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A Project Report On
Descriptive analysis of Speaker features
that influence the customers





2014














Submitted To:
Dr. D. Das
Prof. Monika Saxena

Submitted By:-
Daksh Rastogi
Gopal Singh
Punil Mahato
Vinay Singh
PGDM 13-15

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EXECUTIVE SUMMARY
The project report is based on the current market condition of Zebronics. What are the problem that
are the dealer of Zebronics product are facing? What are the specification of speaker that is demanded
by the customer? How the dealer came into this is business and what are their expectation from
company side? Before coming into this business what they used to do? The project is also based on to
create the business for the company by generating the lead for the company. To know that the current
stock dilution scheme that company is offering, are the dealer and distributor aware about that? To
know is the salesperson went to dealers shops time to time or in a week or month? To know that is the
sales-person giving him the product detail, product price and product demo properly? Also, know that
is the sales person is able to technical query of the dealer? What are the current sales scenario of
Zebronics?
The objective for the study are to identify the satisfaction level of Zebronics Dealers and Distributor
towards the company and competitor analysis for Zebronics speakers. To generate future channel
partner for Zebronics and to know about the expectations of dealer, distributor and customer.
For fulfilment of the study the dealer and distributor was approached with pre-defined questioner and
to also know about their background by asking question at personal level and basic observation of
their shops status. By doing this we find that Intex is the market leader in the area of IT peripherals
and Intex, F&D followed by Zebronics are the current leader in sale of speaker and subwoofer. The
reason for Zebronics being in no. 3 is because of the low brand awareness.
The company is not spending money in the brand visibility. Hardly any hoardings/glow sign board of
company and advertisement in newspaper is found. Therefore due to lack of brand awareness
customers were not convinced by the dealers, so they can purchased the product
The market is price competitive that is all the company are offering the same product at a very
minimum price difference. The local manufacturer of the speaker and other accessories are the threat
for their business because they are offering the product at a lower price. Most of the shop for IT in
Ghaziabad is In Shiva Tower and Ambedkar road so here the customer has the option for switching the
another dealer that is major problem that lead to him work at a very minimum level of margin.
The after sales service of company is only good on those location (Shiva Tower, Ambedkar road And
Maliwara Chowk) that are near to service center (In Nehru Nagar). In Vaisahali, Vasundhra,
Indrapuram and Rajnagar etc. the service is not good. The product quality of Zebronics is not up to the
mark as per the expectation of customer. Quality aspect since it stands at lower rank for quality
products compared to its competitors. Met with salesperson he also talked about the low brand
awareness in the IT peripherals market, when they talked to their upper management there is no
response.




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INDUSTRY PROFILE
IT Hardware Peripherals Industry is composed of diverse group of companies. It produces a wide
range of products for sale to just about all businesses and consumers. The industry trends to trail the
economic cycle, and is very competitive.
This industry markets a wide range of products and services, many of which are tied to mainframe and
server computers, personal computers, and storage devices. A number of offerings include gear to
connect this hardware, both within a company and between businesses, suppliers, customers, and
consumers. Keyboards and trackballs are other products, for example. In addition, some of the
hardware providers offer services, such as installing and managing a business information technology
operations, or hosting applications on an enterprises own computers that can be accessed by its
customers. Others in the industry are wholesale distributors of computer products and services.
This is a growth industry. Businesses and governments have long been computerizing more and more
of their work to increase competitiveness and efficiency. And, with the rise of the Internet, home
computers, used to stay connected with friends and business, have become a necessity. The market
should continue to grow. Businesses have to store and manage an increasing amount of data because
of regulatory requirements and competitive needs. Too, whereas in the past, the data stored was
primarily words and numbers, which take up relatively little storage space, now more capacity-hungry
audio and video material is being computerized and stored.
The competition among computer hardware companies is particularly intense. On the one hand, in the
traditional PC market, companies' products have largely become commodified, with constant
downward price pressure (and narrowing profit margins) being the result. On the other hand, there are
markets for innovative new products, like tablet PCs and ultra-minimal desktops that are not yet fully
commodified. Here, the race is on to develop products at breakneck speed so you can be first to
market. And if a company falters, it instantly becomes a target for larger companies looking to acquire
new businesses. No doubt about it: Computer hardware is a cutthroat business.

ECONOMIC GROWTH DURING LIBERALIZATION MEASURES:
Computers became common Business tools in the late 1950s. Firms were able to collect, store and
manipulate vast data to aid marketing decision makers. Marketing information system developed out
of these aspects. Marketers have been using electronic tools ever since. But the recent internet and
other developments in information technology have created sensational changes in the way a business
operates. Information Technology modes include electronic mail, corporate and public databases,
application systems, fax, video and computer conferencing. These act as driving forces for
globalization of business. Organizations are scrambling to determine how they can use information
technology profitably in furthering their business.
Market Liberalization has been embraced by developing countries around the world since the 1980s, in
the hope of achieving economic growth and development through participation in an increasingly
interconnected global economy. Developing countries that once feared economic dependency on the
industrialized world now fear left out of the dynamic process of economic globalization.
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IT Hardware is one of the most global of industry sectors, particularly since the ascendance of the
personal computer, whose horizontal industry structure has replaced the vertically-integrated structure
of the mainframe computer industry. While the mainframe industry was more nationally oriented, the
PC industry has been organized around a global production network, with particular countries mostly
in East Asia- specializing in activities such as PC assembly and production of components and
peripherals. Newcomers such as China, India, Mexico and several eastern European states have
liberalized their computer sectors in hopes of joining the global production network and gaining access
to technology and capital.
The emergence of the Internet has created new pressures for liberalization. The Internet represents a
global infrastructure that can be exploited by developing countries to connect with markets and
production networks around the world at a relatively low cost.
GROWTH OF ITS HARDWARE PERIPHERALS INDUSTRY DURING RECENT DECADE:
The impact of global recession on the computer hardware companies is left behind and they are back
on the progress track. It seems that the forecasts that were made before recession are going to turn
true. Different segments of the computer hardware industry are growing with improvement in their
design and functionality and rise in their demand.
Not only the big hardware manufacturers, but the small and medium sized enterprises too are making
big contributions towards the industry growth at a global level. Below you can find few sections that
analyze the growth of computer hardware industry segments in different countries.
In 2008, the global PC market generated the revenue of $203.7 billion that represented the compound
annual growth rate of 8 percent from 2004 to 2008. The PC market in China had total worth of $21.8
billion in 2008 representing the total compound annual growth rate of over 14 percent. The United
States PC market generated $50.6 billion in 2008 showing 3.8 percent compound annual growth rate.
An impressive growth of 42 percent was shown by the PC sales between October and December 2009
in the Indian market. The 52 percent of the desktops sold were contributed by the multinational
computer companies and 13 percent by the Indian hardware manufacturers. The remaining 35 percent
consisted of assembled desktops.
In China, the total revenue generated from the networking hardware was $4.8 billion in 2008. For the
same year, the network hardware growth in the United States was $23 billion. The total revenue for the
global network hardware market in 2008 was $112.8 billion. Also, the global storage hardware and
peripheral market recorded the revenue of $160.3 billion in 2008.
The Future Trends
Going by the latest growth rate, the global hardware market is expected to attain the worth of $537.3
billion by 2013. The computer hardware manufacturers have started following the concept of green
computer hardware manufacturing and this is further going to add to the profits of the computer
hardware companies. The small and medium sized hardware manufacturers from the developing
countries like India have a great future in the computer hardware components. They along with the
major players are going to take the computer hardware industry to a new level in the nearby future

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Company Profile
Top Notch Infrotonix Pvt Ltd.
Founded: 1997, Chennai, India.
Purchase & Marketing Director:-Mr. Rajesh Doshi,
Zebronics, a well-known established Indian IT brand today was started in 1997, in Chennai. The
company was known for quality computer chassis for initial few years. Today Zebronics is one of the
most reputed peripheral brands in the country. The ranges of product have been increased extensively
and not only in computer peripherals but also in end consumer life style products and communication.
Market of strategy and vertical focus
Zebronics think differently and evolve in new directions. Apart from expanding the reach of Zebronics
products, Zebronics now have a wide range of end consumer devices apart from peripherals. The
product range is very diverse now. Zebronics will be updating the existing product range regularly to
keep up with the changing technology, in the segments Chassis, Power supply UPS. Our main focus is
in the new product segments in which we have seen incredible growth like Speakers, Headphones,
Portable Media Players, TV Tuners, LED monitors, Laptop accessories, keyboards, mouse and more.
And to drive the growth further, Zebronics are also going to launch new products entering new
segment, its going to be exciting year.
Zebronics have very unique approach to marketing and we treat all the smaller zones as an
independent entity rather than treating the whole nation as one. This way we can cater the local
markets according to their needs and more efficiently. We launch schemes and offers customized to
these smaller zones, which helps the channel in a better way. We also give advertisements and press
releases regularly in media. We also send our products for review to various magazines and websites.
We also participate in various college fests and road shows which gives an opportunity to the
consumers to experience the products.
Channel strategy & Channel in India
Zebronics believe the channel partners are the wheels of our business which helps us move forward.
We customize the distribution model according to the region, such that its in interest of Zebronics as
well as all our channel partners. We have customized Distribution network across the nation according
to the market. There is no single distribution model for Zebronics in Indian market. All our partner
policies therefore are structured to optimize the business interests of the partners as well as Zebronics.
In spite of VFM factor, we make sure that the channel partners get a good margin for the efforts they
put in. In all of this, we will seek to, extend the hand of partnership with the channel community, and
look for their full hearted support as always we get.
How Zebronics is positioned in the market?
Zebronics have its own business model. We have products which are unique in the market. We try to
give the consumer best possible quality for given price point. The word value for money plays a key
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role when developing Zebronics products. We are also very careful about quality of our products. We
do lot of in-house testing before launching any product. To take care of our customers and channel we
have 70+ service centers across India and plans for many new service centers in b and c tier cities.
Even in marketing we have very unique local approach, rather than catering everyone as same. We
have a big loyal chain of channel partners and dealers as all are well taken care of by us.
Future plans and programmes in India?
Looking at the market now, its going to be a tough year, but its a good time to carefully expand the
product lines by bringing in innovative products. So though the tough time, the brands with required
blend of innovation, price and quality will lead. Right now we have strongest and one of the best range
of products we ever had, we have plans to expand in b and c tier cities rapidly. Its going to be a tough
year but z are sure of our success and staying Always Ahead.

Location
Ahmedabad
Chandigarh
Dehradun
Guwahati
Kolkata
Nagpur
Pune
Surat
Bangalore
Chennai (HO)
Delhi
Indore
Lucknow
Parwanoo
Raipur
Trivandrum
Bhubaneswar
Cochin
Ghaziabad
Jaipur
Ludhiana
Patna
Ranchi
Calicut
Coimbatore
Gurgaon
Jammu
Mumbai
Puducherry
Secunderabad
Products
Zebronics has become familiar for Excellence, Quality & Reliability throughout its large range of
peripherals, touching people's lives in one positive way or other.
We offer a product line which is often symbolized for their Value for money characteristics, backed by
great product designs & performance, incidentally covering nearly the entire PC Component spectrum.
Computer chassis
Add-on cards
Monitors
Headphones & mic
Power strips
Accessories
Servers
Networking products
UPS
Multimedia player
Gaming accessories
Wireless router
Power supply
Keyboards
Speakers
TV tuners
Laptop accessories
Motherboards
Mouse
Web camera
Portable media players
Tablet
Tablet accessories
Portable power charger




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Research Objective:-
Identify the most influencing feature in speaker that affect the customer purchasing decision.
ANALYSIS METHOD
First the qualitative data has been collected and then converted into quantitative form and then various
Excel and SPSS.

FACTOR ANALYSIS
Factor analysis is a general name denoting a class of procedures primarily used for data reduction and
summarization.
Factor analysis can be used in market segmentation for identifying the variables on which to
group the customers
New car buyers might be grouped based on relative emphasis they place on economy,
convenience, performance, comfort, and luxury, which might result in five segments: economy
seekers, convenience seekers, performance seekers, comfort seekers, and luxury seekers
In product research, factor analysis can be employed to determine the brand attributes that
influence consumer choice
To determine the importance of features for a subwoofer / home theatre speakers.
No dependent and independent concept made in factor analysis, so it is an interdependence
technique in which the entire set of interdependent relationships is examined
Factor analysis is used to identify the factors, that explains the correlations among a set of
variables i.e. expressed as linear combination of underlying factors
Amount of variance a variable shares with all other variables included in the analysis is
referred as communality
Co variation among variables is described in terms of a number of common factors plus a
unique factor for each variable
If the variables are standardized, the factor model is
1. Xi = Ai1F1 + Ai2F2 + + AimFm + ViUi
2. Xi = ith standardized variable
3. Aij = standardized regression coefficient of variable i on common factor j
4. F = common factor
5. Vi = standardized regression coefficient of variable i on unique factor i
6. Ui = the unique factor for variable i
7. m = number of common factors
Unique factors are uncorrelated with each other and with common factors themselves can be
expressed as a linear combinations of the variables Fi = Wi1X1 +Wi2X2 +. +WikXk
8. Fi = estimate of ith factor
9. Wi = weight or factor score coefficient
10. k = number of variables
To select weights or factor score coefficient explains the largest portion of total variance
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Then a second set of weights can be selected, so that it accounts for most of the residual variance,
subject to being uncorrelated with the first factor
Bartlett's test-of sphericity used to examine the hypothesis that the variables are uncorrelated in the
population Bartlett's test of sphericity can be used to test null hypothesis
that the variables are uncorrelated in the population .
Test of sphericity is based on chi-square transformation of the determinant of the correlation matrix
and the large value will favor the rejection of null hypothesis .If this hypothesis cannot be rejected,
then the appropriateness of factor analysis should be questioned.

Correlation matrix is a lower triangle matrix showing the simple correlations, r, between all possible
pairs of variables included in the analysis .Factor analysis to be appropriate, if variables are correlated.
Eigenvalue represents total variance explained by each factor.
Factor loadings are correlations between variables and factors.
Kaiser-Meyer-Olkin (KMO) test is an index used to examine the appropriateness of factor analysis,
i.e. high values (0.5 and1.0) indicate factor analysis is appropriate and small value indicates the
correlations between pairs of variables cannot be explained by other variables, so it may not be
appropriate.
Formulate the Problem
First, the objectives of factor analysis should be identified .Variables to be included in factor analysis
should be specified based on past research, theory and judgment of the researcher It is important that
the variables be appropriately measured on an interval or ratio scale. An appropriate sample size
should be used, roughly at least four times as many observations (sample size) as there are variables In
many marketing research situations, the sample size is small and this ratio is considerably lower, in
these cases, the results should be interpreted cautiously

OBJECTIVE-To determine the underlying, the importance of features for a subwoofer / home theatre
speakers. Sample of 70 respondents was interviewed.
The respondents were asked to indicate their degree of agreement with the following statements using
a 5-point scale (l = minimum, 5= maximum)

V1: It is important to have FM Radio in speakers
V2: It is important to have LED display in speakers
V3: It is important to have Touch screen panel in speakers
V4: It is important to have wireless connectivity in speakers
V5: It is important to have USB slot in speakers






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KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .555
Bartlett's Test of
Sphericity
Approx. Chi-Square 86.686
df 10
Sig. .000

The results of factor analysis as obtained by requesting principal component analysis in SPSS
software, is given in Table 9.
The null hypothesis, that the variables are uncorrelated in population is rejected by the
Bartletts test of sphericity.
The approximate chi-square statistic is 86.686 with 10 degrees of freedom, which is significant
at the 0.01 level.
The value of Kaiser-Meyer-Olkin statistic (0.555) is also large (>0.5). Thus factor analysis may
be considered as an appropriate technique for analyzing these data.


Total Variance Explained
Component
Initial Eigenvalues
Extraction Sums of Squared
Loadings
Rotation Sums of Squared
Loadings
Total
% of
Variance
Cumulativ
e % Total
% of
Variance
Cumulativ
e % Total
% of
Varianc
e
Cumulat
ive %
dimens
ion0
1 2.297 45.939 45.939 2.297 45.939 45.939 2.279 45.582 45.582
2 1.249 24.970 70.909 1.249 24.970 70.909 1.266 25.328 70.909
3 .711 14.215 85.124

4 .527 10.537 95.661

5 .217 4.339 100.000

Extraction Method: Principal Component Analysis.


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Communalities

Initial Extraction
FM Radio 1.000 .576
Led Display 1.000 .793
Touchscreen 1.000 .756
Wireless 1.000 .765
USBslot 1.000 .654
Extraction Method: Principal Component Analysis.

There is also a rule of thumb based on the computation of an Eigen value, to determine as to
how many factors to extract.
The higher the Eigen value of a factor, the higher is the amount of variance explained by the
factor.
Hence only factors with an Eigen value greater than 1.0 are included.
Factors with Eigen value less than 1 are no better than a single variable, because, due to
standardization, each variable has an Eigen value of 1.0.
From Table it can be observed that the two factors extracted together explain 70% percent of
the total variance (information contained in five original variables).
This is a very good bargain, because the analysis can now be reduced to just two out of fifteen
variables, without losing much of the information content.
It can be seen from the table that after the two factors extracted and retained, the communality
is 0.576 for variable V
1
, 0.793 for variable V
2
, and so on.
This means that 70% percent of the variance, i.e., information content of variable is being
captured by the two extracted factors together.
Whereas, variable V
1
exhibits a low communality value of 0.576.
This implies that only 57.6 percent of the variance in variable V
5
is captured by the extracted
factors.
Similarly the variable V
5
also has low communality value.
This may also partially explain as to why variable V
1
and V
15
are not considered in the final
interpretation of the factors.
It is possible that these variables are independent variables, which may not combine well with
other variables

Scree Plot: In the Table, we see that the eigenvalue greater than 1.0 (default option) results in
two factors being extracted. A priori knowledge tells us, Speakers is bought for two major
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Reasons. Scree plot associated with this analysis is given in Figure

From the scree plot, a distinct break occurs at three factors
From cumulative percentage of variance, first two factors account for 70.99 percent of the
variance and that the gain achieved in going to three factors is marginal
Furthermore, split-half reliability also indicates that two factors are appropriate

Rotating Factors is the factor matrix contains the coefficients used to express the
standardized variables in terms of the factors and these coefficients of the factor loadings,
represent the correlations between the factors and the variables. A coefficient with a large
absolute value indicates that the factor and the variable are closely related
Initial or unrotated factor matrix indicates the relationship between factors and individual
variables, it seldom results in factors that can be interpreted, because the factors are correlated
with many variables.










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Rotated Component Matrix
a


Component
1 2
FM .755 -.083
LED Display .888 -.070
Touch screen .799 .344
Wireless .338 .807
USB -.411 .697
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.

Component Matrix
a


Component
1 2
FM .737 -.181
LED Display .871 -.185
Touchscreen .837 .236
Wireless .440 .756
USB -.317 .744
Extraction Method: Principal Component Analysis.
a. 2 components extracted.

From rotated factor matrix, it can be observed that the variables V
1
, V2

and V
3
, have high
loading, i.e., 0.755, 0.888 and 0.799 respectively, under factor 1.
From the unrotated factor matrix as well, we can observe that the same variables have high
loading on factor 1.
This suggest that factor 1 is best explained as a combination of these three variables such as
FM radio, Led Display, Wireless.
Therefore, factor 1 represents the perception of respondents who wish to purchase speakers
should be like to have FM, Led display, Touchscreen.
Similarly, the variables V
4
, and V
5
have high loading, i.e., 0.807, and 0.697 respectively on
factor 2.
From the unrotated factor matrix as well, we can observe that the same variables have high
loading on factor 2.
This has the combination of two variables such as Wireless, USB slot.
Therefore, factor 2 represents the perception of respondents, who wish to purchase speakers,
can be termed as Trendsetter\tech savvy. The scores for these two factors are given below:
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Component Score Coefficient Matrix

Component
1 2
FM .337 -.102
LED Display .395 -.098
Touchscreen .336 .235
Wireless .111 .625
USB -.215 .573
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Factor 1 = 0.337V
1
+ 0.395V
2
+ 0.336V
3
+ 0.111V
4
- 0.215V
5

Factor 2 = -0.102V
1
-0.98V
2
+ 0.235V
3
+ 0.625V
4
+ 0.573V
5


In Factor 1 and Factor 2 .Let put the value of V
1
, V
2,
V3, V
4
and V5
Factor 1=76.4173+77.815+60.144+29.304-66.435 =177.2453
Factor 2= -23.358-19.306+42.065+165+177.057 =341.458

In above calculation we find that Factor 2(341.458) is more important as compared to Factor
1(177.2453)

Conclusion: - On the basis of factor analysis wireless speakers and USB slot are the two main
feature that influence the customers purchasing decision most. This type of customer are technology
lover whose purchasing decision influenced by the updating technology. So company need to more
focus on those feature while launching a new range of speaker.