You are on page 1of 60

A

WINTER TRAINING REPORT ON


“STUDY THE SCOPE OF SUCCESS TARGETING THE DOMESTIC SEGMENT THROUGH
RETAIL CHANNELS FOR BLUE STAR AIR-CONDITION”

AT

“BLUE STAR LIMITED”

SUBMITTED BY:
PATEL LAKHAN A.
T.Y.B.B.A. [MARKETING]
Roll No.-15

SUBMITTED TO:

S.S. AGRAWAL COLLEGE OF ARTS, COMMERCE & MANAGEMENT.


NAVSARI.

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.

S.S. Agrawal college of Arts Commerce & Management.


1
Declaration
I, the undersigned here by declare that the project report on winter training at “Blue
Star Limited”. And submitted by me to the S.S.Agrawal college, towards the partial fulfillment
of the BBA in the year 2009-2010. This is an original report work and the report written is
based on the knowledge and material gained from the company.

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.

Name: Patel Lakhankumar Amarutlal.

Date:

Place: Blue Star Limited.

S.S. Agrawal college of Arts Commerce & Management.


2
Acknowledgement
Project is way to get practical knowledge I really want to thank those people who
stood by me & helped me a lot for my project work I would like to express few words

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.

I am very much thankful to Mr. Manish Chaudhary, Marketing Manager at Baroda


who gave me the knowledge regarding my Project Report.

Each and every employee at Blue Star is very co-operative and helpful. They made this
experience unforgettable.

S.S. Agrawal college of Arts Commerce & Management.


3
Objectives
 The main objective of my project work is to give useful suggestions to “Blue Star Limited”
regarding new target segment i.e. Domestic Segment that through Retail Stores and its
results.
 To improve my skills with global experience at “Blue Star Limited”.
 How to talk effectively with respondent and get maximum knowledge or information from
the Respondents through meeting them personally and through telephone.

S.S. Agrawal college of Arts Commerce & Management.


4
Limitations of Study
1. Time period was very short for conduct the survey at Surat city, find out the respondent,
collect the answers from them, then analysis it and prepare the Project Report.
2. Some of the respondents are not able to give any kind of information because of their top
management has strictly regarding their rules & regulation.
3. Looking to the routine academic activities running parallel with the course sufficient time
is not provided to study the subject.
4. Busy schedule of the Marketing Manager because most of time they are on tour for
marketing purpose.
5. Cost was again the major obstacle in conducting the project report.
6. During the survey finding out the Retail Stores in Surat And that to in limited period of
time so I just collect 20 samples from different areas.

S.S. Agrawal college of Arts Commerce & Management.


5
Synopsis
Management is the blood of each business & is universal phenomenon. I know the
importance of management. In our academic institution we comes to know about the theories
of Business Management, but it remains incomplete if it is not supported by the practical
knowledge we are doing this project work to correlate theory with real life situation.

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.

In this project work sampling method to be used to convenience sampling have


freedom to choose whenever I find sample size will be about 20 because it is easy to calculate
& less time consuming.

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.

Roll No. : - 15.

T.Y.B.B.A:-VI SEM. [Marketing].

YEAR:-2009-2010.

S.S. Agrawal college of Arts Commerce & Management.


6
List of Figures

FIGURE NO. SUBJECT


Figure 1. Availability at Retail Stores.

Figure 2. Demand Pattern.

Figure 3. Gender.

Figure 4. Age Level.

Figure 5. Customer Type.

Figure 6. Target Through.

Figure 7. Consumer Buying Behavior.

Figure 8. Maximum Selling Brand.

Figure 9. Respondent Favourate Brand.

Figure 10. Brand Awareness.

Figure 11. Deal with Blue Star Limited.

Figure 12. Respondent’s Suggestion.

S.S. Agrawal college of Arts Commerce & Management.


7
Table of Content

NO. PERTICULERS PAGE NO.


1 Declaration
2 Acknowledgement
3 Objectives
4 Limitations of Study
5 Synopsis
6 Research Methodology 1&2
7 History "Blue Star Limited" 3 to 5
8 Company Profile 6 to 18
9 Industrial Scenario 19
10 Topic Introduction 20
11 Analysis of Data 21 to 34
12 Conclusion 35
13 Recommendation 36 & 37
14 Bibliography 38
15 Appendix 39 & 40

S.S. Agrawal college of Arts Commerce & Management.


8



S.S. Agrawal college of Arts Commerce & Management.
9
Research Methodology
INTRODUCTION:

The term “RESEARCH” consist of two words: RESEARCH = RE + SEARCH.

“Re” means again and again and “Search” means to find out something, the following is the
process:

Person Phenomena Conclusion

Observe again and again collection and analysis of data

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”.

RESEARCH METHODOLOGY PROCES:

1st Step: Problem Identification.

2nd Step: Research Design.

3rd Step: Sampling and Data Collection.

4th Step: Data analysis.

5th Step: Prepare the Project Report.

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.

S.S. Agrawal college of Arts Commerce & Management.


10
RESEARCH DESIGN:
Here the design of Research is “Descriptive Research” because it includes study of
“Market Share”.

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.

S.S. Agrawal college of Arts Commerce & Management.


11
S.S. Agrawal college of Arts Commerce & Management.
12
HISTORY:

Blue Star was founded in 1943, by Mohan T Advani, an entrepreneur of exemplary


vision and drive. The Company began as a modest 3-member team engaged in reconditioning
of air conditioners and refrigerators.

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

S.S. Agrawal college of Arts Commerce & Management.


13
strength crossed the 1000 mark and the company went public in 1969 to become Blue Star
Limited, as it continues to be called today.

In 1970, the Company took up the all-India distributorship of Hewlett-Packard


products, a business relationship which continues today and has grown ever stronger through
the years. As the Company's reputation for delivering the goods in the most challenging of air-
conditioning projects grew steadily, the early seventies saw a series of prestigious projects
being entrusted to Blue Star - skyscrapers such as Air India Building, Express Towers, the
Oberoi Hotel in Mumbai, apart from several others. Revenues touched the Rs. 10-crore mark
and staff strength doubled to exceed 2000.

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.

The nineties witnessed India entering an era of economic liberalization and an


upsurge in competition as the dynamic business scenario attracted the world's most forward-
looking corporations. It was time to re-look at existing business competencies, re-engineer

S.S. Agrawal college of Arts Commerce & Management.


14
those that were obsolete and forge ahead in acquiring new business competencies. Blue Star
was more than equal to the challenge and expansion continued unabated.

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.

S.S. Agrawal college of Arts Commerce & Management.


15
COMPANY PROFILE:

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.

It fulfills the air-conditioning needs of a large number of corporate and commercial


customers and has also established leadership in the field of commercial refrigeration
equipment ranging from water coolers to cold storages. The Company has also started
offering Electrical Contracting and Plumbing & Fire Fighting Services. Blue Star's other
businesses include marketing and maintenance of hi-tech professional electronic and
industrial products.

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:

S.S. Agrawal college of Arts Commerce & Management.


16
MANUFACTURING DIVISION

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.

Bharuch Plant Dadra Plant

Thane Plant

S.S. Agrawal college of Arts Commerce & Management.


17
MISSION STATEMENT

“To be a reputed,

Profitable and growth oriented

Engineering Company.

Employing people to take pride in

Satisfying customer needs with superior

Product & services.”

S.S. Agrawal college of Arts Commerce & Management.


18
VISION STATEMENT

“To deliver a world class


customer experience”

S.S. Agrawal college of Arts Commerce & Management.


19
YEAR EVENT
1943 Mohan T Advani establishes Blue Star Engineering Company as a proprietary
firm
1946 Blue Star secures Melchior Armstrong Dessau agency
1947 Worthington selects Blue Star as Indian Partner. Manufacturing of ice candy
machines and bottle coolers begins. Central air-conditioning system design
and execution begins
1948 Manufacture of water coolers commences
1949 Proprietorship converted to Private Limited Companies
1954 Blue Star selected as distributor for Honeywell
1955 GDR Testing machines distributorship begins
1957 Perkin-Elmer tie-up marks the start of the electronics business. GDR
business machines agency commences
1960 Total Income crosses the Rs 1 crore mark
1962 GDR Machine Tools distributorship begins
1964 Total employment crosses 1,000
1965 Techniglas Pvt. Ltd. set up to manufacture insulation material
1969 Factory moves from Colaba in Mumbai to Thane
1970 Hewlett- Packard distributorship commences
1972 First skyscrapers of Mumbai – Air India Building, Express Towers and Oberoi
Hotel set-up – all air-conditioned by Blue Star
1972 Total Income crosses Rs 10 crores. Employment crosses 2,000
1974 Water Cooler manufacturing license granted to Yusuf Alghanim, Kuwait
1977 Middle East thrust begins. Joint Venture (JV) with Al Shirawi in Dubai
1977 Hitachi Medical Equipment distributorship begins

1978 Industrial Division commences activity


1980 Bharuch Factory set up
1980- 86 Major AC and R projects executed in the Middle East
1983 International Software Division inaugurated in Seepz
1984 York technology collaboration begins
1985 Manufacture of centrifugal packaged chillers commences at Thane Plant
1986 Total Income crosses Rs 100 crores
1987 Yokogawa Blue Star JV formed

S.S. Agrawal college of Arts Commerce & Management.


20
1987 Gandhinagar factory set up for EPABX systems
1988 Blue Star becomes India’s largest central air-conditioning company
1988 Manufacturing collaboration with Mitsubishi
1988 Assembly of personal computers under the brand name ‘Quantum’ begins
1989 JV with Hewlett-Packard and Motorola
1990 Gandhinagar factory closes
1992 Total Income crosses Rs 200 crores
1992 Blue Star exits from Motorola JV
1993 Formation of Arab Malaysian Blue Star JV in Malaysia
1995 Blue Star exits from HP India JV
1997 Dadra Plant inaugurated
1998 Major thrust on dealerisation and brand building begins
1999 Blue Star exits from Industrial Projects business
2000 International Software business spun off to form Blue Star Infotech, listed
on stock exchanges
2001 Total Income crosses 500 crores. Export of air-conditioning products begins
2003 Blue Star exits Yokogawa JV
2005 Blue Star sets up new factory at Kala Amb in Himachal Pradesh
2006 Total Income crosses the Rs 1000 crores mark
2006 Blue Star opts for a 5 for 1 stock split
2007 Blue Star sets up its fifth factory at Wada, Thane District
2008 Blue Star powers into Building Electrification. Acquires Naseer Electricals, a
leading Electrical Contractor
2008 Total income crosses Rs. 2000 Crores.

S.S. Agrawal college of Arts Commerce & Management.


21
GUIDING VALUES & BELIEF

S.S. Agrawal college of Arts Commerce & Management.


22
S.S. Agrawal college of Arts Commerce & Management.
23
Ashok M Advani Executive Chairman
Suneel M Advani Vice Chairman & Managing Director
Satish Jamdar Managing Director
T G S Babu Deputy Managing Director
Vir S Advani President - Corporate Affairs & Special Projects
Avinash Pandit President - Electro Mechanical Projects Group
B Thiagarajan President - Channel Business Group
J M Bhambure Executive Vice President - R&D and Manufacturing
Manek Kalyaniwala Executive Vice President - Finance
Arun Khorana Executive Vice President - Professional Electronics & Industrial
Systems Division
A S Dawood Corporate Advisor - Electrical Projects Division
R Aravindan Vice President - Packaged Airconditioning Division
Sumanta Chaudhuri Vice President - Electrical Projects Division
R G Devnani Vice President - Dadra & Bharuch Plant
Harish Govind Vice President - Human Resources & Administration
P Venkat Rao Vice President - Room Airconditioners & Refrigeration Products
Division
D H Roy Vice President – Wada & Himachal Plants
D P Singh Vice President - Infrastructure Projects Division
K P Sukumar Vice President - Airconditioning & Refrigeration Service Division
K P T Kutty Company Secretary

S.S. Agrawal college of Arts Commerce & Management.


24
LINES OF BUSINESS:

[I] Central Air-conditioning:

It involves manufacturing, installation, commissioning and


servicing of central air-conditioning plants, packaged Air
conditioner and ducted split Air conditioner.
It continues to be the market leader in central air-
conditioning.
To offer the most advanced air-conditioning technologies, Blue Star has entered into
several technical collaborations with leading international giants like York
International, USA, Rheem Manufacturing Co., USA and Climatrol, Italy for
manufacturing air-conditioning equipment.
Blue Star has successfully executed several prestigious projects in the software, power,
hospitality, healthcare and the pharmaceutical industries. Some of the central air-
conditioning customers include Govt. of India, Grand Hyatt, Dr Reddy’s Laboratories,
ICICI, Bombay Stock Exchange, General Motors, Reliance, Glaxo, Wipro, Siemens etc.
With a market share of approximately 32%, this line of business is surely poised for
further growth.

[II] Refrigeration & Air-conditioning Products:

S.S. Agrawal college of Arts Commerce & Management.


25
Blue Star offers a wide range of contemporary window and split Air conditioner, with a
focus on the corporate and commercial segment. These Air conditioners are ideal for light
commercial segments such as showrooms, fast food joints, jewelers, cyber cafes,
departmental stores, and restaurants.
The Company also manufactures and markets a wide range of commercial refrigeration
products and services that cater to the industrial, domestic and hospitality sector. The
products include Water Coolers, Bottled coolers, Deep Freezers, Cold Storages, Milk
Coolers and Commercial Kitchen and Laundry equipment.
Blue Star pioneered the manufacture of water coolers in India way back in 1948 and are
the market leaders today. The Company offers the widest range of water coolers in the
country.
The water coolers have various unique features, which include all stainless steel body,
power saving insulation, a sturdy compressor and extra large waste water tray. Blue Star
is also the largest exporter of water coolers in India.
Blue Star offers custom-built modular cold storages for a wide range of applications. With
technical collaboration from Kolpak, USA and Heat Craft, USA, the cold storages are
designed using the latest technology
The cold rooms are engineered to meet the specific needs of various industries like
hotels, floriculture, pharmaceutical, hospitals and many others.
Blue Star has to its credit many reputed customers in this segment including Pepsi, Coca
Cola, McDonald’s, Domino’s Pizza, Amul, Baskin Robbins and HLL amongst others.

S.S. Agrawal college of Arts Commerce & Management.


26
CORPORATE WEBSITE
The corporate website “www.bluestarindia.com” was launched in early 2000. the website
provides information about the company as well as products and services offered. The unique
feature of the website is its information library educating the customers on various facets of
air-conditioning and refrigeration, along with answers to many frequently asked questions. It
provides in-depth information on comfort air-conditioning, indoor air quality and benefits of
refrigeration apart from tips on how to bring down electricity costs. It also contains a section
on investor relations where investor can log on and get their queries replied through e-mail.

S.S. Agrawal college of Arts Commerce & Management.


27
LOCATIONS:

S.S. Agrawal college of Arts Commerce & Management.


28



S.S. Agrawal college of Arts Commerce & Management.
29
INDUSTRIAL SCENARIO

Air-conditioner Industry now becomes very competitive. There are so many


competitors in this industry. For Blue Star Limited there are some strong competitors standing
in front of them like LG, Samsung, Voltas, ONIDA, and Videocon. Let’s see the latest data of
Market Share in Air-condition Industry.

Rank Brand Name Market Share


1 LG 23%

2 Samsung 15%

3 Voltas 14%

4 ONIDA 11%

5 Videocon 9%

6 Blue Star 8%

7..... Other 20%

Market Share

Other LG
20% 23%
Blue Star
8%
Samsung
15%
Videocon Voltas
9% 14%
ONIDA
11%

S.S. Agrawal college of Arts Commerce & Management.


30
TOPIC INTRODUCTION:

“Study the scope of success targeting the domestic segment through Retail Channel
for Blue Star Air-conditioner”.

NEED FOR SURVEY:

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.


31



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.

Q-1 Brands Available:


o PURPOSE: To evaluate that dose availability factor affects Market Share.

Brands Total Sample availability Percentage


Samsung 20 18 90%
LG 20 19 95%
ONIDA 20 12 60%
HITACHI 20 9 45%
Whirlpool 20 4 20%
Panasonic 20 6 30%
Videocon 20 7 35%
Electrolux 20 3 15%
Ken star 20 4 20%
Voltas 20 7 35%
Mitsubishi 20 4 20%
Godrej 20 6 30%
Blue Star 20 1 5%
O-General 20 2 10%
Carrier 20 2 10%

Availability at Retail Stores


100 90% 95%
80
60%
Percentage

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.

S.S. Agrawal college of Arts Commerce & Management.


34
Q-2 Demand:

o PURPOSE: To identify the demand pattern of Air-condition for making Production


Strategies.

Demand Actual (%) Out of (%)


Seasonal 62% 100%
non-seasonal 38% 100%

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.

S.S. Agrawal college of Arts Commerce & Management.


35
Q-3 Customer:

o PURPOSE: To identify the dominance towards buying decision, To identify the leading
segment whether it is domestic or commercial.
 GENDER:

Gender Actual (%) Out of (%)


Male 92% 100%
Female 8% 100%

Female Gender
8%

Male
92%

FIGURE 3.

S.S. Agrawal college of Arts Commerce & Management.


36
 AGE LEVEL:

Age Level Actual (%) Out of (%)


Less than 25 0% 100%
25 to 50 100% 100%
More than 50 0% 100%

Age Level
100%

100

80
Percentage

60

40

20 0% 0%

0
Less than 25 25 to 50 More than 50
Age

FIGURE 4.

S.S. Agrawal college of Arts Commerce & Management.


37
 CUSTOMER SEGMENT:

Customer Actual (%) Out of (%)


Commercial 37% 100%
Domestic 63% 100%

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%.

S.S. Agrawal college of Arts Commerce & Management.


38
Q-4 For target the domestic segment, which way the Advantages are more to
deals with?

o PURPOSE: From where Domestic Customer are prefer to purchase Air-conditioner.

Target Through Actual (%) Out of (%)


Retail Stores 100 100
Private Stores 0 100

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%.

S.S. Agrawal college of Arts Commerce & Management.


39
Q-5 Consumer Buying Behavior:

O PURPOSE: Making important decision regarding Pricing or Product Design. And identify
any possibility in changing Pricing Strategy.

CBB Actual (%) Out of (%)


Price Conscious 72% 100%
Quality Conscious 28% 100%

Consumer Buying Behavior

Quality
Conscious
28%
Price
Conscious
72%

FIGURE 7.

INTERPRETATION:
o In Surat there are 72% customers are Price Conscious and 28% are Quality Conscious.

S.S. Agrawal college of Arts Commerce & Management.


40
Q-6 Kind of Question they ask:

o PURPOSE: To know the demands of customer.


o Following are the questions[demand] they ask:
1. Star Rated.
2. Feature.
3. Service.
4. Power Consumption.
5. Life of Machine.
6. Warranty.
7. Price.

S.S. Agrawal college of Arts Commerce & Management.


41
Q-7 Maximum selling brand and Why?

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%

Maximum Selling Brand


35
30
25
Axis Title

20
15
10
Percentage
5
0

Brands

FIGURE 8.

S.S. Agrawal college of Arts Commerce & Management.


42
INTERPRETATION:
o Samsung is the maximum selling Brand in 30% of the Retail store of Surat.
o Voltas in 20%.
o Hitachi & Onida in 15%.
o Panasonic, Mitsubishi, LG, Videocon in 5%.

REASON WHY THE PARTICULAR BRANDS ARE MOST SELLING:

1. Retail Store owner suggest customer to purchase the particular Brand.


2. Competitive Price.
3. Potential Customer.
4. Low power Consumption.
5. Silent in voice.
6. Quick Availability.
7. Cooling.
8. Brand name.
9. Flexibility in target.
10. Low complain.

S.S. Agrawal college of Arts Commerce & Management.


43
Q-8 Which is Respondent’s Favourate Brand? Why?

o PURPOSE: To know the Respondent’s demand.

Brands Actual Out of Percentage


Samsung 6 20 30%
Voltas 5 20 25%
Onida 4 20 20%
Hitachi 3 20 15%
Panasonic 1 20 5%
Mitsubishi 1 20 5%

Favourate Brand
30%
30 25%
25 20%
Out of 100 %

20 15%
15
10 5% 5%
5
0

Brands

FIGURE 9.

INTERPRETATION:

o 30% of respondent’s Favourate brand is Samsung in Surat area.


o Voltas with 25%
o Onida with 20%.
o Hitachi with 15%.
o Panasonic and Mitsubishi with 5%.

S.S. Agrawal college of Arts Commerce & Management.


44
REASON WHY THE PARTICULAR BRANDS ARE MOST FAVOURATE BRANDS:

1. Maximum selling brand.


2. Price Margin.
3. Very low complain from customer.
4. Quick back up service.
5. Surprise gift after achieving such target. E.g. Tour, Watches………
6. Good response & good relationship.

S.S. Agrawal college of Arts Commerce & Management.


45
Q-9 Do you aware about Blue Star Air-conditioner? What you know?

o PURPOSE: To identify the brand awareness & their thinking towards Blue Star’s Air-
conditioner.

Brand Awareness Actual Out of Percentage


Yes 20 20 100%
No 0 20 0%

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.

THEY KNOW ABOUT BLUE STAR IS:

1. Brand Name.
2. Quality wise good.
3. Good performance for long time.

S.S. Agrawal college of Arts Commerce & Management.


46
Q 10 Are you interested to deal with Blue Star Limited if it satisfies your
demand?

o PURPOSE: To know the readiness of them to deals with Blue Star or scope of response of
them.

Deal with Blue Star Actual Out of Percentage


Yes 16 20 80%
No 2 20 10%

Can't Say 2 20 10%

Deal with Blue Star


Can't Say
10%

No
10%

Yes
80%

FIGURE 11.

INTERPRETATION:

o 80 % of the Respondents are ready to Deal with Blue Star Limited.


o 10% says no because 1. Not interested. 2. Continue with available Brands only.

S.S. Agrawal college of Arts Commerce & Management.


47
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?

o PURPOSE: For receive their response towards this concept of targeting domestic
segment through retail channel.

Market Share Actual Out of Percentage


Increase 19 20 95%
Decrease 0 20 0%
Can't say 1 20 5%

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.

“HERE THE END WITH ANALYSIS PART”

S.S. Agrawal college of Arts Commerce & Management.


48


S.S. Agrawal college of Arts Commerce & Management.
49
CONCLUSION

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.

S.S. Agrawal college of Arts Commerce & Management.


50


S.S. Agrawal college of Arts Commerce & Management.
51
RECOMMENDATION

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%.

All these three company is targeting domestic as well as commercial customer


means they are attending 100% market, While Blur Star Limited attending 40% of the
market of Commercial segment only.

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.

S.S. Agrawal college of Arts Commerce & Management.


52
o Most of the entire respondent’s requirement is for the price margin, target scheme,
availability of parts on the spot.
o I hope that my project report make you satisfied and the suggestions are easy to
understand.
o After the 2 years I can see that Blue Star Limited is leading the market in Air-
conditioner.
o Below is the figure of market share of Blue Star Limited after 2 years.

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.

S.S. Agrawal college of Arts Commerce & Management.


53


S.S. Agrawal college of Arts Commerce & Management.
54
BIBLIOGRAPHY

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

The systematic information about company’s profiles and much other


information are from:

o Company prospectors, pamphlets & company’s files.

S.S. Agrawal college of Arts Commerce & Management.


55


S.S. Agrawal college of Arts Commerce & Management.
56
APPENDIX

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:

o Seasonal :_________( give the particular season).


o Non seasonal:________

Q-3 Customer:

o Male:_____%
o Female:_____%
o Age group :_____< 25, _____25<x<50, _____>50.
o Residential customer_____%

S.S. Agrawal college of Arts Commerce & Management.


57
o Commercial customer_____%

Q-4 For target the domestic segment, which way the Advantages are more to deals
with?

o Retail stores _____.


o Private stores_____.

Q-5 Consumer behavior:

o Quality Conscious:_____%
o Price Conscious:_____%

Q-6 Kind of Question they ask: [list down]

Q-7 Maximum selling brand and why? [List down]

Q-8 Which is Respondent’s Favourate Brand? Why? [List down]

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?

o Yes: ____, No: ____.

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]

S.S. Agrawal college of Arts Commerce & Management.


58
S.S. Agrawal college of Arts Commerce & Management.
59
S.S. Agrawal college of Arts Commerce & Management.
60

You might also like