HISTORY OF THE COMPANY

YEARLY EVENTS 1972 The Company was incorporated on 24th May, at Vadodara. Shri D.D. Lakhanpal and Matsushita Electric Industrial Co. Ltd. Japan promoted the company. In 1972 Mr. D. D. Lakhanpal realized the potential for dry cells batteries in the Indian markets. So he, with the help of Mrs. Indira Gandhi, the then Prime Minister of India, visited Japan, where the world-class batteries are manufactured. They visited various battery producing companies one of which is Matsushita Electric Industrial Co. Ltd, the pioneer and world leader in the dry cell batteries industry. Lt. Mrs. India Gandhi was highly impressed by the business policies of Lt. Mr. Konu Suke Matsushita. So it was decided to set up a dry cell battery unit in technical and financial collaboration with Matsushita Electric Industrial Co. Ltd. in India. 1,66,666 shares taken up by promoters, directors, etc., and 2,50,000 shares allotted to Matsushita Electric Industrial Co. Ltd., Japan without payment in cash. 2,08,334 shares offered at par to the public in January 1973. So Matsushita entered Indian battery industry with a good 40% share.

1981 5,00,000 Right Equity shares issued at par in prop. 4:5.

-1-

1986 The Company received a letter of intent for the manufacture of 2,200 lakh pieces of dry batteries per annum with zinc chloride technology. 1987 The Company proposed to introduce UM3 type (pencil batteries and later UM1 type (standard type) batteries with the latest technology. 1989 UM 3D (NOVINO GOLD) batteries were introduced the first of its kind. The best batteries ever manufactured in India. The company offered 22,50,000 No. of equity shares of Rs 10 each for cash at par on `Rights basis' in the proportion 1:1 (all were taken up). At this stage the company, Matsushita Electric Industrial Co. Ltd. was still maintaining its 40% share. 1991 The Company proposed to expand the existing production capacity by establishing new plant and machinery to manufacture Hi-tech Eco-Friendly, Mercury free, UM-3 (R-6) Type of Metal Jacketed Penlite Dry cell batteries. 1994 During the year, superior quality NOVINO SUMO-UM-IS (R-20) batteries and PANASONIC Alkaline batteries were introduced. The Company introduced superior quality and cost effective Novino Sumo-UM-2S (R-6) Penlight type of dry cell battery with Zinc chloride technology. The company also introduced "Panasonic" brand alkaline batteries.

-2-

1995 The Company started implementation of ambitious gas lighter project. 1996 The Company introduced New Novino UM-IPN (R-20) type of dry cell battery in paper jacket section with the brand Novino Raja with a baby as a logo. Today in most of the rural areas of India people recognize this dry cell battery by that logo only.

About Mr. K.S.Matsushita

Born as the youngest of eight children in Wakayama Prefecture to an impoverished farming family on 27th November 1894. The family name has its origin in the large pine tree, which stood in the family compound - "matsu" meaning "pine" and "shita" for "beneath". Apprenticed to an Osaka charcoal brazier shop at age nine in the year 1904. Began working in a bicycle shop in February 1905. On 21st October 1910, he was employed at a branch of Osaka Electric Light Co. as an apprentice-wiring worker. Promoted to construction foreman three months later. In June 1917 he decided to start his own business. Invented the attachment plug and two-way plug. On 7th March 1918 he founded Matsushita Electric House wares Manufacturing Works, the predecessor of Matsushita Electric. Began marketing his plugs. On 15th December 1935 he incorporated the company as Matsushita Electric Industrial Co. Ltd., with nine subsidiary companies. On 10th January 1961 he assumed the position of Chairman of Matsushita Electric Industrial Co. Ltd. His son-in-law, Masaharu Matsushita, filled his former position of President. -3-

In May 1973 he assumed the position of Executive Advisor, and was succeeded by Vice President A. Takahashi as Chairman. On 29th April 1987 he was awarded First Class Order of the Rising Sun with Poulownia Flowers by His Majesty and Emperor of Japan. And he passed away at the Matsushita Memorial Hospital in Osaka in March 1989.

About the company

The Baroda-based company is a 51% subsidiary of the Matsushita Group of Japan and manufactures the NOVINO brand of batteries. The Indian promoters, Lakhanpal Group, holds another 7% Equity in the company. The company has two manufacturing units, located at Baroda (Gujarat) and Pithampur (Madhya Pradesh). The company is the third largest dry battery manufacturer and seller in India. The company has initiated cost cutting measures through backward integration as well as by producing vital punched metal and plastic moulded components in-house. Late Mr. D. D. Lakhanpal, the founder of the Matsushita Lakhanpal Battery India Limited & Mr. Konu Suke Matsushita laid the foundation stone of the Matsushita Battery India Limited, on 15th August 1972 at G. I. D. C. Makarpura Industrial Estate, Vadodara. The building work & installation of the machinery from Japan was undertaken rapidly & the production commenced from 2nd July 1973 with metal-jacketed cell in Hyper Grade in UM-1 & UM-2 segments. On 1st October 1973 MLBI, Vadodara introduced Hi-Top grade performance cell for the first time in India & on 1st January 1976 it introduced paper jacketed "SPECIAL" cells. Since then the company has progressed between ups & downs by sincere efforts of management & employees and the future has been paved for higher achievements. -4-

Companys Aim: "Our aim is to supply portable source of energy & its related products, thus contributing to the betterment of society, not only in India but throughout the world." Matsushita Lakhanpal Battery India Ltd., has a very simple and systematic philosophy. It has been clearly defined to all employees of the organization. The main vital philosophy of the organization is " To Make People
Before Product". This philosophy has been supported and implemented by all the employees from top level to lower management in the organization. The logic behind this philosophy is to achieve organizational goals and objectives. The main basic management objective of the company is " To Contribute to the Society ". Therefore, in order to achieve above said objective, the company has it's own creed and principles. 1973 Production commenced of metal-jacketed cell in "NOVINO HYPER" grade UM-1 and UM-2. First dispatch of Metal Jacket leak proof NOVINO Introduced HI - Top grade high performance cells for the first time in India. 1975 First Export consignment to Kuwait. 1976 Introduced paper jacketed "NOVINO SPECIAL" UM-1 cells. Introduction of UM-3 pencil dry cell battery. 1981 500 million productions achieved. -5-

1987 Foundation stone of Pithampur Project laid. 1989 Introduced Zinc Chloride Metal Jacket cell for the first time in India. Pioneers of Gold Segment in India. 1993 Installation of Machinery for mercury (Hg) free NOVINO GOLD (3D & 1D) 1994 Awarded ISO-9001 certificate 1996 4000 million productions achieved. 1997 Awarded ISO-14001 (EMS) Certificate Export Award. The Indian battery segment did see a lot of pressure in the last two years on account of dumping of low-priced Chinese batteries, which were being pumped in large volumes. However, that phase is now practically at an end as consumers have realized the dangers of using low-quality Chinese batteries. This has benefited battery manufacturers like Matsushita Lakhanpal.

For the year ended March 2003, the company reported a turnover of Rs 155.4 crore and registered a net profit of Rs.8.8. crore, thereby registering an EPS of Rs.11.4. As on March 2003, the company had an investment of around Rs. 20 crore in debt schemes of various mutual funds. It has announced a 30% dividend payout. In the first half of the current FY, Sales and Net Profits have dropped by 8% and 12% to Rs.87.56crore and Rs.4.13 crore respectively. However, given the brand equity of -6-

NOVINO, Cash available with the company and decreasing threat from Chinese manufacturers, the company should do well in the times to come.

Business Profile
Lakhanpal National Ltd (LNL) is a major player in dry cell batteries and was promoted by Matsushita Electric Company of Japan (51% equity) and the Lakhanpals. While the company produces all the 3 sizes of batteries, its presence is stronger in the small size, a segment-gaining fast in volumes with the proliferation of electronic goods in the country.

Recent Developments
The Company, which used to market its products under the brand name Novino in the dry cell segment, has launched the Panasonic brand of alkaline batteries. The company is focusing on the Panasonic brand, taking into consideration future growth prospects of the alkaline battery segment. The company has cut down on its raw material costs through backward integration, producing metal punched and plastic moulded components in-house. This has paid off handsomely in FY98 with a 58% surge in net profit. The company has been certified with both ISO 9001 and ISO 14001.

-7-

The map showing the locations of factories and offices of MLBI in India

-8-

The Baroda Factory

The Pithampur Factory

-9-

LITERATURE REVIEW
The principal task of marketing management is to fulfill the aspirations of the consumers. It is thus imperative to understand what the consumers want; how they make the choice; or what are there sources of information and influence processes etc. in this process an organization can identify new opportunities in the market; evaluate and monitor marketing actions; and in general, evolve better marketing program to serve the intere4st of consumers. Thus market research acts a link between the consumer and the marketer. Role of Market Research Market research is defined as the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in field of marketing. According to American Marketing Association (AMA) marketing research is defined as the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services. MR is the function which links the consumer, costumer, and public to the marketer through information information used to identify and define marketing opportunities and problems; generate; refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. MR is a systematic collection and analysis of information that is ultimately used in evolving some marketing decisions. Likewise, marketing manager(s) should provide a clear detailed scenario of the problems faced by the company before the market researcher. They must not use MR as a fire-fighting device or to justify some preconceived actions.

- 10 -

The Market Research Process MR exercise may take many forms but systematic enquiry is features common to all such forms. Being a systematic enquiry, it requires careful planning of the orderly investigation process. Through it is an oversimplification to assume that all research processes would necessarily follow a given sequence, MR often follow a generalized pattern which can be broken down and studied sequentially. Stages in the market research process In planning and designing a specific research project, it is necessary to anticipate all the steps that must be undertaken if the project is to be successful in collecting valid and reliable information. The steps of MR process are highlighted in the following flow diagram. The steps are explained below the figure. Defining the problem Statement of the research objectives Planning a Research Design Planning a sample Collecting the data Analyzing the data Formulation of conclusion Prepare and present the report

Defining the problem

- 11 -

Clear problem definition is of crucial importance in MR as in terms of both time and money. It is rightly said that a problem well defined is half-solved. Careful attention to problem definition allows the researcher to set the proper research objectives, which in turn facilitate relevant and economic data collection. Statement of the research objectives After clarifying and identifying the research problem with or without exploratory research, the research must be a formal statement of research objectives. Research objectives may be stated in qualitative or quantitative terms and expressed as research question statement or hypothesis. Planning a research design Once the research problem been defined and the objectives decided, the research design must be developed. A market design is a master plan specifying the procedure for collecting and analyzing the needed information. It represents a framework for the research action. The objectives of the study discussed in the previous step are included in the research design to ensure that data collected is relevant to the objectives. The researcher must at this stage also determine the type and source of information needed, the data collection methods, the sampling methodology and the data timing and possible costs of the research. Planning a sample Although the sampling plans included in the research design, the actual sampling is as separate and important stages in the research process. Sampling involves procedures that use a small number of items or parts of the population to make conclusion regarding the whole population. The first sampling question that needs to be asked is that who is to be sampled, who is

- 12 -

the target population. The next important issue concerns size how large or how small should a sample be? Generally speaking, large samples give reliable information than the smaller ones, but if probability sampling is used, a small proportion of the sample may give reliable measures of the universe. Collecting the data The data collection process follows the formulation of research design including the sample plan. Data, which can be secondary or primary, can be collected using variety of tools. These tools are classified into two broad categories, the observation method and the survey methods, all of which have their inherent advantages and disadvantages. In MR, field survey is commonly used to collect primary data from the respondents. Surveys can be a) personal, b) by mail, c) telephonic and d) by diary. It is common practice to use structured questionnaires prepared in advance, to elicit the necessary from the respondents. Whether it is personal or mail survey, it is necessary to design suitable questionnaire, conduct a pilot survey and undertake a pre-testing of the questionnaire. The pre-testing will enable the researcher to realize the shortcomings of his questionnaire. Secondary data means data that are already available i.e. they refer to data, which have already been collected and analyzed by some one else for some other purpose. When researcher utilizes secondary data, he has to look various sources from where he can obtain data. Usually published data is available in: 1) Various publications of central, state and local government 2) Various publications of international bodies 3) Technical and trade journals 4) Books, magazines and newspapers

- 13 -

5) Reports and publications of various associations connected with business and industry, banks, stock exchanges, etc. 6) Reports prepared by research scholars, universities, economist, etc in different fields 7) Public records and statistics, historical documents and other sources of publication information Analyzing the data Data processing begins with the editing of the data and coding process, tabulation and drawing statistical inferences. Editing involves inspecting the data collection forms for omission, legibility and consistency in classification. Before tabulation, need to be classified into meaningful categories. The rules for categorizing, recording and transferring the data to data storage media called codes. This coding process facilitates the manual or computer tabulation. If computer analysis is being used, the data can be punched and verified. Analyses represent the application of logic to the understanding of the data collected about the subject. In its simplest forms, analysis may be determination of consistent patterns and summarizing of appropriate details. The appropriate analytical tool chosen would depend on informational requirements of the problem, characteristics of the research designs and the nature of the data gathered. Formulation of conclusion, preparing and presenting the report The final stage in the research process is that of interpreting the information and drawing conclusions for use in managerial decisions. The research report should effectively communicate the research findings and need not necessarily include complicated statements about the technical aspects of the study and research methods.

- 14 -

The researchers are required to make both the oral and written presentation. Since each project is different, the presentation of each required originality. However, the better the earlier steps in the research process have been executed, the more likely is it that a good presentation would result. SOME ASPECTS OF MARKETING RESEARCH Consumer marketing research especially involves various techniques as the attitude measuring scales, the psychographics, the demographics, the semantics, etc. Any consumer marketing research involves in-depth analysis of the personality and age, income, family, habits, etc., as these tend to influence the answers of the consumers.

- 15 -

RESEARCH STUDY
The aim of this research is to study the dealers and customers perception and satisfaction level about the Novino brand dry cell batteries manufactured by Matsushita Lakhanpal Battery India Ltd. (MLBI). Objectives: To find the dealers overall perception and satisfaction level about Novino brand dry cell batteries with respect to other brands of dry cell batteries. To find the customers overall perception and satisfaction level about Novino brand dry cell batteries with respect to other brands of dry cell batteries. To study and understand the distribution network of the company. To study the customers and dealers attitude towards other brands as compared to Novino brand and their willingness to buy/sell Novino brand dry cell batteries.

- 16 -

RESEARCH METHODOLOGY Research Design: When the researcher is interested in knowledge the characteristics of certain groups such as age, sex, education level, occupation, etc.; interested in knowing the proportion of the population who have behaved in a particular manner; making the projections of certain things; or determining the relationship between two or more variable, Descriptive Study becomes necessary. That is why we have decided to go for a structured, undisguised Descriptive Study. Descriptive studies are well structured. Design in such studies must be rigid and not flexible and must focus attention on following: What the study is about and why is it being made? What techniques of gathering data will be adopted? How much material will be needed? Where can be the required data found? Processing and analyzing of the data. Reporting the findings.

To get the quantitative information during the study various methods can be adopted like watching or observing people, experimenting on prices and designs of the products, interviewing etc. Since we were required to interact with the subjects we have adopted personal interview/survey method.

- 17 -

SAMPLING An integral component of a research design is the sampling plan. Specifically, it address three questions: whom to survey (The Sample Unit), how many to survey (The Sample Size), and how to select them (The Sampling Procedure). Making a census study of the entire universe will be impossible on the account of limitations of time & money. Hence sampling becomes inevitable. A sample is only a portion of the universe population. According to Yule, a famous statistician, the object of sampling is to get the maximum information about the parent population with minimum effort. Properly done, sampling produces representative data of the entire population. Sampling Methodology: In our case the population/universe is too large around 35 lakhs. So we decided to go for probability sampling. Under this sampling design every item of the universe has an equal chance, or probability, of being chosen for sample. This implies that the section of the sample items is independent of the persons making the study that is, the sampling operation is controlled objectively so that the items will be chosen strictly at random. Probability sample may take the form of: Simple random sampling Systematic sampling Stratified sampling Cluster and area sampling Sequential sampling Multi stage sampling

In our case we have adopted Simple Random Sampling. In case of customers Population/Universe : Citizens of Baroda city and Halol - 18 -

Sample Size

One thousand (1,000)

In case of dealers Population/Universe : Retailers in and around Baroda city(i.e. Baroda district) Sample Size : Nine hundred (900)

Data Collection Method: Collection of data is the first step in statistics the goal of conclusion. The data collection process follows the formulation of research design including the sample plan. Data, which can be secondary or primary, can be collected using variety of tools. In our case we needed only primary data. Primary data can be collected in many important ways: Observation method Interview method Through questionnaires Through schedules Warranty cards Distributor audits Consumer panels Using mechanical devices Through projective techniques Depth interviews Content analysis

The most commonly used method to collect primary data is through field survey. Those surveys can be a) personal; b) mail; c) telephonic. It is common practice to use structured questionnaires prepared in advance, to elicit the necessary from the respondents. In our research we have adopted survey and interview method to collect data. - 19 -

Data Collection method

: Face to face Interviews

Data Collection Instrument : Structured, Undisguised questionnaire Source of Data: In case of customers: Students, self-employed, service people, businessmen and housewives In case of dealers: Provision and General stores, medical stores, photo studios, electrical and electronics shops, stationeries, etcc

- 20 -

BRIEFING ABOUT OTHER DRY CELL BATTERY COMPANIES

There are many dry cell battery-manufacturing companies in India. Some of them are listed below:

Eveready Industries India Ltd. (Eveready) BPL Indo National Ltd. (Nippo) Duracel Geep Energizer

BRIEFING ABOUT SOME COMPETITORS Eveready Industries India Ltd. Eveready Industries India Ltd. is heralded as the market leader of India when it comes to dry cell batteries and flashlights. Today the brand Eveready is synonymous with power, with a durable franchise that has spanned over a century. Its a name that has progressed with the country, be it lighting up a slushy monsoon path or keeping beat with a nation young with achievers. In this new millennium, sales of Eveready Industries India Ltd. have reached over US $200 million. The flagship of the Williamson Magor Group, Eveready has expertise in the areas of manufacturing, cultivating, marketing and - 21 -

distributing a diverse range of products. The portfolio ranges from carbon zinc batteries, rechargeable batteries, alkaline batteries and flashlights to packet tea and bulk tea. In fact the group has over 130 years of experience, growing the worlds finest teas in the most challenging of terrains. Some of the best tea brands in the world have a blend with the produce of Williamson Magor gardens. Thus from the first flush of tea in the

gardens to the first invigorating sip in the morning, Eveready is always there to revitalize your day. MILESTONES 1905 National Carbon starts its Indian operations with sale of batteries ImportedfromUSA. 1926 Ever Ready Company India sets up the first arc carbon factory at Canal Road, Kolkata. 1934 Eveready Company incorporated as a private company on 12th November. 1939 Camperdown Works - first modern battery plant established at Cossipore in Kolkata. 1941 Union Batteries merges with Eveready Company and the name is changed to National Carbon Company. 1951 Renamed as Union Carbide India Ltd, a subsidiary of world wide Multinational, Union Carbide Corporation. - 22 -

1959 Name 1995 Sale of shares of Union Carbide Corporation in Union Carbide India Ltd to Mc Leod Russel (I) Ltd. belonging to the Williamson Magor Group and a new name - Eveready Industries 1996 Mc Leod Russel (India) Ltd, merged with EIIL, bulk tea business brought into EIL fold. 2000 Bishnauth 2005 Brand EVEREADY is hundred years. Indo National Ltd. Indo National Ltd., the second largest dry cell battery manufacturer in India was incorporated in 1972 as a joint venture with Matsushita Electric Industrial Co., Ltd., of Japan with the goal of bringing the worlds best battery technology to the country. A lot of firsts are to its credit like the tamperproof top seal, Zinc Chloride technology in AA batteries, introduction of twin piece Manganese battery in shrink pack and Nippo Premium Gold, a first in India. Upgrading it further to Mercury free status, another first in India. Nippo also offers a range of torchlights from its stable. With factories at Nellore and Tada, both in Andhra Pradesh, Nippo caters to the soft energy requirements of the country. Tea Company merged with Eveready Industries India Ltd. India Ltd (EIIL). of the company changed to Union Carbide India Ltd.

- 23 -

Being Indias first certified battery company with ISO 9001 and ISO 14001, Nippo also has the ISI mark of quality on all its batteries. They have walked away with the Management Excellence Awards Silver and Gold from MEI, Japan. Nippo celebrated its 25th anniversary in 1998 and continues its tradition of providing world class products to its customers.

Brand building has been a part of the advertising exercise over the last few years, where leading celebrities like Rahul Dravid and Govinda have been engaged to campaign for Nippo across the country. Besides using he electronic media, a lot of outdoor activities through hoardings, wall paintings and mobile media like buses have been utilized extensively for Nippo. Duracell As part of The Gillette Company, Duracell is the world's leading manufacturer and marketer of high-performance alkaline batteries. Duracell also markets primary lithium and zinc air batteries as well as rechargeable nickel-metal hydride batteries The story of Duracell begins in the early 1920's with an inventive scientist named Samuel Ruben and an eager manufacturer of tungsten filament wire named Philip Rogers Mallory. Ruben came to the P.R. Mallory Company seeking a piece of equipment he needed for an experiment. But Ruben and Mallory saw an opportunity: uniting the one's inventive genius with the other's manufacturing muscle. Their partnership, which would last until 1975 with Mallory's death, was the bedrock of Duracell International. Samuel Ruben's inventions revolutionized battery technology. Amidst World War II, for instance, Ruben devised the mercury cell, which packed more capacity in less space and was durable enough for the harsh climates of wartime theaters like North - 24 -

Africa and the South Pacific places where ordinary zinc carbon batteries used in flashlights, mine detectors, and walkie-talkies couldn't hold up. P.R. Mallory manufactured millions of mercury cells for the war effort. The Mallory Battery Company was formed shortly thereafter. In the 1950's, Samuel Ruben went on to improve the alkaline manganese battery, making it more compact, durable, and longer lasting than anything before it. At about the same time, Eastman Kodak introduced cameras with a built-in flash unit that required more power than zinc carbon cells could provide. The cameras needed alkaline manganese cells but in a new size, the AAA. Mallory made them, and also licensed the technology to others because the company, at that time, had no consumer distribution. The photographic demand for power put alkaline cells on the map and the DURACELL brand was introduced in 1964. Soon, the consumer market for DURACELL batteries rocketed and supplies had to be rationed in the 1970's as manufacturing capacity caught up. Today, Duracell is the world's leading producer of high-performance alkaline batteries. The tradition of innovation started by Ruben and Mallory is still evident in new DURACELL batteries such as DURACELL ULTRA with M3 Technology. Duracell believes there is no limit to the potential of portable power.

- 25 -

QUALITY STANDARDS AND PRODUCT PROFILE

In this fast changing complex world, for a mass producer of Dry batteries, it becomes Inevitable to retain the respect of customers around the world. Providing higher standards of products and services to customers has been a prime motto for MLBI. With a perfect combination of advanced technology and Quality standards, MLBI today delivers the best in Battery Industry. A combination evolved over the past three decades. Ever since inception, MLBI has committedly provided portable sources of energy to customers in India and across the world. Today, millions of customers enjoy a source of light or a piece of entertainment powered by superior quality batteries made by the company. Its expanded product line-up caters to the varied requirements of its customers be it for the king of all batteries Novino Raja (Raja in India means a King) or be it for Novino Gold. MLBIs products are made for all types of customers both rural and urban. They give satisfaction to every pocket with economy as well as premium products. This success has been achieved by setting up a Quality Management System (QMS), a system, which ensures commitment of all employees towards compliance to stringent quality standards, an endeavor to meet the requirements of customers and achieve higher levels of Customer Satisfaction, a committed effort to give more than what the customer desires from the companys products and services, a - 26 -

commitment of all employees perfectly guided by the top-management of the company, a perfect blend of Management power and Manufacturing power (see Quality Policy). As part of this process, the company established the internationally accepted Quality Management System (QMS) and got certified for ISO 9001 standards. Thereafter, a series of internal and external audits, surveillance and re-certification audits have become a part of an annual calendar of activities. This system has been successful in demonstrating companys commitment to quality. All processes in MLBI, from a QMS perspective, are tuned to make every step in the process of making batteries focused on the customer. From the time a new design idea is generated, to the emergence of the final product, to its delivery and even to the extent of measuring the response of the customer all are well taken care of in this system. The continual improvement of the entire system regularly over-hauls all processes involved in achieving the final goal. An effort only to bring in the priceless smile on the face of millions of customers world-over. The Strength The Quality Within ISO 9001 Through MLBIs ISO activity the company formulated the QUALITY POLICY, which elaborates its commitment to quality and its future business direction, which includes its responsibility to the environment. The Quality Policy extends not only to the personnel within the organization, but also to members of its sales channel, its suppliers and sub-contractors. Thus ensuring the supply of high quality products at all times. The Quality Policy also especially underlines MLBIs commitment towards the preservation of the environment. MLBIs persistent efforts to meet the ISO 9001 requirements were duly rewarded on 28th January 1995 when it became one of the few companies in India to receive the ISO-9001 certification at the pre-audit stage itself. - 27 -

At Matsushita Lakhanpal Battery India Ltd., they believe that the ISO 9001 is not an end in itself. It is only the beginning and they strive hard to enhance customer satisfaction by continuous supply of good quality products to the customers all over the world as per their needs. Quality Policy To manufacture and supply dry batteries and related products to the customers as per their needs. In order to achieve this objective, MLBIs Quality Policy shall be:

1. Adherence to laid down specifications and systems. 2. For enhancing customer satisfaction, training / awareness shall be imparted to its employees, sales force and suppliers. 3. Promotion and facilitation of value creative Quality and process related activities with Business associates. 4. To make every effort for continual improvement in all business processes. As a responsible enterprise Matsushita Lakhanpal Battery India Ltd. shall strive to supply quality products to its valuable customer at the point of demand. Environment Management System (EMS) (A Step towards ECO friendly Operations) ISO - 14001 Certification (EMS) Nature has given us beautiful things beyond imagination. It is the responsibility of every human to maintain the eco-balance in tune with nature. Recognizing this responsibility towards nature, Matsushita Lakhanpal Battery India Ltd. (MLBI), decided to make environment-related aspects as part of their major activities. In spite of the fact that manufacturing of dry batteries does not result into

- 28 -

any large scale damage to the eco-system like other major industries, MLBI decided to strive for contributing in every possible way. Way back in 1996, an Environment Control Office (ECO) was set up in MLBI to take care of various Environment related aspects. These mainly included pollution control measures, creating environmental consciousness among MLBI workforce and members of the society, setting stringent benchmarks for achieving Environment Objectives, etc. Today MLBIs Environment Management System (EMS), in several cases, goes beyond the requirements of available external standards.

Several activities form a part of MLBIs efforts in this endeavor. Each employee of MLBI has been trained on issues related to the environment, impacts of their activities and requirements for successful implementation of an Environment Management System. These trainings over a period of time have proved to be immensely successful. Each employee now not only works within the framework of EMS but also spreads the message of taking care of the environment to people beyond the business boundaries of the company. Each Environment-related aspect has been considered in detail and complied with the requirements of ISO 14001. MLBI was successful in attaining ISO 14001 certification in December 1997 (see Environment Policy). Thereafter, a series of internal and external audits, surveillance and re-certification audits have become a part of an annual calendar of activities. This system has been successful in demonstrating companys commitment to environment requirements by complying to set standards. MLBI has also taken special initiatives along with Government and Pollution control bodies in formulating policies for protection of the environment. Latest international trends that exist today have not only guided the Battery Industry but several other industries. These efforts have helped in introducing eco-friendly batteries in India. Today, harmful chemicals like mercury and cadmium are not added during the manufacturing of Dry Batteries by MLBI.

- 29 -

MLBI takes care of nature so that our children and their coming generations live a better life in harmony with nature. Environment related activities have always been given top priority by Matsushita Lakhanpal Battery India Ltd., since the commencement. As Environmental issues started evoking a serious concern the world over, Matsushita Lakhanpal Battery India Ltd., set up an Environment Control Office (ECO) in the year 1996 to monitor not only pollution control aspects, but also for promotion of other environment related activities including creation of environmental consciousness among MLBI's work force. In this regard, MLBIs environmental status was audited by EPPO (Environment Protection Promotion Office) in line with ISO

14001 EMS requirements, which later went on to become the bench mark for their ISO 14001 campaign. During the campaign, MLBIs target was to provide awareness, training and education to all its employees regarding environment, impacts of their activities on the environment and some details about Environment Management System. They laid much emphasis on training by imparting training for nearly 2 hours per person per year during the campaign stage to ensure that every employee attained the minimum necessary knowledge about environment and related activities. On successful completion of these activities, MLBI achieved the ISO 14001 certification in December '97 and was re-certified in February 2001. MLBI has always been in the forefront for environment related activities and its commitment towards the environment includes bringing the latest international trends in creating a legal framework for environment and pollution control as applicable to the battery industry. This leadership has been demonstrated in the past while participating with Government and pollution Control bodies in formulating policies towards the introduction of Environment-friendly products in the Indian markets. The achievement of ISO 14001 has given them a new surge of confidence

- 30 -

for pioneering many such activities and contributing their bit towards making the world a better place to live in.

PRODUCT PROFILE The overall battery industry can be classified into two segments primary and secondary. Primary batteries are typically non-rechargeable. Dry cell batteries fit into this category. Secondary batteries can be recharged. They are of the conventional lead acid battery or the more advanced valve regulated lead acid types. These are typically used in automobiles, telecom equipment and UPS. Matsushita Lakhanpal Battery India Ltd. manufactures only primary batteries. The specifications and other vital information about various batteries produced at MLBI are given below:

- 31 -

Products under R20 category 1) NOVINO SPECIAL

Cell Type Construction Category Nominal Voltage

R20, UM 1P, D size Paste type, Paper Clad Multipurpose 1.5V - 32 -

Storage Guarantee Relevant BIS Std Total Height Diameter -

18 Months IS 8144-1997 59.50 ~ 61.50 mm 32.20 ~ 34.20 mm No leakage during usable period Medium drain torches, radio, tape recorders, etc

Leakage Guarantee Recommended Appl-

Std Packing Ideal Storage

25 pcs/Display Box, 12 Display Cool and dry place

2) NOVINO HYPER

Cell Type Construction Category Nominal Voltage

R20, UM 1U, D size Paste type, Metal Clad Multipurpose 1.5V 24 Months - 33 -

Storage Guarantee -

Relevant BIS Std Total Height Diameter

IS 8144-1997 59.50 ~ 61.50 mm 32.20 ~ 34.20 mm Up to 0.6 c.v. Medium drain torches, radio, tape recorders, etc

Leakage Guarantee Recommended Appl -

Std Packing

25 pcs/Display Box, 12 Display Boxes/Carton. Blister Pack

Ideal Storage

Cool and dry place

3) NOVINO SUMO

Cell Type Construction Category Nominal Voltage

R20, SUM 1S, D size Paper lined, Metal Clad Heavy Duty 1.5V 24 Months - 34 -

Storage Guarantee -

Relevant BIS Std Total Height Diameter

IS 8144-1997 59.50 ~ 61.50 mm 32.20 ~ 34.20 mm Up to 0.6 c.v. Heavy drain Torches, Tape Recorders, other heavy duty appliances

Leakage Guarantee Recommended Appl -

Std Packing

2 pcs/Blister, 10 Blisters/ Display box, 10 Display boxes/Carton

Ideal Storage

Cool and dry place

Products under R14 category 1) NOVINO HYPER

Cell Type Construction Category Nominal Voltage

R14, UM 2U, C size Paste type, Metal Clad Multipurpose 1.5V - 35 -

Storage Guarantee Relevant BIS Std Total Height Diameter -

24 Months IS 8144-1997 48.50 ~ 50.00 mm 24.70 ~ 26.20 mm Up to 0.6 c.v. Medium drain Torches, Radio, Tape, recorders 20 pcs/Display Box, 15 Display boxes/cartoons Cool and dry place

Leakage Guarantee Recommended Appl Std Packing Ideal Storage -

Products under R6 category 1) NOVINO HYPER

Cell Type Construction Category Nominal Voltage

R6, UM-3U, 'AA' size Paperlined, PVC Shrinked Multipurpose 1.5V - 36 -

Storage Guarantee Relevant BIS Std Total Height Diameter -

24 Months IS 8144-1997 49.00 ~ 50.50 mm 13.50 ~ 14.50 mm No leakage during usable period. Medium drain Torches, Radio, clock, etc 10 pcs/Strip, 5 Strips/Display box. 12 Display boxes/carton

Leakage Guarantee Recommended Appl Std Packing -

Ideal Storage 2) NOVINO SUMO

Cool and dry place

Cell Type Construction Category Nominal Voltage

R6, SUM-3S, 'AA' size Paperlined, Metal Clad Multipurpose 1.5V 24 Months IS 8144-1997 - 37 -

Storage Guarantee Relevant BIS Std -

Total Height Diameter -

49.00 ~ 50.50 mm 13.50 ~ 14.50 mm Up to 0.5 c.v.. Medium drain Torches, Tape recorders 10 pcs/Strip, 5 Strips/Display box. 12 Display boxes/carton

Leakage Guarantee Recommended Appl Std Packing -

Ideal Storage

Cool and dry place

3 )NOVINO GOLD

Cell Type Construction Category Nominal Voltage

R6, UM-3D, 'AA' size Paperlined, Metal Clad Heavy duty 1.5V 36 Months - 38 -

Storage Guarantee -

Relevant BIS Std Total Height Diameter

IS 9128-1999 49.00 ~ 50.50 mm 13.50 ~ 14.50 mm Up to 0.5 c.v.. Toys, Camera, Personal Stereo etc 10 pcs/Blister, 6 Blisters/ Display box, 10 Display boxes/Carton

Leakage Guarantee Recommended Appl Std Packing -

Ideal Storage

Cool and dry place

3) NOVINO PREMIUM GOLD (ECO FRIENDLY)

Cell Type Construction Category Nominal Voltage

R6, UM-3NE, 'AA' size Paperlined, Metal Clad Heavy duty 1.5V 36 Months - 39 -

Storage Guarantee -

Relevant BIS Std Total Height Diameter

IS 9128-1999 49.00 ~ 50.50 mm 13.50 ~ 14.50 mm Up to 0.5 c.v.. Photography, walkman, toys, etc Primary: Blister packing 2 pcs/card Secondary: Display - 60 pcs/display Tertiary: Carton - 600 pcs/carton

Leakage Guarantee Recommended Appl Std Packing -

Ideal Storage

Cool and dry place

Apart from these standard dry cell batteries, Matsushita Lakhanpal Battery India Ltd. also manufactures custom made batteries for various companies including Indian Railways and Indian Defence Forces. The batteries used in the wireless sets along the international border of India are all manufactured at MLBI.

- 40 -

DATA ANALYSIS AND INTERPRETATIONS

For Dealers: The data collected from the primary sources (through collection of the responses to the questionnaire) was assembled, sorted, selected and analyzed. The analysis of the data is as follows:

Q.1.

Do you get Delivery of Novino Batteries in time?

- 41 -

Delivery of Novino batteries

9.24% 1.87% 4.95%

83.94%

Always

Sometimes

Rarely

No reply

Out of the total dealers covered, it was found that about 84% of them receive the stock on time. It shows that the distribution channel of the company is effective even in the rural areas. Around 16% those who dont get in time are those dealers who dont buy very frequently or those who buy in very small quantities.

Q.2.

Are all types of batteries available to you when required?

- 42 -

Availiblity of all type of batteries

5.9% 16.39% 4.73%

73.38%

Always

Sometimes

Rarely

No reply

Around 73% of the dealers say that all types of batteries are available whenever required where 27% say that they are either available sometimes or never. This is because the sales representatives does not visit new outlets and those outlets which are located in too remote areas. Q.3. qualities? What is your satisfaction level about S.R.s visit and opinion about his

- 43 -

Satisfaction level about S.R. visit

4.62% 22.22 4.73%

67.77%

Highly satisfied Least satisfied

Partially satisified No reply

Dealers opinion about S.R.

Percentage 80 60 40 20 0 Good Behaviour Average Bad No reply Opinion Involvement Knowledge

Around 68% of the dealers are happy about the S.R.s visit and around 70% have good opinion about the qualities of the S.R. like his behavior, involvement and knowledge about the products. The other 32% are not happy about the S.R.s visit because of varied reasons like they dont like his behavior or involvement or knowledge about products or due to his irregular visits. Q.4. Are you satisfied with the margin of Novino Batteries? - 44 -

Opinion for margin in Novino

5.94% 1.98% 48.41% 43.67%

Good

Average

Bad

No reply

Only 48% of the dealers are satisfied with the margin of Novino Batteries and the satisfied dealers are mostly from the rural areas. The unsatisfied ones are mostly from the urban areas. They are not satisfied because of many reasons like a) many other brands are available in urban areas providing more margin than Novino brand batteries, b) other brands coming out with new schemes for the dealers like cash discounts. Q.5. What is your opinion about companys credit policy?

Credit policy
5.72 4.18 32.01 57.21

Good

Average

Bad

No reply

The company does not give credit to the distributors but the stockist give credit up to the period of 15 days to the wholesalers and retailers. But most of the dealers want a credit period of atleast one month. So that is the obvious reason for the dissatisfaction of most of the dealers. - 45 -

Q.6. about it.

Are you aware of companies replacement policy? If yes, give your opinion

Awareness about Replacement policy

80 60 40 20 0 Yes No No reply

Opinion about Replacement policy

7.52

6.58 21.05

64.85 Good Average Bad No reply

Around 60% of the dealers are aware of the replacement policy of the company though they never faced any replacement problems either with the customers or the stockists and others are not aware because they say they never faced any problem with the Novino brand batteries, so they have not bothered to know about the replacement policy. Those who are aware of the policy around 65% of them feel the policy is good because according to the replacement policy the defective stock if any will be replaced immediately. Q.7. Give your opinion about the following: - 46 -

Dealers opinion
100 80 60 40 20 0
ia l ag in g pr om ot io n Ad ve rti se m en t Pr od uc t PO Pa ck P O ffta ke m at er qu al ity

Percentage

Sa le s

Good

Average

Bad

No reply

Most of the dealers are satisfied with the quality, packaging and off-take of Novino brand batteries but not very satisfied with the sales promotion activities, availability of POP material and advertisements of the Novino brand batteries. Q.8. What is your satisfaction level about companys involvement?

Company's involvement
7.26 8.25

29.26

55.23

Highly satisfied Least satisfied

Partially satisfied No reply - 47 -

Only 55% of the dealers are satisfied with the companys involvement directly or indirectly. The other 45% of the dealers who are not satisfied are mostly from the urban areas. They say the company representative does not visit them unless there is some problem.

For Customers:
Q.1. Are Novino Batteries available at your nearest store?
Availibility of Novino batteries at nearest shop
85.2%

Always Sometimes Rarely No reply

0.8% 1.5% 12.5%

It is obvious from the pie chart that around 85% of the customers interviewed say that Novino brand batteries are always available at their nearest store. So it can be inferred that MLBI has succeeded in reaching almost all of its customers and within - 48 -

no time it will succeed in reaching 100% of its customers through its effective distribution channel. Q.2. What is your opinion about following features of Novino batteries?

Customer's opinion
90 80 70 60 50 40 30 20 10 0 74.5 69

77.5 62
47

19.5 33.5

24 27.8

45

2 1.5

6.7

0.7 2.1

0.8 1.1

Good

Average

Bad

No reply

Life span

Power

Leakproofness

Packaging

Outlook

Most of the customers are satisfied with the lifespan, power and leakproofness of the Novino brand batteries. But they are not very much satisfied with the packaging and outlook of the batteries. Q.3. Rank the following with respect to their product quality.

Ranking w.r.t. product quality

70 60 50 40 30 20 10 0
Nippo Novino BPL Geep Eveready

I II III IV V No reply

1.3

1 3

- 49 -

From the responses we got the from the customers interviewed, we inferred that in the Baroda region Novino brand of batteries enjoy the top position followed by Eveready, BPL, Nippo and Geep in the same order. Q.4. How important is manufacturing date to you? Importance of manufacturing date
3.8% 4% 29.1% 63.1%

Important

OK

Not important

No reply

Around 60% of the customers say that the manufacturing date is important to them and other 40% say not that important. The customers who say that mnf. date is important are mostly the educated lot. The later 40% are either housewives and uneducated lot or the ones who change batteries very frequently. Q.5. Have you ever seen Novino Batteries advertisement? If yes, give your opinion about it.

Awareness about advertisement

1.1% 44.1% 54.8%

Yes

No

No reply

- 50 -

Response about advertisement

5.54% 42.41%

4.61%

47.44% Good Average Bad No reply

Only 55% of the customers have seen the Novino batteries advertisement and 45% of them have not seen. That is because MLBI does not come up with their advertisements frequently. MLBI manufactures batteries mostly for special clients or for the rural areas. So the need does not arise to go for advertisements except some banners and hoardings. Q.6. Do you have any problem with Novino batteries?

Problem with Novino battery

1% 15.4%

83.6% Yes

No

No reply

Majority of the customers never faced any problem with the Novino brand batteries and that is because MLBI makes sure that the whole stock is inspected 100% before dispatch. The 16% those who face problem are those who does not follow the instructions mentioned on the package. - 51 -

Q.7.

If any problem is faced, what type of problem is it?

Type of problem faced

11.13%

34.41%

32.46% 9% Leakage Dead cell Rusted 22% Short life No

Causes of problems: 1) Leakage: if the batteries are left unused in the appliances for longer period any battery is tend to leak due to continuous flow of electric current. 2) Dead Cell: if the batteries are placed in opposite directions even for a second there will definitely be a short circuit resulting into dead cells. 3) Short Life: each kind of battery is meant for some specific purpose. If a low power battery is used in a heavy duty appliance, it will not perform for more time. 4) Rusted: if the batteries are stored in a moist place either by the retailer or by the customer, the batteries are bound to get rusted. These are the reasons why customers face problem with the batteries. Q.8. Did you inform the retailer?

- 52 -

Whether informed the retailer

42.85% 56.49%

Yes

No

Around 43% of the customers who faced problem with Novino batteries never bothered to inform the retailer about the problem. The customers belonging to this lot are mostly students who are generally careless/irresponsible. Remaining 57% of the problem-faced customers inform to the retailer.

Q.9.

Did you get it replaced? If yes, what is the duration of replacement?

Whether got replacement

48.5% 51.5%

Yes

No

- 53 -

Duration of replacement
0% 47% 53%

Immediately

Within a week

Within a month

More than a month

About 51% of the problem faced customers get the batteries replaced. Others who do not get replaced are those who faced the problem due to their own negligence. The customers who get replacement get it either immediately or within a week, when the S.R. visits. Q.10. Do you recommend others to buy Novino batteries?

Whether recommend Novino batteries to others

2.4% 43.2% 54.4% Yes No No reply

More than half of the respondents recommended others to buy Novino batteries.

Distribution of respondents according to age and occupation

- 54 -

Distribution of respondent according to age 9.4% 26.4% 56.5% < 20 21-35 36-50 51-above 7.4%

Distribution according to occuption

23.8% 21.7%

20% 34.5%

Student

Self employed

Service

Business

CONCLUSIONS
The data analysis and its interpretation lead to the following conclusions: From the survey of Customer - 55 -

Out of the total respondents surveyed, majority are from the service class and majority of the respondents say that Novino Batteries are always available at their nearest store, which gives an indication that the distribution channel is very strong. Majority of the respondents are satisfied with the life span, power and leak proofness of the Novino batteries but they feel that packaging and outlook of the product are not up to its brand image. As we are talking about the preference, the first preference goes to Novino followed by Eveready, BPL, Nippo and lastly Geep, which reveal that when customer goes for purchasing a battery, their first preference is Novino, but in case of non-availability of Novino batteries they go for other brands. More then th of the respondents feel that manufacturing date is important for them. As purchasing decisions are generally made by students and housewives (which are included in self-employed class), manufacturing date is more important to them compared to service and business class. More than half of the respondents havent seen the advertisement and of the remaining who has seen the advertisement many are not satisfied with it. Majority of the respondents dont have any problem with Novino batteries. Very few respondents who have problem with Novino batteries are those who do not follow the instructions printed on the package. Out of those few respondents, who faced problems with Novino batteries, major problem is short-life and leakages. Almost 50% of those who faced problem with Novino batteries inform the retailer about the problem and the least interested category opted for replacement is of students.

Out of which who inform the retailer almost 55% of them got replaced their batteries. Out of these 55%, most of them get immediate replacement and the rest get it within a week.

- 56 -

More than half of the respondents said that they would recommend others to buy Novino batteries.

From the survey of Dealer Majority of the dealers get the delivery of Novino Batteries in time. All types of batteries are available to P&G and electrical Shops whenever they require as most of the sales are from these shops whereas medical shops and photo studios are not visited for batteries in particular by the customers. As P&G and electrical shops purchase in bulk quantities and also frequently, the salesman maintains a good relationship with these shops. So there is a good response from these shops towards SRs visit compared to photo studios and medical shops. Also SR visits only selected shops and drops out few shops, which are also located in the same vicinity. As well as SR doesnt take the pain to visit new openings/outlets. Therefore we can conclude that the distribution channel is successful in retaining old outlets but at the same time they should target new outlets too. Most of the dealers feel that the profit margin is not satisfactory. Majority of the dealers are satisfied with the companies credit policy. Majority of the dealers are aware of the replacement policy and are also satisfied with it. Those who are not aware of the replacement policy, is because they never faced any replacement problem. But at the same time 7 to 9 % are not satisfied with the replacement policy. Majority of the dealers are not happy with the sale promotion activities, POP material and advertisements but at the same time they feel that the quality, packaging and off-take of Novino brand batteries are satisfactory. P&G and electrical shops are satisfied with the companys involvement whereas medical, photo studios & other shops are less satisfied with the companys involvement. - 57 -

RECOMMENDATIONS
PRODUCT: 1. Outlook of batteries need to be more attractive. - 58 -

2. 3.

There is a need to enter new product line such as Rechargeable Batteries. Regular R & D should be there for continuous improvement in quality and services.

PRICE: 1. PLACE: 1. Distribution channel should be made stronger by capturing new outlets in and around the city. 2. There should be a regular visit to each and every outlet from companys representative every month. PROMOTION: 1. As far as advertising is concerned, it should be educating the customers so that they can understand the usability of the product accordingly. 2. Usually customers are not brand loyal in case of secondary products like batteries. So there should be some reminder advertisements from time to time and POP material should be available at all the outlets. OTHERS: 1. 2. Replacement policy should be improved Credit period shouldnt be volatile Price should be competitive as more and more competitors are entering into the market and are offering their products at a lower price.

LIMITATIONS
I had to work under several constraints and limitations. Some of the key limitations are: - 59 -

 The survey and research has been done only in Baroda city and Halol, therefore the results show the market position of Baroda an Halol only but results cannot be considered as representative of whole of Gujarat. The sample size of the Baroda city and Halol region taken was small, therefore it can be said that the chosen sample is not the representative of the whole population and this hindered quantitative research. Out of the whole research and analysis, only few major dry cell battery brands could be highlighted, leaving aside the medium and small-scale dry cell battery manufacturers. The questionnaire mostly contained multiple-choice questions. Therefore many respondents did not give a proper thought before up the questions, and some even ticked things, which were not applicable. Therefore all this increased the bias.

BIBLIOGRAPHY
BOOKS: - 60 -

KOTLER PHILIP, MARKETING MANAGEMENT, PEARSON PUBLICATION, EDITION 11TH.

BERI G. C., MARKETING RESEARCH, EDITION 2002. MALHOTRA NARESH, MARKETING RESEARCH , PEARSON PUBLICATION, EDITION 2003.

JOURNALS AND BROCHURES OF MLBI.

WEBSITES: www.novino-batteries.com www.indiainfoline.com

Search engines: http://www.google.com http://www.search.com

ANNEXURES
The following important annexure relevant to this study are enclosed here with: 1) Questionnaires - 61 -

2) Cross tabulation of the study

- 62 -