Professional Documents
Culture Documents
accessible to both the largest concentration of the local community. It will offer a wide
computer service and computer rentals by the hour, and networking services. SM
excellent service, carrying items that are not locally available, and furnishing a warm,
The timing is right for starting this new venture. Presently, there is only one other
computer store in these districts that handles IBM-compatible computers, and that store
focuses primarily on computer service, not hardware sales. It will offer solutions to the
community not provided by any of our competitors. With over 8 years of experience in
the computer industry, information industry, management and retail, they have the skills
1
1.2 PROBLEM IDENTIFIED
SM Computers will revolve around the need to provide quality products and
services to our various target customers. This shall be undertaken through the
economy.
2
1.3 SCOPE FOR THE STUDY
repair, networking, and in-store computer stations where clients can buy time to
browse the Internet, check e-mail, and download their digital photos from their
3
1.4 OBJECTIVES OF THE STUDY
service. This dictates that we have the latest technology, hardware, software, and
2. Timed response to clients' orders: we cannot afford to delay our clients for
whatever reason, as this will have a negative bearing on our image, reputation,
3. Skill and depth of knowledge: Considering the nature of our services and
their relative infancy on the market, the skill and depth of knowledge of our
the end-users.
4
1.5 LIMITATION OF THE STUDY
Every effort and care has been taken to overcome the limitations and to make the study
useful.
4. It might be possible that the answers given by the respondents are full of biasness.
5. The sales and service coordinator of the company could not give much of his time
5
CHAPTER – 2
COMPANY PROFILE
SM COMPUTERS PVT LTD, CHENNAI
6
dimensions and spirit to the organization with his single minded obsession to take SM
Computers to the top. Both they have vigorously and industriously explored an enviable
niche for SM Computers in the world of cable industry.
With its head office in the heart of Chennai, a full fledged company well equipped
with all modern facilities and energetic technical & commercial staff with sales network
in Chennai, Bangalore and Hyderabad. We have built the operational infrastructure
necessary to sustain that growth with a planned balance of products, pricing, and people.
Our PC specialists can help you assess your needs, and assist you in purchasing,
upgrading, installing and networking your personal computers. Metro sells brand name
components and peripherals such as Intel® processors and motherboards, and software
from Microsoft® and Novell®.
SM Computers prides itself in providing the latest top brand equipment to our
customers. From the latest desktop and notebooks PCs through to projectors and
plasmas, Hire Intelligence has one of the largest ranges of leading IT and audio visual
equipment available for short term hire. We can deliver, install, configure and set up your
equipment.
Our marketing strategy will be based mainly on ensuring that clients know what
need the service(s) is able to fulfill, and making the right service and information
available to the right target client.
We intend to implement a market penetration strategy that will ensure that our
services are well known and respected in our respective industry. Our strategy will
convey a sense of quality and satisfaction in every picture, every promotion, and every
7
publication. Our promotional strategy will involve traditional advertising, Internet
marketing, personal selling, public relations, and direct marketing, details of which are
provided in the marketing section of this plan.
Our Staff
While being experienced and certified are important, we also focus on finding
ways to improve our services to you. Your feedback is one of the most valuable tools we
could ever have to achieve this.
Our Service
We respond quickly!, Whether it is turning up on time for onsite service,
purchasing a product from us or having a website created, we know your time is valuable.
Our Products
SM Computers Computer Services stocks a comprehensive range of computer
hardware and software, and if we don't have what you need in stock we will get it in for
you. We are constantly working to keep our products competitive in price, so there is
always products to suit your budget.
Independent Advice
Advice you receive from SM Computers Computer Services is focused on your
computer needs and to save you time and money.
It is important to recognize that make our intangible resources, such as our ability
to relate to customers regarding their needs and wants, management style, corporate
culture and commitment. These elements will differentiate us from our competitors and
contribute towards the development of a sustainable competitive advantage.
8
"The company is dedicated to leveraging emerging technologies to provide the highest
level of quality products and services, customer service, and security."
OUR MISSON
9
Smart business people need to find quality vendors of reliable hardware, software,
service, and support. They need to use these quality vendors as they use their other
professional service suppliers: as trusted allies.
The Super Home is our smallest and least expensive line, initially positioned by its
manufacturer as a home computer. We use it mainly as a cheap workstation for small
business installations.
The Power User is our main up-scale line. It is our most important system for high-end
home and small business main workstations.
The Business Special is an intermediate system, used to fill the gap in the positioning. In
peripherals, accessories and other hardware, we carry a complete line of necessary items
from cables to forms to mousepads.
Competitive Comparison
The only way we can hope to differentiate well is to define the vision of the company to
be an information technology ally to our clients. We will not be able to compete in any
effective way with the chains using boxes or products as appliances. We need to offer a
real alliance.
10
The benefits we sell include many intangibles: confidence, reliability, knowing
that somebody will be there to answer questions and help at the important times.
These are complex products, products that require serious knowledge and
experience to use, and our competitors sell only the products themselves.
Unfortunately, we cannot sell the products at a higher price just because we offer
services; the market has shown that it will not support that concept. We have to also sell
the service and charge for it separately.
Sales Literature
SM Computers will start with some basic self-generated literature to establish initial
positioning:
• Logo and theme - A national catalog sales paper goods company has a
wonderful line of blank papers with a computer theme that will serve as the
"look" for SM. A graphic artist friend of the owner has already commenced
work on a matching logo.
• Stationery - The theme paper is available in various formats for use as
company stationery.
• Brochure - Likewise, pre-printed paper is available, along with software
templates for generating brochures
• Web Presence - Eventually a website will be developed as an "electronic
brochure" as well as a resource site for the owner's established client base.
• Response Templates - As common problems/solutions are encountered
and solved, a set of standardized templates for initial responses will be
developed. This will shorten response time and eliminate confusion in providing
quick solutions to routine issues.
11
Fulfillment
Our costs are part of the margin squeeze. As competition on price increases, the
squeeze between manufacturers' price into channels and end-users' ultimate buying price
continues.
With the hardware lines, our margins are declining steadily. We generally buy at
our margins are thus being squeezed from the 25% of five years ago to more like 13-15%
at present. In the main-line peripherals a similar trend shows, with prices for printers and
monitors declining steadily. We are also starting to see that same trend with software.
12
Technology
We have for years supported both Windows and Macintosh technology for CPUs,
although we've switched vendors many times for the Windows (and previously DOS)
lines. We are also supporting Novell, Banyon, and Microsoft networking, Xbase database
software, and Claris application products.
We must remain on top of the new technologies, because this is our bread and
butter. For networking, we need to provide better knowledge of cross platform
technologies. Also, we are under pressure to improve our understanding of direct-connect
internet and related communications.
13
CHAPTER 3
INDUSTRY PROFILE
Computer Industry
This is now a matured industry sector in the country at least as far as various
application segments is concerned. State-of-art and reliable SCADA, PLC/Data
Acquisition systems are being applied across various sections of the process industry.
Latest AC drive systems from smaller to very high power levels also find application in
large engineering industries like steel plants and/or metal industries.
World class UPS systems are being manufactured in the country to cater to the
need of the emerging digital economy. However, it appears there is really no
manufacturing base in the country for the whole range of the latest test and measuring
instruments which are invariably procured from outside. A good number of Indian
14
companies in the control and instrumentation sector are able to acquire orders for export
systems through international competitive bidding.
However, the creation of knowledge base in the country through industrial R&D in this
critical sector has not been improving as desired. There is still lack of needed R&D
activities by the industry looking at the global market.
On the part of Department of Information Technology some of the latest
technology development and applications in this area include Intelligent SCADA
Systems for monitoring and control of Mini Hydel plants, Advanced Traffic Control
System for urban transportation, Intelligent Power Controllers for improvement of quality
of electric power, etc. These systems have been successfully developed and applied in
real field conditions.
A fully functional video Controller was also designed and developed to match the
Logic Circuits of the PDP Panel. In the year 2006, the company plans to begin selling
commercially the PDP Panels developed completely inhouse and the focus there on will
be to create low cost products through Technological breakthroughs. The color glass
parts manufacturer implemented major expansion of its capacity to meet increased local
requirement due to substantial growth in CPT production. The unit also started
manufacture of glass parts for pure flat tubes as the demand for such tubes increased due
to one more unit launching production during the year. Both the existing manufacturers
of B/W glass parts continued the production of colour funnels in their existing lines.
15
They were also planning to make large investment to set up manufacturing
facilities for colour panels in near future. A number of existing units imported capital
goods under various schemes for expansion of their capacities in PCBs, connectors, cable
assemblies, colour picture tubes, compact disc, glass parts for colour picture tubes, etc.
Corporate Catalyst India A report on Indian Electronics Industry
Evolution of Marketing
At the beginning of the century, social life was mostly local. It was followed by a
period in which commodities were produced on a mass scale. Consumer Marketing
operated on mass marketing principles and business primarily concerned itself with how
to build the best sales force. At the end of the century, there is an emerging global
culture. The major driver of these changes is technology.
Technological change has moved steadily back focusing on the individual. These
changes shape the possibility and conduct of business. Marketing is especially tied to
communication and transportation revolution. As the tools and reach of marketing
increase, the job and responsibilities of marketers have evolved with them.
Kotler formalized this evolution with his book "Marketing Management." His key
stages are production, sales and brand management. Each of these is strongly motivated
by technological opportunities, which permit new methods and new opportunities. A
fourth stage, a focus on the individual customer, is also important. As the new technology
of the Internet develops, it reinforces the new marketing emphasis - which in many ways
is a return to business at the turn of the century.
IT hardware, primarily the desktop, has been driving for the new economy.
Starting from wealth creation to improving quality of life for all sections of society, it has
been one of the major contributors to the Indian electronics hardware. The computer
segment is one of the fastest growing segments of the electronics industry. The percent
share of this segment in the total electronics hardware industry has increased from 11
percent in 2002-2003 to 18 percent in 2004-2005.
The Total Market (TM) for semiconductors in India in 2005 is estimated at $2.82
billion and the IT hardware and office automation market accounts for about 27.6 percent
of the TM. The Total Available Market (TAM) for semiconductors in India was valued at
$1.14 billion in 2005 and the IT hardware and office automation market accounts for 51.7
percent of the TAM. The higher manufacturing activity in the desktops industry reflects
in the higher share of the TAM for the IT hardware and office automation market.
17
The study has covered the major products in the IT hardware and office
automation namely desktops, monitors, Desktops, printers, keyboards and photocopiers.
Desktops account for the highest share in the IT hardware; and OA segment for a
monopolistic share of about 86 percent in TM in 2004 and would continue to lead the
segment even by 2010, Monitors comprise the second largest segment followed by
Desktops, photocopiers, printers and keyboards. Microprocessors account for the largest
share in the semiconductor TAM in IT and OA segment followed by memory and ASICs.
The share of the microprocessors and memory would continue to increase compared to
the other semiconductor types due to the growth in desktop segment.
The semiconductor market for IT hardware and OA segment has benefited from
the robust growth in the desktop industry. The IT hardware and OA segment is the
second largest segment, next to communications, which takes the first place in the overall
TM considering all the application segments. In TAM, IT hardware and OA segment is
the leader as the consumption of processors and memory, which are high value
semiconductors and are purchased in India irrespective of the place of manufacturing.
The low desktop/ PC penetration rate provides ample opportunities for the
desktop sales and is expected to propel IT hardware and OA segment to be one of the
major segments in the semiconductor market during the forecast period.
18
Figure 1:IT hardware and office automation market: TM and TAM revenue
forecasts
(India), 2003–2015
IT Industry in India
19
billion. This includes IT services, software products and services, IT enabled
services and e-businesses.
HCL Infosystems Ltd, Wipro Ltd., Zenith Computers, PCS Industries Ltd., Acer,
TVS Electronics, D-link Industries, Microtek Devices are some of the renowned Indian
computer hardware and peripheral device manufacturers in India. IBM, Hewlett Packard,
Dell, Epson, Canon are multinational corporations in computer hardware and peripherals
operating in India.
20
IT Software Industry in India
IT software industry has witnessed phenomenal growth in the last decade. During
the decade 1990-2000 the software industry in India grew from US $ 150 million to US $
5.7 billion. Satyam, Infosys, Wipro and TCS are some of the leading Indian software IT
companies.
21
Meaning of sales: A contract involving transfer of possession and ownership of goods
or property, or the entitlement to a service, in exchange for money or value is termed as
sales. A sale is the pinnacle activity involved in selling products or services in return for
money or other compensation. It is an act of completion of a commercial activity.
A sale is completed by the seller or the owner of the goods. It starts with consent
(or agreement) to an acquisition or appropriation or request followed by the passing of
title (property or ownership) in the item and the application and due settlement of a price,
the douche of or any claim upon the item.
The purchaser, though a party to the sale does not execute the sale, only the seller
does that. To be precise the sale completes prior to the payment and gives rise to the
obligation of payment. If the seller completes the first two above stages (consent and
passing ownership) of the sale prior to settlement of the price, the sale is still valid and
gives rise to an obligation to pay.
While the sales process refers to a systematic process of repetitive and measurable
milestones, the definition of the selling is somewhat ambiguous due to the close nature of
advertising, promotion, public relations, and direct marketing
22
Sales departments often form a separate grouping in a corporate structure,
employing individuals who specialize in sale specific roles.
Selling involves sales which are the pinnacle act of completed of a purchasing
activity. Selling also involves salespeople who are the primary agents of facilitating
sales.
Many believe that the focus of selling is on the human agents involved in the
exchange between buyer and seller. Effective selling also requires a systems approach, at
minimum involving roles that sell, enable selling, and develop sales capabilities. Selling
also involves salespeople who possess specific set of sales skills and knowledge are
required to facilitate the exchange of value between buyers and sellers that is unique from
marketing, advertising ,etc.
From the company point of view, there are three main objectives of sales
management: sales volume, contribution to profit, and continuing growth. Top
management has the final responsibility, because it is accountable for success or failure
of the entire enterprise.
In the process, objectives are translated into more specific goals – they are broken
down and restarted as definite goals that a company has a reasonable chance of reaching.
Once these goals are finalized, it is up to sales force that play critical role in
implementing the selling plans.
23
Essential elements in a valid sale:
(1) Competence of both the buyer and seller to enter into a contract
(2) Mutual agreement on the terms of exchange
(3) A thing capable of being transferred
(4) A consideration in money (or its equivalent) paid or promised.
When both the seller and the buyer perform their respective duties by abiding the above 4
elements of a valid sale, one can say that sale is executed
Who is a seller?
One who sells or initiates contracts to sell goods; the one who transfers property as a
result of a sales contract.
Who is a buyer?
One who buys or agrees to make a purchase or one who has the capacity to finance his
demand and receives property in exchange for money or valuable consideration.
24
payoffs associated with modern technology, such as speed, ease of use, power and
memory, and so on.
The term brand means different things to the different roles of buyer and seller,
with buyers generally associating brand with a product or service, and merchants
associating brand with identity.
Brand can also identify the company behind the specific product -- that's not just
a biscuit, that's Britannia biscuit. This use of brand puts a "face" behind the name, so to
25
speak, even if the "face" is the result of advertising copy and television commercials.
This use of brand also says nothing of quality, just the buyer's exposure to the brand's PR
and media hype.
For the typical merchant, branding is a way of taking everything that is good
about the company -- positive shopping experience, professionalism, superior service,
product knowledge, whatever the company decides is important for a customer to believe
about the company -- and wrapping these characteristics into a package that can be
evoked by the brand as signifier.
Introduction to Branding
26
Consumers lean about the brand with its past experience and the marketing
program. As consumers lives becomes more complicated, time starved the ability of
brand to simplify decision making is invaluable. Brands also perform valuable functions
for the firm. First they simplify the product handling and tracing. Brands help to organize
inventory and accounting records.
The brand name can be protected registered trademarks. The intellectual property
rights ensure that the firm can safely invest in the brand and can reap the benefits over a
long period of time.
Brands can signal a certain level of quality so that satisfied buyers can easily
choose the product again. Brand loyalty provides predictability and security of demand
for the firm and creates barriers to entry that makes it difficult for other firms to enter the
market. This brand loyalty can translate into willingness to pay higher price.
In this sense branding can be seen as powerful means to secure a competitive
advantage. Brands represent enormously valuable pieces of legal property that can
influence consumer’s behavior. Strong brand results in better earnings and profit
performance for firms, which in turn, creates greater value for shareholders.
How do you “BRAND” a product? Although firms provide the impetus to brand
creation through marketing programs and other activities, ultimately a brand is something
that resides in the mind of the consumers. A brand is a perpetual identity that is rooted in
reality but reflects the perceptions and perhaps even the ultimate choice of the consumers.
Branding is endowing products and services with the power of brands.
To brand a product, it is necessary to teach the consumers “who” the product-by
giving a name. Branding involves creating mental structures and helping consumers
organize their knowledge about products and services in a way that clarifies their
decision making and in process provides value to the firm.
27
Branding can be applied virtually anywhere a consumer has a choice. It is
possible to brand:
Brand is the proprietary visual, emotional, rational, and cultural image that you
associate with the company or a product. When you think of Volvo, you think of safety.
When you think of Nike, you think of Michael Jordon or ‘Just Do It’. When you think of
IBM, you think of ‘Big Blue’. The fact that you remember the brand name and have
positive associations with that brand makes your product selection easier and enhances
the value and satisfaction you get from product.
28
CHAPTER 4
Thus formulation of the problem is the first and foremost step in the research
process followed by the collection, recording, tabulation and analysis and drawing the
conclusions. The problem formulation starts with defining the problem or number of
problems in the functional area.
To detect the functional area and locate the exact problem is most important part
of any research as the whole research is based on the problem.
In short, the search for knowledge through objective and systematic method of
finding solution to a problem is research.
29
DRAFTING QUESTIONNAIRE
SAMPLING
30
Sampling universe
The entire respondents are the sampling universe for the research.
Sample was taken on judgmental basis. The advantage of sampling are that it is much less
costly, quicker and analysis will become easier. Sample size taken was 100 employees.
The task of data collection begins after the research problem has been defined and
research design chalked out. While deciding the method of data collection to be used for
the study, the researcher should keep in mind two types of data viz. Primary and
secondary data.
Primary Data
The primary data are those, which are collected afresh and for the first time and
thus happen to be original in character. The primary data were collected through well-
designed and structured questionnaires based on the objectives.
Secondary Data:
The secondary data are those, which have already been collected by someone else
and passed through statistical process. The secondary data required of the research was
collected through various newspapers, and Internet etc.
31
The purpose of this study is to examine the impacts of demographic Factors and
footwear benefits sought on consumer purchasing outcomes in the urban market.
Research results show that age, household size, education, occupation and
income significantly affect amount of money spent, pairs of footwear purchased
and purchase plans, but not average price paid. Gender and residence of
respondent were not significantly related to purchasing outcomes.
The study identified two groups of shoppers seeking significantly different
benefits in purchasing footwear products: the functional shoppers and the alpha
shoppers. As compared to the functional shoppers, alpha shoppers purchased
more pairs of footwear, paid higher price for footwear and spent larger HRK1
amount on footwear. The results are indicative for the segmentation strategy in
the footwear market.
The research also helps footwear manufacturers and retailers to better target
their consumer segments
RESEARCH OBJECTIVE
32
SM Computers intends to win and maintain customers by providing products and
services that add value, safety, and are supported by a well-trained professional team with
commercial expertise.
This is important to the successful implementation of our overall strategy and the
need to ensure that all divisions and functions in the organization are working
harmoniously towards attainment of the goals and objectives.
Our marketing strategy emphasizes focus. The target customers will include key
decision-makers in business, which often order or recommend on behalf of the whole
organization, the aim being to obtain an initial order and fully satisfy the customer from
then on.
We intend to achieve growth by creating a more enthusiastic customer culture than that of
our competitors. The strategy is to grow the business by nurturing customers,
differentiating the product/service offering through service and staff behavior.
33
Marketing Strategy
One core element of our marketing strategy will be that of differentiation from
our competitors. In terms of promotion, we intend to sell our company as a strategic ally,
not just our products. We intend to offer extremely reasonable prices in comparison to
competition, and we need to be able to sustain that. Market penetration through lower
prices shall be undertaken where need be, while premium pricing in the case of the upper-
end of the market.
Distribution Strategy
Service provision and consulting will be sold and purchased mainly on a word-of-
mouth basis, with relationships and previous experience being, by far, the most important
factor. In this regard we intend to provide a service that exceeds customer expectations so
as to ensure they refer us to potential clients through word-of-mouth. New business shall
be developed through industry associations, business associations, and, in some cases,
social associations, such as country clubs.
Marketing Programs
Advertising
In view of the fact that we are new on the market, we intend to undertake
extensive advertising of our name and products and services we offer. This is to instill
awareness and knowledge of our existence in the marketplace, which shall convert into
market share. We intend to advertise in business and IT magazines that are read by our
target market and will ensure we are adequately exposed on the market.
34
Personal Selling
Word of mouth is critical in this segment. We will have to make sure that once we
gain a customer, we never lose him/her. To help accomplish this, we must work to
establish and maintain relationships.
Personal selling will be a powerful form of promotion due to the fact that its
flexibility will enable us to match the customer's needs to specific attributes of our
services, as well as giving concise details of what we are able to offer.
Public Relations
Recognizing that we are relatively new on the market, there will be a need to
organize an event introducing ourselves onto the market. To this we will invite potential
customers, senior officials, possibly including a government minister and other
stakeholders, so as to penetrate the market. In collaboration with this we, also intend to
place news stories and features in magazines and newspapers to keep stakeholders
updated on the latest developments and to increase awareness.
Events
The number of IT companies on the market dictates that the organization needs to
promote itself through participation in trade shows and expositions. Not only will these
increase awareness of our products and services, but if a particular product or service
were to gain recognition, for example through being chosen No. 1 in innovativeness, the
organization will be able to take advantage of this in all its promotional campaigns,
adding leverage to its reputation and corporate image. An example of a trade show we
intend to participate at is BITEC. These expositions will also be a good opportunity for us
to network with various organizations and individuals.
Internet Marketing
The company will sell its services over the Internet as it is cost effective to reach a
large number of potential clients, regionally and internationally. We also realize that
customer/client research is needed before building an effective website, something which
35
is rarely done by existing companies, in order to find out how customers will want to
access information and journey through the site.
Sales Strategy
The derived value of SM Computers will come from the key partnerships
established and developed in order to deliver a product and service provision of
transactional – based activities, providing opportunity to build brand and loyalty, around
which relationship marketing will play a key role.
The annual sales projections are provided in a table below. It should be noted that
as we become established and known on the market we project sales to increase at a
faster rate than the initial year.
2. Computer Service - revenue generated strictly from labor fees, so except for
payroll, there is no sales cost. We estimate a 10% annual increase in this revenue
area from repeat business as a result of customer loyalty.
36
3. Computer Rental Stations - revenue generated from customers renting the
computer stations by the hour. We estimate a 3% annual increase to reflect the
projected increase. This revenue is all profit since it requires no cost for
inventory and it is basically self-service, so requires no labor hours.
37
(in Rs.)
SALES BY YEAR
2,800,000
2,400,000
2,000,000
Product / Services
1,600,000
1,200,000
800,000
400,000
YEAR 1 YEAR 2 YEAR 3
Table 1:
SALES FORECAST
Year 1 Year 2 Year 3
Sales
Products/Services 1,422,225 2,528,400 3,034,080
SALES FORECAST
Year 1 Year 2 Year 3
Sales
39
(in Rs.)
SALES BY YEAR
2,800,000
800,000
400,000
YEAR 1 YEAR 2 YEAR 3
All the findings and conclusions obtained are based on the survey done in the
working area within the time limit. I tried to select the sample representative of the whole
group during my job training. I have collected data from people linked with different
profession at Chennai.
RESEARCH PLAN:
Preliminary Investigation: In which data on the situation surrounding the problems
shall be gathered to arrive at
• The correct definition of the problem.
• An understanding of its environment.
Exploratory Study: To determine the approximate area where the problem lies.
CHAPTER 5
LITERATURE REVIEW
Brand Image
The concept of brand image has been very significant to consumer behaviour from post
1950’s. As Aaker and Keller confirmed in Hsieh’s study that, “brand image has been
40
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 centred 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).
From these definitions a clear trend is appearing with regard to the perception of brand
image with key figures around the mid-nineteen hundreds, supporting a collective view
that an individual takes in a collaboration of ideas that the company puts forward as a
representation of themselves. This allows them to draw a clear conclusion of a company
from a few certain points which strike a cord with the individuals.
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
41
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.
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.
Further, Meenaghan stated that “at the product/brand level the components of
identity are in effect the elements of the marketing mix, which combine to form the
image of the brand in the mind of the consumer” (1995). From this, it is clear that to gain
a strong brand image, one needs to exploit all areas of the marketing mix to achieve what
Oxenfeldt and Swann stressed and that brand image is the key component in establishing
market dominance. Also, Krishman (1996) in Faircloth’s assessment with the aid of the
Landor survey discovered that there is a strong correlation between brand equity and
brand image. The stronger the brand equity, the stronger the brand image and vice versa.
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contend at parity. Another contemporary understanding of brand image was put forward
by Hsieh (2002), who felt that building a brand image based on the identified benefit-
based image dimensions consisted of a set of benefit brand associations. This helped
consumers understand with clarity what a brand can do for them-symbolically,
economically, sensorial or as a utility. White and Hsieh (2002) seem to recognise the key
importance that advertising plays in promoting the elements of a brand image thus
differentiating the brand from rival brands, giving them a competitive advantage.
Due to barriers to entry, a rounded marketing plan focussing on all aspects of the
marketing mix; this also helps to retain a consistent consumer interest.
In this section we will relate how brand image is encompassed in modern organisations
and how they use this as a comparative advantage over there rivals to ensure that they
keep there competitive edge.
Manchester United
In the Brand Strategy journal, the players’ were seen to be key to any clubs brand image.
The actions of players’ and the perception by supporters is hence key to brand image. For
examp le, ex-Man Utd David Beckham opened the Manchester Commonwealth Games
wearing an Adidas sweatshirt. These images were then broadcast across the globe and
this was much more powerful then his endorsement through advertising. (Brand Strategy
briefing: Saving face of sponsorship).
These sort of images enable organisation’s such as Man Utd to develop into icons
which according to Douglas B. Holt is one step further than brand image, as ‘they
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succeed because they forge a deep connection with the culture. In essence, they compete
for culture share.’ This can clearly be applied to industries, like, the football industries, as
many fans have a strong link between them and their club i.e. it is part of their culture.
Summary
In summary, from our research, it is clear that there is a link between successful
advertising and a well-established brand image. This was made clear in our theory
research, which was also represented, in our practical examples. Furthermore, it appears
that to generate a strong brand image, requires continuous, diverse advertising over a
period of time, which satisfies all areas of the marketing mix, allowing a firm to generate
a rounded brand image.
CHAPTER 5
DATA ANALYSIS, INTERPRETATION AND DIAGRAMMATIC
PRESENTATION
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TABLE 3: Age
Figure – 3: Age
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Interpretation
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TABLE 4: Marital Status
Interpretation
From the table and graph above it can be seen that
• 70% respondents are Un-married.
• 30% respondents are Married.
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Q3. Educational Qualification?
Interpretation
From the table and graph above it can be seen that
• 25% respondents are Under graduate.
• 40% respondents are Graduate.
• 35% respondents are Post graduate.
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TABLE 6: No of Years in Chennai
Sr. No. Category No. of Respondents Percentage
1 Less than five years 78 39%
2 More than five years 122 61%
Total 200 100%
Base 200 respondents
Figure 6: No of Years in Chennai
Interpretation
From the table and graph above it can be seen that
• 39% respondents are in Chennai for less than five years.
• 61% respondents are in Chennai for more than five years.
FIGURE 7: Occupation
Interpretation
From the table and graph above it can be seen that
• 20% respondents Occupation is Business.
• 26% respondents Occupation is Profession.
• 54% respondents Occupation is Service.
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2 Between 0.5 to 1 lacs 62 31%
3 Between 1to 1.5 lacs 30 15%
4 More than 1.5 lacs 10 5%
Total 200 100%
Base 200 respondents
Interpretation
From the table and graph above it can be seen that
• 49% respondent’s is less than 0.5 lacs.
• 31% respondent’s is between 0.5 to 1 lacs.
• 15% respondent’s is between 1 to 1.5 lacs.
• 5% respondent’s is more than 1.5 lacs.
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Base 200 respondents
Interpretation
From the table and graph above it can be seen that
• 42% respondents are member of a SM Computers.
• 58% respondents are not member of a SM Computers.
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FIGURE 10: Perception about different Products
Interpretation
From the table and graph above it can be seen that
25% respondent’s perception about different products is lucrative.
60% respondent’s perception about different products is not lucrative.
15% respondent’s have no idea.
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Interpretation
From the table and graph above it can be seen that
• 80% respondents are interested to buy products in SM Computers.
• 5% respondents are not interested to buy products in SM Computers.
• 15% of the respondents say that they will tell later.
Q10. Are you aware that SM Computers provides you a Genuine Service if you buy
a product in SM Computers?
TABLE 12: Services Provided by SM Computers
Sr. No. Category No. of Respondents Percentage
1 Yes 160 80%
2 No 40 20%
Total 200 100%
Base 200 respondents
FIGURE 12: Services Provided by SM Computers
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Interpretation
From the table and graph above it can be seen that
• 80% respondents are aware that SM Computers provides a Genuine
Service if they buy a product in SM Computers.
• 40% respondents are not aware of it.
Q11.Are you aware of different terms and conditions which are very much essential
to maintain a Membership at SM Computers?
TABLE 13: Aware of Terms and Conditions
Sr. No. Category No. of Respondents Percentage
1 Yes 25 12%
2 No 175 88%
Total 200 100%
Base 200 respondents
FIGURE 13: Aware of Terms and Conditions
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Interpretation
From the table and graph above it can be seen that
• 12% respondents are familiar with different terms and conditions which
are very much essential to maintain member with SM Computers.
• 88% respondents have no idea about it.
CHAPTER 7
SUMMARY OF FINDINGS:
1. Print Media.
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2. Hoarding & Banners.
3. Stalls in Trade Fares
4. Distribution of leaflets containing details information.
• Company should organize the program in the society, so that people will
be aware about the company and different products of the SM Computers.
• Make sure people understand about the various benefits of its products.
CHAPTER 8
SUGGESTIONS
Desktop 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.
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They Should pay proper attention towards checking of various components of PC
before end user delivery. Otherwise it tends towards defame of brand name in
comparison to rivals.
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.
CHAPTER 9
CONCLUSION
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information technology, management and retail. They will share the senior management
responsibilities regarding sales, development, operations and production for finances and
marketing.
SM Computers need to find a networking specialist for their clients who require
that service, but as the need for that will be on a job-by-job basis, we will use an
independent contractor.
So, at last the conclusion is that there is tough competition ahead for the company
from its major competitors in this sector.
Last but not the least I would like to thank SM Computers for giving me an
opportunity to work in their premises. I hope the company finds my analysis relevant.
CHAPTER 10
APPENDIX
10.1 QUESTIONNAIRE
Dear Sir/Madam,
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I am a student of SRM University, Chennai and presently doing a project on
“STRATEGIES IMPLEMENTED TOWARDS COMPUTER SALES IN SM
COMPUTERS PVT LTD, CHENNAI”. I request you to kindly fill the questionnaire
below and I assure you that the data generated shall be kept confidential.
.
Name: ………………………………………………………………………..
Address: ……………………………………………………………………..
Contact No :®………………( O)……………… (M)………………………
City: ………...............Pin: ………………….State: ……………………….
2. Education Qualification.
• Undergraduate □
• Graduate □
• Post graduate □
3. Marital Status.
• Married □
• Single □
No. of Children: __________
5. Occupation.
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• Business □
• Profession □
• Service □
(Please mention below the type of business/profession you are in incase of service
please mention your organization name and designation)
• Lucrative □
• Not lucrative □
• No idea □
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10. Are you aware that SM Computers provides you a Genuine Service if you buy a
product in SM Computers?
• Yes □
• No □
11. Are you aware of different terms and conditions which are very much essential
to maintain a Membership at SM Computers?
• Yes □
• No □
Date:
Place: Signature
Thank You
CHAPTER 11
REFERENCES
1. Ronald Henkoff, “Service Is Everybody’s Business,”Fortune, June 27, 1994, pp. 48–
60.
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2.See G. Lynn Shostack, “Breaking Free from Product Marketing,” Journal of
Marketing.
5. Benjamin Scheider and David E. Bowen, Winning the Service Game (Boston:
Harvard Business School Press, 1995); and Leonard L.Berry, Discovering the Soul of
Service (New York: Free Press, 1999).
6. Sam Zuckerman, “E-Trade Loses $5.2 Million Despite Late Business Surge,” San
Francisco Chronicle,January 20, 2000, www.sfgate.com
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