ACKNOWLEDGEMENT

Completion of research and the writing of the report is a satisfying event and the pleasant parts are opportunity to thank those who inspired contributed and co-operated to it. First and foremost I would like to thank all the respondents who spent their precious time to answer the question .without their support this project would not have been successfully completed. I acknowledge the involvement interest and encouragement provided by my project guide Mr. Anil gokhale(Sr.executive)fan and appliances division madhaya pardesh who inspired me to take up such a comprehensive knowledge based project which has led me to learn a lot about consumer awareness and the distribution network followed up in the fan industry. I take the opportunity to offer my deep sense of gratitude and reference to Mr. Anil gokhle Crompton greaves and Mr. Navin(executive) for his beneficial cooperative help. I would like to express a deep sense of gratitude to each and every one who is directly or indirectly related to this project.

EXECUTIVE SUMMARY
This research study has been carried out to study and know the various distributions channel and challenges with in the Indore market for fan with reference to Crompton greaves limited .it was done to study fully the market condition of fan and then formulate the strategies in accordance to market study for CG limited. Here the entire fac tors which are going to affect Crompton greaves limited distribution channel are fully studied and then the strategies formulated to over come the problems which the company is going to face. The research conducted was of descriptive type and has been conducted among the users and the dealers of the various company operated currently in the market. The sample size was taken for the study was 60 and all the dealers of the various companies without any basis. Data collection done from the dealers distributor and retailers through questionnaire and interview them where as secondary data collected through trade journal and previous market report. The finding gave result that there exist a large market for the company to operate it and the right strategies are formulated.

PROJECT TITLE

OBJECTIVE:-TO STUDY ABOUT THE DISTRIBUTION CHANNEL OF CROMPTON GREAVES LIMITED, WHETHER THEIR DISTRIBUTION CHANNEL IS PAR WITH THE COMPETITOR OR NOT.

TABLE OF CONTENT: INDUSTRY SCENARIO INTRODUCTION ABOUT MAJOR PLAYERS INDUSTRY ANALYSIS ON THE BASIS OF PORTERS MODEL ORGANIZATION PROFILE PRODUCT PROFILE BODY OF DISSERTION DATA ANALYSIS AND THEIR INTRPRETATION STRATEGIC MARKETING SUGGESTION CONCLUSION REFRENCE

INDUSTRY SCENARIO
India is a tropical country and thus fans are necessary. Therefore the fan industry in India is well established and has grown significantly over the years. The fan market in India consists of ceiling fan (which have dominant share )table fans, pedestal fans, wall fans and exhaust fans and manufactures special purpose fans for industrial applications. The Indian market is estimated at 2.5 millions fans per month and it is growing at about 10% per annum. India has large number of manufacturing plants located across the country and producing would class fans. Intact the export of fans from India has doubled in the last few years and is a testimony to the quality and development of the Indian fan industry. The distribution of fans in India is also well developed with over 100000 selling points for fans across the country covering towns right up to the 5th population. The fan industry has taken significant steps to ensure consumer satisfaction and leading brands not only provide good quality but also back this up with good after sales service. Major producers and exports of the Indian fan industry are Bajaj electricals, orient fans, Crompton greaves, khaitan, havell etc among others.

MAJOR PLAYERS
BAJAJ ELECTRICALS Air...is propelled by our wide range of fans. Bajaj Electricals offer you the entire range of Fans - Ceiling, Table, Pedestal, Wall-mounting and Fresh Air fans. Each one of which is a perfect fusion of technology and aesthetics. Our newly introduced Bajaj Media range of Table, Pedestal and Wallmounting (PW) Fans with G. D. Media, the world's largest manufacturer of TPW Fans has created a sensation in the market, offering high standards of elegance and performance. Thus creating an exclusive niche in the TPW Fans segment. We've also set up an automated Ceiling fan manufacturing unit at Chaka in Maharashtra, in order to boost our production capacity, keeping in mind the growing demand for our product.

KHAITAN For decades, the khaitan name has been synonymous with quality fans in India, with 19 offices located across the country; we have established ourselves as the undisputed leader in air-management technology. The khaitan name is renowned for innovations as well which is reflected in the design of pioneering product concept such as fresh air fans, and models in the mini category. Now khaitan is diversifying even further, pumps, lights, home appliances, cables, wires and circuit breakers have been added to khaitans portfolio. Good quality, great performance and novelty in design are some of the assured features of any product from khaitan.

ORIENT What began as a small company in the pre-World War II era in Kolkata, stands today as a colossus among the electric fan manufacturers in India. Initially called the Calcutta Electrical Manufacturing Company Ltd., ORIENT FANS, as it is known today, was inducted into the family of the corporate major, the Birla Group, in 1954. Today, ORIENT FANS is part of the C.K.Birla Group of companies - an USD 900 million group that has powered many big businesses which, among several others, include Automobiles, Paper, Cement, Asbestos Sheets, Ball Bearings and Software and which has pioneered many large industrial ventures in India and abroad. Over the years, ORIENT FANS, from a humble beginning of managing a production capacity of a mere 15,000 fans every year, has relentlessly geared itself towards successfully pursuing an ever rising level of goals. This has resulted in ORIENT FANS managing a present production capacity of over 3 million units, which covers a wide range of Ceiling Fans, Desk Fans, Wall-Mounted Fans, Pedestal Fans, Exhaust Fans and Multi-Utility Fans, thereby becoming a dominant force in the Indian fan industry.

HAVELLS Havells entered fan business in mid-2003 and has emerged as one of the fastest growing fan brand in the Indian market.Havells has captured the customers fan with innovative designs and excellent finishes. From premium fans in exquisite antique finishes to fan specially designed for kids to dual color fans and super speed fans.Havells offers complete range to meet varied individual needs like ceiling fans ,table fans ,wall mounting fans, pedestal fans, air circulator fans, ventilating fans etc.

PORTERS MODEL FOR THE INDUSTRIAL ANALYSIS

1) POWER OF BUYERS :-( HIGH) because fan is the second most wanted consumer durable item in
India. And India is a tropical country and thus fan are necessary, so we can say that the power of buyer is high.

2) POWER OF SUPPLIER :-( LOW) because the raw material for manufacturing of fan may be metal. Company can get metal from any where so that it reduces the power of suppliers. The bulk purchase also reduces the power of suppliers.

3) THREATS OF ENTRANTS:- (LOW)because it is very tough to enter in fan industry because it require a great amount of financial investment and one another important thing is that the brand image of other players also create the barriers for new players. These types of business are specially based on the relationship and relationship building takes times so it again a barrier for the new entrants.

4)DEGREE OF RIVALRY:-(HIGH)The degree of rivalry is very high, because there are many strong players exist in the market like Bajaj, Crompton greaves, orient etc so the competition between existing players are very high and every body want to compete with their competitors.

5) THREAT OF SUBSTITUTE:- (AVERAGE) because there are few substitute of fan like coolers, air condition and hand fan so we can say that threat of substitute is average.

ORGANIZATION PROFILE
For the last seventy years, Crompton Greaves (CG) has become synonymous with electricity in India. In fact, the first unit of electricity was generated on a "Crompton Dynamo" at Calcutta in 1899. A pioneering leader since 1937 in the management and application of electrical energy, Crompton Greaves, today, is India's largest private sector enterprise, extensively engaged in designing, manufacturing and marketing high technology electrical products and services related to power generation, transmission, distribution as well as executing turnkey projects. The company is customer centric in its focus and it is the single largest source for a wide variety of electrical equipments and products. Further, the company is emerging as a first choice global supplier for high quality electrical equipments. HISTORY:- The history of Crompton Greaves goes back to 1878 when Col. R.E.B. Crompton founded R.E.B.Crompton & Company. The company merged with F.A Parkinson in the year 1927 to form Crompton Parkinson Ltd., (CPL). Greaves Cotton and Co (GCC) was appointed as their concessionaire in India. In 1937, CPL established, it's wholly owned Indian subsidiary viz. Crompton Parkinson Works Ltd., in Bombay, along with a sales organization, Greaves Cotton & Crompton Parkinson Ltd., in collaboration with GCC. In the year 1947, with the dawn of Indian independence, the company was taken over by Lala Karamchand Thapar, an eminent Indian industrialist. Crompton Greaves is headquartered in a self-owned landmark building at Worli, Mumbai. PRODUCT AND SERVICES OFFERED:The company is organized into three business groups viz. Power Systems, Industrial Systems, Consumer Products. Nearly, two-thirds of it's turnover accrues from products lines in which it enjoys a leadership position. Presently, the company is offering wide range of products such as power & industrial transformers, HT circuit breakers, LT & HT motors, DC motors, traction motors, alternators/ generators, railway signaling equipments, lighting products, fans, pumps and public switching, transmission and access products. In addition to offering broad range of products, the company undertakes turnkey projects from concept to commissioning. Apart from this, CG exports it's products to more than 60 countries worldwide, which includes the emerging South-East Asian and Latin American markets. Thus, the company addresses all the segments of the power industry from complex industrial solutions to basic household requirements. The fans and lighting businesses acquired "Superbrand" status in January 2004. It is a unique recognition amongst the country's 134 selected brands by "Superbrands", UK

ACQUISITION-NOW CROMPTON GREAVES LTD AN INDIAN MNC:Crompton Greaves has completed the acquisition of the Belgium-based Pauwels on 13th May 2005. The group has manufacturing facilities in Belgium, Ireland, Canada, USA and Indonesia and well spread distribution network across the globe. The acquisition catapults the company amongst top ten transformer manufacturers in the world. It has truly transformed into an Indian MNC making a longcherished dream Finally come true. Apart from strengthening it's foothold in the Indian market, Crompton Greaves acquisition of the Pauwels Group and it's transformer manufacturing facilities in five countries is expected to provide a significant impetus to the company's international presence. The additional turnover of approximately Rs.1,380 crore of Pauwels Group for it's last financial year is expected to increase Crompton Greaves' International business to around 50% of it's turnover, making the company a force to reckon with, in the international market. Ganz Acquisition Crompton Greaves have also successfully acquired Hungarian based Ganz (GTV), engaged in the manufacture of EHV Transformers, Switchgear, Gas Insulated Switchgear (GIS), Rotating Machines and Contracting businesses and Transverticum Kft (TV), engaged in the supporting areas of design, erection, commissioning and commercial activities on 17th October, 2006;TV being a subsidiary of GTV. The acquisition of Microsol Holdings Limited (MHL) and its associate companies in May 2007 is yet another significant stride in CG's journey towards positioning itself as a Global T&D Solutions Provider. MHL, based in Ireland with facilities in UK and USA, is engaged in the business of providing sub-station and distribution automation for the utility industry including MV and HV sub-stations, new sub-stations and retrofitting solutions for existing sub-stations. The acquisition reinforces CG's ability to design, build and service world-class sub-stations, with state-of-the-art automation & high-end engineering. MANUFACTIRING MARKETING AND SERVICE NETWORK:CG's business operations consist of 22 manufacturing divisions spread across in Gujarat, Maharashtra, Goa, Madhya Pradesh and Karnataka, supported by well knitted marketing and service network through 14 branches in various states under overall management of four regional sales offices located in Delhi, Kolkata, Mumbai and Chennai. The company has a large customer base, which includes State Electricity Boards, Government bodies and large companies in private and public sectors. FUTURE OUTLOOK:The quality of households is enhanced when their money is invested into products such as fans and lighting for basic comforts. Their lives are literally touched by delight. Similarly, Crompton helps electricity boards and other utilities to reach electricity to the last home and factory. Therefore, every individual in India who uses electricity can be considered as Crompton customer. Hence, the company continues to further and consolidate the initiatives that Colonel Crompton set into motion by focusing on

meeting increasing customer demands for products that are eco-friendly, energy efficient and with intelligent monitoring and control systems. All economic indicators point towards the manufacturing sector being the future driver of India's economic growth. India is today preferred destination for sourcing various engineering goods not only due to low cost but also due to high quality of products. Although, the climate for the manufacturing sector is bright, the concern is the threat of imminent competition from global players who are already in the process of setting up manufacturing facilities in India. The market is expected to remain competition with an added element of competition from imported products. However, several measures that the company has already taken and its plans for the future, together with business impact of the Pauwels acquisition, will equip the company to respond in adequate measure to this competitive pressure

CROMPTON GREAVES FAN DIVISION PROFILE:The Fans Division of Crompton Greaves is the market leader in India and has been so for over a decade. It's dominance of the market is comprehensive and it manufactures fans for all sections of the market and for all applications of air delivery- be it domestic or industrial. In the international market, the company is one of the leading exporters to countries like USA, Italy, S. Africa, Ghana, Fiji, Singapore, Bahrain, UAE, Sri Lanka, UK, France, Oman, Sudan, etc We have our manufacturing units located at Bethora and Kundaim in the scenic beauty of the state of Goa, and Baddi in the state of Himachal Pradesh.

CGL fan division has a number of firsts to its credit to feel proud about: 1. 2. 3. 4. 5. 6. First company to introduce an under light ceiling fan. -- year 1985 First company to introduce four blades deco fans. -- year 1985 First company to manufacture one million units under single roof in India. -- year 1989 First to introduce mini pedestal fans---year 1992 First fan manufacturing company to introduce fans to suit all pockets in all varieties First company to introduce 12 inch wall fan in high speed

Truly, CGL is the largest fan manufacturing firm in the country, continuously striving for customer satisfaction and delight. We are in the business of manufacturing, sourcing and marketing of complete range of fans and home appliances in the Indian market at large and expanding in the future into worldwide opportunities. We are market leaders in the fan business. This leadership manifests itself in terms of :the widest and the deepest network. A wide range of products and growing into every conceivable segment.( a fan to suit every consumer pocket) . We are clearly the no.1 fan manufacturing company in India and we have left our competitors far behind. our market share in terms of production in quantity is the highest at 24 %. Showcasing the most advanced designs and technology available, Crompton proudly unveils its exclusive collection of designer ceiling fans. Each ceiling fan is a masterpiece in design incorporating super craftsmanship, comfort, convenience and ease of care. Crompton Greaves ceiling fans are the perfect compliment for your most exclusive creations. A collection of fans which are especially designed for your total comfort & luxurious attitude in mind. Decorative fans can be categorized into two ranges:1. Decorative Fan range with 3 or 4 blades:- exclusive designer range. 2. Non Decorative range:- focuses more on need for longer life & superior performance.

Crompton Greaves brings to you affordable fans that give a long lasting performance at low voltages. The range includes Economy Range and Medium base range fans. Non Decorative fans, ideally suitable for interiors where the preference is for a simple fan with a elegant look, amalgamating well with the background, at the same time giving high air delivery & superior performance. Key Points:

1) Aerodynamically designed & precisely balanced aluminum blades.

2) Energy efficient aluminum pressure die cast motor for reliability. 3) Power coated finish. 4)Double ball bearing(zz) for silent operation Non decorative fans can be categorized into:A)Base model B)Economy model

CROMPTON GREAVES LIMITED ORGANIZATION STRUCTURE

Crompton Greaves is part of the Avantha Group. With a turnover, over Rs. 4200 crores, the company is India's largest private sector enterprise in the business of electrical engineering. The wide range of products that the company offers is canalized through its four business units- These are Power Systems, Industrial Systems, Consumer Products and Telecom Products.

Board of Directors Key Personnel Corporate Regional Management Power Systems Industrial Systems Consumer Products International

Key Personnel >> Corporate

1)

Managing Director Chief Finance Officer - Finance & Admin. Company Secretary & Legal Vice President - Human Resources Counsel

Key Personnel >> Regional Management REGION NORTH DESIGNATION General Manager LOCATION Delhi

EAST WEST SOUTH

General Manager General Manager General Manager

Kolkatta Mumbai Chennai

Key Personnel >> Power Systems DESIGNATION DEPARTMENT

Vice President Head of Business of CG-Power for Asia region covering CG-Power (Asia) Transformers, Switchgear including GIS & Engg. Projects.

PROBLEM DEFINITION\OBJECTIVES OF THE STUDY:-

PRIMARY OBJECTIVE:-

1)To study about the distribution channel of Crompton greaves in Indore, whether Their distribution channel is par with the competitor or not.

SECONDARY OBJECTIVE:1) To study about the market whether the Crompton greaves product is accepted by market or not. 2) To study about marketing strategy of Crompton greaves.

BODY OF THE DISSERTATION

RESEARCH METHODOLOGY:The methodology, which has been used for the project, was Descriptive Research. When ever we have To study about distribution channel descriptive research has been done. On the basis of result of the Descriptive research organization can take some advance decision. The established objective was kept In the mind during the study. I also analyzed the attitude of the respondent towards the product of Crompton greaves in market. MEASUREMENT TECHNIQUES:A structured questionnaire was administered for the purpose of obtaining information from the Respondents. Care was taken to put the question related to subject. The questionnaire contains Twelve simple questions. For the purpose of the study I went to dealers,distributors,and retailers. I discussed them about Distribution channel of Crompton greaves as well as their competitors. On the basis of that they Field the questionnaire. Sample Size:-60 Sampling Technique:-Judgment sampling Contact method:- Personal interview

DATA ANALYSIS AND INTERPRETATION Q-1) Which of the following brands of fans are available in your shop? a)Crompton greaves b)Bajaj c)Havells d)khaitan e)All Ans:Crompton greaves Bajaj Havells 25 24 14

Khaitan 22 All 15 Based on the above question,it is observed that , the sellers are well aware of the name of CG(fans)

Q-2) Out of the following brands which one customer prefer? (please rate on a scale of 1(most preferred)to 4(least preferred) ) Ans:Brand Rating Bajaj 24 Crompton greaves 20 Havell 8 Khaitan 8 Based on the above question,it is observed that.even after getting the title of super brand,the fans of CG are lagging behind the bajaj ones by 7 %..

Q-3)Could you please tell me the reason behind the customer choice?(Please rate on a scale of 1 (most preferred reason) to 6(least preferred reason) Ans:Parameters Product performance Product price Product service Availability Advertisement Sales promotion Rating 20 15 15 5 3 2

Based on the above question,it is observed that the product performance is a very important factor and based on the same a customer makes a purchase.

Q-4) Which company provides Value for money from customer point of view? (please rate on the scale of 1(best) to 4(least) ) Ans:Company Rating Crompton greaves 15 Bajaj 25 Havell 10 Khaitan 10 Based on the above question,it is observed that according to customer,after completing its 70 years in the market,CG is still lagging behind bajaj by 17%.

Company

Percentage of consideration of value for money 25.0% 41.7% 16.7% 16.7%

Crompton greaves Bajaj Havell Khaitan Total

Q-5) which is the largest selling fan category? a) Luxury fan b) Decorative premium fan c) economic ceiling fan d) Table fan e) Pedestal fan Ans:Luxury fan 3 Decorative premium fan 15 Economic ceiling fan 25 Table fan 8 Pedestal fan 9 Based on the above question, it is observed that economic ceiling fan is the largest selling fans category then decorative, then pedestal then table and luxury fans acquire the least sale.

Q-6) Which price range of fan has the highest sell? (Sale in each category) Ans:Category 900-1100 1100-1600 1600-2000 More than 200 Luxury fan 5 Decorative 15 premium fan Economic ceiling 30 fan Table fan 5 Pedestal fan 5 Based on the above question, it is observed that presently people prefer the economic ceiling fans the most.

Category Luxury fan Decorative premium fan Economic ceiling fan Table fan Pedestal fan

9001100

11001600

16002000

More than 200 5

15 30 5 5

Q-7) Will you please tell me about the average monthly sales of fan? Ans:Name of the company No of fans Response Crompton greaves 200-250 22 Bj 250-300 25 Havell 50 8 Khaitan 100 5 Based on the above question, it is observed that CG still lag Bajaj by 50 fans/month.

Q-8) at what duration do companys representatives visit your shop? Ans:Name of the company Crompton greaves Bajaj

Daily

Twice in a week

Once in a week 30 20

Once in 15 days

Once in a month

Based on the above question it is observed that,CG representatives visit the dealers more often than those of the Bajaj ones.

Q-9) what is the average time duration in between your order and the product delivery?

Ans:Name of the company

Crompton greaves Bajaj 50 10 Havells 50 10 Khaitan 50 10 Based on the above question it is observed that, all companies deliver their product as per the scheduled time.

Always as per delivery schedule 50

Within 24 hours of specified time

Within 48 hours of specified time 10

With in 7 days

Never as per delivery schedule

Q-10) how would you rate the firm regarding flexibility of payment term? Ans:Name of the Excellent Good Average

Poor

company Crompton greaves 40 10 10 Bajaj 40 20 havell 30 20 10 khaitan 40 20 Based on the above question it is observed that, the flexibility of payment term of Bajaj & khaitan are best, then comes CG and at last is havells.

Q-11) Are you satisfied with the following services provided by the company?

Ans:Parameters Pricing policy After sale service Incentive or benefit Advertisement policy Promotional activities Product design and finishing Stock replenishment Sales person behavior Sale support

Excellent 15

Good 10 20 30 15 30

Average 30 10 20 40 20

poor 20 15 10 5 10

10

50 50 10

30

30 30 20 10

based on the above question it is observed that, sales person behaviors is excellent, after sale service, incentive or benefit, promotional activities, product design and finishing, stock replenishment and sale support are good, pricing policy & advertisement policy are average.

Satisfaction of the number of dealer in each parameter

Pr ici

10

20

30

40

50

60

P aram eters vs satisfactio n o f th e dealer

Ke y pa ra m e te rs

Af ng te r s po l In ce ale icy Ad ntiv ser v ve e o ice r r Pr tise ben Pr e od om me n t fit ot uc t d ion po lic a es ig n l ac y St an tivit ies oc d k r fin Sa les eple ishin pe nish g rs on men be t Sa ha v le ior su pp or t

poor

G ood

A verage

E x c ellent

-12) Please provides your valuable suggestions so that we can improve our service? Ans:Suggestion No as such 20 40 based on the above question it is observed that,most of the people are satisfied with CG.

STRATEGIC MARKETING:-

THE MARKET SCENARIO PRE-2000 Electric Fans is a high market penetration product category and is very high in terms of purchase priority amongst durables. It is a matured product category with a stagnant growth rate during the period 1990-2002. The domestic market size of fans in India is around 20 Million units. The share of the organized sector stands at 45 per cent and of the unorganized sector at 55 per cent. The figures were exactly the opposite in the early Nineties. Low technology manufacturing process, quality norms, lower overheads and tax evasion methods have enabled the un-organized sector to gain larger share of the market by ensuring a significant price difference. The local/unorganized brands are quite appealing to a large section of the price-conscious Indian consumers, for their lower price points. The organized sector is dominated by national brands that have built their brand image over a period of time, through sustained advertising and a good dealer network. The market size in value terms of the fans category is quite large at around Rs.1500 Crores and it is the largest selling item in the brown goods category. Bajaj had a basic presence in the Fans Business since the Fifties and was a respected household name in the country. It had the potential to achieve a stronger presence in the Fans market and become a leading player in the category. What was required was to get the marketing, sales and the organization act right. There are 6 major brands in the organized sector namely: Crompton, Orient, Polar, Khaitan, Usha and Bajaj. All large players in the industry have their own manufacturing facilities, which are helping them in reaping the benefits of economies of scale. Intense competition in the market has transformed the fan industry into a high-volume, low-margin business. To remain profitable and competitive, it becomes imperative to have high-volumes and a reasonable market-share, to enjoy the related economies of scale. With liberalization of imports, low cost world-class manufacturers of Table, Pedestal and Wall fans from China offer an active threat to Indian manufacturers. Market Segmentation The fans market is segmented based on price, quality and aesthetics. The Fan industry has the following Product based segmentation and shares: Ceiling Fans - 70 per cent Table/ Wall / Pedestal (TPW) Fans - 20 per cent Fresh air Fans - 10 per cent CROMPTON FANS - BEFORE APRIL 2000:Crompton greaves part of the thapar group was incorporated in 1937.it is one of the largest players in India in the electric fan. The company is mainly engaged in manufacturing, distribution and sale of electric fan. The company makes a wide range of fan from economic to premium and luxury. The total market share of Crompton greaves in fan division is only 25% total of organized sector. The channel used by Crompton greaves to market the fans was an Indirect Distribution Model thanks largely to the legacy of the Appliances business of Crompton greaves , which is still based on an Indirect Distribution model: Company Distributor Retailer Consumer The consumer perception of Crompton greaves brand in the Electrical trade has been good overall. However, the brands presence in the fans category in the minds of the consumer was missing. As a result the brand was not included in the consideration set of the consumers for fans purchase.

Crompton greaves also has a very strong all India logistics and a strong after sales service infrastructure. BROAD MARKETING DIRECTION The Marketing Vision To make Crompton greaves Fans a leading player in the fans market in India, by understanding and effectively meeting the consumers stated and unstated needs, so as to achieve a sustained competitive advantage, while pursuing the path of profitable growth for the Fans BU and its brands.

Crompton greaves Fans - The Competitive Stance 1. Increase the width of the product line and launch new categories / products Move towards a direct distribution system. Benchmark the market leaders network reach and expand the retail network aggressively 2. Price the products competitively with a higher deliverable value. Create a unique positioning by capitalizing on a core category benefit, hitherto not appropriated by any other competitor. 3. Use the power of the large organizational infrastructure, good brand equity and resources to take on major players head on and invest to grow the business. The Product - Market Segmentation Crompton greaves Fans was earlier focusing only on the economic segment of ceiling fans and was a niche player in the market. To have a dominating position in the fans market based on the strengths that company had in terms of brand, infrastructure, management capabilities and understanding of the fans market, the company decided to target most of the segments in the fan market by following a micro-segmentation strategy. The Company believed that the Right Product at the Right Price Point for the Right Target Consumer was the Right approach to creating the Right Competitive Advantage. THE BRAND POSITIONING Brand Architecture of Crompton greaves Fan Although Crompton greaves Fans decided to target nearly all the segments in the fans market, it is imperative to have a differentiation and concentrate on a set of customers in each segment, which will value the core benefit, which shall be offered by the Crompton greaves brand in each segment. Existence of the product segments such as TPW and Fresh air fans is largely necessitated by the desire to meet the customer needs in a price segment with a different product line i.e. a premium end customer can have a need for a ceiling fan as well as a TPW and Fresh air fans. Therefore the Company decided to launch sub brands under the mother brand Crompton greaves to target each of the customer segments, segmented on the basis of price and launched a range of ceiling, TPW and exhaust fans under those sub brands for premium, economy and sub-economy segments. The role of the sub brands is to create a differentiation in the mind of the consumer regarding the brand image. Thus, the image of the imperial, aura etc sub-brand was built to appeal to the Premium Fan customer, whereas the cool breeze sub-brand is aimed at the lower end customer. Introduction of Sub Brands As many as five new Sub brands were introduced 1. Cool breeze as a low-price Sub economy Fan in Ceiling, spring in Table & cross air fan in exhaust.

2. Auras as an Economy premium Ceiling Fan. 3. Leo as a Decorative Ceiling Fan. 4. New ChandelAir as a Decorative under light fan. 5. Introduction of multiple sub brands and products has been a key ingredient to the success of Crompton greaves fans. Each sub brands signifies a specific customer expectation and the companys attempts at meeting them. Positioning of the mother brand Crompton greaves Fans Key Consumer insights: The fan consumer is an indifferent user. The category is a low involvement category and the decision maker is usually the male head of the family. There is a widely held consumer belief, which was unearthed in a systematic probing of indifferent minds, through extensive research. This insight is that the fan that moves fastest gives the maximum air and hence induces maximum cooling and thereby gives the maximum comfort. As long as the body can feel the air satisfaction is assured. Crompton greaves Fans decided to capitalize on this core category benefit sought by the consumer and decided to position the umbrella brand Crompton greaves Fans as a range of Every day solution or 178 stunning signs of success! Or Crompton greaves touches our lives every day..with a breadth of fresh air fans and hence a range with the highest performance. The 178 stunning sign of success! Tag line also made the fans being perceived as Technically Superior, which was an added consumer benefit.

SUGGESTION TO THE COMPANY:KEY ELEMENTS OF THE MARKETING STRATEGY Product Strategy Ceiling Fans l Launch high quality decorative fans with better designs in the premium segment. l Launch high quality decorative and non-decorative but contemporary fans in the Economy Segment corresponding to the consumer needs of this segment. l Launch basic products without any frills to meet the needs of sub-economy segment aimed at providing an up-gradation platform to the customer from the unorganized sector. TPW Fans Launch a new range of TPW fans in the premium and economy segments. Fresh air Fans Launch a new range of Fresh air fans in the economy and sub-economy segments.

Actions to bring the products in line with the positioning strategy the Revolutions Per Minute (RPM) of all products was increased from 330RPM to around 400RPM to ensure higher Air Flow Velocity. Launched the range of TPW fans in the premium segment. Launched the Crown range of TPW fans in the Premium segment. Launched decorative & non-decorative fans in the economy segment of ceiling fans Launched basic models with no special features in the sub economy segment cool breeze Pricing Strategy The company should follows a competitive pricing strategy in all major markets for all product segments The strategy to enter the lower price segments is executed through launch of differentiated models aimed at the lower price segments. Earlier all Economy and Premium ceiling fans are sold at around Rs.1000 and Rs.1200 respectively to the customer. Sub-Economy ceiling fans are introduced at a customer price of less than Rs.900. The company introduced their Maxima ceiling fans at a customer price of Rs.900 and Bahar ceiling fans at a customer price of Rs.800. However, one of the organized sector competitors (say Competitor A) introduced a ceiling fan model at a customer price of Rs.700. Today the sub economy segment is being actively looked at by most major competitors. The pricing innovation aimed at the Bottom of the Pyramid mass market has been a key element of the CG Fans success story. Packaging Strategy all the carton graphics should revamped in line with a new theme of Elements of Nature. The Fans business being an Air business, took up the image of moving clouds as a graphical motif for its packaging and a new set of Carton graphics were implemented for the entire product range. This theme was also incorporated in the Posters, Pops, the shop boards and all other communication elements to give Bajaj fans a unique and instantly recognizable in-shop identity. Promotion Strategy Television as the main media it is important to create high aided and unaided brand recall related to the fans category in the minds of the consumer. Fan as a product category has no major regional disparities in sale. Much of the sale of organized sector is in the metro, Class I and Class II markets. The cable and satellite penetration in these markets is very high. It was therefore strategies to shift from the traditional way of promoting fans in print media to TV advertising through major C&S channels like Star, Sony and Zee. TVs of 10, 20 & 30 secs are developed based on a positioning Crompton Fans touches our life with the feel of fresh air in Hindi and various regional languages such as Tamil, Kannada, Telegu, Malayalam & Bengali.. Increased brand visibility at the market place initiated various Ground level activities by hiring promoters in key wholesale and large retail markets for fans. These promoters are dressed in branded T-shirts and caps and were asked to distribute leaflets of Crompton fans to the potential customers and to detail the products at the Point of Sale. Attractive Pops, Display schemes and Mystery Customer Contests should also run for the dealers for better display of products and packaging on the retail shelves by the retailers and for a Channel Push. Publicity An effective public relations campaign should also started to get favorable word of mouth publicity and press coverage. The results have been quite encouraging.

Distribution Strategy Reach of potential through Mission Excel Initiative The aim under this initiative should to understand the reach of Potential of the retailers of the company in the total market and ensure presence and high shop share at key retail outlets, which has a high share of the defined market. This enabled the Company to explore a larger part of the defined market potential by being present in larger retailers counters in a stronger manner. This activity leads to an improvement in both the width and depth of Distribution. Retail Performance Standard (RPS) The SAP database is used to know the width of distribution of leading players in the market. The leading player is benchmarked and a Retail Performance Standard was developed for all markets, which are based on the ratio of our presence in the number of retail counters vs. that of the benchmarked competitor. An action plan was developed and executed to ensure that Bajaj brand gains an entry in the selected retail outlets where the benchmarked competitor was present, so as to achieve the targeted RPS. Change in Distribution Strategy Crompton greaves decided to reduce the additional layers of distributors wherever feasible, which was increasing the distribution costs for the company over that of the competitors. Instead a switch over was made to the industry norm of supplying fans directly to major fans retailers and whole sellers and allowing for adequate width of distribution as per the market forces. Company Retailer consumer Separate Network for Sub-Economy fans Competitor A (Bajaj) was the first to introduce a range of sub-economy ceiling fans. However they offered this model to all their dealers and further advertised the price of this model very strongly. This affected them adversely in 2 ways. On the one hand the sub-economy model ate into their sale of economy and premium models whose sales declined rapidly while their overall sales remained constant. On the other hand, as the customers knew the price through the companys advertising, dealer margins were compressed which created a serious dissonance in the minds of their dealers. Having learnt from this, Bajaj clearly made it a policy to establish a parallel distribution network for the sub-economy fans, which comprised of dealers who were primarily un-organized sector fan dealers. The company also decided, as far as possible, not to offer the sub-economy fans to its existing dealers of economy and premium fans. Wherever it had to offer sub-economy fans to some of its very important existing dealers, it insisted on a minimum growth of 20 per cent from such dealers in the economy and premium range of fans. It also did not advertise the sub-economy fans at all. The companys objective in introducing the sub-economy fans is clearly to take share from the growing un-organized sector market while sustaining growths in the economy and premium segments. A sub objective is also to take away some share from the Economy segment fans of the other organized sector players. This distribution strategy enabled the company to: l Sustain growth in the economy and premium range of fans. l Successfully establish a new network, which is hitherto unavailable to it, comprising of dealers who were primarily dealing with unorganized sector fans. l Ensure healthy Trade margins. Increasing Shop Share In the consumer durable market the consumer depends on the dealers recommendation for a brand. Hence it is important to ensure that key dealers are encouraged to recommend Crompton greaves Fans to the customer. For this the Company ensured that: l Attractive margins should given to dealers l An attractive and comprehensive range of products should offered l Efforts at gaining Dealer loyalty should undertaken

Dealer Loyalty simply increasing the margins of dealers by offering higher discounts is not the best form to gain dealer loyalty. This is because any other organized sector brand could match the offer immediately and nullify the companys price advantage. Instead, since 2001 the Company has introduced a number of programs to increase dealer loyalty towards Crompton Fans, thereby encouraging them to recommend our fan over other brands, to the customer. These would be:

Summer Hungama Scheme Special gifts to dealers, which included household appliances and travel within the country and abroad. Key dealers should encourage to qualify for travel incentives and should taken for the trip along with their spouse. This will help in increasing the bonding with key dealers. Trips should arrange to Bangkok, Mauritius and Singapore. Crompton greaves Fan Dealers Privilege Club l First by any Fan company o For long term CRM o Membership by invitation only o Only Crme de la Crme fan dealers invited o Special rewards, gifts, trophies and certificates o Annual conference at a foreign location o Criteria for qualification - Sales Volume, Growth, Payment Efficiency. o To honor our key dealers and make them feel important and valued. o The company invited only 100 top dealers of the country of which 81 dealers qualified. They were taken on a trip to Dubai with the top Management of the Company.

Direct Mailers Khulja Sim Sim: The company should identified some key retail counters across India & sent them mailers directly from H.O. Branches should asked to open these counters directly or increase shop shares through existing distributors. This will a first of its kind activity by any company in the Industry and hope it will give good result. Dealer Meets Dealer and Sub Dealer meets should organized to gain their confidence share with them the companys strategies and future plans and obtain their feedback on how to collectively grow in volumes and profits. Most importantly such meets created a strong bond between the company and its dealers and sub-dealers and made them feel an important part of Team Crompton greaves. People Strategy another major step should take by the company is on the people front. The Organization Structure is revamped and the company moved from a complex matrix structure to a SBU based organization with shared services. The Fans SBU had a change in leadership with a younger, dynamic and more risk taking people oriented leader. Appropriate structures should formed for Sales, Marketing and Supply Chain functions along with a revamping of the Manufacturing and Design & development teams. The Head of Sales had a team of Regional Managers, Area Managers and Territory Sales In-charges to support him. The organization should also revamped into seven responsibility levels from the previous 19 salary grades to make the career progression faster and to reward good performers. A new set of Job Descriptions and Key performance Indicators (KPIs) should implemented along with a substantial improvement in various processes such as Planning, Supply Chain, information management, review processes etc. A number of poor performers were weeded out and replaced with good talent from the Fans industry. A new Performance Incentive Scheme and a new Performance Appraisal process should also implemented to ensure good talent management. Deserving people should promoted from within and better career rewards and punishments should implemented. All these coupled with appropriate decision making

empowerment and delegation resulted in a transformed and result hungry team. The people in the Fans BU were the single biggest contributors to the Fans BU success story.

CONCLUSION:-

At last the study says that in market Crompton greaves holds good position but not the number one. The 1st position goes to Bajaj electrical limited. According to the survey most of the dealers are not satisfied with the pricing policy of Crompton greaves. The company should increase the gap between dealer price and MRP.The Company should take care about their advertisement policy, it should be improved. At the time of new product launch the company should take advices of top dealers and retailers from all over country. The distribution channel of Crompton greaves is good but still some improvements are needed for proper distribution of product. The company should take care about incentive and benefit of dealers so that they promote their product.

REFRENCES:-

1) www.cglonline.com 2) www.quickmba.com 3) www.marketresearch.com 4) www.google.com 5) Marketing management by Phillip kotler. 6) Business world.