A Summer Training Report

ON
A STUDY OF “Consumer Preference Towards Ceiling Fans in Delhi and
Gurugram”
AT
USHA International Limited
In partial fulfillment of award of the degree
Of
Master of Business Administration
TO

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

Supervised by: Submitted by:

Mr. Nitin Abhimanyu chauhan
Asstt. Professor MBA 3rd SEM
Department of Management Studies 175002

GLOBAL INSTITUTE OF TECHNOLOGY & MANAGEMENT

FARRUKHNAGAR, GURGAON
SESSION 2015-2018

1
 CERTIFICATE OF GUIDE
This is to certify that the project entitled “Consumer Preference Towards Ceiling Fans in Delhi and
Gurgaon” by Abhimanyu chauhan ,Roll No.175002,submitted to Mr.Nitin for the Award of Master of
Business Administration (MBA Sem-3rd) is original research work carried out by him/her/them under
my supervision.
This report has not been submitted either partly or fully to any other University or Institute for award
of any degree or diploma.

Mr.Nitin
Asstt. Professor
Department of Management Studies,
Global Institute of Technology and Management

Date:

Place: Gurugram

2
 ACKNOWLEDGEMENT

My sincere thanks to faculty guide under whose able guidance and Kind Corporation. I was able to
complete the project work titled 'consumer behavior in Indian Retail sector' Also I do thank and
remember my friends for their effort and helping hand.

It gives me a great pleasure to express my deep felt gratitude to Mrs. Anshul Arora (HOD in
Management Dept.) for her expert guidance and co-operation from her busy schedule and extending
all the required help time and again and providing me with valuable inputs from time to time. This
work is a synergistic product of many minds. So, I would like to thank Mr.Nitin , my supervisor,
without whom the successful completion of this project would not have been possible.

Every effort has been made to enhance the quality of work. However I own the sole responsibility of
the shortcoming, if any, in the study.

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 Table of Contents

Front i

Certificate from faculty guide ii

Acknowledgement iii

Preface iv

Chapter Title Page no.

Chapter - 1 Company Profile 1-16
Chapter - 2 Introduction 17-20
Chapter - 3 Literature of Review 21-27
Chapter - 4 Research Methodology 28-29
Chapter - 5 Data Analysis and Interpretation 30-56
Chapter - 6 Conclusion, Limitations, Findings and 57-63
Suggestions
Questionnaire 64-66
Bibliography 67

4
 CHAPTER-1
Company Profile

About the Company

The Shriram group was founded by the legendary Lala Shriram in 1889. The group’s
businesses extended to textiles, chemicals, sugar, automobiles, engines, nylon tyre cord,
automotive components, edible oil, heavy chemicals (fertilizers), engineering foundries,
sewing machines, fans and home appliances. In 1989, the group underwent a major
transformation, following the segregation of business interests across the new generation - the
descendants of Lala Shriram. The group’s proud heritage and achievement over the years have
earned it the trust and respect of its consumers both in India and abroad.

Usha International Ltd (the Company), a constituent of the Siddharth Shriram group, was
formed in 1934 and started doing business under the brand name, USHA.

Usha International Limited is one of the leading consumer durable company in India. Under
the well known flagship brand ‘Usha’, it markets a diversified portfolio of consumer products
including small kitchen appliances, cook-tops, hoods and hobs, water coolers, water
dispensers, electric fans, sewing machines, engines and pump sets, electrical motors and
pumps, inverters and auto components.

Usha International has its genesis from the Shriram Group which started in 1889. Usha
International Limited has grown from strength to strength, developing a solid infrastructural
backbone consisting of 4 manufacturing Units, 16 location offices, 2 international offices at
China and Sri Lanka, 60 company showrooms, 34 warehouses, 220 authorised service centers
backed by an in-house customer call center, and advanced IT systems.

Over the decades, this brand name has become a household name in India while the Company
has diversified into the business of new age home appliances, sewing machines, fans, power
products, water cooler, water dispensers, modern farm equipments and auto components.

5
Usha International has 5 manufacturing facilities at 3 locations: Hyderabad for Ceiling Fans,
Diesel Engines and Fuel Injection Equipments, Kolkata for Fans and Faridabad for water
coolers.

The company employs about 2500 permanent employees with an in- house training and
development facility for growth. Over the years, Usha has enhanced its presence across the
length and breadth of India, with its products being available at 100,000 retail selling points.
The company has also been exporting Usha products to 30 countries across the world.

Usha International's mission is to pursue excellence in all its spheres of business activity. The
consumer brand believes in providing reasonable returns to its shareholders and adding value
to all its principals' business operations. Usha is one of India's leading sales, marketing,
distribution and manufacturing organizations, striving to meet customer requirements and
providing customer satisfaction, thereby building trust in the Company and its products.

Turnover of the company

3000
2406
2200
1903 1945 1996
2000 1561
1336
1041
749 839
1000

0
07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17

In the financial year 2016-17 turnover of the company was Rs. 2406 crores showing a growth
of 9.36%.

USHA in 3rd Position as the most trusted brand in Consumer Durables

Brand USHA has emerged at 67th rank amongst the 100 most trusted brands in the Economic
Times Brand Equity Most Trusted Brands 2016 annual survey published on 25th Jan, 2017.

6
From being ranked 75th last year, Usha has risen to the 67th most trusted brand in the country
this year.

Brand USHA has also been ranked as the 3rd most trusted consumer durable brand

Conducted by AC Nielsen, this survey remains among the largest researches of its kind in
India, with covering 372 brands and a design sample of 6595 - distributed across various
demographics.

Corporate Office-cum-Head Office

Company’s Corporate Office – cum – Head Office is situated in NCR – Gurgaon and
Registered Office in New Delhi.

Regional Offices

Company has 16 location offices all over India to support the business channels. Detail is
given below:

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 NORTH
Delhi, NCR –Gurgaon
Punjab, Haryana, HP, J&K – Jalandhar
Rajasthan – Jaipur
UP East – Lucknow
UP West &Uttrakhand – Ghaziabad

WEST EAST
Maharashtra – Mumbai West Bengal – Kolkata
M.P. &Chattisgarh– Indore North East – Guwahati
Gujarat - Ahmedabad Bihar & Jharkhand – Patna
Orissa – Cuttack

SOUTH
AP & Telangana – Hyderabad
Tamil Nadu – Chennai
Kerala – Ernakulam
Karnataka – Bangalore

Manufacturing Units & Locations

1) Usha Fan Industries, Kolkata – This unit is manufacturing electric fans since its inception in
1956 and at present produces around 50,000 fans per month. This unit has introduced many
new models for both domestic and international markets. Quality System of this unit has been
designed to comply with the norms of ISO: 9001-2008.

2) Hyderabad Engineering Industries Ltd, Hyderabad – Hyderabad Engineering Industries was

started in 1963 for manufacturing ceiling fans and at present has a capacity of producing

8
 over 180,000 fans in a month. The products manufactured are certified by BIS India, SASO
Saudi Arabia and SISIR Singapore.

3) Shriram Fuel Injection Industries, Hyderabad – manufacture of precision fuel injection

equipment such as Nozzles, Elements, Delivery Valves Pumps and Injectors for stationary
diesel engines, diesel‐powered generating sets, trucks, buses, tractors and for defense
applications. Over 40% of its production is exported to various countries like USA, South
America, Germany, Italy, middle‐east Asia, south‐east Asia and Africa. Certified for ISO 9000
in 1993, QS 9000 in 2000 and is certified for ISO/TS 16949 – the global quality standard for
automotive components – since 2004. SFII is also certified for ISO 14001 – the environmental
management standard and OHSAS 18001 – the standard for occupational health and workplace
safety.

4) Usha Diesel Engine Plant, Hyderabad – A dedicated facility for manufacturing, assembly
and testing of Diesel Engines. Light-weight, horizontal, 4-stroke, air-cooled, indirect injection
Diesel Engines for agricultural water pumping sets are assembled here and fitted along with the
appropriate water pumping set. These engines undergo rigorous testing on engine testing
dynamometers for fuel consumption and exhaust emissions. These engines are extremely fuel
efficient, portable and having a discharge suitable for all kinds of crops and vegetables.

5) Water Cooler Factory, Faridabad – Manufacturing Water Coolers and Dispensers.

Manufactures various models of storage and pressure type drinking water coolers at Faridabad.
The water cooler factory is ISO 9001: 2008 certified by DNV. The Type Test lab is equipped
with equipments capable of testing and designing of water cooler.

MILESTONES

1934 – India’s first indigenous sewing machine marketed under brand name Usha

1948 – Introduction of Usha Fans

1968 – Diesel engines are added to the Usha product range

1984 – Launch of Home Appliances

2009 – Cook tops, Hoods and Hobs launched

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International Business Tie-ups

Over the decades, Usha International has partnered with leading international technology
companies to facilitate the access to cutting-edge products and deliver superior customer value.

 Year 1994 – Collaboration with Janome to launch Usha-Janome fully automatic sewing
machines. The Usha Janome collaboration started in 1993. Janome Sewing Machine
Company Ltd. is the leading global manufacturer of sewing machines with manufacturing units
in Japan, Taiwan, Thailand and distributors in more than 100 countries. Since 2010, Usha and
Janome entered into a long term agreement. Janome saw in Usha a unique sales and service
network and commitment to its customers and quality.

 Year 2001 – Usha ties up with Hunter Fans Company of USA. Hunter Fan Company is
credited for innovative ideas and industry leading technologies like Concert Breeze, QuietFlo
System and PermaWick. Hunter Fan Co. sells close to six million fans across the world
annually and is among the leaders in the segment. These technologies have transformed the
way the world looks at fans. In India, Usha has partnered with Hunter to bring the latest
lifestyle fans with impeccable quality standards for its discerning customers.

 Year 2011 – Usha and Rinnai Corporation of Japan sign an exclusive sales and distribution
agreement to sell high end cooktops in India. Rinnai of Japan (incorporated in 1920) is the
world’s largest gas appliance manufacturer. The product portfolio comprises of gas-based
appliances and heating systems, hot water units, kitchen appliances and bathroom applications.
In 2011, Rinnai and Usha entered into a partnership to introduce Usha Rinnai Products. The
partnership has introduced cook tops in blue flame technology which are built for faster
cooking to improve energy efficiency and conserve time.

 Year 2011 – Usha ties up with Honeywell to launch specially designed Air Coolers in India
with honeycomb technology. Usha International has introduced Usha Honeywell desert coolers
in India with Honeycomb technology. This strategic agreement provides Honeywell exposure
to Usha’s deep distribution presence and helps customers with advantage of Honeywell
technological superiority and quality standards.

10
Usha is a brand that sets a legacy of benchmarks and provides high quality products. It has a rich
portfolio of Fans ranging across designs, price points, features, colours, etc. Constantly striving and
succeeding in creating new opportunities and consolidating its existing position.

Usha Fans Range:

 Ceiling
 Table
 Wall
 Pedestal
 Exhaust
 Tower Fans
 Air Coolers

Usha Fans-Brand Architecture

What does a fan mean to different consumers?

 Universal (Machine): Everywhere high-speed fan. A utility product known for its
performance.

 Super-Tech (Gadget): High-Tech large sweep-area fan. A fan with wider air coverage.

 Hi-Trend (Decorative): Matches with the interiors. A fan for decorative purposes that matches
with the décor of the room.

 Admire (Exhibit): Personality statement it is. Fan is used as a style statement.

Market Competition

Major competitors of Usha International Ltd are:

 Havells – Havells deals in appliances, cables, switchgear, water heater, pumps, fans, air cooler,
etc. Havells has a very strong presence globally, across 50 countries extending their
manufacturing units in Africa, China, Europe and America. They have an extensive network of

11
 distributors in different parts of the word. They are known for the quality and reliability of their
products.

 Crompton – They deal in various power systems and industrial systems. With an impressive
and wide range of products they have been enjoying a reputation of stature for over years. They
have always been known for their high quality products and solutions all over the world.

 Bajaj Electricals – With a diverse portfolio of products it is India’s no 1 small appliances

brand. They are known for their durable and value-for-money products.

 Orient – Orient Electrical is a part of the CK Birla Group. They offer a wide selection of
products like Fans, Home appliances, Switchgear and Lighting. Their operations expand to
over 35 countries. It is the largest manufacturer and exporter of fans in India.

Usha Colour of Choice

It is a unique proposition of personalization being offered for the first time in the fans industry.
Here the company offers unlimited shades (256) for the choice of the consumer. The paint used
is the same which is being used in the automotive industry.

Free door delivery and free installation to be offered to provide consumer the premium
experience. Colours are the most important when it comes to home décor whether it’s colours
of the wall, curtains, upholstery, accessories, art etc.

Coloured fans go with the décor, add class, style, enhance our mood and kids need funky and
multi coloured accessories. Colour input for colour of choice fans is given by PPG Asian
Paints.

Range of 256 colours are offered in 3 different finishes; Metallic Aluminium, Solid Smooth
and Pearl Mica.

Consumer would be able to select and purchase fans from an experiential website
(www.ushacolourchoice.com), installation service to be provided within 30 days of ordering to
offer complete solution.

12
 Various parameters on which the Usha Colour Of Choice is based, are:

 Target Audience: Age between 25-44 years, both Males and Females.

 Lives: Metros and Tier-1 Cities

 Profile: Middle & Higher level professionals and families; with or without kids.

 Price: Was sold in a price range of 1900-2500

 Quality: Quality should touch the benchmark that is set. A rigorous quality check takes place.

 Reach: The touch point is limited to only digital sales, through official website of Usha Colour
Of Choice Fans.

 Persona: People staying in different areas have a different taste when it comes to deciding for
interiors and the décor of the house. Therefore their choices for their purchase of fans also
varies from one geographical strata to another and from one individual to another.

Market size of the fan industry in the country is estimated to be nearly 60-65 million units per year,
which comprises of both organised and unorganised sector.

The organised fan market stands at 40-45 million units and is currently growing at a rate of 6-7 per
cent. The percentage wise market break up between organised and local players is approximately
65:35.

13
Organised market is growing with customers graduating to branded products given the product range,
performance, quality and service by the brand. Usha, with a strong brand lineage, enjoys nearly 19 per
cent market share in the overall organised sector.

Economy fans are those which are priced below Rs. 1800, regular fans come in the range of Rs. 1800
to Rs. 3500 and the premium fans are priced above Rs. 4500 for a single fan. In value terms, regular
fans category is the largest category in India whereas in volume terms economy fans is the largest
selling category.

Unorganized fan market does not contain any such category division as they do not fit into the above
mentioned price brackets.

Fan market in India broadly includes four types of fan i.e. Ceiling fans, Table fans, Pedestal fans and
Wall fans. In organized sector, ceiling fans dominates the market in terms of volume followed by
pedestal fans, table fans and wall fans whereas the unorganized sector is heavily dominated by ceiling
fans and table fans. Among the four major types of fan, pedestal fans are the most costly, followed by
ceiling fans. In terms of regional sales, south India caters to the largest revenue sales, followed by
west, north and east.

Usha Fan business

The company, with its product range starting at a price point of Rs 1,500 going up to Rs 40,000,
clocked over Rs 1,000 crore revenue in 2016-17.

Market size of the fan industry in the country is estimated to be nearly 60-65 million units per year,
which comprises of both organised and unorganised sector.

The organised fan market stands at 40-45 million units and is currently growing at a rate of 6-7 per
cent. The percentage wise market break up between organised and local players is approximately
65:35.

Organised market is growing with customers graduating to branded products given the product range,
performance, quality and service by the brand. Usha, with a strong brand lineage, enjoys nearly 19 per
cent market share in the overall organised sector.

14
“Usha has a strong brand presence across Asia and some key African markets. We export to over 20
countries worldwide and have a sales office in Sri Lanka, which has helped significantly in improving
our presence in the country. Our export volume has grown very well this year and will continue to
grow,”

USHA

DISTRIBU
TORS

WHOLES
SUB ALERS
DEAL
ERS

DEALERSRETAILERS

ULTIMATE
CONSUMER
S

Distribution Network

15
Trade Distributor Types

 Exclusive redistributor: This type of distributor distributes only Usha fans in a pre-defined
area. If the distributor has a showroom he may sell all brands of fans from his counter for
retail but will distribute only Usha.

 Non- Exclusive redistributor: This type of distributor distributes all brands of fans along with
Usha in an area. In most cases it has been a non-exclusive dealer turned into a non-exclusive
redistributor.

The redistributors can be further classified on the basis of the other products distributed by
them.

White Goods distributor: This type of re-distributor is an authorized distributor for white
goods like Color Televisions, Refrigerators etc. in a designated area. He distributes fans also
to the white goods network.

Fan/ Appliances distributor: This type of re-distributor is an authorized distributor for small
appliances like Mixies, Water Heaters, Electric Irons etc in a designated area. His sub-dealers
will be a mix of Electrical dealers, General Merchant shops, Vessel merchants and crockery
sellers.

Distribution Strategy

District wise Distributors

• Standard Fans and Economy Fans to have separate Re Distributors.
• For smaller Districts may have common Distributor.
A Metro or Mini Metro may have more then 1 Distributor
Cover all traditional channels such as:
• Electrical shops
• White good counters
• Fan & Appliances counters
• Explore new selling points like Hardware shops.
Exclusive Club: Any exclusive Dealer/RD doing more then 10 lacs business with USHA fans,
will be given loyalty bonus
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 CHAPTER – 2

INTRODUCTION

Consumer Durable Industry:

Those goods that do not wear out quickly and give utility over a long time period are
commonly referred to as consumer durables. Consumer durables include electronic items,
home appliances, kitchen appliances, leisure equipments, etc.

A significant growth has been witnessed in the recent few years reflected by drivers like retail
boom, real estate, disposable income of people and increase in the population. Active players
in the market in this industry are Usha, Blue star, BPL, Titan, etc.

The value of the consumer durables in India was $ 12.16 billions in 2016. It is expected to
grow to 20.6$ billion by 2020 and turn out to be the fifth largest in the world by 2025.

Urban markets are the major targets for consumer durables as two-thirds of India’s durables are
sold in these markets. Most popular consumer electronics are the TVs. The hot climate in India
are the major reasons that durables like colour televisions and such electronics are popular.
Refrigerators and washing machines are also equally demanded.

Majority production of these consumer durables occurs in Delhi in the north, Tamil Nadu in
the south, West Bengal in the east and Maharashtra in the west.

As demand for these goods increases with time, customers also require varieties in these goods
and prefer customisation in the same. Therefore there is a need for customisation in the goods
that offer more and better choices to the customers.

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Electrical Fan Industry in India

Fans are one of the electrical appliances which have become almost indispensable in Indian
homes and even offices. Electric Fan is a high market penetration product category and is very
high in terms of purchase priority amongst durables. The fan industry in India is vast and has
grown over the past few years. The Indian fan market is vast and consists of ceiling fans,
pedestal fans, table fans, exhaust fans, wall fans, etc. The estimate of the Indian market is at 2.5
million fans per month and is gradually growing at 10% p.a. Large number of manufacturing
plants are located across India.

The market size in value terms of the fans category is quite large and it is the largest selling
item in the brown goods category. Fan as a product category has no major regional disparities
in sale. Much of the sale of organised sector is in the metro, tier I and tier II markets.

National brands have built their brand image over a period of time through sustained
advertising and a good dealer network. Moreover, the export of fans from India has grown
considerably in the last few years and is a testimony to the quality and development of the fan
industry in India.

With the housing sector growing at a rapid rate and the disposable incomes at a high rate, the
demand for electric fans continued to grow. But due to involvement of lesser technological
inputs and low entry barrier, the market is equally divided among the organized and
unorganized players.

Unorganized sector leads the industry in terms of volume whereas organized market leads in
terms of revenues. The organised fan sector is dominated by national brands like Crompton
Greaves, Usha, Orient, Havells, Bajaj and Khaitan.

Fan industry is usually segmented on the basis of price. The fans markets are divided in to
three i.e Economy fans, Regular fans and Premium fans.

18
In a tropical country like India fans are necessary and provide a great relief. Technology has
helped the manufacturers to produce designer fans and fans with light.

The fan industry has taken significant steps to ensure consumer satisfaction and leading brands
not only provide good quality but also back this up with good after sales service.

The fan industry has been ensuring customer satisfaction, good quality products and good after
sales services. Dominating players in the market include Usha, Orient, Crompton and Havells.
They face stiff competition from the other local players competing on the basis of price.

Although this industry size is huge, the industry players are also face issues of competition
from the unorganized sector, holding almost half of the total market. Earlier in the 1990s the
players were different but later regional players ruled the market with low priced fans changing
the market share of these players.

USHA has a strong brand presence across Asia and some key African markets. Company
export to over 20 countries worldwide and have a sales office in Sri Lanka. Export volume has
grown very well this year and will continue to grow,”

At the time of joining Internship Training, Fan Marketing Department of the Company was
very specific and my mentor advised me to focus on four top brands i.e. USHA, Crompton,
Havells and Orient. Accordingly, I have conducted the market study and submitted the training
report.

The aim of this report is to know about the price gaps and monthly sales of Ceiling Fans.
This report estimates the market share of the Ceiling Fans of various brands like Crompton,
USHA, Orient, Havells. The information has been taken from the cities Delhi, Gurugram &
Noida. There are 150 outlets has been covered under these cities.

According to the results Crompton has the highest sales in the markets. USHA requires to
manufacture more attractive ceiling fans and should focus on promotion policies.

19
The company, with its product range starting at a price point of Rs 1,500 going up to Rs
40,000, clocked over Rs 1,000 crore revenue in 2016-17.

Market size of the fan industry in the country is estimated to be nearly 60-65 million units per
year, which comprises of both organised and unorganised sector.

The organised fan market stands at 40-45 million units and is currently growing at a rate of 6-7
per cent. The percentage wise market break up between organised and local players is
approximately 65:35.

Organised market is growing with customers graduating to branded products given the product
range, performance, quality and service by the brand. Usha, with a strong brand lineage, enjoys
nearly 19 per cent market share in the overall organised sector.

20
 CHAPTER –3

Literature Review

A review of the literature is an essential part of a research which is a careful examination of the
literature pointing towards the answer to the research question. A comprehensive review of literature
aids in any research endeavor. The main purpose of collecting the review of literature is to gain a
backward knowledge of different related researches conducted on the current topic and to help in
identifying appropriate research design, methods of measuring concepts, analyse the data obtained, use
of techniques to evaluate the posture and discuss the data collected.

The US Department of Agriculture’s Index of Consumer Satisfaction was the first study to report
direct information on consumer satisfaction to policy makers. Both Olshavsky and Miller [9] and
Anderson [10] examined disconfirmed expectancies and their influence on product performance
rating. The customer value concept holds that customers buy what creates the most value for them. It
has also been defined as an emotional bond created between a customer and a supplier. A precondition
for this bond to be established is that the product be able to meet or exceed customer’s expectations.
Customers can be delighted if the supplier is able to improve its performance continuously.

Deneckere and de Palma develop a model of a vertically differentiated durable goods duopoly. In
the version of their model with endogenous quality choice it is difficult for the low quality firm to
soften competition by lowering the quality of its product. This leads to less vertical differentiation than
would arise in a market for nondurable goods. Whereas redefining the customer satisfaction Zeithaml
et al. emphatically mentioned that companies should first examine the impact of service quality on
customers’ responses by asking them the following questions: What is the level of quality a supplier
must deliver in order to keep the customer; what would encourage the customer to recommend the
supplier; what factors would reduce the likelihood of a customer spreading negative worth-of-mouth;
and should the supplier focus on proactive service improvements or on complaint handling in order to
keep the customer.

21
James U. Mcneal, Chyon-Yeh, (2016) have searched that examining ―Tolerance for Unethical
Consumer Behaviour Provides a Key Insight to how People Behave as Consumers Worldwide‖. In this
study, consumer reactions to unethical consumer behaviour scenarios are investigated using sample
data from Austria, Brunei, France, Hong Kong, the UK, and the USA. Nationality is found to be a
significant predictor of how consumers view various questionable behaviours. Gender is not a
significant predictor, while age and religious affiliation are found to be significant predictors of
consumer ethical perceptions.

Krishna Mohan Y. and Naidu, (2015) have identified ―An Evaluation of Consumer Awareness in
Rural Markets‖. This paper deals with the extent of awareness in rural markets of India. It presents the
―Gold‖ available in this steadily growing market which has been going great guns since the 1980‘s
and now bigger than the urban market for both FMCG‘s and durables, the former with 53 per cent
share and the latter with 59 per cent of total market.

Paul Harrison and Robin Shaw, (2014) have contributed ―Consumer Satisfaction and Post-
Purchase Intentions‖. An Exploratory Study of Museum Visitors‖ This paper examines the relationship
between consumer satisfaction and subsequent intentions in the museum context as well as the
moderating influence of demographic characteristics such as gender, age and education in that
relationship. The relationship between satisfaction and a range of service elements, overall satisfaction
with the experience and intentions was investigated. Museum marketers can profit by examining the
'Value chain" of museum experience outlined in the model presented, especially the greater likelihood
of consumers recommending the experience to others than making a repeat visit themselves, and by
investigating segment differences beyond those reported here.

Sudarshan R. and Sridhar, (2013) have conducted ―Impact of Consumer Involvement of Buying
Decision - A Conceptual Frame-Work‖. Consumer involvement refers to the intensity of interest with
which consumers approach the market place. It is related to the consumers‘ values and self-concept
which influence the degree of personal importance ascribed to a product or situation consumer
involvement varies Krishna across different individuals, product, brands and situations.

22
Alet C. Erasmus, Meriam M. (2012) has focused on the ―The Paradox of Progress: Inexperienced
Consumers‘ Choice of Major Household Appliances‖. The results supported the initial notion that
limited consumer socialization may result in, and even necessitate inexperienced consumers‘ reliance

Meyers et al. (2003) explored the estimated energy, environmental, and consumer impacts of US
federal residential energy efficiency standards taking effect in the 1988–2007 period. These standards
were the subject of in depth analyses conducted as part of the United States Department of Energy‘s
(DOE‘s) standards rulemaking process. They estimated that the considered standards will reduce
residential primary 31 energy consumption and carbon dioxide (CO2) emissions by 8–9 per cent by
2020 compared to the levels expected without any standards. The standards will save a cumulative
total of 26–32 EJ (25–30 quads) by the year 2015, and 63 EJ (60 quads) by 2030 on surrogate
indicators of quality, such as price, brand name and store image, as compensation for lack of
appropriate product knowledge unfortunately the use of surrogate indicators of quality does not
necessarily imply informed, responsible buyer behaviour.

Christopher P. Blocker, Daniel J. Flint, (2007) has analyzed that ―The Relationship between
Satisfaction, Loyalty and Buying Intention Perceived by Spanish Consumers‖. Scale development was
based on the review of the most relevant literature regarding food marketing and agribusiness. Data
were collected through a structured questionnaire. A structural equations model was applied to analyze
the relationships among consumer satisfaction, loyalty and buying intention. The results show that a
higher satisfaction leads to greater levels of loyalty and buying intention of the consumers.

Losarwar attempted to examine the influence of socio-economic profile, role of family and reference
groups, life style, brand awareness, factors influencing, buying motives, effectiveness of promotional
plans on the purchase decision in respect of select five durable products - Television, Washing
Machine, Refrigerator, Mixer and Fan. The results of the study revealed that majority of the
consumers purchased the television, washing machine and Refrigerator from authorised dealers
whereas mixer and fan from retailers. Company‟s advertisements, reputation, price and quality of the
product were some of the factors that influenced the choice of consumer durables. The study
concluded that the modern market is highly competitive and transitional. Thus, the role played by

23
consumer is very prominent and the marketer should consider the behaviour and attitude of the
consumers before introducing the product into the market.

Ruche and Harman made a comparative study on urban and rural consumer behaviour. Their study
revealed significant difference in considering brand image, guarantee, warranty, credit availability,
foreign collaboration, latest technology and after sales service and insignificant difference between the
two populations in considering durability and price while making purchase decision. The first three
most important factors in the rural market were price, credit availability and durability, where as in the
urban market the first three factors were price, latest technology and durability.

Mubarak Ali attempted to study the influence of family members in the purchase decision of durable
goods. The aim of the study was to find out the role played by the husband and wife in the process of
need identification and fulfillment with respect to the purchase of consumer durables. The respondents
chosen for the study were in the age group of 21 to 51 years and above, their family monthly income
ranged from 20,000 to 70,000 and above. The study revealed that all the families owned variety of
durables like television, motor car, two-wheeler, washing machine, vacuum cleaner, etc. The study
asserted that majority of the respondents gave importance to their friends‟ opinion and suggestions
based on their earlier purchase behaviour. The study concluded that to bring about lasting happiness in
„one time purchase‟ decision should be a joint decision.
Illias tried to find out the differences in consumer behaviour between urban and rural consumers, with
respect to their socio, economic, demographic background, with regard to durable products (TV). His
study concluded that basically there was no difference between the urban and rural consumers.
However it was asserted beyond doubt that the motivational factors influenced the consumers to a
greater extent. Brand patronization existed, particularly with the reputed brands.

Hitesh D.Vyas explored the important factors and sources of information in purchase of consumer
durables among households in Bhavnagar city. He opined that the market for consumer durables has
become more competitive and the producers of durable products should understand consumers‟
interest much to find higher sale of their products. His study analysed the important factors and
sources of information that influence the purchase of durable goods. The study revealed that company
or brand name, guarantee/warrantee, price and after sales service were the important factors in

24
purchase of durables. The sources of important information were authorized dealers‟ shop, technical
expert advice, role of TV as media and influence of friends, relatives and neighbours. The study
concluded that the competitive market provides opportunity on one hand and threats on the other hand
to both the consumer and the producer. Manufacturers or marketers have improved core products with
value addition to enhance customer satisfaction more in the similar price range.

Sarwade opined that to sell durables products in market, the company image and price were more
important than the name of the product. His study revealed that consumers in urban areas preferred
costly and quality products but those in rural area preferred low cost durables. It was also observed
that, the higher income groups customers from city and rural areas keep changing their attitude
towards the purchasing pattern of consumer durable goods. They purchased moderate and
technological brands products from the market. The study also revealed that the young generation
customers always spent more money on luxurious durable goods and services, and the female
customers were more keenly interested in the purchase of consumer durable goods in the market. It
was concluded that the price was the main sales appeal for consumer durable goods for middle income
group and they bargained over the purchases but sometimes higher income group customers did not
worry about the price of the consumer durable goods.

The market for consumer durables is becoming more competitive now a days. Therefore, the producer
of durable products should understand consumer interest much to find higher sale of their products.
Marketers communicate with consumers and try to convince through every possible media. To achieve
success in the market, it has become highly inevitable to produce goods as preferred by the customer,
as he is the kingpin around whom the entire marketing activity revolves. Thus, a marketer who
understands the behaviour of the consumers and plan his marketing strategies to suit the needs and
aspirations of the target market will definitely have an advantage over his competitors.

Gaurar Jaiswal, Dr. PraveenSathu, Manita Matharu, (2010) made an attempt in their study
“Consumer Preferences towards Service Industry: A Factorial Study of Restaurants”, they suggest that
payment options and behaviour of staff has emerged as International Journal of the most important
determinants of factor affecting selection of restaurant. They also suggest that, the restaurant

25
management must focus on its ambience and food packaging. The behaviour of the staff should be
polite so us to gain loyalty of consumer.

Rohit S. Kunder and M. Devaraj,(2010) made an attempt to study the “Changing Patterns of Food
Consumption in Karnataka”. This analysis points out that the consumption basket of the rural and
urban households is getting diversified. With urbanization the non-cereal / animal product food is
emerging as an important source of nutrition. The food gap between urban and rural masses are
widening much and within themselves as well. Agricultural policies needs framed in a pragmatic
manner to have impact on the structure of production, processing, marketing system to ensure intersect
oral food security of the state.

Lilly J., (2010) made an attempt to study, “Customer Perception and Preference towards Branded
Products with special Reference to Television sets”. This study suggested that pricing, promotion deals
and product availability, all have tremendous impact on the position of the brand in the consumer's
preference set. This study concludes that the demographic valuable such as age, gender, educational
qualifications are quite popular with the rural folks.

Aradhana Krishna (2003) viewed that buyers’ purchase behaviours can be influenced not only by the current
prices of a product but also by those prices expect in the future.

Bhawaniprasad and Kumari (1987) have analyzed “Impact of advertising on consumer durables markets: A
study of Refrigerator consumer”, in this study a ranking/importance of refrigerator among other consumer
durables is studied. Study of 200 owners of Allwyn refrigerator in the twin cities of Hyderabad and
Secunderabad and Districts of Nizamabad and Karimnagar in Andhra Pradesh indicates that a very positive
impact of advertising is found on the consumer durables market.

Bayus (1991) studied “The consumer durable replacement buyer”, and found that replacements account for a
substantial portion of the sale of consumer durables in the U S. Results of replacement of automobiles indicate
that “early” replacement buyers are more concerned with styling and image and less concerned with costs than
“late” replacement buyers.

26
Gupta & Verma (2000) have done a study under convenience sampling of 50 household of New Delhi by
questionnaire. It indicates that husband’s influence is considerably higher that the wives. Children also play an
active role in brand selection of CTV.

Jain and Sharma (2000) studied 584 respondents out of 800 questionnaires of Delhi in five professional
category observed that selected products represent different product categories in terms of both durability and
frequency of purchase as required. Study shows that the levels of consumer involvement differ across products.
As against non-durables, consumer perceives durables as more involving products.

Mujahid-Mukhtar E, Mukhtar H (1991) has studied role of decision making for household durables: good
measure of women's power within a household in Pakistan. It is their influence in the purchase of new home
improvement technology good (cars, appliances, etc.), who’s expense and life-long nature makes their purchase

27
 CHAPTER- 4

RESEARCH METHODOLOGY

4.1 Objectives of Study:

 To the Comparative analysis of consumer preferences towards ceiling fans

 To analyse the price discrimination of ceiling fans in various areas of Delhi and Gurgaon

4.2 Methodology

- Comparitive analysis of consumer preferences towards ceiling fans

o The research type used in this report is an Empirical Study and the sample size
is 200.
o Data Collected
Primary data is information that you collect specifically for the purpose of your
research project. An advantage of primary data is that it is specifically tailored
to your research needs. The data collected in this research was through
probability sampling.

o Research Tool:
Questionnaire through Email

- Price discrimination of ceiling fans in various areas of Delhi and Gurgaon

o The research type used in this is Exploratory Study and the sample size taken
for this report is 60 outlets.
o Data collected

28
 Primary data is information that you collect specifically for the purpose of your
research project. An advantage of primary data is that it is specifically tailored
to your research needs. The data collected in this research was through
probability sampling.
o Research Tool:

Charts, pie charts. Diagrams, Ranks, Weighted Rank and Percentage.

- Research Area:
 Delhi
 Gurugram

29
 Chapter- 5

Data Analysis and Interpretations

1. Brand names of electric fans you are aware of:

Awareness of Brand Names

Brand Name Frequency of Viewers Percentage
Crompton 118 29%
Havells 106 26%
Usha 95 23%
Orient 90 22%

Brand name of ceiling fans consumers are aware

Orient Crompton
22% 29%

Usha
23% Havells
26%

Interpretation: A survey of 200 consumers from Delhi was undertaken, where they asked to tick
the Brand name of Electric Fans they know. According to analysis, it is clear that majority of
consumers know about Crompton(118 Consumers) followed by Havells (106 Consumers).
This indicates that Cromptonis a renowned name in Delhi & Gurgaon Region.

30
2. Source from where you get information about fans.

Different Media Approach

Information Source Frequency of Viewers Percentage

Advertising 89 25.50
Promotions 101 28.93
Retail Outlets 97 27.79
Family/ Friends 53 15.18
Word of mouth 9 2.57
Others 0 0
Total 100

Different Sources of Information

Word of mouth
Others
3%
Family/ Friends 0%
15%
Advertising
25%

Retail Outlets
28% Promotions
29%

Interpretation: The data mentioned in above table represents the information source. How does
consumer knows about a particular Brand. The above analysis shows that majority of the
consumers knows about a Brand through the Promotional Activities undertaken by the particular
Brand followed by Retail Outlets, where consumers personally visits and collect information
about fans before purchasing them.

31
 3. Most preferred brand of electric fans.

Ranks are given by consumers.

Rank => 1 2 3 4 5 6
Brand Name Total Average
Crompton 46 44 41 42 24 1 198 33
Havells 53 57 51 26 12 0 199 33.17
Usha 47 52 30 36 27 5 197 32.83
Orient 28 27 45 53 46 1 200 33.33

Weights are given to different Brands

Ranks Weights Crompton Havells Usha Orient
1 20 1060 920 940 560
2 18 1026 792 936 486
3 16 816 752 480 720
4 14 364 588 504 742
5 12 144 288 324 552
6 10 0 10 50 10

Ranking of Brands according to their total weights

Weighted Brands
Rank
1 Crompton
2 Havells
3 USHA
4 Orient

32
 Interpretation: In the analysis, consumer is asked to rank the most preferred brand according to
themselves. An analysis is done on 200 consumers in which they rank the brand according to their
preference.
To make the analysis valuable, weights are given to each rank. Rank 1 is very important, so
highest rank is given to it, followed by Rank 2 and Rank 3 and so on.
According to weighted rank, it is clear that majority of consumers has given the Rank1 to
Crompton. It means that majority of the consumers preferred Crompton over other Brands
followed by Havells as they given Rank 2 to Havells and then Rank 3 to USHA.

4.Brand which the consumers are currently using.

Brand Name Freequency Of Percentage

viewers
Crompton 72 32
Havells 56 25
USHA 56 25
Orient 40 18

Brands which consumers are currently using

Orient
18% Crompton
32% Crompton
Usha Havells
25%
Havells Usha
25% Orient

33
Interpretation: The information in above table shows that from among diffeent Brands which
Brand majority of the consumers are using. It shows their preference towards the particular brand.
From the analysis, it is clear that majority of the consumers are using Crompton followed by
Havells and Usha.
This comes out with the conclusion that in Delhi and Gurgaon Region, Crompton is the most
preferred brand by consumers as it get the highest ratings than other Brands.

5.Time duration of consumers using a particular Brand.

Time Duration Recorded

Time Period Number of Viewers Percentage
Less than 3 months 6 3
Less than 6 months 24 12
Less than 1 Year 44 22
More than 1 Year 126 63
Total 200 100

Time Period

Less than 3 months

Less than 6 months
Less than 1 Year
More than 1 Year

34
Interpretation: Information in above graph shows that how long a consumer can stick to a
particular Brand without switching to other Brand. Above analysis shows that consumer switching
cost is high as they don’t switch to other brand easily, if they are satisfied with the Brand they are
using.
Around 63% of consumers have been using their Brand for more than 1 year. This is a very high
percentage which clearly indicates that consumers don’t switch to other Brand easily. After
conversating with them, they clearly said that if they don’t find any problem with the Brand they
are using, they don’t switch to other Brand unnecessarily.

6.Satisfaction of consumers with the brand they are using.

Brands Very Satisfied Neutral Dissatisfied Very

Dissatisfied
Satisfied
Crompton 22 30 5 5 0
Havells 24 20 2 3 0

USHA 22 25 3 2 0

Orient 12 30 4 0 0

35

30

25

20

15

10

0
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

Crompton Havells USHA Orient

35
Interpretation: Information given in above table shows that, if the consumers are satisfied with
the Brand, they are currently using or not.

It clearly concluded that 99% of the consumers are satisfied with the Brand they are using. As
they don’t find any problems with the Brand they are using currently and they are fully satisfied
with their After Sales Service and Performance.
1% consumers are not satisfied, as they mentioned that they are not satisfied with After Sales
Service of the Brand they are using. If the problem arises with the Fan, they need to make several
calls to Company’s Service Center for technician services which irritates the consumer because of
unsatisfactory response.

7.Attribute that attract consumers to purchase Electric fan. Ranking is given

by consumers.

Ranks are given to Attributes

Rank => 1 2 3 4
Attributes Total Average
Price 64 73 49 10 196 49
Convinience 42 53 53 52 200 50
After Sales 30 49 59 56 194 48.5
Service
Brand Name 61 22 34 80 196 49
Total 197 197 194 198 786

36
 Weights are assigned to different attributes
Rank Weight Price Convenien After Sales Brand
s s ce Service Name
1 20 1280 840 600 1220
2 18 1314 954 882 396
3 16 784 848 944 544
4 14 140 728 784 1120

Weighted Rank is given

Weighted Rank Attributes
1 Price
2 Convinience
3 After Sale
Services
4 Brand Name

Interpretation: From the analysis, consumer is asked about to Rank the attributes which attracts
them to purchase a particular Brand. Different attributes have been given above ex- Price,
Convenience, After Sales Service, Brand Name.
An analysis is done on 200 consumers, Different views has been taken from them and noted
down. Weights have been assigned to them according to their preference.According to weighted
rank, it is clear that Price is the main attribute which people look before they purchase a particular
brand followed by convenience and after sales service

37
 8. What kind of promotional activity do you prefer with ceiling fans?

Brands Number of Viewers Percentage

Dscount 45 22.50%
Gifts 100 50%
Prize offers 35 17.50%
Others 20 10%

Number of Viewers

Others Dscount
10% 22%
Prize offers
18%

Gifts
50%

Interpretation: In the above graph it can be seen that 50% of the customer wants gifts in the
promotional activity and 22% wants discount followed by 18% with prize offers.

38
 9. How do you rate the promotional activities of the product?

Brands Very Satisfied Neutral Dissatisfied Very

Dissatisfied
Satisfied
Crompton 22 30 5 5 0

Havells 24 20 2 3 0

USHA 22 25 3 2 0

Orient 12 30 4 0 0

35

30

25

20

15

10

0
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

Crompton Havells USHA Orient

Interpretation: In the above graph we can say that havells has a very good promotional activity
followed by Crompton and USHA. It is also shown that Crompton is on second no. in promotional
activities followed by USHA. Orient has to improve in the promotional activities.

39
10.What do you feel the credit period given by the brands?

Brands Very Satisfied Neutral Dissatisfied Very

Dissatisfied
Satisfied
Crompton 18 30 5 4 0

Havells 20 20 2 4 0

USHA 19 25 3 3 0

Orient 12 30 4 0 0

35

30

25

20

15

10

0
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

Crompton Havells USHA Orient

Interpretation: From the above table and graph it is clear that havells has very good credit
period than any other brands followed by USHA, Crompton and Orient.

40
 11.Do you have any complaint about the brands product?

Brand After Sale Quality of the Pricing Others

services product
Crompton 12 20 6 3
Havells 22 25 10 10
USHA 25 20 15 5
Orient 21 15 18 9

30

25

20

15

10

0
After Sale services Quality of the product Pricing Others

Crompton Havells USHA Orient

Interpretation: From the above table it is clear that customers have more complaints in havells in all
the segments excluding price. Crompton and USHA are also facing the problems in the quality. In
pricing segment orient is at the top.

41
 12.What do you feel the after sale services given by the brands?

Brands Very Satisfied Neutral Dissatisfied Very

dissatisfied
Satisfied
Crompton 18 10 5 5 0

Havells 20 25 10 3 0

USHA 19 25 7 3 0
Orient 12 30 4 0 0

35

30

25

20

15

10

0
Very Satisfied Satisfied Neutral Dissatisfied Very dissatisfied

Crompton Havells USHA Orient

Interpretation: Customers are Highly satisfied from USHA’s after sale services followed by
Crompton and havells.

42
- Price discrimination of ceiling fans in various areas of Delhi and Gurgaon

The data was collected from the various markets:

Ceiling Fans price from Bhagirath place:

Shops Price
Crompton USHA Havells Orient
Gaurav-Vijay Electricals 1500 0 0 0
Jay Kay Electricals 1475 0 1795 2000
VS Electric Co. 1510 1690 1780 0
Poweroack Electricals 1500 0 1810 0
Sujata Electricals 1490 1690 1780 0
IK sons 1480 1680 1750 0
AB pal Electricals Pvt.Ltd 1520 1650 1800 0

2500
2000
1500
1000
Price Crompton
500
0 Price USHA
Price Havells
Price Orient

43
Ceiling Fans price from Rohini:

Shops Price
Crompton USHA Havells Orient
Sawan Electricals 1350 0 2000 0
Bhagwati Electricals 1400 0 0 0
Moksh Trading Co. 0 0 2010 0
Fairdeal Enterprise 1390 1500 1900 2500
Haryana Electricals 0 1550 0 2200
SK Electricals 1350 0 1990 0
Oberoi Electricals 1450 0 1930 0
Jaisons Lighting System 1410 0 2010 0

3000
2500
2000
1500
1000 Price Crompton
500
0 Price USHA
Price Havells
Price Orient

44
Ceiling Fans price from Tilak Nagar:

Shops Price
Tilak Nagar: Crompton USHA Havells Orient
Oberoi Electricals 1500 0 0 0
Guru Nanak Electricals 0 0 1800 0
G.R. Narang Electricals 0 1600 1750 0
Heera Electricals 1490 1590 0 0
Ginny Powerhouse 0 1610 0 2000
Sethi Electricals 1450 0 1790 0
Delco Electricals 1500 0 0 1990

2500
2000
1500
1000
Price Crompton
500
Price USHA
0
Price Havells
Price Orient

45
Ceiling Fans price from Patel Nagar:

Shops Price
Patel Nagar Crompton USHA Havells Orient
Ravdeep Electricals 1450 1500 1700 0
Dewan Electricals 1500 0 0 0
New Aura Electro Market 1475 1550 1690 0
Madan Handlooms and Eeltricals 0 0 1650 2200
NK Electricals 1500 1600 1690 0
Sanskriti Electronics 1490 0 1710 0

2500
2000
1500
1000 Price Crompton
500
Price USHA
0
Price Havells
Price Orient

46
Ceiling Fans price from Shahadara:

Shops Price
Shahdara Crompton USHA Havells Orient
Rudra Electricals 1110 0 2050 2300
Goyal Electronics 950 1500 0 2800
Arora Electricals 1090 1400 1888 2500
Paras Electricals 900 0 1890 0
Rana Electricals 0 1290 0 2450
Gupta Fans Shops 1100 1600 2000 2650

3000
2500
2000
1500
1000 Price Crompton
500
0 Price USHA
Price Havells
Price Orient

47
Ceiling Fans price from Govindpuri :

Shops Price
Govindpuri Crompton USHA Havells Orient
Shri Kalka Traders 1450 1700 1500 2300
Datta Electrical Store 0 1690 0 0
Datta Electricals 0 1690 1550 2500
Bansal Sanitary and paints 1475 1650 1690 2800
Sanjay Electricals 1500 0 1600 2450
Shiv Electricals 1490 1710 0 2650

3000
2500
2000
1500
1000 Price Crompton
500
0 Price USHA
Price Havells
Price Orient

48
Ceiling Fans price from Mayur Vihar :

Shops Price
Mayur Vihar: Crompton USHA Havells Orient
Arcon Enterprises 1200 1490 1700 0
Hari Electricals 1000 0 0 0
Ganpati Electricals 0 1550 1700 0
Y.k Electricals 900 0 1900 0
R.S Electricals 0 1540 1750 0
MaaBhagwati Electricals 1100 1550 2000 0

2500
2000
1500
1000
Price Crompton
500
Price USHA
0
Price Havells
Price Orient

49
Ceiling Fans price from Preet Vihar :

Shops Price
PreetVihar: Crompton USHA Havells Orient
Vikrant Electronics 0 1400 1800 0
Shyam Electricals 1200 0 0 2220
Gautam Electricals 0 0 1900 0
Ganpati Electricals 1150 1390 1890 0
ShriShyam Electricals 1175 0 0 0
Pec Boilers Electricals 1300 0 0 0
Aashirwad Electricals 0 1500 0 0

2500
2000
1500
1000 Price Crompton
500 Price USHA
0 Price Havells
Price Orient

50
Ceiling Fans price from Old Gurugram :

Shops Price
Old gurugram: Crompton USHA Havells Orient
India Electrical Fans and Home Appliances 0 0 2200 3035
Arora Electricals 0 2000 0 0
Baba Electrical Works 1800 1900 0 3000
M/S. Dev Electricals 1850 0 2250 2850
ShivamTradingCo. 1790 2010 2400 2800
K.J. Electricals 0 0 2500 2900

3500
3000
2500
2000
1500
1000 Price Crompton
500
Price USHA
0
Price Havells
Price Orient

51
Ceiling Fans price from Sikanderpur :

Shops Price
Sikanderpur: Crompton USHA Havells Orient
Inder Electric 0 0 2000 0
Balak Ram BansariDass& Company 0 0 2010 0
Gupta Enterprise 0 1700 0 0
SwagataElecricalsPvt.Ltd. 1450 1690 1990 0
Sethi Electrics 1500 0 1980 0
M.R. Electricals 1490 1710 2000 0
Mohit Electricals 0 1750 2020 2999
Sai Electricals and Electronics 1500 0 0 2500

3500
3000
2500
2000
1500
1000 Price Crompton
500
Price USHA
0
Price Havells
Price Orient

52
SWOT Analysis of USHA.

SWOT Analysis
1. Oldest Brand and Manufacturing capability
2. Wide range of Fans
3. Quality Product
Strengths 4. Distribution Network across the country
5. Market leadership and price competitiveness
6. Has a strong workforce and good brand presence due to TVCs and print
ads
1. The brand has less penetration across international market
2. Less attractive features
Weaknesses
3. High prices
4. Market share is limited due to intense competition
1 Addition of new designs
2. Growth in its product line could increase demand
Opportunities 3. Population growth and urbanization is increasing the demand
4. Emphasis on in-house R&D for Technology Development
5. Focus on Technology Intensive Products
1. Maturing categories,products, or services
2. Competition from other brands
Threat
3. Cheaper technology
4. Price wars by E Commerce companies

53
The following table contains an average monthly sale of shop in Delhi NCR area

Ceiling Fans (Average Sale per shop)

Brands
Monthly Sales Annual sales %-age of sale
Crompton 200 2400 35.09 %
Havells 150 1800 26.32%
USHA 120 1440 21.05%
Orient 100 1200 17.54%

Average Monthly Sales of one Shop

17.54%
35.09%

Crompton
Havells
USHA
Orient
21.05%

26.32%

Graphical illustration of the above table

 From the analysis Crompton is the top seller of Ceiling Fan having 35.09% followed by
Havells 26.32%, Usha 21.05% and Orient at 17.54%

Competition Analysis
54
• The major competitors are:

Crompton - No.1 player in the industry

- Very high brand pull in the market
- High market share in the builder segment
- High quality
- Presence in lighting and fan outlets

Havells - Very strong in electricals

- Attractive product designs with good quality
- Aggressive advertising and ‘below the line activity’.
- Effective mix of fan and electrical outlets
- Presence in Fans and Lighting outlets

USHA - No.3 player in the fan market

- Good product designs with high quality manufacturing
- Aggressive advertising and ‘below the line activity’.
- Effective mix of fan and electrical outlets

Orient - Very good quality – Product quality +

- Price =Value for money
- Good demand pulls
- Strong in exports
- Now entered CFLs and electricals

55
Pricing Analysis

Prices play an important role in the functioning of market economies by providing a link
between supply and demand of products and services. Company revenue and profit is
generated through prices.

Usha Crompton Havells Orient

Model : Striker Model: Jura 1200 Model: Jura 1200 Model: Quaser
1200 mm sweep size 1200 mm sweep size 1200 mm sweep size 1200 mm sweep size
Air Delivery 240 Air Delivery 230 Air Delivery 235 Air Delivery 225
Power : 80 Watts Power : 74 Watts Power : 74 Watts Power : 68 Watts
MRP: Rs. 2080/- MRP: Rs. 2345/- MRP: Rs. 2345/- MRP: Rs. 2007/-

Though the MRP of Crompton is high, they offer huge margins on MRP to Distributors/ Dealers

Distributors/dealers share high margins to retailers, because of that the end customers getting fans at
low price.

Crompton keeps the same the pricing strategy as above in all their models/variants like Standard,
Premium and Lifestyle Fans and therefore the customers get Crompton fans at low price keeping the
product quality at high. This is the reason Crompton become the No.1 player in the Fan market.

56
 Chapter-6
Conclusion, Limitations, Findings and Suggestions

Findings

The marketer, irrespective of operation in an urban or a rural area, gives importance to

marketing, its concept and objective of satisfying consumers with goods and services for a
profit.The four P’s which make up marketing mix are equally relevant in both the cases.
However, the basic difference in these two segments lie in demographic, socio cultural and
economic environment. A sincere attempt has been made in this research to examine rural
marketing of ceiling fans in terms of its challenges, practices and effective management of
marketing mix which comprises of product, price, place and promotion in the rural
environment .The findings of the study and suggestions for the present and prospective
marketers keeping the concept of four aspects of marketing have been given here. This will
help them to device their marketing strategy for the rural market .

Market Shares of the brands in the market

Markets in Delhi

Brand-wise Market Share in Delhi

Brands Avg Sale Nos. Share %-age
Crompton 7080 47.90%
USHA 2426 16.40%
Havells 4360 29.50%
Orient 905 6.10%

57
 Share %-age
Orient Crompton
6% 48%
Havells Crompton
30%
USHA
Havells
USHA Orient
16%

Graphical illustration

For the above analysis data collected from the selected shops in Govind Puri, Tilak Nagar,
Patel Nagar, Rohini and Baghirath Place.

From the above data analysis Crompton having market share of 48%, Havells 30%, Usha 16%
and Orient at 6%.

Gurgaon Market

Brandwise Market share in Guragon

Brands Avg Sale Nos. Share %-age
Crompton 1090 25.90%
USHA 920 21.90%
Havells 1400 33.30%
Orient 790 18.80%

Share %-age
Orient Crompton
19% 26%

Havells USHA
33% 22%

58
 Graphical illustration of the data analysis in Gurgaon market

For the above analysis data collected from the selected shops in Sadar Bazar and Sikanderpur
markets.

Analysis shows that Havells leading with 33% market share followed by Crompton 26%,
Usha 22% and Orient at 19%

Area-wise Market Share of Ceiling Fan Brands

Brands Gurgaon Delhi

Crompton 25.90% 47.90%
USHA 21.90% 16.40%
Havells 33.30% 29.50%
Orient 19% 6.10%

50.00%
45.00%
40.00%
35.00%
30.00%
25.00% Gurgaon
20.00% Delhi
15.00%
10.00%
5.00%
0.00%
Crompton USHA Havells Orient

Graphical illustration on Market-wise share

Analysis shows that

59
 1) Crompton is in top position at Delhi & Faridabad markets with 47.90% & 53.40%
respectively and having 2nd position in Gurgaon Market.
2) In Gurgaon market Havells is in top position with 33.30% and having 2nd position in
other two markets (Delhi & Faridabad).
3) Usha is having 3rd position in all the 3 markets
4) Orient is stands at 4th position.

Conclusion
 The study concluded that most of the consumer is aware about the brands.
 Consumers get information about fans through advertising, promotions, family and friends.
 The brand whose after Sales Service is satisfactory get the positive response from
consumers. Majority of the customers are using the specific brand for a very long period of
time which concluded that consumer does not switch easily from one brand to another.
 Price is the most important attribute which attracts consumer towards particular brand.
 The findings of the study will also help the researchers and academicians in understanding
the consumer behaviour with the help of different factors influence the consumer buying
decision

60
SUGGESTIONS

It is possible to evolve effective strategies for marketing considering the

environment in which market operates and its associated problems .The suggestions given
here though not universally applicable, as much depend upon the product characteristics,
the targeted segment of the market, the choice of area, its economic condition and the
specific environment, but certainly provide a frame work for adopting marketing mix
strategies for marketing:

I. Present and Potential Market

1. Most preferred brands in each product type have monopoly indicating that other
brands can also make dent in the market by appropriate marketing strategies.
2. Segment wise product preference is varying, so the marketer has to understand the
taste and choice of the particular segment and tap the potential for his product
3. People have no confidence in local shops selling consumer durables. This
provides opportunity to the companies to launch their products with right
promotional and distribution strategies.
4. More brand choice should be made available to the people.

II. BRAND AWARENESS

1. The marketer should concentrate more on product attributes (quality) and not on
price, image which come only next to quality.
2. The area wise differences also exist while identifying the dominant factors
influencing the purchase so it is important consideration when selecting specific
areas of marketing activities.
3. The pricing and promotional strategy should match the needs of age group and
income of the target market.

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III. PROMOTIONAL STRATEGY

1. Mass media specifically T.V. should be used as promotional media. People have
access to it and identify a brand most through television
2. Advertising a particular product in a specific area requires studying the area wise
and product wise differences. Determining an advertising mix that suits the
product and area is expected to give better results.
3. Free gifts and price discounts should be made an integral part of promotional
package. A less priced consumer durable (of a new brand) can be given as a free
gift with a costlier one.
4. Village opinion leaders can be used for promoting the products.
5. Marketers catering to rural people should use more traditional and less modern
communication tools . A judicious mix of two with more stress on traditional
medium and clarity of message about product is sought here.

IV. DISTRIBUTION

1. Keeping in mind the preferences and choices of Customers companies

should device the distribution strategy so as to make the product available all the
time in rural outlets.
2. Supplies should be made regular.
3. Special efforts can be made of making latest brands available in market
specifically in haats etc. where canopy, mobile van etc can be used.

Limitation of the Study

Following are the important limitations faced during the research work; these limitations
always pose a challenge to the research

62
may not be useful for projection of behavioral aspect of customers of other cities.

for the validity of findings.

time of working and cost involved can be considered as one of the important
limitation.

63
 Questionnaire

1. Brand names of electric fans consumers are aware of:

Crompton USHA

Havells Orient

2. Source from where customers get information about fans:

Advertising Promotions

Retail Outlets Family/Friends

Word of mouth Others

3. Most preferred brand of electric fans:

Crompton USHA

Havells Orient

4. Brand which the consumers are currently using:

Crompton USHA

Havells Orient

5. Time duration of consumers using a Brand:

Less than 3 months Less than 6 months

Less than 1 year More than 1 year

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6. Satisfaction of consumers with the brand they are using:

Brands Very Satisfied Neutral Dissatisfied Very

dissatisfied
satisfied
Crompton
Havells
USHA
Orient

7. Attribute that attract consumers to purchase Electric fan. Ranking is given by consumers:

Price Convenience

After Sale services Brand Name

8. What kind of promotional activity do you prefer with ceiling fans?

Discount Gifts

Prize Offers Others

9. How do you rate the promotional activities of the product?

Brands Very Satisfied Neutral Dissatisfied Very

Dissatisfied
satisfied
Crompton
Havells
USHA
Orient

65
10. What do you feel the credit period given by the brands?

Brands Very Satisfied Neutral Dissatisfied Very

Dissatisfied
Satisfied
Crompton
Havells
USHA
Orient

11. Do you have any complaint about the brands product?

Yes No

If yes, specify

Brands After Sale Services Quality of product Pricing Others

Crompton
Havells
USHA
Orient

12. What do you feel about the after sale services given by the brands for the ceiling fans?

Brands Very Satisfied Neutral Dissatisfied Very

Dissatisfied
Satisfied
Crompton
Havells
USHA
Orient

66
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