Durables market. But I feel it needs some amendments.
Lloyd is not going into frontal attack in terms of promotion. It’s not following the same promoting gestures of the key market players. If it does, the blue chip players like Samsung, LG will be placing a counter attack by investing a huge chunk of money in their promotional budget & Lloyd may lag in investing that much into promotion to bypass that or even if it does, it’ll incur a higher cost.
My recommendation would be promoting vigorously at the suburban areas of Bengaluru while keeping the promotion at the same current pace in the city.
Other promoting tolls can also be these following sources:
Internet:
Internet is a huge platform for doing promotional activities. As internet provides the largest coverage than any other promotional media, it’s cost affective & less time consuming to get the target segment notified about the brand. LEEL is investing in the internet platform but it’s only done through its official website.
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It’d have been more market specific if SOCIAL MEDIA wear a part of promotional tools. The segment present over FACEBOOK, as an example, is more informative about brands, so, a successful attempt of promoting LLOYD through social media would pay better off than any other costly promoting tools.
Any message that carries an emotional content affects us, Indians, very powerfully. If LEEL makes the same attempt with a TVC having powerful voice over, it’ll make a better platform form creating awareness.
Outdoor Promotions:
In Bengaluru I’ve not seen a single HOARDING or DROP DOWN. It’s always a right saying that the thing that shows, that sales. People in the city hardly aware of the brand. That is also got reflected in my research (Page no. 39 & 40).
During Sales & After Sales Service
As discussed earlier Lloyd doesn’t provide any during sales support in retail sales as a result of that it misses sales opportunities out. But I’ve seen a very supportive response in institutional sales.
Lloyd has a unique way of providing after sales service through a scheme called KHUSHIYON KI GUARANTEE. However this scheme has not meet its expected success by far. Many of the customers are still not aware of this scheme & those who do, most of them refer the scheme is ineffective. The major finding of the research is that even after getting assurance of good after sales service most of the customers complain that, “service personnel doesn’t show up” or “My Ac outlet is fitted at a place difficult to reach & the service personnel refuses to do the service by saying he doesn’t have the tool to reach there.”
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ANNEXURE
8.1 QUESTIONNAIRE- EXISTING LLOYD CUSTOMERS
1. Lloyd products owned:
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AC WM LED REF Other
Appliances
2. How has been your experience of using a Lloyd product? Rate from 0 to 10
with 0 being extremely unsatisfactory and 10 being highly satisfactory.
0 1 2 3 4 5 6 7 8 9 10
3. Has your Lloyd product lived up to the promise of KHUSHIYIO KI
GURANTEE?
Yes No
If NO, what is the reason_________________________________?
4. What more do you want out of Lloyd products?
Quality Warranty Price Service Brand
Image
Technology
&
Innovation
5. During you latest visit to an electronic store (in the past 1 year), did the
dealer recommend you a Lloyd product? Please mention the dealer name in
either case
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Yes No
Dealer/Store Name_____________________________________
6. Have someone in your social circle (friend/family/colleagues) ever
recommended you a Lloyd product
Yes No
7. Would you recommend a Lloyd product to someone?
Yes No
8. Are you satisfied with Lloyd’s after sales service?
Yes No
If No, then why?________________________________________
9. How will you rate the following brands when it comes to AIR
CONDITIONERS? Rank 1 for best AC brand.
RANK
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Voltas
Bluestar
Carrier
Lloyd
Daikin
10. How will you rate the following brands when it comes to other products like
LED’s, Washing Machines and Refrigerators? Rank 1 for best brand.
RANK
LG
Videocon
Onida
Lloyd
Haier
Panasonic
11. Would you like to buy another Lloyd product in the future?
Yes No
If Yes, which product?___________________________________
If No, why?____________________________________________
8.2- QUESTIONNAIRE - NON EXISTING CUSTOMERS
1. Durables owned:
AC WM LED REF
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2. Please tell us which brands in Consumer Durables space come immediately
in your mind? Write them in order of your recall
1
2
3
4
5
3. On a scale of 1 to 5, please rate how familiar you are with the following
brands:
Never
heard of
Slightly
Familiar
Moderately
Familiar
Fairly
Familiar
Extremely
FamiliarLG
Samsung
Panasonic
Lloyd
Voltas
4. Which of the following products does Lloyd make?
Air Conditioner Washing Refrigerator LED Tv
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Machine
5. Have you seen a Lloyd advertisement recently?
Yes No
6. Which medium do you remember coming across a Lloyd advertisement?
Tv Newspaper Cinema
Ads
Online Outdoor/Hoarding
7. Are you aware of Lloyd’s promise of Khushiyo Ki Guarantee?
Yes No
8. How do you interpret KHUSHIYO KI GUARANTEE? Describe in a few
words.
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9. What are the key factors while purchasing a consumer durable product or a
home appliance?
Please rank them in order of importance- 1 being the most important
Quality Warranty Price Service Brand
Image
Technology &
Innovation
10. Would you buy a Lloyd product in the future?
Yes No
11. If NO, then why?
12. During your latest visit (in the past 1 year) to an electronic store, did the
dealer recommend you a Lloyd product? Please mention the dealer name in
either case.
Yes No
Dealer/Store Name:____________________________________
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13. Have someone in your social circle (friend/family/Colleagues) ever
recommended you a Lloyd product?
Yes No
14. Would you recommend a Lloyd product to anyone?
Yes No
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BIBLIOGRAPHY
https://www.google.co.in/maps/place/Bengaluru,+Karnataka/
@12.9539974,77.6309395,11z/data=!3m1!4b1!4m2!3m1!
1s0x3bae1670c9b44e6d:0xf8dfc3e8517e4fe0
http://www.lloydengg.com/
http://www.mylloyd.com/
http://www.moneycontrol.com/india/stockpricequote/consumer-
goods-white-goods/lloydelectricengineering/LEE
http://economictimes.indiatimes.com/lloyd-electric-and-
engineering-ltd/stocks/companyid-8604.cms
http://www.moneycontrol.com/india/stockpricequote/consumer-
goods-white-goods/lloydelectricengineering/LEE
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