A STUDY ON MARKETING STRATEGY FOR VOLTAS

Submitted By-

NILESH.S.PAWAR (095105)

SAGAR.D.SURVE (095113)

PRATHAMESH.M.THORAT (095116)

SHREYAS.P.WAGHMARE (095118)

Guided By:

R. S. Nehete.

Vikram Hande.

Market strategy

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

OBJECTIVE

As part of this project, we will be concentrating our analysis on the following focal points

1. Study Customer Behaviour – Understanding the factors responsible for customer buying behaviour.

2. Marketing Strategy of Voltas – Understanding the Marketing plan of Voltas.

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

Contd.4. Study of Customer Segmentation – To study the products of Voltas with respect to the Segmentation of Customer over Family Size, Income, Price, Features etc.

5. Study of Product Differentiation– Variants of Products offered by Voltas Co.

6. Competition faced by Voltas – Analysis of the domestic competitors for Voltas.

7. External Environment of Voltas – Analysis of the Air Conditioner Industry. We intend to run a customer survey, to find out the customer perception about Voltas.

VOLTAS

• Established in 1954 in collaboration with Volkart Brothers, a Swiss firm and Tata Sons Limited.

• Manufactured the first ever room air conditioner in 1954.• Introduced the first innovative split air conditioner in 1984.• Introduced the tall and elegant slimline air conditioner in

1993.• Among the first to launch sub 1.0 Ton ACs.• Introduced Energy Efficient Air-Conditioners in 2007• First to introduce corner split AC in 2009

PRICE & PRODUCT

Vertis Pristine ACRs 28990(0.75 Ton)- 33990(1.0Ton)

Slim Line ACRs 46,990(2 ton)-Rs

66,990(3 ton)

Vertis Split ACRs 15990(1 ton) - Rs34990(2 ton)

Distribution chart

Factory1.Inhouse Manufacturing

2.Outsourced Manufacturing

Warehouse

Distributors

Dealers & Retailers

•Company has adopted a flexible Business Model

•To reach semi-urban and rural Market-Expansion of network of dealers, distributors and retailers in 2009.

PROMOTION• The new advertising platform of ‘ALL WEATHER AC’ • Voltas AC TV commercial is running

across various channels such as NDTV 24X7, Aaj Tak, CNBC, Times Now, Discovery and National Geographic.

Contd.• Print ads - The Times of

India, Hindustan Times.• Websites used- Yahoo!,

Rediff, MSN, Sify and NDTV.com

• Radio campaign on Big FM• Below-the-line activities

across eight metros and Tier II towns.

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

19%

18%

15%7%

31%

VOLTASLGSAMSUNGHITACHIOTHERS

MARKET SHARE IN ROOM AC SEGMENT

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

COMMERCIAL SEGMENT• Caters to Light commercial segment • Products: Venture range of products that includes

Floor Standing (Slim line), Cassette and Ductable Air Conditioners.

• Supported by strong R&D and technical support• Hyderabad International Airport ,ITC Mumbai.

SWOT ANALYSIS

STRENGTHS Design and manufacture of refrigeration

plants Management and execution of Air

Conditioning . Voltas offers many energy saving

techniques Strong R&D

OPPURTUNITIES The high end value driven proposition

helps increase the market share. Voltas is well known for its product

differentiation Promote eco friendliness through their

energy efficient products

WEAKNESS Too keen on targeting the economy

consumer segment only Unable to target the Green conscious

customers

THREATS Due to increased price of

inputs and continued price erosion there is downtrend in the consumer durables market

Technical comparison Parameters Voltas 1.5 ton

Platinum Split ACLG 1.5 Ton LSA5MR5T

Split AC Samsung Crystal + 1.5 Ton

AS18EWH Split AC

Capacity 5275W (COOLING) 5275W (COOLING) 5300W (COOLING)

Functions Cooling Cooling,dehumidifying Cooling, dehumidifying

Compressor High EER Rotary ROTARY -R22 UTR PLUS

Refrigerant Type R-22 R-22

Energy Rating 5 STAR 5 STAR 5 STAREnergy Efficiency 3.35W/W Cooling 3.4W/W Cooling 3.38W/W Cooling

Power Consumption 1575 W 1550 W 1570 W

Energy Save Mode _ yes yes

Filters

Other Filters Anti Dust Filter Dust , Triple Filter Air Purifier,Full HD filterAnti Bacteria yes

Active Carbon Filter yes Net Weight indoor

dimensions 17 kg 13 kg 12.3 kg

Net Weight Outdoor Dimensions 33kg 37 kg 40.9 kg

STPSEGMENTATION TARGETING POSITIONING

Mass Segment Middle Income GroupsAll age groups

Power saving, value for money, Indian factorFamily Factor.

Premium Segment Upper ClassAll age groups

High Technology, New Design.

Commercial Segment In Malls, Offices etc.

•QUESTIONNAIRE ANALYSIS

Q1.WHICH AC BRANDS DO YOU KNOW?

LG

SAM

SUNG

HITACHI

GODREJ

WHIRLP

OOLHAIER

VOLTAS

CARRIER

O GENERAL

BLUEST

AR

VIDEOCON

ONIDA

OTHERS0

5

10

15

20

25

30

35

2830

6 7

3 2

25

811 10

7

1114

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

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

2 HOURS2-5 HOURS

MORE THAN 5 HOURSWHOLE DAY

0

2

4

6

8

10

12

14

16

18

1517

7

1

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

LG

SAM

SUNG

VOLTAS

HAIER

HITACHI

BLUEST

AR

O GENERAL

OTHERS

02468

101214161820

16

11

20

2 4 4 7

18

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

Q4.WHICH AC BRAND HAVE YOU BOUGHT?

9

3

173

3

3

2

2

7

LGSAMSUNGVOLTASONIDAO GENERALHITACHIBLUESTARGODREJOTHERS

Q5.WHAT IS THE MEDIUM OF INFORMATION?

TV

NEWSP

APER

INTERNET

FRIENDS &

RELATIVES

MAGAZIN

ES

OTHERS

02468

101214 13 13

11

14

7

5

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

Q6.WHY DO YOU PURCHASE AC?

COOLING ABILITY

UNIFORM COOLING

STAR RATING

AFTER SALES SERVICES

PRICE

DESIGN

0 5 10 15 20 25 30 35

31

4

15

8

12

7

In our survey, we find that cooling ability is the most important factor in making AC purchase decision.

Q7.HAVE YOU EVER BOUGHT VOLTAS AC

17

23

YESNO

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

FOR VOLTAS CUSTOMERS

Q8. WHAT DO YOU FEEL ABOUT AFTER SALES SERVICES?

3

11

3

FULLY SATISFIEDSATISFIEDAVERAGE SATISFACTION

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

High low Somewhere in between0

2

4

6

8

10

12

1

5

11

Q.10 IF YOU HAVE TO BUY ONE MORE AC THEN AC OF WHICH BRAND WILL YOU PREFER MOST ?

LG Samsung

VoltasCarrier

Any other

0

1

2

3

4

5

6

4

2

6

2

4

Q.11 WHAT IS YOUR OPINION REGARDING VOLTAS AC?

Reliable

Long Lasting

Technologically strong

Innovative

0 1 2 3 4 5 6 7 8 9 10

9

5

7

2

Q.12 ANY CHANGES WHICH YOU WOULD LIKE TO BRING AMONG VOLTAS AC ?

Impro

ve quali

ty

Increase

varie

ty

Reduce pric

e

Introduce

more sc

hemes

No chan

ge012345678

4

7

1

5

3

Q13. WILL YOU BUY IT AGAIN?

15

2

YESNO

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

Q14. WILL YOU SUGGEST IT TO YOUR FRIENDS?

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

16

1

YESNO

WHAT COMES TO PEOPLE’S MIND WHEN THEY THINK OF VOLTAS AC?

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

RECOMMENDATIONS

• Voltas should come up with new and good schemes for consumers like discounts, coupons etc.

• It should provide more profit margins to its dealers.• Brand building exercises and other Marketing

strategies need to be strengthened.• Voltas should focus on the availability of its products

like Voltas Vertis(0.75 Ton)

LIMITATIONS OF PROJECT The sample used for our consumer behavior analysis is very small and does not represent the whole market

The study is based on articles, presentations, etc available in internet, company home page etc. only

Due to the lack of field work there is no substantial backing for the recommendation

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

CONCLUSIONBased on this Marketing research project we were able to make the following conclusions about the brand Voltas AC

Customer Behavior – With the help of our survey we were able to deduce that the consumers of ACs are mostly driven by Energy efficiency, maintenance cost, after sale support

Marketing Strategy of Voltas – Voltas has strictly adhered to their mass marketing technique and highly efficient products at reasonable cost of owning. This has helped Voltas to capture the niche market of cost sensitive consumers and even retain them.

CONCLUSIONMarket Share of Voltas– Voltas is doing fairly well in the current scenario with its last quarter results showing positive development

Customer Segmentation – Voltas customer segmentation is very clear and they have streamlined their products as per the same.

Product Differentiation – Voltas has a good line of products within each type of products.

THANK YOU