Professional Documents
Culture Documents
AT
SUBMITTED BY:
PATEL LAKHAN A.
T.Y.B.B.A. [MARKETING]
Roll No.-15
SUBMITTED TO:
AFFILIATED TO:
VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT
[IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION]
YEAR: 2009-2010.
I further declared that to the best of my knowledge and brief, this project work is not
being submitted to any other university for the award for any other degree, diploma or
requirement course.
Date:
I would like to express my deep gratitude to Mr. Khatwani Sir General Manager,
Manufacturing division at Bharuch who gave me an opportunity conduct my project work at
Blue Star limited at Baroda.
I am very thankful to Mr. Vasant Kasela Human Resource Manager, Bharuch who
gave me the introduction of “Blue Star Limited” its MILESTONES and gave the global
experience which helps me to think big.
Each and every employee at Blue Star is very co-operative and helpful. They made this
experience unforgettable.
The project report at “Blue Star Limited” which is India’s largest air-conditioning
company. The company has achieved a significant position in manufacturing air-conditioners
& commercial refrigeration equipment ranging from water coolers to cold storages.
I have selected “Blue star Limited” because it has [world class] global experience in
management & marketing and that I can see in their vision mission & value guideline & belief.
My survey topic is to study the new concept that Targeting Domestic Segment
through retail channels. The significance of this project work is to find out the scope of
success as increase in the market share of Blue star air-conditioner so company can think over
this concept and get the idea through this whole report. The type of data collection mainly
focuses the instrument that is to be used to collect data in many survey is questionnaire
because from retail channel it is easy to collect data in Surat.
Analysis of data can be done through many tools and technique but my project work
contain graphical method percentage and average method to get the analysis done.
Lakhan A. Patel.
YEAR:-2009-2010.
Figure 3. Gender.
S.S. Agrawal college of Arts Commerce & Management.
9
Research Methodology
INTRODUCTION:
“Re” means again and again and “Search” means to find out something, the following is the
process:
Therefore, Research means to observe the phenomena again and again and collects the data
and on the bases of data he draws some conclusions after analysis of that data. The
systematic method of above process is called “Research Methodology”.
PROBLEM IDENTIFICATION:
The Subject is very clear that: ““Study the scope of success targeting the Domestic
Segment through Retail Channel for Blue Star Air-conditions”. Here the concept is New target
as Domestic Segment and that is through Retail Channel.
SAMPLING:
Here Sampling taken is: Non-Probability and type of Sampling is convenient
accordingly.
DATA COLLECTION:
o Sample Units: Retail Stores [Large, Medium, Small Scale].
o Sample size: 20 Retail Stores at Surat.
o Primary Data Collection by Survey at Retail Stores.
o Secondary Data: Blue Star Limited provides necessary data, various websites
www.google.com, www.yahooanswer.com, www.BlueStarindia.com.
Within three years, the Company secured the agency for US-based Melchoir
Armstrong Dessau's air conditioning equipment. Shortly after, the Company was selected by
Worthington, the US leader in air conditioning, as its India based partner - these were the first
of numerous foreign associations to follow.
An expanding Blue Star then ventured into the manufacture of ice candy machines
and bottle coolers and also began the design and execution of central air-conditioning
projects. Then came the manufacture of water coolers. In 1949, the proprietorship company
set its sights on bigger expansion, took on shareholders and became Blue Star Engineering
Company Private Limited.
Ever since, there has been a constant and profitable growth. Blue Star diversified and
took up agencies for Material Testing Machines and Business Machines. The export arena
beckoned and the Company began exporting water coolers to Dubai, where in fact, 'Blue Star'
soon became the generic name for water coolers.
The sixties and the early seventies witnessed Blue Star continuing to expand and
thrive. A team of dedicated professionals aided Mohan T Advani in ever furthering his vision of
a profitable company dedicated to its ideals of professionalism and success. Employee
As its Indian presence reached greater heights, the Company began building
determinedly upon its existing overseas presence, Blue Star set up a joint venture with Al
Shirawi in Dubai and went on to execute some outstanding projects in Syria, Iraq and Saudi
Arabia. To complement its air-conditioning projects and undertake turnkey industrial projects,
an Industrial Division was set up in 1978.
Always moving with the times and ever on the lookout for business possibilities, Blue
Star next set up a software export unit at Seepz, Mumbai in 1983. Then came associations
with more global leaders - a collaboration with York International of USA for central air-
conditioning equipment and joint ventures with Motorola and Yokogawa.
In 1984, Ashok M Advani & Suneel M Advani, the sons of Mohan T Advani, took over
the reins of the Company, after spending nearly 15 years within the Company steadily
climbing up the ladder. A renewed thrust was placed on the company's core business areas -
air-conditioning and refrigeration and the distribution of professional electronics equipment -
and the company emerged a market leader in these focus areas.
In keeping with this focus, an advanced manufacturing facility was set up at Dadra in
1997, in technical collaboration with Rheem, USA, to enhance manufacturing competency.
Today it bears the distinction of being regarded as the best such plant India-wide. The dealer
network was strengthened and expanded to bring products within easy reach of every
customer.
With the advent of the much awaited new millennium in 2000, the action continued.
The software unit was spun off into a separate company, Blue Star Infotech Ltd., the export of
air-conditioning products from the Dadra factory began and contract manufacturing for local
and foreign brands commenced. A new Corporate Vision was developed - "To deliver a world-
class customer experience". Every employee is determined to follow this vision and keep their
organization a competitive and forward-looking one.
Blue Star crossed the Rs. 500 crore milestones in 2000 and the Rs. 600 crore
milestones in 2002-03. With the boom in construction activity and increased infrastructure
investments, the Company leveraged its leadership position to grow aggressively. In the
following three years, the Company nearly doubled its turnover, clocking Rs 1178 crores in
2005-06.
Even more than size, Blue Star enjoys an enviable reputation as an ethical
corporation, ever mindful of its obligations towards customers, shareholders, dealers,
business partners, employees and the environment in which it operates.
Blue Star is India's largest central air-conditioning company with an annual turnover
of Rs 2574 crores, a network of 29 offices, 5 modern manufacturing facilities, 700 dealers and
around 2600 employees.
Blue Star has business alliances with world renowned technology leaders such as
Rheem Mfg Co, USA; Hitachi, Japan; Eaton - Williams, UK; Thales e-Security Ltd., UK; Jeol,
Japan and many others, to offer superior products and solutions to customers.
The Company has manufacturing facilities at Thane, Dadra, Bharuch, Himachal and
Wada which use state-of-the-art manufacturing equipment to ensure that the products have
consistent quality and reliability.
Blue Star primarily focuses on the corporate and commercial markets. These include
institutional, industrial and government organizations as well as commercial establishments
such as showrooms, restaurants, banks, hospitals, theatres, shopping malls and boutiques. In
accordance with the nature of products and markets, business drivers, and competitive
positioning, the lines of business of Blue Star can be segmented as follows:
The Company has four state-of-the-art factories at Thane, Dadra, Bharuch and Kala
Amb which manufacture a wide range of Air conditioners, Air-conditioning and Commercial
refrigeration equipment’s.
Thane Plant
“To be a reputed,
Engineering Company.
S.S. Agrawal college of Arts Commerce & Management.
29
INDUSTRIAL SCENARIO
2 Samsung 15%
3 Voltas 14%
4 ONIDA 11%
5 Videocon 9%
6 Blue Star 8%
Market Share
Other LG
20% 23%
Blue Star
8%
Samsung
15%
Videocon Voltas
9% 14%
ONIDA
11%
“Study the scope of success targeting the domestic segment through Retail Channel
for Blue Star Air-conditioner”.
o In this competitive period of time Industrial Scenario says that in Air-conditioner segment
Blue Star Limited is at 6th position. With 23% LG is leading company in air-conditioner
segment.
o From that report of market share Blue Star Limited is lacking somewhere, because Blue
Star Limited is India’s largest air-conditioning company. The company has achieved a
significant position in manufacturing air-conditioners & commercial refrigeration
equipment ranging from water coolers to cold storages, in one sentence “EXPERTISE IN
COOLING” then also it is in 6th position.
o 5 years before there was a time where Air-conditioners are used only in commercial
segment. There where only 10% of domestic use only because air-conditioners were
included in luxurious product. But now Air-conditioner becomes the need and domestic
use become incredible up to 60% and commercial segment have just 40% demand in
market.
o Blue Star Limited is still focusing on commercial segment only, means just attending 40%
from the market, is only the problem for retain in 6th position.
o So from above reasons I have selected this subject which definitely will help in proper
understanding from this survey in Surat area.
S.S. Agrawal college of Arts Commerce & Management.
32
ANALYSIS OF DATA:
For conducting the survey I have prepared a Questionnaire that I have attached in
appendix. The analysis part of the survey is given below.
60 45%
40 30% 35% 35% 30%
20% 15% 20% 20%
20 5% 10% 10%
0
HITACHI
Panasonic
Blue Star
ONIDA
kenstar
Electrolux
Videocon
Mitsubishi
Carrior
Samsung
LG
Voltas
Godrej
Whirlpool
O-General
Brands
FIGURE 1.
S.S. Agrawal college of Arts Commerce & Management.
33
INTERPRETATION:
O From above figure it is clear that LG & Samsung Brands having maximum availability in
each large, medium and small size Retail Stores with 95% to 90% accordingly.
O Remaining other brands expect Blue Star having their brands availability in medium and
large size retail store. Their availability we can see from above figure.
O But Blue Stat Limited having 5% availability in retail store.
Demand Pattern
Non-
seasonal
38% Seasonal
62%
FIGURE 2.
INTERPRETATION:
o Here with this figure 2 it is clear that demand for Air-condition is seasonal with 62% and
that to in April to June.
o And with 38% Non-seasonal demand for air-condition that to for the whole year.
o PURPOSE: To identify the dominance towards buying decision, To identify the leading
segment whether it is domestic or commercial.
GENDER:
Female Gender
8%
Male
92%
FIGURE 3.
Age Level
100%
100
80
Percentage
60
40
20 0% 0%
0
Less than 25 25 to 50 More than 50
Age
FIGURE 4.
Customer Type
Commercial
37%
Domestic
63%
FIGURE 5.
INTERPRETATION:
Here with figure 3, the purchase decision is taken by male gender with 92%.
The Age Level of the buyer is in between 25 to 50. Means that the Professionals and
businessmen are taking buying decision that is clear from figure 4.
In figure 5 Domestic customer with 63% and Commercial customer with 37%.
Target Through
100%
100
90
80
70
Percentage
60
50
40
30 0%
20
10
0
Retail Stores Private Stores
FIGURE 6.
INTERPRETATION:
O Domestic customers are preferred to purchase air-conditioner through retail stores with
100%.
O PURPOSE: Making important decision regarding Pricing or Product Design. And identify
any possibility in changing Pricing Strategy.
Quality
Conscious
28%
Price
Conscious
72%
FIGURE 7.
INTERPRETATION:
o In Surat there are 72% customers are Price Conscious and 28% are Quality Conscious.
o PURPOSE: To find out the advantages why the particular Brands are the most selling
Brand.
Maximum Selling
Actual Out of Percentage
Brand
Samsung 6 20 30%
Voltas 4 20 20%
Hitachi 3 20 15%
Onida 3 20 15%
Panasonic 1 20 5%
Mitsubishi 1 20 5%
LG 1 20 5%
Videocon 1 20 5%
20
15
10
Percentage
5
0
Brands
FIGURE 8.
Favourate Brand
30%
30 25%
25 20%
Out of 100 %
20 15%
15
10 5% 5%
5
0
Brands
FIGURE 9.
INTERPRETATION:
o PURPOSE: To identify the brand awareness & their thinking towards Blue Star’s Air-
conditioner.
Brand Awareness
100%
100%
80%
Percentage
60%
40%
20% 0%
0%
Yes No
FIGURE 10.
INTERPRETATION:
o 100% Respondents having Brand Awareness of Blue Star Air-conditioner.
1. Brand Name.
2. Quality wise good.
3. Good performance for long time.
o PURPOSE: To know the readiness of them to deals with Blue Star or scope of response of
them.
No
10%
Yes
80%
FIGURE 11.
INTERPRETATION:
o PURPOSE: For receive their response towards this concept of targeting domestic
segment through retail channel.
Market Share
100 95%
80
Percentage
60
40
20
0% 5%
0
Increase Decrease Can't say
Result
FIGURE 12.
INTERPRETATION:
o 95% respondent gave the positive response that Blue Star Limited can compete the other
Brand and will definitely increase its market share.
o At the completion of the analysis part I found that there is the full scope of success
targeting to the Domestic Customer and that through Retail Stores [Figure 1].
o There is the 100 percent awareness of Blue Star Brand. There is the positive
response regarding this survey topic.
o 80% respondents are ready to deals with.
o This step will definitely result in increase the Market Share and will jump to the 2 nd
or 3rd position or may be the 1st position too.
During the whole survey and analysis of data I have found many things that
should be consider. Each and every company has the dream to leading the market or
having the maximum Market Share. In Air-conditioner segment Blue Star Limited is at
6th position. LG is leading the market with 23%, Samsung with 15% and Voltas with
14%.
o So here I suggest that to use this 60% market of domestic segment too.
o To achieve maximum market share the availability of Air-Conditioner should be
more than 80% because LG is having 95% availability and Samsung with 90%
availability.
o Blue Star Limited must have their product at least at medium and large size retail
stores for sale.
o Under this kind of huge competition there should be the advertisement of Blue
Star Air-condition like LG and Samsung do.
During the survey I got the information that many of the commercial and
domestic customers are asking for Blue Star Air-conditioner, but because of not
availability of Blue Star Air-Conditioners they are shifting to another brand.
o 72% of the over all customers are price conscious and just 28% are the quality
conscious. So the price of the product should be competitive. My suggestion is to
do experiment with quality to get the cost price low and try to make competitive
price.
Market Share
Other
20% Blue Star
23%
Voltas
8%
LG
15%
Videocon
9% Samsung
14%
ONIDA
11%
o Wish “Blue Star Limited” a great success of being India’s No.-1 Air-
Conditioner company.
o All the best for your bright future.
The Practical data like Diagrams, original photos are founded from the below given
web sites.
o WEB SITES:
1. www.googal.com
2. www.bluestarindia.com
3. www.yahooanswer.com
Dear Sir/Madam,
I am Lakhan Patel, T.Y.BBA student of S.S. Agrawal College of Arts Commerce &
Management. I am doing my winter project on the “Study the scope of success
targeting the Domestic Segment through Retail Channel for Blue Star Air-
conditioner”. For the partial fulfillment of the B.B.A. program, I hereby request you
to fill up this questionnaire that will give me required information for the project. I
assure you that all the information is purely used for an academic purpose, and will
be kept completely confidential.
QUESTIONNAIRE
Q-1 Brands Available: [list down]
Q-2 Demand:
Q-3 Customer:
o Male:_____%
o Female:_____%
o Age group :_____< 25, _____25<x<50, _____>50.
o Residential customer_____%
Q-4 For target the domestic segment, which way the Advantages are more to deals
with?
o Quality Conscious:_____%
o Price Conscious:_____%
Q-9 Do you aware about Blue Star Air-conditioner? What you know? [List down]
Q-10 Are you interested to deal with Blue Star Limited if it satisfies your demand?
Q-11 Can Blue Star ACs compete other brands if it will target the domestic segment
through Retail Channels? Or can be most selling brand? [Note the opinion]