Amrish Beahor

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A

PROJECT REPORT

ON

DEVELOPING MARKETING STRATEGIES FOR LUMINOUSPRODUCTS IN DELHI-NCR

For

Submitted in Partial Fulfillment of

Post Graduate Diploma in Business Management, Programme

(Approved by AICTE, Ministry of HRD, Govt. of India)

Summer Training Project

Under the guidance of :- Academic Guide:-

Mr. AJAY JAIN Mr. SHAYANDEV MUKHERJEE Mr. L.RAGHVAN(Manager Marketing) (Manager Special Project) (Faculty Member)

SAR SILICON SAR SILICON EMPI B SCHOOLSYSTEMS PVT. LTD. SYSTEMS PVT. LTD.

Submitted by :

AMREESH BEOHARRoll No. -07 B

PGDBM (2004-2006)

EMPI BUSINESS SCHOOL,NEW DELHI.

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ACKNOWLEDGEMENT

It is with deep sense of gratitude that I wish to acknowledge and thank people

who have guided and supported the study, without which the study could not

have been done.

Firstly, I would like to express my sincere thanks to Mr. Shayandev Mukherjee,

Manager Special Projects (SAR Silicon Systems Pvt. Ltd.) for assigning me the

project titled DEVELOPING MARKETING STRATEGIES FOR LUMINOUS

PRODUCTS IN DELHI-NCR the project set the arena of immense learning and

educated me about the market and its functioning.

I would like to thank Mr. Ajay Jain, Manager Marketing (SAR Silicon Systems

Pvt. Ltd.) under whose guidance I came to know about the practical aspects of

marketing. My sincere thanks to him for his kind patronage, constant aid and

support provided to me during my stay in the company.

The assistance and training given to me by technical trainer Mr. Deepak has

indeed helped me to coupe with the quires and packed me with the knowledge

about the products. His contribution to my knowledge base was of great help I

thank him.

I am highly thankful to Mr. L.Raghvan, academic guide and faculty member,

EMPI Business School, for his valuable guidance and support. His acceptance tobe my academic guide its self speaks for his kindness and generosity. Sirs

assistance and time to time evaluation of the work has resulted in my confidence

and the end result of the project.

Last but no the least I am greatly thankful to Prof. Suman Sarkar (Director, EMPI)

for taking keen interest in this project and facilitating me, the road map to SAR

Silicon Systems Pvt. Ltd. through summer placements in the campus.

Amreesh Beohar

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INTERNAL FACULTY CERTIFICATE

This is to certify that Mr. Amreesh Beohar of EMPI Business School, New Delhi

has successfully completed an original project titled Developing Marketing

Strategies for Luminous Products in Delhi-NCR for SAR Silicon Systems Pvt.

Ltd.

This project has been done in partial fulfillment for the award of the Post

Graduate Diploma in Business Management (PGDBM) for the academic session

2004-2006.The student has remained in touch with me and has completed the

project to my satisfaction and as per the requirement of the course.

Date: Signature:

Mr. L.RaghvanFaculty Member

EMPI Business School, New Delhi

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CON TENTPage no.

1) Executive Summary 52) Chapter 1 7-21

IntroductionBrief Profile of Company 7Brands 14Products-Details 16

Objective of Project 19

Scope of Project 20 Limitations of Project 21

3) Chapter 2 22-26Research Methodology

Market Research 22Data Collection sources and techniques 23Sample Plan 23Field Work 24Assumptions of Project 25Marketing Mix 25Distribution Network 26

4) Chapter-3 27-37Findings and Analysis

Inverter 27RO-System 33Features Comparison 38Price Comparison 40Evaluation 41

5) Chapter-4 42-43Recommendations and Conclusions

Recommendations 42Conclusion 44

6) Chapter-5 45 Appendix

Questionnaire 45Bibliography

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EXECUTIVE SUMMARY

The present report is based on a study conducted by myself, Amreesh Beohar,

on behalf ofSAR Silicon Systems Pvt. Ltd.. The aim of this research was to

analyse the present width and depth ofInverter and RO-System market in

Delhi NCR. A survey was carried out and the data collected from it was analyzed

and interpreted. The area of the survey was restricted to Delhi NCR and some

parts of Haryana. Now this information is presented in the form of a report.

Founded in 1988 by Mr. Rakesh Malhotra, the SAR Group is a Delhi based

group of companies which started with the marketing and distribution ofDB UPSand Standard Batteries. SAR has also handled the distribution of Lubricants for

some time. SAR has a national network of more than 4000 distributors and

dealers with a service hub in each state. SAR Group exports its products to 28

different countries with 25 million satisfied customers.

SAR Silicon a subsidiary of SAR Group is the marketing company for

Luminous products in India and Overseas. It has a wide range of product

portfolio. It includes Inverter, RO-System, Electric Geysers, Gas Geysers, UPS,

Electric Iron, Desert Coolers, Stabilizers and Batteries.

Luminous Inverters are very rich with its features, which no other competitor in

the industry has matched. Excellent aesthetics makes the brand more

presentable. The Luminous RO-System in the market are washing out the

competitors share.

CricketerMr.Navjot Singh Sidhu is the brand ambassador for Luminous.

Luminous has been voted as No.1 Digital Inverter in Consumer World

Award-2004 and designated as Mera Brand.

Major finding of the project was that the people willing to buy an Inverter lay more

emphasis on after sales service.

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Chapter One of the report deals with the objectives of the project, need for the

project and scope of the project, its extent and limitations.

The second chapter deals with the methodology of the research. It describes the

data collection sources, instruments, fieldwork plan, etc.

The third chapter contains the representation of data through graphs. Both

quantitative and qualitative analysis of the data has been presented.

Fourth chapter includes recommendations made by the researcher and the

conclusion of the project with its limitations.

Chapter five is the appendix, which includes a copy of the questionnaire used,

data collected and pamphlets of Luminous products.

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CHAPTER-1

INTRODUCTON

A BRIEF PROFILE OF COMPANY

Founded in 1988 by Mr. Rakesh Malhotra, the SAR Group is a Delhi basedgroup of companies which started with the marketing and distribution ofDB UPS

and Standard Batteries. SAR has also handled the distribution of Lubricants forsome time. SAR Group is having Sales Turnover of more than 1500 millionIndian Rupees, A company well-managed by technocrats and professionals.SAR Group is one of the leading players in India in the field of Powerconditioning products & services, IT services and Software development inGISAM/FM & CAD. SAR Group operates all over India with over 400professional employees (including 100 engineers.)

Vision :To continuously develop and deliver innovative technology & services that meetever changing consumer needs.

Mission :To be amongst the Top 3 providers from India in the areas of Packaged Power,Comfort Appliances and Home Improvement Products ad Related Services bythe year 2010.

CORPORATE PHILOSPHY:SAR Group shall strive to become one of the leading provider of marketing,distribution and customer support services in the field of Power conditioning,Emergency Power Systems, Electronic components & Information technology,through innovation, motivation of employees & channel partners and ongoing

Human resource development.

At SAR Group, we are committed to proved good quality & reliable products andservices that meet of exceed the stated and implied needs of our customers.

Through practice of our quality policy, we will attempt to achieve sustainableGrowth for Our Employees & Channel Partners and Attractive Return OnInvestment for Our Share-holders.

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Milestones achieved by SAR Group

1992 - Direct Sales of Luminous Inverters.

1994 - Luminous Inverter Channel Sales initiated.Luminous UPS Launched.

1997 - Sar Softech Pvt. Ltd. is established.Sar Adventure Tourism & Holidays Pvt. Ltd. is established.

1998- Luminous Inverter Channel Sales Delhi NCR.1999 - Luminous Inverter Channel - North India.

2002 - Luminous Inverter Channel - National Penetration initiated.Luminous LPG Geysers Launched.Tez Inverters Launched.

2003 - Luminous Inverter National Reach through 100 plus distributors and 4000plus resellers and growing.Luminous Electric Storage Geysers Launched:February 2003.India's First Zero Pollution Inverter Launched - Luminous Bi2 Zero P:May

2003 - Luminous Tiranga Inverters Launched: July 2003Luminous Water Purifiers (UV and RO) Launched in Delhi & NCR.Luminous LPG Geysers Launched: November 2003Luminous Emergency Light Launched:November 2003

2004 - Tez LPG Geyser Launched: January 2004Luminous Eagle Picher Technology Tie-Up: Feb 2004Luminous Coolers Launched: March 2004Tez Coolers Launched: March 2004Luminous EaglePicher Batteries Launched: April 2004Luminous iON Inverter Launched:August 2004

2005 - Luminous Minimax Inverter Launched: February 2005Luminous Crystal RO Water Purifier Launched: March 2005Luminous Home UPS Launched: May 2005Luminous Sinewave Inverters Launched: May 2005

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Business Portfolio of SAR Group

Under SAR group there are different business divisions and Companies, eachfocused on its business domain. Namely these business divisions areSAR Silicon Systems Pvt. Ltd.

- Power Solutions Group- E Business Group

- Emergency Power Group- Industrial Battery Group- Network Solution Group

SAR Softech Pvt. Ltd.- GIS Software Solutions and Data

Conversion Services- IT enabled services- e-Commerce & Business Software

development services

NOQSERVICE.com Ltd. - High tech multi product, multi brand Homeappliance repairs and service.

SAR Adventure Tourism & Holidays Pvt. Ltd.- Adventure tourism, package tours, events,

ticketing Domestic and International.

Business Activities of SAR Silicon Systems

Power Solution Group:

Power Solution Group ofSAR Silicon Systems is focused to provide end-to-endsolutions in enterprise-wide power conditioning and emergency power toCorporate offices, Telecommunication Service Provider, Data centers, Healthcare centers and Process Industries. Our accumulated experience of over adecade in power conditioning & emergency power gives our customers thecategorical advantage of obtaining the most cost-effective & reliable powersolutions by maintaining just a single point of contact.

Equipped with an infrastructure and an experienced in-house technicalmanpower, we provide the full range of activities desired by our customers, which

include

Products :- UPS Systems (1 to 500 KVA)- AC to DC Rectifiers- DC to AC Inverters- Servo Controlled Voltage Stabilizers (1 to 300KVA)- Ultra Isolation Transformers (1 to 200 KVA)- Batteries (VRLA, Tubular, Plante, Ni-Cad etc.)

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Services :

- Evaluation of precise power requirement by conducting

power audit

- Design of reliable & the most cost-effective solution

-

Supply of quality reliable system & equipment

- Testing & commissioning of system & equipment

- 24 hours a day 365 days a year operation &

maintenance services

Emergency power Group :

Emergency power Group ofSAR Silicon System is focused in marketing,Distribution & Service of consumer durables to end customers through a widenetwork of dealer channel throughout India.

- Luminous Brand Inverters

- Luminous Brand desktop UPS Systems

- Luminous Brand Stabilizers

- Luminous Brand online UPS (1 110 KVA)

- Luminous Brand Coolers

- Luminous Brand Emergency Lights

- Luminous Brand LPG Geysers

-

Luminous Brand Electric Geysers- Luminous Eagle Picher Brand Battery

- Tez Brand Inverters

- Tez Brand Coolers

- Tez Brand UPS Systems

- Tez Brand Stabilizers

Industrial Battery Group:

Industrial battery group ofSAR Silicon Systems is focused in Sales & Marketing

of Industrial batteries to Corporate Houses, Industries, Power plants,Telecommunication Service Providers.

Products :

- Valve Regulated Sealed Lead Acid Batteries.

- Tubular Plate Flooded Lead Aced Batteries.

- Plant Plate Flooded Lead Aced Batteries.

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- Motive power traction batteries.

- Inverter Batteries.

Services :

- Pre-sales Battery Sizing & Selection Services

-

Initial Charging & Installation Services- Battery Testing Service.

- Battery Repair Service.

Network Solution Group :

Network Solution Group of SAR Silicon System is focused to provide IT relatedservices for corporate offices, Telecommunication Service Providers & Datacenters.

Services :

Networking Services

- New Network Design, Configuration & Proposal

- Exiting Network Analysis & Recommendation

- Network Management

- Network Security

- Network Cabling

Hardware Maintenance Services

-

Third Party Computer Hardware Repair

- Annual Maintenance Contracts

- Virus Control

Facility Management Services

- System Management

- Server Management

- Software Management

- Desktop Management

-Network Management

- IT Asset Management

- Vendor Management

Business Activities of SAR Softech:

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SAR SOFTECH Private Limited has been incorporated to provide the best andmost appropriate technology solutions and services to the local as well as globalmarket. SAR SOFTECH is equipped with latest IT related infrastructure andexperienced, skilled and well motivated software professionals and engineers,dedicated to provide most efficient, on time and cost-effective IT related services.

GIS Data Conversion Services

- GIS, AM/FM, LIS Data capture and Database

creation

- Digital Land base Mapping.

- Utility and Facility Data Capture and Updation.

- Map Data Conversion and Digitization

- Data Translation (CAD to GIS Software)

- Digital Cartography

-Photogrammetry processing and production

e-Commerce & Business Software Development Services

- Database Application Development

- Geo-marketing Application in GIS Software

- Intranet & Internet Programming

Business Activities of NOQSERVICE:

NOQSERVICE is specializing in repair, maintenance and upgrade of your hi-techequipment. Color TVs, Audio Systems, ACs, Personal Computers, Generators,Invertors and UPS systems. NOQSERVICE possess a state-of-the-artinfrastructure, manned by highly skilled personnel.

Services

- Repair Services of Consumer Electronics & Home

Appliances

- Annual Maintenance Contracts

-Up-gradation of existing equipment

Business Activities Of SAR Adventure Tourism & Holidays:

SATH is a full-fledged service, inbound/outbound hospitality and destinationmanagement company.

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Services

- Customized Group Conference Program

- Holiday Program

- Ground Services

- Air Lines Ticketing

Some Major Satisfied Corporate Clients

Banking & Finance companies

* American Express* Citi Bank* Bank of America* Chase Manhaton* Barclays* Credit Lyonnaise* Standard Chartered

bank* Grindlays Bank* Sanwa Bank* Bank of Tokyo* ABN Amro Bank* Honkong &Sanghai

Banking Corp.* Canara Bank* Syndicate Bank* Reserve Bank of India

Press & Media Companies* Times of India* Pioneer* Indian Express* India Today* Business Today* Press Trust of India* New Delhi Television

(STAR NEWS)

Hotels & Airlines

* The OberoiHyatt Regency

* ITC WelcomeGroup of Hotels

* Taj Group of Hotels* AIR India* Lufthansa* KLM Dutch Royal

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Airline* Jet Airway* Swiss Airways* United Airlines

BRANDS

LUMINOUS : INVERTERS, UPS, WATER PURIFIERS,

STABILIZERS, COOLERS & GAS GEYSERS

LUMINOUS EAGLE PICHER : BATTERIES

TEZ : INVERTERS, UPS, COOLERS & GASGEYSERS

DB ELECTRONICS : UPS (Only Marketing)

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REACH OF SAR

* Channel Partners: > 4000 strong network spread all across the India.* Each ma jo r c i t y / t ow n has a se r v i ce f ac i l i t y a l ong w i t h a

Se rv i ce H ub i n each s ta te .* Exports: 28 cou nt r i es ( I NVE RTE RS & UPS Sys tem s)* Ist in the industry to obtain UL 9001 Certification.

(The manufacturing facility is ISO 9001 certified by UnderwritersLaboratories, USA)

STRENGTHS OF SAR

Rich Experience in Power Electronics Equipments.

R e l i a b l e & D u r a b l e P r o d u c t s .

T e c h n o l o g i c a l l y A d v a n c e d A n d A e s t h e t i c a l l y S u p e r i o r .

A d v a n c e d D e s i g n & D e v e l o p m e n t C a p a b i l i t y .

U n d e r s t a n d i n g E v e r C h a n g i n g C u s t o m e r N e e d s .

P r o f e s s i o n a l & E x p e r i e n c e d T e a m .

L a r g e s t I T E n a b l e d S e r v i c e I n f r a s t r u c t u r e & N e t w o r k .

S tr o ng N e tw or k O f C ha nn el P ar t ne r s A l l A cr os s T he

N a t i o n s .LUMINOUS

Luminous is a brand marketed by SAR Silicon system that pioneered thecountries organized inverter industry and has been a leader in Power Electronicsfor 18 years. An ISO 9000 company, its products are reported to 28 countriesand used by millions across the globe. The company also has a largest servicenetwork.

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o Smart charge + Technologyo Audio Alarms

o No load shut down

o All new range of Home UPS

o DSP Ultra Sine Wave Inverters

UPS SYSTEMS : LINE INTERACTIVE AND ONLINE UPS SYSTEMS

o Wide Input Voltage window (Inbuilt AVR)

o No Load UPS Shut down

o Total Protection to Computer, Printer, Modem, Scanner.

REVERSE OSMOSIS WATER PURIFIER :

WORLDS MOST ADVANCED REVERSE OSMOSIS WATER PURIFIER

o Remove dissolved impurities like salts, pesticides, heavy metals and

harmful chemicals.

o Change hard water into soft watero Enhance taste of water, leaves it odour-free

o No consumable chemical used

COOLERS : EXPERIENCE POWER COOLING

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o Four way air deflection system

o Rust Free, High Impact Resistant ABS engineering Plastic Body

o Extra Tough Motor with multiple speed blower control

o Easily removable wood wool pads with mosquito net and dust filter.

LUMINOUS STORAGE WATER HEATER :

o Superior quality, durable and rust resistance powder coated outer body

with elegant finisho Specially designed inner tank with Extra life

o Extra long heating element

o 40% extra energy savings

o Four level safety system

LUMINOUS LPG INSTANT WATER HEATER :

o 20 minute in built timero Over heating safety device

o Protection against flame failure

o Auto switch off in the absence of running water

o 2 in 1 Pressure release and drain valve

SPAGE AGE BATTERIES : AMERICAN TECHNOLOGY THAT POWERSNASA SPACE FLIGHTS, NOW AVAILABLEIN INDIA

o Maintenance Free Battery

o For Inverterso For Cars

o For Tractors

o For Motorcycles

o For UPS Systems

IN TECHNICAL COLLABORATION WITH EAGLE PICHER INCORPORATED,USA

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OBJECTIVE OF THE PROJECT

The most basic objective of the project is to have a deep insight into the

market and market dynamics and at the same time to measure customer

satisfaction through potential of Luminous products. Out of a range of

products marketed by SAR SILICON SYSTEM PVT LTD, marketing of the

Inverters and RO-System have been focused for a better understanding.

The main objectives are:

1. To understand the competitors strategies and their potential in the market.2. To educate people about the innovate approach of Luminous.3. To find the level of trust of dealers and customers on the Luminous

Inverters.4. To find out the competitive advantages and the drawbacks of the

product.5. To find out the demand potential of Luminous Inverters in the near

future.6. To know the perception of the dealers about the product in respect

to quality, price, delivery and availability.7. To measure the effectiveness of after sales service provided by the

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company to dealers and end users.

SCOPE OF THE PROJECT

The study aims at the analysis of the customer satisfaction of theLuminous products and the level of trust of the customer is also studied indetails. It includes the brands/ companies which is used by the customers.

The area of this study has been selected in Delhi NCR assuming thismarket to be the true representatives of other districts and representing the entiremarket of the state.

No one can win with his eyes closed, but has to remain always alertto observe every aspect of marketing all the time. This survey work has a greatpurpose from the following points of view.

1. To identify the need and expectations of the consumers.

2. To satisfy the customers and the dealers.

3. To formulate effective strategies to edge over competitors.

4. To tighten the belt to get through cut throat competitions.

5. To try different methods for products differentiation.

6. To help- company build brand equity and a base for brand management.

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LIMITATIONS OF THE PROJECT

1) As the market survey is conducted only at Delhi NCR and some parts ofHaryana therefore the findings may not be applicable to other places dueto difference in demographic features.

2) It was tough to make people fill the questionnaire after explaining themthe features of the product due to time boundness.

3) Due to varying nature and basis of customers, it is difficult to get aproper sample size and hence generalization of the findings maynot be done for the entire market.

4) The analysis and inferences is for the current period only and maynot govern and hold good for the future years to come.

5) The study could not be made more comprehensive because of thelimited availability of resources like time, fund and manpower.

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CHAPTER-2

RESEARCH METHODOLOGY

MARKETING RESEARCH

Marketing Research is defined as the function which link the consumer,customers and public to the marketer through information information which isused to identify and define marketing opportunities and problems; generate,

refine and evaluate marketing actions, monitor marketing performance; andimprove understanding of marketing as a process.

Marketing Research specifies the information required to address marketingissues. Marketing Research is the method for collecting information; managingand implementing the data collection process; analyses the results andcommunicates the findings and their implications.

This result is based on the consumers and is an extension of MarketingResearch. This research is conducted with a view to understand prospectivecustomers better and to introduce and modify the products and services of

luminous products.

Some of the activities in carrying this are as follows:-

To form the basis of planning the sales, sales promotion andadvertisements.

To enable the marketers to identify the customers need in the relation tothe product category and to develop potential market.

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To help the management to determine persuasive advertisement appealsand to identify appropriate media choices to reach selected targetedmarket.

To determine the market characteristics potential and share of itscompetitors.

This research consists of four steps. They are as follows:-

Defining the problem and research objectives

Developing the research plan

Implementing the research plan

Interpreting and reporting the findings

The research undertaken in this project is descriptive; it tries to portray accuratelythe characteristics of a particular situation, individual or a group.

A systematic way was followed to achieve the objective of the project.

DATA COLLECTION SOURCES AND METHODS

Two types of data were required for our consumer research

Primary Data

Secondary Data

PRIMARY DATA

This is collected or developed from the field study or field work. In this projectdata and information were collected by a way of specially designedquestionnaires. After that many relevant information were collected through fillingof questionnaires. These questionnaires contained Twenty-Four questions. Thequestions were specific having choices. Information was collected from existingand potential customers. The motive was to know the views, attitudes,

perceptions and various other aspects related to Inverters, Batteries, UPSSystems, Water Purifiers, Coolers, and Geysers etc. Besides, there weredemographic questions which revealed their profession and income group towhich they belong.

SECONDARY DATA

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These data were collected from existing sources or from those sources, whichwere already developed, organized and collected previously. For this studysecondary data were collected from brochures, leaflets and flairs etc. Thesecondary data also includes ideas and views of SAR Silicon Systems Pvt. Ltd.,website of the company and the guide under whom we were doing the project.

SAMPLE PLAN

For collecting primary data and having an unbiased study, I collected the datafrom people from varied demographics like Govt. Servants, Private job holders,housewives, young generation. Data was collected from Market Place, peoplecoming to canopy,from Panipat Electronics Trade Fair, Ballabhgarh and otherparts of Delhi NCR.The sample size is taken to be 100.

FIELD WORK

The summer training started with three days of rigorous training. The training ofthe technical specification ofInverterand RO-System. As per the project title Iwas supposed to study the market to marketing recommended strategies for theLuminous products. My task was to be accomplished through the existing dealernetwork in Delhi NCR and also some areas ofHaryana.For the promotion of the brand and educating the customer about the productfeatures Road Shows were organized in which at the dealers place or nearbypublic place canopy was put up. In the canopy for the display purpose

aesthetically rich Luminous Inverters were kept which were self sufficient toattract the people.

Queries were collected from the people and if they are unsatisfied on somegrounds the request was forwarded to the higher authority.

On every Monday I presented the report to Mr. Ajay Jain. The workinghours for me were from 1:00 pm to 9:00pm depending upon the market responseand all 7 days a week. While leaving the dealers place I was supposed to submitall queries to the dealer for further follow-ups.

Along with educating people the features I also collected the grievancesthat current users are having related to service and forwarded it to the servicedepartment.

Panipat trip:

During my course of the trainning I got the opportunity to travel to Panipat(Haryana) to represent company for a 5 day Electronics Trade Fair inpanipat. We were assigned three stalls for promoting the products. For thepromotional purpose company has launched a scheme where first price wasNepal Trip for two people, second price as MINIMAX Inverter and third price as

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Luminous electric Iron. But on the second day a breaking newspaper headlineriots in Kathmandu made me change the promotion scheme as giving anelectric iron free on purchase of every Inverter or RO-System. And if peoplewere not willing to have free gift than we gave some cash discount equal tocost of the Iron. Till 5th day I was successful in converting 22 Inverters as asale.

ASSUMPTIONS OF THE PROJECT

1. The response given by the respondents are correct and reveal true-lifepicture.

2. The sample taken in this study and the results obtained will give an overall

picture of Delhi NCR as a whole, if extended.

MARKETING MIXLUMINOUS

PRICE

LUMINOUS adopts highly systematized and efficient strategy. But as the presentstate of its brand as well as its consistently healthy performance shows thecompany has not been compelled to adopt this strategy with a view to securing

the largest market share. This strategy holds importance only when the productcan be put under the fabric price sensitive, there appears to be considerablescope for strong competition, and the companys unit manufacturing costs godown within companys scale of production and accumulated manufacturingexperience.

The price ofLUMINOUS is high in comparison to the prices of products of othercompanies, i.e. MICROTEK and SU-KAM. It is because of the high quality of itsproducts that the company has not only maintained but enhanced its sale in spiteof high prices of its products.

Now the brand name of LUMINOUS is well established in the market, and thisadds another dimension to the becoming success of its products.

PLACE

LUMINOUS stands out as one of the most reputed names in the power back-up.With its brand such as UPS-H and ION SINE WAVE as well as its ever soaringsale, the company has earned an enormously vast niche for itself in the Indianmarket.

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The basic strategy of this company rests on its skilled, all-pervasive distributionnetwork spread out in every corner of the country. It has short rooms in almostall the big and small cities over the landscape of India.

Its products have got a considerable grasp over the grassroots. However, inspiteof the fact that it is a comparatively new players in the booming oligopoliticmarket, the range of its popularity and accessibility to the masses has beenenormous. This has been largely possible due to the efficient corporation andassistance, it has been able to drive from its distribution.

PROMOTIONAs one of the power generation giants of India, the company is poised to takenew strides in order to the promote its products like UPS-H and ION SINE WAVEinverters.

The essential objective of its promotion strategy is to bring to its products ahost of consumer with ease, perfection. They use extensive promotionaltechniques like Broadcasting Media, Sales Promotion, Demonstrations,Point of Purchase (POP) display, road shows.

In all this, the company has successfully shown that it believes indelivering the best products to the consumer.

Today the company has emerged as the market leader in the power generationindustry.

Promotion Strategies :The basic characteristics of promotion strategies adopted by Luminous is itsemphasis on advertisement through various channel. These channels whichhave a comparatively more effective base of viewer ship are targeted in the firstplace.Secondly, the company has left now stone unturned to get Zonal and regional

offices, show rooms and outlets set up at every place with a potential consumerbase.

Hoardings : This is one of main promotional tools of Luminous. Theyhave installed their hoardings on highways, electric poles etc.

Advertising : the company has, over the last few years, spent a lot onadvertising in leading newspaper and media channels including theelectronic media channels.

The company is giving more emphasis on opening new outlets at variousplaces by keeping the tastes and preferences of the customer in mind.They are also trying to give more emphasis on the customer service at

their outlets. It is also organizing road shows at various places so that the brand

because more and more popular.

PRODUCTThe Luminous models is being increasingly used by both high and lowincome group people in rural and urban areas as a means of powergeneration. The company is launching new products to keep face with thecompetitive market.

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Distribution Network

Strategic Innovations :The strategies of Luminous involves :

Process control quality

Self inspection defect prevention through

Not to receive defective parts

Not to produce defective parts

Chapter-3

FINDINGS AND ANALYSIS

INVERTER

27

Factory

Distributors

Showrooms

Consumers

Direct DealersRetailers

1)Do you have power cut in your locality

Yes

67%

No

33%

Yes

No

Analysis:-Among 100 intervieweessaid they are interested in power b

market untapped.

2)Interested in Power-Backup

Yes

73%

No

27%

Yes

No

Analysis:- About 73% of people are

willing to have Power back up.


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28

3)Gadg

35%

33%

2% 3%

Analysis:-When more than one gadget wasrecall from total Of 130 ,45 people recalledGenerator and 43 Inverter. People still lack in

recalling Inverter as solution to their problem,so enough job is to be carried out onpromotional front.

4)Bran

35%

Analysis:-Among the brands more recalledSu-kam got 35 out of 102, 30 for luminousand 29 said Microtek.


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5 ) D o y o u h a v e a n I n v

Y e s

2 3%

No

7 7 %

Y e s

No

6)Which Inverter d o you h

43 %

9%13% 0%

35 %

Luminous

Su-Kam

Microtek

A PC

Others (Loc

Made)

29

Analysis:- On the scale of 100, 77people dont have an Inverter.

Analysis:- Out of 23 people whohave Inverter Luminous-10,Su-kam-2, Microtek-3, Others-8


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7)L ike to buy Inver te r in near

Y es

59%

No

41 % Y es

No

8)Price range in which you would like to buy

28%

49%

19%

2% 2%

>3000

3000-8000

8000-13000

13000-18000

18000 27,

8000-13k ->10 people is willing to pay.Price is a critical issue as competitorsare less priced in comparison.


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9)L ike to buy under f inance s

Y es

45 %

No

38 %

Don't kno

17%Y es

No

Don't kno

31

Analysis: 45 people say Yes forbuying under finance Scheme but 17people say it will depend on theScheme and rest will be settling forcash.


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10)Features more preferred

11%

19%

21% 24%

17%

2%6%0%

0%

Looks

Price

Performance

Service

Warranty

Size and Weight

Others

a) Rating Of inverter

b)Back-Up

c)Durability

11)Promotional media most Pre

37 %

12 %5%7%

8 %

12 %

19 %TV

N e w sp a p e r

Pam phlets

Hoard ings

R o a d sh o w s

Radio

Word of Mou

32

Analysis: -Three best features were to beticked so the count is 202.Among them mostpreferred Is After Sales service 46,performance-41, price-39.

Analysis:- A total 146 marked were there ofwhich 53 gave their first choice as TV,28 goes to Word Of Mouth,18 to Radio.


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RO-SYSTEM

1)Do you get clean water in your locality

Yes

35%

No

52%

Don't Know

13%Yes

No

Don't Know

33

Analysis:-100 interviewees 52 dontknow whether they are getting cleanwater or not.


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2)Intertes ted in ge tt ing clean

Y es

81 %

No

19 %

Y es

No

3)Gadgets Rec

30%

38%

12 %

14 %2% 4%

UV Filter

Candle Filter

Zero-B

RO

e-Boiling Sy ste

Boiling w ater

34

Analysis:-81 people are very keen tohave healthy water. Good market to betapped on.

Analysis:-Among 103 gadgets recalledcandle filter Got 40 votes, UV filter as31,RO as 14.


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4)Heard of a RO-Syste

Y es

31 %

No

69%

Y es

No

5)Demo place preferr ed

53%

21%

22%3% 1%

Home

Showroom/Shop

Other- a) Market

Place/Public Place

b)Installed

Place

c)Office

35

Analysis:- There are still 69 peoplefrom 100 who havent heard of RO-System hence enough scope.

Analysis:-The demo of RO Systemwas most preferred at homes, followedby public/market.


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6)Pr ice band prefe

5335

12 0%

>50 00

5000 - 10,000

10,00 0-15,000

15,00 0 and abo

7 )Fin a n ce s c h e m e d e

Yes

51

N o

22

D o n ' t Kn

27 %Yes

N o

D o n ' t Kno

36

Analysis:-Most people preferred tobuy in a range of less than 5000, thanchoice was between a price range of5000-10,000.

Analysis:- 51 People showed their interestin buying RO under finance scheme,another 22 said they will decide on scheme.

8)Features

11%

22%

15%24%

15%

11%

1%

1%Looks

Price

Performance

Service

Warranty

Water Capacity

Others a) Space

b)Process


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9 ) B r a n d R

1 8

3 0

9 %6 %

3 7

L u m in o u

K e n t

Pe n ta ir

U s h a

A q u a G u

37

nalysis:- Of the 185,most selectedature is service the example wereways quoted of prompt service of Eurekarbes, than comes Price factor.


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10)Prom otional Me

35 %

16 %3%7%9%

11 %

19 %

TV

New spaper

Pamphlets

Hoardings

Road show s

Radio

Word of Mou

* For details sorted data in Excel sheet is attached.

Features Comparision

Features Luminous ionDigital Sine

Wave 800

Su-Kam 800VA Sine

Wave HomeUps

Microtek 800VA Sine

Wave

Comments

Surge LoadCapacity

1100 w bulb 680 w bulb 700 w bulb Luminous ondigital sine

wave inverteris sufficientlyrated to take

care of higherinrush currents

38

Analysis:-Most recalled brand was AquaGuard of Eureka Forbes i.e. out of 33 12people have recalled ,followed by Kentwith its recent ,Ad-campaign endorsedby Hema Malini.

Analysis:-TV media holds on top to havea maximum reach, word of mouth whichworks well in India news paper is nextpreferred.


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for betterreliability and

to ensurestarting of

motor/ Tv typeof loads.

Noise No noise ininverters aswell as in

appliances

Irritating highfrequencynoise frominverter

Irritating highfrequencynoise from

inverter

Only Luminoussine waveinverter

provides safe

and noise freeoperation

Charging timerequired for a

batterydischarged at

75% dod

8.55 Hrs. 11.20 Hrs. 11.0 Hrs. Faster charging

ensures betterbattery back upat the time of

frequent powercuts and longer

battery life.

Aesthetic

appeal andcompatibletrolley

Excellent look

with suitableplastic trolley

Average looks

and nomatchingtrolley

Good looks

with trolley

Customers

aspire to buybetter lookingproducts.

Back up time Higher backup due to

higherefficiency and

fastercharging

Normal Normal Back upavailable withluminous ismore than

others.

Load capacity Able to take11 tube lights,

runs almostall type ofhouse hold

loads

Can handleonly 9 tube

lights

Can handleonly 9 tube

lights

Luminous sinewave inverters

runs the ratedload and evenmotor load

Voltageregulation

210v+-/10% 210v+-/10% 210v+-/10% Sine waveinverters

regulate theoutput voltage.

Technology Digital signalprocessingtechnology

with MotorolaDSP

Micricontrolerbased design

Micricontrolerbased design

Motorola DSPhas much

higher

capability thanamicroprocessorto ensure fullfeatured and

reliableinverter.

No loadpower

consumption

19.0 w 24w 22w Helps in better battery backup

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Dc Fuse Availableoutside the

inverter body

Availableinside theinverter body

Availableoutside the

inverter body

Easy toreplace ifavailableoutsideinverter.

Display Digital display Led display Lcd display Digital displayand lcd display

are moreadvanced.

Short circuit

protection inmains mode

Through MCB Through fuse Through reset

able circuitbreaker

Mcbs are

much saferand easy torestart

Short circuitprotection inmains mode

Ultra fastcircuit

protection

Very slowprotection

Fast shortcircuit

protection

Very slowprotection willnot be able toprotect unit

againstdifferent kind of

short circuit

PRICE COMPARISON CHART

600 VA

COMPANY MRP DIST.PRICE

SCHEME EFF.RATE

DLR.PRICE

SCHEME EFF.RATE

Luminous 4975 3750

Microtek 5050 3590

Sukam 5200 3177 3750

800 VA


SCHEME EFF.RATE

DLR.PRICE

SCHEME EFFRATE

Luminous 6425 4690

Microtek 6300 4390

Sukam 6200 3713 4400

800 VA Sine Wave

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SCHEME EFF.RATE

DLR.PRICE

SCHEME EFFRATE

Luminous 8650 6390

Microtek 8490 5099

Sukam 8500 4698 5600

1400 VA


SCHEME EFF.RATE

DLR.PRICE

SCHEME EFFRATE

Luminous 8500 6150

Microtek 8900 5950Sukam 7300 4945 5850

EVALUATON

Luminous with its wide range of innovative features stands tall in market incomparison to its competitors. Luminous has a strong network of more than4000 in its channel network. Delhi NCR itself has around 250 distributors anddealers.

Exclusive Luminous Gateways all over the country are the places toexperience the Brand Luminous. Luminous products are aesthetically very rich

and highly presentable than its competitors. Adding to its portfolio recentlaunched UPS-H model and ION SINE wave digital inverter are ahead of itscompetitors in all aspects.

SAR Silicon has a continuous training program for its service team to givecustomers more value of money. It also runs training modules at distributor anddealer level to make them much acknowledged with the products.

Company is very active in promotions and educating the people about thefeatures of Luminous Inverter. Road shows organized by the company keepthem in touch with the people directly.

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Company has launched an exchange scheme forRO-Systems and financescheme for both Inverterand RO-System. The finance scheme has incollaboration with GE Finance and BAJAJ Finance.Company lay good emphasis to prove its presence in Trade Fairs in various partsof India.R&D part has been taken care by the company very actively. In regular intervalskeep updating its products.Although the price of the products ofLuminous is high in comparison to itscompetitors but the features and quality it delivers is unmatched in the industry.Company keeps updating its marketing strategies as per the changing marketsituations hence in this sense its very adaptive.

CHAPTER-4

RECOMMENDATIONS AND CONCLUSIONS

RECOMMENDATIONS BASED ON OBSERVATIONS

1) After Sales service:

After sales service network should be made much stronger for both Inverterand RO-System its must as the RO-System needs regular visits from theservice team. For Inverters bought once the running cost to maximum extentis on the batteries and since the company is into batteries also so job ofretaining the customers will get and edge.

2) Motivation to Dealers:If dealers are given some motivation to sell the brand other than the profitmargin than they will be able to push the product. Product doing well willgenerate a positive word of mouth and later will lead to pull market.

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Here motivation can be on achieving a specified target dealers are sent tosome domestic or foreign trip. In Indian economy as the hospitality industry isgrowing up and foreign trips are getting cheaper and cheaper it will be abenefit. As per the human psychology experiences are cherished more thanphysical benefits. This kind of step will lead the dealers to have an emotionalattachment with the brand.SAR Silicon has an advantage over others as one of the company ofSARGroupSAR Adventure Tours and travels is their sister concern.

3) New Market Arising:Growing real estate business all over India can also of great benefit to thecompany. Newly developed townships are giving more value to theircustomers by putting up an Inverter and RO-System in every house in thetownships. So targeting these townships will make organization sell itsproducts more in numbers.

4) As a Solution for Gensets:The markets in Delhi like Sarojni Nagar, Lajpat market etc. which are facingelectricity problems and are using Gensets as a solution their the customersget their mind turned-off because of the noise created. This kind of marketsban tapped and advantage of Inverters over their current Gensets can beexplained. A strategy can be developed to have an exchange offer of sellingInverter and taking Gensets.

These Gensets can be serviced if necessary and sold to the small shopsor houses in urban or rural areas where they cannot afford to buy newGenerators. As the market in the city comes to saturation we will have ourrural market ready where the advantages ofInverterover Gensets can beexplained and sold. Thus Luminous will be able to tap a new market.

5) Striking a deal with Other Companies like Maruti etc.:Company can strike a deal with small and medium car manufactures likeMaruti, Hyundai etc. to offer free Inverter/RO-System on every carpurchase and company will follow up for service. This option can work outwell as per human psychology people tend to buy the things that can beshown to others rather than fruitful to themselves.

If given an option people will prefer to buy a car first than an Inverter or RO-System. So such a free gift will lead to emotional benefit and will also

increase the sell of car.Here the opportunity lies by selling batteries when ever people tend to

replace one. Luminous-Eagle Picher batteries performing well will make carowner ask forLuminous car batteries also and possibly for their two-wheelers also. But for this initially battery needs to be a part of the free offer.

6) Corporate Social Responsibility (CSR):As a part ofCorporate Social Responsibility (CSR) company can offer the

government teachers an Inverters and RO-Systems under special finance

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scheme which can be termed as Honouring the Gurus orGuru Sewa.In the recent past Maruti has launched such a scheme and earned hundredsof millions.

7) Being more Media SavvyBeing in news leads to retaining the brand in the minds of the customers.People feel that there is always some happening in the company. Thisleads to trust in the minds of the people. So being in news on some of themost circulated dailys of the country like Navbharat times, Dainik Bhaskar,Punjab Kesri etc.(Hindi dailys) and others English dailys as HundustanTimes, Times Of India. This news can be apart from the advertisementspublished.

RECOMMENADATIONS BASED ON DEALERS SUGGESTIONS

1) Improvement of after sales services.2) For the schemes launched results should be communicated to distributors anddealers.3) Complete product catalogue should be given with all products of Luminous tomake people aware about other Luminous products.4) Multi brand dealers dont find enough reasons to sell Luminous due to pricewar as other brands are offered for less.

RECOMMENDATIONS BASED ON FINDINGS

1) Price point of view most of the people want to buy Inverter in the range of Rs.3000-8000.So Company should provide the customers the products closer to lower range.2) People are will to have a good finance option but some couldnt make decision as forthem scheme details will be the deciding factor. So company could promote such scheme bdetails have to be reached out in details to the customers.3) After sale service and performance of the Inverter values most to the customers socompany could give more emphasis on them.4) Promotion of the brand through Television and Word of Mouth is most acceptable fomaking the purchase decision. So delivering a quality product will lead to spread of good womouth and reaching more and more people through Television advertisements.

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CONCLUSION

After going through the survey and working with dealers I came to conclusionthat Luminous needs to improve more on After sales service.

Comparing with the competitors the price of Luminous products is high whichmotivates people to buy other brands.

The dealers especially multi-brand dealers should be given enough reasonsto sell the products of Luminous.

As the sector is not fully organized and people still prefer to rely on theirelectricians and go for unbranded Inverters. So a good possibility lies withLuminous to educate the people about the features.

From the survey of RO-System category people were more willing to havethe demo at their homes or at the market place. Company should take steps inthis matter to put customers on ease.

I found a widely strong network of Luminous dealers which is the strongestpoint for the company.I firmly believe that the recommendations if implemented will certainly improvethe market share of Luminous.

Chapter-5

Appendix

Questionnaire

Name :

Address:INVETER

1) Do you have power cut in your locality?

a) Yes b) No

2) If Yes, are you interested in having Power-Backup?a) Yes b) No

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3) What all gadgets can you recall as a solution to power cut ?a) b) c) d)

4) Have you heard of Inverter, if Yes then where and how._____________________________________________

5) What all brands can you recall of an Inverter?______________________________________________

7) Do you have an Inverter?a) Yes b) No

8) (If yes) which onea) Luminous b) Su-Kam c) Microtekd) APC e) Other (specify) ___________

9) (If No) If you are asked to buy an Inverter, are you ready to gofor it?a) Yes b) No

10) If Yes, what do you think the price of the Inverter should be?a)

11) If you are offered an Inverter under a finance scheme would youlike to go for it?

a) Yes b) No c) Dont Know

12) Prioritise three most important features you would look for beforebuying an Invertor

a) Looks b) Price c) Performanced) After sales service e) Warranty f) Size & weightg) Any Other (specify)_____________

13) Which media is more suitable to promote our product?a) TV ads b) Newspaper c) Pamphletsd) Hoardings e) Road shows f) Radio g)

Word of mouth

Water Purifier

1) Are you getting clean water in your locality?a) Yes b) No c) Dont Know

2) If No, are you interested in getting clean water?a) Yes b) No

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3) What all gadgets can you recall as a solution to make waterDrinkable?

_______________________________________________

4) Have you heard of R.O. System, if Yes then where and how.________________________________________________

5) If you are asked to buy R.O. System, are you ready to go for it?a) Yes b) No

6) Would you like to see a demo, if Yes wherea) Home b) Showroom c) Other Place(Specify)

________

7) What do you think the price of a R.O.System should be?a)

8) If you are offered a R.O.System under a finance scheme would youlike to go for it?

a) Yes b) No c) Dont Know

9) Prioritise three most important features you would look for beforebuying an R.O.System.

a) Looks b) Price c) Performanced) After sales service e) Warranty f) Water Capacityg) Any Other (specify)_____________

10) If you are aware of R.O.System what brands can you recall?_______________________________________________

11) If we have such a product than where should we advertise?a) TV ads b) Newspaper c) Pamphletsd) Hoardings e) Road shows f) Radio g) Word

of mouth

Amrish Beahor

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