Professional Documents
Culture Documents
PROJECT REPORT
ON
Session 2003-2004
Lovely Institute of Management
Phagwara
ACKNOWLEDGEMENT
This work has been a result of valuable guidance and supervision of Mr. Suresh
Kashyap, an ideal teacher and a true guide. I don’t have the words to express the
deep-felt gratitude which I owe him. He rendered invaluable help and guidance to
me during my project and remained a continuous source of information and
motivation for me. He deserves my special thanks for his most constructive
suggestions and healthy criticism through out my MBA. I feel enriched by his
invaluable guidance.
Finally what ever I’m is all due to my parents who have always been a constant
source of guidance, inspiration, and optimism for me. I would also like to thank
my friends for their support and encouragement through out my project report.
With so much able guidance it is difficult to offer any excuse for the shortcomings
that might follow. How ever the faults solely are my responsibility.
SHIKHA TANDON
TABLE OF CONTENTS
S.NO. TITLE
• QUESTIONNAIRE
INTRODUCTION
Two movies a week at the theatre, getting together with friends and relatives,
playing cards, listening to the radio and may be reading were the only available
outlets for the consumer to pass their time before the introduction of television.
By the late 70’s consumer demands were becoming strident aspirations and
expectations began out growing available options The culmination of this was in
1982(when the colour television was introduced and the network was partially
expended) and 1984 (with the one transmitter a day expansion) However these
changes perhaps were more the results of political considerations rather than
meeting the consumer demand for change.
The magazine boom of the mid 70’s had limited impact as it was catering
to more or less the homogeneous group of people dictated by language, style, and
content. But for the first time in country, TV a single medium was reaching out
nationally. Radio while the forerunner did not have the same impact.
The advantage of TV since 1984 was that it could be received through out
the country. It therefore operated as a catalyst in defining social moves of the
times. Being a truly mass medium it drew viewership from all stratas of the
society. Each individual picked what he or she wanted from the medium.
The advent of satellite and cable TV has now totally changed the situation.
With satellite programmes are beamed to many countries at the same time.
Operating in a protected economy Indian advertisers have a no market outside the
borders of India. But consumers have no such restrictions They are more happy to
adopt the latest entertainment media.
Consumers now demand quality as never before. The best available
internationally is preferred to Indian as economy liberalizes. An even more
suitable change is imminent. Consumers have begun to think international and
over time behave international.
Consumers and technology are marching hand in hand today. IT is thus
incumbent upon the marketers, manufacturers, advertisers, and agencies to
understand this new consumer and keep pace or face the alternative of being left
behind. To establish their standing in the market they have to be constantly on the
search for customers and have to find out what consumer buy , how much can they
pay and what is being made available to them by the competitors not only in India
but internationally too.
COLOR TELEVISION INDUSTRY
The 80’s
The 80’s saw the industry growing at a fast rate of 30% per annum. The years
following the 1982 Asian games saw an exponential rise in growth, which
coincided with the setting up of Doordarshan kendras in many parts of the country.
Moreover, the government adopted a policy of encouraging the sector, which saw
the birth of many TV companies namely Weston, Dyanora and Televista. Even
state government owned companies like Uptron, Keltron and Meltron came up. By
1989, there were over 200 TV companies with sales of 5.2mn sets.
The 90’s
The early years of the 90’s decade saw TV sales falling to 4mn units due to a high
tax regime. However, with the onset of the liberalization era, the year 1993 saw a
reversal in fortunes for the industry with both import duties and excise duties
being slashed. Accompanying it was a rise in the general purchasing power of the
populace, a greater variety in TV software (with the coming in of foreign satellite
channels) and a strong rise in replacement demand. Sales touched almost 9mn
units in 1998. This period also saw the entry of MNC’s.
The years 1998 and 1999 have seen events like, the large pay-out to the
government staff through the implementation of the 5th Pay Commission, World
Cup 1999 and the success of the rabi crop. These events have changed the face of
the CTV industry, which realized a growth of 29-30% for the last two years. In
fact, for LG, (official sponsor of the World Cup 1999) this was the most successful
brand building exercise, as the company saw a 95% growth in 1999.
THE PRESENT SCENARIO
CTV market has grown by around 30% to 5mn units (inclusive of sales during
World Cup in) FY2000. After an accelerated performance in the last two years,
The Rs75bn the industry has seen a slow growth of just 10% in this year (January-
April2000).
While some players have seen a steady decline in sales, a few others have
performed exceptionally well. Brands like Philips, Sony, Aiwa have seen their
market shares dipping continuously, while the Korean multinationals, LG and
Samsung, are on a rampage, having shown a commendable performance, contrary
to the overall CTV industry performance. BPL has held its leadership in FY2000
by sacrificing margins with a 20.3% market share, despite the onslaught of
multinationals. BPL volume sales increased by 35% to 1.18mn units for FY2000
whereas net sales increased by 4% only. The company showed a jump in CTV
exports by 148%. However, the company did not perform well in the 1QFY2001
with its sales dipping by 25% to Rs. 3,720.5mn. Most of the players are slashing
prices and taking a re-look at their schemes. Prices are down by more than 20%
and industry majors predict a sharper fall by 8% in the next two years. However,
reduction in prices is not a viable option in the long run, and will definitely affect
the profit margins. Contrary to this, LG has priced its products 10% higher than
the market price and still managed to be the largest brand in consumer electronics
and white goods for April 2000 by achieving sales of Rs1.95bn
Year CTV sales
1988 1.3
1989 1.2
1990 1.2
1991 0.88
1992 0.83
1993 1.1
1994 1.3
1995 1.8
1996 1.91
1997 2.2
1998 2.65
1999 4.4
CTV Sales
LIST OF COMPANIES IN CTV INDUSTRY
CONSUMER BEHAVIOR
The aim of marketing is to meet and satisfy target customers’ needs and wants.
The field of consumer behaviour studies how individuals, groups, and
organizations select, buy, use, and dispose of goods, services, ideas, or experiences
to satisfy their needs and desires. The consumer buyer behaviour is the buying
behaviour of final consumer–individuals and households who buys goods and
services for personal consumption.
Understanding consumer behaviour and “knowing customers” are never
simple. Customers may state their needs and wants but act otherwise. They may
not be in touch with their deeper motivations. They may respond to influences that
change their mind at the last minute. Nevertheless, marketers must study their
target customers’ wants, perceptions, preferences, and shopping and buying
behavior:
Studying consumers provides clues for developing new products, product features,
prices, channels, messages, and other marketing-mix elements.
Marketing mix can be defined as the set of controllable tactical marketing tools –
product, price, place, promotion-that the firm may blend to produce the response it
wants in the target market.
PRICE- It is the amount of money the customer have to pay to obtain the product
(CTV). It includes list price, discount, allowances, payment period, credit terms.
PLACE- It includes company activities that make the product available to target
consumers. Channels, coverage, assortments, locations, inventory, transportation,
logistics becomes the part of place
1. Primary data collection- The information was collected by the way of face
to face interviews. This method was adopted to make the survey interactive
and also awareness enhancing.
2. Research-Survey
3. Research instrument- Structured Questionnaire.
4. Area covered/scope of the study- Jalandhar city and Nakodar .
5. Sample Size-100
6. Sample Unit- Businessman, Professional, Govt. employees, Students,
Housewives.
7. Sample Procedure- Convenience Sampling
8. Contact Method-Personal Interview Method
Married 62
Unmarried 38
AGE %OF RESPONDENTS
20-25 36
26-40 32
40.55 32
This study will help the dealers to know that which factors influence the
consumers most and at the same time which source of information influence their
buying decision. This research can be useful as source of information for similar
projects. My study will help the customers to know which brand of CTV to select
as there are number of brands which are available in the market.
OBJECTIVES OF THE STUDY
The buying behavior of the consumer with regard to CTV is influenced by number
of external and internal factors and this study attempts to know about the
consumer buying behavior and at the same time what factors do the consumers
have in their mind before they make up their mind to purchase a CTV so the main
aim of my study was:-
Although sincere efforts were made by me to collect the maximum, most authentic
and relevant information even then this study may have the following limitations:-
1. This study cannot be generalized for all the consumers of CTV since the
universe under study in my research was limited to Jalandhar and Nakodar
city.
2. All the results and conclusion have been drawn on the basis of information
provided by the respondent so there is the possibility of “individual bias”
on the part of respondent.
3. Time was an another limiting factor
4. The method used for data collection is convenience sampling method
therefore ‘drop in’ or go through error might have crept in .
5. Buying behavior is an attitudinal which need specialized knowledge of the
area so there is a chance of interpretational error. .
FINDINGS AND ANALYSIS
Product attribute /factors has been divided into three categories i.e. critical/most
significant factors-means factors that were considered by seventy or more than
seventy respondents while purchasing existing brand of CTV. Moderately
significant factors-it includes factors that were considered by 50 to70 respondents
while purchasing existing brand of CTV. Third category is of Less Significant
factors it includes those attributes that were considered by less than 50
respondents.
a) Critical/Most Significant Product Attributes/Factors:
This category includes After-Sales- Services, Better Quality and Brand
Image as 82,80&72 respondents considered these while buying CTV.
b) Moderately Significant Product Attributes/Factors
This category includes Warranty Advanced Technology, Picture quality,
Sound output and attractiveness with 68,66,63,60$58 considering these while they
purchased CTV /selected brand.
These factors may be termed as maintenance factors, presence of these
factor doesn’t increases preference much but absence of these can significantly
lead to decrease in brand preference.
c) Less significant product Attributes /Factors
Easy availability, Foreign Made, Graphic Equalizers. On Screen display,
Built in video Game, Child Lock, Low price are in this category as 48, 48, 38, 35,
32, respondents considered these while buying the CTV’s.
Easy availability is less significant as CTV is a high entertainment value item
and respondent can neglect it while buying CTV. Thus several people purchase
CTV from neighboring cities neglecting dealers from their own cities. This factor
is critically for daily use items. Availability of credit is least significant, as
customer is not going to buy the brand, which he/she doesn’t like even if credit is
available.
90
80
70
60
50
40
30
20
10
0
Low Price
Any other
Availability
Brand Image
High Quality
Attractiveness
Easy
If Customers are Satisfied or Not:
25%
Yes
No
75%
Customer Satisfaction with the Brand Owned:
80
74
70
61
60 56
no of respondents
50 46
44
40
30
20
10
0
Good Good picture and Good after sale Good looks More sound
performance sound output service output
Reason
No of respondents
Po
or
pe
0
2
4
6
8
10
12
14
16
rf o
rm
Ba an
d ce
8
pi
ct
ur
Po e
or qu
af al
te i ty
6
rs
al
es
se
rv
ic
O e
11
rd
in
ar
y
lo
Le ok
s
Reasons
ss
0
so
un
d
Reasons for dissatisfaction
ou
tp
O ut
4
bs
ol
et
e
m
od
el
15
BRAND PREFERENCE FOR CTV’S:
Thus a brand identifies the seller or market. Under trademark law , the seller
is granted exclusive rights to the use of the brand name in property.
Brands vary in the amount of power and value they have in the
market place. Brand preference means that the consumer would select that
particular brand over others. A powerful brand is to have a high brand equity.
Survey reveals that Sony, Samsung and LG have the high brand
preference. Philips, Videocon, Onida enjoy moderate preference. Akai, Aiwa,
Sansui has got low brand preference.
860
840
820
800
780
760
740
720
700
680
660
SONY SAMSUNG LG VIDEOCON
ATTRACTIVENESS OF PROMOTIONAL SCHEME:
High attraction for discount after signifies the price conscious market. Low
attraction for free gift can be attributed to consumer’s belief that companies add up
the cost of gift in the cost of actual product.
60
53
50
% OF RESPONDENT
40
30 27
20
20
10
0
discount offer exchange offer freegift
SCHEMES
INFLUENCE OF PERSON ON BUYING DECISION
Family members influence the consumer behavior in two ways. Firstly the
consumer is affected by his environment which is influenced by his family
members ,secondly most of the products are purchased for use at the residence and
family members have assay in the purchase decision .
45%
40%
40%
35%
%of respondents
30%
30%
25% 23%
20%
15%
10% 7%
5%
0%
housewives children friends others
person
BEST CTV (CUSTOMER VIEW)
The respondents were asked that which is the best ctv on the basis of size of the
tv. 21” ctv was found to be the most preferred as 52% of the respondents were in
its favor. 38% of the respondent preferred 14 to 20” ctv, 8% preferred 25 to 29”
ctv and 2% preferred 34” ctv.
60%
52%
50%
40% 38%
%of respondents
30%
20%
10% 8%
2%
0%
14-20" 21" 25-29" 34"
SIZE OF CTV
REASONS FOR BUYING FROM A PARTICULAR
SHOWROOM
Table shows out of 100 respondents 26 i.e. 26%have pointed out that they have
purchased their CTV from a particular showroom because of the competitive
price. Authorized dealership has occupied second position as 25%respondents
pointed out it as the reason for buying CTV from a particular showroom. Third
position has been occupied by better services with 20%respondents pointing it out
as reason for buying from a particular showroom. 14&13 have pointed out
pleasing nature &good reputation as most important factor in this context. Credit
facility has got very low rating as only two respondents have pointed out credit
facility as main factor.
CTV is one time purchase for most of the households &it is costly as well
as high utility item, thus they prefer to buy it from authorized dealer. It is the cost
factor which makes competitive price important purchase of CTV (unlike
consumer product)is one time purchase, thus customer can neglect pleasing nature
if other factors favor particular showroom.
S. No. Reason No.of Respondents
1. Competitive Price 26
2. Authorised Dealer 25
3. Pleasing Nature 14
4. Good Reputation 13
5. Better Service 20
6. Credit Facility 2
no. of respondent %
co
m
pe
10
15
20
25
30
0
5
tit
iv
e
pr
ic
au
th e
26
or
is
ed
de
al
pl er
ea
25
sin
g
na
tu
go re
14
od
re
pu
ta
tio
n
Reasons
be
t te 13
rs
ev
ic
e
20
cr
e
Reasons for buying from a particular showroom
di
tf
ac
ilit
y 2
SOURCES OF INFORMATION ABOUT CTV
The survey has revealed that out of 100 respondents 43 i.e. 43% of the
respondent came to know about the particular Brand from the friends, 23 i.e.
23% from relatives 10% from newspaper, 85 each from hoardings, noticed
while walking, and others .so it is clear that friends and relatives are important
source of information as compare to others.
50
45 43
40
35
% of respondents
30
25 23
20
15
10
10 8 8 8
0
Friends Relatives New spaper Hoarding Noticed w hile Others
w alking
sources
SOURCES OF INFORMATION ABOUT BRAND
VIDEOCASETTES
Discount
23%
Others
43%
Marriage
Festival/new year 27%
7%
BRAND OWNED:
45
40
40
35
30
25
25
20
20
15
10
10
5
5
0
Sony Samsung LG Videocon Others
SUMMARY AND CONCLUSIONS
This study attempts to know about the consumer buying behavior with regard
to CTVs. What factors do the consumers have in their mind before they make up
their mind to purchase a CTV, this study finds to gain insight into these factors.
After sale service, high quality, brand image, child lock are the
most significant factors influencing choice of brands with rating score more than
700.
Attractiveness of model, picture quality, advanced technology, warranty and
looks have been found to be the moderately significant with rating score between
500-700.
In terms of popularity (brand recall test) Sony has been found to be most
popular brand with weighted mean of (first, second, third)20.66 Samsung and LG
comes second and third respectively in popularity with weighted average 15.66
and 13.66 respectively. Thus Sony and Samsung can be attributed to these fact that
these two are very old and reliable in CTV market. Popularity of Samsung is high
because of the aggressive advertisement campaign by the company.
RECOMMENDATIONS
1) Sony, LG, Samsung, Philips have been able to dominate the market with
simple, brief and heart winning messages. So by giving more importance
to the composition of the messages the companies can increase their impact
on the consumers.
2) To attract consumers the company should improve the quality of their CTV.
The advertisement copies should stress on the quality of the brands, their
superiority, highlighting technological, features, and the wide network of
after- sale- services.
3) The present study reveals that the ‘Brand Name’ has most important
bearing on the minds of the consumer at the time of deciding their choice of
brand of color TV there fore every effort should be made through
advertisement to build up and strengthen the brand image.
4) Proper feedback should be undertaken by the marketer in order to find out
the loopholes in their performance and undertake all possible actions to
overcome the same.
5) The role of advertisement as the study has highlighted needs to be
appreciated. Since attractive well-planned advertisement campaign can play a
very vital role in the increasing the share of brand in the CTV market. Every
manufacturing organization should have a separate ‘advertisement cell’ with
intelligent and experienced marketing professional who should be made
responsible of making advertisements more attractive .eye catching and
purposeful.
ANNEXURE
RATING TECHNIQUE
In this rating technique used respondents has to rate each and every
attribute factor on 10 point rating scale. Rating score by each and every respondent
for a particular attribute/factor is added to get final score for that attribute. That
final score is known as Rating Score. Because every respondent has to allot score
from 10 and sample is of 100 respondents. Thus final score of each and every
attribute is out of 1000.
RANKING TECHNIQUE
In this scores have been attached with every rank. The following table
shows Ranks and their score attached with respect to rank given by respondents.
Rank 1 2 3 4 5 6 7 8 9 10 11
Score 10 9 8 7 6 5 4 3 2 1 0
Now using scores relative to each rank final score is calculated as in rating
technique.
QUESTIONNAIRE
Dear Respondent,
Thanks,
Shikha Tandon.
Q1. Name the brands of CTVs which you can recall first?
(a) (b) (c)
Q5 What were the information sources used by you while selecting the
brand of CTV?
(a) Word of mouth (b) Hoarding
(c) TV advertisement (d) Print ads
(e) Any others(Specify)
Q5 Who influenced your decision the most to buy a particular brand of
CTV?
(a) Spouse (b) Children
(c) Friends (d) Any other
Q7. Are you satisfied with the service / after –sale- service ?
(a) Yes (b) No
Q8.
(I) Are you satisfied with the brand or model you bought?
Yes No
(II) If no then tick as many as possible:-
(a) Poor performance
(b) Poor after sale service
(c) Model looks obsolete
(d) Picture quality
(e) Any other (specify)
(III) If yes tick as many as possible:-
(a) Good performance
(b) Good after sale service
(c) Picture quality
(d) Better looks
(e) Any other `
DEMOGRAPHIC PROFILE :
NAME:
AGE:
OCCUPATION:
ADDRESS:
BIBLIOGRAPHY
4. Schiffman & Kanuk, Consumer behavior New Delhi,, PHI Pvt. Ltd.
5. Internet Search.