electronics retailing

8/8/2019 Electronics Retailing

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A study on Electronics Retail branded outlet

and consumer satisfaction with respect to it

Project Guide :

Prof. Jitendra Sharma

Presented By :Nischal Chudasama 018

Bhagyesh Takoliya 111


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Problem Definition

To check out the what customer think

about the electronics retail branded

outlet and what kind of electronicsstores they prefers to purchase

electronics product.


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Application of the report

This report can be used by other managementstudent for getting idea about the electronicsretailing industry.

This report would be beneficial for existing playersto improve their services to serve customer better.

The company can use the details of this report forunderstanding the customer requirement andconstructing their strategies accordingly.


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Introduction

Home Appliances

Home appliances are electrical/mechanical appliances

which accomplish some household functions, such ascooking or cleaning.

The industry is represented by major international and

local players such as LG, Samsung, BPL, Videocon,Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool,

etc.


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Types of Home Appliances

Home Appliances

White Goods Kitchen

Appliances/BrownGoods

Consumer Electronics

Refrigerators

Washing Machines

Air-conditioners

Speakers and AudioEquipments

Mixers

Grinders

Microwave Ovens

I

ron Electric Fans

Cooking Range

Mobile Phones

Televisions

MP3 Players

DVD Players VCD Players


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Review of Literature

Roth, Perry H., Silverman, Alex (1995), Home appliance salesdeclined 5% in Jul 1995 over the same period in 1994, althoughmore than 50 million units were sold. Canadian and Mexicaneconomic conditions led to a poor North American market.Unemployment in Europe is keeping demand low, but sales areincreasing in the Pacific Rim and Latin America.

Roth, Perry H., Lusk, Eric B., Silverman, Alex (1995), Homeappliance manufacturers enjoyed record financial performance in

1994, but domestic sales growth is expected to be relatively flatfor the foreseeable future. Manufacturers are hopeful that internalcost control measures will help their bottom lines, as well assignificant market opportunities in Asian and European markets.

Source: http://www3.interscience.wiley.com/journal/98517586/abstract?CRETRY=1&SRETRY=0

http://www.faqs.org/abstracts/Business-general/Home-appliance-industry-part-11.html


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The mean age of Indias population in 2006 was 27 years of age, andalmost 40% of the countrys population is below 20 years of age. This

young population has a high demand for products and services, with thelatest technology, good styling and affordable prices. Indias youngpopulation has also led to the rapid adoption of new technologies, oncetheir prices have fallen to affordable levels. Portable consumer electronicshas shown higher volume growth than in-home electronics or the after-market in in-car electronics in 2007.

(Source: Euromonitor International's Consumer Electronics in India report)

A study by the Mckinsey Global Institute suggests that if India canachieve 7.3 per cent annual growth a reasonable assumption if economicreforms continue consumer spending will quadruple from about 17 trillionIndian rupees ($372 billion) in 2005 to 70 trillion rupees in 2025. The

dramatic growth in India's middle class, which will constitute about 583million people, will power this surge. Consumer durables popularlyknown as white goods is expected to show a growth of 15 per cent, for thefiscal year ending March 2009, as against March 2008.


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Research Objective

To study the Home appliance industry.

To study overall industry as marketing,

finance and HR perspective.

To study Consumer Behavior toward

branded electronics retail stores.


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Research Methodology

Research Design

Descriptive research:

Data Collection:

Primary Data : -

Primary data consists of original information gathered for thespecific purpose.

Secondary Data : -

Secondary data consists of information that already exists

somewhere.

Sampling Plan:

Consumer: 200


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Industry Analysis


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Porters five force model

Threat of New Entrants (Low)

1 Many MNCs are already present and well established

2 Requires investment in localization, distribution reach

3 High growth potential could attract new entrants

Supplier Power (Adequate)

1 Adequate supplier base2 Most suppliers are small in scale and size as compared tomanufacturers

Competitive Rivalry (High)

1 Well established, strong players

2 Brand, cost and distribution are key differentiators

3 Ample opportunities for growth

Customer Power (High)

1 Wide choice of products

2 Well informed, increasingly demanding customers

3 Low penetration levels, large untapped market

Threat of Substitutes (No)

1 No substitutes currently for products in the sector


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Strengths

1. Presence of established distribution networks

2. Presence of well-known brands3. Organized sector has increased its share in the market

Weaknesses

1. Demand is seasonal and is high during festive season2. Demand is dependent on good monsoons3. Poor government spending on infrastructure4. Low purchasing power of consumers

Opportunities

1. In India, the penetration level of white goods is lower as compared to other

developing countries.2. Unexploited rural market3. Rapid urbanization4. Increase in income levels, i.e. increase in purchasing power of consumers5. Easy availability of finance

Threats

1. Higher import duties on raw materials imposed in the Budget 2007-082. Cheap imports from Singapore, China and other Asian countries

SWOT Analysis


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HR in Home Appliance Industry

Performance Evaluation

Behavioral Performance Feedback

Employee Attitude Survey

Customer Feedback

Performance and Potential Review


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Data analysis

(1) Are you eager to buy electronics consumer goods?

Yes, 88%

No, 12%


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(2) How often you buy electronics goods?

4-5 times/year,

28%

2-3 times/year,

33%

Once a year,

17%>5 times/year,

22%

(3) Which type of store you prefer to buy electronics good?

Unbranded,

39%

Branded,

61%


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(4) Why are you buying electronics goods from unbranded retail

stores?

Answer: Many customers are still to like or prefer buying goods from

unbranded retail stores because of following reasons:

Due to personal relation with them.

Customer loyalty towards unbranded retail stores.

(5) Which of the following electronics retail stores are you prefer for

buying electronics goods?

Croma, 29%

E-mall, 26%Vijay sales,

12%

Salesindia,

14%

Next, 8%

Others, 11%


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(6) How often you visit branded electronics goods stores?

Sometimes,

57%

Regular, 24%Never, 19%

(7) While purchasing Electronics goods which parameter influences you?

0%

5%

10%

15%

20%

25%

30%

35%

Price Features Brand Service Durability


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(8) Are you satisfied with the price taken by branded retail stores?

Yes, 82%

No, 18%

(9) Which Promotional tools you prefer for awareness of products?

Advertising,43%

Direct

Marketing, 27%

PersonalSelling, 16%

Others, 14%


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(10) Are you satisfied with service provided by branded electronics retail stores?

No, 21%

Y s, 79%

(11) Opinion towards branded Vs unbranded retail stores

Answer: In branded retail outlets numbers of products are available. So, as

per the customer views, it is easy for them to compare one branded product

with another one with respect to price, features, schemes etc. so, satisfaction

level is high in branded retail stores.


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Hypothesis Testing

Chi-square Test

Null Hypothesis Ho: Influence

Factors for purchasing

electronics consumer good is

independent of occupation.

Alternative Hypothesis Ha:

Influence Factors for

purchasing electronics

consumer good is not

independent of occupation.

Influence Factors

Occupation Price Features Brand Service Durability Total

Service 17 13 12 09 08 59

Business 12 14 11 07 05 49

Student 15 13 10 11 06 55

HouseWife 13 09 03 06 06 37

Total 57 49 36 33 25 200


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Degrees of freedom (5-1)(4-1)= 12

Level of Significance 0.05

Critical Value (Table Value) 21.026

Chi-square value Calculated 5.24242

Null hypothesis accepted 5.24242


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Research Findings

People are more prefer to buy electronics consumergoods from branded retail stores due to number ofavailability of different products with respect to

different brands. Out of all branded retail stores more customers are

prefer to go and buy products from Croma and e-mall.

Indian consumers are very price sensitive whilepurchasing the electronics good, they are moreinfluence through price.


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Product features, Brand, Services and durability ofproducts etc are important factors to influence theconsumers while purchasing electronic goods.

Most of consumers are satisfied with the price andservices offered by the branded retail stores.

Many customers are still to like or prefer buyinggoods from unbranded retail stores due to personalrelation with them and loyal customer of unbranded

retail stores.

Even though Customer satisfaction level is very highwhile purchasing products from branded retails storeas compare to unbranded retail stores.

Conti


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Conclusion

People are mostly prefer to buy electronicsconsumer goods from branded retail stores only.

People have responded well on promotional scheme.

Influence factors such as Price, Features, Brand,Services, durability etc are not depending onoccupation of consumers.

Consumers are satisfied with services offered bybranded retail stores and price is taken by them.


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Suggestions

Keeps detail information regarding the products

which are available in the retail stores.

Organized event for the loyal customers.

Take personal interest in customer while they are

visited branded retail stores.

Focus on using more promotional tools to attracts

the customers.


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electronics retailing

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