A
PROJECT REPORT
ON
ANALYTICAL STUDY OF BAJAJ GAS STOVES TO
IDENTIFY ITS EXACT POSITION IN THE EXISTING
MARKET
AT
BAJAJ EL...
CERTIFICATE
This is to certify that this project titled Analytical study of Bajaj Gas Stoves to
identify its exact positio...
ACKNOWLEDGEMENT
I have a great pleasure to present the project report on Analytical study of
Bajaj Gas Stoves to identify ...
TABLE OF CONTENTS
TOPIC
PAGE
NO.
EXECUTIVE SUMMARY
COMPANY PROFILE
PRODUCT PROFILE
NEED AND OBJECTIVE OF THE PROJECT
RESEA...
EXECUTIVE SUMMARY
Bajaj Electrical Limited (BEL) market gas stoves as a part of their product
portfolio. The company felt ...
Other reason is that brand name of BAJAJ ELECTRICALS LIMITED is
unmatchable in field of home appliances They are the most ...
COMPANY PROFILE
Bajaj Electricals Limited (BEL) is a part of the US $ 3 billion "Bajaj
Group" who is in the business of st...
& Dry Irons and Water Filters. All of these have found a favorable place
in Indian kitchens and homes for a decade.
Choose...
Shekhar Bajaj, Chairman & Managing Director of Bajaj Electricals Ltd.,
started his career with Bajaj Sevashram after which...
PRODUCT PROFILE
AX 4
MRP: Rs. 4375
o Gas Stove with 4 brass burners with stainless steel body
o Special high efficiency br...
AX 2
MRP: Rs. 1925
o 2 brass burners with stainless steel body
o Special high efficiency burners with 5 years guarantee
o ...
IX 2
MRP: Rs. 2825
o Auto ignition 2 brass burners with Stainless Steel body
o Special high efficiency burners with 5 year...
Popular
2 brass burners with Stainless Steel body
o Special high efficiency burners with 5 year guarantee
o Extra wide top...
NEED OF THE PROJECT
1. Bajaj Electricals Ltd. is a premier name in manufacturing home appliances
products such as OTG, mix...
Source: Services Marketing by Valarie A Zeithamal, Mary Jo
Bitner, Tata McGraw Hill Publications
OBJECTIVES OF THE PROJECT
Retaining Existing Customers/Dealers.
Find out the perception of existing customers and dealers ...
RESEARCH METHODOLOGY
Approach Summary
Step 1 Initiation of the project
Step 2 Study Design
Step 3 Survey
Step 4 Data Analy...
STEP 5
O Suggesting guidelines for improvement.
O Presentation of findings.
The entire project was carried out for more th...
After studying the BEL product portfolio and offerings to the dealers, I started
desk work in this process I prepared ques...
GEOGRAPHICAL COVERAGE
The areas covered for study were divided in nine parts:-
A. Pune Satara Road, Dhankawdi
B. Karve Roa...
SAMPLING TYPE
Area Wise Sampling
The sampling was done area wise divided in nine parts over Pune.During first
phase of the...
DATA ANALYSIS
RANKING OF GAS STOVES AS NO.1 IN TERM OF SALES (DEALERS
PERCEPTION)
Brands No. of respondents.
Surya (Delhi ...
DEALERS PERCEPTION ABOUT MARGIN AND PRICING OF BAJAJ
GAS STOVES
Delighted 10
Fully satisfied 25
Its o.k. 50
Not satisfied ...
DEALERS OPINION ABOUT COMPETITOR IS BETTER THAN
BAJAJ BY
Pricing 45
Quality 20
Aesthetics 15
Service 20
Others 30
DEALERS ...
BAJAJ S DIFFERENT MODELS SALE BY DEALERS
Popular (2 burner), AX2 80%
AX3 (3 burner) 10%
AX4 (4 Burner) 10%
PERCENTWISE BAJ...
SERVICE/QUALITY/FEATURES/MARGIN PROVIDED BY
COMPETITORS PRODUCT (DEALERSN PERCEPTION)
Excellent 60
Very good 25
Good 15
Sa...
THE TOUGHEST COMPETITOR TO BAJAJ (DEALERS OPINION)
Sunflame 35
Surya (Delhi Bang.) 50
Chinese 20
Other branded stoves (Nir...
DEALERS OPINION TO INCREASE BAJAJ SALES
Advertisement 60
More margin to dealers 15
Schemes/offers/gifts 35
Credit facility...
DEALERS PERCEPTION ABOUT BAJAJ S POOR SALES
Unawareness among customer and dealers 50
Price, Too high 35
Competitor s bran...
DEALERS SUGGESTION TO IMPROVE THE SALES OF BAJAJ S
GAS STOVES
Advertisement (Print&Electronic) 40
Attractive Schemes (cust...
ANALYSIS OF DEALERS MARGIN IN VARIOUS GAS STOVES
ANALYSIS OF DEALERS MARGIN IN VARIOUS GAS STOVES
350
250
550
500
400
450
...
CORRELATION ANALYSIS
Complaints given by dealers
Complaints Respondents Rank
High cost 10 7
Bad service 17 4
Poor margin 1...
Suggestions given by dealers
Control the cost 10 7
Improve service 25 2
Increase margin 15 5
Increase awareness 29 1
Impro...
rs = 1 - 6 d2
/n (n2
- 1)
= 1 - (6 X 8) / 7 (49 - 1)
= 1 - 48 / 336
= 0.8571
Since, 0 < rs < 1
Therefore, there is positiv...
MAJOR FINDINGS
Market is full with gas stoves. Almost 40-50 different unbranded names have
been observed in the market. Pr...
One of the major threat for Bajaj gas lies in exhibitions where gas stove
companies like Surya, Jyoti Sunflame gives off t...
SUGGESTIONS
In order to excel and fight in the rigorous competition in the market it is suggested
that company should cons...
ACHIEVEMENTS:
For any summer trainee the achievement of the project means that the
suggestions and recommendations are imp...
LMITATIONS OF THE SURVEY
Most of the dealers in gas stoves market were uneducated and hence it created
hurdles at certain ...
BIBLIOGRAPHY
BOOKS
AUTHOR NAME OF THE BOOK
Philip Kotler Marketing Management
C.R.Kothari Research Methodology
Rajan Saxen...
PARTIAL LIST OF DEALERS VISITED
AREA COVERED SHOP
Pune Satara Road Laxmi Steel&Variety
Dhankawadi Chandan steel &Furniture...
Fatima Nagar Citizen Kitchen Ware
Fatima Nagar Classic Sales And Services
Kondawa Khurd Jyoti gas Services
Kondawa Khurd R...
ANNEXURE
QUESTIONNAIRE
NAME OF THE DEALER
ADRESS AND CONTACT NO.
1) DO YOU SALE GAS STOVES.:- YES NO
2) WHICH GAS STOVE DO...
LESS THAN 5 MORE THAN 5 LESS THAN 10
MORE THAN 10 LESS THAN 15 MORE THAN 15
8) HOW MANY PIECES OF BRANDED STOVE IN UNBRAND...
EXECUTIVE SUMMARY
COMPANY PROFILE
PRODUCT PROFILE
NEED AND OBJECTIVE OF PROJECT
RESEARCH METHODOLOGY
LIMITATIONS
FINDINGS
SUGGESTIONS
BIBLIOGRAPHY
ANNEXURE
This document was created with Win2PDF available at http://www.daneprairie.com.
The unregistered version of Win2PDF is for...
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Analytical study of bajaj gas stoves to identify its exact position in the existing market

  1. 1. A PROJECT REPORT ON ANALYTICAL STUDY OF BAJAJ GAS STOVES TO IDENTIFY ITS EXACT POSITION IN THE EXISTING MARKET AT BAJAJ ELECTRICALS LTD. SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION, UNIVERSITY OF PUNE, PUNE, MAHARASTRA. By SHEETAL BAZAZ MBA (2005-2007) VISHWAKARMA INSTITUTE OF MANAGEMENT PUNE 411048
  2. 2. CERTIFICATE This is to certify that this project titled Analytical study of Bajaj Gas Stoves to identify its exact position in the existing marketBajaj Electricals Ltd., Pune, is a bonafide work carried out by Sheetal Bazaz of MBA marketing of Vishwakarma Institute of Management in the partial fulfillment for the degree of Master of Business Administration, University of Pune. He has worked under our guidance and direction. His work is found to be good and complete in all respect. Dr. Sharad L. Joshi Prof.Rajesh Vhatkar (Director) (Project Guide) Date: Date: Place: VIM, Pune Place: VIM, Pune
  3. 3. ACKNOWLEDGEMENT I have a great pleasure to present the project report on Analytical study of Bajaj Gas Stoves to identify its exact position in the existing market for Bajaj Electricals Ltd , Pune region in partial fulfillment of MBA programme of the university of Pune at VISHWAKARMA INSTITUTE OF MANAGEMENT, PUNE. I would like to thank my project guide at Bajaj Electricals Mr. Manish Mishra, Senior Sales officer; B.U APPLIANCES. His guidance was extremely useful throughout my project work. I would also like to thank the dealers of various gas stoves who shared Information and expertise with me. I am greatly indebted to all the personnel in the sales and marketing department in Bajaj electricals for their co-operation and timely help for the completion of my project. My project guide at VISHWAKARMA INSTITUTE OF MANAGEMENT PUNE. Prof Rajesh Vhatkar was very helpful during this project. This project may never have been possible without the tutelage of our Director Dr. Sharad Joshi. His motivational support kept me spirited throughout this project. Sheetal Bazaz
  4. 4. TABLE OF CONTENTS TOPIC PAGE NO. EXECUTIVE SUMMARY COMPANY PROFILE PRODUCT PROFILE NEED AND OBJECTIVE OF THE PROJECT RESEARCH METHODOLOGY DATA ANALYSIS FINDING SUGGESTIONS BIBLIOGRAPHY ANNEXURES
  5. 5. EXECUTIVE SUMMARY Bajaj Electrical Limited (BEL) market gas stoves as a part of their product portfolio. The company felt the need to reposition the product in view of competitive Pressure. Emergence of several gas stoves from various local companies created a potential threat to the marketing segmentation of Bajaj s gas stoves. Hence Bajaj Electrical aspires to find out the pricing and marketing strategies adopted by its prevalent competitors in the existing market. The rationales behind the project are To find the pricing structure of competitors. To carry out the competitive analysis for BEL. To analyze the dealers perception of Bajaj and its competitors product To suggest necessary changes to be made in Bajaj gas stoves marketing. PROJECT TITLE The name of the project is Analytical study of Bajaj gas stoves to identify its exact position in the existing WHY HAVE I CHOSEN HIS PROJECT AND THIS ORGANIZATION : As a MBA student we have to under go a project of at least 45s days at the end of 1st year. Area of my interest is marketing (sales) and I took this opportunity to grab the practical knowledge in the same field Other reason why I chose this project is because apart from gas stove segment all the other segments of Bajaj is doing fairly well in the market, this gave me the opportunity to find the reason behind it and advice BEL regarding it I have chosen this organization because BAJAJ ELECTRICALS LIMITED has given me the type of project which could give me practical knowledge in field of marketing (sales)
  6. 6. Other reason is that brand name of BAJAJ ELECTRICALS LIMITED is unmatchable in field of home appliances They are the most prestigious name and market leader in most of its products in the product portfolio, and enjoy good market share in marketing their products. DURATION OF THE PROJECT 1ST JUNE 06 TO 26TH JULY06
  7. 7. COMPANY PROFILE Bajaj Electricals Limited (BEL) is a part of the US $ 3 billion "Bajaj Group" who is in the business of steel, sugar, two wheelers & three wheelers besides an impressive range of consumer electrical products. We are a 68 year old company with a turnover of over Rs.650 crores aiming to be a Rs. 1001 crores company in the next couple of years. Bajaj Electricals has 19 branch offices, a chain of 600 distributors, 3000 authorized dealers, over 1, 20,000 retail outlets and over 200 service franchises spread across the country. BEL today has five major strategic business units comprising of home appliances, fans, lighting, luminaries and engineering & projects. We are also in the business of manufacturing, erection and commissioning of Transmission Line Towers, Telecom Towers, Mobile Telecom Towers and Wind Energy Towers. Export of all BEL's products except of its engineering and projects business unit is taken care of by group company Bajaj International Pvt. Ltd. Bajaj Appliances Fire...radiating its heat from our Room Heaters, Irons, Ovens, Toasters and Microwave Ovens. Water...flows through our products such as water Heaters and Water Filters. Earth...signifying our food related products such as Mixers, Food Processors and Juicers. When it comes to small appliances, no other company in India offers as wide and modern a range as Bajaj Electricals does. We offer all varieties of Microwave Ovens, Desert Coolers, Personal Coolers, Water Heaters, Room heaters, Oven-Toaster-Grillers, sandwich Toasters, Toasters, Juicers & Mixer Grinders, Food Processors, Steam
  8. 8. & Dry Irons and Water Filters. All of these have found a favorable place in Indian kitchens and homes for a decade. Choose one from our vast range...The ' Bajaj ' group of India owes immense gratitude to their founding fathers whose vision and dedication over the years has greatly helped to build a business house that can set standards in Indian Industry. Jamnalal Bajaj was the founding father of the Bajaj Group. The adopted fifth son of Mahatma Gandhi and the 'merchant prince' who held the wealth he created in trust forth people of his country. Trust - a simple word that contains a whole philosophy handed down by Jamnalal Bajaj to his successors. He valued honesty over profit, actions over words and common good over individual gain. Kamalnayan Bajaj, elder son of Jamnalal Bajaj, followed footsteps of his illustrious father and consolidated the bajaj foundation. With characteristic foresight and pragmatic vision, he launched a steady diversification programme, which gave the current name "Bajaj"both its shape and size. His unique management style created a work culture that matched well with the national spirit he had inherited. Ramakrishna Bajaj took over the reins of the "Bajaj group" in 1972 after Kamalnayan Bajaj and steered the Group from strength to strength for over 22 years. He had also actively participated in the freedom struggle of the country. In post independent India, he had led the youth movement. All along, he actively strengthened the foundations of business through ethics and practices both within the group and amongst the business community as well.
  9. 9. Shekhar Bajaj, Chairman & Managing Director of Bajaj Electricals Ltd., started his career with Bajaj Sevashram after which he worked at Bajaj International, the group's export company. Mr. Shekhar Bajaj joined Bajaj Electricals in 1980, became the Managing Director in 1987 and took over as the Chairman and Managing Director in 1994. Mr. Bajaj is the Chairman of Bajaj Group companies Bajaj International and Hercules Hoist Pvt. Ltd. and on the Board of Directors of Bajaj Auto and IDBI Bank. He was the President of ASSOCHAM, former President of Indian Merchant Chambers (IMC) and Council for Fair Business Practices (CFBP)
  10. 10. PRODUCT PROFILE AX 4 MRP: Rs. 4375 o Gas Stove with 4 brass burners with stainless steel body o Special high efficiency brass burners in the gas stoves o Aesthetically designed gas stove AX 1 MRP: Rs. 1675 o 2 brass burners with stainless steel body o Special high efficiency burners with 5 years guarantee o Extra wide top for accommodating large vessels o Available for LPG and PNG
  11. 11. AX 2 MRP: Rs. 1925 o 2 brass burners with stainless steel body o Special high efficiency burners with 5 years guarantee o Extra wide top for accommodating large vessels on gas stoves o Spill tray and tall legs to facilitate easy cleaning of gas stoves o Model with Auto ignition also available o Available for LPG and PNG AX 3 MRP: Rs. 1995 o 3 brass burners with stainless steel body o Special high efficiency burners with 5 years guarantee o Extra wide top for accommodating large vessels o Spill tray and tall legs to facilitate easy cleaning o Model with Auto ignition also available o Available for LPG and PNG
  12. 12. IX 2 MRP: Rs. 2825 o Auto ignition 2 brass burners with Stainless Steel body o Special high efficiency burners with 5 years guarantee o Extra wide to accommodating large vessels o Spill tray and large legs to facilitate easy cleaning o Available for LPG and PNG IX 3 MRP: RS 3570 o Auto ignition 3 brass burners with stainless steel body o Special high efficiency burners with 5 years guarantee o Extra wide top for accommodating large vessels o Spill tray and tall legs to facilitate easy cleaning o Available for LPG and PNG
  13. 13. Popular 2 brass burners with Stainless Steel body o Special high efficiency burners with 5 year guarantee o Extra wide top accommodating large o vessels on gas stoves o Available for LPG and PNG
  14. 14. NEED OF THE PROJECT 1. Bajaj Electricals Ltd. is a premier name in manufacturing home appliances products such as OTG, mixers, iron, geysers, water heaters, and microwave ovens. They are the most prestigious name and market leader in most of its products in the product portfolio, and enjoy good market share in marketing those products. 2. Later in the year 2000-01,Bajaj launched gas stoves as a new product in their product portfolio, At the time of launching there were several market leaders in gas stoves segments like Sunflame as no.1 and Surya(Bombay)in branded and many local manufacturers were fighting to nab the no.1 position in unbranded segment of gas stoves. 3. Gradually the market was also flushed with several names in unbranded segments primarily Surya, from Bangalore and Delhi, which covered significant market share. Eventually, cheaper in rates as in comparison to branded gas stoves and having almost similar looks and aesthetics as of branded stoves; it emerged as the biggest threat for all participants of gas stoves in the market. 4. BEL realizes that its gas stoves segment was not doing all that well as in comparison to other products in its product portfolio, henceforth it needs to utilize its brand equity, and company required an exhaustive analysis of its product as well as its competitors s strategy to prevail in the market of gas stoves. 5. BEL is interested in increasing the customer loyalty towards the gas stoves as it is for other products of bajaj by increasing the satisfaction level of its Existing customers/dealers
  15. 15. Source: Services Marketing by Valarie A Zeithamal, Mary Jo Bitner, Tata McGraw Hill Publications
  16. 16. OBJECTIVES OF THE PROJECT Retaining Existing Customers/Dealers. Find out the perception of existing customers and dealers towards Bajaj and give out different suggestions so as to change the mindset of the dealer/customer in the positive sense and retain them. Attracting new customers BEL is planning various schemes for its dealers as well as customers to attract newer ones, by attaching the gas stoves as gift item with its successful products in the existing market. Tapping corporate clients Some corporate firms like petroleum companies have collaborations with gas stove manufacturers, e.g. Surya (Bangalore) with HPCL and Prestige with BPCL. To study the competitors market share and find out the close competitor in specified areas. As BEL is facing stiffer competition in branded and unbranded segments of gas stove.
  17. 17. RESEARCH METHODOLOGY Approach Summary Step 1 Initiation of the project Step 2 Study Design Step 3 Survey Step 4 Data Analysis Step 5 Recommendations STEP 1 O Understanding the organization. O Understanding the scope of the project. O Formulation of plans to address the study objectives. O Studying product related details offered by Bajaj & other competitors on Secondary data from BEL STEP 2 O Designing of the sample from existing data base o Collective preparation for interview & questionnaire. o Preparing the data analysis plan including data base structure. STEP 3 O Collection of data by conducting the interviews (primary data) O Collection of secondary data from BEL STEP 4 O Area wise analysis & competitors mapping. O Analysis based on product/aesthetics type. O Analysis based on pricing.
  18. 18. STEP 5 O Suggesting guidelines for improvement. O Presentation of findings. The entire project was carried out for more than 2 months 62 days INFORMATION NEEDED o To understand the product & service offering by BEL. o To assess the customer/dealer perception about the quality of Bajaj s product and competitors. o To receive the suggestions from the customers/dealers for value addition. o To make use of the valuable information given by dealers for offering them various attractive schemes. o To trace the overall customers/dealers as well as competitor profile. o Reasons for low sale of Bajaj gas stove METHODOLOGY Initiation of the project Study Design Survey Data analysis Recommendations. The sample size : 130 outlets Sampling method used: Area wise sampling In the first phase of my project, I interviewed dealers of Bajaj only. In the second phase I interviewed the dealers of Bajaj as well as its competitors and I visited all the outlets which deals in gas stoves, spread in various parts of Pune. The tool used for tests was correlation testing between complaints and the corresponding suggestions given by dealers. Initially, I studied the various products marketed by BEL. I observed that other products than gas stoves were doing considerably well in the market
  19. 19. After studying the BEL product portfolio and offerings to the dealers, I started desk work in this process I prepared questionnaire. I studied the whole questionnaire and decided upon the weight age to be given to each question while interviewing dealers under different conditions. STATISTICAL TOOLS USED FOR DATA ANALYSIS: For analyzing the data I used Correlation analysis: This was used to correlate the complaints given by the dealers with the corresponding recommendations and suggestions. Correlation testing between the dealers complaints and suggestions help to decide whether I can infer any solution from dealer s suggestions to tackle their complaints. Area wise analysis of the share of Bajaj and its competitors give area wise share of each competitor and Bajaj s major competitor in respective areas. PROJECT SCHEDULE ( T O T A L N ( (NUMBER OF DAYS:-62 DAYS) TASK 10 DAYS 1/6-10/6 2006 36 DAYS 11/6-17/7 2006 7 DAYS 18/7-25/7 2006 7 DAYS 26/7-2/8 2006 INITIATION OF PROJECT STUDY DESIGN FIELD WORK DATA ANALYSIS RECOMMENDATIONS
  20. 20. GEOGRAPHICAL COVERAGE The areas covered for study were divided in nine parts:- A. Pune Satara Road, Dhankawdi B. Karve Road, Warje, Kothrud, Aundh, Aundhgaon C. Tilak Road D. Model Colony E. Shivajinagar, Kirkee, Yerwada F. Fatima Nagar, Kondhwa, Bibwewadi G. Hadapsar H. Peth Areas, Appa Balwant Chowk, Laxmi Road I. Pimpri, Chinchwad SALES SEGREGATION AREA WISE FOR 1 MONTH Area Bajaj Sunflame Surya(D+B) Others Total Sales A 04 09 12 05 30 B 12 65 125 125 327 C 12 32 60 55 159 D 04 05 07 10 26 E 150 575 1200 950 2875 F 08 17 30 22 77 G 60 132 200 450 842 H 65 125 250 400 840 I 22 300 350 250 922 TOTAL 337 1260 2234 2267 6098 Other gas stoves sold in the market are: Chinese, Marlex, Sunblaze, Prestige, Nirlep, Butterfly, Pigeon, Surry original(Bombay),Lame Baja rainbow, Usher ,Jyoti,Peacock,Anjali, Sun time, Crown, Servo flame, Vinflame, Kranti, Glene Fabre etc.
  21. 21. SAMPLING TYPE Area Wise Sampling The sampling was done area wise divided in nine parts over Pune.During first phase of the project I visited and interviewed the dealers who deal in specifically Bajaj or any other particular brand only. Later on during the second phase of the project I interviewed those dealers who were dealing in all brands of gas stoves Tools used for data presentation ---- Pie charts ----Bar charts
  22. 22. DATA ANALYSIS RANKING OF GAS STOVES AS NO.1 IN TERM OF SALES (DEALERS PERCEPTION) Brands No. of respondents. Surya (Delhi +Bangalore) 60 Surya (Bombay) 12 Sunflame 20 Bajaj 18 Others 24 RANKING OF GAS STOVE (DEALERS PERCEPTION) 60 12 20 18 24 0 20 40 60 80 SURYA(DELHI+BANGALORE) SURYA(M UM BAI) SUNFLAM E BAJAJ OTHERS GRAPH 1 THE ABOVE GRAPH SHOWS RANKING OF GAS STOVES ACCORDING TO THE DEALERS. (BAJAJ LIES ON NUMBER 4TH )
  23. 23. DEALERS PERCEPTION ABOUT MARGIN AND PRICING OF BAJAJ GAS STOVES Delighted 10 Fully satisfied 25 Its o.k. 50 Not satisfied 25 Strongly dissatisfied 20 DEALERS PERCEPTION ABOUT MARGIN AND PRICING 0 10 20 30 40 50 60 DELIGHTED FULLY SATISFIED ITS O.K. NOT SATISFIED STRONGLY DISSATISFIED GRAPH 2 PERCENTWISE DEALER PERCEPTION 8% 19% 39% 19% 15% Delighted Fully satisfied Its o.k. Not satisfied Strongly dissatisfied GRAPH 3 THIS GRAPH SHOWS PERCENT WISE PERCEPTION OF DEALERS ABOUT MARGIN AND PRICING (39% of the dealers says pricing of Bajaj gas stove is o.k.)
  24. 24. DEALERS OPINION ABOUT COMPETITOR IS BETTER THAN BAJAJ BY Pricing 45 Quality 20 Aesthetics 15 Service 20 Others 30 DEALERS OPINION ABOUT COMPETITOR IS BETTER THAN BAJAJ Pricing Quality Aesthetics Services Others 0 10 20 30 40 50 1Pricing Quality Aesthetics Services Others GRAPH 4 THIS GRAPH SAYS THE REASON WHY COMPETITORS ARE BETTER THAN BAJAJ (According to dealers pricing of Bajaj is on the higher side as compared to the competitor having same quality and features) Others include credit terms, availability of the product in the market and company s caring about dealers.
  25. 25. BAJAJ S DIFFERENT MODELS SALE BY DEALERS Popular (2 burner), AX2 80% AX3 (3 burner) 10% AX4 (4 Burner) 10% PERCENTWISE BAJAJ'S DIFFERENT MODELS SOLD B DEALESRS 84% 10% 6% POPULAR(2 BURNER) ,AX2 AX3(3BURNER) AX4(4BURNER) GRAPH 5 GRAPH SHOWS DIFFERENT MODELS SALE BY DEALERS (Around 84%of the 2 burner gas stoves {Popular} are sold by the dealers)
  26. 26. SERVICE/QUALITY/FEATURES/MARGIN PROVIDED BY COMPETITORS PRODUCT (DEALERSN PERCEPTION) Excellent 60 Very good 25 Good 15 Satisfactory 20 Bad 10 0 10 20 30 40 50 60 1 EXCELLENT VERY GOOD GOOD SATISFACTORY BAD GRAPH-6 Graph Shows Competitors Have Excellent Service /Quality /Features/Margin
  27. 27. THE TOUGHEST COMPETITOR TO BAJAJ (DEALERS OPINION) Sunflame 35 Surya (Delhi Bang.) 50 Chinese 20 Other branded stoves (Nirlep, Fabreprestige, etc) 15 Others (local) 10 BAJAJ,S TOUGHEST COMPETITORS sunflame surya(delhi,bangalore) chinese other branded stoves) other (local stoves) GRAPH-7 GRAPH SHOWS SURYA (D+B) AND SUNFLAME ARE THE TOUGHEST COMPETITOR FOR BAJAJ
  28. 28. DEALERS OPINION TO INCREASE BAJAJ SALES Advertisement 60 More margin to dealers 15 Schemes/offers/gifts 35 Credit facility 20 DEALERS OPINION TO INCREASE BAJAJ SALES 0 20 40 60 80 1 Advertisement More margin to dealers Schemes/offers/gifts Credit facility GRAPH-8 GRAPH SHOWS DEALERS OPINION HOW TO INCREASE BAJAJ SALES (According to the dealers Bajaj should go for advertisement and promotions) DEALERS OPINION TO INCREASE BAJAJ SALES (IN PERCENTAGE) 60 15 35 20 Advertisement More margin to dealers Schemes/offers/gifts Credit facility GRAPH-9
  29. 29. DEALERS PERCEPTION ABOUT BAJAJ S POOR SALES Unawareness among customer and dealers 50 Price, Too high 35 Competitor s brand better 10 Competitors brand is cheaper with similar offerings 25 Others 10 0 20 40 60 DEALERS PERCEPTION ABOUT BAJAJ S POOR SALES Series1 50 35 10 25 10 Unawar Price Compe Compe Others GRAPH-10 GRAPH SHOWS DEALERS PERCEPTION ABOUT POOR SALE OF BAJAJ GAS STOVES (According to the graph main reason of poor sale is unawareness among customer of Bajaj gas stoves)
  30. 30. DEALERS SUGGESTION TO IMPROVE THE SALES OF BAJAJ S GAS STOVES Advertisement (Print&Electronic) 40 Attractive Schemes (customers) 25 Attractive Schemes (Dealers) 10 Good Dealers profit Margin 20 More varieties of gas stoves 15 Improved packaging 10 Credit facility 10 30% 19% 8% 15% 12% 8% 8% Advertisement(Print&Electronic ) Attractive Schemes(customers) Attractive Schemes(Dealers) Good Dealers profit Margin More varieties of gas stoves Improved packaging Credit facility GRAPH-11 GRAPH SHOWS DEALERS SUGGESTION TO INCREASE SALE (According to the graph dealers suggest advertisement and attractive schemes can increase the sale)
  31. 31. ANALYSIS OF DEALERS MARGIN IN VARIOUS GAS STOVES ANALYSIS OF DEALERS MARGIN IN VARIOUS GAS STOVES 350 250 550 500 400 450 550 500500 400 800 800 0 200 400 600 800 1000 BAJAJ SUNFLAM E SURYA(D+B) OTHERS 2 BURNER 3 BURNER 4 BURNER Series2 Series3 GRAPH-11 GRAPH SHOWS ANALYSIS OF DEALERS MARGIN IN VARIOUS GAS STOVES (According to the dealers they earn maximum profit In surya (d+b) And in others)
  32. 32. CORRELATION ANALYSIS Complaints given by dealers Complaints Respondents Rank High cost 10 7 Bad service 17 4 Poor margin 13 6 Unawareness 30 1 Poor distribution 25 2 Non-credit facility 20 3 Poor management 15 5 Complaints Respondents Rank High cost 10 7 Bad service 17 4 Poor margin 13 6 Unawareness 30 1 Poor distribution 25 2 Non-credit facility 20 3 Poor management 15 5 Total 130
  33. 33. Suggestions given by dealers Control the cost 10 7 Improve service 25 2 Increase margin 15 5 Increase awareness 29 1 Improve distribution 21 3 Give credit facility- 19 4 Imp. Personal relations 11 6 Let X = complaint rank. And Y = corresponding suggestion (solution) rank. Corresponding Suggestions Respondents Rank Control the cost 10 7 Improve service 25 2 Increase margin 15 5 Increase awareness 29 1 Improve distribution 21 3 Give credit facility 19 4 Improve dealer mgt. channels 11 6 Total 130
  34. 34. rs = 1 - 6 d2 /n (n2 - 1) = 1 - (6 X 8) / 7 (49 - 1) = 1 - 48 / 336 = 0.8571 Since, 0 < rs < 1 Therefore, there is positive correlation between no. of complaints and their corresponding suggestions given by the dealers. Complaint Rank(X) Sol. rank(Y) X-Y = d d2 A(Unawareness) 1 1 0 0 B Poor distribution 2 3 -1 1 C Non-credit facility 3 4 -1 1 D Bad service 4 2 2 4 E Poor management 5 6 -1 1 F Poor margin 6 5 1 1 G High cost 7 7 0 0 d2 = 8
  35. 35. MAJOR FINDINGS Market is full with gas stoves. Almost 40-50 different unbranded names have been observed in the market. Primarily the competition is between branded and unbranded gas stoves. Branded segment is ruled by Sunflame and unbranded by Surya (Delhi and Bangalore made) they has captured a huge market share.So far the name and position of Bajaj gas stoves are concerned it is observed that it has no significant in the gas stoves segment and company was not using its brandequity properly. The Bajaj gas stoves are struggling for their existence. There is very little awareness of Bajaj gas stove in market (i.e even to some of the dealers are not aware of Bajaj gas stoves) Advertisement plays a major role in increasing sales Sunflame whereas Bajaj is not concentrating on advertisement or promotion of gas stoves The service after sales of Bajaj is not satisfactory due to lack of service station. In terms of quality it is believed by various dealers and retailers that Bajaj and Sunflame both are good names, but Sunflame is older company in contrast to Bajaj hence the customers are more loyal towards Sunflame than to Bajaj. Market is heavily dominated by Surya group of gas stoves, one that is Delhi made and another from Bangalore; it was observed that Surya group is the hottest choice for most of the retailers. THE REASONS ARE AS FOLLOWS: Credit facility provided by the company. Pay after sale such type of policy by competitor is very potential for any company which is penetrating in the market Very high profit margin is given by Surya group to dealers, so dealers can enjoy huge bargaining with the customers and enjoy pity good profit Some of the local as well as Branded gas stove companies gives exchange offer on old gas stoves (ex. . .Surya gives Rs1000/- off on old exchange of old gas)
  36. 36. One of the major threat for Bajaj gas lies in exhibitions where gas stove companies like Surya, Jyoti Sunflame gives off till 25%-30% on MRP plus free home delivery if one books in exhibitions Bajaj gas stoves there are two types of competitor in the existing market one in terms of quality and brand equity and another in terms of pricing. Competitor in terms of quality/brand equity: Sunflame Competitor in terms of pricing: Surya (Delhi and Bangalore) Another important aspect for effective selling of gas stoves that was observed in the market was to make a tie up with certain LPG Company as companies like Prestige gas stoves has a tie up with Bharat petroleum BPCL and hence selling huge quantity of gas stoves. Another important aspect of Bajaj s gas stoves poor selling from the dealers and competitors point of view was that Bajaj s people or personnel or representative had no personnel relation with dealers as they never visited/visit to any outlet, hence why should dealers sell their product, no doubt this is a serious allegation as for when you are marketing a product is concerned. Apart from these if the performance of gas stoves are concerned the dealer s point of views are: Almost all gas stoves perform equally well and hence one can t claim something exclusively in terms of aesthetics, service, quality or design, even brand name. Secondly Bajaj s goodwill for other products is excellent but it is the view of the dealers that company is nowhere interested in the business of gas stoves. Lack of supply of Bajaj, s gas stoves anytime in the market and creates a lot of problems to dealers and retailers as against the service and guarantee terms. The company had limited product range. Various dealers desire the versatility of products. Even smaller companies like Prestige, Surya are having large number of models in gas stoves, it s a fact that Bajaj hardly supplies five to six models in the market.
  37. 37. SUGGESTIONS In order to excel and fight in the rigorous competition in the market it is suggested that company should consider certain points and think, plan certain alternatives for the effective sales of gas stoves in the market. o Advertisement and sales promotions via different modes. i.e. electronic as well as print media. print media means pamphlet, newspaper adds,hoadings etc. o Product range should be enlarged enough and versatile with respect to design, aesthetics and features to meet the demand of the customer. o Tie up with certain LPG gas ltd. Like HPCL/BPCL o Personal relationship with the dealers should be improved example. regular visit to dealers, to understand to various problems of dealers and try to solve as quickly as possible) o Proper use of Bajaj s brand equity, as related to other products like gas geysers, mixers and irons, water heaters, etc. o Improvising distribution network by analyzing the performance of present distributors. o Price should be slashed down to reasonable and competitive. Provisions for more margins to dealers o Regular visits to find out and analyze the performance of Bajaj gas stoves sales. o Bajaj Electrical should actively take part in exhibitions, with attractive schemes and promotional tools. If the company considers above-mentioned elements it might be in a short span of time Bajaj can emerge as an important name in the field of gas stoves segment.
  38. 38. ACHIEVEMENTS: For any summer trainee the achievement of the project means that the suggestions and recommendations are implemented by the organization. The recommendations suggested by me will be put into practice very shortly by BEL after working on it
  39. 39. LMITATIONS OF THE SURVEY Most of the dealers in gas stoves market were uneducated and hence it created hurdles at certain points to infer conclusions based on their statements, as some times those statement were found to be contradictory. Since study area was confined to Pune only I couldn t predict the performance of Bajaj gas stoves in broader perspective Certain information related to pricing provided by various competitors was not revealed by dealers hence it was very tough to infer conclusion in this regard. The responses from some of the dealers were not open hearted as I was not able to produce I card of Bajaj electrical Some of the dealers were not fluent with Hindi or English so understanding regional language was little difficult for me. Due to bad weather condition I was restricted to a limited number of dealers only which reduced my sample size
  40. 40. BIBLIOGRAPHY BOOKS AUTHOR NAME OF THE BOOK Philip Kotler Marketing Management C.R.Kothari Research Methodology Rajan Saxena Marketing Marketing Dr. Shajahan Research in Management WEBSITE www .bajajelectricals.com
  41. 41. PARTIAL LIST OF DEALERS VISITED AREA COVERED SHOP Pune Satara Road Laxmi Steel&Variety Dhankawadi Chandan steel &Furniture Dhankawad Raj gas repairs Karve Road Jain traders Karve Road Jain Metals Karve Road Raj Laxmi Metals Karve Road Chandra kant steel centre Nal Stop Surya Gas Kothrud Dhanlaxmi Steel Warje Prem Electricals Warje Dhone Gas Agency Warje Naka Shri Bagtesh Metals Model Coloney Deepak Electricals Shivaji Nagar Aadinath Sales Shivaji Nagar Vallabh Marketing Shivaji Nagar Arihant Sales Corp. Shivaji Nagar Prasad Electricals Tialk road Elektra Tialk road Surya Gas MG Road Kirkee MohanRaj Amar Metal house MG Road Kirkee S.Motilal Sons MG Road Kirkee Shantilal Sukhraj &Sons MG Road Kirkee Anjali Gift House MG Road Kirkee Roopali Novelties New Bazaz Kirkee Shanti Electricals
  42. 42. Fatima Nagar Citizen Kitchen Ware Fatima Nagar Classic Sales And Services Kondawa Khurd Jyoti gas Services Kondawa Khurd Ramdeo Steel Centre Kondawa Khurd Krishana Sales And Services Kondawa Khurd Golden Sales And Services Wanorie Mehul Traders Wanorie Alif General stores Hadapsar Rajshree Elec.&Hardware Hadapsar February Traders Hadapsar S.K.Enterprises Hadapsar B.K.metals Hadapsar Dinesh Gas Centre Hadapsar Jai Bhole Fancy Stores Yerwada Abhinandan Aundh Pannalal Hiralal Banthia Aundh Pankaj Varieties Aundh Uttam Steelsa Appa Balwant Laxmi Stainless steels Appa Balwant Sandeep StainlessSteel Appa Balwant Sri Laxmi Steels Appa Balwant Mahalaxmi Steels Budhwar Peth Bhagaya Laxmi Steels Budhwar Peth New Modi Stores Budhwar Peth Saif Stores
  43. 43. ANNEXURE QUESTIONNAIRE NAME OF THE DEALER ADRESS AND CONTACT NO. 1) DO YOU SALE GAS STOVES.:- YES NO 2) WHICH GAS STOVE DO YOU SALE:- BRANDED UNBRANDED 3) WHICH GAS STOVE DO YOU SALE IN BRANDED SURYA SUNFLAME FABRE GLENE PRESTIGE BAJAJ 4) WHICH GAS STOVE DO YOU SALE IN UNBRANDED (PLEASESPECIFY) 5) HOW MANY STOVES YOU SALE IN A MONTH (BRANDED) LESS THAN 5 MORE THAN 5 LESS THAN 10 MORE THAN 10 LESS THAN 15 MORE THAN 15 6) HOW MANY PIECES OF BRANDED STOVE IN BRANDED I) I BURNER 2) BURNER 3) BURNER 4)BURNER DO YOU SELL IN A MONTH 7) HOW MANY STOVES YOU SALE IN A MONTH (UNBRANDED)
  44. 44. LESS THAN 5 MORE THAN 5 LESS THAN 10 MORE THAN 10 LESS THAN 15 MORE THAN 15 8) HOW MANY PIECES OF BRANDED STOVE IN UNBRANDED I) I BURNER 2) BURNER 3)BURNER 4)BURNER DO YOU SELL IN A MONTH 9) WHAT PROFIT MARGIN IN BRANDED STOVE YOU GETS FOR SURYA SUNFLAME FABRE GLENE PRESTIGE BAJAJ 10) WHAT PROFIT MARGIN IN BRANDED STOVE YOU GETS FOR LOCAL BRANDS. 11) IN BAJAJ GAS STOVE WHICH IS THE LARGEST SELLING STOVE 1) BURNER 2)BURNER 3) BURNER 4)BURNER 12) ANY SUGGESTIONS FOR BAJAJ GAS STOVES
  45. 45. EXECUTIVE SUMMARY
  46. 46. COMPANY PROFILE
  47. 47. PRODUCT PROFILE
  48. 48. NEED AND OBJECTIVE OF PROJECT
  49. 49. RESEARCH METHODOLOGY
  50. 50. LIMITATIONS
  51. 51. FINDINGS
  52. 52. SUGGESTIONS
  53. 53. BIBLIOGRAPHY
  54. 54. ANNEXURE
  55. 55. This document was created with Win2PDF available at http://www.daneprairie.com. The unregistered version of Win2PDF is for evaluation or non-commercial use only.

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