consumer buying behaviour towards cfl

CONSUMER BUYING BEHAVIOUR TOWARDS CFL (COMPACT FLUORESECNT LAMPS)

A PROJECT REPORT

Submitted by

SUCHIT THAKOR

Submitted to

MR. BHAUMIK SHAH

in partial fulfilment for the award of the degree

of

BACHELOR OF BUSINESS ADMINISTRATION

in

MARKETING MANAGEMENT

BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION, SURAT

VEER NARMAD SOUTH GUJARAT UNIVERSITY

2012

ACKNOWLEDGEMENT

I am indebted to Mr.Rajesh Desai, director of Karuna Engineer Consultant, Surat

Authorised distributor of Philips Electronics India Ltd. for giving me an opportunity

to work as a winter project trainee in this esteemed organization. His knowledge and

experience was a great motivating factor. This effort would not have been possible

without his able, efficient, valuable and timely advice, insights and thoughts. I am very

much thankful to sir for his valuable guidance and support.

I take this opportunity to express my heartfelt gratitude to my faculty guide Prof.

Bhaumik Shah, Faculty of Marketing, Bhagwan Mahavir College of Business

Administration, (VNSGU). I am thankful to sir for his valuable support and guidance

throughout the project.

I am also thankful to Miss. Priyanka Patel, Sales incharge, Karuna Engineer

Consultant for her assistance and support, I am equally grateful to each and every

member of KEC, Surat for their whole-hearted co-operation in completing this project

in stipulated time.

I extend my sincere thanks to the all respondent who serve me there prestigious time

me for my project.

Last but not the least, I would like to thank my family members and friends whose

unbounded support facilitated the successful completion of the project.

SUCHIT THAKOR

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Bhagwan Mahavir College of Business Administration

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EXECUTIVE SUMMARY

The project was carried out for Philips Electronic India Ltd., which is one of the

leading Electronic firms.

The project was undertaken during 7 weeks winter training at Karuna Engineer

Consultant in my capacity as a management student with marketing specialization.

The job assigned to me for the project was to do market Analysis and noticing

consumer behaviour regarding CFL.

The entitled project was having many primary and secondary objectives to achieve the

objectives are as follows -------

PRIMARY OBJECTIVES:-

To identify the market standing of the Philips with its competitive companies.

To study and analyse the perception status and consumer behaviour regarding

Philips CFL in the Market.

SECONDARY OBJECTIVES:-

Find out the potential market and also prefer to write for competitive.

Find out the potential customers, who can be very beneficial for the company.

To make aware the customer about company’s product and to educate them

and aware about the different benefits.

To have a healthy conversation with customer to build a good relationship, to

find out the problem related with the company product.

To formulate the competitive marketing strategies to have better approach to

the customer.

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INDEX

Chapter No.

Content Page No:

Acknowledgement 1

Executive Summary 4

1 Introduction to Industry 6

2 Introduction to Company 17

3 Theoretical aspect of the study 28

4 Research Methodology 38

5 Data Analysis & Findings 47

6 Suggestion and Conclusion 64

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Chapter-1

INTRODUCTION TO THE

INDUSTRY

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Compact Fluorescent Lamps (CFLs)

Never before have so many people had so much power to do something as simple as

changing a light bulb to save money and fight global warming simultaneously!

INTRODUCTION

A compact fluorescent lamp (CFL), also known as a compact fluorescent light bulb (or

less commonly as a compact fluorescent tube [CFT]) is a type of fluorescent lamp.

Many CFLs are designed to replace an incandescent lamp and can fit in the existing

light fixtures formerly used for incandescent.

Compared to incandescent lamps of the same luminous

flux, CFLs use less energy and have a longer rated life.

In the United States, a CFL can save over 30 USD in

electricity costs over the lamp's lifetime compared to an

incandescent lamp and save thousands of times its own

weight in greenhouse gases. The purchase price of a

CFL is higher than that of an incandescent lamp of the

same luminous output, but this cost is recovered in

energy savings and replacement costs over the bulb's

lifetime.

Improved phosphor formulations have improved the subjective colour of the light

emitted by CFLs such that the best 'warm white' CFLs available now such as Sani

Bulb and Carbon Neutral Bulb are subjectively similar in colour to standard

incandescent lamps and provide superior lighting quality.

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http://www.carbonfootprint360.com/Compact-Fluorescent-Light-Bulbs-CFL.html




HISTORY

The parent to the modern fluorescent lamp was invented in the late 1890s by Peter

Cooper Hewitt. The Cooper Hewitt lamps were used for photographic studios and

industries.

Edmund Germer, Friedrich Meyer, and Hans Spanner patented a high-pressure vapour

lamp in 1927.George Inman later teamed with General Electric to create a practical

fluorescent lamp, sold in 1938 and patented in 1941. Circular and U-shaped lamps

were devised to reduce the length of fluorescent light fixtures. The first fluorescent

bulb and fixture were displayed to the general public at the 1939 New York World's

Fair.

The helical (three-dimensional spiral) CFL was invented in 1976 by Edward Hammer,

an engineer with General Electric, in response to the 1973 oil crisis. Although the

design met its goals, and it would have cost GE about US$25-million to build new

factories to produce the lamps, the invention was shelved. The design eventually was

copied by others. IN 1995, helical lamps, manufactured in China, became

commercially available; their sales have steadily increased.

In 1980, Philips introduced its model SL, which was a screw-in lamp with integral

magnetic ballast. The lamp used a folded T4 tube, stable tri-colour phosphors, and a

mercury amalgam. This was the first successful screw-in replacement for an

incandescent lamp. In 1985 Osram started selling its model EL lamp, which was the

first CFL to include electronic ballast.

Development of fluorescent lamps that could fit in the same volume as comparable

incandescent lamps required the development of new, high-efficacy phosphors that

could withstand more power per unit area than the phosphors used in older, larger

fluorescent tubes.

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CFL ADOPTION QUICKLY GAINING WIDESPREAD SUPPORT

Due to the enormous potential to increase energy

savings and reduce pollution, various organizations

and companies have undertaken a variety of

creative measures to encourage the adoption of

CFLs. In addition, governments across the globe

are considering strong measures to encourage

adoption of CFLs or to even entirely displace

incandescent. Some countries have proposed

efforts that involve tax measures, while others have

gone further by instituting bans on future

production of incandescent light bulbs. Ireland is

the first country to implement a ban in 2009 and

Australia phases out incandescent lights by 2010.

The United States and Canada have also committed

to phasing out incandescent lights in 2012.

But still in India there are many uses of incandescent lights, in rural region of India

70% is the usage of incandescent lamps.

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COMPARISON WITH INCANDESCENT LAMPS

Lifespan

Modern CFLs typically have a lifespan of between 6,000 and 15,000 hours, whereas

incandescent lamps are usually manufactured to have a lifespan of 750 hours or 1,000

hours.

Energy Consumption

For a given light output, CFLs use between one fifth and one quarter of the power of

an equivalent incandescent lamp. For example, lighting accounted for approximately

9% of household electricity usage in the United States in 2001, so widespread use of

CFLs could save most of this, for a total energy saving of about 7% from household

usage.

Energy Efficiency

The actual energy efficiency of CFLs compared to other lamp technologies such as

incandescent, LED and halogen is significantly better. This makes a compelling case

to switch over to them.

Energy Savings Since

Since CFLs use less power to supply the same amount of light as an incandescent lamp

of the same lumen rating, they can be used to decrease energy consumption at the

location in which they are used. In countries where electricity is largely produced from

burning fossil fuels, the savings reduces emissions of greenhouse gases and other

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pollutants; in other countries the reduction may help reduce negative impacts from

radioactive waste, hydroelectric plants or other sources.

Cost

In addition to the savings on energy costs, the average life of a

CFL is between 8 and 15 times that of incandescent. While the

purchase price of a CFL is typically 3 to 10 times greater than

that of an equivalent incandescent lamp, the extended lifetime

(fewer lamps to replace and reduced labour) and lower energy

use will compensate for the higher initial cost in most

applications. A US article stated "A household that invested

$90 in changing 30 fixtures to CFLs would save $440 to

$1,500 over the five-year life of the bulbs, depending on your

cost of electricity. Look at your utility bill and imagine a 12%

discount to estimate the savings."

Helps Fight Global Warming xcvxcvxcvcxvxcvxcvcxvxcvxc

Light is powered mainly by coal burning power plants and

natural gas, both of which create greenhouse gases (GHG) that

cause global warming. The EPA estimates that 1.535 lbs. of

greenhouse gases are released into the atmosphere for every

kilowatt hour of electricity generated by a coal-fired plant.

Replacing a single 100 watt conventional incandescent light

bulb with a 25 watt CFL can prevent more than 169 pounds of

coal from being burned and reduce greenhouse gas emissions

by 814 pounds over the lifetime of the bulb. Looking at the big

picture, if every American swapped a single incandescent bulb

with a CFL, it would collectively save $8 billion in energy

costs, prevent burning 30 billion pounds of coal and remove 2

million cars worth of greenhouse gas emissions from our

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environment. Now imagine what a difference we can make if we switched all our

incandescent light bulbs to CFLs!

Prevents Other Pollution Too Coal-fired

Coal-fired power plant smokestacks are also a big threat to health. In addition to

releasing carbon dioxide, they also release sulphur dioxide (main cause of acid rain),

nitrogen oxide (causes smog and acid rain), radioactive pollutants (can release more

than a nuclear power plant) and particulates. These deadly pollutants could lead to

heart attacks, strokes, asthma attacks and premature deaths.

Enjoy Warm Inviting Lighting There

There is no reason to be concerned about CFL lighting quality anymore. It has been

improving dramatically since they were first introduced almost 20 years ago. CFL

light quality now rivals traditional light bulbs in many applications. They turn on

instantly, don’t hum, are flicker free and the 2,700K warm white version CFLs

delivers warm inviting light that is indistinguishable from incandescent lights. This is

made possible by use of rare earth phosphors for excellent colour and warmth. In fact,

according to a study performed by Popular Mechanics, CFLs scored higher than

incandescent bulbs for overall quality of the light. In other words, CFLs aren’t just

better for both your wallet and the environment, they produce better light and they

don’t peek above most lamp shades anymore!

Reduces Fire Hazards Standard

Standard old fashioned incandescent light bulbs are very inefficient. In fact, over half

the energy consumed by them produces heat, not light. Your home or business will be

safer when you switch to CFLs since it produces less heat thus reducing fire hazards.

This reduction in heat will also cut your AC bills when the weather gets hot.

Maintenance Free Simply

Simply replace your old fashioned incandescent light bulbs with CFLs and forget

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about them. Since they last for over 8,000 hours, which is ten times longer than

incandescent bulbs, you won’t have to replace them for a very long time. Imagine

cutting down on your trips to buy bulbs and the times you have to change those hard to

get to bulbs.

Also, since CFLs are quiet, you won’t notice the difference while you enjoy your

music, TV or share a quiet conversation. So switch to CFLs, sit back and bask in its

long lasting, comfortable, energy saving light while fighting global warming.

INDUSTRY GROWTH RATE IN INDIA

The Lighting industry has witnessed an annual growth rate of about 12% per annum in

the last four years. Amongst the various products, the consumption of CFLs has

increased at a very large growth rate, as high as 50%, in the year 2010. Similarly, the

fluorescent tube lights market has shown a growth rate of 10% in 2010

PEST ANALYSIS

PEST analysis is concerned with the key external environmental influences on a

business.

The acronym stands for the Political, Economic, Social and Technological issues that

could affect the strategic development of a business.

Identifying PEST influences is a useful way of summarising the external environment

in which a business operates. However, it must be followed up by consideration of

how a business should respond to these influences.

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The table below lists some possible factors that could indicate important environmental

influences for a business under the PEST headings:

Political / Legal Economic Social Technological

Environmental regulation and protection

Economic growth (overall; by industry sector)

Income distribution (change in distribution of disposable income;

Government spending on research

Taxation (corporate; consumer)

Monetary policy (interest rates)

Demographics (age structure of the population; gender; family size and composition; changing nature of occupations)

Government and industry focus on technological effort

International trade regulation

Government spending (overall level; specific spending priorities)

Labour / social mobility

New discoveries and development

Consumer protection Policy towards unemployment (minimum wage, unemployment benefits, grants)

Lifestyle changes (e.g. Home working, single households)

Speed of technology transfer

Employment law Taxation (impact on consumer disposable income, incentives to invest in capital equipment, corporation tax rates)

Attitudes to work and leisure

Rates of technological obsolescence

Government organisation / attitude

Exchange rates (effects on demand by overseas

Education Energy use and costs

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customers; effect on cost of imported components)

Competition regulation Inflation (effect on costs and selling prices)

Fashions and fads Changes in material sciences

Stage of the business cycle (effect on short-term business performance)

Health & welfare Impact of changes in Information technology

Economic "mood" - consumer confidence

Living conditions (housing, amenities, pollution)

Internet!

MARKET PLAYERS AND MARKET LEADER.

HAVELLS INDIA LTD ORPAT ELECTRONICS

PHILIPS ELECTRONICS INDIA LTD. WIPRO LIGHTING

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CROMPTON GREAVES LIMITED OREVA ELECTRONICS INDIA

BAJAJ ELECTRICALS LTD. OSRAM LIGHTING

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SURYA ROSHNI LTD POLAROID ELECTRONICS

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INTRODUCTION TO THE

Company

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COMPANY PROFILE

ROYAL PHILIPS ELECTRONICS

Royal Philips Electronics of the Netherlands is a diversified Health and Well-being

company, focused on improving people’s lives through timely innovations. As a world

leader in healthcare, lifestyle and lighting, Philips integrates technologies and design

into people-centric solutions, based on fundamental customer insights and the brand

promise of “sense and simplicity”.

Headquartered in the Netherlands, Philips employs approximately 119,000 employees

in more than 60 countries worldwide. With sales of EUR 25.4 billion in 2010, the

company is a market leader in cardiac care, acute care and home healthcare, energy

efficient lighting solutions and new lighting applications, as well as lifestyle products

for personal well-being and pleasure with strong leadership positions in male shaving

and grooming, portable entertainment and oral healthcare.

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COMPANY PROFILE (PHILIPS ELECTRONICS INDIA PVT. LTD.)

PROFILE

Philips started operations in India at Kolkata (Calcutta) in 1930. Established as

“Philips Electrical Co. (India) Pvt Ltd”, the company comprised a staff of 75 and was

a sales outlet for Philips lamps imported from overseas.

In keeping with the Philips philosophy of promoting the industrial development of

emerging economies, Philips India set up its first Indian lamp-manufacturing factory

in 1938 in Kolkata.

Subsequently, Philips decided to produce radio receivers in India to make this product

readily and widely available to the Indian consumer. In 1948, after the Second World

War, Philips started manufacturing radios in Kolkata. The first valve-based Philips set

was well received by the consumers. This was a major turning point for Philips India,

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and marked the beginning of the company's subsequent growth in the world of

electronics.

In 1957, the company is converted into a public limited company, renamed “Philips

India Ltd” and in 1959, a second radio factory is established near Pune.

In 1963, Philips invents the compact audio tape cassette and sets a global standard for

tape recording that has never been altered since. India gets exposed to this Philips

invention.

In 1965 (3 April), the millionth Philips radio is manufactured in India. In the same

year Philips pioneers the concept of son-et-lumiere shows in India with the installation

of such a lighting and electro-acoustic system at the Red Fort in Delhi.

In 1970 a new consumer electronics factory is started in Pimpri near Pune.

Come 1982, Philips brings colour television transmission to India with the supply of

four outdoor broadcast vans to Doordarshan during the IX Asian Games. The company

also completes a prestigious turnkey project by handling the lighting and electro-

acoustic installations of stadia built specially for the IX Asian Games.

In 1983, Philips launches the Compact Disc and revolutionizes the way the world

listens to music.

In 1985, Philips inaugurates its consumer electronics factory at Salt Lake, Kolkata.

1993 sees Philips launching its domestic appliance business in India and in 1995

Philips introduces compact fluorescent lamps into the country.

In 1996, the Philips Software Centre is established in Bangalore.

In 1998, Philips launches Flat Televisions and CD-recorders - both firsts in India.

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As is seen, throughout the 1900’s Philips continued to bring the Indian consumer new

and innovative products backed by the latest technology and bearing the renowned

Philips stamp of quality.

BOARD OF DIRECTORS

LIGHTING SEGMENT

Philips Electronics India, India’s largest lighting company operates in business areas

of Lamps, Luminaires, Lighting Electronics, Automotive and Special Lighting. Today,

as global leader in Lighting, Philips is driving the switch to energy-efficient solutions.

With worldwide electrical lighting using 19 per cent of all electricity, the use of

energy-efficient lighting will significantly reduce energy consumption around the

world and thereby cut harmful CO2 emissions. Philips India has been consistently

working with industry bodies such as ELCOMA, Bureau of energy efficiency and

NGOs towards addressing India’s power crisis through promotion of energy efficient

lighting in India.

Philips provides advanced energy-efficient solutions for all segments: road lighting,

office & industrial, hospitality and home. Philips is also a leader in shaping the future

with exciting new lighting applications and technologies such as LED technology,

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Non-Executive Director & Chairman S. M. Datta

Managing Director & CEO Rajeev Chopra

Executive Director Jan-Hein Louwman

Non-Executive Director S. Venkatramani

which, besides energy efficiency, provides attractive benefits and endless new ‘never-

before-possible’ lighting solutions.

In 2008, Philips inaugurated a global research and development (R&D) centre for

lighting electronics in India. This was its third such unit in the world. The facility

which is situated in Noida will not only cater to the needs of the Indian market but also

the Asia-Pacific, Europe and North America. The other R&D centres are located at

Eindhoven in the Netherlands and in Shanghai, China. One of the primary research

areas for the centre is to develop products that can tackle high voltage fluctuations in

India. The centre currently employs 35 engineers. Around 40 per cent of Philips’

revenue in India comes from the lighting business.

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Mission

"Improve the quality of

people’s lives through

timely introduction of

meaningful innovations."

Vision

“In a world where

complexity increasingly

touches every aspect of our

daily lives, we will lead in

bringing sense and

simplicity to people.”

Behaviours

Eager to win

Take ownership

Team up to excel

BRAND:

Philips is more than just a company name – it’s a brand that promises an experience to

people. Whether it was lighting lives in 1891 when we introduced our first

incandescent light bulb, to saving lives with the Heart Start defibrillator, people have

always been at the heart of Philips.

Prior to the launch of “sense and simplicity,” we did not have a consistent way within

our organization to deliver a one-Philips brand experience to customers. The launch of

our brand promise - “sense and simplicity” - in 2004 was an important milestone in

our brand journey. This step change guided the organization to deliver a consistent,

differentiated brand experience; helping us to build our brand in the hearts and minds

of people.

This brand promise encapsulates our commitment to deliver solutions that are

advanced, easy to use, and designed around the needs of all our users and customers.

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VARIOUS CFL’S PRODUCT OF PHILIPS

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PHILIPS GROTH RATE IN INDIA

PHILIPS ELECTRONICS INDIA LTD. Annual report concludes that lighting and

healthcare businesses continue to perform strongly both in terms of turnover and

increase in respective market share. Lighting business recorded an all-time high

growth of 24%, in 2010. Company bagged highest ever supply of 14.5 million

Compact Fluorescent Lamps to Kerala State Electricity Board under the clean

development mechanism (Carbon Credit) project.

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SWOT ANLYSIS

STRENGTH

Assets leverage

Effective communication

High R & D.

Innovation

Loyal customers

Market share leadership

Strong team management

Strong brand equity

Strong financial position

Reputation management

LED technology

WEAKNESS

Weaker distribution network

Price

Poor business level strategy

Not get emerge monopoly benefit

as a pioneer.

OPPORTUNITY

Government regulations and green

push

Rising electricity price

THREATS

Competitions

Cheaper technology

Economic slow down

Exchange rate fluctuations

Lower competitors or imports

Price wars

Budgetary & taxation policy.

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Chapter-3

Theoretical Aspect of The

Study

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Marketing is the science of meeting

the needs of a customer by providing

valuable products to customers by

utilizing the expertise of the

organization, at same time, to archive

organizational goals.

According to The American

Marketing Association, “Marketing is

the activity, set of institutions, and

processes for creating,

communicating, delivering, and

exchanging offerings that have value

for customers, clients, partners, and

society at large.”

With this definition, it is important to

realize that the customer can be an

individual user, a company, or several

people who contribute to the

purchasing decision. The product can

be a hard good, a service, or even an

idea – anything that would provide

some value to the person who

provides an exchange. An exchange

is most often thought of as money,

but could also be a donation of time

or effort, or even a specific action. A

producer is often a company, but

could be an individual or non-profit

organization.

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CONSUMER BUYING BEHAVIOUR

The decision processes and acts of final household consumers associated with

evaluating, buying, consuming, and discarding products for personal consumption

Consider the purchase an automobile. You generally will not consider different

options until some event triggers a need, such as a problem needing potentially

expensive repair. Once this need has put you "on the market", you begin to ask your

friends for recommendations regarding dealerships and car models. After visiting

several dealerships, you test drive several models and finally decide on a particular

model. After picking up your new car, you have doubts on the way home, wondering

if you can afford the monthly payments, but then begin to wonder if instead you

should have purchased a more expensive but potentially more reliable model. Over the

next five years, the car has several unexpected breakdowns that lead you to want to

purchase a different brand, but you have been very happy with the services of the local

dealership and decide to again purchase your next car there.

In this particular case, the following generic model of consumer decision making

appears to hold:

=====>need recognition

=====>information search

=====>evaluation of alternatives

=====>purchase decision

=====>post purchase Behaviour

Now consider the purchase of a quart of orange juice. You purchase this product when

you do your grocery shopping once per week. You have a favourite brand of orange

juice and usually do your grocery shopping at the same store. When you buy orange

juice, you always go to the same place in the store to pick it up, and never notice what

other brands are on the shelf or what the prices of other brands are. How is it that the

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generic model above works differently in this second scenario? Why does it work

differently?

Why would we generally need the ministrations of a sales person in the sale of a car,

but we generally do not need the help of a salesperson in the purchase of orange juice?

How can the marketer of orange juice get a consumer like you to exert more effort into

information search or to consider alternative products? How is it that the marketer of

your brand got you to ignore alternative competing brands? What is the involvement

of salespeople in sales promotions that might be associated with products such as

orange juice?

Consumer Behaviour researchers are not so interested in studying the validity of the

above generic model, but are more interested in various factors that influence how

such a model might work.

GROUP INFLUENCES ON CONSUMER BEHAVIOUR

Culture

the set of basic values, beliefs, norms, and associated Behaviours that are learned by a

member of society

Note that culture is something that is learned and that it has a relatively long lasting

effect on the Behaviours of an individual. As an example of cultural influences,

consider how the salesperson in an appliance store in the U.S. must react to different

couples who are considering the purchase of a refrigerator. In some subcultures, the

husband will play a dominant role in the purchase decision; in others, the wife will

play a more dominant role.

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Social Class

A group of individuals with similar social rank, based on such factors as occupation,

education, and wealth.

Reference Groups

Groups, often temporary, that affects a person's values, attitude, or Behaviours

E.g., your Behaviours around colleagues at work or friends at school are

probably different from your Behaviours around your parents, no matter your

age or stage in the family life cycle. If you were a used car salesperson, how

might you respond differently to a nineteen year old prospect accompanied by

her boyfriend from one accompanied by two girlfriends?

Opinion leader

A person within a reference group who exerts influence on others because of

special skills, knowledge, personality, etc.

o You might ask the webmaster at work for an opinion about a particular

software application. Software manufacturers often give away free beta

copies of software to potential opinion leaders with the hope that they

will in turn influence many others to purchase the product.

Family

A group of people related by blood, marriage, or other socially approved

relationship

Environmental/ Situational Influences on Consumer Behaviour

Circumstances, time, location, etc.

Do you like grapes? Do you like peas?

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You might like grapes as a snack after lunch, but probably not as a dessert after a

fancy meal in a restaurant. You might like peas, but probably not as a topping on your

pancakes. Everyday situations cause an interaction between various factors which

influence our Behaviours. If you work for tips (a form of incentive related to

commission) as a waiter or waitress, you must certainly be aware of such interactions

which can increase or decrease your sales.

If you are doing your Saturday grocery shopping and are looking for orange juice, you

are probably much more sensitive to price than if you stop at the quick store late at

night, when you are tired and cranky, after a late meeting at the office. A prospect

shopping for a new automobile while debating the wisdom of a necessary expensive

repair to his car might be more interested in what cars are on the lot than in shopping

for the best deal that might involve a special order.

Internal Influences on Consumer Behaviour

Personality

A person's distinguishing psychological characteristics that lead to relatively consistent

and lasting responses to stimuli in the environment

We are each unique as individuals, and we each respond differently as consumers. For

example, some people are "optimizers" who will keep shopping until they are certain

that they have found the best price for a particular item, while other people are

"satisfices" who will stop shopping when they believe that they have found something

that is "good enough." If you are a salesperson in a retail shoe store, how might you

work differently with these two personalities?

Lifestyle and Psychographics

lifestyle is a pattern of living expressed through a person's activities, interests,

and opinions

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Psychographics is a technique for measuring personality and lifestyles to

developing lifestyle classifications.

Motivation: Multiple motives

Consumers usually have multiple motives for particular Behaviours. These can be a

combination of:

manifest

known to the person and freely admitted

latent

unknown to the person or the person is very reluctant to admit

Note: different motives can lead to the same Behaviour; observing Behaviour is not

sufficient to determine motives.

As we’ve seen, consumer purchasing is quite complex.

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MARKETING MIX

The marketing mix is a business tool used in marketing products. The marketing mix

is often crucial when determining a product or brand's unique selling point (the unique

quality that differentiates a product from its competitors), and is often synonymous

with the 'four Ps': 'price', 'product', 'promotion', and 'place'. However, in recent times,

the 'four Ps' have been expanded to the 'seven Ps' with the addition of 'process',

'physical evidence' and 'people'.

The term "marketing mix" was coined in 1953 by Neil Borden in his American

Marketing Association presidential address. However, this was actually a

reformulation of an earlier idea by his associate, James Culliton, who in 1948

described the role of the marketing manager as a "mixer of ingredients", who

sometimes follows recipes prepared by others, sometimes prepares his own recipe as

he goes along, sometimes adapts a recipe from immediately available ingredients, and

at other times invents new ingredients no one else has tried.

Four P’s

The 'four Ps' consist of the following:

Product - A product is seen as an item that satisfies what a consumer needs or

wants. It is a tangible good or an intangible service. Intangible products are service

based like the tourism industry & the hotel industry or codes-based products like

cell phone load and credits. Tangible products are those that can be felt physically.

Typical examples of mass-produced, tangible objects are the motor car and the

disposable razor. A less obvious but ubiquitous mass produced service is

a computer operating system.

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Every product is subject to a life-cycle including a growth phase followed by a

maturity phase and finally an eventual period of decline as sales falls.

Marketers must do careful research on how long the life cycle of the product

they are marketing is likely to be and focus their attention on different

challenges that arise as the product moves through each stage.[1]

The marketer must also consider the product mix. Marketers can expand the

current product mix by increasing a certain product line's depth or by increase

the number of product lines. Marketers should consider how to position the

product, how to exploit the brand, how to exploit the company's resources and

how to configure the product mix so that each product complements the other.

The marketer must also consider product development strategies.

Price – The price is the amount a customer pays for the product. The price is very

important as it determines the company's profit and hence, survival. Adjusting the

price has a profound impact on the marketing strategy, and depending on the price

elasticity of the product, often; it will affect the demand and sales as well. The

marketer should set a price that complements the other elements of the marketing

mix.

When setting a price, the marketer must be aware of the customer perceived

value for the product. Three basic pricing strategies are: market pricing,

marketing penetration pricing and neutral pricing. The 'reference value' (where

the consumer refers to the prices of competing products) and the 'differential

value' (the consumer's view of this product's attributes versus the attributes of

other products) must be taken into account.

Promotion - represents all of the methods of communication that a marketer may

use to provide information to different parties about the product. Promotion

comprises elements such as: advertising, public relations, personal

selling and sales promotion.

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http://en.wikipedia.org/wiki/Marketing_mix#cite_note-Business_for_Higher_Awards-0

Advertising covers any communication that is paid for, from cinema

commercials, radio and Internet advertisements through print media and

billboards. Public relations is where the communication is not directly paid for

and includes press releases, sponsorship deals, exhibitions, conferences,

seminars or trade fairs and events. Word-of-mouth is any apparently informal

communication about the product by ordinary individuals, satisfied customers

or people specifically engaged to create word of mouth momentum. Sales staff

often plays an important role in word of mouth and public relations.

The company launched an aggressive new advertising campaign in print,

television and online. The new tagline "Sense and simplicity" showcases the

new brand promises -- using technology to make life simpler and easier.

Company sources say Philips is counting on the new campaign to help it grow

by at least 25 per cent this year.

That's in the future, but how did Philips almost double its market share in less

than four years? Interestingly, the company didn't adopt radically different

strategies.

Place - refers to providing the product at a place which is convenient for

consumers to access. Place is synonymous with distribution.

Various strategies such as intensive distribution, selective distribution, exclusive

distribution and franchising can be used by the marketer to complement the other

aspects of the marketing mix.

Philips has 10 distributors in Surat and Philips CFL available at all electrical

shops, big bazar and Dhiraj sons etc.

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Chapter-4

Research methodology

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OBJECTIVES OF THE RESEARCH

Surat is the most developed city in southern Gujarat and to capture this market and

establish themselves as a leader is the prime aim of all the companies so as to have an

psychological impact on the people and to have an edge over other lighting companies

were not doing great business in This region from the very beginning. It was so

because the prices of the product were high and the customers were not fully aware of

proper advertisement facility, which is key factor in influencing a consumer. Earlier

Philips product was almost enjoying the monopoly market but now many companies

entered the market with various promotional schemes and changing the market

scenario.

Today all the companies namely Philips, Orpat, Bajaj, Wipro, Surya etc. are trying to

grab the market. According to research, Philips has the largest market share in India.

Every study is conducted with key objectives and aims kept in the fore. Without aims

and objectives the study is like a ship without radar. So aims and objectives of this

study are.

1. To understand the awareness level of Philips and Philips CFL.

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2. To know how satisfied are customers and retailers with the products

they purchase and the services provided by the company.

3. To find out what the customer and the retailer wants from Philips CFL.

4. To know the market shares of Philips CFL.

5. To know the perception of customer regarding the quality of Philips CFL.

6. To know the most influential factors that influences the customer

behaviour towards Philips CFL.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. The

research methodology included various methods and techniques for conducting a

research. “Marketing Research is a systematic design, collection, analysis, and

reporting of data and finding relevant solution to a specific marketing situation or

problem.” Sciences define research as “ the manipulation of things, concepts or

symbols for the purpose of generalizing to extend, correct or verify knowledge,

whether that knowledge aids in construction of theory or in practice of an art.”

Research is thus, an original contribution to the existing stock of knowledge marketing

for its advancement, the purpose of research is to discover answers to the questions

through the application of scientific procedure.

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My research project has a specified framework for collecting the data in an effective

manner. Such framework is called “Research Design”. The research process which

was followed by me consisted following steps.

Research Problem

Research Objective

Information Requirement

Choice Of Research Design

Research Instruments Used

Products & Sample Size

Field Work

Defining the problem & Research Objectives

It is said, “A problem well defined is half solved”. The step is to define the project

under study and deciding the research objective. The definition of problem includes

Consumer Buying Behaviour towards PHILIPS CFL

Developing the Research Plan:

The second stage of research calls for developing the efficient plan for gathering the

needed information. Designing a research plan calls for decision on the data sources,

research approach, research instruments, sampling plan and contacts methods. The

research is descriptive in nature and is aimed at analysing the consumer behaviour

towards PHILIPS CFL.

The development of Research plan has the following Steps:

a.) Data Sources

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Two types of data were taken into consideration i.e. Primary data and Secondary

data. My major emphasis was on gathering the primary data. The secondary data

has been used to make things more clear.

i. Primary Data: Direct collection of data from the source of information,

including personal interviewing, mail survey.

ii. Secondary Data: Indirect collection of data from sources containing past

or recent information like, Annual Publications, Books, Newspaper and

Magazines etc.

Research Approach

Surveys are best suited for Descriptive Research. Surveys are undertaken to learn

about people’s knowledge, beliefs, preferences, satisfactions and so on and to

measure these magnitudes in the general public. Therefore I have done

Descriptive Research Process.

Research instrument

A close friend questionnaire was constructed for my survey. A Questionnaire

consisting of a set of questions was presented to respondents for their answers.

Sampling method: here I have used convenience non probability sampling

method.

a.) Sampling Plan

The sampling plan calls for three decisions.

i. Sampling unit: Who is to be surveyed?

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The target population must be defined that has to be sampled. It is necessary so as to

develop a sampling frame so that everyone in the target population has an equal

chance of being sampled. The sampling unit of this project was Customer who is

using CFL.

ii. Sample frame: Where is to be survey?

Sampling frame must be well defined. The sampling frame of this survey is Surat

city.

iii. Sample Size: How many people have to be surveyed?

Generally large sample gives more reliable results than small samples. The sample

consisted of 100 respondents. The sample was drawn from 100 end user’s customers’

people having different educational qualifications, occupations and age group. The

selection of the respondents was done on the basis of simple random sampling. The

sample was drawn from people having different educational qualifications, occupation

and age groups.

Contact Methods

Once the sampling plan has been determined, the question is how the subject should be

contracted i.e. by telephone, mail or personal interview. Here in this survey, I have

contacted the respondents through personal interviews and mail.

Collecting the information

The collection of data is a tedious task. For conducting any sort of research data

was needed. So for my research, there was plenty of primary data and for

increasing the validity of information collected, some books, journals, pamphlets,

information about the company were studied and taken into considerations. After

this, I have collected the information from the respondents with the help of

questionnaire.

a) Collection of Primary Data: Primary Data is the data collected from the

original source. In my survey and study, there was optimum availability of

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primary data because every aspect was witnesses carefully at each point.

Questionnaire and personal interviews and mail survey were the main

instruments, which were used for collecting primary data.

b) Collection of Secondary Data: Secondary Data is the one which has already

been collected by someone else and some other person is using that

information. The source of secondary data was, some related books and

websites related to the company. The competent staff of the company helped

me a lot in providing information about the company.

Analyse the Information

The next step is to extract the pertinent findings from the collected data. I have

tabulated the collected data and developed frequency distributions. Thus the whole

data was grouped aspect wise and was presented in tabular form. Thus, frequencies

and percentages were prepared to render impact of the study.

Presentation of findings:

This is the last and important step in the research process. The findings are

presented in the form of graphs, pie charts, conclusions, suggestions and

recommendations after data analysis.

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LIMITATIONS OF THE STUDY

1) The possibility of respondent’s responses being biased cannot be ruled out.

2) Limited access to secondary data pertaining to Philips performance in other

regions or any other information was another problem in finding a correct

response.

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3) Since a smaller sample was chosen so it may not be true representative of

population under study.

4) Most of the times people don’t give appropriate information.

5) Mostly respondent don’t want to give accurate information and act rudely.

6) The survey was to be conducted in a limited span of time (6 weeks) which also

posed a limiting factor.

7) The retailers are so busy in their business so that they did not show actual

picture of the situation.

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Chapter-5

Data Analysis and

Interpretation

ANALYSIS OF THE QUESTIONNAIRE

As the consumers play a key role in the today’s market; their preferences, attitude and

perceptions are of utmost value to the marketers keeping all the objectives of the study

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in mind and to give a proper dimension to the study undertaken, a comprehensive

consumer survey was undertaken with the aid of a well-framed questionnaire.

1. OCCUPATION CONSIDERED

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This question was put forwarded to extract a profile factor of the respondent. The

prime objective of this question was to know the occupation of the respondent.

Though this it can be analysed that which segment of people have like for which

brands. This question helped to extract the background of the customers owning and

not owning cars.

Table No. 1.1Occupation Percentage

Service 7%

Business 60%

Students 33%

Diagram 1.1

Interpret: The respondent for this survey was totally 100. More of the respondent

was from business sector followed by students and service people. 60% people was

from the business sector, 33% respondent is student and 7% is of service sector.

2. AGE GROUP

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The age group, which is one of the important roles in the buying behaviour of the

customer, was extracted through this question. It was attempted to cover most of the

age groups in various slabs.

Table No. 1.2

Age groups Percentage

15-24 20%

25-34 28%

35-44 40%

45 And Above 12%

Diagram 1.2

Interpret: The respondent for this survey was randomly selected, the most of the

respondent 40% was ranged between the age 35- 40 years, followed by the 25-44 years

contributing 28%.

3. ARE YOU AWARE ABOUT CFL?

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This question was asked to know whether respondent are aware about the CFL and various brand available in market. Most of the respondents are aware about the CFL and its brand.

Table No. 1.3Percentage

YES 98%

NO 2%

Diagram 1.3

Interpret: In this survey most of the respondents are aware of the CFL and its

Brand. 98% respondent knows about the CFL and its different brand available in the

market.

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4. MEDIA INSTRUMENT FOR AWARNESS

An endeavour was made to know the source of information or the awareness of

different brands of existing CFL in the market of Surat, to the customers. To respond

to this query, respondents were opted with various sources of media.

Table No. 1.4

Media Percentage

Newspapers 50%

Magazines 25%

T.V. Advertisement 87%

Trade Fairs 20%

Friends 45%

Diagram 1.4

Interpret: T.V. add is the main source in the awareness of the CFL i.e. near about

87%. Respondent knows about CFL from different various sources all along with T.V.

add.

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5. DO YOU PRUCHASE CFL?

Ownership of CFL was the chief extraction of this question. To this question only

few of the respondents were found positive whereas the remaining were not in

possession of a CFL.

Table No. 1.4

Percentage

Yes 94%

No 6%

Diagram 1.4

Interpret: Possession of the CFL, 94% respondent use CFL. Well the respondent

says no i.e. 6% people doesn’t need to purchase CFL.

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6. WHICH BRAND CFL YOU PREFER?

The respondents in response to this question revealed the awareness about the

existing brands of CFL in the market and the preference regarding existing brands.

To reveal it, they were given options of various brands that are playing in the

market of Surat.

Table No. 1.6

Brands Percentage

Philips 97%

Bajaj 15%

Surya 28%

Wipro 2%

Orpat 35%

Other 50%

Diagram 1.6

Interpret: Philips has the highly prefer by the respondent i.e. 97%, respondent all

use various brand along with different brand.

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7. WHO IS THE DECISION MAKER IN YOUR HOME

REGARDING CFL?

A major factor “Influence”, which induces a person to buy anything (herein referred

to CFL), was revealed by the respondents through their response to this question.

Decision maker regarding to the survey are mostly themselves.

Table No. 1.7

Percentage

Self 54%

Parents 15%

Any one in family 31%

Diagram 1.7

Interpret: 54% of the respondent are themselves take decision regarding buying of

CFL.31% respondent says that anyone can purchase the CFL.

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8. FOR WHAT PURPOSE YOU USE IT?

It is important to know that where the product is used and in which segment. This

question helps to know the area where the CFL is used and in which segment i.e.

Household and Industrial unit or Business purpose.

Table No. 1.8

Segment Percentage

Household 78%

Industrial 2%

Both 20%

Diagram 1.8

Interpret: 78% respondent use the CFL for their household purpose, while 20%

respondent says that they use it for both industrial as well as household purpose.

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9. WHERE DO YOU PURCHASE CFL?

Place is the most important thing to study the consumer buying behaviour. Place can

be determine, where consumer buy the product i.e. easily available. CFL are purchased

from the Kirana stores, Malls, Dealer outlets and wholesale distributors.

Table No. 1.9

Place Percentage

Kirana stores 12%

Malls 27%

Dealer outlets 48%

Wholesaler 13%

Diagram 1.9

Interpret: Purchase place is important, 48% respondent purchase the CFL from the

dealer outlets, followed by the malls 27% respondent.

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10.WHICH IS THE MAIN CRITERIA FOR YOUR PURCHASE?

In the consumer buying behaviour, the criteria play a vital role in the decision

regarding the product. For studying the consumer behaviour there main principal is to

be studied that why they are purchasing the product.

Table No. 1.10

Percentage

Brand Image 10%

Quality Light 36%

Price 20%

Energy Saving 30%

Guarantee 4%

Diagram 1.10

Interpret: Respondent main criteria regarding CFL is the quality light 36%

respondent says, after that energy saving 30% and the price 20% is the main criteria

for purchasing CFL.

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11.HOW MANY CFL ARE CURRENTLY INSTALLED IN YOUR

HOME?

This question is asked to know the number of CFL is installed in the respondent home.

This question helps to know the purchasing power and the quantity purchase by the

respondent.

Table No. 1.11

Percentage

1 to 3 71%

4 to 6 15%

7 to 9 9%

More than 9 5%

Diagram 1.11

Interpret: Currently 71% respondent use the 1 to 3 number of CFL in their Home as

well as Industrial use. Followed by the 15% respondent 4 to 6 CFL and 9% 7 to 9

qualntity.

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12.ACCORDING TO YOU, HOW LONG DOES CFL WORK?

This question helps you to know the working time of the product. CFL mainly last 18

months if it works regularly 10 hours daily.

Table No. 1.12

Months Percentage

0 to 6 2

7 to 12 22

13 to 18 40

19 to 24 20

More than 24 16

Diagram 1.12

Interpret: 40% of the respondent says that CFL last 13 to 18 months, while 20 %

respondent says that it last approx. 2 years.

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13.WHICH COLOUR LIGHTING YOU PREFER THE MOST?

This question helps to determine the respondent response regarding the preference of

the light of the CFL.

Table No. 1.13

Colour Percentage

White 60%

Yellow 20%

Off-white 10%

Others 10

Diagram 1.13

Interpret: 60% respondent prefer white colour lighting of the CFL. While 20%

respondent says that the lighting should be in the yellow colour.

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14.WHICH ATTRIBUTE IS IMPORTANT TO YOU BEFORE

DECIDE TO BUY CFL?

This question was attempted to extract the factors, which plays a major role in the

buying behaviour of the customers. All the factors were found to be important as well

as very important for the respondents.

Table No. – 1.14

SR.

No.

Attributes Very

Important

Important Not so

importan

t

a) Price 73 25 2

b) Brightness 60 35 5

c) Energy efficiency 57 33 10

d) Style / looks 7 38 55

e) Durability 33 34 33

f) Brand image 26 50 24

g) Replacement Policy 50 34 16

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Diagram 1.14

Interpret: Energy efficiency, brightness and the price is the most important factor

which is taken into consideration before buhying the CFL.

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FACTS AND FINDINDS

My analysis was undertaken for analysing and knowing the consumer buying pattern

for CFL’s and to know the preference of the customers towards Philips CFL’s.

From the above analysis I found out that:

1. The customer is firstly unaware regarding the efficiency of CFL’s.

2. The Consumers who buy CFL’s are mostly aged between 35-44 yrs.

3. Philips has very high brand recognition for its CFL’s.

4. Price is the very important aspect followed by the quality lighting for the

preference of the CFL’s.

5. The consumer had various expectations and had a perceived image for CFL’s

and the various brands offering CFL’s.

6. The target audience for CFL’s is mostly Men aged between 35 -44 yrs.

7. The satisfaction level for Phillips CFL’s was comparatively more than any

other CFL’s.

8. Due to a great impact of Modern Trade today people prefer to buy CFL’s

mostly from Dealer Outlets and then closely followed by Malls.

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Chapter-6

Conclusion and Suggestion

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SUGGESTIONS

1) More local/ regional advertisements should be there to make people aware

about Philips and its products.

2) Campaigning should be done at all level.

3) Business Development Officers should contact Dealers and Customers on

regular basis.

4) More flexible pricing schemes should be provided.

5) Company should further reduce its price.

6) There is more need in improvement of quality of Philips CFL so that it

decreases the rate of replacement.

7) If company backs out any scheme, then it should give some time to the retailer.

8) Provide updated information and knowledge to the retailers about the product.

9) Company should provide CFL in more attractive and Style / Look should

improve.

10) Company should increase the more energy efficiency of the CFL.

CONCLUSION OF THE ANALYSIS

From the above analysis and findings thereby, the company has definitely a good

market share and the customer base is in growing. Thought it faces a stiff competition

from reputed brands like Surya, Orpat etc. the company has its own set of customer

base. If the company directs some more efforts towards the advertising and changing

pricing policy of its CFL’s the company can definitely capture a greater market share.

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BIBLIOGRAPHY

Books:

1. Marketing Management – Philip Kotler

2. Research Methodology – G.C.Beri

3. Research Methodology – Schinder and Cooper

Internet:

1. www.india. philips .com

2. www.lighting. philips .co.in

3. www. wikiswot .com

4. https:// docs . google .com

5. www. wikipedia .org

6. www.marketingpractice.blogspot.com

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http://www.marketingpractice.blogspot.com/

http://www.wikipedia.org/

https://docs.google.com/

http://www.wikiswot.com/

http://www.lighting.philips.co.in/

http://www.india.philips.com/

ANNEXURE

Questionnaire

Dear Sir/madam,

I am a BBA student from Bhagwan Mahaveer College of Business Administration (B.M.E.F),

Surat and doing a project on Consumer Buying Behaviour of Phillips CFL (Compact

Fluorescent Lamps). Your response is highly valuable. I would be grateful if you could help

me by filling it up honestly and legitimately. I assure that any information provided will be

solely used for academic purpose and will be kept confidential. No answers are right or wrong;

give the answers which you feel are the best.

PERSONAL DETAIL:

NAME: CONTACT NO:

AGE: ADDRESS:

OCCUPATION:

1) Are you aware about CFL (Compact Fluorescent Lamps)?

[ ] Yes [ ] No

2) How did you aware of the different brand of CFL?

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[ ] Newspaper [ ] Magazine [ ] T.V. add

[ ] Trade fairs [ ] Friends

3) Do you purchase CFL?

[ ] Yes [ ] No

4) Which brand CFL’s you are using?

[ ] Phillips [ ] Bajaj [ ] Surya

[ ] Wipro [ ] Orpat [ ] Others

5) Who is the decision maker in your home regarding CFL?

[ ] Self [ ] Parents [ ] Any one

6) For what purpose you use it?

[ ] Industrial [ ] Household [ ] Both

7) Where do you buy CFL’s mostly?

[ ] Kirana Store [ ] Malls [ ] Dealer Outlets

[ ] Whole seller

8) How many number of CFL’s currently installed in your home?

[ ] 1 to3 [ ] 4 to 6 [ ] 7 to 9 [ ] More than 9

9) What are the main criteria for your purchase?

[ ] Brand Name [ ] Quality Light [ ] Price

[ ] Energy saving [ ] Guarantee

10) According to you, how long does CFL last?

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11) What colour should lighting be?

[ ] White [ ] Yellow [ ] Off-white [ ] Other

12) Which attribute is important to you before decide to buy CFL?

Very Important Important Not so Important

Price [ ] [ ] [ ]

Brightness [ ] [ ] [ ]

Energy efficient [ ] [ ] [ ]

Durability [ ] [ ] [ ]

Brand image [ ] [ ] [ ]

Replacement [ ] [ ] [ ]

13) Would you like to give any suggestion?

THANK YOU!

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consumer buying behaviour towards cfl

Documents

ix asian games

bhagwan mahavir

karuna engineer

compact fluorescent

equivalent

consumer buying

consumer electronics

incandescent