A study on Electronics Retail branded outlet

and consumer satisfaction with respect to it

Project Guide :
Prof. Jitendra Sharma
 
Presented By :
Nischal Chudasama 018
Bhagyesh Takoliya 111
 Problem Definition
 To check out the what customer think
about the electronics retail branded
outlet and what kind of electronics
stores they prefers to purchase
electronics product.
 Application of the report

 This report can be used by other management

student for getting idea about the electronics
retailing industry.

 This report would be beneficial for existing players

to improve their services to serve customer better.

 The company can use the details of this report for

understanding the customer requirement and
constructing their strategies accordingly.
Introduction

Home Appliances
Home appliances are electrical/mechanical appliances
which accomplish some household functions, such as
cooking or cleaning.

The industry is represented by major international and

local players such as LG, Samsung, BPL, Videocon,
Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool,
etc.
 Types of Home Appliances

Home Appliances
White Goods Kitchen Consumer Electronics
Appliances/Brown
Goods
• Refrigerators • Mixers • Mobile Phones
• Washing Machines • Grinders • Televisions
• Air-conditioners • Microwave Ovens • MP3 Players
• Speakers and Audio • Iron • DVD Players
Equipments • Electric Fans • VCD Players
• Cooking Range
 Review of Literature

 Roth, Perry H., Silverman, Alex (1995), Home appliance sales

declined 5% in Jul 1995 over the same period in 1994, although more
than 50 million units were sold. Canadian and Mexican economic
conditions led to a poor North American market. Unemployment in
Europe is keeping demand low, but sales are increasing in the Pacific
Rim and Latin America.

 Roth, Perry H., Lusk, Eric B., Silverman, Alex (1995), Home
appliance manufacturers enjoyed record financial performance in
1994, but domestic sales growth is expected to be relatively flat for the
foreseeable future. Manufacturers are hopeful that internal cost control
measures will help their bottom lines, as well as significant market
opportunities in Asian and European markets.
Source:
 http://www3.interscience.wiley.com/journal/98517586/abstract?CRETRY=1&SRETRY=0
 http://www.faqs.org/abstracts/Business-general/Home-appliance-industry-part-11.html
 The mean age of India’s population in 2006 was 27 years of age, and
almost 40% of the country’s population is below 20 years of age. This
“young” population has a high demand for products and services, with the
latest technology, good styling and affordable prices. India’s young
population has also led to the rapid adoption of new technologies, once
their prices have fallen to affordable levels. Portable consumer electronics
has shown higher volume growth than in-home electronics or the after-
market in in-car electronics in 2007.
(Source: Euromonitor International's Consumer Electronics in India report)

 A study by the Mckinsey Global Institute suggests that if India can

achieve 7.3 per cent annual growth a reasonable assumption if economic
reforms continue consumer spending will quadruple from about 17 trillion
Indian rupees ($372 billion) in 2005 to 70 trillion rupees in 2025. The
dramatic growth in India's middle class, which will constitute about 583
million people, will power this surge. Consumer durables popularly
known as white goods is expected to show a growth of 15 per cent, for the
fiscal year ending March 2009, as against March 2008.
 Research Objective

 To study the Home appliance industry.

 To study overall industry as
marketing, finance and HR
perspective.
 To study Consumer Behavior toward
branded electronics retail stores.
 Research Methodology
 Research Design
Descriptive research:
 
 Data Collection:
Primary Data : -
Primary data consists of original information gathered for the
specific purpose.
  Secondary Data : -
Secondary data consists of information that already exists
somewhere.

 Sampling Plan:
Consumer: 200
Industry Analysis
Porters five force model
 Threat of New Entrants (Low)
1 Many MNCs are already present and well established
2 Requires investment in localization, distribution reach
3 High growth potential could attract new entrants
 Supplier Power (Adequate)
1 Adequate supplier base
2 Most suppliers are small in scale and size as compared to manufacturers
 Competitive Rivalry (High)
1 Well established, strong players
2 Brand, cost and distribution are key differentiators
3 Ample opportunities for growth
 Customer Power (High)
1 Wide choice of products
2 Well informed, increasingly demanding customers
3 Low penetration levels, large untapped market
 Threat of Substitutes (No)
1 No substitutes currently for products in the sector
 SWOT Analysis
Strengths
1. Presence of established distribution networks
2. Presence of well-known brands
3. Organized sector has increased its share in the market
Weaknesses
1. Demand is seasonal and is high during festive season
2. Demand is dependent on good monsoons
3. Poor government spending on infrastructure
4. Low purchasing power of consumers
Opportunities
1. In India, the penetration level of white goods is lower as compared to other
developing countries.
2. Unexploited rural market
3. Rapid urbanization
4. Increase in income levels, i.e. increase in purchasing power of consumers
5. Easy availability of finance
Threats
1. Higher import duties on raw materials imposed in the Budget 2007-08
2. Cheap imports from Singapore, China and other Asian countries
HR in Home Appliance Industry

 Performance Evaluation

Behavioral Performance Feedback

Employee Attitude Survey

Customer Feedback

Performance and Potential Review

 Data analysis

(1) Are you eager to buy electronics consumer goods?

No, 12%

Yes, 88%
(2) How often you buy electronics goods?

Once a year,
>5 times/year,
17%
22%

2-3 times/year,
4-5 times/year, 33%
28%

(3) Which type of store you prefer to buy electronics good?

Unbranded,
39%

Branded,
61%
(4) Why are you buying electronics goods from unbranded retail
stores?

Answer: Many customers are still to like or prefer buying goods from
unbranded retail stores because of following reasons:
Due to personal relation with them.
Customer loyalty towards unbranded retail stores.
(5) Which of the following electronics retail stores are you prefer for
buying electronics goods?

Others, 11%

Next, 8% Croma, 29%

Salesindia,
14%

Vijay sales,
E-mall, 26%
12%
(6) How often you visit branded electronics goods stores?

Never, 19%
Regular, 24%

Sometimes,
57%

(7) While purchasing Electronics goods which parameter influences you?

35%

30%

25%

20%

15%

10%

5%

0%
Price Features Brand Service Durability
(8) Are you satisfied with the price taken by branded retail stores?

No, 18%

Yes, 82%

(9) Which Promotional tools you prefer for awareness of products?

Others, 14%

Personal Advertising,
Selling, 16% 43%

Direct
Marketing, 27%
(10) Are you satisfied with service provided by branded electronics retail stores?

No, 21%

Yes, 79%

(11) Opinion towards branded Vs unbranded retail stores

Answer: In branded retail outlets numbers of products are available. So, as

per the customer views, it is easy for them to compare one branded product
with another one with respect to price, features, schemes etc. so, satisfaction
level is high in branded retail stores.
 Hypothesis Testing

 Chi-square Test Influence Factors

 Null Hypothesis Ho: Influence Price Features Brand Service Durability Total
Occupation
Factors for purchasing
electronics consumer good is
independent of occupation.
Service 17 13 12 09 08 59

 Alternative Hypothesis Ha: Business 12 14 11 07 05 49

Influence Factors for
purchasing electronics Student 15 13 10 11 06 55
consumer good is not
independent of occupation. HouseWife 13 09 03 06 06 37

Total 57 49 36 33 25 200
 Degrees of freedom (5-1)(4-1)= 12
Level of Significance 0.05
Critical Value (Table Value) 21.026
Chi-square value Calculated 5.24242
Null hypothesis accepted 5.24242<21.026

So, Null Hypothesis is accepted. i.e. Influence factors is independent on the

occupation of consumer.

Interpretation:
The observed value of chi-square 5.24242 is greater than the critical value, 21.026,
so the null hypothesis is accepted.

So, from this research we can say that consumers influence towards electronics
consumer goods by own mentality towards products not the occupation.
 Research Findings

 People are more prefer to buy electronics consumer

goods from branded retail stores due to number of
availability of different products with respect to
different brands.
 Out of all branded retail stores more customers are
prefer to go and buy products from Croma and e-
mall.
 Indian consumers are very price sensitive while
purchasing the electronics good, they are more
influence through price.
 Conti……

 Product features, Brand, Services and durability of

products etc are important factors to influence the
consumers while purchasing electronic goods.
 Most of consumers are satisfied with the price and
services offered by the branded retail stores.
 Many customers are still to like or prefer buying
goods from unbranded retail stores due to personal
relation with them and loyal customer of unbranded
retail stores.
 Even though Customer satisfaction level is very high
while purchasing products from branded retails store
as compare to unbranded retail stores.
Conclusion

 People are mostly prefer to buy electronics

consumer goods from branded retail stores only.
 People have responded well on promotional scheme.
 Influence factors such as Price, Features, Brand,
Services, durability etc are not depending on
occupation of consumers.
 Consumers are satisfied with services offered by
branded retail stores and price is taken by them.
Suggestions

 Keeps detail information regarding the products

which are available in the retail stores.

 Organized event for the loyal customers.

 Take personal interest in customer while they are

visited branded retail stores.

 Focus on using more promotional tools to attracts

the customers.