report of bajaj

8/6/2019 Report of Bajaj

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1

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY

NOIDA, UTTAR PRADESH

A

PROJECT REPORT

ON

"A COMPARATIVE STUDY OF CONSUMER PREFERENCE FOR BAJAJ

BRAND OF HOME APPLIANCES VIS-A-VIS OTHER BRANDS IN EAST DELHI"

SUBMITTED TO SUBMITTED BY

MR. PUNEET SAXENA

Manager-Instt. North India Appliances

BU

ROHIT GARG

MBA (Retail Management)

Enrol. ID: A0116210004

Amity business school

noida



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ACKNOWLEDGMENT

Apart from the efforts done by me, the success of this project depends largely

on the encouragement and guidelines of many others. I take this opportunity

to express my gratitude to the people who have been instrumental in the

successful completion of this project.

I would like to show my greatest appreciation to Mr. Puneet Saxena. I would

also like to thanks to Mr. Manesh & Mr. Rakesh (BABA DISTRIBUTOR,

east Delhi) for their sincere help. I can¶t say thanks, enough for their

tremendous support and help. I feel motivated and encouraged every time I

attend meeting with them. Without his encouragement and guidance this

project would not have materialized.

The guidance and support received from all the staff member of Mega

Electronics was vital for the success of the project. I am grateful for their

constant support and help.



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PROFILE OF THE COMPANY

INTRODUCTION

The Bajaj Group of India owes immense gratitude to their founding father

whose vision and dedication over the years has greatly helped to build a

business house that can set standard in Indian industry.

Jamnalal Bajaj was the founding father of the Bajaj Group. The adopted 'fifth' son

of Mahatma Gandhi, and the 'merchant prince' who held the wealth he created

in trust for the people of his country, Trust - a simple word that contains a

whole philosophy handed down by Jamnalal Bajaj to his successors. He

valued honesty over profit.



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kamalnayan Bajaj, elder son of Jamnalal Bajaj, followed footsteps of his

illustrious father and consolidated the Bajaj foundation. With characteristic

foresight and pragmatic; vision, he launched a steady diversification

programme which gave the current name "Bajaj" both its shape and size. His

unique management style created a work culture that matched well with the

national spirit he had inherited.

Ramkrishna Bajaj took over the reins of the "Bajaj group" in 1972 after Kamalnayan

Bajaj and steered the Group from strength to strength for over 22 years. He had also

actively participated in the freedom struggle of the country. In post independent

India, he had led the youth movement.



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Shekhar Bajaj, Chairman & Managing Director of Bajaj Electricals Ltd., started his

career with Bajaj Sevashrarn after which he worked at Bajaj International, the

groups export company. Mr. Shekhar Bajaj joined Bajaj Electricals in 1980,

became the Managing Director in 1987 and took over as the Chairman and

Managing Director in 1994. .



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HISTORY

People don't just bring their brains to work: they also bring their hearts and soul.

They want to feel passionate about what they are doing and be a part of whatever is

great. We at Bajaj Electricals Limited, recognize this truism and seek out and

strike a dialogue straight with the hearts and souls) of our employees. Here is a

quote from Mr. Shekhar Bajaj, our Chairman and Managing Director -

"Every individual has the potential to perform if he or she gets proper

motivation, the right opportunity and the freedom to work. In the long run

success is achieved when ordinary people perform extraordinarily. It is

important to keep an open mind rather than drawing preconceived impressions

about people. More often that not , such impressions will be proven wrong."

Faster, Higher, Stronger - is our maxim, our way of individual and organizational

performance. This is how we managed a successful business turnaround in Bajaj

Electricals Ltd - with and through each one of our employees. And not only our

excellent brand of products, our people provide an excellent competitive

advantage to us.



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We are looking at collaboration for our luminarie business through a licensing

agreement as there is a need for technologically superior products which are state-

of-the art. We are in advanced discussions. I cannot disclose anything further at

this stage," Bajaj Electricals chief operating officer and president R Ramakrishna

said.

The luminaire business is one of the five special business units (SBUs) of the

company. The others are appliances, pans, lighting and the engineering business.

Bajaj Electrical luminaries find applications in the engineering, power, steel,

cement, fertilizer, chemical and petrochemical sectors.

Earlier, Bajaj Electricals had entered into a licensing agreement with Murphy

Richards of the UK for its irons. This tie-up also entails a technology transfer.

The company is targeting revenues of Rs 1,500 core by the year 2009-10.

"The biggest contributor to this will be the engineering business. Till

recently, we were only into the manufacture of power transmission towers. Now,

we will be installing them too," Mr. Ramakrishna added. The engineering and

projects business is also the fastest growing business.



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This business has an order book of over Rs 150 core and has grown by over 85%,

senior company executives said. The company clocked net sales of Rs 505.26

crore in the last fiscal and is expected to add around 25% to its top line this fiscal, he

said. The company which had been facing tough times a few years back has

bounced back after the implementation of a restructuring exercise.

This entailed the reorganization in to five SBUs, brand building, and a growth of

revenues. Last year, the company also came out with a rights issue at premium of

Rs 15 per share. Further, the company also of out of the die-casting business by giving

a VRS at the plant, selling the development rights of the land and entering into a

non-compete clause with a competitor.

Bajaj Electricals' President and Chief Operating Officer, Mr. R Ramakrishna told

Business Line that the restructuring has helped the company to turnaround and

now it expects to double its revenues to about Rs 1,000 core within three years. The

company hopes to end the current fiscal with revenue of around Rs 730 core, an

increase of 20 per cent over fiscal 2008-09.

Mr. Ramakrishna said it had roped in Accenture Consulting to chart out a

turnaround for the company. As per the new plan, Bajaj Electricals dropped its



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matrix structure for its organization in favor of separate business units for each of

its businesses.

It now has five separate business units - engineering and projects, luminaire,

appliances, fans and lighting. "Each of these units compete as separate businesses

with its, competitors," Mr. Ramakrishna said. The company also got rid of

unviable businesses.

For example, it shut down its die cast operations and offered VRS to 180 people.

It also sold surplus land of the unit.

He said the company also went in for financial restructuring by swapping high

cost funds with low cost long-term debt. The banks too have lowered interest cost

and increased the moratorium for another two years.

The company plans to invest about Rs 20 core, spread over the next fiscal, to

double the existing capacity in its engineering unit to execute its Rs 160 core

worth of fresh order from Power grid Corporation for erection and commissioning

of power transmission tower.



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Mr. Ramakrishna said the engineering unit, which registered a growth of 88 per

cent over the last fiscal, is expected to outpace other business units. The company

expects about 25 per cent of its revenues to come from its engineering business, he

said.

Mr. Ramakrishna said with the Power Grid according thrill the status of approved

EPC contractors, it expects bigger orders from the power company. He pointed out

that with an estimated investment proposal of Rs 75,000 core by Power grid

Corporation; there was a huge opportunity for the company.

Mr. Ramakrishna said the company had entered into a licensing arrangement

with Trilux, a leading European luminaries brand and a market leader in

lighting in Germany. The tie-up, though is aimed to market the products to

premium segments in the country, could lead to manufacturing Trilux products in

the long term.

Bajaj's own products to provide full spectrum of lighting products, he said.

Similarly, Bajaj's tie-up with UK's leading small appliances brand Murphy

Richards had helped it to position itself in the premium end of the market.



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Mr. Ramakrishna said Bajaj Electricals has a market share of between 15 per cent

and 20 per cent in the appliances segment, 20 per cent in luminaries and 10

per cent in lighting. The company has also been able to take on the unorganized

sector by offering competitive pricing of its products in the lower end. "Our

China sourcing strategy has helped us to buy from the world's best without

compromising on the quality of the products,"



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BAJAJ ELECTRICALS KEEPS ON SHINING

Bajaj Electricals Limited (BEL) is a part of the "Bajaj Group" of India who

are in the business of steel, sugar, two wheelers & three wheelers.

Bajaj Electricals is well established in their range of products such as lamps

& tube lights, luminaries, small household appliances, ceiling fans & table fans

and turnkey engineering services. The company has been in existence for the

last 60 years and has steadily grown and expanded its business both in

domestic and international markets.

Bajaj Electricals has 20 branch offices and 4 regional offices spread in

different parts of the country besides being supported by a chain of about

600 distributors, 2500 authorized dealers, over 60,000 retail outlets and over

200 service franchisees

BEL today has five major business units comprising of lighting,

luminaries, electric fans, home appliances, turnkey engineering projects.

BEL's export activities are well supported through its International division.

The Company has recently forayed into electric power generation through wind



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energy in its quest to reduce the depletion of fossil fuels and preserved the

environment.

Total Quality Management (TQM) has taken roots in some important business

processes of the Company. Few business units of the company have already

received ISO Certifications while the other BUs are on the anvil to obtain the

same.



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Research methodology

1) Direct interface with customers.

2) Questionnaire to be filled by customers containing open ended and close ended

questions

3) Consolidation and analysis of data using different analysis test like (SPSS,

factor analysis etc)

4) Consolidation and summarization of study, conclusions & recommendations

based on findings

5) Direct sales of Bajaj appliances to walk-in customers at retail outlets in East

Delhi

Research Methods and Procedures

objectives of the Study:

1) To suggest measures to make Bajaj Electrical Limited compete better with

other home appliance brands being sold in East Delhi markets.

2) To study the awareness, perception and strength of the Bajaj brand in

home

3) To study the purchase satisfaction level in regards to the strength of the

Bajaj Electrical Limited4) To study the reason behind best home appliances

5) To study their preference for the Bajaj home appliances



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Research Questions

The research questions were short, simple, non-disguised and self explanatory.

Almost all the questions were structured in a way so, no confusion creates any

discrepancies in the mind of the respondents and also to get honest and straight

answers from them. It took a maximum of 05-10 minutes to get this questionnaires

filled by respondents. So therefore the questions were framed in an approachable

manner and every question complemented the next question.

Participants / Sample size

Data was collected from 50 customers in East Delhi.

Sampling Area & Technique

The study was conducted on field; the questionnaire was filled by customers. The

survey mainly covered East Delhi region. The sampling technique used was

CONVIENIENCE SAMPLING as it was easier to collect the data and also there

was less chances of any favourism.



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Procedure / Instruments Used

Mode of Survey

The consumers had to fill up our questionnaire, which was our instrument of

survey.

While pursuing the research, structured questionnaire with closed-ended and some

open ended questions were used.

Structured Questions: they improve the reliability of the study, by ensuring that

every respondent is asked the same questions.

Structured answers: structuring or standardizing answers which the respondent can

choose from in a questionnaire also achieves consistency of form. Additionally, it

makes the interpretation of answers, analysis and tabulation, easier than in the case

of unstructured answers.

Closed-ended questions: questions which structure the possible answers

beforehand are known as closed-ended questions.

Preparing the questionnaire

The questionnaire was prepared keeping in mind the objectives that we had

laid down for the project. Each objective had had a set of questions lined up.

The questionnaire followed the ³funnel approach´ i.e. the questionnaire

follows a sequence starting with the general questions first and with more

specific and personal questions later on to avoid specific questions biasing

the general questions.

A close end questionnaire was prepared by us for the same purpose, to be

filled by the consumer.



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We have used the following types of questions in our questionnaire,

y Multiple choice questions

y Ranking questions

Data Analysis

After collection of data another work necessary for any data collector is to

correctly analyze that data. Statistical tools helped us to correctly analyze the data.

The statistical tool that we have used in our project is SPSS software.

SPSS(originally, statistical package for social sciences) was released in its first

version in 1968 after being developed by Norman H. Nie and C. Hadlai Hull.

Statistics included in the basic software:

y Descriptive Statistics: Cross Tabulation, Frequencies, Descriptive,

Explore, Descriptive Ratio Statistics

y Bivariate Statistics: Mean, T-Test, Anova, Correlation( Bivariate,

Partial, Distances), Non Parametric Tests

y Prediction for numerical outcomes: Linear Regression.

Prediction for identifying groups: Factor Analysis; Cluster Analysis (Two-

Step, K-Means, Hierarchical) Discriminant.

The statistical tools used in the project are:

y Regression Analysis

y Cross Tabs

y Descriptive analysis



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Summary

Research methodology and procedures are the most important part of a project

report. The finding and the result of the research depends upon the methods used,

the data collection, the research questions, the data analysis tools used.

The final objective of a research is to achieve what it was meant to achieve. The

conversion of the objectives into the questionnaire and ultimately the findings from

the research is the core of the research project.



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DATA ANALYSIS AND FINDINGS

REVIEW OF METHODOLOGY

Table 1

Aware Of Bajaj Electricals

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 50 100.0 100.0 100.0



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Inference : as I take the sample size for 50 respondents in this all the respondents are well aware

about the brand

Table 2

Purchased Bajaj appliances


Cumulative

Percent

Valid yes 31 62.0 62.0 62.0

no 19 38.0 38.0 100.0

Total 50 100.0 100.0



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Inference : net 62% has purchased the product of Bajaj Electrical



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Table 3

Bajaj appliances at home


Cumulative

Percent

Valid coolers 4 8.0 8.0 8.0

juicers 9 18.0 18.0 26.0

choppers 7 14.0 14.0 40.0

iron 11 22.0 22.0 62.0

non 17 34.0 34.0 96.0

any other 2 4.0 4.0 100.0

Total 50 100.0 100.0



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Inference: Most preferable product of Bajaj Electrical is iron

Table 4

Other home appliance would prefer


Cumulative

Percent

Valid Philips 25 50.0 50.0 50.0

maharaja 10 20.0 20.0 70.0

Inalsa 14 28.0 28.0 98.0

others 1 2.0 2.0 100.0

Total 50 100.0 100.0



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Inference: the other company brand 50% customer mostly prefer Philips



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Table 5

Cooler you use


Cumulative

Percent

Valid symphony 12 24.0 24.0 24.0

Bajaj 7 14.0 14.0 38.0

Usha 7 14.0 14.0 52.0

Kenstar 12 24.0 24.0 76.0

any other 12 24.0 24.0 100.0

Total 50 100.0 100.0



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Inference: Symphony and Kenstar are the most preferable brand of coolers among the

customers

Table 6

Satisfied with after sales service


Cumulative

Percent

Valid yes 20 40.0 40.0 40.0

no 30 60.0 60.0 100.0

Total 50 100.0 100.0



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Inference : There are around 60% respondents replied that they are not satisfied with the after

sales services which they are getting from the company.



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Table 7

Service rank Bajaj Electrical


Cumulative

Percent

Valid excellent 1 2.0 2.0 2.0

good 19 38.0 38.0 40.0

neutral 15 30.0 30.0 70.0

average 12 24.0 24.0 94.0

poor 3 6.0 6.0 100.0

Total 50 100.0 100.0



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Table 8

Price service Bajaj Electrical


Cumulative

Percent


good 9 18.0 18.0 24.0

neutral 26 52.0 52.0 76.0

average 11 22.0 22.0 98.0

poor 1 2.0 2.0 100.0

Total 50 100.0 100.0



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Table 9

Quality rank Bajaj Electrical


Cumulative

Percent


good 18 36.0 36.0 44.0

neutral 17 34.0 34.0 78.0

average 9 18.0 18.0 96.0

poor 2 4.0 4.0 100.0

Total 50 100.0 100.0



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Table 10

After sales service Bajaj Electrical


Cumulative

Percent


good 13 26.0 26.0 30.0

neutral 17 34.0 34.0 64.0

average 10 20.0 20.0 84.0

poor 8 16.0 16.0 100.0

Total 50 100.0 100.0



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INFERENCE: from table 7 to 10 : rank Bajaj electrical

Quality>service>price>after sale service

Table 11

Switch over from Bajaj Electrical to other brand


Cumulative

Percent

Valid Price 17 34.0 34.0 34.0

Quality 9 18.0 18.0 52.0

brand image 8 16.0 16.0 68.0

after sales service 13 26.0 26.0 94.0

Accesibility 3 6.0 6.0 100.0

Total 50 100.0 100.0



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Regression Analysis

Variables Entered/ Removed

Model

Variables

Entered

Variables

Removed Method

1 Satisfied with

after sales

service

. Enter

a. All requested variables entered.

b. Dependent Variable: purchased Bajaj

appliances

Table 12

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate

1 .639a

.409 .396 .381

a. Predictors: (Constant), satisfied with after sales service

Table 14

ANOVA

Model

Sum of

Squares DF Mean Square F Sig.

1 Regression 4.813 1 4.813 33.164 .000a

Residual 6.967 48 .145

Total 11.780 49

a. Predictors: (Constant), satisfied with after sales service

b. Dependent Variable: purchased Bajaj appliances



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Table 15

Coefficients

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) .367 .184 1.992 .052

Satisfied with after sales

service

.633 .110 .639 5.759 .000

a. Dependent Variable: purchased Bajaj appliances

Inference: from table 13 to 15 it shows that satisfied with the after sales service does not affect

the sales of the Bajaj appliances

Factor Analysis

Table 16

Communalities

Initial Extraction

Service rank Bajaj

Electrical

1.000 .971

Price service Bajaj

Electrical

1.000 .763

Quality rank Bajaj

Electrical

1.000 .686

After sales service Bajaj

Electrical

1.000 .971

Extraction Method: Principal Component

Analysis.

a. Only cases for which Bajaj appliances at

home = iron are used in the analysis phase.



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Table 17

Total Variance Explained

Comp

onent

Initial Eigenvalues Extraction Sums of Squared Loadings

Total

% of

Variance Cumulative % Total

% of

Variance Cumulative %

1 2.129 53.233 53.233 2.129 53.233 53.233

2 1.262 31.562 84.795 1.262 31.562 84.795

3 .564 14.109 98.904

4 .044 1.096 100.000

Extraction Method: Principal Component Analysis.

a. Only cases for which Bajaj appliances at home = iron are used in the analysis phase.

Table 18

Component Matrix

Component

1 2

Service rank Bajaj

Electrical

.965 -.198

Price service Bajaj

Electrical

.405 .774

Quality rank Bajaj

Electrical

.629 .539

After sales service Bajaj

Electrical

.799 -.577

Extraction Method: Principal Component

Analysis.



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a. 2 components extracted.

b. Only cases for which Bajaj appliances at

home = iron are used in the analysis phase.

Inference: it shows that 2 factors affecting Bajaj are price and quality

SWOT ANALYSIS

Strengths:

y Brand image

y Product quality

y Product awareness in the market.

y Dealers distributed widely across the country.

y Good will in the market.

y Older player in the market.

Weakness:



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y Lack of market strategies.

y Lack of advertisement.

y Delay in servicing facility.

y Lesser promotion effort.

Opportunities:

y Take advantage of brand image of Bajaj electrical limited"

y Ability to convince the companies through market representation.

y Joint venture would increase database& product range.

y Increase their presence at dealer point.

y To use market leader strategies.

Threats:

y Presence of other competitors with good capture of market e.g.

Philips, Usha, Inalsa.

y Loyalty of consumers to other brands.



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y Form

y Features

y Performance

y Durability

y Reliability

y Repairability

y Design

In service differentiation it should focus on-

y Ordering ease

y Delivery

y Installation

y Customer consulting

y Maintenance & repair

y Miscellaneous

In personnel differentiation it should focus on-

y Competence

y Competence

y Courtesy

y Credibility

y Reliability

y Responsiveness



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y Communication

In channel differentiation it should focus on-

y Coverage

y Expertise

y Performance

In image differentiation it should focus on-

y Symbols

y Colors

y Slogans

y Special attributes

6) Company should also focus on events and sponsorships.

7) As Philips and Inalsa are market leaders whereas Bajaj is market challenger in home appliances

it should use market challenger strategies which are given below

y Frontal attack:

In pure frontal attack, the attacker matches its opponent's product, advertising. price &

distribution. The principal of force says that the side with greater manpower will win.

y Flank attack:

The major principal of offensive warfare is concentration of strength against weakness.

y Encirclement attack:



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The encirclement maneuver is an attempt to capture a wide area of the enemy's territory.

y Bypass attack:

The most indirect assault strategy is bypass. It means bypassing the enemy and attacking

easier markets to broaden one's resource base.

y Guerrilla warfare:

It consists of waging small intermittent attacks to harass and demoralize the opponent and

eventually secure permanent footholds.

8) Wall paintings, pamphlets_ distribution procedure in the public can also help in the promotion

of Bajaj home appliances.



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QUESTIONNAIRE

1) Are you aware of Bajaj Electricals?

a) Yes b) No

2) Have you ever purchased a Bajaj appliance?

a) Yes b) No

3) Which all Bajaj appliance you have at home?

a) Coolers b) Juicers c) Choppers d) Iron e) Nonf) Any other««««««««««««««. (plz. specify)

4) Which other home appliance brand would you prefer?

a) Philips b) Maharaja c) Inalsa d) Others please specify

5) Which Brand of Cooler do you use?

a)Symphony b) Bajaj c) Usha d) Kenstar e) Any

other««««««««««««««««(specify)

6) Are you satisfied with the after sales service you get by buying Bajaj Home Appliances?

[ ] Yes [ ] No

7) How would you rank Bajaj electrical

Excellent Good Neutral Average Poor

Services

Price

Quality

After Sales

Service



8) If ever you need a switch from Bajaj Electrical to other brands, why would it be?

a)Price b)Quality c)Brand image d)After-sales service e) Accessibility

f) Any other (specify)

9) Any specific problem faced by BAJAJ? ............................................................................

..

10) Suggestions for improvement ..

NAME OF CUSTOMER:

Age:

Occupation:

Name of Store:

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