A STUDY ON MARKETING STRATEGY FOR VOLTAS

Submitted By Guided By:

NILESH.S.PAWAR (095105) SAGAR.D.SURVE (095113)

R. S. Nehete. Vikram Hande.

PRATHAMESH.M.THORAT (095116)
SHREYAS.P.WAGHMARE (095118)

Market strategy
Marketing strategy is a set of objectives, policies and rules that leads the company's marketing efforts. It is the marketing approach to accomplish the bread objective of the marketing plan.

OBJECTIVE
As part of this project, we will be concentrating our analysis on the following focal points 1. Study Customer Behaviour Understanding the factors responsible for customer buying behaviour. 2. Marketing Strategy of Voltas Understanding the Marketing plan of Voltas.

3. Analysis of Market Share of Voltas To study and analyse the annual and financial growth reports of Voltas Co.

Contd.
4. Study of Customer Segmentation To study the products of Voltas with respect to the Segmentation of Customer over Family Size, Income, Price, Features etc. 5. Study of Product Differentiation Variants of Products offered by Voltas Co. 6. Competition faced by Voltas Analysis of the domestic competitors for Voltas. 7. External Environment of Voltas Analysis of the Air Conditioner Industry. We intend to run a customer survey, to find out the customer perception about Voltas.

VOLTAS
Established in 1954 in collaboration with Volkart Brothers, a Swiss firm and Tata Sons Limited. Manufactured the first ever room air conditioner in 1954. Introduced the first innovative split air conditioner in 1984. Introduced the tall and elegant slimline air conditioner in 1993. Among the first to launch sub 1.0 Ton ACs. Introduced Energy Efficient Air-Conditioners in 2007 First to introduce corner split AC in 2009

PRICE & PRODUCT

Vertis Split AC Rs 15990(1 ton) Rs34990(2 ton)

Vertis Pristine AC Rs 28990(0.75 Ton)33990(1.0Ton)

Slim Line AC Rs 46,990(2 ton)-Rs 66,990(3 ton)

Distribution chart
Factory
1.Inhouse Manufacturing

Company has adopted a flexible Business Model To reach semi-urban and rural MarketExpansion of network of dealers, distributors and retailers in 2009.

2.Outsourced Manufacturing

Warehouse

Distributors

Dealers & Retailers

PROMOTION
The new advertising platform of ALL WEATHER AC Voltas AC TV commercial is running across various channels such as NDTV 24X7, Aaj Tak, CNBC, Times Now, Discovery and National Geographic.

Contd.
Print ads - The Times of India, Hindustan Times. Websites used- Yahoo!, Rediff, MSN, Sify and NDTV.com Radio campaign on Big FM Below-the-line activities across eight metros and Tier II towns.

COMPETITORS
LG Samsung Hitachi Haier Videocon Bluestar Carrier Others(Including O-general etc) Unorganized Sector

MARKET SHARE IN ROOM AC SEGMENT

31% 19%

VOLTAS
LG 18% SAMSUNG HITACHI OTHERS

7% 15%

The Room AC Segment is expected to grow by 25% in coming years.

COMMERCIAL SEGMENT
Caters to Light commercial segment Products: Venture range of products that includes Floor Standing (Slim line), Cassette and Ductable Air Conditioners. Supported by strong R&D and technical support Hyderabad International Airport ,ITC Mumbai.

SWOT ANALYSIS
STRENGTHS
Design and manufacture of refrigeration plants Management and execution of Air Conditioning . Voltas offers many energy saving techniques Strong R&D

WEAKNESS
Too keen on targeting the economy consumer segment only Unable to target the Green conscious customers

THREATS
Due to increased price of inputs and continued price erosion there is downtrend in the consumer durables market

OPPURTUNITIES
The high end value driven proposition helps increase the market share. Voltas is well known for its product differentiation Promote eco friendliness through their energy efficient products

Technical comparison
Parameters
Capacity Functions Compressor Refrigerant Type Energy Rating Energy Efficiency Power Consumption Energy Save Mode Other Filters Anti Bacteria Active Carbon Filter Net Weight indoor dimensions Net Weight Outdoor Dimensions Voltas 1.5 ton Platinum Split AC 5275W (COOLING) Cooling High EER Rotary R-22 5 STAR 3.35W/W Cooling 1575 W _ Filters Anti Dust Filter yes 17 kg 33kg 13 kg 37 kg 12.3 kg 40.9 kg Dust , Triple Filter yes Air Purifier,Full HD filter LG 1.5 Ton LSA5MR5T Samsung Crystal + 1.5 Ton Split AC AS18EWH Split AC 5275W (COOLING) Cooling,dehumidifying ROTARY -R22 R-22 5 STAR 3.4W/W Cooling 1550 W yes 5 STAR 3.38W/W Cooling 1570 W yes 5300W (COOLING) Cooling, dehumidifying UTR PLUS

STP
SEGMENTATION Mass Segment TARGETING Middle Income Groups All age groups Upper Class All age groups In Malls, Offices etc. POSITIONING Power saving, value for money, Indian factor Family Factor. High Technology, New Design.

Premium Segment

Commercial Segment

QUESTIONNAIRE ANALYSIS

Q1.WHICH AC BRANDS DO YOU KNOW?

35
30 25 20 15 14 11 6 7 3 2 8 28 30 25

10
5 0

10
7

11

In our survey, we found that 25 out of 40 are aware of Voltas AC whereas LG and Samsung are more popular among people

Q2.HOW MANY HOURS DO YOU USE AC IN A DAY?

18 16 14 12 10 8 6 4 2 0 2 HOURS 2-5 HOURS MORE THAN 5 HOURS WHOLE DAY

17 15

Q3.WHICH AC BRANDS YOU CONSIDERED WHILE MAKING YOUR PURCHASE DECISION?

20 15 10 5 0

16
11

20 18 2

50 % among 40 people will consider Voltas while making their purchase decision.

Q4.WHICH AC BRAND HAVE YOU BOUGHT?

7 2 2 3 3 3 17 3 9 LG SAMSUNG

VOLTAS
ONIDA O GENERAL HITACHI BLUESTAR GODREJ OTHERS

Q5.WHAT IS THE MEDIUM OF INFORMATION?

14 12 10 8 6 4 2 0
13 13 11 7 14

The most important source of information came out to be Friends & Relatives and TV & Newspaper at second position& internet is at third number.

Q6.WHY DO YOU PURCHASE AC?

DESIGN PRICE AFTER SALES SERVICES STAR RATING UNIFORM COOLING COOLING ABILITY 4 31 8 15 7 12

0 5 10 15 20 25 30 35 In our survey, we find that cooling ability is the most important factor in making AC purchase decision.

Q7.HAVE YOU EVER BOUGHT VOLTAS AC

17

YES
NO 23

Out of 40 people, only 17 said that they have bought Voltas AC .

FOR VOLTAS CUSTOMERS

Q8. WHAT DO YOU FEEL ABOUT AFTER SALES SERVICES?

FULLY SATISFIED SATISFIED

AVERAGE SATISFACTION

11

Q.9 HOW WILL YOU RATE THE PRICING POLICY OF VOLTAS IN COMPARISON TO OTHER BRANDS?
12 10 11

8
6 4 2 0 1 5

High

low

Somewhere in between

Q.10 IF YOU HAVE TO BUY ONE MORE AC THEN AC OF WHICH BRAND WILL YOU PREFER MOST ?
6 5 4 3 2 2 6

4
4

2
1 0 LG

Samsung

Voltas

Carrier

Any other

Q.11 WHAT IS YOUR OPINION REGARDING VOLTAS AC?

Innovative 2

Technologically strong

Long Lasting

Reliable

10

Q.12 ANY CHANGES WHICH YOU WOULD LIKE TO BRING AMONG VOLTAS AC ?
8 7 6 5 4 3 4 5 7

2
1 0 Improve quality Increase variety Reduce price Introduce more schemes No change 1

Q13. WILL YOU BUY IT AGAIN?

2

YES
NO

15 15 out of 17 people have said that they will buy their present AC again.

Q14. WILL YOU SUGGEST IT TO YOUR FRIENDS?

1

YES NO

16

Out of 17, 16 said they will suggest it to their friends.

WHAT COMES TO PEOPLES MIND WHEN THEY THINK OF VOLTAS AC?

Good quality Tata product Average AC Indian AC Good Cooling ability & Compact size Bad service Value for money

RECOMMENDATIONS
Voltas should come up with new and good schemes for consumers like discounts, coupons etc. It should provide more profit margins to its dealers. Brand building exercises and other Marketing strategies need to be strengthened. Voltas should focus on the availability of its products like Voltas Vertis(0.75 Ton)

LIMITATIONS OF PROJECT
The sample used for our consumer behavior analysis is very small and does not represent the whole market The study is based on articles, presentations, etc available in internet, company home page etc. only Due to the lack of field work there is no substantial backing for the recommendation

The analysis is done by students and cannot be taken as final report

CONCLUSION
Based on this Marketing research project we were able to make the following conclusions about the brand Voltas AC Customer Behavior With the help of our survey we were able to deduce that the consumers of ACs are mostly driven by Energy efficiency, maintenance cost, after sale support Marketing Strategy of Voltas Voltas has strictly adhered to their mass marketing technique and highly efficient products at reasonable cost of owning. This has helped Voltas to capture the niche market of cost sensitive consumers and even retain them.

CONCLUSION
Market Share of Voltas Voltas is doing fairly well in the current scenario with its last quarter results showing positive development Customer Segmentation Voltas customer segmentation is very clear and they have streamlined their products as per the same. Product Differentiation Voltas has a good line of products within each type of products.

THANK YOU