market potential of alternators in pune
DESCRIPTION
Marketing Project for MBA studentTRANSCRIPT
A
Project Report
On
“Market Potential of Alternators in Pune”
For
“Crompton Greaves Limited”
By
“Vikram Subhash Belhekar”
Under the guidance of
“Professor Mahesh Gadekar”
Submitted to
“University of Pune”
In partial fulfillment of the requirement for the award of the degree of
Master of Business Administration (MBA)
Through
Vishwakarma Institute of Management
Pune- 48
ACKNOWLEDGEMENT
I would like to express my warm regard to “Crompton Greaves Limited, Pune” office, at
J.M.Road, for giving me opportunity to successfully complete my project report on “Market
Potential for alternators in Pune.”
I sincerely thanks to Mr. Mujahid Shaikh, Senior Manager at Pune office for his valuable
suggestions and guidance for the project.
I must thank to Mr Shailesh Tripathi, from marketing department for his precious,
continuous and day to day guidance for completion of project. His suggestions and
encouragement has helped me to improve quality of my project. He has also given valuable
additions to my marketing knowledge.
I would also like to thank Mr. Batra, Branch Manager for giving me opportunity to
complete my project with their team.
This project would not have been successful without the precious guidance of our Director
Dr. Shailesh Kasande and my project guide Mr. Mahesh Gadekar to whom I express my
sincere gratitude.
Finally I would like to thank our Professor Mrs. Minal Dhotre, who has helped me to
acquire good marketing knowledge and all those friends and others who have helped me to
successfully complete my project.
2
CERTIFICATE FROM VIM
3
CERTIFICATE FROM CROMPTON GREAVES
4
LIST OF ABBREVIATIONS
(1) OEM – Original Equipment Manufacturer
(2) CGL – Crompton Greaves Limited.
(3) KEC- Kirloskar Electric Company
5
LIST OF TABLES
(6.1) Company wise sales in terms of units
(6.2) Dealer wise sales in terms of units
6
LIST OF TECHNICAL TERMS
(1) KVA – Kilo watt Ampere
(2) AC – Alternating Current
(3) DC- Direct Current.
7
INDEX
Sr. No. Title Page No.
1 Executive Summary 1-3
2 Company Profile 4-7
3 Product Profile 8-12
4 Objective of the Study 13-14
5 Research Methodology 15-16
6 Data Analysis 17-47
7 Findings 48-49
8 Conclusion 50-53
9 Recommendation 54-55
9 Bibliography 56-57
10 Annexure 58-67
8
CHAPTER 1
EXECUTIVE SUMMARY
9
Crompton greaves limited one of India’s largest private sector enterprises engaged in
the manufacture of electrical engineering products. Crompton greaves is very well known
brand in field of electrical equipments.
The fans and lighting businesses acquired "Super brand" status in January 2004. It is a
unique recognition amongst the country's 134 selected brands by "Super brands", UK.
The main objective of the study was to find out the “Market potential of alternators in
Pune”. Alternators are coupled with generators engine. Their size ranges from 1 KVA-
2000KVA. They convert chemical energy into electrical energy. KVA is a measuring unit
which means kilo watt ampere.
To decide the Research Methodology we take into consideration the business
partition. As the business is divided in two areas i.e. Original Equipment Manufacturer’s
(OEM’S) and Dealers, we prepare two separate questionnaire and analyzed it.
For collecting the primary data we went to various OEM’s and dealers. The
geographical coverage was Pune and PCMC area.
The findings of the project were positive. Alternators market size in Pune is very large
and continuously growing, at an average growth of 20%. Presently total Alternator market
size in Pune among OEM’s is around 77,000 units, which counts to be approximately 230 Cr
in value.
And among dealers the market size is around 4400 units, which counts to be 10 Cr in
value. Thus OEM business counts to be very much large.
The major player among both business areas are CGL, Stamford, KEC, Trident.
Other major finding was of portable size gensets. At dealer level they are in good
demand.
10
CGL is growing fast than market rate in OEM business in Pune, and also they are
able to satisfy customers with their product and service.
CGL is presently no. 1 in Pune in terms of unit wise sales, thus by keeping the
aggressive marketing strategy company can achieve the no. 1 position countrywide.
11
CHAPTER 2
COMPANY PROFILE
12
Crompton Greaves Limited (CG), a member of the BM Thapar Group, is one of India’s
largest private sector enterprises engaged in the manufacture of electrical engineering
products and turnkey projects. Incorporated in 1937, CG is headquartered in a self-owned
landmark at Worli, Mumbai.
The business operations of the Company consists of 21 divisions spread across
Maharashtra, Gujarat, Goa, Madhya Pradesh, Karnataka and Tamil Nadu.
CG is the Indian Market leader across a number of product groups in the electrical
engineering sector. The company enjoys an export presence in over 60 countries, which
includes the emerging South-east Asian and Latin American markets.
CG is a single-point source for a variety of electrical equipment and products. It
addresses all the segments of the power industry from complex industrial solutions to basic
household requirements.
The strategy followed till today includes acquisitions and exceptional financial
structuring to tap opportunities and fuel growth. Though family owned, the organization has
always been professionally managed, and lists employee development and leadership training
as core to its business success.
The company has shown preparedness in meeting evolving customer expectations
through its initiatives of continuous product development, product up-gradation and new
markets.
HISTORY:-
The history of Crompton Greaves goes back to 1878 when Col. R.E.B. Crompton
founded R.E.B.Crompton & Company. The company merged with F.A Parkinson in the year
1927 to form Crompton Parkinson Ltd., (CPL). Greaves Cotton and Co (GCC) was appointed
13
as their concessionaire in India. In 1937, CPL established, it's wholly owned Indian
subsidiary viz. Crompton Parkinson Works Ltd., in Bombay, along with a sales organization,
Greaves Cotton & Crompton Parkinson Ltd., in collaboration with GCC. In the year 1947,
with the dawn of Indian independence, the company was taken over by Lala Karamchand
Thapar, an eminent Indian industrialist. Presently Crompton Greaves is headquartered in a
self-owned landmark building at Worli, Mumbai.
PRODUCTS & SERVICES OFFERED :-
CG comprises four principle Business Groups :
(1) Power Systems
(2) Industrial Systems
(3) Consumer Products and
(4) Telecom.
Nearly two-third of the company’s turnover accrues from product lines in which it
enjoys a leadership position.
Presently, the company is offering wide range of products such as power & industrial
transformers, HT circuit breakers, LT & HT motors, DC motors, traction motors, alternators/
generators, railway signaling equipments, lighting products, fans, pumps and public
switching, transmission and access products. In addition to offering broad range of products,
the company undertakes turnkey projects from concept to commissioning.
The fans and lighting businesses acquired "Super brand" status in January 2004. It is a
unique recognition amongst the country's 134 selected brands by "Super brands", UK.
14
CHAIRMAN & CEO :-
Gautam Thapar is Chairman & CEO of India's foremost
diversified corporation, the Avantha Group. Gautam represents the third
generation of a business family, founded by his grandfather, Karam
Chand Thapar, in Calcutta (now Kolkata) eighty years ago. Over the
decades, the organization has shown resilience and entrepreneurial spirit,
and has continuously reinvented itself without wavering from its core
values of integrity and creating lasting value for its stakeholders.
Gautam began his education at the prestigious Doon School, where he imbibed a
liberal education based on the ideals of secularism, discipline and equality. After studying
chemical engineering in the U.S.A., he returned to India and started his career as a factory
assistant in one of the organization's manufacturing companies. He rose steadily and steered
the organization through a strategic and visionary turnaround, involving resilience and
restructuring, ensuring that the Group attained dominant status in key operating sectors.
Gautam became Group Chairman on 1st July 2006. He sits on the Board of various
companies in India and overseas, and is one of India's youngest and brightest global business
leaders.
15
CHPATER 3
PRODUCT PROFILE
16
INTRODUCTION (ALTERNATORS):-
To cater to the needs and challenges of 21st century, of both its customers who have
placed their confidence in the company throughout the years and those who will join it in the
future Compton Greaves Limited have introduced new AC generators. This is to improve
products towards world class quality and to maintain the status of qualified and reliable
partner.
These AC generators are manufactured using the most advanced technology in all the
facets of manufacturing that is Design, Construction, Processing, Inspection, and Testing to
meet the commitment of “Total Customer Satisfaction”. These AC generators ensure a
continuous power supply and a very prolonged trouble free life.
The design and construction are conceived to facilitate the coupling to the engine in all
the foreseen “Types of Construction”.
GENERAL :-
Rating confirming to the Standards :IS 4722, 13364 (part 1&2), IEC: 34 & BS : 5000
part 99.
5-15 KVA 240V 0.8 pf, 50 Hz, 1 Phase, Slip-Ring type (G2S/G1S Type)
5-82.5 KVA 415V 0.8 pf, 50 Hz, 3 Phase, Slip-Ring type (G2S/G1S Type)
5-25 KVA 240 V 0.8 pf, 50 Hz, 1 Phase, Brushless Type (G2R/G1R Type)
5-625 KVA 415 V 0.8 pf, 50 Hz, 3 Phase, Brushless Type (G2R/G1R Type)
DESIGNATION :- G 2/1 R/S XXX/ X X X
G - AC Generator
17
2/1 - Double Bearing./ 1- Single Bearing.
R/S - with AVR / S-with Slip ring
XXX - KVA Rating
X - Number of poles (4 or 2)
X - Flange SAE No. (1,2, …)
X - Coupling Disc SAE No. ( 1=18//, 2=14//, 3=11.5//, 4=10//, 5=8//, 6=7.5//, 7=6.5//)
CONSTRUCTION :-
In G1S / G2S type AC generators, Armature winding is housed in stator and field
winding is placed on rotor. The DC excitation power is supplied through two small size slip
rings and brush holders & it is controlled by compounding excitation transformer.
In G1R / G2R type AC generators, Armature winding is housed in stator and field
winding is placed on rotor. The DC excitation power is supplied by the Brushless AC exciter
with rotation Rectifier Assembly & it is controlled by Electronic AVR (Automatic voltage
Regulator).
Stator Frame
Stator Core
Stator Main Winding
Stator Auxiliary Winding
Stator / Rotor Insulation System
Rotor Core
End Shield
Bearings
18
Shaft
Slipring And Brush Holder Assly
Rectifier Assembly
Terminals And Terminal-Box Assembly
Accessories
OPERATING PRINCIPLES :-
When started, residual magnetism in the exciter stator core induces a voltage in the
exciter armature. This voltage is rectified by the diodes and fed to the main field winding,
which will circulate the DC current through the field winding. The linkage of DC flux with
the armature winding (Main & Auxiliary winding) will induce voltage in the armature
Main field (Rotor)
Main stator Exciter field
Exciter Rotor(Arma- Ture)
A.V.R
Sensing
Rotating diodes
Power from Aux. wdg.
Output
Set Reference
Mechanical Rotational Power Input
3.1 Operating principle of alternator
19
winding. The induced voltage in the Auxiliary winding is used as a separate source of supply
for the AVR. Sensing of AVR is taken from the main terminals. The DC output of the AVR
is given to the exciter field winding. The AVR regulates the terminal voltage within +/- 1%
from no load to full load by controlling the excitation of the exciter field.
SALENT FEATURES OF CGL AC GENERATOR :-
ELECTRICAL PERFORMANCE :-
(1) AVR used on these machines are of proven design. These are encapsulated against
moisture, sand, salt, humidity and corrosive atmosphere ensuring trouble free
operations under the most demanding conditions. The voltage regulation offered is
+/- 1%.
(2) High induction motor starting capacity -1kVA starts 1 HP (Except for Submersible
Pumps where starting current is > 600% FLC.) under Ideal conditions.
(3) Wave- form distortion on no-load is well within limits i.e. < 5% as per IS standard.
(4) Armature winding is 2/3rd pitch, which along with auxiliary winding excitation
system provides better performance.
(5) Damper winding on poles ensures smooth parallel operation with similar and
dissimilar machines.
(6) Liberally rated diodes used in rotating rectifier assembly ensures high reliability.
(7) A Metal Oxide Varistor protects the rotating diodes against the surge voltages.
FORMULAE
TO OBTAIN SINGLE PHASE THREE PHASE
Kilowatts (KW) V*I*PF / 1000 1.732*V*I*PF / 1000
kVA V*I / 1000 1.732*V*I / 1000
20
CHPATER 4
OBJECTIVE
21
OBJECTIVES OF THE STUDY:-
1. To find the market potential of Alternators in Pune region.
2. To find the market share of CGL alternators in Pune region.
3. To study the markets for Alternators, market size, major players and their rankings in
Pune region.
4. Search for potential buyers (OEMs, dealers for the product in the market targeted)
5. Establish business contacts and communication with potential customers.
6. To find the satisfaction level of the customers.
7. To find the problems faced by CGL alternators customers.
22
CHAPTER 5
RESEARCH METHODOLOGY
23
RESEARCH METHODOLOGY:-
(1) Segmentation of market in OEM’s and Dealer.
(2) Preparing a Questionnaire for all the above segments.
(3) Collecting data about OEM’s and Dealers of Gen-set In pune by Primary Method.
(4) Market Survey of all Segments for collecting data about market potential of alternators
in Pune region.
(5) Tabulate and Analyze the data.
SAMPLING PLAN :-
Sorted out 18 Original Equipment manufacturer (OEM’S) of Gen-sets and
49 Dealers of Gen-sets in Pune region
GEOGRAPHICAL COVERAGE :-
Pune City
PCMC
Industrial areas in Pune and PCMC.
24
CHAPTER 6
DATA ANALYSIS
25
‘OEM’ DATA ANALYSIS AND INTERPRETATION
(1) To study market share & growth rate of Alternators :-
2006-2007 2007-2008 2008-2009
Company
Name
VALUES
(Units)
% Market
Share
VALUES
(Units)
% Market
Share
VALUES
(Units)
% Market
Share
CGL 15727 29.28 19105 31.16 29275 38.08
KEC 8460 15.75 9494 16.01 10658 13.86
TRIDENT 11083 20.63 12017 20.26 14615 19.01
STAMFORD 16450 30.62 18200 30.68 19336 25.15
OTHERS 2000 3.72 2500 4.21 3000 3.90
Total 53720 59316 76884
(6.1) Company wise sales in terms of units ( Source- Secondary data of survey)
There is seen steady growth in market share of Crompton Greaves ltd. in Alternators
market. Also market share has grown tremendously in 2008-2009 by 7%.
We can say from table that all players in Alternators market are doing good business. These
are:-
1. CROMPTON GREAVES LTD.
2. STAMFORD
3. TRIDENT
4. KEC
26
.
% Market Share in 2006-07
29%
16%21%
30%
4% CGL
KEC
TRIDENT
STAMFORD
OTHERS
% Market Share in 2007-08
31%
15%20%
30%
4% CGL
KEC
TRIDENT
STAMFORD
OTHERS
27
% Market share in 2008-09
38%
14%19%
25%
4%CGL
KEC
TRIDENT
STAMFORD
OTHERS
Interpretation:
As we can see from the table, Alternators market size is very large and continuously
growing, at an average growth of 20%. Presently total Alternator market size in Pune among
OEM’s is around 77,000 units, which counts to be 230 Cr in value.
Crompton Greaves market share regarding overall sales of Alternator considering all
market segments has increased from 31% to 38% from year 2007/08 to 2008/09. And 10%
growth rate expected in year 2009/10 which will take market share to 41%.
28
2. To study Rating of Alternators OEM Purchase.:-
Range Frequency
Upto 50 kVA 18
62.5 to 125 kVA 16
140 to 250 kVA 15
275 to 625 kVA 12
625 and above 14
Range of alternators used
1816 15
1214
0
5
10
15
20
Upto50
140-250
Above625
Range
Fre
qu
en
cy
Frequency
Interpretation:
As we visited 18 OEM’s 77% of OEM’s are dealing with alternators above
625 kVA, which contributes highest to the business. Also from our observation very less
OEM’s are dealing in alternators below 5 kVA. Thus we can say that OEM market is majorly
dealing in higher range of alternators.
29
3. To study importance of various influencing factors while making buying decision for
OEM’s. (5= Very Important, 4=Important, 3=Neutral, 2= Not Important, 1= Not at all
Important)
BRAND:
To study Brand Affecting Purchase Decision of OEM’s Customer.
In all 18 OEM’s replied to this question
10 customers replied Brand is very Important in Purchase Decision .
7 customer replied Brand is Important in P.D.
1 customer replied Brand is Neutral in P.D.
Brand Affecting Purchase Decision
54
32
1
10
7
3
0 00
2
4
6
8
10
12
1 2 3 4 5
Rating Ofbrands
NO. OfCustomers
Interpretation:
As we can see from Table Brand is Very Important for 55 %OEM’s. Whereas 38%
Replied brand is Important . Rest of customer replied brand is neutral for us.
30
PRICE:-
To study Price Affecting Purchase Decision of OEM’s Customer.
In all 18 OEM’s replied to this question.
14 customers replied price is very Important in Purchase Decision
4 customers replied price is Important in Purchase Decision
Price Affecting Purchase Decision
54
32
1
14
4
0 0 00
2
4
6
8
10
12
14
16
1 2 3 4 5
Rating OF Price
NO. OfCustomers
Interpretation :-
As we can see from Table Price is Very Important for 78 %OEM’s. Whereas 22%
Replied Price is Important for them .
PRODUCT FEATURES:
. To study Product Feature and Quality Affecting Purchase Decision of OEM’s
Customer
In all 18 OEM’s replied to this question.
14 customers replied product Feature is very Important in Purchase Decision
4 customers replied product Feature is Important in Purchase Decision
31
Product Feature Affecting P.D
54
32
1
14
4
0 0 00
2
4
6
8
10
12
14
16
1 2 3 4 5
Rating OFProduct Feature
NO. OfCustomers
Interpretation:
As we can see from Table Product Feature is Very Important for 78 %OEM’s.
Whereas 22% Replied product Feature is Important for them .
Service Network :-
. To study service Network Affecting Purchase Decision of OEM’s Customer.
In all 18 OEM’s replied to this question.
11 customers replied service Network is very Important in Purchase Decision
6 customers replied service Network is Important in Purchase Decision
1 customers replied service Network is Neutral in Purchase Decision
32
Service Network Effecting P.D
54
32
1
11
6
10 0
0
2
4
6
8
10
12
1 2 3 4 5
Rating OF ServiceNetw ork
NO. Of Customers
Interpretation:-
As we can see from Table service Network is Very Important for 61 %OEM’s.
Whereas 34 % Replied service Network is Important for them . Rest of customer replied
service network is neutral for them.
Delivery:-
To study Delivery Affecting Purchase Decision of OEM’s Customer.
In all 18 OEM’s replied to this question.
11 customers replied Delivery is very Important in Purchase Decision
6 customers replied Delivery is Important in Purchase Decision
1 customers replied Delivery is Neutral role play in Purchase Decision
33
Delivery effecting P.D
54
32
1
11
6
10 0
0
2
4
6
8
10
12
1 2 3 4 5
Rating OF Delivery.
NO. Of Customers
Interpretation:-
As we can see from the table Delivery of product is very important for most of OEM’s
purchase decision
Availability:-
To study Availability of Product Affecting Purchase Decision of OEM’s Customer.
In all 18 OEM’s replied to this question.
12 customers replied Availability of Product is very Important in Purchase
Decision
4 customers replied p Availability of Product is Important in Purchase Decision
2 customers replied Availability of Product is play neutral role in Purchase
Decision .
34
Availbilty Effecting P.D
54
32
1
12
4
2
0 00
2
4
6
8
10
12
14
1 2 3 4 5
Rating OF Avalibilty.
NO. Of Customers
Interpretation:-
As we can see from the table Availability of product is very important for most of
OEM’s purchase decision
Consultant Recommendation:-
To study Consultant Recommendation about Product Affecting Purchase Decision of
OEM’s Customer.
In all 18 OEM’s replied to this question.
2 customers replied Consultant Recommendation is very Important in P.D.
9 customers replied Consultant Recommendation is Important in P.D.
7 customers replied Consultant Recommendation is play Neutral role in P.D.
35
Consultant Recommendation Effecting P.D
54
32
10
2
9
7
00123456789
10
1 2 3 4 5
Rating OF ConsultantRecommendation
NO. Of Customers
Interpretation:
As we can see from Table Consultant Recommendation is Play Neutral role in
OEM’s Purchase Decision., as well as for some OEM’s its not Important.
4.BRAND ASSOCIATION ATTRIBUTES:
To study Brand positions of various Alternators manufacturing companies for OEM
customer.
In this 6 OEM’s replied to this question
4 customers replied Brand of Stamford is good i.e. 1st rank.
2 customers replied Brand of CG is good i.e. 1st rank.
36
Brand Customers prefer most
67%
33%
0%0%
10%
20%
30%
40%
50%
60%
70%
80%
Stamford CGL KEC
Brand Customersprefer most
Interpretation _
As we can see from table customers prefer brand Stamford more as compare to others.
Availability:-
To study Availability of various Alternators manufacturing companies for OEM customer
In this 5 OEM’s replied to this question
3 customers replied Availability of Stamford is more in market i.e. 1st rank.
2 customers replied Availability of CG is good i.e. 1st rank
Availability more in market
60%
40%
0%0%
10%
20%
30%
40%
50%
60%
70%
Stamford CGL KEC
Brand Customersprefer most
37
Interpretation :-
As we can see from table Stamford and CGL are more penetrated in market rather than
other.
Product features:-
To study Product Features of various Alternators manufacturing companies for OEM
customer
Product feature better
60%
40%
0%0%
10%
20%
30%
40%
50%
60%
70%
Stamford CGL KEC
Brand Customersprefer most
Interpretation:-
As we can see from table more customer prefer Stamford when product feature is
considered.
Service Network:-
To study Service Network of various Alternators manufacturing companies for OEM
customer
38
Service Network Better
40%
60%
0%0%
10%
20%
30%
40%
50%
60%
70%
Stamford CGL KEC
Brand Customersprefer most
Interpretation:-
As we can see from table Service Network of CGL is better than Others.
Advertising:-
To study Advertising of various Alternators manufacturing companies for OEM customer
advertising
33%
67%
0%0%
10%
20%
30%
40%
50%
60%
70%
80%
Stamford CGL KEC
Brand Customersprefer most
Interpretation:-
As we can see from table advertising of CGL is better than Stamford.
39
5.To study the satisfaction with following feature of CGL alternator:-
In this 6 OEM’s replied to this question
Paint:- 5 customer replied they are satisfied, 1 replied he is not satisfied
Finish :- all replied they are satisfied with finish.
Aesthetics:- all replied they are satisfied with Aesthetic
Packing:- all replied they are satisfied with Packing.
% customer Satisfied
Paint, 83%
Finish, 100%Aesthetic,
100%
Packing, 100%
Paint
Finish
Aesthetic
Packing
6.To study the what customer think about current pre sale support offered by CGL to
them .
Rate CGL alternator as per the fulfillment their
expectation:-
In this 6 OEM’s replied to this question
Very good:- 0 customer replied
Good:-5 replied good.
Average:-1 replied average.
Poor:-0 replied poor.
40
Current Pre Sale offered by CGL, Accoridng to them CGL alternator fullfill their Expectation
0%
83%
17% 0%Very good
Good
Average
Poor
Interpretation:-
As we can see the table 83% customers feel Good, CGL Alternator
fulfill their expectation.
7.To study the what customer think about the current post sale support offered by CGL
to them .
Rate CGL alternator as per the fulfillment their
expectation
In this 6 OEM’s replied to this question
Very good:- 0 customer replied,
Good:-4 replied good.
Average:-2 replied average
Poor:-0 replied poor
41
Current Post Sale offered by CGL, Accoridng to them CGL alternator fullfill their Expectation
0%
67%
33%0%
Very good
Good
Average
Poor
Interpretation:-
As we can see the table 67% customers feel Good, CGL Alternator
fulfill their expectation. Rest 33% feel Average CGL alternator fulfill their
expectations.
8.To study the CGL customer are satisfied with response for product modification and
development.
In this 5 OEM’s replied to this question
Yes:- 4 customer say,
No:- 1 customer say
42
% customer satisfied
79%
21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Yes No
% customer satisfied
Interpretation:-
As we can see from table 79% customer are satisfied From CGL with
response for product modification and development.
9.To study the CGL customer are satisfied with overall completion of contract By CGL.
In this 6 OEM’s replied to this question
Yes:- 5 customer say,
No:- 1 customer say
43
% customer satisfied
83%
17%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Yes No
% customer satisfied
Interpretation:-As we can see from table 83% customer are satisfied
with overall completion of contract By CGL. But there is 17% who are saying no,
so CGL should look for this customers so that they are not lost.
44
‘DEALER’ DATA ANALYSIS AND INTERPRETATION
(1) To study market share & growth rate of Alternators :-
2006-2007 2007-2008 2008-2009
Company
Name
VALUES
(Units)
% Market
Share
VALUES
(Units)
% Market
Share
VALUES
(Units)
% Market
Share
CGL 934 26.69% 1068 27.45% 1400 32.36%
KEC 597 17.06% 725 18.63% 519 11.99%1
TRIDENT 75 2.14% 55 1.41% 90 2.08%
STAMFORD 493 14.08% 542 13.93% 632 14.61%
OTHERS 1400 40.01% 1500 38.56% 1685 38.95%
Total 3499 3890 4326
(6.2) Dealer wise sales in terms of units
From above table it can be seen that CGL, Stamford, KEC have good market share even
at dealer level also. It is seen that KEC market share has decreased by 7% in 2008-09,
whereas CGL has gain significant 5% share in the market. Thus we can say that CGL has
grabbed the KEC customers. It is also seen that the other market share is very large at dealer
level (Almost 40%), which majorly includes portable dealers. Thus Portable Genset market is
very strong at dealer level. And all other major players are doing well..
45
Market Share in 2006-07
27%
17%2%14%
40%CGL
KEC
TRIDENT
STAMFORD
OTHERS
Market Share in 2007-08
27%
19%1%14%
39%CGL
KEC
TRIDENT
STAMFORD
OTHERS
46
Market Share in 2008-09
32%
12%2%15%
39%CGL
KEC
TRIDENT
STAMFORD
OTHERS
Interpretation :-
From above graph we can see that market of dealer is growing at a speed of 11%,
whereas, others are below market growth rate so definitely there is tremendous opportunity in
this sector. Major OEM players like CGL, KEC, Stamford can target the other segment
which mainly include the portable size gensets like Honda.
(2) Brand of alternators used by dealers :-
For this 76 frequencies were noted.
Out of which 22 were dealing with Stamford
15 with CG,
3 with trident
4 with LS
20 with KEC and 12 with others which majorly includes portable gensets.
47
The graph of this is shown below.
Alternators used by Dealers
29%
20%4%5%
26%
16% Stamford
CG
Trident
LS
KEC
Others
Interpretation :-
It is hereby noted that good no of dealers are dealing with Stamford and KEC, but still
CG is having more market share than both of these brands. Reason being definitely the
quantity sold by them. Others percentage is less than major players which shows that less
quantity of dealers deal in portables but they sell high.
(3) Range of alternators used by dealers :-
For this 110 frequencies were noted.
Out of which 45 were dealing with alternators up to 50 KVA
30 were dealing with alternators ranging from 62.5 to 125 KVA
25 were dealing with alternators ranging from 140 to 250 KVA
22 were dealing with alternators ranging from 275 to 625 KVA
And 18 were dealing with alternators above 625 KVA.
48
The graph is shown below.
Range of Alternators
32%
21%18%
16%
13% Upto 50KVA
Upto 125 KVA
Upto 250 KVA
Upto 625 KVA
Above 625 KVA
Interpretation :-
Graph shows that more no. of dealers are dealing with alternators up to 50 KVA,
whereas all other ranges except above 625 are comparative. Above 625 range is handled by
less no. of dealers.
(4). To study importance of various influencing factors while making buying decision
for Dealers. (5= Very Important, 4=Important, 3=Neutral, 2= Not Important, 1= Not at
all Important)
BRAND:
To study Brand Affecting Purchase Decision of Dealer.
In all 49 dealers replied to this question
26 customers replied Brand is very Important in Purchase Decision .
49
19 customer replied Brand is Important in P.D.
5 customer replied Brand is Neutral in P.D.
Whereas only 2 people replied Brand is not so important in P.D.
Whereas no customer denied that brand is not at all important in P.D.
Brand affecting P.D.of dealer
1 2 3 4 5
02
5
19
26
0
5
10
15
20
25
30
1 2 3 4 5
Rating of brand
No
. o
f p
eop
le
Ratings of brand
No. of people
Interpretation :-
From the above graph it is evident that building a brand in customer mind is very
important to most of the people, whereas some may look for other featues.
PRICE:-
To study Price Affecting Purchase Decision of Dealers.
In all 49 dealers replied to this question.
30 customers replied price is very Important in Purchase Decision
17 customers replied price is Important in Purchase Decision
Only 2 were neutral, and no customer denied the importance.
50
Price affecting P.D. of Dealer
1 2 3 4 5
0 02
17
30
0
5
10
15
20
25
30
35
1 2 3 4 5
Rating of Price
No
. O
f P
eo
ple
Rating of Price
No. Of People
Interpretation :-
From above graph it is evident that dealer do look for price as it affects their
profitability, so price is the important factor in dealers market.
PRODUCT FEATURES:-
To study Product features affecting Purchase Decision of Dealers.
In all 49 dealers replied to this question.
28 customers replied product features is very Important in Purchase Decision
19 customers replied product features is Important in Purchase Decision
Only 2 were neutral, and no customer denied the importance.
51
Product features affecting P.D.
1 2 3 4 5
0 02
19
28
0
5
10
15
20
25
30
1 2 3 4 5
Rating of Product Features
No
. o
f P
eop
leRating of Product feature
No. Of People
Interpretation :-
This clearly shows that though dealers are looking for profitability, they cannot ignore
the product features at the cost of more profitability even in dealers market.
Delivery:-
To study Delivery Affecting Purchase Decision of OEM’s Customer.
In all 49 dealers replied to this question.
22 customers replied Delivery is very Important in Purchase Decision
17 customers replied Delivery is Important in Purchase Decision
10 customers replied Delivery plays Neutral role in Purchase Decision
Whereas no customer denied the importance.
52
Delivery affecting P.D.
1 2 3 4 5
0 0
10
17
22
0
5
10
15
20
25
1 2 3 4 5
Rating of delivery
No
. o
f p
eop
le
Rating of delivery
No. Of people
Interpretation :-
As no customer denied the importance it is evident that delivery is and important factor
in purchase decision of dealers.
(5) Inquiries generated from different industries :-
We find out that from where the dealers get maximum inquiries for alternators. We
consider the major segments who use gensets like telecom, hospitals and retail. In all we got
132 reply with different industries. Many dealers were getting inquiries from more than 2/3
industries.The graph shows values and different percentage of inquiries from different
industries.
53
No. of inquiries from industries
41, 31%
31, 23%
39, 30%
14, 11% 7, 5% Telecoms
Hospitals
Retail
Government
Others
Interpretation :-
We can say that telecom and retail industries are more interested in dealer level, as
compared to hospital. Reason may be the less use of gensets in hospital industry. So the
company may appoint some more dealer to track these market.
(6) Past experience with CGL :-
Out of all 49 customer 22 were past or current customer of CGL, whereas 22 have not
deal with CGL at all. This is shown below.
54
Past experience with CGL
22, 45%
27, 55%
Yes
No
Interpretation :-
The presence of CGL with 45% of dealers shows good penetration of CGL in dealer
market also, whereas still there is 55% of customer who can be trapped.
55
CHAPTER 7
FINDINGS
56
FINIDING:-
1. Alternators market size is very large and continuously growing, at an average growth of
20%. Presently total Alternator market size in Pune among OEM’s is around 77,000 units,
which counts to be 230 Cr in value.
Crompton Greaves market share regarding overall sales of Alternator considering all
market segments has increased from 31% to 38% from year 2007/08 to 2008/09. And 10%
growth rate expected in year 2009/10 which will take market share to 40%.
2. Alternator market size dealer market is also considerably affecting the market, which
counts to be approximately 4400 units. This counts to be 10 Cr in value.
3. In dealers market considerable market size is occupied by portable gensets, so this can be
the future target of major OEM players. Dealers market is also growing at considerable 11%,
whereas CGL is growing at 5% in dealers market.
4. CGL, Stamford, Trident and KEC are major players in Alternators both in OEM and dealer
market.
5. CGL is able to produce customer satisfaction among both OEM and dealer customer.
57
CHAPTER 8
CONCLUSION
58
CONCLUSION:-
SWOT ANALYSIS
STRENGTH
1. WELL KNOWN BRAND
2. WELL ESTABLISHED NETWORK
3. WIDE AND SUPPORTIVE DEALERS NETWORK
4. GOOD MARKET SHARE
5. GROWING AT CONSIDERABLE RATE
WEAKNESS
1. NOT SO STRONG IN DEALERS MARKET
2. BRAND ASSOCIATION ATTRIBUTE LESS AMONG CUSTOMERS
3. SOMEWHAT PRICE BASED MARKETING
OPPORTUNITY
1. OPPORTUNITY IN DEALERS AS WELL AS OEM MARKET TO INCREASE
MARKET SHARE.
2. OPPORTUNITY TO ENTER IN SMALL RANGE ALTERNATORS.
THREAT
1. WHAT IS BEING CONTEMPLATED BY CG, CAN BE TAKEN UP BY THE
COMPETITORS
2. THREAT FROM STRONG COMPETITOR LIKE STAMFORD.
59
CGL having the measure percentage share of around 38% in Alternators market . CGL has
managed to make its place at First position . But still Crompton greaves’ marketing strategies
and advanced technological development regarding Alternator can take the company higher
with the market share of 45% in forthcoming year.
CGL has proved itself very strong on the front of
a. Brand name
b. Advertisement
c. Availability and delivery of the product
PRODUCT
Crompton Greaves Ltd. (CG) seems to be scoring good on the attribute of past
experience. This clearly indicates that CG may not either original supplier but still accepted
as a performing product. The fact that brand recall for CG is on a higher side reinforces this.
It also indicates that CG marketing team is very proficient at timely recognizing customer’s
need and executing commercial negotiations. This can be confirmed in the light of CG’s
position of a market leader.
PHYSICAL DISTRIBUTION
Yet another forte of CG.CG is seen very favorable in terms of delivery i.e. , logistics and
service network. This indicates one large issue – fulfillment of commitments for keeping
customers happy and satisfied. In fact CG enjoys leadership status on these issues.
PROMOTIONS
This entails two attributes namely advertising and information dissemination. And these
indeed are the aching nerves. Off these, advertising is still okay- as none of the competitors is
enjoying a great recall on this attribute. Information about product seems to be missing with
60
the customers. Low scores accomplished by CG on product features and product information
amply prove this.
DERIVATIVE
CG is able to sell its wares on the virtues of being an old company and its ability to
negotiate well with the customer supported by an established product. This narrows down the
focus to the procedure called ‘selling’ and not marketing. This strategy has been very
successful in the past would keep on giving rewards for another 4-5 years or so
61
CHAPTER 9
RECOMMENDATIONS
62
RECOMMENDATIONS:
1. Marketing communication with the consultants, OEMs and dealers.
2. CGL should make a thorough and timely communication with OEMs, dealers and
consultants. It will help analyzing the market position, current trends and latest
technologies in Alternators.
3. Promotional Strategies-
I. Producing Technical literature
II. Product Approval From Consultants/OEMs.
4. Minimizing the sales lead time .
5. Minimizing the manufacturing time to improve availability and delivery standards
6. Determining seasonal Purchasing behavior of the end users.
7. Providing the best after sales service and Schemes like free maintenance for specific
time period after purchase.
8. Service should be on time.
9. We have to come in low range also means below 5 kva there is also a demand of this
range, particular in commercial sector .
63
CHAPTER 10
BIBLIOGRAPHY
64
Books:
1. Super Brands.
2. Company Product manual.
3. Company Profile Broucher.
4. Research Methodology C.P Kothari .
Websites:
1. www.cgonline.com
2. www.cromptongreaves.com
65
ANNEXURE
CUSTOMER FEEDBACK FORM FOR OEM’S
Personal Details
Name of the Organization: .....................................
Contact Person: ......................................................
Designation: ….........................................................
Contact No. .................. Email Id. ...................
Address: ............................................................
..............................................................
1. Which brand of alternator are you using?
CG Stamford Trident LS KEC Others(................)
2. What KVA alternator are you using presently?
Up to 50 KVA 62.5 KVA TO 125 KVA 140 KVA to 250 KVA
66
275 KVA to 625 KVA 625 KVA AND ABOVE
3. DECISION MAKERS
Production Purchase R&D Maintenance Finance
Name
Designation
Mobile
Contact time
4. ALTERNATORS PURCHASED IN THE LAST THREE YEARS
Make YEAR STAMFORD KEC CGL TRIDENT LS
Type
ALTERNA
TORS
2006
2007
2008
5. FACTORS AFFECTING PURCHASE DECISION -
[(5=Very Important, 4=Important, 3=Neutral, 2= Not Important, 1= Not at all
Important)]
Brand Past Experience
67
Price Delivery
Product Features Availability
Service Network Dealer Network
Advertising Availability Of Information
Original/Existing Equipment Make Consultant’s Recommendation
6. BRAND ASSOCIATION ATTRIBUTES
[Following are given some attributes. You are requested to recall two top-of-the-mind brands
best associated with these attributes]
a. Brand 1) ________ 2)________
b. Availability 1) ________ 2)________
c. Product Features 1) ________ 2)________
d. Dealer network 1) ________ 2)________
e. Service network 1) ________ 2)________
f. Delivery 1) ________ 2)________
g. Past Experience 1) ________ 2)________
h. Advertising 1) ________ 2)________
I. Product Information 1) ________ 2)________
7. Rate Crompton Greaves Ltd. alternator on the following factors? Compare to?
Stamford Trident LS KEC
68
(1- Excellent, 2- Very good, 3- Good, 4- Average, 5- Poor)
8 . Are you satisfied with following features alternator?
Yes No If no pl. comment
- Paint
- Finish
Aesthetics
Packing
9. What do you think about the current Pre sale support offered to you by CGL and
what change do you expect ?
. ......................................................................................................................................
69
1 2 3 4 5
Product Quality
Brand Visibility
Range of Products
Customer
Relationship
Rate CG alternator as per the fulfilment your expectations?
Very good Good Average Poor
10. What do you think about the current Post purchase services offered to you by CGL and
what changes do you expect?
........................................................................................................................................
Rate CG alternator as per the fulfilment your expectations?
Very good Good Average Poor
11. Are you satisfied with Response for product modification & development?
Yes No
Reason/Suggestions: ....................................................................
12. Are you satisfied with overall completion of Contracts by CG? Yes No
Reason/Suggestions: ...................................................................
13. How do you rate CG on initial pricing?
70
Very good Good Average Poor
14. Do You get post purchase service of alternator in time?
Yes No If no pl. comment
15. What kind of complaints do you often face with CGL alternators?
…......................................................................
16. Do you have any suggestions?
.................................................................................................................................
...
……………………………………………………………………………………
……………
71
CUSTOMER FEEDBACK FORM FOR DEALERS
Personal Details
Name of the Organization: .....................................
Contact Person: ......................................................
Designation: ….........................................................
Contact No. .................. Email Id. ...................
Address: ............................................................
.............................................................
1. Which brand of alternator are you using?
CG Stamford Trident LS KEC Others(................)
2. What KVA alternator are you using presently?
Up to 50 KVA 62.5 KVA TO 125 KVA 140 KVA to 250 KVA
72
275 KVA to 625 KVA 625 KVA AND ABOVE
3. ALTERNATORS PURCHASED IN THE LAST THREE YEARS
Make YEAR STAMFORD KEC CGL TRIDENT LS
Type
ALTERN
ATORS
2006
2007
2008
4.. Which company alternator you are coupled with?
………………………………………………………………………………………
5. FACTORS AFFECTING PURCHASE DECISION-
[(5=Very Important, 4=Important, 3=Neutral, 2= Not Important, 1= Not at all
Important)]
Brand Past Experience
Price Delivery
Product Features Availability
Service Network Dealer Network
Advertising Availability Of Information
Original/Existing Equipment Make Consultant’s Recommendation
73
6.. Are you satisfied with current company alternator?
Yes No. If no comment
7. From where you get the inquiries of alternators?
Telecom Hospitals Retail Govt. Others
8.. Have you any past experience with CGL in alternators ?
Yes No
If Yes then respond………………….
Good Bad Average
8. Why have you not purchased CGL alternators?
Quality Price Others
9. Any Suggestion and comments.
……………………………………………………………………………………
74
…………………………………………………………………………………….
LIST OF MAJOR OEM’S
1) Greaves Cotton
2) Veena Industries Pvt. Ltd.
3) Tafe Motors(Eicher)
4) Ashok Leyland
5) Mahindra
6) Kala Gensets
7) KEC
8) Cummins Diesel Sales & service Ltd/ Newage Electrical.
9) Shree Diesel Services
10) Accurate Power Systems
11) Aryan Diesel Tech. Pvt. Ltd.
12) Avish Aviation equipment Pvt. Ltd.
13) Ador Welding Ltd.
14) Gmmco Ltd.
15) Chetan Engineers
75
76