1. DEVISING SALES AND BRANDING STRATEGIES FOR THE NEW
DIVISION (CPD) STARTED BY COMPANY
SUMMER INTERNSHIP PROJECT REPORT
SUBMITTED
AS A PARTIAL FULLFILMENT OF CURRICULUM
POST GRADUATE DIPLOMA IN MANGEMENT
SUBMITTED TO
SIES COLLEGE OF MANAGEMENT STUDIES
NERUL, NAVI MUMBAI
BY
SANKET KUBAL
Roll No: 087
MARKETING
2015-17
2. ii
Declaration
I, Mr. Sanket Kubal, studying in the second year of Post Graduate Diploma In Management at
SIES College of Management Studies, Nerul, Navi Mumbai, hereby declare that I have
completed the Summer Internship Project titled “Devising Sales and branding strategies for new
division (CPD) started by the company” as a part of the course requirements for PGDM program.
I also declare that the work undertaken by me is original and has not been copied from any
sources. I further declare that the information presented in this project is true and original
knowledge and has not been submitted to SIESCOMS or any other Institute for any other
examination.
Signature of the Student Date:
Name of the Student: SANKET KUBAL
Roll No.: 087
4. iv
Certificate by Faculty Guide
This is to certify that Mr. Sanket Kubal, studying in the second year of Post Graduate Diploma
in Management (PGDM) at SIES College of Management Studies, Nerul, Navi Mumbai, has
completed the Summer Internship Project titled “Devising sales and branding strategies for the
new division(CPD) started by the company” as a part of the course requirements for PGDM
Program.
Signature of the Faculty Guide
Name: Prof. Deepa Donde
Date:
5. v
Acknowledgment
My sincere gratitude to Dr. A.K.Sengupta , Dean of SIES college of management studies , for
providing me with an opportunity to do my internship at Teknovision Pvt. Ltd.. I take this
opportunity to express my profound gratitude and deep regards to Mr Pratik Gupta for allowing
me to work with Teknovision pvt.Ltd.which is a prestigious organization.
I thank Deepa Donde madam for her exemplary guidance, monitoring and constant
encouragement throughout the course of this project. The help and guidance given from time to
time shall carry me a long way.
I am obliged to all staff member of Teknovision pvt. Ltd. for their cooperation during the period
of my assignment as well as internship projects..
Special thanks to all my professors, Dr. Parag Amin, Mr. Vikram Parekh and Mr. Sandeep
Bhanot for their valuable inputs which helped to me to put to practice what I had learnt from
throughout the previous year.
Mr. Sanket Kubal
Place: Mumbai
Date:
6. vi
Executive Summary
Teknolite Pvt Ltd. Started in the year 1986 it had a makeover when it completely switched to
manufacturing and selling of LED lightings in the year 2011 arguably becoming the first
Indian company to enter into LED market. Since then it climbed up the ladder to become one
of the most trusted brands among the consumers in this sector.
The company started its common product division in the month of May 2016 with the
intention of targeting small retailers which were earlier not a major part of company’s
distribution and sales strategy. The idea behind this division was to try and sell the products
that are commonly used like bulbs and tubelights and at the same time improve the brand
image of the company in the minds of these retailers.
The approach taken to achieve this objective was visiting as many small retailers as possible
during the tenure and understanding their perspective through one to one interaction. It was
found that the major factors that influence any retailer to purchase are brand name and the
price. However there were a significant number of retailers who trusted the local distributor
more than the company itself due to on time delivery, better credit period, facility to pay in
installments and prompt service. This was one of the major drawbacks of this division as here
the products were directly supplied by the company. Also it was seen that a particular area
had its own factor that influences them to purchase the product. So a localized branding
strategy was suggested.
The various strategies that was suggested to increase the visibility and sales of the company
with regards to this division included giving free boards with company logo along with two
sample bulbs to display at store, acquiring a shelf space in hypermarkets like DMART etc.
reducing the price of the products as during the survey it was found that price was the biggest
influencer for any retailer to purchase a particular product. Further recommendations like
creating a database for electricians was suggested so that it helps the company to understand
the perspective of final consumers.
The extensive research during the period suggested that LED sector is one of the fastest
growing sectors in India. Therefore with aggressive marketing and innovative strategies
Teknloite will able to make a place in the minds of consumers distinctively
7. vii
Table of contents
1. INTRODUCTION......................................................................................................................1
1.1Introduction of the company ...................................................................................................1
1.2 LED technology .....................................................................................................................1
1.3 Global LED industry ..............................................................................................................3
1.4 Company profile.....................................................................................................................9
1.5 Background of the project....................................................................................................12
1.6 Brief of the project ...............................................................................................................13
1.7 Objective of the project........................................................................................................14
1.8 Scope the project .................................................................................................................15
1.9 Significance of study............................................................................................................16
1.10 Limitations of the study......................................................................................................17
2. LITERATURE REVIEW .......................................................................................................18
3. COMMON PRODUCT DIVISION........................................................................................19
3.1 Product categories ................................................................................................................19
4. RESEARCH METHODOLOGY ...........................................................................................25
4.1 Research objectives..............................................................................................................25
4.2 Research Design...................................................................................................................26
4.3 Primary data .........................................................................................................................27
4.4 Questionnaire Design ...........................................................................................................27
4.5 Hypothesis............................................................................................................................28
5. ANALYSIS AND INTERPRETATION ................................................................................29
5.1 Consumer Perspective..........................................................................................................29
5.2 Retailer Perspective..............................................................................................................50
5.3 Correlation Analysis.............................................................................................................61
6. MARKET ANALYSIS ...........................................................................................................62
7. CONCLUSION ........................................................................................................................79
8. RECOMMENDATION...........................................................................................................80
9. REFERENCES.........................................................................................................................83
10. SAMPLE QUESTIONNAIRE..............................................................................................84
11. APPENDICES........................................................................................................................87
8. 1
CHAPTER 1 . INTRODUCTION
Introduction of the company:
The lighting market has been receiving much attention lately due to its high potential for
CO2 abatement and its many new entrants. Projections show that the global lighting
market is expected to have revenues of approximately EUR 110 billion in 2020 –
comparable to the global TV market. A number of megatrends underlie this expansion.
Global population growth and urbanization are increasing the overall demand for lighting
products. Resource scarcity and climate change concerns are driving the industry trend
towards more energy-efficient lighting technologies. This is being accelerated by
government regulation on energy efficiency around the globe.
The advent of LED technology – only the fourth lighting technology in the history of
human mankind – is set to transform this industry. LED technology has not achieved a
competitive cost position in most applications up to now. But heavy investment from
various companies is forecasted to cut costs at a rate of 30 percent per annum, and LED
is becoming a broadly affordable technology.
The emergence of cost-competitive LEDs has caused a "paradigm shift" in the lighting
industry that has changed everything. The LED lighting industry rapid technological
change has been brought by enormous changes in the regulations affecting lighting. Short
product lifecycles are a result of new manufacturing and materials science that are the
result of companies trying to improve the economies of scale to make price points more
attractive to customers.
LED Technology
Light Emitting Diode (LED) is a semiconductor device that emits incoherent narrow-
spectrum light when electrically biased in the forward direction of p-n junction. The color
of the emitted light depends on the composition and condition of the semiconducting
material used, and can be infrared, visible, or near-ultraviolet.
LEDs create light by electroluminescence in a semiconductor material.
Electroluminescence is the phenomenon of a material emitting light when electric current
or an electric field is passed through it - this happens when electrons are sent through the
material and fill electron holes. An electron hole exists where an atom lacks electrons
(negatively charged) and therefore has a positive charge. Semiconductor materials like
9. 2
germanium or silicon can be "doped" to create and control the number of electron
holes. Doping is the adding of other elements to the semiconductor material to change its
properties. By doping a semiconductor you can make two separate types of
semiconductors in the same crystal. The boundary between the two types is called a p-n
junction. The junction only allows current to pass through it one way, this is why they are
used as diodes. LEDs are made using p-n junctions. As electrons pass through one crystal
to the other they fill electron holes. They emit photons (light).
Benefits of LED compared to conventional lights
LEDs (Light Emitting Diodes) are solid light bulbs which are extremely energy-efficient.
When first developed, LEDs were limited to single-bulb use in applications such as
instrument panels, electronics, pen lights and, more recently, strings of indoor and outdoor
Christmas lights.
Manufacturers have expanded the application of LEDs by "clustering" the small bulbs.
The first clustered bulbs were used for battery powered items such as flashlights and
headlamps. Today, LED bulbs are made using as many as 180 bulbs per cluster, and
encased in diffuser lenses which spread the light in wider beams. Now available with
standard bases which fit common household light fixtures, LEDs are the next generation
in home lighting.
A significant feature of LEDs is that the light is directional, as opposed to incandescent
bulbs which spread the light more spherically. This is an advantage with recessed lighting
or under-cabinet lighting, but it is a disadvantage for table lamps. New LED bulb designs
address the directional limitation by using diffuser lenses and reflectors to disperse the
light more like an incandescent bulb. Residential LEDs -- especially ENERGY STAR
rated products -- use at least 75% less energy, and last 25 times longer, than incandescent
lighting.
With more and more people realizing the energy-efficiency benefits of LED lighting, it
seems that everything from headlights to TVs to even clothing and wallpaper are now
being lit up by the versatile lighting technology. Unlike incandescent, LEDs are super-
compact; don’t emit heat and use just a fraction of the energy – plus their flexible, plastic
design allows them to be used in a wonderful variety of innovative ways that other types
of lighting just can’t touch.
10. 3
Global LED lighting industry
Lighting companies have focused on professional lighting solutions in developed markets
such as the U.S., Europe and Japan. They seek to capture certain market segments via
product diversification and differentiation. In the emerging markets, rapid economic
growth, favorable government policies, and mega urban projects are constantly generating
new opportunities. Wu noted that the main growth centers in the global lighting market
next year will be the U.S. and India.
Demand has been relatively strong in the U.S. lighting market this year, with growth
residing in applications such as commercial/industrial lighting, horticultural lighting and
marine lighting. Major U.S. lighting companies are proactively developing various LED
lighting businesses and giving a greater share of their portfolios to LED lighting products.
Demand growth for LED lighting products has been strong in the commercial/industrial
applications, with the fastest growth found in troffers, panel lights, tunnel lights and
high/low bay lights. New applications are also emerging, including smart lighting and
light communication.
Developments in the emerging markets such as India, Africa and Southeast Asia will be
heavily influenced by government policies and the volume of project tenders in the
market. The Indian government, for example, plans to purchase 200 million LED light
bulbs by the end of 2016 and has issued tenders on LED streetlights retrofit projects. To
meet bid requirements related to revenue, production capacity and manufacturing
capability, international bidders are encouraged to enter joint ventures with local lighting
companies. The Indian LED lighting market therefore is expected to remain hot through
2016.
New report by Allied Market Research, “Global Light Emitting Diode (LED) Market,”
estimates this market will reach $42.7 billion by 2020, registering a robust compound
annual growth rate of 13.5 percent from 2014–2020. The Asia-Pacific region dominates
the LED technology market because it houses approximately three-quarters of global
electronics manufacturers. North America, due to high-tech forensic and medical
applications, leads the ultraviolet (UV) LEDs market.
The primary applications of UV LEDs are in medical treatments and forensic tests. UV
LED technology anticipates further development as companies are rigorously working out
acquisitions to expand their product portfolio and applications.
11. 4
Foreseeing great environmental benefits and energy-saving capabilities, governments
across the globe are implementing LED lighting in many public settings. The U.S.
government is replacing conventional streetlights with LEDs, with expected completion
by the end of 2014. Such developments are instrumental in the growth of the LED
technology.
Frequent product introductions have characterized the LED lighting industry. There is a
highly competitive pricing environment with the current price point of $10 in 2013 per
light about to decline to $6 per light. These market characteristics increase the need for
continuous innovation.
LED lighting industry in India
Light Emitting Diode (LED) lighting technology has been recognized as efficient and eco
friendly in comparison to the Incandescent Lamps (ICLs) and florescent lamps (FTLs,
CFLs). In India penetration of LEDs could significantly overall energy consumption
without compromising on the output. Over the years the opportunities for LEDs in Indian
lighting market have been across various segments including automotive,
communications, transport, signalling, architecture and entertainment.
In 2012, the LED light source market generated about US$ 100 million. LEDs remain a
Table 1
Lighting Industry India
12000
10623
10000 9290 14
7994
8000 7167 17
6567 12
6000
5711 9
5060
4500
15
13
4000 12.5
2000
0
2005
200
6
2007
YEAR
2008 2009 2010 2011
Annual Turnover % Growth
2012 2013
12. 5
minority in the Indian market with only three to five percent market share. In the
residential market, LEDs are mostly seen in new constructions, with existing CFL users
are less willing to convert to LED lighting. The compact florescent lamps are the major
contributor, with a share of 50%, in the overall lighting market in India for 2016. In 2009,
India began a plan of replacing 4 million inefficient incandescent bulbs with CFL by
2012. By 2013 Indian states including Tamil Nadu announced plans of replacing some
200,000 fluorescent tube lights with LEDs. Philips and Panasonic active involvement in
the Indian market in late 2013 and Jan 2014 are also indicators of LED market potential.
The Indian market continues to be mainly driven by government which makes up 51
percent of all LED orders. The streetlight market, for instance is benefiting from lighting
overhaul in cities of old lights to LED. While in the commercial lighting segment there is
a heightened interest in industrial lighting and in down lighters, which in India are
vigorously shifting to LED as a source.
Most of the LED chips in the country are still imported with Philips and Nichia
dominating the LED industry. Philips has a 65 percent share in the lighting market in
India. Even the GaN LED market is dominated by large foreign players including Cree,
Nichia, Samsung and Osram, Everlight and Epistar have also started appearing in the
market though the market share is not substantially large in lighting market.
Growth drivers
The various factors contributing to this growth are listed below.
Government support for promoting investments in energy efficient lighting
systems
Development of national standards for testing and performance evaluation
Transfer and Improvements in existing technology for new applications
Global mandate to address GHG emissions
Decline in average prices of LED
13. 6
Government support
• Government notifications:
– Ministry of Commerce issued notification to Delhi Government to ensure all
showrooms or show windows using Incandescent Lamp or halogen lamps to
immediately replace with LED down lighters. More States to follow
– Ministry of Commerce issued advisory to Ministry of Urban Development to
Ensure all medium and small municipalities change to LED Street Lighting
– Bureau of Energy Efficiency started Pilot programs to encourage use of LED
streetlights for Municipalities and Local Bodies for secondary roads, parks
and parking areas etc. – 180 bodies being funded
Government bulk procurement
– Preparing bulk requirement of Railways, Airport authority, Urban Housing,
Highways and other large development projects to create a large demand to
encourage industry to establish
– LED Self Ballasted Lamp for “Bachat Lamp Yojna”
– All Households within 5 k.m. of Power Generating Plants to be given one
LED bulb free
• Test Labs
– Govt subsidizing establishment of LED test facilities at existing Test Lab
(About Rs. 25 Crores)
– Expected atleast 3 more Test Labs supported by Government
– Total expected 12 Test Labs by 2013
Companies currently in this sector
Philips Electronics India Limited, a subsidiary of the very popular company named Royal
Philips Electronics (headquartered in Netherlands), is one of the most popular and well-
known brands among Indian consumers.
OSRAM India – a wholly owned subsidiary of OSRAM GmbH – was established in the
year 1994. Currently, the company is providing a wide-range of around 5500 products for
14. 7
numerous applications in homes, workplaces, industrial units, and even on the roads. All
of these products are not only energy-efficient but also environment-friendly.
In the year 2010, Havells entered the Light-Emitting-Diodes (LED) Market. And today,
Havells is one of the leading LED lighting manufacturers in India. In India, there are 14
state-of-the-art manufacturing plants, situated at Haridwar, Faridabad, Noida, Baddi,
Alwar, Noida, and Neemrana.
Wipro lighting is one of the fastest growing lighting companies in India. With unique
design and high lumen output, Wipro brand offers green by design and energy efficient
LED luminaries and lamps for different commercial & industrial application areas like
modern work spaces, manufacturing & pharmaceutical companies, designer petrol pumps
and outdoor architecture. For entertainment, architectural and retail applications, Wipro
lighting offers amazing colour mixing LED range to get unlimited color palette with
notable energy efficiency. Bajaj Electricals brings world class lighting products with
revolutionary LED technology to dazzle India. It is leading consumer durable company of
India as well as it has pioneered in street lighting and rural electrification by providing
special Solar & LED lightings solutions for major lighting & engineering projects of the
country. The key benefits of Bajaj LEDs are long life, energy efficiency, eco-friendly
lighting, multi-colored light sources, and an inbuilt voltage surge protector.
Eveready offers huge variety of lighting products to satisfy all types lighting needs of the
urban as well as rural consumers. Currently, it also has started LED lighting business
offering best in class LED bulbs at very competitive prices. However LED lighting
manufacturing is done in China through an outsourced contract.
SYSKA LED lighting offers simple, long lasting and international quality lighting
solutions, applicable to almost every segment. SYSKA LED Lights are available in
overall lighting product range, offering so many choices to use effective and energy-
efficient LED lighting tools more and more also allows flawlessly combining of them
with conventional products.
Surya Roshani is just ranks after Phillips when it comes to the light. The market is already
flooded with more than 50 LED products of Surya Roshni, however the company is
planning to launch more than 50 new Led Lighting using top quality LED chips from
Nichia, Japan in the next 3-4 months.
Challenges local manufacturers face
In general, the prices for LEDs are pretty low in the Indian market because it is still a
15. 8
developing country and while it has low entry costs, local manufacturers also receive low
margins in return. India does not have a respectable LED industry size, so this is a major
challenge for manufacturers. Moreover, the industry faces intense competition from Asian
manufacturers.
Location and stable power source also present particular challenges for companies that
want to establish foundries and factories in India. It is difficult to find suitable locations to
build LED factories, and there are still issues of power shortages. Headhunting is also a
headache for manufacturers, as there are few people working in the semiconductors
sector.
To differentiate one’s product from Chinese, Japanese and Taiwanese imported products
is a big challenge faced by manufacturers in today’s competitive market. These importers
get cost arbitrate products which is very highly focused on final product while realizing
that a good LED luminaire is foremost a good and reliable power supply. The company’s
strength of any manufacturer today lies in the speed with which innovative and reliable
products can be brought to the market. Speed happens only with quick and internal
decision-making, without having to convince the outsourcing partners in a product or
technology, which is why Samsung has been able to dent the forte of traditional
electronics giants. The chip manufacturing and design is changing so fast that many
companies are outsourcing. However, due the division of work in the LED market, there
can be incompetency.
Growth History of Teknolite
Teknovision was formed in Mumbai in the year of 1985 for manufacturing DC Tube
lights and inverters for Buses and Trains. It’s Inverters and Fittings for buses got approval
from almost all city and state transport undertakings such as DTC Delhi, BEST Mumbai,
AMTS Ahmedabad and Indian Railways.
In the year 1986, it started another division for Rechargeable Solid State Emergency
Lights with latest technology. Its Emergency Lights give trouble free operation for years
with Solid State Fully Automatic Circuits. These Lights are being sold throughout the
country by our dealers and distributors network. Various Government and semi-
Government organizations are in the list of our valued patrons for years.
In the year of 1993, another division was started for Electronic Ballasts and Electronic
Luminaries to achieve highest energy saving i.e. power factor of our ballasts are up to
16. 9
0.99. It have wide range of Luminaries and ballasts to suit every need. It supplies ballasts
regularly to various government organizations directly or through our distributors. Its
ballasts and luminaries are fully guaranteed for years.
In the year of 2002, they were the first small sector organization who achieved ISO 9001-
2000 which shows our commitment to quality and service.
In the year 2005, Teknolite started LED Lightings in big way. All LED Lightings are
manufactured by in-house facility. They have wide range of LED Lightings such as
Indoor Lightings as well as outdoor Lightings. They have their own in house LED Driver
manufacturing unit which produces high efficient drivers with maximum energy savings.
In year 2011, Teknolite was first Indian company to introduce Indian made LED Panel
Lights with state of art technology. Their panel lights give highest light output over the
years. World class LED of Edison and Acrylic of Mitsubishi japan has been used to
achieve highest quality standards.
Company Profile
Teknovision Pvt. Ltd. Situated in Mumbai, is a professional and pioneer manufacturer of
Electronic & Electrical Luminaries, Emergency Lights, Electronic Ballasts, LED
Lightings, LED Drivers, Down Lighters, Invertors and related accessories since last 30
Years under brand name of ‘Teknolite’. With reliable quality and at competitive prices, all
the teknolite products are well-sold through-out India. Our products are approved by
various Govt and semi Govt organisations such as MSME, BIS, FOCE ROHS, LM80
Tested LED. We are strategic partners of Edison LED which again is one of the best in
the world.
Teknovision Pvt. Ltd. is equipped with advanced testing facilities. We are having in house
testing facilities for testing of every critical parameter of our products to ensure trouble
free performance over the years. Teknovison implements modern management and
stringent quality control system. We have been accredited to ISO 9001-2008 certificate in
March 2016 which shows our commitment to international quality itself.
In the year of 2007, Teknolite introduced LED luminaries a variety of models to suit
every need. Our LED lightings are fully guaranteed for their best performance. Our own
developed high quality LED drivers makes us far superior and class above in today’s
world, keeping in mind energy saving is the need of the hour LED lighting is the most
preferred green light solution. Very recently we have developed Teknolite LED wall and
17. 10
outdoor lightings in different versions and wattages. LED lighting series is perfect
combination of technology and energy saving. By using Teknolite LED Lightings, we
can save energy drastically as compare to conventional sodium or Metal halide Lighting.
Distinct Characteristics
They have our own Die cast Moulds for all type of LED Lightings.
They were the first to introduce panel lights in Indian market.
Have strategic tie ups with Taiwanese company Edison LED which is one of the best
companies in the world for their technology.
They have 2 patents for their design and technology.
Product Range
Panel, Down, COB, Spot, Wall, Bulbs and Tubes, Street Lights, Flood and Outdoor Lights
Market area covered
Maharashtra, Delhi, Punjab, Haryana, Chandigarh, Telangana, Andhra Pradesh, Tamil
Nadu, Karnataka, Kerala, Madhya Pradesh, Chhattisgarh, West Bengal, Uttarakhand,
Rajasthan, Orissa, Gujarat, Goa, Jharkhand.
Competitor within area
For projects Hybech, Changi, Osram, Wipro, Phillips, Syska, Osram, Bajaj, Surya, Lafit,
Hitech, Eon and some Chinese brands which are imported locally and provide much price
arbitrated options. Led strips found in market are speed, pride and avon.
Revenue Model
Company has completely dealer based revenue model. The company has a wide dealer
network across India, in Mumbai they have dealers with minimum 3 km radius distance
between two. While in all other places they have distributors which supply in their local
markets. They do have presence in projects but products are delivered through dealer
network only. Company has recently started OEM division which is yet to pick up pace as
it is just initiated and company gives them the products directly. For another new segment
called Common Product Division which is functional only in Mumbai as of now, the
company has set up distributors who would then further supply the products to local retail
shops.
Organizational Structure
It is a 30 year old company but is still young and in learning phase which constantly keeps
adapting to market requirements and changes. It has an open structure where everyone
18. 11
reports to director, on daily basis.
The headquarters of company is situated in Mumbai with over 20 employees working here,
whereas there is another office at Ahmadabad where another 40 employees are working.
Most of the work is outsourced by the company but as manufacturing is one of their core
competency they have four factories in Mumbai, Pune, Ahmadabad and Haridwar.
Marketing strategy:
Company is now diversifying as it has entered in projects, original equipment
manufacturing and common product division. Projects started in January 2016 while the
other two started in May 2016.
They have started branding through social media, blogs and YouTube reviews and also
have online presence on Tolexo and Moglix but the price is high so that people should buy
offline from dealers who give good discounted rates.
They have also started sponsoring events and exhibitions like MCHI CREDAI BIZNET,
ACETECH, LED Expo, MCHI Property exhibition plus architectural events.
Company is also using different pricing strategies where we have buy back offers on Tube
Lights and Down Lights, another one is paying only on savings which we pitch to huge
societies and hotels.
Swot analysis of the company
Strength
• More than 30 years of experience in the
industry
• Good chain of loyal exclusive dealers
across state
• A decent brand among architects and big
Led dealers
Weakness
• A very small presence among small
retailers and consumers
• Non aggressive approach of the area
dealer
• Unavailability and late delivery of
ordered products
Opportunities
• Growing demand of led lights
• Government’s aggressive campaign for
Led lights
• No presence of decent brands in Led
strips
Threats
• Hyper competition
• Price war among bigger brands
• Huge chain of network of big companies
like philips, syska, eveready
19. 12
Background of the project
Common Product Division
Common product division or CPD is the new division started by the company in the
month of may 2016. The product mix comprises of bulbs, tubelights, LED strip drivers
(SMPS), Street lights, LED strips.
How and why the division was started
Teknloite Ltd being one among the oldest in lighting sector in India initially had this
policy of not selling any of its products to final retailers. Instead they sold everything to
its distributor of that particular area. For eg Teknolite has a distributor in Santacruz ,
suppose a retailer from malad wants to buy Teknolite products he had to contact this
dealer for all the products and there was no other alternative available for him . This
policy was maintained across all of Maharashtra and other states but sooner or later it was
found that although the company earns profits by selling the products to the distributors
there was very limited familiarity among the final consumers and local retailers of the
LED lighting about the company mainly due to non- aggressive approach by the area
distributors. Also a lot of local retailers were hesitant to contact the distributor for product
with a belief that he might charge much higher than what it could have been had the
product was purchased directly from the company. Thus to negate this the management
came up with an idea of coming up CPD. Wherein the products that are commonly used
among the consumers will be sold directly to the retailers via the company. This was
different to the company’s earlier policy of never approaching small retailers. Since the
company had maintained good relationship with area distributors all these years it was not
a very good option to altogether start selling all the products directly. which might create
a friction in the relationship of distributors and the company. Hence it was decided that
instead of all the products mainly three products like bulbs. Tubelights and LED strip
drivers (SMPS) will be directly sold to the local retailers.
20. 13
Brief about the Project title
Devising branding and sales strategy for common product division. The basic idea of this
project was to make the retailers aware about the company and its products offered. It
included talking to as many retailers as possible in the time period to try and convince
them to buy the product of the Common product division and gauge their expectations and
reasons for purchasing or rejecting the product. Although there was no specific format of
questionnaire given few basic questions was asked by myself during the project to
understand analyse and later provide recommendations to the company. The idea was not
just to do branding about the company and its products but also understand competitor’s
strategy and the most purchased brand by the retailers among all the products that are
offered under CPD. It further involved coming up with solutions to counter the
competitor’s strategies and increase the sales in this division.
21. 14
Objective of the study
The Primary objective of the study is to device sales and branding strategy which will
raise the sales and customer awareness about this common product division and also
build a strong brand among people to aggravate customer loyalty in the LED industry.
Secondary objectives are
To study the pricing of competitor’s company
To understand the consumer buying process and customer buying profile
To build value for its customers by rendering its expertise and highly customised
services to its customers
22. 15
Scope of the study
The present study confines only to the impact of various dimensions of brand building
and tapping a large market area which is still remained untapped for a long time.
In future, this study can be enhanced by studying the impact of strong brand building on
customer loyalty and customer satisfaction thereby raising the sales and the analysis of
new entrants that are likely to enter in this niche market.
A study can be undertaken to identify influencer dynamics
23. 16
Significance of the study
This study not only helps to study the level of customer relationship management with
its customers but also helps to understand, analyse and the competitors in the
prevailing market.
It also enables the company to have a check on new entrants and this market and the
level of consumer preference that our prospective customers have on us than our
competitors.
It also assists the marketing team to build marketing and business strategies to
withstand competition on a long term basis.
24. 17
Limitations of the study
The survey is subjected to the biases and prejudices of the respondents. Hence 100%
accuracy cannot be assured.
Retailers were hesitant to share negative information and unpleasant experiences openly.
The research was carried out in a short span of time, wherein the researcher could not
widen their scope of study.
The survey was carried on in the city of Navi Mumbai and Dombivli so its impact is
limited
Limited sample size results in the availability of only limited data for research and
analysis. This in turn implies that the effectiveness to break down the data leading to
accurate results is affected as a small sample size cannot provide the basis for sound and
reliable inferences. Thus, the aim of deriving meaningful and relevant conclusion gets
compromised and there is a deviation from the real scenario that exists
25. 18
CHAPTER 2 . LITERATURE REVIEW
In a Case Study on brand management which was edited and written by
Nusrath Jahan Maldar from ICFAI business school case development centre
discussed the various factors contributing to strong brand building and brand
building as a key tool for creating and maintaining competitive advantage. It
also disclosed that a brand strategy must be engineered into the marketing
mix of the product.
The Brand Gap : How To Bridge The Distance Between Business Strategy And
Design By Marty Neumeier opined that a great brand strategy is a keystone of
positioning and it reinforces the absolute integral competitive analysis phase
of brand strategy development.
Editing The Big Fish : How Challenger Brands Can Compete Against Brand
Leaders By Adam Morgan proves various strategies and models for brand
building strategies including the collaboration of both modern and traditional
brand building and proved that branding is a must for start ups, upstarts or
anyone looking for a fresh approach to marketing.
26. 19
CHAPTER 3 . COMMON PRODUCT DIVISION
Common product division or CPD is the new division started by the company in the month of
may 2016. The product mix comprises of bulbs, tubelights, LED strip drivers (SMPS), Street
lights, LED strips.
Categories of Products
Diffused bulbs - In this style LED bulb, clusters of LEDs are covered by a dimpled
lens which spreads the light out over a wider area. Available in standard Edison bases,
these bulbs have many uses, such as area lighting for rooms, porches, reading lamps,
accent lamps, hallways and low-light applications where lights remain on for
extended periods.
Dimmable Globe LED bulbs - Designed for bathroom vanities or anywhere a globe
bulb is required, these bulbs produce light equivalent to a 40-watt incandescent bulb,
yet only consume 10 watts of power. Dimmable from 100% to 10%, these bulbs have
a 200 degree beam angle to cast light in a wide area.
Flame Tip LED bulbs - They are designed to replace incandescent candelabra bulbs,
these flame tip LEDs deliver the equivalent light of 25 - 35 watt incandescents while
only drawing 3.5 watts of electricity. Because of the heat sink in the base, light
doesn't disperse downwards as much as typical incandescent candelabra bulbs.
LED Tube Lights- Designed to replace fluorescent tube bulbs, these LED tubes are
available in 8 and 16 watts, which replace traditional 25-watt and 40-watt T8/T10/T12
fluorescent tubes. Because fluorescent lights are often installed in high ceilings in
commercial sites, there are additional savings because the frequency of changing
bulbs is greatly reduced.
LED Strip Lights - An LED strip consists of a self-adhesive tape and substrate on to
which LEDs are placed at regular intervals. Once installed and power applied, the
whole length of the strip is illuminated producing a forward light. LED strips make a
great addition to any domestic or commercial environment. LED strips are supplied in
reels of 5 metres. The LED strip can be cut to length but only at special cut points
marked on the strip. For example in a kitchen with two runs of 2.5M, you would cut
the 5M strip in half (at the cut-point), apply the strip and power each strip with an
27. 20
appropriate driver or power both from the same driver. The strip could also be cut into
a number of variations. LED strip are available in two types mainly called as low
power (3528) and high power (5050). 3528 is 3.5mm X 2.8mm LED ideal for most
domestic situations for task or ambient lighting where observers are close e.g. ceiling
coves, under-cabinets, on stairs and around windows and 5050 is 5.0mm X 5 LED
with bright light and are 40% larger than 3528 LEDs. They are ideal for commercial
or domestic use where the observer may be further away – e.g. high ceilings, used as a
wall washer, outdoor lighting, ambient lighting for larger areas
LED Strip driver - 12V LED strip operate with a 12V DC constant-voltage power
supply known as a driver. Drivers are sold separately and are available in varying
wattage outputs. The specification of the driver required will depend on the total
power requirement of the connected strip(s) . The power output of the driver (wattage
rating) must be at least 10% higher than the total required wattage of the strip(s) being
powered
1 watt( B22)
3 watt
(B22,E14&E27)
5 watt
(B22,E14&E27)
7 watt
(B22,E14&E27)
10 watt
(B22,E14&E27)
12 watt
(B22,E14&E27)
CPD BULBS
29. 22
Strength and Weakness Analysis of the competitors
Philips
Strengths
1. Dedicated sales person
2. Decent Quality of product
3. Brand Loyal customers
4. Lights spread is in 180 degrees
5. Power factor high as 0.94
6. Weight is more approx 160gms for 7W
bulb, good heat sink
Weakness
1. Cost is high than other brands
2. Outsourcing strategy is used, imports
products made in China
3. Lumens is less approx (600 for 7 watt)
4. Delay in turning on time
5. Lifetime of 15000hrs
6. Material used is glass
Eveready
Strengths
1. Lumen value is 700 for 7 watt bulb
2. Price is low
3. Instant lighting when bulb is pressed
4. Brand recall among the customers
Weakness
1. Flickering effect takes place very soon
2. Made in China product
3. Claims to have life of 15yrs but quality
not that good
4. High heat producing bulb due to cheap
quality of heat sink
5. 130 degree light spread
6. Lifetime of 20000hrs
7. Power Factor is low 0.5
8. Material used is plastic
Crompton
Strengths
1. Cost is very low
2. Power factor is approx 0.9
3. Well know brand
Weakness
1. Lumens is 600
2. Material used is plastic
3. Build quality is poor
4. Weight of the bulb is less so poor
heat sink is expected (80gms)
5. Light spread is approx 150 degree
30. 23
Syska
Strengths
1. Brand name and recall
2. Attractive schemes to dealers/ sales
persons
3. PF > 0.90
4. Weight is more good heat sink
Weakness
1. Poor quality (Imports from China)
2. Gives dealership to only Sindhi
people
3. Many complaints and replacements of
their bulbs
4. Lumens is less around 600
5. Light spread is 150 degrees
Comparative Price analysis of different brands
Table 2
Bulbs
Name Specification Cost Difference
with
Teknolite
Additional scheme offered
Teknolite 3 W(Bulbs) 125 NA None
Eveready 3 W(Bulbs) 105 20 Gives one battery on every bulb
worth Rs 20
Syska 3W(Bulbs) 112 13 None
Philips 2.5W(Bulbs) 105 20 None
Teknolite 5W(Bulbs) 139 NA None
Eveready 5W(Bulbs) 120 19 Gives one battery on every bulb
worth rs 20
Syska 5W(Bulbs) 132 7 None
Crompton 5W(Bulbs) 117 22 None
31. 24
Table 3
Tube Lights
Name Specification Cost Difference
with Teknolite
Additional scheme offered
Teknolite 20W 472 NA 20+1
Philips 20W 600 -128 None
Syska 18W 510 -38 Seasonal 10+1
Syska 22W 570 -98 Seasonal 10+1
Wipro 18W 525 -53 Seasonal schemes
Maxlight 18W 350 122 One silver coin with every tube
Eveready 18W 480 -8 12+1
Table 4
SMPS
Name Specification Cost Difference Additional scheme offered Warranty
offered
Teknolite 2Amp 150 NA None 2 Years
Brisk 2 Amp 120 30 Depends upon the quantity
offered
1 Year
Brisk 2 Amp(water
proof)
80 70 Depends upon the quantity
offered
1 Year
Nova 2 Amp (water
proof)
50 100 Depends upon the quantity
offered
1 Year
Teknolite 5 Amp 450 NA None 2 Years
Brisk 5 Amp 280 170 Depends upon the quantity
offered
1 Year
Brisk 5 Amp (water
proof)
170 280 Depends upon the quantity
offered
1 Year
Nova 5 Amp (water
proof)
70 380 Depends upon the quantity
offered
1 Year
32. 25
Part A
CHAPTER 4 – RESEARCH METHODOLOGY
Research objectives
Research related to consumers
To identify factors for influencing a person to buy LED lights
To Study brand awareness with respect to Teknolite LEDs
Research related to dealers
To identify buying behavior of dealers
To identify motivation driving forces of the dealers
33. 26
Research design
1. The major part of this study is descriptive in nature since the main objective here is to
understand what is going on in the service industry.
It’s more of a phase where the facts disclosed are of a kind where the matter subjected
is on the form whether there is relationship between the quality products rendered by
the company and the satisfaction level of customers with regards to the various
products offered by them. It also tests whether there is customer loyalty and how
many of these will refer the products offered by teknolite luminaries.
2. Some part of the study is quantitative since the study of demographics of the
customers of teknolite luminaries is numerical in nature while their satisfaction level
and other similar parameters are qualitative in nature.
3. Both of them are collected with a help of questionnaires during a survey conducted.
34. 27
Data collection
Primary data
Most of the data collected for the study of this project is primary in nature since most of
the data is collected through interview taken of the retailers
Sources of data collection
Major source of collection of data is through interview
Questionnaire design
Likert scale: A four point Likert scale is used to check the respondent’s strength of
agreement/disagreement with the given statements. The options were- strongly agree,
agree, disagree, strongly disagree. This was basically done to ensure that employees do
not take a diplomatic stand and remain undecided in their decisions.
Open ended questions: To give the respondents freedom and to include factors that may
have been left out, three open ended questions were included to find out the major factors
of satisfaction and dissatisfaction in the organization and few suggestions from their end.
Scoring key
Option Corresponding points:-
Strongly Agree 4
Agree 3
Disagree 2
Strongly Disagree 1
(Taking average to avoid problem of unanswered questions)
35. 28
Hypothesis
Hypothesis: 1. To study the impact of Internet used as source of collecting information on
different age group, we can consider the following null and alternate hypothesis.
H0: There is no significant impact of Internet on different age group
H1: There is a significant impact of Internet on different age group
Hypothesis: 2. To study the impact of Shopkeeper used as source of collecting information on
different age group, we can consider the following null and alternate hypothesis.
H0: There is no significant impact of Shopkeeper on different age group
H1: There is a significant impact of Shopkeeper on different age group
Hypothesis: 3. To study the impact of Electrician used as source of collecting information on
different age group, we can consider the following null and alternate hypothesis.
H0: There is no significant impact of Electricians on different age group
H1: There is a significant impact of Electricians on different age group
Hypothesis: 4. To study the impact of cost of product on different income group, we can
consider the following null and alternate hypothesis.
H0: There is no significant impact of cost of product on different income group
H1: There is a significant impact of cost of product on different income group
Hypothesis: 5. To study the impact of monthly income on trying LED lighting, we can
consider the following null and alternate hypothesis.
H0: There is no significant impact of monthly income on buying behaviour regarding lighting
H1: There is a significant impact of monthly income on buying behaviour regarding lighting
36. 29
CHAPTER 5. ANALYSIS AND INTERPRETATION
Research 1 based on consumer perspective
1.What type of lighting do you use
Frequency Percent Valid
Percent
Cumulative Percent
Valid
CFL Bulbs 85 34.3 34.3 34.3
LED Bulbs 96 38.7 38.7 73.0
LED Tube 51 20.6 20.6 93.5
NEON
Tube
16 6.5 6.5 100.0
Total 248 100.0 100.0
Interpretation: The result shows that still 40% of the customers are present who can shift
from the traditional lighting to LED lighting
2. Have you tried led lighting
Frequency Percent Valid Percent Cumulative Percent
Valid
No 44 23.7 23.7 23.7
Yes 142 76.3 76.3 100.0
Total 186 100.0 100.0
CFL Bulbs
34%
LED Bulbs
39%
LED Tube
21%
NEON Tube
6%
What type of lighting do you use
37. 30
Interpretation: The pie chart shows that approximately 76% have tried LED lighting and rest
26% haven’t tried yet
3. How did you get familiar with LED lighting
Frequency Percent Valid Percent Cumulative
Percent
Valid
TVC 146 75.3 75.3 75.3
Family 12 6.2 6.2 81.4
Shopkepr 8 4.1 4.1 85.6
Internet 22 11.3 11.3 96.9
other 6 3.1 3.1 100.0
Total 194 100.0 100.0
Total 194 100.0
No
24%
Yes
76%
Have you tried led lighting
38. 31
Interpretation: The customers became familiar to LED lighting mostly due to the TV
commercial advertising by the government and bigger brands. The second media through
which the awareness has been spread is through Internet
4. What are the reasons for buying LED lights
Frequency Percent Valid Percent Cumulative
Percent
Valid
Energy
Saving
72 38.7 38.7 38.7
Long
life
20 10.8 10.8 49.5
Save
Money
54 29.0 29.0 78.5
Brighter 28 15.1 15.1 93.5
Warrant
y
6 3.2 3.2 96.8
NA 6 3.2 3.2 100.0
Total 186 100.0 100.0
Total 186 100.0
75%
6%
4%
12% 3%
How did you get familiar with LED
lighting
TVC Family Shopkepr Internet other
39. 32
Interpretation: The major reason for buying LED lights is Energy saving and money saving
5.What are the reasons for not buying LED lights
Frequen
cy
Percent Valid Percent Cumulative
Percent
Vali
d
cost 90 48.4 48.4 48.4
colour 24 12.9 12.9 61.3
Buying habits 32 17.2 17.2 78.5
Shapes 20 10.8 10.8 89.2
fittings 20 10.8 10.8 100.0
Total 186 100.0 100.0
Total 186 100.0
39%
11%
29%
15%
3% 3%
What are the reasons for buying LED
lights
Energy Saving Long life Save Money Brighter Warranty NA
40. 33
Interpretation: The major reason for not buying LED lights is cost of the bulbs which is
much high as compared to other types of bulbs available
6. Electrical works at home are done by
Frequenc
y
Percent Valid
Percent
Cumulative
Percent
Vali
d
Myself 22 11.8 11.8 11.8
Electrician 140 75.3 75.3 87.1
Family
member
24 12.9 12.9 100.0
Total 186 100.0 100.0
Total 186 100.0
48%
13%
17%
11%
11%
5.What are the reasons for not buying
LED lights
cost colour Buying habits Shapes fittings
41. 34
Interpretation: Most of the electrical works at home are done by electricians, so electricians
could be the one who can spread awareness about the product within the people. A good
word of mouth about the quality of product can be spread within the community by the help
of electricians
Myself
12%
Electrician
75%
Family member
13%
Electrical works at home are done
by
42. 35
7. Which of the following characteristics are considered before
buying any type of lighting
Frequency Percent Valid
Percent
Cumulative
Percent
Vali
d
Cost 108 21.1 21.2 21.2
Quality 148 29.0 29.0 50.2
Brand
name
80 15.7 15.7 65.9
Product D 24 4.7 4.7 70.6
Govt
approls
18 3.5 3.5 74.1
Service 38 7.4 7.5 81.6
Warranty 95 18.6 18.6 100.0
Total 511 100.00 100.0
Interpretation: Quality of the product is one of the main characteristics before buying the
product. People are willing to buy the quality product even if the cost is high than the
competitor. The second characteristic before buying the product is cost of the product. These
two result state that quality of the product should be excellent and the cost of the product
should not be much higher than the competitor
cost
21%
Quality
29%
Brand name
16%
Product D
5%
Govt approls
3%
Service
7%
Warranty
19%
Which of the following
characteristics are considered
before buying any type of lighting
43. 36
8. Information about different brands before buying lighting is
obtained through
Frequency Percent Valid
Percent
Cumulative
Percent
Valid
Internet 94 29.8 29.8 29.8
Shopke
p
98 31.1 31.1 61.0
family 44 14.0 14.0 74.9
Electr 73 23.2 23.2 98.1
other 6 1.9 1.9 100.0
Total 315 100.0 100.0
Total 315 100.0
Interpretation: Information about the various products before buying the product is obtained
mainly through the shopkeeper. This makes the shopkeeper the key influencer. Also internet
is the key influencer in decision making process of the customer. Electrician also has
influence over the customer
Internet
30%
Shopkeeeper
31%
family
14%
Electrician
23%
other
2%
Information about different brands
before buying lighting is obtained
through
44. 37
9. Which of the following brand for LED lighting have you heard of
Frequenc
y
Percent Valid
Percent
Cumulative
Percent
Valid
Philips 163 32.2 32.2 32.2
Syska 145 28.7 28.7 60.9
Teknolit
e
30 5.9 5.9 66.8
Everead
y
92 18.2 18.2 85.0
Crompto
n
76 15.0 15.0 100.0
Total 506 100.0 100.0
Total 506 100.0
Philips
32%
Syska
29%
Teknolite
6%
Eveready
18%
Crompton
15%
Which of the following brand for LED
lighting have you heard of
45. 38
Interpretation: This was to identify the brand awareness related to Teknolite and other brand.
Only 6% of the sample had awareness about Teknolite. The major player in brand awareness
is Philips. Looking at the figure Teknolite have to spend much on branding of the product
within the customers
11. Which of the following brand do you currently use
Frequency Percent Valid Percent Cumulative
Percent
Philips 139 56.27 56.27 56.27
Syska 37 14.97 14.97 71.24
Teknolite 8 0.03 3.12 74.36
Eveready 22 0.09 9.41 83.77
Crompton 35 14.17 14.17 97.94
other 6 0.02 2.06 100.0
Total 247 100.0 100.0
Interpretation: Through the pie chart it is clearly seen that Philips is the market leader in
terms of lighting industry. The other brands such as Crompton, Eveready and Syska hold
approximately the same market share of approximately 10-15% each
Philips
56%Syska
15%
Teknolite
3%
Eveready
9%
Crompton
14%
other
3%
Which of the following brand do you
currently use
46. 39
12. How familiar are you with our brand (Teknolite)
Frequen
cy
Percent Valid
Percent
Cumulative
Percent
Vali
d
very 6 3.2 3.2 3.2
Moderately 22 11.8 11.8 15.1
Slightly 58 31.2 31.2 46.2
Not at all 98 52.1 52.7 98.9
Extremely 2 1.1 1.1 100.0
Total 186 100.0 100.0
Total 186 100.0
Interpretation: The result of this question states that 53% of the sample are not at all familiar
with the Teknolite brand.
very
3% Moderately
12%
Slightly
31%
Not at all
53%
Extremely
1%
How familiar are you with our brand
(Teknolite)
47. 40
13. Have you seen advertisement for our brand (Teknolite), if Yes
where have you seen it
Frequenc
y
Percent Valid
Percent
Cumulative
Percent
Valid
online 8 4.3 4.3 4.3
newspap
er
6 3.2 3.2 7.5
Public
tran
6 3.2 3.2 10.8
Not seen 166 89.2 89.2 100.0
Total 186 100.0 100.0
Total 186 100.0
Interpretation: This states that approximately 89% of the people have not seen advertising of
the brand. This shows that even though the company is spending on advertising the brands
visibility is not seen to the customers
5%3%3%
89%
Have you seen advertisement for
our brand (Teknolite), if 1 where
have you seen it
online newspaper Public tran Not seen
48. 41
14. Age group
Frequenc
y
Percent Valid
Percent
Cumulative
Percent
Valid
18-25 160 86.0 86.0 86.0
26-40 22 11.8 11.8 97.8
40+ 4 2.2 2.2 100.0
Total 186 100.0 100.0
Total 186 100.0
Interpretation: The respondents of the survey are mostly between the age group of 18-25
13. Gender
Frequency Percent Valid
Percent
Cumulative
Percent
Valid
Male 128 68.8 68.8 68.8
Female 58 31.2 31.2 100.0
Total 186 100.0 100.0
Total 186 100.0
18-25
86%
26-40
12%
40+
2%
Age group
49. 42
Interpretation: The gender of the respondents is 69% are male and 31% are female
14. Profession
Frequency Percent Valid
Percent
Cumulative
Percent
Valid
Student 132 71.0 71.0 71.0
Salaried 46 24.7 24.7 95.7
Business 8 4.3 4.3 100.0
Total 186 100.0 100.0
Total 186 100.0
Male
69%
Female
31%
Gender
50. 43
Interpretation: Out of the total respondents almost 71% are students and 25% are salaried
15. Monthly income
Frequenc
y
Percent Valid
Percent
Cumulative
Percent
Valid
>1.2laks 128 68.8 68.8 68.8
1.2-3laks 32 17.2 17.2 86.0
3-5laks 8 4.3 4.3 90.3
5+laks 18 9.7 9.7 100.0
Total 186 100.0 100.0
Total 186 100.0
Student
71%
Salaried
25%
Business
4%
Profession
51. 44
Interpretation: The monthly income of the respondents is less than 1.2 Lakhs for 69% and
17% have ranging between 1.2 to 3 lakhs
Hypothesis: 1. To study the impact of Internet used as source of collecting information on
different age group, we can consider the following null and alternate hypothesis.
H0: There is no significant impact of Internet on different age group
H1: There is a significant impact of Internet on different age group
12. Age group * No of online Crosstabulation
Nos used imternet Total
No internet Internet
12. Age
group
25
Count 84a 75b 159
Expected Count 78.6 80.4 159.0
40
Count 8a 19b 27
Expected Count 13.4 13.6 27.0
Total
Count 92 94 186
Expected Count 92.0 94.0 186.0
Each subscript letter denotes a subset of No of online categories whose column
proportions do not differ significantly from each other at the .05 level.
>1.2laks
69%
1.2-3laks
17%
3-5laks
4%
5+laks
10%
Monthly income
52. 45
Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Exact Sig. (2-
sided)
Exact Sig. (1-
sided)
Pearson Chi-Square 4.970a
1 .026
Continuity Correctionb
4.085 1 .043
Likelihood Ratio 5.103 1 .024
Fisher's Exact Test .036 .021
N of Valid Cases 186
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 13.35.
b. Computed only for a 2x2 table
Result: 1. Chi-square test was used to test whether Internet was used as a medium to find
information about Led lights by different age group
2. It was found that the significance value of .026 < 0.05, so the null hypothesis was rejected
3. Result of Chi Square test showed that Internet was not used as a medium to find
information about LED lights by different age group
Hypothesis: 2. To study the impact of Shopkeeper used as source of collecting information on
different age group, we can consider the following null and alternate hypothesis.
H0: There is no significant impact of Shopkeeper on different age group
H1: There is a significant impact of Shopkeeper on different age group
12. Age group * Shopkeeper Cross tabulation
Shopkeeper Total
Other
source
shopkeeper
12. Age
group
25
Count 76 84 160
Expected Count 75.7 84.3 160.0
40
Count 12 14 26
Expected Count 12.3 13.7 26.0
Total
Count 88 98 186
Expected Count 88.0 98.0 186.0
53. 46
Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Exact Sig. (2-
sided)
Exact Sig. (1-
sided)
Pearson Chi-Square .016a
1 .899
Continuity Correctionb
.000 1 1.000
Likelihood Ratio .016 1 .898
Fisher's Exact Test 1.000 .535
N of Valid Cases 186
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 12.30.
b. Computed only for a 2x2 table
Result: 1. Chi-square test was used to test whether Shopkeeper was used as a medium to
find information about Led lights by different age group
2. It was found that the significance value of .899 > 0.05, so the null hypothesis was accepted
3. Result of Chi Square test showed that Shopkeeper was used as a medium to find
information about LED lights by different age group
Hypothesis: 3. To study the impact of Electrician used as source of collecting information on
different age group, we can consider the following null and alternate hypothesis.
H0: There is no significant impact of Electricians on different age group
H1: There is a significant impact of Electricians on different age group
Age * Electrician Cross tabulation
Electrician Total
Electrician Non Electrician
Age
25
Count 60 100 160
Expected Count 63.7 96.3 160.0
40
Count 14 12 26
Expected Count 10.3 15.7 26.0
Total
Count 74 112 186
Expected Count 74.0 112.0 186.0
54. 47
Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Exact Sig. (2-
sided)
Exact Sig. (1-
sided)
Pearson Chi-Square 2.495a
1 .114
Continuity Correctionb
1.859 1 .173
Likelihood Ratio 2.442 1 .118
Fisher's Exact Test .133 .087
N of Valid Cases 186
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 10.34.
b. Computed only for a 2x2 table
Result: 1. Chi-square test was used to test whether Electrician was used as a medium to find
information about Led lights by different age group
2. It was found that the significance value of .114 > 0.05, so the null hypothesis was accepted
3. Result of Chi Square test showed that Electricians was used as a medium to find
information about LED lights by different age group
Hypothesis: 4. To study the impact of cost of product on different income group, we can
consider the following null and alternate hypothesis.
H0: There is no significant impact of cost of product on different income group
H1: There is a significant impact of cost of product on different income group
Cost * 15. Monthly income Cross tabulation
15. Monthly income Total
a) Less than
1.2 lakhs
b) Between
1.2-3 lakhs
c) Between 3-
5 lakhs
d) Above 5
lakhs
Cost
cost doesnt matters
Count 40 18 12 12 82
Expected Count 46.7 13.2 10.6 11.5 82.0
cost matters
Count 66 12 12 14 104
Expected Count 59.3 16.8 13.4 14.5 104.0
Total
Count 106 30 24 26 186
Expected Count 106.0 30.0 24.0 26.0 186.0
55. 48
Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Pearson Chi-Square 5.202a
3 .158
Likelihood Ratio 5.197 3 .158
N of Valid Cases 186
a. 0 cells (0.0%) have expected count less than 5. The minimum
expected count is 10.58.
Result: 1. Chi-square test was used to test whether cost of the product played a significant
role on different age group of people.
2. It was found that the significance value of .158 > 0.05, so the null hypothesis was accepted
3. Result of Chi Square test showed that cost did not play significant role in purchase
behavior of different income group.
Hypothesis: 5. To study the impact of monthly income on trying LED lighting, we can
consider the following null and alternate hypothesis.
H0: There is no significant impact of monthly income on buying behaviour regarding lighting
H1: There is a significant impact of monthly income on buying behaviour regarding lighting
Have you tried LED lighting * 15. Monthly income Crosstabulation
15. Monthly income Total
a) Less than
1.2 lakhs
b) Between
1.2-3 lakhs
c) Between 3-
5 lakhs
d) Above 5
lakhs
Have you tried
LED lighting
No
Count 22 10 6 6 44
Expected
Count
25.1 7.1 5.7 6.2 44.0
Yes
Count 84 20 18 20 142
Expected
Count
80.9 22.9 18.3 19.8 142.0
Total
Count 106 30 24 26 186
Expected
Count
106.0 30.0 24.0 26.0 186.0
56. 49
Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Pearson Chi-Square 2.079a
3 .556
Likelihood Ratio 1.975 3 .578
N of Valid Cases 186
a. 0 cells (0.0%) have expected count less than 5. The minimum
expected count is 5.68.
Result: 1. Chi-square test was used to test whether monthly income of consumer had impact
on decision making process to use LED lights
2. It was found that the significance value of .556 > 0.05, so the null hypothesis was accepted
3. Result of Chi Square test showed that there is no significant impact of monthly income on
buying behavior regarding lighting.
Have you tried LED lighting * Gender Crosstabulation
Gender Total
Female Male
Have you tried LED
lighting
No
Count 16 28 44
Expected Count 13.7 30.3 44.0
Yes
Count 42 100 142
Expected Count 44.3 97.7 142.0
Total
Count 58 128 186
Expected Count 58.0 128.0 186.0
Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Exact Sig. (2-
sided)
Exact Sig. (1-
sided)
Pearson Chi-Square .721a
1 .396
Continuity Correctionb
.439 1 .507
Likelihood Ratio .708 1 .400
Fisher's Exact Test .457 .252
N of Valid Cases 186
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 13.72.
57. 50
Research 2 based on retailer
Age of owner
Frequency Percent Valid Percent Cumulative Percent
Valid
25 7 7.1 7.1 7.1
26 1 1.0 1.0 8.1
30 14 14.1 14.1 22.2
35 12 12.1 12.1 34.3
40 20 20.2 20.2 54.5
45 23 23.2 23.2 77.8
50 17 17.2 17.2 94.9
55 1 1.0 1.0 96.0
60 4 4.0 4.0 100.0
Total 99 100.0 100.0
Total 99 100.0 100.0
Interpretation: Mainly the age group of the dealers is 45 and above and if seen this
shopkeeper show positive response for the products of the company
9%
14%
12%
20%
23%
17%
1% 4%
Age
25 30 35 40 45 50 55 60
58. 51
Experience in dealership?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 2 2.0 2.0 2.0
2 5 5.1 5.1 7.1
3 9 9.1 9.1 16.2
4 11 11.1 11.1 27.3
5 14 14.1 14.1 41.4
6 16 16.2 16.2 57.6
7 21 21.2 21.2 78.8
8 6 6.1 6.1 84.8
9 1 1.0 1.0 85.9
10 14 14.1 14.1 100.0
Total 99 100.0 100.0
Interpretation: 70% of the dealers have their stores in the area for more than 5 years. It can be
assumed that these shopkeepers have created good network of themselves within the
customers and may act as a major influencers in selling the products
2% 5%
9%
11%
14%
16%
22%
6%
1% 14%
Experience
1 2 3 4 5 6 7 8 9 10
59. 52
What do you feel about Quality of Bulb
Frequency Percent Valid Percent Cumulative Percent
Valid
2 3 3.0 3.0 3.0
3 28 28.3 28.3 31.3
4 63 63.6 63.6 94.9
5 5 5.1 5.1 100.0
Total 99 100.0 100.0
Interpretation: On the five point scale mainly the dealers have rated Teknolite product as
good quality in comparison with the other bulbs.
2
3%
3
28%
4
64%
5
5%
Quality
60. 53
Interpretation: Most of the dealers said the price of the bulbs was decent enough to attract the
customers
5%
36%
48%
4%
7%
Price
1 2 3 4 5
What do you feel about the Price of Teknolite Bulbs
Frequency Percent Valid Percent Cumulative Percent
Valid
1 5 5.1 5.1 5.1
2 36 36.4 36.4 41.4
3 47 47.5 47.5 88.9
4 4 4.0 4.0 92.9
5 7 7.1 7.1 100.0
Total 99 100.0 100.0
61. 54
Do you have influence over customers buying decision
Frequency Percent Valid Percent Cumulative Percent
Valid
1 46 46.5 46.5 46.5
2 53 53.5 53.5 100.0
Total 99 100.0 100.0
Do you have influence over customers buying decision
Frequency Percent Valid Percent Cumulative Percent
Valid
1 46 46.5 46.5 46.5
2 53 53.5 53.5 100.0
Total 99 100.0 100.0
Interpretation: Almost 54% of the dealers had influence on the customers and 46% didn’t had
influence on the customers
1
46%
2
54%
Inflence
62. 55
Response of that dealer
Frequency Percent Valid Percent Cumulative
Percent
Valid
1 6 6.1 6.1 6.1
2 27 27.3 27.3 33.3
3 27 27.3 27.3 60.6
4 32 32.3 32.3 92.9
5 7 7.1 7.1 100.0
Total 99 100.0 100.0
Interpretation: Almost most of the dealers were satisfied with the product and their response
to the product was good and more than 50% of the dealers agreed to give shelf space to the
product in their store.
1
6%
2
27%
3
27%
4
33%
5
7%
Respone
63. 56
Reduced Price impact
Frequency Percent Valid Percent Cumulative
Percent
Valid
1 5 5.1 5.1 5.1
2 31 31.3 31.3 36.4
3 55 55.6 55.6 91.9
4 8 8.1 8.1 100.0
Total 99 100.0 100.0
Interpretation: More than 70%of the dealers responded to the price reduction positively
1
5%
2
31%
3
56%
4
8%
Reduced price
64. 57
Interpretation: Even though the market share of Philips being the highest still it is not
the dominating player this shows that Philips sales is customer driven
Interpretation: It was seen during the survey that most of the dealers kept only some
specific brand. Mostly 3 or 4 brands were kept. In this Philips was almost the most
common brand seen.
Philips
40%
Surya
16%
Havells
11%
Syska
15%
Eveready
13%
Crompton
5%
Which other companies are you
dealing with?
Philips
28%
Surya
15%
Havells
9%
Eveready
13%
Crompton
7%
Wipro
3%
Syska
2%
Other
23%
Most preferred
65. 58
Interpretation: It is seen that although the profit margin provided Philips is less but
the business brought by the company is more and this is the major reason why its
called consumer driven
Major attribute in sales
As from the data it can be seen that price was the major influencer for a retailer to
purchase any product. This indicates that a retailer considers price to be the biggest factor
for him to purchase any product thus giving preference to cheaper products
54%
16%
19%
11%
Which company brings you max
business
Philips Surya Syska Eveready
70%
19%
7% 3% 1%
Sales
Price = 72
Brand = 20
Product
quality = 7
Warranty =
3
66. 59
Major reason for rejection
It could be seen that ‘stock full’ was the major reason for any retailer to reject the product.
That is the most common reason given by any retailer for not purchasing teknolite
products was that his stock his full with products of other companies and he doesn’t need
any more products as of now. Thus here it becomes important to ask him give a rough
idea on about how many days it normally takes for stock to get over and thus revisiting
the shop after those days get expired. Another major reason came out to be the high price
initially teknolite was priced even higher than major brands like Philips and Syska
26%
7%
18%
42%
7%Before reduction in price
price = 26 Quality = 7 Brand = 20
Stock full = 41 others = 7
67. 60
After reduction in price
This survey was carried out after it was recommended to the company to reduce the price
of the products by us after the first round of survey. As it can be seen here again ‘stock
full’ is the biggest reason for the rejection of the product. However rejection on the basis
of price has reduced substantially when compared to the earlier
7%
13%
20%
42%
18%
Price = 3 Quality = 6 Brand = 9
Stock full = 19 Others = 8
68. 61
Correlation Analysis
Sr No Analysis variables Correlation Coefficient Interpretation
1 Age VS Response 0.75 Positively and Highly
Correlated
2 Experience Vs Response 0.96 Positively and
Perfectly Correlated
3 Experience VS Influence 0.56 Positively and
Moderately Correlated
4 Experience VS
Response(Reduced Price)
0.80 Positively and Highly
Correlated
Interpretation: It is seen that the Experience and response are perfectly correlated. This shows
that if the experience of the dealer increases then the chances of better response of the dealer
also increases.
69. 62
Part B
CHAPTER 6 – Market Analysis
Work done on weekly basis
Understanding the company and it’s product
Developing an approach for CPD and meeting the retailers
Meeting the retailers and attempting to sell products
Feedback of the work given and new plans devised for the growth of
the division
Implementing new plans devised in the market
Feedbacks and recommendations given
Final implementation, analysis recommendation and
review
70. 63
Market study to understand dealers was undertaken for the following parts of Mumbai
Metropolitan region – Lohar Chawl, Chembur, Airoli, Ghansoli, Koparkhairne, Nerul,
Sanpada and Dombivli. Detailed analysis was performed to understand the behavior and
response of the dealer.
Analysis for Lohar Chawl
Lohar Chawl is known as the main market place for lighting in the city. Many big players
have their depots present in the market. Total lighting stores in the radius of 1Km present
were 100.
1. Majority of the stores were large size there were few medium size and small size
stores
2. Syska, Philips had their stores in the market so these products were not made
available at the stores in market
3. Also the majority of the stores kept local brand and Chinese products
4. Almost all the shopkeepers knew Teknolite and the quality of the product
5. Majority of the stores liked the open policy adopted by the company and appreciated
the move
6. No specific brand is leader in the market
7. Every brand has its depot in the market which guarantees delivery of the order within
an hr
8. The demand in this market is for panels and bulbs which are E27 and E14 Warm
White. Mainly these bulbs are not available in the market at the required time.
9. Also the deal that happens is on immediate basis so a full time sales executive to this
area is recommended.
10. The SMPS market is of small players mainly the price range is considered to be very
cheap.
11. Huge market opportunity to grow in this market
12. Mostly all the dealers have influence over the customers
13. The shops in the market are old and dealers have the experience of almost more than
10 years which shows they have a good network of customers and also have good
influence over the customers.
71. 64
Analysis for Ghansoli (Navi Mumbai)
1. The stores are mainly mid size and small size stores.
2. A HW and Electrical store was present for every sector or for every two sector.
3. The number of HW store increased near proximity of railway station.
4. Almost all dealers were positive regarding the product by looking at the quality.
5. Mainly Surya bulbs were seen at every store. It was very difficult to understand the
main reason behind it is the distributer present in the area have good relationship with
the dealers in the area as more credit period was offered and payment in installments
were accepted by the distributer.
6. Philips which is the major player was seen rarely over here in this area.
Residential sectors identified are
High Potential areas 7,8,10
Medium potential areas 1,3,4,5,6
Low potential areas 15,16,17,19
Highly potential area
The presence of DMart has affected the sale of LED bulbs in this area. Almost all the retailers
were reluctant in keeping LED products as these products were available at a very cheap
price in the Dmart stores.
Medium potential
Most preferred brand by dealers
Surya
50%
Philips
33%
Eveready
17%
Most preferred
72. 65
The most preferred brand in this market is Surya bulbs, it was found that the distributer of
Surya offered various facilities to the dealers such as higher credit period, payments in
installments, the credit period ranged from 30 to 45 days.
Most of the business
The 3 dealers whose business is brought by Surya are Gujju, Shreeji, Mukesh which all have
influence over customer. So if we consider mainly people are actually attracted towards brand
but these are those who are not loyal and can be converted. Eveready is also one of the player
here which is mainly known for the brighter light and also the cost of it is low even the price
of the Surya is low compared to Philips and is a also older brand. It is recommended to do
focus advertising on Quality and Price.
Lower potential
Surya is the major player here while Havells is the entry person. Players like Philips don’t
even exist because of price sensitive market. Mainly the dealers are the decision makers; here
the credit period offered to the dealers is too high. So to penetrate into this market distributer
should offer credit period of min 30 days also the payment should be obtained in installments.
Surya
50%
Philips
33%
Eveready
17%
Most sales
73. 66
Analysis for Koparkhairne (Navi Mumbai)
1. The stores are mainly big, mid size and small size stores, large number of stores were
found.
2. 2-3 HW and Electrical store was present for every sector or for every two sector
3. The number of HW store increased near proximity of the main road going to Vashi
4. Almost all dealers were reluctant regarding the product, even not interested to look
the quality of the products
5. The area mainly attracted consumers for brand such as Philips, Syska and some
Eveready.
6. The reason they were reluctant was that most of the people of the area preferred going
to Dmart
7. So 2-3 stores have stopped keeping LED bulbs
8. A visit of Dmart was made by me it was found that Dmart sold Crompton 7W bulbs at
Rs 99 and 9W at 126 similarly Philips 10W was priced 215
9. Also it was found that no brand has yet started selling LED tube lights at Dmart. This
is the opportunity to harness maximum gain and use Dmart brand equity to sell
Teknolite product.
Residential areas identified
High Potential 1,2,20
Medium Potential 3,4,18,19,14
High potential areas
Syska
60%
Surya
20%
Wipro
20%
Most Preferred
74. 67
The area can be targeted easily as very few brands have their presence in this area. Eveready
does have its existence; Syska is the most preferred brand in the market in this area because
of the brand name and also due to the less price than Philips. Philips has the strong hold in the
area due to brand loyalty of the customers
Medium Potential
Complete absence of other brands in this area mainly the brands present here are Philips and
Surya
Dealers prefer Surya but still Philips bulbs are mostly preferred by the consumers. Sector 14
stores do not keep LEDs because of Dmart store.
Also there is no influence over customers from dealers
Most of the dealers won’t keep LED lights
People are mainly stuck with the CFL
If branding is done in this area it has to be mainly related to the awareness about LED
lights and benefits of Led lights over the CFL lights
Philips
50%
Wipro
25%
Syska
25%
Most Sales
75. 68
Analysis of Sanpada
1. The stores are mainly big and mid size.
2. 2-3 HW and Electrical store was present for every sector or for every two sector
3. The number of HW store increased near proximity of APMC market
4. Almost all dealers were positive regarding the product by looking at the quality
5. The area mainly attracted consumers for brand such as Philips, Syska and some
Eveready.
6. Branding activities were suggested by the stores and later will consider for keeping
the brand
7. Palm beach area is where we can find most of our potential customers. Most of the
brands kept were Wipro and Philips. Branding activity is highly recommended in this
area.
Residential areas identified
High Potential 1,13,14,15,16,17,18
Medium Potential 5,11,23,6,5,3,7,4,8,10
High Potential
Havells
50%
Crompton
33%
Wipro
17%
Most Preferred
76. 69
Upcoming stores less than 5 yrs of dealer experience, as it is being developed recently.
Havells is the most preferred Supplier due to distributer relationship. Major contributor of the
sale is Syska and Crompton. Shops keep only one or two brand not more than that. Philips
was not seen in the market. All the dealers had influence over customer’s decision. New
schemes should be brought up by the company to attract dealers in these areas. Also the
owner of the shops has two shops nearby each other so if convinced about the product they
can give us more sales.
Medium Potential :
Crompton
40%
Philips
40%
Eveready
20%
Most Preferred
Havells
17%
Crompton
33%
Syska
33%
Philips
17%
Sales
77. 70
There is a presence of brand such as Crompton, havells, Eveready and Philips. Mostly
Crompton is present and most preferred choice of the dealers is Crompton as it cost very less
to the dealers. The major player here again is Philips. Main point here is that almost all the
dealers have influence over the customers but still most of the sales come from Philips.
Crompton
25%
Philips
75%
Most Sales
78. 71
Analysis of Airoli
1. The stores are mainly mid size and small size stores.
2. A HW and Electrical store was present for every sector or for every two sector
3. The number of HW store increased near proximity of railway station
4. Almost all dealers were positive regarding the product by looking at the quality
5. The area mainly attracted consumers for brand such as Philips, Syska and some
Eveready.
6. As Syska was the new company in this field it was found by dealers that ATL
branding activities play a important part in getting sales done of any product
7. Also the company’s distributer gave them credit period of a month.
High Potential Area 16,8,15
Medium Potential Area 4,5,19
Low potential Area 1,2,3
High Potential
Dealers are mainly from 5 years, they are not from past years, they do not have influence
over the customers, the ranking is Philips, Syska and Havells. There is high potential for
SMPS in this area.
Medium Potential
Syska
20%
Philips
60%
Eveready
20%
Most Preferred
79. 72
The ranking is as follows Philips, Eveready and Syska. They are preferred by the dealers and
can be seen that 2/3 stores visited in the area have their influence on the customers
(Mahendra elec & Poornima Elect) they have shown interest in our products.
Low Potential
Low potential market don’t have any specific brand presence. Mostly Chinese brand and cost
effective brand is seen. The market here is very price effective market. the response of the
dealers is good when lowered price is told. Advertising related to lowered price can be shown
in this area.
Philips
67%
Syska
16%
Eveready
17%
Most Sales
80. 73
Analysis of Nerul:
1. The stores are mainly mid size and small size stores.
2. A HW and Electrical store was present for every sector or for every two sector
3. The number of HW store increased near proximity of railway station
4. Almost all dealers were positive regarding the product by looking at the quality
5. The area mainly attracted consumers for brand such as Philips, Syska and some
Eveready.
6. As Syska was the new company in this field it was found by dealers that ATL
branding activities play a important part in getting sales done of any product
7. Also the company’s distributer gave them credit period of a month.
The profile of the dealers here is almost 8/9 has more dealer experience
Also the age of the dealers is high
Almost all the dealers have influence over the customers. Local branding such as BTL
activities play a important role in the market. Loyal customers doesn’t exist here
Syska
37%
Surya
25%Crompton
13%
Eveready
25%
Most Preferred
Philips
37%
Syska
37%
Crompton
13%
Surya
13%
Most sales
81. 74
Analysis of Dombivli
Medium Potential
16/18 dealers have dealership of 5+ years.
10/18 have influence major sales come from other brand than Philips
Low potential
7/11 dealers with the age of 5 and more
Eveready
6%
Syska
17%
Philips
53%
Wipro
12%
Crompton
6%
Surya
6%
Most sales
Halonics
37%
Eveready
18%
Philips
18%
Syska
18%
Surya
9%
Most Preferred
82. 75
Halonixs is present due to less price, E27 and E14 bulbs are mostly of Halonixs in these area.
There is a demand for E27 & E14 in the market.
Philips
46%
Halonics
18%
Eveready
18%
Surya
9% Syska
9%
Most Sales
83. 76
My contribution
1. Convinced 25 shops to display company boards – One of the major objectives of
the entire project was to convince the retailers to display the company’s board as
part of branding. It was noted that most of the shopkeepers had no place to display
any kind of boards as it was already taken by the competitors. Also the
shopkeepers were reluctant to keep the company boards as they were of the idea
that unless they don’t have teknolite’s products to sell they can’t put up their
board.
2. Came up with ‘free bulb’ strategy – As it was difficult convincing the shopkeepers
to put company’s board the management came up with the idea of giving them a
monthly commission of 500rs to display the board. However I recommended the
company to instead provide them with Bulbs as free. The retailers can use it to
display, have it personal use or even sell. The basic idea behind this
recommendation was if a retailer manages to sell those two bulbs to any customer
and if the customer likes the product he will come back to the same retailer to
purchase the same product again, at that time the retailer will have no other option
but to purchase the product from the company for the purpose of reselling. Also it
was seen that there was a drastic improvement in shopkeepers agreeing to keep the
boards after this strategy.
3. Sale of Rs 10000 – The major objective of the entire project was to increase the
sales of the company with respect to CPD. Therefore with respect to this objective
I achieved a sales figure of 10000rs. It mainly included sale of tube light and
bulbs
4. Final stages of convincing a retailer – Talks are in the final stages where I
managed to sell approximately 300 bulbs and 50 street lights to the particular
dealer in Dombivli. Also there is talk with Kites dealer in Koparkhairne where
there is requirement of 100 panel lights. If these deals go right then there is a
possibility of getting sales of more than 30000.
5. Five shops took sample pieces – If a retailer is reluctant to purchase any product it
becomes important to convince them to at least keep free samples for few days and
see the quality of the product. It is a difficult job as the shops are most of the times
filled with stock of different companies so there is no space or rather no need to
84. 77
get another set of free samples from some company mainly if the company is not
known to them
6. Shelf Space for tube lights at Dmart- It was seen that most of the retailers were
reluctant in keeping LED bulbs whose shops were near to Dmart. So a visit was
made by me into the store. It was found that the rate of the bulb was very low as
compared to retailed price but there was total absence of LED tube lights in the
store. This could be a good opportunity to make a move into this segment and be
the first mover to place tube lights in this store. The desk number of the person
who looks after the LED section shelf space was found by me.
85. 78
CHAPTER 7. CONCLUSION
It can be seen that LED sector is one of the fastest growing sector in India. Economies of
scale and government policies have caused decrease in the cost of raw materials being
imported. This has directly affected the cost of the LED lights the rates of lights are
constantly fluctuating and is on decrease on daily basis. Taking advantage of the situation
many big brands have started price war so as to eradicate the small players into the market.
Due to this reason many dealers have started to stock less. This has caused less availability of
on shelf products. So this means that the inventory cost for holding the goods have increased
for the company and also its distributers. If the retailer requires products in bulk then those
brand happens to get the deal that provides quicker delivery.
There is a high requirement in the market for E27 and E14 bulbs. It was seen through the
market that many big brands were not able to provide these bulbs as they had less stock
available for it. Many sales and promotion techniques are carried by various companies
which are same for all the regions, but as per the study the customer profile varies at various
places so localized marketing can be performed as per the customer profile in the area. TV
commercial plays a very important role in creating trust about the product within the
customers.
The dealers response increased as the experience in dealership increased. This was because
the dealers had good network of the customers and also had influence over the buying
decision made by the customer. Along with the quality of the product the service of the
distributer played a very important role as many dealers kept the product only because of the
goodwill of the distributer.
86. 79
CHAPTER 8. RECOMMENDATIONS
Price reduction – A buddle scheme for tube light was rolled out by the company
which provided 20+1 tube free of cost. As the brand was new the dealers were
reluctant in keeping the products so it was recommended that instead of giving free
tube light a price reduction can be made for the product. The tube which cost Rs 472
was reduced by Rs 25. The reduction in price could give a advantage to the brand as
the cost of it is low.
Electrician’s meet- It was found in the surveys that along with the shopkeeper’s
electricians are the major influencers. Electrician meet can be held to show various
products of the Teknolite so that they became aware of the quality of the brand and
can spread good word of mouth about the product. Also these Electricians have good
relationship with the shopkeepers. They could help sales team to convince the dealers
whom they find difficult to convert
OOH hoarding at Kalamboli toll Plaza- OOH hoarding is recommended at Kalamboli
toll plaza. A 6 min count survey was taken at Kalamboli toll plaza to check the traffic
flowing through the toll. A 6 min survey is one where vehicles are counted every 6
mins at the interval of two hours. Survey was taken during weekend and 2 working
days. In the resulth it was found that approximately 22 lakh vehicles (Cars and AC
buses ) passes through the toll plaza monthly. Almost all the customers are potential
customers of Teknolite and placing a horading of size 6096mm x 3048mm is
recommended at this place. Depending upon the response of hoarding at this place
more hoardings can be broadcasted at all toll plazas in the MMR area. Placing
advertisement at toll plaza will increase the chances of the hoarding getting visible by
the customers
Target Societies – Target all the societies in the city and convince the societies to use
our brand, Various schemes can be given such as buy back, payment in installment,
cash discount etc. As this will provide an opportunity to display the quality of the
product to the prospective customers
87. 80
Tekno ‘Light’ box- A box usually placed in the garden area of length = 4.5Ftand
width = 4Ft .The box will consist of a sofa along with panel lights and tube light of
the company to give the customers feeling about the quality of the product. Also the
along the surface of the box branding material of the company can be pasted.
Tv commercial Banners- It is seen that TVC play a very important role in creating
trust in people. It is advised to get banner space in various local news channels.
Providing stand display – It was seen that company was giving free sample to the
dealers so along with the bulbs a stand was to be send so that they can display the
bulbs to the customers
Shelf space at Dmart – It is seen that LED bulbs were present at the store. But LED
tube lights were not present at the store. So there was a gap present in terms of LED
tube lights. If we are possible to gain shelf space in Dmart, it would be possible to use
brand equity of the store for our product and Teknolite will be the first player to do so.
Penetrate into E27 and E14 segment – Focused marketing should be done in E27 and
E14 as no big players are still present in this brand and there is a descent demand for
this product in the market and many big players are not fullfil the demand of the
market
Apply for BEE Label – Bureau of Energy Efficiency has come up the star label for
LED bulbs which states the efficiency of the bulbs. No other brand has made a move
into this. So if Teknolite acquires this star labels it can prove a competitive advantage
to brand over other brands
Advertising on Private cab such as Meru, Tab
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Localized branding – Customer profile is different in different part of the city, so fully
fledged marketing cannot be used here. Differentiated marketing can be used target
this customers according to their profile
Branding through bags – A social activity that can be used to reduce the plastic waste.
An eco friendly bag can be given at the market places and ask the vendors to
distribute it among the customers so that brand visibility can be increased in terms of
customers.
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CHAPTER 09. REFERENCE
[1] Article by Binita Singh “Light of Opportunities” published in India know business and
economy on March 2015
[2] Study on LED demand aggregation by climate work foundation on October 2011
http://shaktifoundation.in/wp-content/uploads/2014/02/led%20final%20report.pdf
[3] Report by Mirova Responsible investing “2014-2020 a new era of LED lighting?” on
March 2014
http://www.mirova.com/Content/Documents/Mirova/publications/va/focus/MIROVA_Focus
_LED_EN.pdf
[4] Report by Mckinsey & Company “Lighting the way: Perspectives on global lighting
industry” on August 2012
https://www.mckinsey.de/files/Lighting_the_way_Perspectives_on_global_lighting_market_
2012.pdf
WEBSITES
1. https://en.wikipedia.org/wiki/Lighting
2. http://teknolite.in/
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CHAPTER 10. SAMPLE OF QUESTIONNAIRE
Questionnaire in consumer’s perspective
1. What type of lighting do you use
a) LED bulbs
b) CFL bulbs
c) LED tubelights
d) Neon tubelights
2. Have you tried LED lighting
a) Yes
b) No
3. How did you get familiar with LED lighting
Open ended
4. Electrical works at home are done by
a) Myself
b) Electrician
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c) Family member
d) Other (Kindly specify)
5. Which of the following characteristics are considered before buying any type of
lighting
a) Cost
b) Quality
c) Brand name
d) Product design
e) Government approvals
f) Warranty by the manufacturer
g) Service
6. Information about different brands before buying lighting is obtained through
a) Internet
b) Shopkeeper
c) Electrician
d) Family/ friends
e) Others please specify
7. Which of the following brand for LED lighting have you heard of
a) Philips
b) Syska LED
c) Teknolite
d) Eveready
e) Crompton Greaves
8. Which of the following brand do you currently use
a) Philips
b) Syska LED
c) Teknolite
d) Eveready
e) Crompton Greaves
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9. How familiar are you with our brand
a) Extremely familiar
b) Very familiar
c) Moderately familiar
d) Slightly familiar
e) Not at all familiar
10. Have you seen advertisement for our brand
a) Yes
b) No
11. Where have you seen advertisement for our brand(teknolite)
a) Online
b) Newspaper
c) Radio
d) Public transportation
e) Magazines
f) Others
Please specify your
12. Age group
a) Under 18
b) 18-25
c) 25-40
d) Above 40
13. Gender
a) Male
b) Female
14. Profession
a) Salaried
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b) Business
c) Student
15. Monthly income
a) Less than 1.2 lakhs
b) Between 1.2-3 lakhs
c) Between 3-5 lakhs
d) Above 5 lakhs
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CHAPTER 11. APPENDICES
List of tables
Sr. no Title Page no
1. Lighting industry in India 4
2. Price list of bulbs 23
3. Price list of tube lights 24
4. Price list of SMPS 24