Study of consumer behavior in appliances threat and dividing STRATEGIE for business enhancement.

PREFACE
With the need of an hour and the changing environment, Management Institutes these days have started giving more stress on the management training program as it is the first interface of a management student with the culture and environment of the Corporate World. It gives them the first hand information and experience to share and use their knowledge and bring out some meaningful results out of it. This is the opportunity where students learn to experiment theory in practice in the real World of Corporate Business. Our Institute has also been looking in the same direction to produce students with excellence and with great determination that can possess knowledge of theory along with practice. So for this we have undergone a Summer Training Program of 8 weeks in Bajaj Electrical ltd for a project on Study on consumer behavior to enhance the brand image of Bajaj appliances. For our project we are thankful to our Institute for providing us valuable encouragement and guidance which has facilitated us in making and completing our report.

Table of Content
Preface Acknowledgment

Chapter 1 1.1 1.2 1.3

Introduction
Introduction about The Company. A Background of the problem. Buying Decision Process.

1.4 1.5

Rational of study. Scope of study.

Chapter 2 2.1 2.2 2.3 2.4 2.5

Review of literature
Consumer buying behavior. Why consumer buy. What influence purchasing. Types of consumer purchase decision. How consumer buy.

Chapter 3 3.1 3.2

Objective of Study
Main Objective. Specific Objective.

Chapter 4 4.1 4.2 4.3 4.4

Research Methodology
Source of data. Research approach. Research design. Limitation of study.

Chapter 5

Observation/ Analysis & discussion

5.1 5.2 5.3

Questionnaire analysis. Demographic Analysis. Feature analysis.

Chapter 6

Conclusion/ Recommendation.

Chapter 7

Executive Summary.

Chapter 8

Bibliography.

Chapter 9

Annexure.

Chapter 1

Introduction

1.1

Introduction about the company:-

Currently, the domestic Home Appliances Segment is growing at around 20% on the back of rapid urbanization and improving purchasing power of the Indian consumers. Further, consumer preference is shifting to branded products from the unbranded and low-quality home appliances. Hence, share of the organized sector in the Home Appliances industry is set to improve going ahead. In the Home Appliances Segment, BEL (Bajaj Electricals Limited) is one of the fastest growing players and enjoys strong brand recognition. It is well entrenched in the Segment on account of having a strong distribution network of more than 1,25,000 Retail outlets. As per the companys internal estimates, the domestic Home Appliances market stands at around Rs4, 400cr and 65% of it is in the organized segment. BEL is the largest player in the Small Appliances market, with a market share of more than 15-30% in a range of products. Bajaj Electricals Limited (BEL) is an India-based consumer electrical products manufacturing company. Bajaj Electricals has 70 years of experience in the electrical market and is known for being an innovator and market leader in the Indian consumer electrical manufacturing sector.

About Bajaj Platini Appliances:-

Bajaj Platini is the premium range of home appliances from the house of Bajaj. Bajaj Platini is a brand apart - designed as a fitting accessory to new age Indias global aspirations. This range will surprise the customers with features never seen or experienced before. In many cases these features are for the first time ever in the Country. Theres more to every Bajaj Platini product than the numerous and unique features. Every product is an exceptional blend of classy designing and intelligent technology making each a one-of-its-kind offering in the market. Bajaj Platini is a range that makes a lifestyle statement whether you own it or choose to gift it ! With this range, Bajaj Appliances bring an array of products that redefine fine living. Right from the Water Heaters to match the decor of the bathroom, to the personalized setting features for precision temperature, the first digital OTG, the first Pop Up Toaster with LED that allows for precise browning of breads, Steam Irons with detachable water tank and a lot more. Bajaj Groups consumer electrical products manufacturing company Bajaj Electricals and Appliances unveiled its range of home appliances under the brand name Bajaj Platina. Further, it

has tied-up with UK-based Strix for heating element controls and Galanz of China for microwave ovens and Italian company Nardi for hobs, chimney and modular products, reports Business Line.

Commenting on the same, R Ramakrishnan, executive director, Bajaj Electricals said, We may enter the microwave and room heating devices as it is a fast growing category. Further, we are looking at more such tie-ups.

Bajaj Electricals had posted a turnover of Rs 14.04 billion in 2007-08. We are eyeing a turnover of Rs 17 billion by the end of this fiscal, added Ramakrishnan.

Bajaj Electricals has a chain of 600 distributors, 3,000 authorised dealers, over 2,50,000 retail outlets and over 230 service franchises spread across the country. Presently, it has five major strategic business units comprising of home appliances, fans, lighting, luminaries and engineering. During the quarter under review, Bajaj Electricals' net sales stood at Rs 979.38 crore from Rs 783.98 crore posted in the corresponding quarter last fiscal, a 24.9 per cent increase, the company said in a statement.

During the year 2010-11, gross turnover crossed Rs 2,763 crore with 22.9 per cent growth over the last year.

The net sales/income from operations of the financial year 2010-11 is higher by about 23 per cent at Rs 2,741 crore as against Rs 2,229 crore in the financial year 2009-10, it added.

For FY11, the net profit of the company has increased by 22.8 per cent to Rs 143.8 crore, as against Rs 117.1 crore in the corresponding period of the previous year, it said.

"The 4th quarter witnessed 24.9 per cent growth in revenues and 9.9 per cent EBIT. It was a difficult quarter with significant margin pressures due to commodity pressures. We have taken the right pricing decisions along with focus on profitable growth. The demand for all our products continues to be robust," Chairman and Managing Director Bajaj Electricals Ltd Mr Shekhar Bajaj said.

The company has announced 140 per cent dividend of Rs 2.80 a share of Rs 2 each for the financial year 2010-11.

Bajaj Electricals has 5 major strategic business units like:

Home appliances Fans Lighting Luminaires Engineering and related projects

Bajaj Electricals product lines include the following Appliances - microwave ovens, mixers, irons, toasters, electric kettles, room heaters, water filters OTGs, and gas stoves

Fans - ceiling fans, table fans, pedestal fans, wall fans, fresh air fans, and mannifique ceiling fans

Lights - fluorescent tubes, GLS lamps, and compact fluorescent lamps Consumer luminaries, miniature lamps

Luminaires - modern workplace lighting, Legend luminaires, commercial decorative lighting, retail lighting, area lighting, roadway lighting, industrial lighting, hazardous area lighting, Le Magique Luminaires, and Renaissance Luminaires.

The trust placed by the millions of consumers have fuelled the company into introducing the premium range of home appliances called Bajaj Platini - designed as a fitting accessory to new age Indias global aspirations.

Bajaj Platini is a brand apart. It is designed as a fitting accessory to a new age Indias global aspirations.The Platini range will surprise you and your customers with features never seen or experienced before. In some cases they are a first for the Indian sub-continent. But theres more to every Platini product than their numerous and unique features. Every product is an exceptional blend of classy designing and intelligent technology. Making each a one-of-a-kind offering in the market. Bajaj Platini is a range that makes a lifestyle statement whether you own it or choose to gift it.

The companys competitors in this segment include Philips, Morphy Richards, Inalsa.

Steam iron

Food processor

Juicers and Juicers Mixer Grinder

Pop Up Toaster

Sandwich Toaster and Grill Toaster

Water heater

Emergency light

Room Heater:-

Oven Toaster And Grill

Room Coolers:-

Kettles:-

1.2 A Background about the problem:Consumer buying behavior/Behavior strategy:A consumer is the ultimate user of a product or service. The overall consumer market consists of all buyers of goods and services for personal or family use, more than 270 million people (including children) spending trillions of dollars in the United States as of the late 1990s. Consumer behavior essentially refers to how and why people make the purchase decisions they do. Marketers strive to understand this behavior so they can better formulate appropriate marketing stimuli that will result in increased sales and brand loyalty. There are a vast number of goods available for purchase, but consumers tend to attribute this volume to the industrial world's massive production capacity. Rather, the giant To understand consumer behavior, experts examine purchase decision processes, especially any particular triggers that compel consumers to buy a certain product. For example, one study only 23 percent of the store, giving marketers a very limited amount of time to influence consumers. And 59 percent of all supermarket purchases were unplanned. Marketers spend a great deal of time and money discovering what compels consumers to make such on-the-spot purchases. Market researchers obtain some of the best information through in-store research, and will often launch new products only in select small venues where they expect a reasonable test of the product's success can be executed. In this manner, they known as the marketing profession is responsible for the variety of goods on the market. The science of evaluating and influencing consumer behavior is foremost in determining

which marketing efforts will be used and when.can determine whether a product's success is likely before investing excessive company resources to introduce that product nationally or even internationally.

CONSUMER NEEDS
Consumers adjust purchasing behavior based on their individual needs and interpersonal factors. In order to understand these influences, researchers try to ascertain what happens inside consumers' minds and to identify physical and social exterior influences on purchase decisions. On some levels, consumer choice can appear to be quite random. However, each decision that is made has some meaning behind it, even if that choice does not always appear to be rational. Purchase decisions depend on personal emotions, social situations, goals, and values. People buy to satisfy all types of needs, not just for utilitarian purposes. These needs, as identified by Abraham Maslow in the early 1940s, may be physical or biological, for safety and security, for love and affiliation, to obtain prestige and esteem, or for self-fulfillment. For example, connecting products with love or belonging has been a success for several wildly popular campaigns such as "Reach Out and Touch Someone," "Fly the Friendly Skies," and "Gentlemen Prefer Hanes." This type of focus might link products either to the attainment of love and belonging, or by linking those products with people similar to those with whom people would like to associate. Prestige is another intangible need, and those concerned with status will pay for it. However, goods appealing to this type of need must be viewed as high-profile products that others will see

in use. One benefit of targeting this type of market is that the demand curve for luxury products is typically the reverse of the standard; high-status products sell better with higher prices. Some equate the type of need to be met with certain classes of goods. For instance, a need for achievement might drive people to perform difficult tasks, to exercise skills and talents, and to invest in products such as tools, do-it-yourself materials, and self-improvement programs, among others. The need to nurture or for nurturing leads consumers to buy products associated with things such as parenthood, cooking, pets, houseplants, and charitable service appeals. Personality traits and characteristics are also important to establish how consumers meet their needs. Pragmatists will buy what is practical or useful, and they make purchases based more on quality and durability than on physical beauty. The aesthetically inclined consumer, on the other hand, is drawn to objects that project symmetry, harmony, and beauty. Intellectuals are more interested in obtaining knowledge and truth and tend to be more critical. They also like to compare and contrast similar products before making the decision to buy. Politically motivated people seek out products and services that will give them an "edge," enhancing power and social position. And people who are more social can best be motivated by appealing to their fondness for humanity with advertising that suggests empathy, kindness, and nurturing behavior.

(Consumers also vary in determining the needs they want to satisfy, while making a purchase decision of certain goods & services. Are they more concerned with meeting their own needs and buying what they want to, for their own happiness? Or do they rely on the opinions of others to determine what products and services they should be using? This determines, for example,

whether or not they will make a purchase just because it's the newest, most popular item available or because it is truly what they need and/or want. This also influences the way marketers will advertise products.

Cultural and social values also play large roles in determining what products will be successful in a given market. If great value is placed on characteristics such as activity, hard work, and materialism, then companies who suggest their products represent those values are more likely to be successful. Social values are equally important. If a manufacturer suggests their product will make the consumer appear more romantic or competitive in a place where those values are highly regarded, it is more likely consumers will respond.

1.4 Buying decision process:-

According to theoretical point of view the buying decision process for an individual requires following steps those are as follows: Problem recognition Information search Evaluation of alternative Purchase decision Post purchase evaluation

Problem Recognition:The buying process starts when the buyer recognizes the problem or need triggered by internal or external stimuli. With an internal stimulus (one of the persons)/ (customer) normal needs arises to a certain level and become a drive or need can be aroused by an external stimuli. whereas need can be aroused by an external stimulus such as sight of new things in a shop while purchasing other things.

Information search:After need arousal the consumer tries to solve it and gathers the sources and information about the product and information is searched from the individuals surrounding or individual uses his/her knowledge about the product which satisfies his/her need. Now suppose, if individuals need is to purchase a new car then in this case individual will search all the Information about a particular car which he/she is willing to buy. That is all the features, model, price, engine capacity, average etc.

Evaluation of alternatives:Having collected the information, the consumer clarifies and evaluates the alternative. There are many considerations from the part of judgment such as product attributes, importance, weight, brand image, utility function for each attribute, attitude etc. After evaluation of various alternatives he takes the decision to buy.

Purchase decision:Evaluation behavior leads the consumer to form a ranked set of preference. Normally a consumer buys the article he/she like the most but there are 3 more important considerations for taking buying decisions:- (a) attitude of others such as wife, relatives and friends, (b) anticipated situational factors as expected family income, expected total cost of the product and expected benefit of the product. (c) Unanticipated situational factors looks or manner of the salesman or the way the business is carried on.

Post purchase decision:After buying and trying the product, the consumer will feel some level of satisfaction or dis satisfaction and level of satisfaction will depend upon expectation and the product perceived performance. If the product matches up to his expectation the consumer is satisfied, if it exceeds he is highly satisfied if not then dissatisfied.