project report of sandeep

8/3/2019 Project Report of Sandeep

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Godrej & Boyce Mfg. Co. Ltd. Page 1

SUMM ER TRAI NI NG REPORT

(Submitted in partial fulfillment of the requirement for the award of

the degree of Master of Business Administration)

ON

ANALYSIS OF COMPETITION&CONSUMER BEHAVIOUR

IN

Submitted to: Submitted by:

Dr. BIMAL ANJUM SANDEEP SOOD

MBA-IIIRD Sem

ROLL NO-9945

RIMT- Institute of Engineering and Technology

Mandi Gobindgarh(Affiliated to Punjab Technical University, Jalandhar)


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ACKNOWLEDGEMENT

A summer project is a golden opportunity for learning and self

development. I consider myself very lucky and honored to have so many

wonderful people lead me through in completion of this project.

I express my heart felt thanks to my HEAD OF DEPARTMENT (HOD)

Dr. BIMAL ANJUM and who have given me his valuable time and constant

encouragement through his endeavor and helped me in completing my

project. It was my privilege to do my project under his expert guidance.

I am extremely grateful to Mr. Hemant Bhalla and all the staff members of

marketing department ofGodrej &Boyce Pvt.ltd for their invaluable help and

Sguidance throughout the duration of the project .The amount of learning that

has taken place in me because of working under them has been phenomenal. As

an upshot I have been able to deliver my best to the project.

SANDEEP SOOD


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GODREJ GROUP PROFILE

Started in 1897 as locks manufacturing company, the Godrej Group is today one of the most

accomplished and diversified business houses in India. Godrej's success has been driven by the

company's commitment to delivering innovation and excellence. Through the consistent

application of this commitment and a century of ethical business conduct, Godrej has earned an

unparalleled reputation for trust and reliability.

In 1930, Godrej became the first company in the

world to develop the technology to manufacture soap with vegetable oils; that spirit of

innovation has continued throughout the organization's history. Today Godrej is delivering

consumers exciting innovations across a spectrum of businesses. The company's pursuit of

excellence is equally well established and enduring. In the 1944 Mumbai docks blast, Godrej

safes were the only security equipment whose contents were unharmed; an equal level of product

quality continues to be expected from every product bearing the Godrej brand name . Godrej

management understands that the company's greatest asset is the trust and faith that consumers

have reposed in it, and recognizes that the company must continue to earn this trust. This

translates to the organization delivering outstanding quality and value in everything it does.

Godrej's ethical and visionary practices have allowed the company to successfully expand into a

number of businesses.

Today Godrej is a leading manufacturer of goods and provider of services

in a multitude of categories: home appliances, consumer durables, consumer products, industrial

products, and Agro products to name a few. A recent estimate suggested that 350 million people

across India use Godrej products. The group has more recently entered the real estate and

information technology sectors, and management views these as avenues for enormous growth.

The Godrej Group stands in a strong position today. With annual sales in excess of $1 billion, a

workforce of approximately 20,000 and a strong diversified portfolio, Godrej has proven its

ability to deliver strong financial performance.


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Godrej, with large customer database, increased their investment in production and

manufacturing capacities in all across the country. They also widened their distribution channels.

Godrej brand name was its biggest strength. Most of the revenues in the appliance business were

from refrigerators sales. Even after huge competition from other companies Godrej is the only

company who manufacture small door refrigerators.

The company is highly diversified in nature, and the motive of diversification was infact a

necessary expression of a broader perspective. Godrej has evolved many lines of business, taking

timely clues from the changing needs of the customers. With the growth of commercial activity,

the company saw the need for a wide variety of products, e.g. locks, office equipment,

typewriters, electronic business equipment, refrigerators, manufacturing of welded steel tubes,

furniture, architectural fabrications, manufacturing of machine tools, manufacturing of fork lifttrucks, manufacturing of oil based chemicals, Godrej soaps, beauty care products, manufacturing

of spray-dried synthetic detergent powder, animal feeds, agro products, edible oils, oil seeds and

oil cakes. It is a matter of pride for Godrej that all its lines of diversification have been based on

ideas developed in-house.

Products of Godrej have become adventurous globetrotters and are exported to a number of

highly competitive markets abroad. Together they earn more than Rs. 200 million in foreign

exchange from Japan, UK, Germany, Poland, Hungry, Switzerland, Denmark, Hongkong,

Thailand, Africa and the Gulf countries. The company forged joint ventures with five

transnational companies in the last five years: the personal-care products major Procter and

Gamble (P&G) of the US, the diversified giant General Electric of the US, the Pilsbury division

of the foods major Grandmet, the consumer products major Sara Lee, and the photo services

major Photo Me. The other major alliances include Godrej KIS, Fishers, and Geometric software

services. So far as the geography of the company is concerned, besides Indian base, it has Godrej

Malaysia and Godrej Singapore also.


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Consumer electronics milestones

1958 -1st Indian Company to manufacture Refrigerators.

1987 - Pioneered PUF (Polyurethane Foam) Technology in India.

1989 - Introduces India's first and only 100% CFC, HCFC, HFC free refrigerators

1989 - First company to sell 10 million appliances

1995 - Obtains ISO 9001 Certification

1996 - Launches Washing Machines by commissioning a new manufacturing set-up at Shirwal -

State-of-art Manufacturing Plant starts operation at Mohali.

2000 - First Durable Company in India to launch Branded Customer Service - SMARTCARE

2001 - Launches Pentacool Refrigerators with Revolutionary Five Sides Cooling.

2002 - 1st and only Company in India to make its Entire Refrigerator Range Green (100%

CFC, HCFC & HFC free).

2004 - Godrej Refrigerator awarded the Super Brand Status. Declared No. 1 in Business world

Consumer Delight Survey.

2005 - 1st Company in India to introduce Steam Microwave Oven.

2006 - Launches Eon Refrigerators with Cool Shower Technology .

2007 - Godrej Refrigerators win Trusted Brand Gold award for the second consecutive year

from Readers Digest consumer survey

VISION:

Godrej is dedicated to deliver superior stakeholder value by providing solutions to existing and

emerging consumer needs in the household and personal care business. We will achieve this

through enduring trust and relentless innovation deliver with passion and entrepreneurial spirit


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MISSION:

Godrejs mission is to operate in existing and new businesses which capitalize on the Godrej

Brand and our corporate image of reliability and integrity. Our objective is to delight ourcustomer both in India and abroad.

We shall achieve this objective through continuous improvement in quality, cost and customer

service. We shall strive for excellence by nurturing, developing and empowering our employees

and suppliers.

VALUES:

Commitment to quality Customer orientation Dedication and commitment Discipline Honesty & Integrity Learning organization Openness and transparency Concern for people


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GODREJ GROUP COMPANIES


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The major Companies in the Group include:

Godrej & Boyce Manufacturing Co. Ltd was established at Lalbaug, Mumbai. This was the

holding company of the Godrej Group. On 3rd March, 1932, it was incorporated with limited

liability. Even though Boyce was a business partner for a limited period only, his name was

retained for legal purposes. The Godrej Name displaced well established foreign brands from the

Indian market. The name 'Godrej' engraved into the shiny metal of the Godrej Locks came to be

known as a symbol of self reliance, trust-worthiness, assertiveness and progressiveness for a new

generation of Indians. Godrej & Boyce Mfg. Co. Ltd. Appliance Division is in the business of

manufacturing and or marketing Refrigerators, Washing Machines, Air Conditioners, DVD

Players and Microwave Ovens. A leading manufacturer of office and home Equipment including

appliances, furniture, locks, security equipment, storage solutions and Industrial equipment

Godrej Industries Ltd. A leading manufacturer of oleo chemicals that are used in more than

two dozen industries. The Company also has a presence in the foods business.

Godrej Agro vet Ltd. the market leader in animal feeds and innovative agri products in India.

The Company also has a presence in the branded poultry, rural retailing and oil palm sectors.

Godrej International Ltd. engaged in international trading.

Godrej Sara Lee Ltd. a joint venture with Sara Lee Corporation, USA and a leading

Manufacturer of household insecticides.

Geometric Ltd. a specialist in Product Lifecycle management software solutions for the

Mechanical design, manufacture and industrial markets.

Godrej Properties Ltd. - a leading developer of residential and commercial premises.

Godrej Hershey Ltd. markets juices, fruit drinks, soya milk based drinks, edible oil and

Packaged tea. In FY 2006, GBFL has acquired 100 percent stake in Nutrine Confectionery


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Company Pvt. Ltd. (Nutrine). In April 2007, the company entered into a joint venture with the

Hershey Company, North Americas leading chocolate and confectionery manufacturer, to

Manufacture and distributes confectionery, snacks and beverages across India.

FINANCIAL POSITION

The Turnover of Godrej & Boyce Mfg. Co. Ltd. for the financial years 2006-2007, 2007-2008

and 2008-2009 was as under:

Financial Year Turnover(Rs)

2006-2007 28,430,928,000

2007-2008 35,713,628,000

2008-2009 41,913,170,000

GODREJ APPLIANCES

Godrej Appliances, a part of Godrej & Boyce Mfg Co contributes almost one-third to thecompanys turnover. The division has two manufacturing facilities located at Mohali in Punjaband Shirwali in Pune.

In 1958, Godrej Appliances makes the very first refrigerator in India. In present, Eon is bringingcustomers cool new features to meet todays needs.

Godrej addiction to innovation is an old story. They launched PUF (polyurethane foam)

technology way back in the 80s. Created 100% CFC free fridges much before green got

fashionable. Godrej during these years had added Washing Machines, Air Conditioners,

Microwave Ovens, DVD Players and Televisions to its product portfolio.


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Godrej pioneered the refrigerator industry in India in 1958 in fact, it was the first Indiancompany to manufacture refrigerators. Over the next few decades, the company garnered a lion'sshare of the market on the back of its demonstrable reliability and performance.

Supported by a philosophy of innovation, Godrej launched refrigerators with Poly Urethane

Foam (PUF) in 1989, which went on to become an industry benchmark. Market expansion andcompetition from foreign brands in the 1990s only helped to invigorate it and once again broughtto the fore its pioneering spirit. Godrej Refrigerators met these challenges with its own productdevelopment. In 1996, it unveiled the first-of-its kind refrigerator model in India, the 260-litredeep door refrigerator; it followed this in 1998 with the roll out of a 400-litre refrigerator in thefrost-free range. This was, at the time, the largest refrigerator ever to be manufactured inIndia.Godrej raised the bar yet again in 2001 with the launch of the all-new Pentacool range.With its 5-side cooling, these refrigerators were generations ahead of several brands intechnology.

The spate of innovations continued with the launch of Godrej Eon in 2006 once again setting

new benchmarks in the cooling space. Having more than held its own against global competitionthe company is today, set to accelerate its growth by catering to the needs of the young Indianswith its promise of brighter living. It is basing its success on the strength of the fact that no oneknows the Indian consumer better than Godrej and no one can, therefore, make products thattruly touch their hearts and souls.

With more than 1200 major distributors & dealers, 6000 retail outlets, and 1200 service centers& franchisees across the country, make Godrej Appliances distribution & customer servicenetwork the strongest, largest, and most reliable in India. Little wonder then, that over 35% ofthe Indian population is owners of Godrej products and part of our family.

Godrej Appliances is eyeing a turnover of Rs 2,400 crore in 2010-11, almost 40% growth over

last fiscal. After its foray into the consumer electronics space, the white goods manufacturer is

planning to enter the cooking appliances market in India and give its water purification business

a big push.

Godrej is voted as the Most Trusted Brand, Gold award (Readers Digest consumer survey) 4

years in a row by our consumers. And earned the CNBC Consumer Awaaz Award, 3 years in a

row. Eon, in the Consumer World Awards, was chosen as Mera Brand of the year, 2008. And in

the same year Urjavaran Foundation handed over the Empower India Award, towards energy

efficiency to Godrej Appliances.


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Godrej Appliances has tagline- Advanced Appliances To Brighten Your Life

The Product Mix of appliances consists of:-

1. Refrigerators 3. Air-Conditioners2. Microwave Oven 4.Washing Machine

REFRIGRETORS

Godrej has 2 ranges of Refrigerators:-Frost Free and Direct cool

A. Frost Free:It comes in 2 models:EON:-Comes in capacity range of 231,250,271,283,294,305,330 & 343LPENTACOOL: Comes in capacity range of 197L

B. Direct Cool: It comes in following models:EDGE: Comes in capacity range of 251,221 & 183 LPENTACOOL V5/V2: Comes in capacity range of 204 & 181LPENTACOOL: Comes in capacity range of 181L

AXIS: Comes in capacity range of 181LNEO: Comes in capacity range of 173L.No 1: Comes in capacity range of 169LCOLD GOLD DELUXE: Comes in capacity range of 303LGDC110 S: Comes in capacity range of 99L

Some of the main features of Godrej Refrigerator are:

Cool Shower Technology (*patent applied)

A first in the world, Godrej Eons Cool Shower Technology comprises of shelves within built airvents. Placed directly above the food, these vents ensure superior cooling.

ZOP Technology 10 Year Rust Free Warranty (show icon)ZOP Technology uses the process of galvanization for preventing rust. Combined with the paintcoating, this gives double protection against rust formation ensuring long life.

100% Green

Godrej is the only company in India and one of the few companies in the world that meets theultimate global requirement on environment- friendliness. Both the insulation and the refrigerant


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is 100% CFC, HCFC and HFC Free. This results in Zero Global Warming and Zero OzoneDepletion.

Convection Control TechnologyA revolutionary cooling technology that allows superior air circulation even when the

refrigerator is completely stacked - Special control flaps fitted on air ducts can be regulated toprovide greater air throw on the desired shelves thereby ensuring superior cooling.(patentapplied)

Freeze Express for fastest ice makingA first of its kind, special step design freezer that delivers faster cooling than any otherrefrigerator in its class. The step design maintains frozen food temperature at -19C compared to- 16 C in a normal freezer, thereby preserving them longer(patent applied)

Some Facts about Godrej Refrigerators:

National Readership Survey (NRS) data shows that every third household in India owns aGodrej refrigerator No other refrigerator company in India, other than Godrej, manufactures refrigerators that

are 100% CFC, HFC and HCFC free.

Godrej introduced colored refrigerators in the country. It was also the first company tolaunch designer refrigerators draped with vinyl sheets that could be changed.

Godrej was the first consumer durable company to introduce branded service care underthe Godrej Smart Care brand

AIR CONDITIONERS

Godrej ACs come in following models:

SPLIT AC: Mirror Star Series, Pearl Series, and Ivory Series, Silver line Series, Lunar Series,and Champagne Series.

WINDOW AC: Glacia Series, Helix Series, GWC 19G3 WHH

Some of the main features of Godrej ACs are:

Silver Ion FilterThe Silver Ion Filter kills bacteria in the air and controls the growth of microbes, such asbacteria, viruses, fungi, and spores, by destroying their inner configuration and absorbing thecell's elements.


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Blue Fin TechnologyOur range of window Air Conditioners are equipped with the unique Anti Rust Blue Fins. Thistechnology protects the aluminum fins in the heat exchangers from corrosion. And you get moredurability, improved efficiency & higher energy savings.

Active Carbon DeodorizerThe Active Carbon Deodoriser eliminates odours such as ammonia (NH3), acts as perfectdeodoriser and deactivates harmful chemical gases such as formaldehyde (NCHO).

WASHING MACHINES

These can be of 2 types: Semi Automatic & Fully Automatic (Front loading or Top Loading)

Some of the main features of Godrej Washing Machines are:

DAC+

TechnologyDAC+ (Dynamic Aqua- Power Control) Technology allows the machine to adjust to water andpower cuts automatically.

Force 4 TechnologyUnlike most washing machines which offer a two-way wash action, Godrejs revolutionaryForce 4 Technology provides a four-way action against dirt.

HexaScrubHexaScrub is a unique combination of a powerful pulsator and six micro scrubbers. This meanssix points inside the machine where the cleaning action is taking place simultaneously.

Aqua MinimizerWith the unique Aqua-Minimizer the Godrej Eon Front Loading range reduces the consumptionof water used. So now, you can wash more and save more.

MICROWAVE OVENS

Godrej has following models of Microwave Ovens:

Solo: It comes in 18 L.

Convection: It comes in 20, 25 & 30 L.Grill & Combination: It comes in 17 & 20 L.Steam: It comes in 23 L


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Smart Care is the name of Godrej Consumer Service division of Godrej Appliances. Keeping thedrive towards complete customer satisfaction on track, Godrej is doing constant investments andinnovations in service infrastructure. The Service Van facility, for example: apart from Godrej trained technicians, 30 exclusive, fully equipped service vans, respond instantly to customer callsin select centers.

The Godrej Smart Care Centre and the Smart Service Scheme are other firsts-of-their-kind

innovations. Currently in Mumbai & Chennai, Intelligent Call Care is a computerized, toll freetele-service that functions 24 hours a day, 7 days a week answering calls, queries and servicerequests for over 1000 callers every day. The unique Smart Service Scheme instituted by Godrej,is designed to ensure reliable, cost effective service for your appliances.


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Organizational Structure

ASM ASM ASM

ASM ASM ASM

ASM ASM ASM

George Menzes

(COO)

Kamal Nandi

(VP-Sales & Marketing)

Mohali

Branch

Ramandeep Singh Trehan

(GM-Sales)

19

Branches

Atin

(RSM-Haryana)

Bikram Jit Singh

(RSM-Punjab)

Vijayesh Rana

(RSM JK,,HP,Chandigarh)

Ramesh Chembath

Head-Marketing

Hemant Bhalla

(AM-Marketing)


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INTRODUCTION

Objective of the Project:

Analyzing marketing activities, leveraging on marketing insights and opportunities in consumer

durable industry.

Analyzing the competition in consumer durable industry. Analyze the distribution network in Chandigarh, Mohali & Panchkula by

doing market mapping.

Analyze the consumer behavior for Godrej refrigerators. Conducting & participating in marketing events for promoting Godrej

Microwave Ovens.

Scope of the study:

By analyzing the marketing activities in consumer durable industry we can take timely & proper

decisions against the competition and can understand our loopholes and step forward to increase

our market share.

By mapping market for appliance dealers & distributors, we can address thereach & visibility issues related to Godrej Appliances in near Chandigarh

region.

By analyzing the consumer behavior through survey we are able to get theanswers for the following questions: How much the customer is aware about

Godrej product? Which brand they are using? Reason for preference of

particular Brand?

By conducting & participating in events for promoting Microwave ovens weare doing ground work for creating consumer base which is companys

strategy to increase its sale of Microwave Ovens during peak season i.e.

Diwali.


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Limitations of the study:

Non responsive behavior of the customers and dealers. As it is a door to door, shop to shop survey so it is very time consuming. Survey is restricted to only near Chandigarh region so results can be region

specific and may not apply to other parts of country.

Methodology:

Understanding the companys past and current appliance business in detailthrough various secondary sources such as internet, magazines, news papers

etc.

Collecting daily newspaper Ads of all players for proper media planning. Participated in events to directly know the consumer behavior and doing

promotion for Godrej appliances products.

Direct surveying the customers to know their behavior towards Godrejappliances.


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COMPETITION ANALYSIS

An Overview of Competition

In the world of inventions and innovations where business lies in a customer, who is dynamic

and his beliefs, attitude and his satisfaction level, It is needless to affirm that marketing is a new

way of thinking about how companies and other organization can develop beneficial change with

target customer who is always inclined in seeking to satisfy some needs and wants. Hence the

problem is how we can find more customers for what services we provide, how the company can

live up to their expectations and understand the different aspects of customers views.

With the opening of economy competition from all the borders came to our country with

wide range of products. The Koreans - Samsung and LG soon became way ahead in both salesand brand awareness parameters compared to Godrej, but Godrej remained inflexible with its

idea of consolidating the market in refrigerators only. It failed to notice the threat coming from

the competitors in a new form. This new form was in the way of entering of the competitors in

new appliance products such as Air conditioners, DVDs, microwaves, flat TV markets etc.

LG, who entered Indian market in 1997, was giving a tough competition to Godrej. In

the late 1990s LG did not even give 45-60 days credit period to its dealers instead it asked its

dealers to pay in advance which actually pushed dealers to make more sales. Company also sentvans to all across the country for their brand awareness which ran 5000 km every month. By

2001 LG became the Indias fastest growing home appliance company in the country. In 2003 it

emerged as a market leader in home appliances. Innovative and customer friendly products along

with competitive pricing and vast distribution network enabled LG to become the market leader.

Samsungs, who entered in Indian market in 1995, wide product range was one of the

reasons for its success in the Indian market. To increase its brand awareness among the Indian

consumers Samsung launched corporate advertisements for highlighting its technological

superior products. Samsung had 18 state level distribution office and direct dealer interface

which helped the company to get quick feedback from the dealers and enabled them to launch

products according to consumers needs. While at that time Godrejs product line in appliances

were not that wide.


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All these foreign players who entered the Indian market with wide range of products were

giving tough competition to Godrej. ACs at that time was considered as a luxurious product and

was appealing to higher middle class and elite class customers. They could easily skim the

market with their products, while Godrej was eyeing only on the refrigerator segment.

After-sales service becoming key as a competitive edge

All the leading players were ramping up their after-sales services to enhance the consumer

experience and ensure loyalty. LG Electronics India Ltd came up with a concept of 211 to

tackle its after-sales service issues. In late 90s Samsung India Electronics Ltd had an e-based

service helpline. Even leading retailers such as Viveks Ltd (kitchen specialist multiple retailer),

and others were aggressively looking into improving the after-sales service of their private

domestic appliance brands. Companies have also made significant investments in information

technology (IT) related infrastructure and staff training to ensure high quality after-sales service.

Companies were also integrating their service network to have wide, pan-national coverage.

Multinationals dominate, but large local players also strong contenders

LG Electronics India Ltd, Samsung India Electronics Ltd and Whirlpool of India Ltd dominate

most of the categories in large appliances, but erstwhile Indian majors such as Videocon

Appliances Ltd and Godrej Appliances Ltd are fighting back aggressively for market shares.

Both these Indian players have invested in technology up-grades, revitalized distribution and areoffering more affordable products. Videocon Appliances Ltd underwent large-scale re-

organization in order to increase market share.

Aesthetics and technology were the new mantra

Appliances which were technologically-advanced as well as aesthetically well designed are

much preferred by consumers in the Indian domestic electrical appliances market, thus

companies were trying to offer products with a mix of technology and design to appeal to

consumers.


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GODREJ: Market leader to market challenger

Godrej was able to enjoy its royal status for nearly 4 decades. The entry barriers in the appliance

industry were high that no business entity dared to challenge Godrej at that time. A lot of

investment was needed to enter into this industry. Even if money was there then the problem of

licensing was high because lot of paper work was needed to enter into this industry. Also there

was no competition from foreign countries since they were not allowed to do business in India

due to the protectionist policy of the govt. So Godrej basically was living in a paradise at that

time where there was no internal or external threat to its stability. But when liberalization

happened, everything just changed. There were suddenly many challengers to this empire. LG,

Samsung, whirlpool, Electrolux etc came and snatched the market share from Godrej in the

appliance segment by introducing ACs, Microwaves, Dish Washers etc in the market. Some of

the reasons for this sudden shift of the market equations were:

New Technology:-With the entry of new players in the market, there came newtechnology also. Due to the availability of superior technology with the foreign players

they were able to differentiate themselves from the existing players like Godrej in a

much better way. That really helped them to take a long leap forward.

Pricing:-The other advantage with these foreign players was that they werecompetitively priced. This was because of the reason that they imported the products

from abroad. So in a way their infrastructural investment was very less in this segment

which helped them to lower their prices and earn more margins along with it. But Godrej

on the other was not able to adjust with this change happening in the market at that time

thus losing its customer base.

Distribution Network:-Though Godrej enjoyed a strong distribution as well asdealer network in the country but after liberalization they started losing it. The main

reason for it was new benefits offered by the competitors to the existing dealers of

Godrej. This led to the breaking of its strong distribution network.


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Promotion:-When the foreign competitors entered into the Indian market they knewthat they are not well known brands in India, so they made a special effort to encrypt

themselves into the minds of Indian customers first. This they achieved through

corporate advertisement, better designed products and with other such initiatives. Godrej

which was a known brand all over India at that time suddenly seemed to be an old

fashioned company as they did not introduce high end products like ACs in the market.

The kind of advertising foreign companies did forced the consumers more demanding.

Flexibility: - Competitors were very flexible in their approach as they were morefocused towards attracting customers attention with large product range than Godrej.

Their innovative ideas enabled them to grab the market away from the Godrej and started

leading the market.

Strategic foray into new market

1997 - Launches Air Conditioners - Obtains ISO 14001 certification.

Foraying into the Air Conditioner market was one of the most interesting decision that company

took as it went for shopping across the globe without increasing the production capacity.

Entering into this segment was the real demand of the business at that time. Though Godrej

entered into this segment quite late but they could able to get satisfactory market share in this

segment with its very strength, brand name. Various other reasons for Godrej to enter into this

segment are:

To fight back with the competitors and get back its lost position in appliance market.

To increase its product line without increasing its production capacities as they couldeasily import the new products from different country.

To revamp its brand image so that they can easily appeal to youthful mindset. To increase its market share and hence revenues in appliance industry.


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Not only Godrej entered into AC market but also planned to enter into microwave ovens and

DVD players to compete with its competitors. By entering into AC segment i.e. high end product

segment Godrej established themselves as a leading market player by offering wider product

range and deeper product line not just restricting them to its identifier product i.e. refrigerator.

The launch of the eon range was backed by an aggressive 360 degree advertising campaign

consisting of TV, Print, Radio and OOH, which was supported with many BTL initiatives to

create awareness about the 5-star technology, such as creating Energy Zones at major consumer

durable outlets. These centers aided consumers to understand the concept and benefits of the of 5

Star Energy rating given by the Bureau of Energy Efficiency (BEE) and help them to choose

right AC for their need.

JWT agency repositioned Godrej as a modern and technology-savvy brand to target the youth

end of the market. Preity Zinta was chosen as the Brand Ambassador for its new series of

products. Innovation has been a pedigree of Godrej. It has pioneered in various innovations like

5-Star Energy refrigerators, Five Side Cooling refrigerators, 100% Green refrigerators and Cool

Shower AC. Through repositioning it tried to communicate the innovation aspect of its products

to consumers. At Godrej, it is always curious to know, What is most relevant for the consumers

and that is where Designed by curiosity comes in.

Godrej was considered as a reliable and trustworthy brand but it was not the brand a youth could

connect with. Godrej realized this fact and to appeal to the youthful mindset they rebranded

themselves. Godrejs new logo and new marketing slogan was its first brand makeover since it

was founded in 1897 to state its consumer positioning. Its new logo BRIGHTER LIVING

implies a modern approach and feel. It gave livelier look to the company. They also launched

huge campaign to advertise its new logo and slogan reflecting the lifestyle of their consumers.

Company planned spent almost 40-50 crores on advertising campaign.


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communication intended to persuade an audience to purchase or take some action upon products,

ideas, or services. It includes the name of a product or service and how that product or service

could benefit the consumer, to persuade a target market to purchase or to consume that particularbrand. Advertising may be placed by an advertising agency on behalf of a company or other

organization. Advertising is a paid form of presentation of ideas and schemes by the company.

To increase the market share and improve its brand retention in consumers mind, advertisement

is very important way of communication.

During my training period I had been assigned the task to keep daily track on news paper

advertisements of Godrej as well as its competitors. By doing this we were able to find out what

competitors are offering to customers and my task was to report the same to my mentor. Eye

catchy headings and valuable schemes can actually pay good contribution in attracting the

customers attention as well as to appeal the youthful mindset.

We analyzed how the appliance industry has been promoting their products through news paper

advertisements in the month of June and till 15 July 2010.


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DISTRIBUTION NETWORK

Channel Design and Structure

At Godrej Appliances Chandigarh Branch the total network is that of 340 Dealers across the area

that comes under Chandigarh. Out of this there are 3 SSD Distributors and 8 SSD Dealers along

with 13 SSD Retailers.

A retailer is the one who is purchasing material from distributor. The rest is the regular tradenetwork which includes distributor, dealer and retailers

Managing Channel

Godrej has Effective Channel Management training course which builds a coherentframework uniting marketing and sales efforts in a collaborative learning environment. Theprogram addresses the needs of consumer goods and services of the company selling throughwholesalers and retailers.

The channel map assists management in identifying the changing channel roles and therebyalerts them to areas of channel conflict. It also provides a vehicle for discussing with channel

PLANT

PLANT WARE HOUSE

CF CF CF CFCF

Distributor Distributor Distributor Distributor Distributor

Retailer

(Sales & Service)

CUSTOMER


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partners new roles and cooperative activities that ultimately provide value to the customer andeconomic opportunity for all channel participants.

Few of the practices followed in Godrej are

Alliance Orientation

Monthly sales targets are given to the channel partners as per potential of their area andcash incentives are given on % achievement of slabs.

Whenever new products are launched, a function is organized wherein all the tradepartners are invited along with sales team of Branch and HO team. In the function salespromotional schemes are also announced.

On discontinuation of any product, prior information is given to channel partners anddiscounts are offered to liquidate them.

All the Institutional orders are routed through the dealers of the said area to give properafter sales service

Whenever new channel members join Godrej family he is been given proper inductionand training and told about the policies of the Company at branch level.

Product training is given to Channel sales team by Godrej sales and service team whereall the features and benefit of products are informed so that sales team can sell the rightproduct to the customers.

Annual sales targets are set as per territory potential and keeping in mind the growth as amajor parameter to increase the market share with involvement of the channel partner.

Customer Satisfaction/Goodwill

For Consumer awareness, road shows are being organized time to time in potentialareas. Godrej also takes part in trade exhibitions like Coolex where all the products areshowcased for mass awareness to customers.

Times to time sales promotional schemes are launched for customers like free Juicermixer grinder, wrist watch to boost the dealer sales.


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Advertisements with the dealer names are released by the Company in the leadingnewspapers for awareness and promotion of products.

Godrej provides credit facilities to selected dealers / distributors seeing their creditworthiness and long association which enables the dealers to get better margins.

Support Oriented Practices

Every month Godrej conducts sales meeting to their North zone head quarter based atDelhi. Each area sales manager presents sales figures, sales forecast and channelmember complaints, suggestions etc.

Godrej branch office provides market information of all the competitors to their tradepartners on monthly basis regarding competitors sale and pricing or any marketing

activity done by the competitors.

Godrej territory sales-in-charge assures that dealer earns minimum 18 to 20 % Returnon their Investment

Systems Oriented Practices

Godrej has separate Supply chain department both at Head office and at branchwhich enables dealers to get the material on time and major stocking is done by the

company which has effective ERP system which works on replenishment supplysystem

Godrej has a network having 138 authorized service providers to provide after-sales-service to the customers which enhances customer satisfaction. Company getsrepeated business from the existing customers.


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MARKET MAPPING

Objective of Survey

To study the distribution network of appliances in Chandigarh, Mohali & Panchkula. To find out the reach of Godrej in the market i.e. Market presence. To do the visibility study to find out how dealers display the products & of which brand. To find out which brand dealers favor and reason for their preference.

General Information about Survey

Total Sample size 23 Type of outlet

Area of surveyo Chandigarho Mohalio Panchkula

Type of Interview o Random Door to Door

Chain Store 2 8.69%

Direct Dealership 10 43.47%

Retail outlet 9 39.13%Distributor 2 8.69%


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Survey Findings

Survey findings were analyzed using Excel and following observations were made from the data

collected:

Dealing in BrandGodrej Samsung LG Whirlpool IFB

Refrigerator 17.39% 43.47% 30.43% 17.39% 0

Washing Machine 17.39% 43.47% 26.08% 17.39% 0

Air Conditioner 13.04% 43.47% 26.08% 17.39% 17%

Microwave Ovens 8.69% 39.13% 26.08% 17.39% 17%

Product Display

Refrigerator

Air Conditioner

Washing Machine

Microwave Ovens

Based on product display information, manager can take better decisions regarding what

products are being promoted by dealers and consequently figure out what product type is in

demand and can accordingly push company products to the dealers.

DC FF

30.4% 69.6%

Window Split

41.5% 58.5%

SA FA

52.1% 47.9%

Solo Grill Convection

21.9% 30.3% 47.8%


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Reasons for Sales Excellence (Rank 1-5)Brand Name Sales Margin After Sales

ServiceISD Incentive Product Display

4.3 3.4 3.8 3.2 4.2

From the survey, we came to conclusion that Brand Name & Product Display are the main

reason behind sales of product at the dealers counter.

Effect of Modern Trade & Exclusive Brand ShopeesNegligible 39.1%

Low 13%

Moderate 30.4%

High 17.4%

Very High 0%

From the survey, it was clear that the effect of Modern trade centers like NEXT, Big Bazaar does

not have much effect on the sales at the dealers counter.

Recommendation

From the survey it was evident that LG, Samsung are the most preferred brand among dealers

and their visibility in the market is good.

Considering all of the above Godrej should focus on

Increasing Retail Presence. Increasing Product Display at dealers counter.Morever it can attach Special

incentive for displaying its product at the strategic prime locations at dealers shop.


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Survey Questionnaire

Name _____________________Market__________________ Group _________

___________________HOME APPLIANCES MARKET MAP____________________

Name of the outlet: ____________________________________________________________________

Address : ____________________________________________________________________

____________________________________________________________________

City: ____________________ Phone No. :_________________

Owners Name : _______________________________________________________________

Mobile No. : _______________________________________________________________

Type : Chain Store Direct Dealership Retail Outlet

Distributor [Product_____________ Outlets________________]

Distributor Name : ____________________________________________________,if any.

Dealing in Product & Brands [major Brands in order of Sales]

Refrigerator : 1)________________ 2) ________________ 3) __________________ Air conditioner : 1) ________________ 2) ________________ 3) __________________ Washing Machine: 1) ________________ 2) _________________ 3) _________________ Microwave Oven : 1) ________________ 2) ________________ 3) _________________


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Product Display [Number]

Refrigerator 1) Direct Cool [DC] ___________ 2) Frost Free [FF] ________________

Air conditioner 1) Window [WAC] ___________ 2) Split [SAC] _______________

Washing Machine 1) Semi Auto [SA] ___________ 2) Fully Auto [FA] ________________

Microwave Oven 1) Solo [SOL] ________ 2) Grill [GRL] _______ 3) Convection [CON] _______

Company ISD/ Canvassers

No Yes

Number ______ Company 1. ______________ 2. ______________ 3. __________________

Yearly Product Sales [Last year number]

Refrigerator 1) DC _________________ 2) FF _____________________

Airconditioner 1) Window _______________ 2) Split ____________________

Washing Machine 1) Semi Auto _______________ 2) Fully Auto __________________

Microwave Oven 1) Solo ___________ 2) Grill _____________ 3) Convection _____________

Most Preferred/Saleable Brand [on your counter]

Refrigerator ______________ Airconditioner ______________________

Washing Machine ______________ Microwave Oven _____________________

Reasons for Preference

Refrigerator _______________________________________________________________

Airconditioner ________________________________________________________________

Washing Machine_______________________________________________________________

Microwave Oven ________________________________________________________________


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Reasons for Sales Excellence at the counter

Marks out of 5 [1 is minimum and 5 is highest]

Brand Name 1 2 3 4 5

Sales Margin 1 2 3 4 5

After Sales Service 1 2 3 4 5

ISD Incentive 1 2 3 4 5

Product Display 1 2 3 4 5

What is the effect on your Product Sales of Modern Trade and Exclusive Brand Shopees?

Negligible Low Moderate High Very High


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CONSUMER BEHAVIOUR

Objective of Survey

To study the psychology of Godrej consumers that how they think about the GodrejRefrigerator products .And how they select Godrej products between different brandsavailable in the market.

To study how consumer family background, culture influence them to buy GodrejRefrigerator products.

To study the limitations in consumer knowledge about Godrej Refrigerator products. To Study how the Godrej product price motivate the customer in their buying decisions.

General Information about Survey

Total Sample size 180 Gender of Respondents

o Men 28.3%o Women 71.7%

Percentage of Users of Godrej Refrigeratoro Yes 46.6%o No 53.4%

Area of surveyo Chandigarho Mohalio Panchkula

Methodology Personal interview Type of Interview

o Random Door to Dooro Random Intercept in Local shopping Center


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Survey Findings

Survey findings were analyzed using Cross Tab Analysis feature of SPSS. Some of the

screenshots of the analysis are attached at the end.

Age Group Buying Behavior

Age % Distribution

Less than 20 years 2%

20-35 years 38%36-45 years 25%

More than 45 years 35%

Family Size

Family size % Distribution1-2 0%3-4 48.86%

5-6 37.5%> 6 13.62%

Qualification

Within the Respondents

Qualification % Distribution

Under Graduate 29.34%

Graduate 40.76%Post Graduate 23.36%

Doctorate 4.89%

Within Existing Godrej Customer

Qualification % Distribution

Under Graduate 22%Graduate 56%

Post Graduate 77%

Doctorate 33%

Only 22% of the Undergraduate degrees Respondents are using Godrej refrigerators.


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Value for Money

89% of the existing Godrej Refrigerator users consider the product as Value for Money.

Reasons to Buy

Reasons % Distribution

Price 26%

Brand 28%

Features 45%

Friends Recommendation 13%

Using Godrej Refrigerator Since

Years % Distribution

Less than 1 years 15%

Between 1 and 5 years 20%More than 5 years 65%

Distribution/Distance of retailer from Home

Distance of Retailer from Home % Distribution

More than 5 KM 45%

Less Than 5KM 55%

Customer Loyalty

Reasons for Repeat Business

65% of the existing customers are positive towards buying refrigerator again fromGodrej.

87.5% of the customers buying Godrej due to Price reasons are positively favoredtowards buying refrigerator again from Godrej.

66.6% of the customers buying Godrej due to Features are positively favoredtowards buying refrigerator again from Godrej

25% of the customers buying Godrej due to Brand Loyalty are positively favoredtowards buying refrigerator again from Godrej

Recommend to Others

45% of the existing customers are ready to recommend Godrej refrigerator toothers


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Other brand customer

Analysis before Purchase Decision

50% of the customers of other Brands analyzed Godrej Refrigerators beforemaking the purchasing decision on not buying Godrej

Recommendation

Distribution

55% of the existing customers dont have a Godrej retailer closer than5 Km fromhome, Godrej need to strengthen its retail network

Undergraduate

Only 22% of the undergraduate are customer of Godrej RefrigeratorsYoung Couples not buying

Small families are not buying GodrejLarge Families

Due to Larger models not present, 400L +, Larger families are not buying Godrej.Brand Loyalty

Only 25% of the existing customers buying due to Brand are planning to buyrefrigerators again from Godrej.

Considering all of the above Godrej should focus on

Retail Presence Brand Upper Class and Lower Class, right now only middle class is aware of Godrej

Refrigerator and market is dominated by LG and Samsung.

There is a need for another Descriptive Survey with wider Geographical area coverage to study

and analyze the issues and recommendation in details


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Survey Questionnaire

Name Of the Respondent

Address Tel. No.

Flat / House City

Int. Name Date

Gender Occupation

Q.1. Could you please tell me which age-group do you fall into?

Less than 20 years 1 20-35 years 2 36-46 years 3 More than 45 years 4

Q.2. Could you please tell me what is your Qualification?

Undergraduate 1 Post graduate 3 Others

Graduate 2 Doctorate 4

Q.3. Could you please tell me what is your Occupation?

Business 1 Government employee 2 Private sector employee 3

Others

Q.4. Could you please tell me which Income group do you fall into?

Less than 1 Lakh 1 3 Lakhs - 5 Lakhs 3 More than 8 Lakhs 5

1 Lakh - 3 Lakh 2 5 Lakhs 8 Lakhs 4

Q.5. Could you please tell me the number of members in your family?

1-2 1 3-4 2 5-6 3 6-7 4 More than 7 5


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Q.6. Could you please tell me, have you ever used Godrej refrigerator?

Yes 1 Continue No 2 Continue from QP2

Q.7. Could you please tell me, how did you come to know about Godrej refrigerator?

Print media (News paper, Magazine) 1 Internet 3 Friends 5

Television advertisement 2 Dealer/ distributor 4 Others

Q.8. Could you please tell me, do you think that Godrej Refrigerators are value for money?

Yes 1 No 2

Q.9. Could you please tell me, since how long have you been using Godrej refrigerator?

Less than 1 month 1 6 months 1 year 3 More than 5 years 5

1 month - 6 months 2 1year 5 years 4

Q.10. Could you please tell me,which one of the following factors influenced you to choose the Godrej

refrigerator?

Price 1 Income level 3 Friends advice 5

Prestige 2 Image 4 Features 6

Q.11. Could you please, rank the following characteristics of refrigerator, Rank 1 being the highest and

Rank 6 being the lowest.

Design

Price

Quality

Features

Brand name

After sales service


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Q.12. Could you please tell me, how far is the Godrej Show room from your house?

0 1 Km 1 1-3 Kms 2 3 5 Kms 3 Above 5 kms 4

Q.13. Could you please tell me, if you get an opportunity to buy a new Refrigerator, will you preferGodrej Refrigerator again?

Yes 1 No 2

Q.14. Could you please tell me, do you recommend Godrej Refrigerator to your friends and relative?

Yes 1 No 2

Q.15. Which other appliances of Godrej are you aware of?

Air-conditioners Microwaves

Washing Machines DVD Players

Q.16. How did you come to know about these products?

Newspaper Ads TV Ads

Display at Shop Seen at a Friends Place

Others

If coded No in Q.6, ask the following questions.

Q.1. Which other appliances of Godrej are you aware of?

Air-conditioners Microwaves

Washing Machines DVD Players

Q.2. How did you come to know about these products?

Newspaper Ads TV Ads

Display at Shop Seen at a Friends Place

Others


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Q.3. Could you please tell me, which brand of Refrigerator are you using?

LG 1 Videocon 3 Akai 5

Samsung 2 Whirlpool 4 Electrolux 6

Others

Q. 4 Did you get a chance to see the Godrej Appliances when you were Buying?

Yes 1 No 2

Q.5. Could you please tell me the reason for using this particular brand?

Design 1 Quality 2 Brand name 3

Price 4 Features 5 After sale service 6

Dealer Advice 7 Friends Advice 8 Offer/Scheme 9

Others

Q.6. Could you please share your experience with the refrigerator?

Excellent 1 Good 2

Average 3 Poor 4

Q.7. Could you please tell me,will you like to buy a Godrej appliance in future?

Yes 1 No 2

Q.8. Do you like Godrej Appliances Advertisements?

Excellent 1 Good 2

Average 3 Poor 4


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MARKETING ACTIVITIES

BTL Activities

Advertising is a form of communication intended to persuade an audience (viewers, readers orlisteners) to purchase or take some action upon products, ideals, or services. It includes the nameof a product or service and how that product or service could benefit the consumer, to persuade atarget market to purchase or to consume that particular brand. These brands are usually paid foror identified through sponsors and viewed via various media. Mass media can be defined as anymedia meant to reach a mass amount of people. Several types of mass media are television,internet, radio, news programs, and published pictures and articles. Commercial advertisers oftenseek to generate increased consumption of their products or services through branding, whichinvolves the repetition of an image or product name in an effort to associate related qualities withthe brand in the minds of consumers. Advertising may be placed by an advertising agency onbehalf of a company or other organization.

The ATL (Above the Line) promotions are tailored for a mass audience; BTL (Below the Line)promotions are targeted at individuals according to their needs or preferences. While ATLpromotions can establish brand identity, BTL can actually lead to a sale. ATL promotions arealso difficult to measure well, while BTL promotions are highly measurable, giving marketersvaluable insights into their return-on-investment. Promotional activities carried out through massmedia, such as television, radio and newspaper, are classed as "above the line" promotion."Below the line" promotion refers to forms of non-media communication or advertising, and hasbecome increasingly important in the communications mix of many companies, not only thoseinvolved in fast moving consumer goods, but also for industrial goods.

ATL is a type of advertising through media such as television, cinema, radio, print, web banners

and web search engines to promote brands. This type of communication is conventional in nature

and is considered impersonal to customers. It differs from BTL advertising, which uses

unconventional brand-building strategies, such as direct mail and printed media (and usually

involves no motion graphics). It is much more effective when the target group is very large and

difficult to define. It is efficient and cost-effective for targeting a limited and specific group. It

uses less conventional methods than the usual ATL channels of advertising, typically focusing on

direct means of communication, most commonly direct mail and e-mail, often using highly

targeted lists of names to maximize response rates

BTL is a common technique used for "touch and feel" products (consumer items where thecustomer will rely on immediate information rather than previously researched items). BTLtechniques ensure recall of the brand while at the same time highlighting the features of theproduct.


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Microwave promotion activity-SOCIETY DHAMAKA

Objective of Event

To promote Godrej Microwave Ovens. To organize live cookery show to educate customer about proper use of Microwave

Oven.

To push for sale of Microwave Oven by giving discount (15-20%) and free gifts.

By giving free cookery classes, positioning the Godrej microwave in the mind of thecustomer.

.

General Information about Event

Event Name SOCIETY DHAMAKA

Number of Societies 14

Area of operation Mohali & Chandigarh

Product Microwave Oven

For successful organization of the event, following people were involved in the activity

1) SALES MANAGER - Mr.Gaurav Tandon

2) DEALER/DISTRIBUTOR - M/s Surindra Visions, Sec 35, Chandigarh

3) EVENT MANAGER - Mr. Saurav Mehan

4) PROMOTORS - Mr.Ashish Acharya & Mr.Hardeep Singh

5) CHEF -Mr. Amit Bansal

Pre-requisite for the Event:-

CANOPY PRODUCT FOR DISPLAY PRICE LIST/TAGS CATALOGS/BROUCHERS LEAD FORM GIFTS


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Event at a glance:-

The purpose of the whole event was to position Godrej Microwave Oven in the minds of the

customer by interacting and educating them about the various benefits that they can get by using

the same. For this purpose, a Chef was hired by Godrej to give live demo and educate customers

about how to prepare various dishes in Microwave Oven. Also, the customers were invited for

free cookery classes that were conducted in hotel SouthEnd in sector 34, Chandigarh on first and

last Wednesday of each month.

Further, the customers were asked to fill a Lead Form which helped Godrej to prepare a database

of customers .Also it helps the company to find out which type of Microwave Oven is preferred

by customers which helps company to prepare better strategy for selling Microwave Ovens.

Further, it helps to give a clear picture about what customers feel about the Godrej product and

its offer.


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LEAD FORM PRICE TAG

Godrej Appliances branch at Mohali utilizes 0.875% of its yearly sales on marketingactivities.

In Appliance industry, focus has shifted from ATL to BTL activities. IFB, Samsung have been promoting their Microwaves through BTL activities like Home

demos, Live Cooking Shows, Cooking Classes.

The following event was done by Godrej as ground work for increasing sale ofMicrowave Ovens during peak season i.e. around Diwali.

A total of 13 units of Microwave Ovens were sold on spot during events and many ofcustomers visited Godrej dealer either enquiring or for buying Microwave.


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The following analysis was done on the basis of Lead forms collected:

Number of lead forms: 97

Present Microwave:Solo 13.4%Grill 34%

Convection 26.8%

Dont have MWO 25.7%

Here, we can see that about 25 % of respondents are not using any type of Microwave and thus

they can be potential customers.

Interested in buying which Microwave:Solo 18.5%

Grill 19.5%Convection 41.2%

Not interested 20.6%

It is clear from data collected that people are more interested in buying Convection Microwaves

so Godrej should utilize this opportunity by pushing Convection MWO to dealers & distributors.

Customers find range of Godrej microwave:Excellent 25.7%

Very good 38.1%

Good 34.1%Average 20.6%Poor 0

We can interpret that most of the people rated range of Godrej Microwaves in the domain of

Good to Excellent, which means that people accept range of Godrej Microwaves.

Customers find special offer made by Godrej :Excellent 28.8%

Very good 29.9%Good 34%

Average 3%

Poor 2%

Most of the respondents rated the price discount and free cookery class good to about excellent,

giving direct indication that offer made during event were satisfactory.


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REFERENCES

Newspapers: Dainik Bhaskar, Tribune, Times of India, Hindustan Times, andPunjab Kesari.

Websites: www.godrej.com, www.godrejappliances.com.

Company guide: Mr. Hemant Bhalla (Associate Marketing manager Chandigarh.& Faridabad Branch)

Godrej Internal Company Magazine and Internal Manuals Book: Marketing Management by Philip Kotler.

project report of sandeep

Documents