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This is to certify that work entitled Project title Consumer buying behavior
of Godrej home appliances through Direct Sales is a piece of work done by
Students name Subhakanta Dash under my guidance and supervision for
the partial fulfillment of degree of
Management, Bhubaneswar.
DECLARATION
Buying
Behaviour
of
Godrej
Appliances
Asian
School
of
Business
Management,
I also declare that this project has not been submitted for the
award of any other degree, diploma, literature or recognition
earlier.
Place: Bhubaneswar
Subhakanta Dash
Date:
(Regn: PGPM/09-11/51)
ACKNOWLEDGEMENT
I am also thankful to the Director, Dean and all the faculty members of Asian
School of Business Management for their valuable support throughout the
project.
I am equally grateful to each and every member of Godrej & Boyce Mfg. Co.
Ltd., Bhubaneswar for their whole-hearted co-operation in completing this
project in stipulated time.
I extend my sincere thanks to all customers of Godrej Appliances who helped
me for my project.
Last but not the least, I would like to thank my family members and friends
whose unbounded support facilitated the successful completion of the
project.
1. On The Job Training (OJT) gives a practical exposure and helps in acquiring
the on road skills.
2. First and foremost objective is to know the response of existing customers
of Godrej Direct sales division..
3. To gain the complete knowledge about the products of Godrej & Boyce
Manufacturing co. ltd, Appliances Division
4. To generate the leads through the survey.
5. To sort out the prospective leads from the data I have collected through
the survey.
6. To make the relationship stronger with the existing customers and to
follow up them, make sure that they are satisfied with the product.
7. To maintain good relationship with the corporate employees.
8. To get more references from the customers and generate new leads by
following a chain process.
9. To find out the customer awareness on booming financial market and to
find out the investment patterns of the people.
10.
different competitors.
11.
On the job training we also came to know about the various products of
Godrej Appliancesand its detail benefit that the customer will get.
12.
After all how the claims of the customers will be settled quickly.
11.
continuous effort
12.
Leading character
13.
14.
15.
EXECUTIVE SUMMARY
In this research the benchmark practices has been assessed. In this era of
competition it is high time to realize for an organization regarding what is its
strength, its core competencies, what is to be benchmarked, how it should be
benchmarked and with whom. This project studies the consumer buying
Previously
Indian market was weak in providing good after sales service but now a day
there is huge competition.
This report also includes the analysis of the psychological as well as
Demographical analysis which will be very much helpful for a company. This
report also says about various marketing and advertising strategies that can
be followed by the company in order to grab the prevailing opportunities.
CHAPTER-1
INTRODUCTION
Company background
-
Introduction to company
Corporate Profile
Product Profile
Initiatives
Air
conditioners,
Microwave
Ovens,
Washing
10
Godrej and Boyce Mfg. Co. Ltd. deals in both the consumer products as well
as industrial products. Both have wide ranges of products in it. From
appliances to personal care in consumer products while the storage solution,
machine tool service, agro products, chemicals etc comes in the industrial
products category. Recently it has announced to increase the number
of retail stores from 49 to 100 by 2010. Investment of Rs 20 crore will
be made to make it a success. Godrej Appliances Ltd. brings out
refrigerators, washing machines, air-conditioners, microwave ovens, and DVD
players in India with the latest technology. Every consumer good comes with
price range and variety to serve absolutely all the strata of the society. Fully
sensing the need and demand of the market of IT in India Godrej InfoTech
Limited provides IT solutions like the development of software, e solutions
development, customization & ERP. It also provides database outsourcing
and consultancy services
Godrej Industries ltd. manufactures Oleo chemicals. Over two dozens of industries in
India use the chemicals made by Godrej industries. They all in all make more than
hundred of such chemicals. Besides this it also produces edible oil, vanaspati and
bakery fats, and deals in medical diagnostic and real estate. Product has quality
that of international standard and yet at competitive price. Company's' profile
shows that Godrej Properties ltd a real estate arm of Godrej Group is doing wonders
in residential sector in India. it is coming up with property project in Bangalore.
Our Divisions:
Appliances
Construction
Furniture (Interio)
AV Solutions (Prima)
Electricals & Electronics
Lawkim Motors
Locks
Material Handling
Precision Engineering
Precision Systems
Process Equipment
Security Solutions
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Storage Solutions
Tooling
Vending (Prima)
Godrej India has seen both the post and pre independence days as it got
established in 1897. It started its business with locks manufacturing and at
present it a provider of wide variety of services in India, like doors, furniture,
locks,
software
development,
beverages,
chocolates,
chemicals
for
12
13
The Company celebrated its centenary in 1997. In 1897 a young man named
Ardeshir Godrej gave up law and turned to lock-making. Ardeshir went on to
make safes and security equipment of the highest order, and then stunned
the world by creating toilet soap from vegetable oil.
His brother Pirojsha Godrej carried Ardeshir's dream forward, leading Godrej
towards becoming a vibrant, multi-business enterprise. Pirojsha laid the
foundation for the sprawling industrial garden township (ISO 14001- certified)
now called Pirojshanagar in the suburbs of Mumbai. Godrej touches the lives
of millions of Indians every day. To them, it is a symbol of enduring ideals in a
changing world.
The Godrej Group touches the lives of 400 million Indians who use at least
one of our products every single day. Our commitment to quality,
attention to detail and customer centricity has helped us earn the trust of
generations of Indians.
14
15
16
Incorporation
Established in 1897, the Company was incorporated with limited liability on
March 3, 1932, under the Indian Companies Act, 1913.
Sales-Subsidiaries and Affiliates
The Company is one of the largest privately-held diversified industrial
corporations in India. The combined Sales (including Excise Duty) of the
Company, its subsidiaries and affiliates, during the Fiscal Year ended March
31, 2008, were about Rs. 90,000 million (US$ 1,900 million).
Jamshyd Godrej:
17
P. P. Shah, A. Ramachandran
Shareholders
Since its inception, the Company is controlled by the GODREJ family based in
Mumbai, India. Its shares are not listed on any Stock Exchange. About onefourth of the Company's share capital is held by Pirojsha Godrej Foundation,
a public charitable trust.
Showrooms
The Company has a network of:
38 Company-owned Showrooms
more than 2,200 Wholesale Dealers, and more than 18,000 Retail Outlets.
The
Company has Representative Offices in Sharjah (UAE), Nairobi (Kenya), Colombo (Sri
Lanka) and Riyadh (Saudi Arabia).
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Hierarchy:
Personnel department comprises of four employees- one deputy and 3
seniors under him.
Over all there are 19 plants make all different products like security
systems, locks, doors, etc. Each of this plant is considered as a separate
profit making center. Profits made by each of the plants are accounted for
separately in its Annual report also.
Management:
Different levels of management are as follows:
A
- Base level - In this level, new-entrants are trained about the various
- Sales
19
CRM. It has started its operation in 2002 by selling contracts and AMCs. But
looking at the need of the customer and after understanding the customer in
a better way we have started selling appliances from 2005.Presently it has
its operation in 15 branches.
NCR,Mumbai,Chennei,Kolkata,Lucknow,Jaipur,Hyderabad,Pune,Bangalore,Ahe
medabad,Bhopal,Chandigarh,Cochin,Coimbatore and Bhubaneswar.
National head is Mr.Rajinder Kool
Zonal manager (ME)-Mr.Bharat Bhusan Agarwal
Zonal Manager (SW)-Mr.Sumit Malik
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Refrigerator
Frost Free
Direct Cool
A.C
Washing Machine
Split A.c
Microwave Oven
Fully automatic
Window A.c
Semi automatic
DVD
Convection
Grill &
Combination
Solo
Steam
From locks to aerospace, furniture to construction, appliances to custom-built
critical equipment, and several more, Godrej & Boyce has a diverse range of
products and services.
3) Whirlpool
4) Videocon
Godrej believe in Brighter Living
Brighter Living = Progression + Expression + Empathy + Experience
21
22
23
The Company has got wide range of branches within the country.
Exchange offer.
Weakness:
The Company does not go for advertising, which is one of the biggest
disadvantage of Godrej.
24
Threat:
The growing competition in the Appliances sector
Chapter-2
LITERATURE REVIEW
&
CONCEPTUAL FRAMEWORK
25
MARKETING
Marketing is the process by which companies determine what products or
services may be of interest to customers, and the strategy to use in sales,
communications and business development. It is an integrated process
through
which
companies
create
value
for
customers
and
build
live in San Diego, put your marketing efforts into the San Diego daily
newspapers. If you are selling a new line of cat collars, look into Cat Fancy or
other feline-related periodicals. Print advertising must be prepared well in
advance to meet the deadlines of the publications especially with monthly
magazines, since they are printed months before their release date.
Direct Mail
Although many believe Direct Mail marketing has seen its best days already
passed; there is still some life in this powerful, traditional form of advertising.
Direct Mail refers to postcards, brochures and flyers that are sent through the
mail and generally contain a direct response call-to-action. Using direct mail
means having to purchase some necessities for the campaign, including
printing materials, postage and the address lists of the demographic you
wish to target.
TV and Radio
Among the most high profile campaigns in the industry, television and radio
advertising offer the opportunity to reach the largest number of people in the
shortest time frame. Among the disadvantages of these marketing efforts are
the potentially high cost and the inability to truly target your demographic
with precise accuracy. However, the prestige associated with television
advertising can elevate a business in a way no other marketing format can.
Online Marketing
The rising star in the world of marketing is online. The web continues to
explode and along with it so do the advertising opportunities. Billions and
billions more advertising dollars are spent every year online, as business try
to find ways to tap into the Internet user. The most common types of Online
Marketing include:
27
Pay Per Click bidding on search terms and having the business ads appear
when the relevant keywords are searched for in Google and Yahoo!
Banner Advertising creating a graphic advertisement and placing it on
relevant websites. The ad then takes customers directly to the advertisers
website.
Email Marketing Using lists of email addresses to deliver content and
promotional offers to potential customers.
Organic Search Using search engine optimization (SEO) to rank high on
Google and Yahoo! in your given area of business. This is achieved by
manipulating the copy on a website and in the HTML code that forms the
backbone of the web pages.
It is worth nothing that many businesses are abandoning the more
traditional, print forms of marketing in favor of reaching out to the online
world. As print and direct mail see their numbers decline, more and more
businesses are choosing the cost effective, highly targeted marketing options
found online.
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29
cant.
Usually,
this
is
the
case
only
for
commodities.
In
For
30
taste vs. low calories, (2) preference for Cola vs. non-cola taste, (3) price
sensitivitywillingness to pay for brand names; and (4) heavy vs. light
consumers. We now put these variables together to arrive at various
combinations.
Several different kinds of variables can be used for segmentation.
Demographic variables essentially refer to personal statistics such as
income, gender, education, location (rural vs. urban, East vs. West),
ethnicity, and family size. Campbells soup, for instance, has found that
Western U.S. consumers on the average prefer spicier soupsthus, you get a
different product in the same cans at the East and West coasts. Facing flat
sales of guns in the traditional male dominated market, a manufacturer
came out with the Lady Remmington, a more compact, handier gun more
attractive to women. Taking this a step farther, it is also possible to segment
on lifestyle and values.
Some consumers want to be seen as similar to others, while a different
segment wants to stand apart from the crowd.
Another basis for segmentation is behavior. Some consumers are brand
loyali.e., they tend to stick with their preferred brands even when a
competing one is on sale. Some consumers are heavy users while others
are light users. For example, research conducted by the wine industry
shows that some 80% of the product is consumed by 20% of the consumers
presumably a rather intoxicated group.
One
can
also
segment
on benefits
sought,
essentially
bypassing
31
In the next step, we decide to target one or more segments. Our choice
should generally depend on several factors. First, how well are existing
segments served by other manufacturers? It will be more difficult to appeal
to a segment that is already well served than to one whose needs are not
currently being served well. Secondly, how large is the segment, and how
can we expect it to grow? (Note that a downside to a large, rapidly growing
segment is that it tends to attract competition).
Thirdly, do we have
While
McDonalds has a great reputation for fast, consistent quality, family friendly
food, it would be difficult to convince consumers that McDonalds now offers
gourmet food. Thus, McDs would probably be better off targeting families in
search of consistent quality food in nice, clean restaurants.
Positioning involves implementing our
targeting.
For
example,
Apple
32
Michael Treacy and Fred Wiersema suggested in their 1993 book The
Discipline of Market Leaders that most successful firms fall into one of three
categories:
Operationally
excellent
firms,
which
maintain
strong
competitive
discipline.
Technologically excellent firms, which produce the most advanced products
currently available with the latest technology, constantly maintaining
leadership in innovation.
33
is
on
the
dimension
of
strength.
to
store
that
consistently
offered
everyday
low
prices.
In the similarity
34
Diffusion of Innovation
Products tend to go through a life cycle. Initially, a product is introduced.
Since the product is not well known and is usually expensive (e.g., as
microwave ovens were in the late 1970s), sales are usually limited.
Eventually, however, many products reach a growth phasesales increase
dramatically. More firms enter with their models of the product. Frequently,
unfortunately, the product will reach a maturity stage where little growth will
be seen. For example, in the United States, almost every household has at
least one color TV set. Some products may also reach a decline stage,
usually because the product category is being replaced by something better.
For example, typewriters experienced declining sales as more consumers
switched to computers or other word processing equipment. The product life
cycle is tied to the phenomenon of diffusion of innovation. When a new
product comes out, it is likely to first be adopted by consumers who are more
innovative than othersthey are willing to pay a premium price for the new
product and take a risk on unproven technology. It is important to be on the
good side of innovators since many other later adopters will tend to rely for
advice on the innovators who are thought to be more knowledgeable about
new products for advice.
35
At later phases of the PLC, the firm may need to modify its market strategy.
For example, facing a saturated market for baking soda in its traditional use,
Arm Hammer launched a major campaign to get consumers to use the
product to deodorize refrigerators. Deodorizing powders to be used before
vacuuming were also created.
It is sometimes useful to think of products as being either new or existing.
Many firms today rely increasingly on new products for a large part of their
sales. New products can be new in several ways. They can be new to the
marketnoone else ever made a product like this before. For example,
Chrysler invented the minivan. Products can also be new to the firm
another firm invented the product, but the firm is now making its own
version. For example, IBM did not invent the personal computer, but entered
after other firms showed the market to have a high potential. Products can
be new to the segmente.g., cellular phones and pagers were first aimed at
physicians and other price-insensitive segments. Later, firms decided to
target the more price-sensitive mass market. A product can be new for legal
purposes. Because consumers tend to be attracted to new and improved
products, the Federal Trade Commission (FTC) only allows firms to put that
label on reformulated products for six months after a significant change has
been made.
36
The bell shaped curve frequently illustrates the rate of adoption of a new
product. Cumulative adoptions are reflected by the S-shaped curve.
Thesaturation point is the maximum proportion of consumers likely to adopt
a product.
In the case of refrigerators in the U.S., the saturation level is nearly one
hundred percent of households; it well below that for video games that, even
when spread out to a large part of the population, will be of interest to far
from everyone.
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38
Agricultural extension agents then sought out the most progressive farmers
to try hybrid corn, also aiming for farmers who were most respected and
most likely to be imitated by others. Few farmers switched to hybrid corn
outright from year to year. Instead, many started out with a fraction of their
land, and gradually switched to 100% hybrid corn when this innovation had
proven itself useful.
Several forces often work against innovation. One is risk, which can be
either social or financial. For example, early buyers of the CD player risked
that few CDs would be recorded before the CD player went the way of the 8
track player. Another risk is being perceived by others as being weird for
trying a fringe product or idea. For example, Barbara Mandrell sings the
song I Was Country When Country Wasnt Cool. Other sources of
resistance include the initial effort needed to learn to use new products (e.g.,
it takes time to learn to meditate or to learn how to use a computer) and
concerns about compatibility with the existing culture or technology. For
example, birth control is incompatible with strong religious influences in
countries heavily influenced by Islam or Catholicism, and a computer
database is incompatible with a large, established card file.
Innovations come in different degrees. A continuous innovation includes
slight improvements over time. Very little usually changes from year to year
in automobiles, and even automobiles of the 1990s are driven much the
same way that automobiles of the 1950 were driven. A dynamically
continuousinnovation involves some change in technology, although the
product is used much the same way that its predecessors were usede.g.,
jet vs. propeller aircraft. A discontinous innovation involves a product that
fundamentally changes the way that things are donee.g., the fax and
photocopiers. In general, discontinuous innovations are more difficult to
market since greater changes are required in the way things are done, but
the rewards are also often significant.
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Several factors influence the speed with which an innovation spreads. One
issue is relative advantage (i.e., the ratio of risk or cost to benefits). Some
products, such as cellular phones, fax machines, and ATM cards, have a
strong relative advantage. Other products, such as automobile satellite
navigation systems, entail some advantages, but the cost ratio is high.
Lower priced products often spread more quickly, and the extent to which
the product istrialable (farmers did not have to plant all their land with hybrid
corn at once, while one usually has to buy a cellular phone to try it out)
influence the speed of diffusion. Finally, the extent of switching difficulties
influences speedmany offices were slow to adopt computers because users
had to learn how to use them.
Some cultures tend to adopt new products more quickly than others, based
on several factors:
Modernity: The extent to which the culture is receptive to new things. In
some countries, such as Britain and Saudi Arabia, tradition is greatly valued
thus, new products often dont fare too well. The United States, in
contrast, tends to value progress.
Homophily: The more similar to each other that members of a culture are,
the more likely an innovation is to spreadpeople are more likely to imitate
similar than different models. The two most rapidly adopting countries in the
World are the U.S. and Japan. While the U.S. interestingly scores very low,
Japan scores high.
Physical distance: The greater the distance between people, the less likely
innovation is to spread.
Opinion leadership: The more opinion leaders are valued and respected, the
more likely an innovation is to spread. The style of opinion leaders
moderates this influence, however. In less innovative countries, opinion
40
Buying Behavior
A marketing firm must ascertain the nature of the customers buying
behavior, if it is to market its product properly. In order to entice and
persuade a consumer to buy a product, marketers try to determine the
behavioral process of how a given product is purchased. Buying behavior is
usually split in two prime strands, whether selling to the consumer, known
as business-to-consumer (B2C)
or
another
business,
similarly
known
as business-to-business (B2B).
41
42
44
Major New Purchases these purchases are the most difficult of all
purchases because these are important to the consumer but the consumer
has little or no previous experience making the purchase. This type of
decision often (but not always) requires the consumer to engage in an
extensive decision-making process.
Major Re-Purchase - these purchase decisions are also important to the
customer but the customer feels more confident in making the decision since
they have experienced purchasing the product in the past.
45
In this tutorial when we mention the consumer we are referring to the actual
buyer, the person spending the money. But is should also be pointed out that
the one who does the buying is not necessarily the user of what is bought
and that others may be involved in the buying decision in addition to the
actual buyer. While the purchasing process in the consumer market is not as
complex as the business market, having multiple people involved in a
purchase decision is not unusual. For example, in planning for a family
vacation the mother may make the hotel reservations but others in the
family may have input on the hotel choice. Similarly, a father may purchase
snacks at the grocery store but his young child may be the one who selected
it from the store shelf.
So
understanding
consumer
purchase
behavior
involves
not
only
understanding how decisions are made but also understanding the dynamics
that influence purchases.
What Influences Purchasing?
As we discussed the decision-making process for consumers is anything but
straight forward. There are many factors that can affect this process as a
person works through the purchase decision. The number of potential
influences on consumer behavior is limitless. However, marketers are well
served to understand the KEY influences. By doing so they may be in a
position to tailor their marketing efforts to take advantages of these
influences in a way that will satisfy the consumer and the marketer
(remember this is a key part of the definition of marketing).
46
For the purposes of this tutorial we will break these influences down into
three main categories: Internal, External and Marketing. However, those
interested in learning more about customer buying activity may want to
consult one or more consumer behavior books where they will find additional
methods for explaining consumer buying behavior.
For the most part the influences are not mutually exclusive. Instead, they are
all interconnected and, as we will see, work together to form who we are and
how we behave.
For each of the influences that are discussed we will provide a basic
description and also suggest its implication to marketers. Bear in mind we
only provide a few marketing implications for each influence; clearly there
are many more.
INTERNAL INFLUENCES
47
48
Attitude
In simple terms attitude refers to what a person feels or believes about
something. Additionally, attitude may be reflected in how an individual acts
based on his or her beliefs. Once formed, attitudes can be very difficult to
change. Thus, if a consumer has a negative attitude toward a particular issue
it will take considerable effort to change what they believe to be true.
Marketing Implication:
Marketers facing consumers who have a negative attitude toward their
product must work to identify the key issues shaping a consumers attitude
then adjust marketing decisions (e.g., advertising) in an effort to change the
50
51
purchases that make them feel younger). Appealing to the consumers self
concept needs could expand the market to which the product is targeted.
Lifestyle
This influencing factor relates to the way we live through the activities we
engage in and interests we express. In simple terms it is what we value out
of life. Lifestyle is often determined by how we spend our time and money.
Marketing Implication:
Products and services are purchased to support consumers lifestyles.
Marketers have worked hard researching how consumers in their target
markets live their lives since this information is key to developing products,
suggesting promotional strategies and even determining how best to
distribute products. The fact that lifestyle is so directly tied to marketing
activity will be further examined as we discuss developing target market
strategies (See Part 5 Targeting Markets).
Roles
Roles represent the position we feel we hold or others feel we should hold
when dealing in a group environment. These positions carry certain
responsibilities yet it is important to understand that some of these
responsibilities may, in fact, be perceived and not spelled out or even
accepted by others. In support of their roles, consumers will make product
choices that may vary depending on which role they are assuming. As
illustration, a person who is responsible for selecting snack food for an office
party his boss will attend may choose higher quality products than he would
choose when selecting snacks for his family.
Marketing Implication:
52
Advertisers often show how the benefits of their products aid consumers as
they perform certain roles. Typically the underlying message of this
promotional approach is to suggest that using the advertisers product will
help raise ones status in the eyes of others while using a competitors
product may have a negative effect on status.
Motivation
Motivation relates to our desire to achieve a certain outcome. Many internal
factors we have already discussed can affect a customers desire to achieve
a certain outcome but there are others. For instance, when it comes to
making purchase decisions customers motivation could be affected by such
issues as financial position (e.g., can I afford the purchase?), time constraints
(e.g., do I need to make the purchase quickly?), overall value (e.g., am I
getting my moneys worth?), and perceived risk (e.g., what happens if I make
a bad decision).
Marketing Implication:
Motivation is also closely tied to the concept of involvement, which relates to
how much effort the consumer will exert in making a decision. Highly
motivated consumers will want to get mentally and physically involved in the
purchase process. Not all products have a high percentage of highly involved
customers (e.g., milk) but marketers who market products and services that
may lead to high level of consumer involvement should prepare options that
will be attractive to this group. For instance, marketers should make it easy
for consumers to learn about their product (e.g., information on website, free
video preview) and, for some products, allow customers to experience the
product (e.g., free trial) before committing to the purchase.
EXTERNAL INFLUENCES
53
Consumer purchasing decisions are often affected by factors that are outside
of their control but have direct or indirect impact on how we live and what
we consume.
Culture
Culture represents the behavior, beliefs and, in many cases, the way we act
learned by interacting or observing other members of society. In this way
much of what we do is shared behavior, passed along from one member of
society to another. Yet culture is a broad concept that, while of interest to
marketers, is not nearly as important as understanding what occurs within
smaller groups or sub-cultures to which we may also belong. Sub-cultures
also have shared values but this occurs within a smaller groups. For instance,
sub-cultures exist where groups share similar values in terms of ethnicity,
religious beliefs, geographic location, special interests and many others.
Marketing Implication:
As part of their efforts to convince customers to purchase their products,
marketers often use cultural representations, especially in promotional
appeals. The objective is to connect to consumers using cultural references
that are easily understood and often embraced by the consumer. By doing so
the marketer hopes the consumer feels more comfortable with or can relate
better to the product since it corresponds with their cultural values.
Additionally, smart marketers use strong research efforts in an attempt to
identify differences in how sub-culture behaves. These efforts help pave the
way for spotting trends within a sub-culture, which the marketer can
capitalize on through new marketing tactics (e.g., new products, new sales
channels, added value, etc.).
54
Marketing Implications:
Identifying and understanding the groups consumers belong to is a key
strategy for marketers. Doing so helps identify target markets, develop new
products, and create appealing marketing promotions to which consumers
can relate. In particular, marketers seek to locate group leaders and others
to whom members of the group look for advice or direction. These opinion
leaders, if well respected by the group, can be used to gain insight into group
behavior and if these opinion leaders accept promotional opportunities could
act as effective spokespeople for the marketers products.
Situation
A purchase decision can be strongly affected by the situation in which people
find themselves. Not all situations are controllable, in which case a consumer
may not follow their normal process for making a purchase decision. For
55
instance, if a person needs a product quickly and a store does not carry the
brand they normally purchase, the customer may choose a competitors
product.
Marketing Implications:
Marketers can take advantage of decisions made in uncontrollable situations
in at least two ways. First, the marketers can use promotional methods to
reinforce a specific selection of products when the consumer is confronted
with a particular situation. For example, automotive services can be
purchased that promise to service vehicles if the user runs into problems
anywhere and at anytime. Second, marketers can use marketing methods
that attempt to convince consumers that a situation is less likely to occur if
the marketers product is used. This can also be seen with auto products,
where marketers explain that using their product will prevent unexpected
damage to their vehicles.
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Purchases, the purchasing process can extend for days, weeks, months or
longer. So in presenting these steps marketers should realize that, depending
on the circumstances surrounding the purchase, the importance of each step
may vary.
1. Need/Want/Desire is recognized
In the first step the consumer has determined that for some reason he/she is
not satisfied (i.e., consumers perceived actual condition) and wants to
improve his/her situation (i.e., consumers perceived desired condition). For
instance, internal triggers, such as hunger or thirst, may tell the consumer
that food or drink is needed. External factors can also trigger consumers
needs. Marketers are particularly good at this through advertising, in-store
displays and even the intentional use of scent (e.g., perfume counters). At
this stage the decision-making process may stall if the consumer is not
motivated to continue (see Motivation above). However, if the consumer
does have the internal drive to satisfy the need they will continue to the next
step.
2. Search for Information
Assuming consumers are motivated to satisfy his or her need, they will next
undertake a search for information on possible solutions. The sources used to
acquire this information may be as simple as remembering information from
past experience (i.e., memory) or the consumer may expend considerable
effort to locate information from outside sources (e.g., Internet search, talk
with others, etc.). How much effort the consumer directs toward searching
depends on such factors as: the importance of satisfying the need, familiarity
with available solutions, and the amount of time available to search. To
appeal to consumers who are at the search stage, marketers should make
efforts to ensure consumers can locate information related to their product.
57
For example, for marketers whose customers rely on the Internet for
information gathering, attaining high rankings in search engines has become
a critical marketing objective.
3. Evaluate Options
Consumers search efforts may result in a set of options from which a choice
can be made. It should be noted that there may be two levels to this stage.
At level one the consumer may create a set of possible solutions to their
needs (i.e., product types) while at level two the consumer may be
evaluating particular products (i.e., brands) within each solution. For
example, a consumer who needs to replace a television has multiple
solutions to choose from such as plasma, LCD and CRT televisions. Within
each solution type will be multiple brands from which to choose. Marketers
need to understand how consumers evaluate product options and why some
products are included while others are not. Most importantly, marketers must
determine which criteria consumers are using in their selection of possible
options and how each criterion is evaluated. Returning to the television
example, marketing tactics will be most effective when the marketer can
tailor their efforts by knowing what benefits are most important to
consumers when selecting options (e.g., picture quality, brand name, screen
size, etc.) and then determine the order of importance of each benefit.
4. Purchase
In many cases the solution chosen by the consumer is the same as the
product whose evaluation is the highest. However, this may change when it
is actually time to make the purchase. The intended purchase may be
altered at the time of purchase for many reasons such as: the product is out-
58
59
It is generally agreed that biases can creep into our decision making
processes, calling into question the correctness of a decision. Below is a list
of some of the more common cognitive biases.
Selective search for evidence - We tend to be willing to gather facts that
support certain conclusions but disregard other facts that support different
conclusions.
Premature termination of search for evidence - We tend to accept the first
alternative that looks like it might work.
Conservatism and inertia - Unwillingness to change thought patterns that we
have used in the past in the face of new circumstances.
Experiential
limitations
Unwillingness
or
inability
to
look
beyond
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Group think
Peer pressure to conform to the opinions held by the group.
Source credibility bias - We reject something if we have a bias against the
person, organization, or group to which the person belongs: We are inclined
to accept a statement by someone we like.
Incremental decision making and escalating commitment - We look at a
decision as a small step in a process and this tends to perpetuate a series of
similar decisions. This can be contrasted with zero-based decision making.
Inconsistency - The unwillingness to apply the same decision criteria in
similar situations.
Attribution asymmetry
We tend to attribute our success to our abilities and talents, but we attribute
our failures to bad luck and external factors. We attribute other's success to
good luck, and their failures to their mistakes.
Role fulfillment - We conform to the decision making expectations that others
have of someone in our position.
Underestimating uncertainty and the illusion of control - We tend to
underestimate future uncertainty because we tend to believe we have more
control over events than we really do.
Faulty generalizations - In order to simplify an extremely complex world, we
tend to group things and people. These simplifying generalizations can bias
decision making processes.
Ascription of causality - We tend to ascribe causation even when the
evidence only suggests correlation. Just because birds fly to the equatorial
61
regions when the trees lose their leaves, does not mean that the birds
migrate because the trees lose their leaves
CHAPTER-3
RESEARCH METHODOLOGY
o Research Objective
o Research Design
o Sample Size
o Research Hypothesis
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RESEARCH METHODOLOGY
RESEARCH TOPIC
A STUDY ON CONSUMER BUYING BEHAVIOR OF GODREJ HOME APPLIANCES
THROUGH DIRECT SALES
RESEARCH OBJECTIVE
To study the view of people about various factors while buying from
Direct Sales Bhubaneswar
Research Design
2 Age*2 Sex
TYPES OF RESEARCH
Exploratory Research
Descriptive Research
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UNIVERSE
Bhubaneswar city Nayapalli, Khandagiri, Oldtown ,Kalinga Vihar, Acharya
Vihar,Unit-8, Pallashpalli
SAMPLE SIZE 156
SAMPLING METHOD
Area sampling
Data collection
1. Measurement instrument: structured questionnaire
2. Method: survey
Sources of data
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Sampling
Sample size: Total sample size is 156 individual customers, out of which
all are valid. Sample procedure Area sampling
Sample area: Bhubaneswar
In BBSR the area covered is, Nayapalli, Khandagiri, Oldtown ,Kalinga Vihar,
Acharya Vihar,Unit-8, Pallashpalli because in this particular area there are so
many existing customers as per companys register.
Analysis
Data collected from the survey through systematically framed questionnaires
and those are being analyzed and shown in graphical representation
65
Chapter -5
Analysis of data
Graphical presentation
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Khandagiri- 30
Oldtown- 34
Others- 14
Female- 45
Age Grouop- Young Age group (20-34) , Middle Age Group (35-50),
Old Age Group (51-69)
Consumer Profile Analysis
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The survey included 156 individuals out of which 111 are Male respondent
and 45 are female respondents. The survey is basically conducted in
Nayapalli, Khandagiri, Oldtown and some other areas. The ratio of male
respondent to female respondent is 2.46:1.
Psychographic Analysis
Life style Analysis
Interpretation
From the above chart it can be interpreted that 53.8% of the total sample are
more culture oriented irrespective of place and age. Nayapalli area alone
holds 25.6% of the total population, then followed by old town, khandagiri
and other regions.
24.25% of the sample are sports oriented , it includes mostly the agegroup of
20-34.the rest 21.95% are outdoor oriented.
Scope for Godrej
So eventually it can be interpreted that most of the people in Bhubaneswar
are culture oriented. So Godrej has to take care of that. It should sponsor or
arrange some cultural programme in the heart of the city to catch the
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attention of the culture oriented people. More specifically Godrej can attract
to the younger by sponsoring the local club matches and can provide some
youth awards to the emerging students which will be less expensive and
highly productive.
Personality Analysis
Personality Analysis
The column chart of demographic analysis says that most of the respondent
of the representative sample are ambitious followed by gregarious and
authoritarian and compulsive respectively.
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Demographic Analysis
From the revealed survey it is clear that people belong to three age group
i.e. 20-34, 35-50,51-69. The average annual income of the young age group
i.e. 20-34 is 4lakh per annum having 4 family members.
The little older age group with comparison to the former is also in the same
trend which has the average annual income of 3.9 lakh with 4 family
members.
The older part of the sample has the highest average salary of 4.7 lakh per
annum with 5 family members.
Scope for Godrej
70
Godrej is able to touch the heart of young and middle age people so it should
march forward without loosing their faith. It is only possible by providing
qualitative product.
Interpretation
From the above Chart it can be interpreted that Refrigerator is the first
choice of everyone . the middle age group has taken the aerial root by
covering the no. of 66 refrigerators. From this it is clear that Godrej has an
impressive market share in Refrigerator.
But godrej will not be happy with the no. of washing machine and
airconditions sold during the year. So it clearly sights that Godrej is quite
back in comparision to its competitors. Microwave Oven is also in the same
trend.
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But the most shocking thing is that Godrej is unable to open its account in
DVD, Water Purifier and UPS. So Godrej has to exercise its brain towards
heavy advertisement in order to stay tuned in the track.
Scope for Godrej
Godrej has the opportunity to promote its Dog category products with the
likes of its star product Refrigerator.
So the management of Godrej should exercise its brain on this.
Another factor can not be omitted that Godrej is able to attract the young as
well as middle age group. so there is a huge opportunity to march forward
with the ambitious and gregarious personalities.
2. Why you purchased appliance from Direct Sales?
Interpretation
As general human tendency is always searching good products with less
price and it certainly becomes more when a company offers an exchange
offer. From the above chart it is clear that the middle age group has taken
the most benefit from the offer so as the most oldest age group. though the
young age group is also in the trend but availability of various choices has
attracted them very much.
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Competitive pricing is also somehow a point of concern for both young and
middle age group. But the old age group has not taken competitive pricing
into count.
In direct sales sales person is the biggest factor. But the respondents have
not given importance to the sales person during their purchase decision.
Only middle age group has put some importance.
Life becomes very busy now days. So general expectation is that people will
not spend many time in searching dealers to buy product. But the
respondents have proved this wrong. They are well concerned about the
product that they are going to buy.
Scope for Godrej
Godrej has got a positive response from its customers by providing exchange
offer. But the point of discussion is that it is only offering this offer in three
products. So the management should think about providing exchange offer
on other products, so that Godrej will satisfy its tagline.
Interpretation
73
Interpretation
When we are going to buy some product from Direct sales generally we test
his product knowledge so that we can get the most valuable product with
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satisfaction. This survey has also proved that product knowledge is the most
important thing that they expect from a sales person. These views are
especially from the young and middle age group respondent. The old age
group has put their importance on the grooming and appearance of the sales
person which is placed in the second position by both the young and middle
age group. Communication skill and Ability to clear concerns have also
opened their account but they have been placed 3rd and fourth respectively.
Scope for Godrej
The survey reveals that Godrej should put more emphasis on training which
will enrich their knowledge regarding the products. The sales persons should
also be given motivational training in order satisfy the demand of the market
in every condition
5. Will you prefer to pay a little more amount to get a better quality product and
services?
Interpretation
75
Certainly one will be eager to pay a little more amount than the existing if he
is offered a qualitative product satisfying his need. If we will put our eye
towards the various age groups Yes is quite superseding over No.
So we can also interpret that the ambitious and greagarious personality
group has strongly put positive view. But the authoritarian and compulsive
group has strongly disagreed to the point.
Scope for Godrej
Godrej is always getting massive positive response from the gregarious and
ambitious personality. So Godrej should take this as an advantage. Through
the gregarious personalities it can be able to get publicity.
Interpretation
76
When the matter comes into satisfaction level we generally hope for the
best. The data from the survey says that all age groups put quality as their
first choice that they expect from a product. By giving this kind of response
this kind of response they have proved that if the quality of the product is
good and if the product is reliable then after sales service is not required.
Thats why good after sales service has come in second place followed value
for money and price.
Scope for Godrej
After sales service is a headache for every company now. So Godrej has to
consider about producing quality products so that after sales service will not
be required. So the management should think over this.
7. Please rank the overall satisfaction level from the product bought from Direct Sales
on a scale of 10?
77
Interpretation
During the survey the respondents were asked to rank the product from the
scale 1-10. The respondents also responded well.
Both young and old age group have given the rank 7.8 in average where as
the middle age group has given the average rank of 7.2.
Scope for Godrej
Godrejs position is Average which is clear from the analysis. So the top
management should think about this to get rid of excellent position.
8. Feedback
Interpretation
78
The survey report states that most people are satisfied with the product and
brand. All the age group did not hesitate to put their view in favour of
satisfied towards this corporate giant. But the management should not sleep
it should improvise its after sales service. So that it can secure no.1 position
undoubtedly.
Chapter-6
79
Findings
No proper Advertisement
80
Godrej has become no. 1 in Orissa due to the Exchange offer rather its
Brand impact.
Suggestions
In rural area it should call for exclusive dealers rather opening its own
sales division initially.
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As the study reveals that most people are culture oriented so it can
arrange / sponsor some cultural programmes in order to sustain faith of
the existing customers so as to attract other culture oriented people.
As some people are sports oriented it can sponsor some important club
and state level matches in order to attract sports oriented people.
Recommendation
82
83
term its not possible to continue the trend because of their negative
attitude.
Godrej is well known in rural areas for its security equipments. So the
management should think on taking the advantage from this.
It should target high sales volume through best service rather best
sales team.
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Prospecting
Follow-up
and service
Call
Planning
Close
The Visitpreliminarie
s
Trial Close
Presentatio
n
Objection
handling
Trial Close
Listening to
the
Objection
85
Another tactic that has proven successful is to ask consumers "What kind of
person would use this type of product?" By asking this question, it can be
determined what the consumer believes buying the product would say about
them, as well as whether or not they would want to be seen as that type of
person. One of the best ways to influence consumer behavior is to give
buyers an acceptable motive. This is somewhat related to the idea of asking
what type of person would buy a certain product in evaluating consumer
behavior. Consumers want to feel they're doing something good, being a
good person, eating healthy, making contacts, keeping up appearances, or
that they just deserve to be spoiled a little bit. If marketers can convince
consumers that they need a product or service for some "legitimate" reason,
customers will be more likely to make a purchase. Finally, another alternative
for influencing customer behavior is by offering specialized goods.
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Chapter-
88
Conclusion
After the successfully completion of my summer internship I understood that
market research is an important aspects for a company through out the life
cycle of a particular product. It helps in knowing the changing taste,
preference, life style etc. of the consumer. During the training I found that
Area Sampling method is a perfective market research technique.
With reference to my research topic that is CONSUMER BUYING BEHAVIOR
TOWARDS GODREJ HOME APPLIANCES. It was found that, 70% of the
respondents have responded with a positive note. That means they are
satisfied with their product.
From the study it was found that most of the customers had gone for Godrej
brand only due to exchange offer i.e. 85%. It was also found that Brand
name and quality of the product are the first preference for the customers
apart from age group. From the study it was also found that customers put
more preference on product knowledge of the sales person during the
purchase of the product. So the company should provide effective training to
its sales person regarding product features.
Eventually it can be concluded that Godrej Appliance has the market share in
Orissa. Exchange offer has been the reason to buy the Godrej product.
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BIBLIOGRAPHY
90
BIBLIOGRAPHY
Marketing Management, A south Asian PerspectiveKotler Philip, Keller Kelvin, Koshy Abraham, Jha Mithileshwar,
Edition-Twelfth edition. Publisher- Prentice Hall of India (p) Ltd,
Websites
www.godrej.com
www.yahooanswers.com
www.wikipedia.org
www.scribd.com
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ANNEXURE
i.
Questionnaire
92
Name:
Address:
Age:
Family Members:
Annual Household Income:
93
Q5) Will you prefer to pay a little more amount to get a better quality product and services?
a) Yes
b) No
Q7) Please rank the overall satisfaction level from the product bought from Direct Sales on a scale of 10?
94
Q8) Feedback
95