CHAPTER - I

INTRODUCTION

1.1 Research Background:

The worldwide electric power industry provides a vital service essential to

modern life. It provides the nation with the most prevalent energy form known in history
—electricity.

This project consists of a detailed study which was undertaken at Havells

India Ltd on the company’s overall functioning. The project explains the principles and
practices of the organization.

Havells is an electrical and power distribution equipment manufacturer in

India. It owns some of the prestigious global brands. The main aim of Havells is to
provide best electrical & lighting solutions and to be a globally recognized firm. To
achieve this it concentrates more on building long term relationships with all our
associates, customers, partners, and employees.

The organization functions with various departments such as Marketing,

Finance, Personnel and Production. It maintains a cross-department interaction for
achieving the organizations effectiveness. The departments are driven by qualified and
experienced professionals backed by an efficient work force. It encourages employees
to be participative, innovative and creative and thus building a team spirit which helps
them to realize collective potential. The products of the company have a good
reputation in the market and hence the growth of the company is very much imminent.

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1.1.1 INDUSTRY PROFILE:

Prospects of the Indian Electric Industry:

Like every other industrial sector in India, the Indian Electrical Industry too
is slowly emerging from out of its "protective cover". For far too long has Indian Industry
remained shackled and consequently inward looking. Over the past fifty years there was
no exposure to global players and competition, with the result that the Industry grew up
in a sheltered environment, dependent on the Government for everything, from licenses
to protection to tariffs. Each one of these interventions was aimed at securing protection
for oneself and ensuring growth of one’s own organization at the cost of industry and
the nation at large. Lack of global competition encouraged a "cost plus" approach,
where every conceivable cost increase was passed on to the customer. There was thus
no motivation to reduce costs.

As per the recent survey, the global electrical & electronics market is worth
$1,038.8 billion, which is forecasted to grow to $ 1,216.8 billion at the end of the year
2008. If we talk of electrical & electronics production statistics, the industry accounted
for $1,025.8 billion in 2006, which is forcasted to reach $1,051.5 billion in future.

At the outset, it must be stated that the reduced domestic demand is at best a
temporary phenomenon. The power sector in India is bound to grow and this will
undoubtedly boost demand from the Utilities, quite apart from the industrial demand
which will continue to grow with increased industrial output. The poor financial health of
the SEBs is however a damper that cannot be wished away in the short term. This will
continue to plague corporate in the Electrical Industry, until the SEB restructuring and
unbundling brings a turnaround in the medium term.

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1.1.2 COMPANY PROFILE:

Havells India Ltd is a billion-dollar-plus organization, and is one of the

largest & India's fastest growing electrical and power distribution equipment
manufacturer with products ranging from Industrial & Domestic Circuit Protection
Switchgear, Cables & Wires, Motors, Fans, Power Capacitors, CFL Lamps, Luminaries
for Domestic, Commercial & Industrial applications, Modular Switches & Bath fittings
covering the entire gamut of household, commercial and industrial electrical needs.

Havells owns some of the prestigious global brands like Crabtree, Sylvania,
Concord, Luminance, Linolite & SLI Lighting.

With 91 branches / representative offices and over 8000 professionals in over 50

countries across the globe, the group has achieved rapid success in the past few years.
Its 7 state-of-the-art manufacturing plants in India located at Haridwar, Baddi, Noida,
Faridabad, Bhiwadi, Alwar, Neemrana, and 9 state-of-the-art manufacturing plants
located across Europe, Latin America & Africa churn out globally acclaimed products.
Havells is a name synonymous with excellence and expertise in the electrical industry.
Its 20000 strong global distribution network is prompt to service customers.

The company has acquired a number of International certifications, like BASEC, CSA,
KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore), TSE
(Turkey), SNI (Indonesia) and EDD (Bahrain) for various products.

Today, Havells and its brands have emerged as the preferred choice of electrical
products for discerning individuals and industrial consumers both in India and abroad.

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In an attempt to transform itself from an industrial product company to a consumer
products company, Havells launched the consumer electrical products such as CFLs,
Fans, and Modular Switches & Luminaries.

The essence of Havells success lies in the expertise of its fine team of professionals,
strong relationships with associates and the ability to adapt quickly and efficiently, with
the vision to always think ahead.

Vision:
"To be a globally recognized corporation that provides best electrical & lighting
solutions, delivered by best-in-class people."

Mission:
To achieve their vision through fairness, business ethics, global reach,
technological expertise, building long term relationships with all our associates,
customers, partners, and employees.

VALUES:

Customer Delight:

• A commitment to surpassing our customer expectations. Leadership by

example. A commitment to set standards in their business and transactions
based on mutual trust.

Integrity and Transparency:

• A commitment to be ethical, sincere and open in their dealings.

Pursuit of Excellence:

A commitment to strive relentlessly, to constantly improve themselves, their

teams, their services and products so as to become the best in class.

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 MILESTONES:

2009 • Set up of fully automatic switchgear manufacturing plant at

Baddi. Consolidation of CFL manufacturing plant at
Neemrana for domestic and export purposes.

2008 : • First Indian CFL manufacturers to have adopted RoHS,

European norms on Restriction of Hazardous Substances
in CFLs.
• Set up of Global Corporate office, QRG Towers at
Expressway Noida
• Investment of Rs.50 Crores in Global Center for Research
and Innovation (CRI)

2007 : • Set-up of Capacitor manufacturing plant in Noida, UP with

the capacity of 6, 00,000 kVAr per month.
• Acquired the Lighting business of a Frankfurt based
company "Sylvania", a global leader in lighting business
and now the company's turnover crosses US$ 1 Billion.
• Warburg Pincus, a global private equity firm and one of the
largest investors in India, invested US $110 million in
Havells India Ltd. Havells issued fresh shares to Warburg
Pincus, representing approximately 11.2% of the fully
diluted share capital of the company.
• QRG Group entered healthcare business by acquiring a
majority stake in Central Hospital and Research Centre,
Faridabad.

2006 : • Crabtree India merged with Havells India.

• Added CFL production unit in Haridwar manufacturing
plant.

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 • Expansion at Alwar manufacturing plant for increase of
production capacity.
• Expansion at Baddi manufacturing plant and set-up of an
Export Oriented Unit.
• First Company to get the ISI Certification for complete
range of CFLs.
• Started mid-day meal program at Alwar, Rajasthan caters
to 10,000 students from 77 schools.

2005 : • Set up manufacturing plant in Haridwar, Uttaranchal for

manufacturing Fans.
• Awarded the KEMA certification by The Dutch Council for
Accreditation, making QRG the only group to attain this
certification.
• Set up of R&D Center in Noida H.O.

2004 : • Set up manufacturing plant at Baddi , HP for manufacturing

of Domestic Switchgear.
• Set up a manufacturing plant for manufacturing of CFL at
existing manufacturing plant in Faridabad, Haryan.
• Set up a manufacturing plant for manufacturing of Ceiling
Fans at Noida, UP.
• Set-up our own marketing office in London through our
wholly owned subsidiary company Havells U.K. Ltd.
• In December, 2004 placed 235 fully convertible debentures
of Rs. 10 Lacs on M/s. Shine Ltd., Mauritius and the
debenture will be converted in June, 2006.
• Attained the CE certificate for CFL.

2002 : • Standard Electrical Company becomes a 100% Subsidiary

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 of the company.
• Attained the IEC certification for Industrial switchgear and
CSA certification for all manufacturing plants.

2001 : Acquired business of Havells Industries Ltd, MCCB of

Crabtree India Limited and merged ECS Limited in the
company to consolidate its area of core competence.

2000 : • Acquired controlling stake in Duke Arnics Electronics (P)

Limited engaged in manufacturing of Electronic Meters-
Single Phase, Three Phase, Multi Function, Tri Vectors.
• Acquired controlling interest in an industry major-Standard
Electricals Ltd.

1998 : Introduced high-end Ferraris Meters in Joint Venture with DZG,

Germany.

1997 : Acquired Electric Control & Switchboards at NOIDA, UP for

manufacturing customized packaged solutions.

1996 : • Acquired a manufacturing plant at Alwar, Rajasthan for

Power Cables & Wires.
• Entered into a Joint Venture with Electrium, UK for
manufacturing Dorman Smith MCCBs and Crabtree
Modular Plate Switches.

1996 : Acquired a manufacturing plant at Alwar, Rajasthan for Power

Cables & Wires.
Entered into a Joint Venture with Electrium, UK for manufacturing
Dorman Smith MCCBs and Crabtree Modular Plate Switches.

1993 : Set up another manufacturing plant at Faridabad, Haryana for

Control Gear Products.

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1990 : Set up a manufacturing plant at Sahibabad, UP for Changeover
Switches

1987 : Started manufacturing MCBs at Badli, Delhi in Joint Venture with

Geyer, Germany.

1.1.3 PRODUCT PROFILE:

Havells India Ltd has emerged as preferred choice for discerning

range of individual and industrial consumers. The firms products are approved by
international quality bodies such as KEMA, UL,CE,CSA and VDE and are as per IEC
standards.

The firm’s commitment is to manufacture excellence and providing

world-class quality products at affordable prices in creating the industry more energy
efficient, now from even wider spectrum of products from Havells; it offers a complete
solution which is not only safe and reliable but also helps to save energy.

At Havells, it is their philosophy to continuously upgrade products

in order to best serve modern discerning consumers. They feel proud and privileged to
share such innovation of making Havells more environment friendly, Havells aims at
providing versatile range of products and set a new benchmark for quality and
performance.

PRODUCTS:

1) BUILDING CIRCUIT PROTECTION

2) INDUSTRIAL CIRCUIT PROTECTION
3) MOTORS
4) CAPACITORS
5) LIGHTING

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6) CFL
7) FANS
8) MODULAR PLATE SWITCHES
9) CABLES AND WIRES
10)DIGITAL DIMMING
11)BATHFITTINGS AND ACCESSORIES

1.2 IDENTIFIED PROBLEM

 The organization does not have more customer care center and the customers
are not well aware of the existing customer care centers.

 The decrease in the promotional activities is not satisfied by the customers.

 The organization does not focus on a advertisement and sales promotion

activities.

 The organization is not good at checking the product before delivery.

1.3 NEED OF THE STUDY

• This study does not answer all the problems which arise in the Havells. There are
many certain formulas for analyzing particular problems, but the aim of the study is
to develop ability of decision making & strategic formulation. A right decision at the
right time itself helps the organization to run efficiently.

• It is here that this project becomes important as it aims to understand all the aspects
of corporate selling, the detail study of all the competitive brands of Havells
Products.

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• The observational study made during the training would help the marketing division
of Havells to devise effective market strategy for the given area that would ultimately
help to strengthen their position in the market, would enhance brand preference
amongst the consumers.

1.4 OBJECTIVES AND SCOPE

1.4.1 Objectives for the study:

Primary Objective:-

 To find out the people’s perception in purchasing the products of Havells India.

Secondary Objective:-

 To know the personal views of people regarding choices among various Electronic
products of Havells.
 To study which branded electronic products are mostly preferred by people as per
their choices.
 Comparison between various Electronic products of Havells.
 Find out factor influencing the people at the time of purchasing Electronic products -
QUALITY, DURABILITY, VARIETY, and PRICE.

1.4.2 Scope of the study

 This study would be useful for companies to know what people perceive and
thinking about “Electronic products” offered by Havells .The study would be
useful to other researchers as a secondary data. This study would be useful to
form strategies & to make further decisions according to perception of people
about electronic products in Havells.

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1.5 Deliverables:

 The questionnaire is set in order to conduct the primary research to

determine the choices and the preferences of the customers.

 The study also helps to analyze the brand preference and the customer
views of Havells India Limited.

 The primary research is undertaken to determine the prominent factors

that attracts the customers towards the company for recurring purchase.

CHAPTER-2
LITERATURE SURVEY

2.1 REVIEW OF LITERATURE

2.1.1 Book Review

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 The concept of brand image has been very significant to consumer behavior
from post 1950’s. As Aaker and Keller confirmed in Hsieh’s study that, “brand image
has been considered a vital part of a firm’s marketing program, not only because it
serves as a foundation for tactical marketing mix issues but also because it plays an
integral role in building long term brand-equity” (1990).

Definition:

Earlier definitions of brand image are presented in broad terms by Dobni

(1990) who put forward the following writers understanding of brand image. Newman
stated it as “everything the people associate with the brand” (1957). Reynolds (1965)
confirms that an image was centered on drawing a few key beliefs from a vast variety of
sources, thus creating your own impression based on the brand. Herzog’s concurs that
brand image was “the sum of the total impressions.” (1973). Indeed, such definitions all
concur together; echoed by the words of Levy who stated that “a brand image is a
constellation of pictures and ideas in people’s minds that sum up their knowledge of the
brand and their main attitudes towards it” (1978). A more recent insight into brand
image was added by Woodside who “defined image as the degree of positive or
negative affect associated with psychological object” (Reid, 2001).

Theory behind brand image:

According to Tyler (1957), there are three approaches to brand image:

Subjective, Objective and Literal.

The first type, is a subjective image, this is when a potential customer hears or sees the
brand name/logo and feel obliged to purchase the product or service, despite a lack of
understanding as to why this is the case. The case simply relates to how the brand is
perceived as significant to an individual’s self-consciousness.

The second type of brand image is the objective form which is the attempt to generate
an emotional need for the product, leaving you with the feeling that you need to
purchase the product so as to satisfy this need.

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 The third is literal image, i.e. a logo which represents a company. This
implies that upon seeing this picture/logo, the name of the company does not need to
be uttered as the picture tells the consumer the whole story e.g. Nike with the tick or
McDonalds with the golden arches. Evidently, the approach used to obtain and sustain
a brand image will vary upon several factors as reflected by the analysis presented by
Tyler.

Oxenfeldt and Swann’s idea was that the brand image should allow the
company to establish its position within its market segment, protecting it from
competition, thus allowing them to build upon this with market share growth (Park et al,
1986).

Moreover Park et al (1986) put forward in Bhat’s article that the importance of
establishing a brand image relevant to its market segment in which it is based, is
significant so as to ascertain a strong brand position, help create a barrier to entry for
potential competitors: thus raise the brands performance in the market.

2.2 RESEARCH GAP

 There are areas which have been identified and do require further investigation.
The main issues that the some studies had not specified about the requirements
of the customers regarding the product.
 However, some studies have suggested about various factors of purchase
decision but does not help in decision making & strategic formulation.
 The scope of this study was limited to certain characteristics of the customers but
does not aim at what they perceive and think about “Electronic products”
CHAPTER-3

METHODOLOGIES

3.1 TYPE OF PROJECT

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3.1.1 Descriptive Research:

Descriptive Research has been used; it involves surveys and fact – findings
enquirer of different kinds the major purpose of descriptive research is the description of
the state of affairs, as it exists at present. The main characteristics of this method are
that the researcher has no control over the variable; he can only report what has
happened or what is happening. The methods of research utilized in descriptive
research are survey methods of all kinds, including comparative methods.

3.1.2 Research Instrument

The research instrument used in this study “structured questionnaire”.

Structured questionnaire are those questionnaire in which there are predetermined
questions relating to the aspect for which the researcher collect data. The questions are
presented with exactly the same wording and in the same order to all the respondents.

3.1.3 Questionnaire Design

The structured questionnaire for Appraisal system with the following types
of questionnaire open ended, multiple choice and ranking scale.

3.2 TARGET RESPONDENTS

 The results could be skewed because of a small sample size of 50 only.

 The target respondents were the customers owning Havells product and also non
users of Havells Electronic product.

3.3 ASSUMPTIONS, CONSTRAINS AND LIMITATIONS

3.3.1 Assumption

 The results could be skewed because of a small sample size of 100 only.

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  People who purchase Havells product are assumed to be satisfied with their
advertising and sales promotion activities.
3.3.2 Constraints

 There may be bias in the collected information.

 Few respondents were reluctant while answering due to their busy schedule.

 The time limit was only 45 days.

3.3.3 Limitation of the study

 Time and resource constraint.

 The respondents in many cases were unwilling to provide all the information.

 The same information cannot be accessed due to its confidential nature.

3.4 PROPOSED SAMPLING METHODS

Convenience sampling has been used in this study. Convenience sampling is

used for selection of homogeneous sample for the study. It refers to selecting a sample
of study. It is non – probability sampling. Thus research study may include study
objects, which are conveniently located. Research findings based on convenient
sampling however, cannot be generalized.

3.5 DATA PROCESSING

Data collection

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 Data refers to information or facts. It includes numerical figures, non – numerical
figures, descriptive facts, and qualitative information. The task of data collection begins
after a research problem has been defined and research plan has been detected. The
nature of data is both primary and secondary data.

1. Primary data

The primary data are those that are collected through questionnaire. The
questionnaire was framed in such a manner to obtain correct information, graded
suitable for the study.

2. Secondary data

The secondary data has been collected through oral communication. Secondary
data is about the company website.

3.6 TOOLS FOR ANALYSIS

 Chi-square test
 Rank correlation
 One sample run test

3.6.1 Chi –Square Test

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 The chi – square test, written as Ψ²-test, is a useful measure of comparing
experimentally obtained results with those expected theoretically and based on the
hypothesis. It is used as a test statistics in testing a hypothesis that provides a set of
theoretical frequencies with which observed frequencies are compared. In general chi –
square test is applied to those problems in which we study whether the frequency with
which a given event has occurred , is significantly different from the one expected
theoretically.

The measure of chi square enables us to find out the degree of discrepancy
between observed frequencies and theoretical frequencies and thus to determine
whether the discrepancy so obtained between observed frequencies and theoretical
frequencies is due to the error of sampling or due to chance.

The chi – square is computed on the basis of frequencies in a sample and thus
the value of chi – square so obtained is statistics. Chi – square is not a parameter as its
value is not derived from the observation in a population. Hence chi – square test is a
non – parametric test.

Chi – square test is not concerned with any population distribution and its observation.

The Ψ² test was first used in testing statistical hypothesis by Karl Pearson in the
year 1900.it is defined as

(Ψ²) = ∑ (Oi-Ei) ²/Ei

Where Oi = observed frequency of i th event.

Ei = Expected frequency of i th event.

We require the following steps to calculate Ψ²

Step 1: calculate all the expected frequencies,

Step 2: take the difference between each observed frequency and the corresponding
expected frequency.

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Step 3: square the difference for each value of i.

Step 4: divide each square difference by the corresponding expected frequency

Step 5: add all the quotients obtained in step 4, then

(Ψ²) = ∑ (Oi-Ei) ²/Ei is the required value of chi square.

It should be noted that

 The value of Ψ² is always positive as each pair is squared one.

 Ψ² will be zero if each pair is zero and it may assume any value extending to
infinity. When the difference between the observed frequency and the expected
frequency in each pair is unequal. Thus Ψ² lies between 0 and 8.

 The significance test on Ψ² is always based on the one tailed test of the right
hand side of standard normal curve as Ψ² is always non negative.

 As Ψ² is a statistic and not a parameter, so it does not involve any assumption

about the form of original distribution from which the observation have come.

Degrees Of Freedom

The number of data that are given in the form of a series of variables in a row or
column or the no of frequencies that are put in cells in a contingency table, which can
be calculated independently is called degrees of freedom and is denoted by v.

Case 1: if the data is given in the form of a series of variable in a row or column,
then the degrees of freedom = (number of items in the series)-1, that is , v= n-1,where n
is the number in the series in a row or column.

Case 2 : when the number of frequencies are put in cells in a contingency table ,
the degrees of freedom will be the product of (number of rows less than one) and the
(number of column less than one).that is ,v =(r-1) (c-1), where R is the number of rows
and c is the no of columns.

Condition for applying chi – square test

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 1. Each of the observation making up the samples for this test should be
independent of each other.

2. The expected frequency of any item or cell should not be less than 5. If it is less
than 5 , then frequencies taking from the adjacent items or cells are pooled
together in order to make it 5 or more than

3. The total no of observation used in this test must be large that is n=30.

4. This test is used only for drawing inferences by testing hypothesis. It cannot be
used for estimation of parameter or any other value.

5. It is wholly dependent on the degrees of freedom.

6. The frequencies used in Ψ² test should be absolute and not relative in terms.

7. The observation collected for Ψ² test should be on random basis of sampling Ψ²

test.

The chi square test is widely used to test the independents of attributes. It is applied
to test the association between the attributes when the sample data is presented in the
form of a contingency table with any number of rows and columns.

3.6.2 Spearman’s Rank Correlation coefficient

The coefficient of rank correlation is based on the various values of the variants
and it is denoted by R. It is applied in the problems in which data cannot be measured
quantitatively assessment is possible such as awareness satisfaction etc.

The rank correlation is given by the formula:

R= 1 - 6∑D2

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 N(n2-1)

D2= The squares of difference of corresponding ranks

N= The number of pairs of observation

Steps involved in Rank correlation:

1. Calculate the difference of R1 from R2 and write it under the colouring heated
by D.

2. Square the difference D and write it under the column D2

3. Apply the formula

R= 1 - 6∑D2

N(n2-1)

3.6.3 The one sample run test

It is a non parametric method to randomness with which the sample items have
been selected. The run test, based on the order in which the sample observations are
obtained, is a useful technique for testing the null hypothesis H0 that the observation
has indeed been drawn at random. The runs test can also be used to detect departures
in randomness of a sequence of quantitative measures over time, caused by trends or
periodicities.

RUN: A run is subsequence of one or more identical symbols representing a

common property of the data. In other words, a run is defined as a set identical (or
related) symbols contained between different symbols (such as at beginning or end of
the sequence).

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 CHAPTER - 4

DATA ANALYSIS AND INTERPRETATION

4.1 Proposed analysis and interpretation methodologies:

The data after collection has to be processed and analyzed in accordance with

the outline laid down for the purpose at the time of developing the research plan. This is

essential for a scientific study and for ensuring that we have all relevant data.

Processing implies editing, coding, classification and tabulation of collected data so that

they acquiescent analysis.

The term analysis refers to the computation of certain measures along with

searching for patterns of relationship that exist among data groups. Thus, “In the

process of analysis, relationship or difference supporting or conflicting with original or

new hypothesis should be subjected to statistical test of significance to determine with

that validity data can be said to indicate any conclusions.”

Analysis of data in general way involves a number of closely related operations

that performed with the purpose of summarizing the collected data and organizing them

in such manner that the answers the research question.

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4.2 Calculations:

TEST NO – 1

Ψ² - CHI SQUARE

Aim:

To test the relationship between gender and service regards Quality of Havells
Products.

Null hypothesis H0:

There is no significant relationship between gender and Service of Havells Products

Alternative hypothesis H1:

There is a significant relationship between gender and Service of Havells Products

Observed frequency:

Good BAD Total

Male 23 12 35

Female 10 5 15

Total 33 22 17 50
Expected frequency:

GOOD BAD Total

((17)(35)) /50
Male ((35*33)/50)) = 23.1 35
= 11.9

((33)(15)) / 50 ((17)(15)) / 50
Female 15
=9.9 =5.1

Total 33 17 50

Calculation of ψ² value:

O E (O-E) (O-E)^2 (O-E)^2/E

12 11.9 .1 0.01 8.40336

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 23 23.1 -.1 0.01 4.3290

5 5.1 -.1 0.01 0.0019

10 9.9 .1 0.01 0.0010

Total 12.73526

The calculated value of Ψ² = 12.73526

Therefore degree of freedom = (r-1) (s-1)

= (2-1) (2-1)
= 12.71

Result:

Since, Calculated Ψ² = 12.73526 < Tabulated value Ψ² = 12.71.

Hence the Null hypothesis H0 is Rejected.

Decision:

There is significant relationship between gender and service regards Quality of

Havells Products.

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 TEST NO - 2

Spearman’s Rank Correlation coefficient

Ranking the Factors That Influence the Buying Decision

Factor Rank I Rank II Rank III Rank IV Rank v total

quality 2 1 3 - - 6

schemes - 1 1 2 1 5

Availability - 2 1 - - 3

Price 4 2 3 1 - 10

advertisement - - - - 1 1

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 Calculation of table values

Factor Rank I Rank II Rank III Rank IV Rank v

quality 2 1 3 - -

Rank 2 3 1 4.5 4.5

Schemes - 1 1 2 1

Rank 5 2 2 1 2

Availability - 2 1 - -

Rank 4 1 2 4 4

price 4 3 2 1 -

Rank 1 3 2 4 5

Advertisement - - - - 1

Rank 3.5 3.5 3.5 3.5 1

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 RANK CORRELATION TEST

Aim:

To test the relationship between the quality and price factor that influence the buyer.

Null hypothesis H0:

There is no relationship between quality and price factor that influence the buyer.

Alternative hypothesis H1:

There is relationship between quality and price factor that influence the buyer.

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 R1 R2 D=R1-R2 D^2

2 1 1 1

3 3 0 0

1 2 -1 1

4.5 4 0.5 0.25

4.5 5 -0.5 0.25

∑ D^2 =2.5

r = 1- 6∑D2 / n (n2 – 1)

r = 1 – (6( 2.5) /5(5 2 – 1))

r = 1 - (15/120)

r = 1- 0.125

r = 0.875

Correlation Co- efficient lies between -1 to +1

Result:

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 Quality and price factors are positively correlated. The calculated correlation
coefficient 0.875 is greater than the tabulated value of rank correlation co efficient for
n=6 and 5 % level of significance is 0.8626, Hence the null hypothesis Ho is rejected.

Decision:

There is a significant relationship between the quality and the price factor that
influence the buyer.

TEST NO - 3

ONE SAMPLE RUN TEST

Aim:

To Test the satisfaction of customers towards the service obtained from products other
than Havells.

Null hypothesis H0:

The customers did not satisfy with the service obtained from other products.

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Alternative hypothesis H1 :

The customers are satisfied with the service obtained from other products.

Run:

YYYYY | NNN | YYYY | NNN | YYYYYYY | NN | YYYYYY | NNNN | YYYYY | NNNN |

YYY | NN | YY |

r=13 n1 = 32 n2 = 18

Formula:

1. µr = ((2n1n2)/(n1+n2)) + 1

2. бr = √((2n1n2)(2n1n2-n1-n2))/((n1+n2)^2(n1+n2-1))

3. | Z | = r - µr/ бr

Statistics:

1. µr = ((2(32)(18))/50) + 1

= 24.04

2. бr = √((2(32)(18)(2(32)(18)-32-18))/((32+18)^2(32+18-1))

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 = 3.219

3. | Z | = | r - µr/ бr |

= | (13-24.04)/3.219|

= 3.43

| Z | Calculated = 3.43

|Z | Table = 1.96

Result:

Calculated value |Z| cal = 3.43 is greater than the table value 1.96.

Hence the Null hypothesis H0 is rejected.

Decision:

The customers are satisfied with the service obtained from other products.

4.3 Diagrammatic Representation:

TABLE NO.4.3.1

CLASSIFICATION ACCORDING TO GENDER

31
 Gender No. of Respondents Percentage

Male 40 80%

Female 10 20%

Total 50 100%

CHART NO.4.3.1

INFERENCE:

80% of respondents are male persons,20% of respondents are female persons.

TABLE NO.4.3.2

CLASSIFICATION BY PRODUCTS OWNED

32
 Do you have any of the Havells products?

SR.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1 Yes 25 50%

2 No 25 50%

3 Total 50 100%

CHART NO.4.3.2

INFERENCE:

The above table indicates that, 25% people have Havells products & 25% people
do not have.

TABLE NO.4.3.3

CLASSIFICATION BY PRODUCT TYPES

33
 (A). If “Yes” which product do you have?

NO. OF
SR.NO. PARTICULARS PERCENTAGE
RESPONDENTS

1 CAPACITORS 4 16%

BATHFITTINGS AND 2
2 ACCESSORIES 8%

CABLES AND WIRES

3 4 16%

4 FANS 4 16%

5 MOTORS 1 4%

6 LIGHTING 6 24%

7 CFL 2 8%

DIGITAL DIMMING
8 2 8%

9 Total 25 100%

CHART NO.4.3.3

34
INFERENCE:

The above table indicates that, 24% people have lighting, 16% people have cables and
wires, 8% have bathfittings and accessories, 16% have capacitors, 8% digital dimming,
8% have cfl, 16% have fans & 4% have motors.

TABLE NO.4.3.4

CLASSIFICATION BY PURCHASE PERIOD

35
 When did you purchase your Havells product?

NO. OF
SR.NO. PARTICULARS PERCENTAGE
RESPONDENTS

1 Less than 6 months 10 40%

2 6 months to 1 year 8 32%

3 1 -2 years 4 16%

4 2 – 5 years 2 8%

5 More than 5 years 1 4%

9 Total 25 100%

CHART NO.4.3.4

INFERENCE:

The above table indicates that, 16% people plans for purchasing Havells
products in 1-2 yr, 4% plan more than 5 yr, 40% plan in less than 6 months, 32% plan in
6 month to 1 yr.

36
 TABLE NO.4.3.5

CLASSIFICATION BY USAGE PURPOSE

What is main purpose of using Havells product?

NO. OF
SR.NO. PARTICULARS PERCENTAGE
RESPONDENTS

1 Personal 13 52%

2 Official 10 40%

3 Both 2 8%

4 Total 25 100%

CHART NO.4.3.5

37
INFERENCE:

The above table indicates that, 52% purchasing Electronic for person use, 8%
purchase for both purpose, 40 % purchase for official use.

TABLE NO.4.3.6

SATISFACTION LEVEL OF HAVELLS PRODUCTS

Your satisfaction level towards your Havells product?

NO. OF
SR.NO. PARTICULARS PERCENTAGE
RESPONDENTS

Strongly 9
1 36%
satisfied

2 Satisfied 13 52%

3 Dissatisfied 2 8%

Strongly
4 1 4%
dissatisfied

5 partially satisfied 0 0%

Total 25 100%

CHART NO.4.3.6

38
INFERENCE:

The above table indicates that, 52% people satisfied with their electronic
products, 36% strongly satisfied with their electronic products, 8% people dissatisfied
with their electronic products, 4% people strongly dissatisfied with their electronic
products.

TABLE NO.4.3.7

CUSTOMERS PREFERENCE IN HAVELLS PRODUCTS

Which types of features prefer most by you in Havells product?

NO. OF
SR.NO. PARTICULARS PERCENTAGE
RESPONDENTS

1 Product functionality 9 36%

2 Product design 8 32%

3 Packaging 5 20%

4 Product Size 2 8%

Service – Repair
5 1 4%
,Warranty & etc

Total 25 100%

CHART NO.4.3.7

39
INFERENCE:

The above table indicates that, 32% people gives preference to

Product design, 36% for Product functionality, 8% for Product Size, 20% give
preference Packaging, 4% gives Service – Repair ,Warranty & etc.

TABLE NO.4.3.8

FACTORS INFLUENCE BUYING DECISION

What are the factors which influence your buying decision?

SR.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1 Price 9 36%

2 Availability 7 28%

3 Schemes 4 16%

4 Quality 3 12%

5 Advertisement 2 8%

Total 25 100%

40
 CHART NO.4.3.8

INFERENCE:

The above table indicates that, 28% people influencing through availability of
product, 36% influencing through price, 16% through schemes, 12% through Quality of
Havells products & 8% through advertisement.

TABLE NO.4.3.9

CUSTOMERS FROM OTHER BRANDS

Did you switched over from any other brand to this brand?

NO. OF
SR.NO. PARTICULARS PERCENTAGE
RESPONDENTS

1 Yes 5 20%

2 No 20 80%

Total 25 100%

41
 CHART NO.4.3.9

INFERENCE:

The above table indicates that, 20% people had been switched over.

42
 Person does not have Havells product.

TABLE NO.4.3.10

CLASSIFICATION BY CUSTOMERS PURCHASE PLAN

When would you purchase the Havells Electronic Products?

SR.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1 Less than 6 months 11 44%

2 6 months to 1 year 10 40%

3 1 -2 years 3 12%

4 2 – 5 years 1 4%

5 More than 5 years 0 0%

Total 25 100%

CHART NO.4.3.10

43
INFERENCE:

The above table indicates that, 44% people purchase Havells in less than 6 months,
40% in 6 month to 1 yr., 12% in 1-2 yr. & 4% people plans for purchasing their
electronic product in 2-5 yr.

TABLE NO.4.3.11

CLASSIFICATION BY PRICE RANGE

What price range will you be prepared to pay for such a Product?
NO. OF
SR.NO. PARTICULARS PERCENTAGE
RESPONDENTS

1 Rs. 2500 – 3000 12 48%

2 Rs. 3500 – 4000 6 24%

3 Rs. 4500 – 5000 2 8%

4 Rs. 3000 – 3500 3 12%

5 Rs. 4000 – 4500 2 8%

6 Above 5000 0 0%

7 Total 25 100%

CHART NO.4.3.11

44
INFERENCE:

The above table indicates that, 12% choose the range of 3000-3500, 48% for
2500-3000, and 8% choose for 4500-5000 & 8% choose for 4000-4500.

TABLE NO.4.3.12

CUSTOMERS RANK FOR HAVELLS PRODUCTS

Rank the Product according to your preference?

NO. OF
SR.NO. PARTICULARS RANK PERCENTAGE
RESPONDENTS

LIGHTING 7 1
1 27%

BATHFITTINGS AND 1 5
2 ACCESSORIES 4%

CFL
3 4 3 15%

4 FANS 7 2 27%

45
 CABLES AND WIRES
5 2 8 8%

DIGITAL DIMMING
6 3 4 12%

MOTORS
7 1 7 4%

CAPACITORS
8 1 6 4%

9 Total 26 100%

CHART NO.4.3.12

46
INFERENCE:

The above table indicates that, 27% choose lighting, 4% choose bathfittings and
accessories, 27% choose fans, 4% for motors, 4& for capacitors, 12% for digital
dimming, 8% for cables and wires.

TABLE NO.4.3.13

MAIN PURPOSE OF PRODUCT USAGE

The main purpose of purchasing the Havells product?

SR.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1 Personal 13 52%

2 Official 9 36%

3 Both 3 12%

4 Total 25 100%

47
 CHART NO.4.3.13

INFERENCE:

The above table indicates that, 52% people choose for personal use, 12% for both use
& 36% for Official use.

TABLE NO.4.3.14

FACTORS INFLUENCE BUYING DECISION

12. What are the factors which influence your buying decisions? (Rank 1-5)

SR.NO. PARTICULARS NO. OF RESPONDENTS RANK PERCENTAGE

1 Price 10 1 40%

2 Availability 3 2 12%

3 Schemes 5 4 20%

4 Quality 6 3 24%

5 Advertisement 1 5 4%

48
6 Total 25 100%

CHART NO.4.3.14

INFERENCE:

The above table indicates that, 12% people influencing through availability of product,
40% through price, 24% through quality, 20% through schemes & 4% through
advertisement.

TABLE NO.4.3.15

CUSTOMERS PREFERENCE IN HAVELLS PRODUCTS

What type of features you prefer most from Havells?

NO. OF
SR.NO. PARTICULARS PERCENTAGE
RESPONDENTS

1 Product functionality 8 32%

2 Product design 11 44%

49
 3 Packaging 2 8%

4 Product Size 2 8%

Service – Repair
5 2 8%
,Warranty & etc

6 Product functionality 25 100%

CHART NO.4.3.15

INFERENCE:

The above table indicates that, 44% give preference to Product design, 32% to
Product functionality, and 8% for Packaging, 8% for Service, 8% for Product Size.

14. Please tick one of the item for each of the product for your desire Havells products?

TABLE NO.4.3.16 - PREFERENCES IN EACH PRODUCT

(A).FAN

SR.N NO.OF
PARTICULARS PERCENTAGE
O RESPONDENTS

1 High Speed Fans 2 8%

50
 2 Wall Mounting Fans 5 20%

3 Ceiling Fans 9 36%

4 Pedestal Fans 5 20%

5 Ventilating Fans 4 16%

6 Total 25 100%

CHART NO.4.3.16

INFERENCE:

The above table indicates that, 36% give preference to Ceiling Fans, 20% for
Pedestal Fans, 20% for Wall Mounting Fans, 16% for Ventilating Fans & 8% for High
Speed Fans.

TABLE NO.4.3.17
(B).LIGHTING

NO. OF
SR.NO. PARTICULARS PERCENTAGE
RESPONDENTS

1 Specialty lamps 1 4%

2 LED Lighting 2 8%

51
 3 Consumer Lighting 12 48%

4 Industrial Lighting 10 40%

5 Total 25 100%

CHART NO.4.3.17

INFERENCE:

The above table indicates that, 48% give preference to Consumer lighting, 40%
for Industrial lighting, 8% for LED & 4% for Specialty lamps.

TABLE NO.4.3.18
(C). INDUSTRIAL CIRCUIT PROTECTION

NO. OF
SR.NO. PARTICULARS PERCENTAGE
RESPONDENTS

1 MCCB 3 12%

2 Switch Disconnector 10 40%

52
 Fuse Switch and Switch
3 5 20%
Fuse

Load Changeover 7
4 28%
Switch

5 Total 25 100%

CHART NO.4.3.18

INFERENCE:

The above table indicates that, 40% gives preference to Switch Disconnector,
28% for Load Changeover Switch, 20% for Fuse Switch and Switch Fuse &12% for
MCCB.

TABLE NO.4.3.19
(D). Motors

NO. OF
SR.NO. PARTICULARS PERCENTAGE
RESPONDENTS

Inverter Duty Motors 3

1 12%
with Forced Cooling

2 Foot Mounting 17 53%

3 Brake Motors 5 20%

53
4 Flange Motor 15%

5 Total 25 100%

CHART NO.4.3.19

INFERENCE:

The above table indicates that, 53% gives preference to Foot Mounting, 20% for Brake
Motors, 15% for Flange Motor & 12% for Inverter Duty Motors with Forced Cooling.

4.4 DELIVERABLES – EXPECTED CONCLUSIONS

4.4.1 CHI-SQUARE TEST

Aim:

To test the relationship between gender and service regards Quality of Havells
Products.

Null hypothesis H0:

There is no significant relationship between gender and Service of Havells Products

54
Alternative hypothesis H1:

There is a significant relationship between gender and Service of Havells Products.

4.4.2 RANK CORRELATION TEST

Aim:

To test the relationship between the quality and price factor that influence the buyer.

Null hypothesis H0:

There is no relationship between quality and price factor that influence the buyer.

Alternative hypothesis H1:

There is relationship between quality and price factor that influence the buyer

4.4.3 ONE SAMPLE RUN TEST

Aim:

To Test the satisfaction of customers towards the service obtained from products other
than Havells.

Null hypothesis H0:

55
 The customers did not satisfy with the service obtained from other products.

Alternative hypothesis H1 :

The customers are satisfied with the service obtained from other products.

CHAPTER V

CONCLUSIONS

5.1 SUMMARY OF FINDINGS

5.1.1 STATISTICAL FINDINGS

 CHI-SQUARE TEST
There is significant relationship between gender and service regards
Quality of Havells Products.

56
 RANK CORRELATION TEST

There is a significant relationship between the quality and the price factor that
influence the buyer.

 ONE SAMPLE RUN TEST

The customers are satisfied with the service obtained from other products.

5.1.2 GENERAL FINDINGS

 80% of respondents are male persons.

 25% people have Havells products.

 24% people have lighting.

57
 16% people plans for purchasing Havells products in 1-2 yr.

 52% purchasing Electronic for person use.

 52% people satisfied with their electronic products.

 36% people give preference to Product functionality.

 36% people are influenced through price.

 20% of the people have switched from brand to brand.

 12% for people purchase Havells product for both personal and Official use.

 12% people influenced through availability of product

 36% of the people give preference to Ceiling Fans.

 48% of the people give preference to Consumer lighting.

 40% of the people give preference to Switch Disconnector.

 53% of the people give preference to Foot Mounting.

58
5.2 SUGGESTIONS AND RECOMMENDATIONS

 Havells India Company having large number of channel partners but

it is not supporting & taking care all of them equally which results in
increasing discontentment among new channel partners because
it’s not possible for company to support all of them equally.
Company should take some positive action against it.

 Company executive should visit dealers on regular basis.

 They should pay proper attention towards checking of various
components of products before end user delivery. Otherwise it tends
towards defame of brand name in comparison to rivals.

 Need to expand customer care center.

 Proper attention should be paid for advertisement planning
otherwise it may lead to problem for dealer as well as for company.

 Company should tie up with some event management company to

organize various promotional activities like canopy, Carnival.

 Company should make policy for fixed end user price for all dealers
so that fair game will be played & dealer would not to compromise
on their margin.

59
5.3 CONCLUSION

The study was done in order to find out the purchase decision of customers

towards Havells products. After analyzing the data, it was found that the purchase

decision of customers towards Havells products is better and not the best. Various

suggestions are suggested to increase the purchase decision of customers and help to

reach target.

5.4 DIRECTION FOR FUTURE RESEARCH

 There are some aspects influencing customer purchase decisions like

dependency on the Culture of the country. In-depth study of the demand for the
products are left untouched in this study due to time Constraints which can
further be explored.
 The factors such as higher expectation and satisfaction level of the brand can
further researched. And the testing of availability of the products with the retailers
can be explored for the further research.

60
 APPENDIX

QUESTIONNAIRE
I am C.Loganathan management student of Sri ram engineering college
undergoing MBA project on purchase decision of customers with reference to Havells
would be grateful if you kindly spare your valuable time to fill up the questionnaire which
would help me to complete my project successfully on time.

Thanking you

Personal Details
a. Name :

b. Age :

c. Gender :

d. Address :

e. Phone No :

f. Income :

g. Occupation

a. Businessman [ ] b. Govt.Employee [ ]

c. Private [ ] d.Others Specify [ ]

61
1. Do you have any of the Havells products?

(a). Yes

(b). No

(A). If “Yes” which product do you have?

I. CAPACITORS

II. BATHFITTINGS AND ACCESSORIES

III. CABLES AND WIRES

IV. FANS

V. MOTORS

VI. LIGHTING

VII. CFL

VIII. DIGITAL DIMMING

2. When did you purchase your Havells product?

I. Less than 6 months

II. months to 1 year

III. 1 -2 years

IV. 2 – 5 years

V. More than 5 years

62
3. What is main purpose of using Havells product?

I. Personal

II. Official

III. Both

4. Your satisfaction level towards your Havells product?

I. Strongly satisfied

II. Satisfied

III. Dissatisfied

IV. Strongly dissatisfied

V. partially satisfied

5. Which types of features prefer most by you in Havells product?

I. Product functionality

II. Product design

III. Packaging

IV. Product Size

V. Service – Repair ,Warranty & etc

63
6. What are the factors which influence your buying decision?

Price

Availability

Schemes

Quality

Advertisement

7. Did you switched over from any other brand to this brand?

Yes

No

8. When would you purchase a Havells Electronic Products?

Less than 6 months

6 months to 1 year

1 -2 years

2 – 5 years

More than 5 years

9. What price range will you be prepared to pay for such a Product?

Rs. 2500 – 3000

Rs. 3500 – 4000

64
 Rs. 4500 – 5000

Rs. 3000 – 3500

Rs. 4000 – 4500

Above 5000

10. Rank the Product according to your preference?

I. CAPACITORS

II. BATHFITTINGS AND ACCESSORIES

III. CABLES AND WIRES

IV. FANS

V. MOTORS

VI. LIGHTING

VII. CFL

VIII. DIGITAL DIMMING

11. The main purpose of purchasing the Havells product?

Personal

Official

Both

12. What are the factors which influence your buying decisions?
Price

65
 Availability

Schemes

Quality

Advertisement

13. Which types of features prefer most from Havells?

Product functionality

Product design

Packaging

Product Size

Service – Repair ,Warranty & etc

Product functionality

14. Please tick one of the item for each of the product for your desire Havells products?

A.FAN

High Speed Fans

Wall Mounting Fans

Ceiling Fans

Pedestal Fans

Ventilating Fans

66
B. LIGHTING

Specialty lamps

LED Lighting

Consumer Lighting

Industrial Lighting

C. INDUSTRIAL CIRCUIT PROTECTION

MCCB

Switch Disconnector

Fuse Switch and Switch Fuse

Load Changeover Switch

D. Motors

Inverter Duty Motors with Forced Cooling

Foot Mounting

Brake Motors

Flange Motor

67
BIBLIOGRAPHY

The lists of reference for the purpose of completing this marketing project are as given
below:

Reference Books

 Saunders,.M., Lewis. P., and Thornhill.A. (2003), Research Methods

for Business Students, 3rd Edition, Financial Times Prentice

 Boyd and Stasch (2001), Marketing Research, 3rd Edition, Financial Times
Prentice.

 :G. C. Beri (1999), Marketing Research, 4th Edition, Himalaya Publication House.

 Kothari C. R. (2005) ‘RESEARCH METHODOLOGY’ New Age International

Limited, Fifth Edition

68
  Saxena Rajan, Marketing Management: Tata Mcgraw, New Delhi, 2006

Websites

http://www.havells.com

http://business.mapsofindia.com/india-company/h/havells-india.html

http://havellsindia.wordpress.com

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