Godrej is a leading Indian manufacturer of home appliances that has faced increased competition in recent years. This study examined factors influencing appliance purchases from both dealers' and consumers' perspectives in Ludhiana. It found that dealers prioritize customer choice and after-sales service when choosing brands. Consumers prefer brands like LG and Samsung due to higher brand awareness and loyalty. To improve sales, Godrej needs to strengthen brand awareness through more effective promotions, offer a wider variety of products, and enhance after-sales service to better compete with other brands.

1. Summer Training Project Title: Significant considerations in the purchase of Electronic Home Appliances Under Guidance of: Presented By: Ms ChitwanBhutaniReemaJaggi (Faculty- PCTE) MBA 2A

2. Company introduction Started in 1897 as a locks manufacturing company, the Godrej Group is today one of the most accomplished and diversified business houses in India. Godrej's success has been driven by the company's commitment to delivering innovation and excellence. In 1930, Godrej became the first company in the world to develop the technology to manufacture soap with vegetable oils; that spirit of innovation has continued throughout the organization's history.

3. Today Godrej is a leading manufacturer of goods and provider of services in a multitude of categories: home appliances, consumer durables, consumer products, industrial products, and agri products to name a few The group has more recently entered the real estate and information technology sectors, and management views these as avenues for enormous growth.

4. With annual sales in excess of $1 billion, a workforce of approximately 18,000, and a strong diversified portfolio, Godrej has proven its ability to deliver strong financial performance.

5. Godrej Group

6. Godrej and Boyce Manufacturing Co. Ltd

7. APPLIANCES (ISO 9001/14001) “INTERIO” FURNITURE (ISO 9001/14001; OHSAS 18001) LOCKS (ISO 9001/14001; OHSAS 18001) SECURITY SOLUTIONS (ISO 9001/14001; OHSAS18001) “PRIMA” VENDING AND AUDIO-VISUAL SOLUTIONS (ISO 9001)

8. STORAGE SOLUTIONS (ISO 9001) MATERIAL HANDLING (ISO 9001/14001; OHSAS 18001) INDUSTRIAL PRODUCTS (ISO 9001/14001) PROCESS EQUIPMENT (ISO 9001/14001; OHSAS 18001; ASME ‘U’, ‘U2’,‘U3’, ‘S’; NBBI ‘R’; AD Merkblatt ‘HP0’; Chinese ‘SELO’)

9. ELECTRICALS AND ELECTRONICS (ISO 9001/14001, OHSAS 18001) “LAWKIM” ELECTRIC MOTORS (ISO 9001/14001/17025, CMRI, UL) CONSTRUCTION AND REAL ESTATE (ISO 9001/14001; OHSAS 18001)

10. Products of the Appliance Division Refrigerators Direct cool Cold Gold Deluxe Pantacool V2 Pantacool Axis No.1 GDC 110 Edge Frost free EON Pantacool

11. Air conditioners Split AC Mirror star series Silver line series Pearl series Ivory series Window AC Navigator series Maxi miser series

12. Washing machines Fully automatic Semi automatic

13. Microwave ovens Steam Convection Grill/combination Solo

14. SWOT Analysis

15. Strength Good corporate image Experience in the line Qualitative products

16. Weakness Ineffective promotional tools Weak branding Inappropriate variants of products

17. Opportunities Innovation in the product line

18. Threat Competitors grab on the market Competitors expansion in the market at a faster pace

19. Chapter- 2 Ratio analysis

20. 1. CURRENT RATIO Current Ratio= Current Assets/ Current Liabilities Rule of thumb is 2:1

21. 2. Liquid Assets Ratio Liquid Assets Ratio = Liquid Assets/ Current Liabilities Rule of thumb is 1:1

22. 3. Absolute Liquid ratio Absolute Liquid Ratio = Absolute Liquid Assets/ Current Liabilities Rule of thumb is 0.5:1 or 1:1

23. General profitability ratios 1. Gross profit ratio Gross Profit Ratio = (Gross Profit/ Net Sales)*100

24. 2. Operating Profit ratio Operating Profit Ratio = (Operating Profit/ Net Sales)*100 Operating Profit =Net Sales- Operating costs

25. 3. Operating ratio Operating Ratio = (Operating Cost/ Net Sales)*100 Operating Cost = COGS+ Selling Expenses +General Expenses

26. 4. Net Profit Ratio Net Profit Ratio = Net Profit(after tax)/ Net Sales*100

27. Overall profitability ratios 1. Return on Shareholders’ Funds Return on shareholders funds= Net profit(after tax)/ Shareholders funds *100

28. 2. EPS EPS= Net profit(after tax)/ No. of Equity Shares

29. FIXED ASSETS TURNOVER RATIO Fixed assets turnover ratio=COGS/Fixed Assets

30. WORKING CAPITAL TURNOVER RATIO Working capital turnover ratio =COGS/Net working capital

31. Stock turnover ratio Stock turnover ratio= COGS/Average stock Stock conversion period=365/STR

32. Trend Analysis

34. Trend of Turnover

35. Trend of Net profit

36. Trend of EPS

37. Research Methodology

38. Need of Study Godrej is a big brand name but the emergence of other market players (LG, Samsung and the like) in the appliance industry, has set a big benchmark and has also affected Godrej’s market position adversely. The company has not been able to make a huge success in this segment despite its extensive promotional campaigns and vast experience in the field.

39. This study is aimed to provide the management with some knowledge about its status in market both in terms of sales and customer awareness. The research also aims to provide some ideas to improve the company’s present condition.

40. Title Significant considerations in the purchase of Electronic Home Appliances

41. Objectives under Study Consumer survey To identify the factors which have a bearing on customers’ purchase decision regarding appliances To understand the customers’ outlook towards Godrejappliances

42. Dealer Survey To evaluate the dealer’s motive behind dealing in a particular brand. To study the dealers’ views about Godrej appliances. To identify which appliances are more saleable and which are less saleable To identify reasons for low sales of the least saleable appliance To know the satisfaction level of dealers for Godrej. To know how Godrej can improve its present position.

43. Sources of Data – Primary and Secondary Research design – Descriptive Research instrument – Schedules Population –All appliance Dealers and consumers in Ludhiana Sampling unit – Any electronic appliance dealer and Any electronic appliance user in Ludhiana Sampling size – 25(dealers), 50(consumers) Sampling frame – list of appliance dealers and customers in Ludhiana

44. Sampling technique – Non probability convenience sampling

45. Limitations of study The scope of the research was wide enough but the research was limited to Ludhiana only. Not all the dealers and customers could be contacted due to the lack of time. The individuals being observed might behave in a different way when they know they are being observed and thus data collected may not be a true picture of the actual self. Generally, respondents were busy in their work and were not interested in responding correctly. While every effort was made to get the questionnaire filled personally, even then some elements of biasness might have crept in. Some respondents themselves were not clear about their likings and choices.

46. Data interpretation and analysis

47. 4.1: Experience of dealers Figure 4.1

48. 4.2: Brands represented by dealers Figure 4.2

49. 4.3: Products represented by dealers Figure 4.3

50. 4.4: Factors considered while dealing with a brand Table 4.4

51. 4.5 Factors which influence dealers to do more sales. Table 4.5

52. 4.6 Extra benefits given on bulk sale Table 4.6

53. 4.7 Dealership with Godrej appliances Figure 4.7

54. 4.8 Godrej Products dealt by dealers Figure 4.8

55. 4.9 Display of Godrej appliances Figure 4.9

56. 4.10 Rank of different Godrej products according to sales.(1- max sales, 4- least) Table 4.10

57. 4.11 Reasons for low sales of least saleable product Table 4.11

58. 4.12 Satisfaction with regards to company’s offered services Fig 4.12

59. 4.13 Table 4.13 Satisfaction of dealers with regard to Godrej’s promptness in launching new products. Table 4.13 Fig. 4.13

60. 4.14 Dealers’ satisfaction with regard to promotional tools Figure 4.14

61. 4.15 dealers’ views to continue their dealings with Godrej Figure 4.15

62. 4.16 Reasons why dealers quit/ never dealt with Godrej Table 4.16

63. 4.17 Dealers’ preference to deal with Godrej in future Figure 4.17

64. Consumer Survey 4.1(B): Monthly income of respondents

65. 4.2(B): No. of family members

66. 4.3(B): Factors influencing purchase decision

67. 4.4(B): Attributes considered before purchase(Refrigerator)

68. (Washing machine)

69. (AC)

70. (Microwave)

71. 4.5(B): Purchase of Godrej electronic appliances

72. 4.6(B): Godrej appliance used

73. 4.7(B): Awareness about Godrej appliances

74. 4.8(B): Duration of usage of Godrej products (Refrigerator)

75. (Washing Machine)

76. (AC)

77. (Microwave)

78. 4.9(B): Performance of Godrej appliance

79. 4.10(B) : Purchase of Godrej appliances in future

80. 4.11(B): Recommendation of Godrej appliances

81. 4.12(B): Other appliance brand used by respondents (Refrigerator)

82. (Washing machine)

83. (AC)

84. (Microwave)

85. 4.13(B): Display of Godrej appliances

86. 4.14(B): Awareness about Godrej appliances

87. 4.15(B): Preference for future purchase of Godrej appliances

88. Conclusion For dealers, customer choice is the most important factor. Consumers have a preference/loyalty towards particular brand of consumer durables and are not ready to buy any other brand so easily. Dealer relationship is one of the most considerations followed by the After Sales Services and Variety provided by the brand also plays a crucial role. Godrej though provides good services but it is not it is not in line with its competitors.

89. Customers’ decisions are influenced by their level of income and price of the product. The respondents who have used Godrej have a neutral response for it. LG and Samsung are presently the most preferred brands. Most of the respondents are well satisfied with the brands they are using and will not purchase Godrej appliances in future.

90. Suggestions As compared to competitors, Godrej appliances have a low brand image , so it should make efforts to popularize its brand name in market. This means creating more brand awareness amongst consumers which can be done through promotions. Since the customer demand is very low for Godrej , it mainly needs to improve on its promotional tools in both volume and frequency. It should offer large variety in its appliances. Godrej must focus on increasing its marketing expenditure and bring more personal approach in their communication.

91. Contd… Company should increase its dealer network in order to enhance the availability of product in market.It should also offer attractive schemes to the present dealers in order to retain them. Company can offer lucrative deals to the dealers eg. slab discounts, etc.so that more dealers are attracted to buy Godrej product and hence dealership network of Godrej can be enlarged. Also this will increase the availability of product in market., By offering good deals to dealers, Godrej can also increase its sales because dealers will encourage volume sales of Godrej to earn more profits for themselves.