Vous êtes sur la page 1sur 25

PROJECT REPORT ON

THE STUDY OF THE CONSUMER DURABLES INDUSTRY IN INDIA

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE


AWARD OF DEGREE OF BACHELORS OF MANAGEMENT STUDIES

BY
ADITYA TIWARI
ROLL NO. 84
SEMESTER VI
T.Y.B.M.S.
WILSON COLLEGE,
CHOWPATTY, MUMBAI – 400007

PROJECT GUIDE
DR. ZULEIKA HOMAVAZIR

SUBMITTED TO
UNIVERSITY OF MUMBAI

ACADEMIC YEAR
2018-2019
ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organizations. I would like to extend my sincere
thanks to all of them. I thank my family; without them this project would never have seen the
light of day.
I am highly indebted to Dr. Zuleika Homavazir (Head of the Department) for her guidance
and constant supervision and also for her support in completing the project.
I would like to express my gratitude towards Mr. Harish Marathe sir (Head of Sales and
Marketing at Sansui and Kelvinator) for providing necessary information regarding the
project, kind cooperation and encouragement which helped me in completion of this
internship at SanKel and this project.
I would like to express my special gratitude and thanks to our College and Principal for
always supporting me and my endeavours.
My thanks and appreciation also go to all those who have willingly helped me out with their
abilities
Thank you!
TABLE OF CONTENT

Sr. No. TOPIC Pg. No.


1. Research Methodology 1
2. Introduction of Consumer Durables Industry 23
3. Company profile 41

4. Growth Of Consumer Durables Industry in 53


India
5. Recent Trends and strategies of Sansui and 62
Kelvinator
6. Internship profile 68
7. Performance of SanKel’s products 71
8. Future of SanKel’s products and the industry 79
9. Key Learnings 92
10. Conclusion 94

11. Bibliography 95

The Study of Consumer Durables Industry in India


CHAPTER 1
RESEARCH METHODOLOGY

CHAPTER OBJECTIVES:
● To understand the objectives of research
● To understand the Research Design
● To know the sources of data

Page 1

The Study of Consumer Durables Industry in India


OBJECTIVES OF RESEARCH:
3.1 Definition of the Problem
The formulation of a correct research problem is the first and most important step in the total
research process. It is the imperative stage in applied research because poorly defined
problem will not yield useful outcomes. A poorly defined problem may lead to lots of
confusion and does not allow the researcher to build up a good research design. The present
study can be entitled as:
“A study on service quality and customer satisfaction in paid to the dealers and suppliers of
Sansui and Kelvinator in the region of Karnataka”
On the basis of the results of this study, companies can enhance level of customer satisfaction
by improving quality of their service.
The main purpose of the present study was to find out how Person-Organization Fit has a
major influence on the job satisfaction and performance of the employees. Therefore the
specific objectives of the study were:
a. To find out the existing conventional practices of Person-organization Fit.
b. To study how Person-Organization Fit has value for an organization.
c. To examine the relationship between Person-Organization Fit and employees’
performance.
d. To examine the relationship between Person-Organization Fit and employees’
job satisfaction.
e. To provide practical suggestions for Person-Organization Fit.

Page 2
The Study of Consumer Durables Industry in India
RESEARCH METHODOLOGY
1.1. Research Methodology:
This chapter projects the research objectives, hypothesis and research methodology
incorporated in this study. The chapter gives a detail description of research design used in
this research. This chapter also reflects the answer to the research question i.e.
 Is there a need for aligning an employee’s values with the organization values
during recruitment and selection in order to enhance organizational
effectiveness?

 Should Human Resource managers consider the congruence between


employees’ knowledge and skills while assigning organizational tasks?

 Is there any correlation between person organization fit, job satisfaction and
performance of the employees?
The chapter defines the operational definitions of the constructs selected for the research and
discusses in detail methods used to integrate these constructs and answer the research
question by testing the hypothesis developed from objectives of the research.
The present study attempts to develop a research design to find answer to the research
question and test the hypothesis. The chapter discusses in detail the methods used in the study
and justifies the usage of the same to resolve an objective of developing a conceptual
framework of the study.
The proposed study is empirical in nature based on both primary as well as secondary data.
The research is divided into quantitative as well as qualitative analysis of data collected from
the primary and secondary sources. The primary data is collected through field survey of
employees working in different sectors namely Auto and Auto Ancillary, Engineering and
Machinery, Chemical and Pharmaceuticals, Rubber/Plastic and Textile, and Electrical and
Electronics. From each sector more than 100 responses were collected. Out of total responses
i.e., 507, 101 responses were collected from Auto and Auto Ancillary Industry. 102 responses
were collected from Engineering and machinery Industry, 102 responses were collected from
53 Chemical and Pharmaceuticals Industry, 101 responses from Rubber/Plastic and Textile
Industry and 101 responses from Electrical and Electronics Industry.

Page 3
● Design of the Research
A research design is a systematic plan to study any research problem, a detailed outline of
how a research study will take place. It includes how the data is collected, what instruments
are employed and the intended means for analyzing data collected.
Research Design has been defined by Ahlstorm et al (2013) as ‘a plan, structure and Strategy
of an investigation so conceived as to obtain answers to research questions or problems. The
plan is the complete scheme the research. It contains writing the hypotheses giving their
operational implications and analyzing the data’. Creswell (2012) states that ‘A traditional
research design is a blueprint or a detailed plan for how a study is to be completed –
operationalizing variables so they can be measured, selecting a sample, collecting data to be
used as a basis for testing hypothesis, and analyzing the results’. Thus, the formulated design
converts the research question and hypothesis into operational and measurable variables and
specifies the process that would be followed. Charmaz (2011) have stated the subtle
difference between research design and research methodology. While research design
provides the framework to seek answers to research questions, research method details the
techniques utilized at various stages of the research. Keeping in view the above facts, the
work plan including research design and methodology was prepared.
This study investigates whether there is a match between person organization fit and
organizational values. It further seeks to assess whether person organization fit affects job
satisfaction, organizational commitment and performance of employees of a manufacturing
organization. This chapter first sets the conceptual framework for the study and states the
research questions. Then, sections devoted to sampling, data collection, survey questionnaire
and instruments detail the methodology. Choosing the right research design is vital to the
whole research process. It is a plan or strategy for conducting the research, which spells out
the basic strategies that are adopted by the researcher to develop the methodology which will
lead to an accurate and interpretable analysis.
This chapter further deals with matters such as selecting respondents for the research and
methods of data collection and the procedure of the study. Each step is explained.
Person-Organization Fit (POF) has a major influence on the job satisfaction and performance
of the employees. The employee whose values fit the organization values can contribute more
to the success of the organization. Person-Organization Fit makes perfect sense in that the
greater the fit between the values of an individual and those of the organization, the more
likely they will be to remain with that organization. A high Person-Organization Fit means a
higher commitment and willingness to do extra work for the organization.

There are not many researched studies on person organization fit. Hence, the present study
was undertaken to find out the role of Person-Organization Fit (POF) on the job satisfaction
and performance of employees in selected organizations of the manufacturing sector in Pune.
The focus of this study was to find out the consequences of Person-organization fit on the job
satisfaction and performance of managers and supervisors in the manufacturing organizations
selected.
Page 4
● Identification of gaps through Review of Literature
Extensive review of literature has been done on the topic selected to gain insight on how
person organization fit impacts job performance and satisfaction of an employee. This has
been presented in detail under Chapter-2 Review of Literature. Person Organization fit was
found to be defined as the compatibility between individuals and organizations.
The review of literature revealed that if the knowledge, skills and abilities possessed by the
employees are not aligned with the assigned roles in the organization, there is less job
satisfaction and performance of the employee. The employee whose values fit the
organization values can contribute more to the success of the organization.
The literature reviewed further revealed that there is a need for aligning an employee’s values
with the organization values, which would be vital for the growth of the organizations. On
identifying this gap the researcher was able to specify the scope of the study.
Hence this study deals with assessing the perfect fit between an employee and his
organization. In summary, the literature review suggests that person organization fit remains a
strong factor in determining satisfaction, commitment, and performance of the employees.
● Development of the Framework of the Study
The research framework was developed in accordance with the literature review. From the
review it was perceived that there is a relationship between person organization fit and job
satisfaction and performance of the employees. The framework comprised of dimensions of
person organization fit and its affective outcomes.

● Research framework of this study


Job
satisfaction

Person Organisation
Affective outcomes
Fit Job
performance

Organisational
commitment

● Formulation of Hypothesis
Research hypotheses are the specific testable predictions made about the independent and
dependent variables in the study usually the literature review given, has background material
that justifies the particular hypotheses that are to be tested. Hypotheses are drafted in terms of
the particular independent and dependent variables that are going to be used in the study.
Page 5
Hypotheses were formulated in terms of the independent and dependent variables which are
used in the study. Two series of hypotheses were formulated- one for null hypotheses and the
other for research hypotheses based on the review of literature:
HO1= There is no association between Person organization fit and employees’ job
satisfaction.
Ha1= High levels of person organization fit will increase employees job satisfaction.
HO2= There is no association between Person organization fit and employees performance.
Ha2= High levels of person organization fit will increase employees performance
HO3= There is no association between Person organization fit and the employees’
commitment.
Ha3= Person organization fit contributes to employees’ commitment.
● Variables used in the present study
A variable represents a quality that can exhibit differences in value, usually magnitude or
strength. A variable generally is anything that may assume different numerical or categorical
values. Since variable represents a quality that can exhibit differences in value, usually
magnitude or strength, it may be said that a variable generally is anything that may assume
different numerical or categorical values.
Variables are broadly classified into two categories.
1. Independent Variable
2. Dependent Variable
Independent variable: The independent variable of the study is Person Organization Fit.
Independent variable is defined as ‘A variable whose value determines the value of other
variables.’ It can also be defined as ‘A manipulated variable in an experiment or study whose
presence or degree determines the change in the dependent variable’.
Dependent variable: The dependent variable of the study is Job Satisfaction and Job
Performance. The element of overall job satisfaction and job performance was used as a
single item measurement. Dependent variable is defined as ‘A mathematical variable whose
value is determined by the value assumed by an independent variable.’ It can also be defined
as: ‘The observed variable in an experiment or study whose changes are determined by the
presence or degree of one or more independent variables’.
● Sample Design:
Samples are measured in order to make generalizations about population. Ideally, samples are
selected, usually by some random process, so that they represent the population of interest. In
real life, however, populations are generally best defined in terms of samples, rather than vice
versa; population is the group from which you are able to randomly sample. Since the
proposed study was exploratory in nature it was crucial to decide on the sampling design and
Page 6
size as an adequate size of sample could have led to sample bias and thus a biased conclusion.
Therefore, to decide on the adequate sample size was of utmost significance in order to keep
sample error at its lowest possible level, and to ensure stable and authentic results of the
research undertaken. Among various rules to determine adequate sample size, the one
suggests that sample size to be determined as a function of the number of variables
(Guadagnoli, 1988). By and large, statistical literature in this connection concludes that the
sample size needed for stable results is directly proportional to the number of variables under
consideration. On the basis of existing literature, Thorndike 1978 proposed two rules
connecting the sample size and number of variables. One informal guide is that there should
be at least 10 responses for each variable.
Thorndike observed that an addition of 50 more responses to the number obtained would
ensure sufficient sample size for variables being considered for analysis.
According to this rule the number of respondents (N) required is more than or equal to ten
times of variables and an addition of 50 responses. The second rule proposes somewhat more
stringent condition.
According to the second rule, the sample size should be equal to or greater than the square of
the total number of variables (N is greater than or equal to number of variables square) and an
addition of 50 more responses would serve the purpose. Therefore, in order to achieve
stability of results, the second rule that is more stringent for sample size was followed in this
study. The sample size of this research was based on the following formula of Thorndike:
N ≥ 10 (43) + 50= 480

Thus this analysis based on number of variables satisfies both the rules proposed by
Thorndike, 1978 relating to sample size. Since the numbers of manufacturing industries in
Pune were too large they were categorized and the following five categories were selected for
the study:
1. Auto and Auto Ancillary Sector
2. Engineering/Machinery/ Machine Tools
3. Chemical/ Pharmaceuticals
4. Rubber/ Plastics/ Textiles
5. Electrical/ Electronic

In each of these categories five manufacturing industries were identified. They were selected
keeping in mind the accessibility to the researcher, the strength of managerial level
employees and the reputation of the organization. The HR managers of these organizations
were approached and the purpose of the research was explained in detail. In certain
organizations the researcher was permitted to interact with the employees themselves. First a
rapport was established with them explaining the purpose of the research.
Page 7
The final list of manufacturing industries was selected as follows:

TYPES OF MANUFACTURING INDUSTRIES

S. no. Auto & Auto Engineering Chemical & Rubber/Plastic Electrical


Ancillary & Machinery Pharmaceuticals & Textiles &
Electronic
1. Bajaj Auto Ajantha Sudarshan Sellowrap Mfg. Sansui
Marketing Chemical Pvt. Ltd Electronics
Industries Ltd. Pvt Ltd
2. Tata Motors Reico Polychem Fine Dies & Bharat
industries Limited Mould Pvt. Ltd. Electronics
Limited
3. Mercedes High Energy Aquapharm Limited Gks Sharp
Benz Materials Chemicals Pvt. Technoplast Pvt. Electronics
Research Ltd. Ltd.
Laboratory
(HEMRL)
4. Mahindra Cummins Serum Institute Finolex Cables BPL
TwoWheelers Generator of India ltd. Limited Engineers
Technologies
India Limited
5. Bharat Forge ThyssenKrupp Lupin Garware-Wall LG pvt
India Lupin Laboratories Ltd Ropes Ltd. Ltd.
Laboratories
Ltd

Twenty five middle level managers were selected from each of the organizations listed above.
Hence a total of seven hundred and fifty questionnaires were distributed to the respondents.
In each organization some questionnaires had to be discarded due to invalid responses.
Finally the researcher collected valid responses from each organization. This made a total of
five hundred and seven (507) responses whose data has been presented and analyzed.

Page 8
● Identifying the tool of Research / Questionnaire
The questionnaire is in line with the research objectives. It comprises of questions relating to
demographic data hence, the descriptive association could be easily studied. The framing of
the questions incorporated simple words which were mostly positive in nature. Also, special
care was taken such that the questions were short and did not lead to ambiguous answers
(Dilamn, 2000; Zikmund, 2003; Rattray & Jones, 2007; Sanchez, 1992).
For primary data collection field surveys were conducted administering sector wise different
set of questionnaire by going to their respective work places. Their responses were collected
and compiled for analysis and interpretation. A structured questionnaire was developed. It had
five major sections (Refer Appendix A for questionnaire).

The questionnaire consisted of five main parts:


 Section I consists of a demographic detail of respondents.
 Section II consisted of questions related to person Organization Fit.
 Section III consisted of questions related to organization Commitment and

Culture Profile.
 Section IV consisted of questions related to job Satisfaction of the employees.
 Section V consisted of questions related to performance of the employees.

A proper sequence was followed with the order of the questions so that it progressed
gradually from easy to more difficult. The wordings of the questions were kept simple so that
respondents could easily understand and respond.
The options were measured on the Likert scale which was as follows:
1-Strongly disagree, 2-Disagree, 3- Neutral, 4- Agree, 5- Strongly agree.

Page 9

● Pilot Study
A pilot, or feasibility study, is a small experiment / survey / study designed to test feasibility
of the study and gather information prior to a larger study, in order to improve the latter’s
quality and efficiency. A pilot study can reveal deficiencies in the design of a proposed
experiment / survey / study and these can then be addressed before time and resources are
expended on large scale studies. A good research strategy requires careful planning and a
pilot study is often be a part of this strategy.
A pilot study is normally small in comparison with the main experiment and therefore can
provide only limited information on the sources and magnitude of variation of response
measures.
Before the survey, the questionnaire is ideally pre tested with a small sample size so as to
revise and reform it (Lancaster et. al, 2004; Collins, 2003). Therefore, pre-test and pilot study
forms an integral part of research design, especially if the study is quantitative in nature
(Blair et. al, 2013; Wills, 2004). Pre-test and pilot study is conducted before the actual data
collection is done as it ensures the validity and the non ambiguity of the instrument. It gives a
rough idea about the questionnaire in terms of its’ content, layout, framing and positioning of
the questions (Wills, 2004; Beatty & Willis, 2007; Blair et. al, 2013).
Furthermore, conducting a pilot study reveals useful information on as how to present
research findings once the final data has been received. To check the feasibility of the study
and the problem statement, the researcher conducted a pilot study by giving the questionnaire
to employees of two manufacturing organizations in Pune, which were Bajaj Auto Limited
and Finolex Cables Limited. A total of 50 structured questionnaires were distributed among
the employees at supervisory and middle level managers of Bajaj Auto Limited and Finolex
Cables Limited.
The questions asked were based on the relationship between Person organization fit, Job
satisfaction and Job Performance. From the Pilot study, it was found that for employee job
satisfaction, it is essential that the tasks and responsibilities assigned to the employees must
match his or her competencies. Further it was revealed that the tasks which are not suited to
the abilities of employees will lead towards job dissatisfaction. With the rewards and benefits
that determine the level of job satisfaction, person organization fit is also an important
variable that leads to job satisfaction.
The pilot study revealed that job satisfaction ultimately leads to the job performance. The
study revealed that when a person has responsibilities that best match his abilities, he will
perform satisfactorily and show greater results or higher performance. The study also
revealed that Human Resource managers must be aware of this fact, they must consider
employee’s capabilities while drafting the job descriptions of their employees.
Conducting the pilot study gave the researcher an opportunity to fine tune the questionnaire
and correct those questions which were confusing and ambiguous.

Page 10

● Preparation of Final Questionnaire


Based on the results of the pilot study, the final questionnaire was developed. On the basis of
the pilot study the researcher realized that flexibility should be given to the respondents.
Hence the five point Likert scale was used for every question, which ranged from Strongly
Agreed, Agreed, Neutral, Disagree and Strongly Disagree.
To check the reliability of the scale developed, the researcher performed Cronbach alpha test
to find out the reliability of all the items. Cronbach alpha value was found to be 0.886. Since
Cronbach alpha is greater than 0.7, it indicates that the items of the scale were reliable.

Cronbach Alpha Reliability Test


Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based No. of Items
on Standardized Items
.886 .891 72

Scale Statistics
Mean Variance Standard Deviation
.886 .891 72

The responses of the questionnaire were kept confidential. All the items were checked
carefully for the missing items. Therefore, there is no missing item in the questionnaire data.
A questionnaire survey was used in collecting data, within a two month collection period. To
ensure the completeness, accuracy and reliability of collected data before analysis, the
questionnaires received were checked to make sure they were ready for coding and transfer to
data storage.

● Data collection techniques used for the present study


Questionnaire was used to collect primary data from middle level managers and supervisors.
The questionnaire consists of questions based on Likert scale. Primary Data collection: A
structured questionnaire was used to collect primary data from middle level managers and
supervisors. The questionnaire consisted of questions based on the Likert scale. The
researcher visited the selected organizations. The HR managers of each organization selected
were approached to explain the nature of the study. The HR manager identified middle level
managers and supervisors. An initial rapport was established with them and thirty
questionnaires distributed randomly amongst them. The researcher collected the responses
after one week.
that in some of the responses some questions were unanswered hence they were discarded as
invalid. From every organization twenty valid questionnaires were selected for final data
analysis. Secondary data collection: The secondary sources can be classified into two
categories via published and unpublished sources. An extensive literature review was
conducted from the reputed databases such as EBSCO, EMERALD and PROQUEST.
The researcher also visited various libraries such as Jayakar library of Pune University,
Central library of Symbiosis International University. Past PhD thesis related to the topic
were also studied.

● Presentation of the Data collected


Data was collected and tabulated as mentioned above. The responses from each section were
coded on a five point scale. The data collected have been presented in the form of tables and
figures. From each section of the questionnaire certain questions were selected as these
addressed the objectives of the study. These are represented graphically followed by
discussion on responses obtained for that question. Wherever the results obtained were
similar to the results found in the review of literature, they have been linked.

● Statistical Analysis of Data


The analysis of data is conducted on the basis of statistical methods with the help of
Statistical Package for Social Science (SPSS).The researcher has solicited responses from the
employees of manufacturing sector. The responses were coded on a five point scale. In order
to predict employees satisfaction based on controlled variables mainly values, commitment,
person organization fit, multi variable linear regression analysis was carried out.
Multiple linear regression analysis was used to assess the association between Person
Organization Fit as an independent variables and Job Satisfaction and Job Performance as a
dependent variable. Every value of the independent variable is associated with a value of the
dependent variable. As both the variables were measured on ordinal scales, Spearman’s rank
correlation coefficient was thought to be the most appropriate test. A Spearman's correlation
coefficient was employed in order to determine the relationship between Person organization
fit and job satisfaction, organizational commitment and performance of employees.

● Conclusions and Recommendations


Based on the findings of the research, conclusions and recommendations have been drawn.
These are presented under the chapter of conclusion.

● Final Report writing


The last step of the research study is the presentation of the different stages into a final report.
It is very important that the final report contains all the necessary elements regarding the
research study. The final report also includes specific discussion of the extent to which each
objective has been achieved. The final report writing is done according to the index given in
the table of content.
COMPANY PROFILE

KAIL Ltd., a subsidiary of Videocon group, had two licensed brands Sansui and Kelvinator
with them. Brown goods (electronics) was dealt under Sansui Brand name and While goods
(large home appliances) under Kelvinator Brand name. Sansui was introduced in June 1997
in India and Kelvinator is over 50 years old in India but Videocon Industries got the license to
sell the brand in India from July 2005.

OPERATION:
The company KAIL Ltd. worked as an independent vertical from its parent company
Videocon Industries Ltd. (VIL). The vertical was led by a COO under whom were
departments of Finance & Accounts (F&A), Sales, Marketing, Supply Chain Management,
Service and Human Resource (HR). All Head of the departments (HOD) reported to the
COO. Their Head office (HO) in Mumbai had 37 people.
They had 38 Branch Managers (BM) with branch offices in all state capitals and 2 to 3
branches in bigger states. The sales was driven by 160 frontline sales personnel called Area
Sales Managers (ASM), 2 Branch Commercial persons in each Branch controlled the
commercial operation, each branch also had a Branch Marketing Manager (BMM) mostly
managing Below The Line (BTL) activities like in-store visibility and their sell-out
programmes, each branch also had a Branch Service Manager (BSM) taking care of after sale
service although the service was outsourced to sister concern called Tekcare and they in turn
had appointed Authorised Service Centres (ASC) across the country.
WORKING MODEL

To manage and administer well, KAIL Ltd., also had 12 Regional Managers who had a team
of a Regional Commercial Head and a Regional Marketing Manager. An organogram is
appended:

COO

MARKETING
SALES HEAD F & A HEAD H R HEAD SERVICE HEAD
HEAD

2 HR HO TEAM
4 TEAM - HO 4 TEAM - HO S C M HEAD

12 RM 6 RMM 2 SCM HO TEAM

38 BM 38 BMM 6 F&A HO TEAM

8 F&A RCM

38 F&A BCC

In the calendar year 2017, both the brands put together generated a business turnover of
Rs.1625 crore. Sansui’s contribution was 49% and that of Kelvinator 51%.

In brief, the SOP for business process flow is given in the schematic diagram below:

FACTORY
HO SENDS BRANCHES
RSP BY BM TO DESPATCH
INDENT TO BILL TO
HO STOCK TO
FACTORY DEALERS
BRANCHES
The Study of Consumer Durables Industry in India

DISTRIBUTION CHANNEL
Both the brands Sansui and Kelvinator operates with almost all the off-line channel but they
don’t deal with on-line channels like Flipkart or Amazon. Even in off-line, they are
conspicuous by their absence in Modern Retail like Reliance Digital, Croma, Walmart or
Metro Cash & Carry. Their business by channel is shown in the chart below:

Chart Title
60%

50%

40%

30%

20%

10%

0%
MR RR MBO BS DIST E COMM OTHERS
QTY VAL

MR : Modern Retail, RR : Regional Retail, MBO : Multi Brand Outlet (Mon & Pop store),
BS : Brand Shop, DIST : Distributor, E COMM : On-Line Retail & OTHERS : B2B/ CSD
etc.
SWOT ANALYSIS

SANSUI

STRENGTH WEAKNESS

• Japanese lineage • Lack of latest technology


• Range of SKU (stock Keeping Unit) • Playing second fiddle to Videocon
• Brand Awareness - 20 years in India • Lacklustre Brand promotion & Brand
• Backward integration giving edge on building
price • No intent to be the leader in its category
• Value for money brand • Volume focus based on price
• Good infrastructure and reach • Cash Crunch
• Higher retention to trade getting higher • On time supply
SOR (Share Of Recommendation)
• Reasonably good quality
OPPORTUNITY THREAT

• India is a fast growing market poised to • Working Capital for its business
• Entry of Chinese brands with very
be the 2nd largest in the world
aggressive prices
• To be among the top 5 brands
• Managing its channel from getting
• Big screen is fast growing and Sansui
poached
could have grabbed it
• Managing attrition of its skilled
• Tapping Modern Trade, all Regional
work force
Retail and Online business
• Latest technology targeting ever
• Extract better by managing its supply
young consumers
chain
• Maintaining a reliable after sales
• Blocking new entrants playing on price
service
as a strategy

KELVINATOR

STRENGTH

• Most widely known refrigerator brand


• High consumer demand especially in
single door (SD) category
• Aggressive prices yet profitable
• Good range by capacity
• Demand more than supply

WEAKNESS

 Old design and styling


 No advertisements or promotion to add life
to the attract the millennial
 Cash strapped organization
 Low manufacturing capacity
 Non availability of Frost Free refrigerator
models
OPPORTUNITY

• In SD refrigerators, demand is higher


than the availability of stocks
• Electrification of rural India and steady
electricity supplies
• Own manufacturing giving price edge
• Untapped channels like Modern
Retailers, many Regional Retailers and
Online channel

THREAT

• Competition setting up their factories for


refrigerators
• Ever growing list of new entrants especially
Chinese brands
• Competition introducing far better looking
and utility models
• Price can never be an entry barrier
KEY LEARNINGS

Key takeaways
#1 India is making slow but steady progress on improving its logistics capabilities and infrastructure.
#2 Some regulatory enablers such as GST and other initiatives around logistics parks are also expected to
improve the supply chain cost structures and overall capability in the country.
#3 Multi-channel strategy with a focus on custom-supply chains by channel could yield significant benefits for
the industry players.
#4 Adoption of automation and technology are on the rise with a focus on not just a short-term outcome but
gearing up the supply chain for the future.

● The benefits of connected devices can only be unleashed by a collaborative approach.


Manufacturers of smart devices, companies specialising in interpreting data and developing
statistical algorithms, urban planners, medical fraternity, telecom companies should come
together and invest in developing specific use cases that provide social and economic benefits
on a much larger scale. While some steps have been taken in the last few years, much wider
engagement will be required in maximising the opportunities.
● The organisations heavily rely on multi-tiered sales network to capture new markets and
customer segments while controlling costs. The channel not only helps organisations
achieve scalable growth and increased market penetration but also allows them to increase
focus on developing new products, assessing demand and improving after sales support. The
profitability and growth story of channel partners is one of the key determinant for success of
any brand.
● The other challenge with a distributed network is limited visibility of proof of execution
of marketing activities and effective execution by fleet on the street. Consumer electronic
companies are on their toes to rightly place their products at all times in the market amongst
consumers. Marketing and advertising spend forms a chunk of their operational expenses
which come with inherent risks. Today, companies are using geo-tagging technology to
monitor outdoor advertising as well as the location of their staff. The sector in the future will
enable seamless integration and exchange of information in the channel. Some of the most
common pain areas identified during our survey related to leakages due to excess incentive
payouts and stock compensations.
● Due to the introduction of subvention plans and zero interest finance schemes; companies
often end up financing products that have not yet been sold, or worse yet, that belong to the
competition. Current solutions that exist for channel partner monitoring and governance
such as partner reviews, audits, physical verification etc. are detective in nature and only offer
a partial solution.

Skill Development
 Analyzing quantitative data, statistical data or human social situations

 Appraising or evaluating programs, services or performance of individuals.

 Assuming responsibility for varied duties and job function and taking initiatives

 Compiling statistical data, facts or information.

 Time management

 Consumer Behaviour pattern

 Segmentation of Target Market

 Pricing Strategies

 Demonstrating the ability to perform certain job functions previously unknown

 Finding and researching information from various sources or people that can be
helpful

BIBLIOGRAPHY
Sources of Information
DIPP
Aranca Research
ICE 360 Survey 2016
Kelvinator Investor Presentation August 2017
www.ibef.org
Face to face interactions with top level management of SanKel
Personal research and surveys
The Hindu
www.theeconomictimes.in
Edelweiss Investment Research – Impact Analysis of Custom Duty Hike on Consumer Goods
MIRC annual report
www.wikipedia.org
Company websites

Vous aimerez peut-être aussi