identifying factors affecting sales of home appliances in maharashtra
TRANSCRIPT
STUDYING THE MARKET FOR ONIDA WASHING MACHINES & MICROWAVE OVENS IN PUNE REGION
& INVESTIGATING THE POSSIBILITIES FOR INCREASING THE MARKET SHARE
With Emphasis on
Identifying Factors Affecting –
- Sales of ONIDA Washing Machines & Microwave Ovens in Pune Region, - Customer Satisfaction in Company’s After-Sales Service in Pune Region, and
- Consumer’s Preferences towards Choosing a Washing Machine & Microwave Oven,
Towards
SUMMER INTERNSHIP (April 8, 2010 – June 8, 2010)
At
MIRC ELECTRONICS INDIA Ltd. (ONIDA),Pune Branch
Under Guidance of
Mr. Chandrasekhar Singh Prof. R.J. MasilamaniBusiness Manager, ONIDA, Pune Branch BIMTECH
By
PARUL AGGARWAL09DM084
PGDM (2009-2011)
This is to certify that Ms. PARUL AGGARWAL, Roll No. 09DM084, a student of PGDM (Marketing)
has worked on a summer project titled “A Study of the Current Market for Washing Machines &
Microwave Ovens - Identifying Factors Affecting Sales of ONIDA Washing Machines & Microwave
Ovens in Pune Region and Investigating Possibilities of Increasing the Market Share” at MIRC
Electronics Ltd. (ONIDA), Pune, after Trimester-III in partial fulfillment of the requirement for the Post
Graduate Diploma in Management program.
This is her original work to the best of my knowledge.
Date: June 8, 2010 ____________________________(PROF. R. J.
MASILAMANI)
BIMTECH SEAL
DECLARATION
I, Parul Aggarwal, a student of Birla Institute of Management Technology (BIMTECH), hereby declare that I have
worked on a project titled “A Study of the Current Market for Washing Machines & Microwave Ovens -
Identifying Factors Affecting Sales of ONIDA Washing Machines & Microwave Ovens in Pune Region and
Investigating Possibilities of Increasing the Market Share” during summer internship at MIRC Electronics Ltd.
(ONIDA), Pune, for the partial fulfillment of the requirement for the Post Graduate Diploma in Management
program.
I indemnify my research work to be authentic and original to the best of my knowledge in all respects of the
process carried out during the project tenure.
My learning experience at ONIDA, Pune Branch, and in the market of the Pune Region (Pune, PCMC, Kolhapur,
Ratnagiri, Sholapur, Osmanabad, and Goa), under the guidance of Mr. Chandrasekhar Singh, Business Manager,
Pune Branch, ONIDA, and Prof. R. J. Masilamani, BIMTECH, G. Noida, has been truly enriching.
Date: June 8, 2010 _________________________
(PARUL AGGARWAL)
ACKNOWLEDGEMENT
I would like to heart fully acknowledge my gratitude and thanks to all the people who took active part in
accomplishing my project. To begin with, I would like to acknowledge my sincere thanks to Mr. Chandrasekhar
Singh (Business Manager, Pune Branch - ONIDA) for providing me the opportunity to do my summer training at
MIRC Electronics Ltd. (ONIDA). Without his guidance, support, and valuable suggestions during the research, the
project would not have been accomplished.
My heartfelt gratitude also goes to the entire ONIDA team at Pune Branch for their co-operation and willingness
to answer all my queries, which made the project possible by edge. I would like to extend my thankfulness
especially to Mr. Neeraj Bhat (Sales Manager, Pune Branch), Mr. Shirish Kalagi (Branch Accountant), Mr. Rajiv
Govande, Mrs. Linda Rebello and the entire sales and service team of ONIDA and ADONIS for their support and
valuable suggestions during these 2 months.
I also sincerely thank Prof. R. J. Masilamani, my faculty mentor at BIMTECH, who enthralled my views, took out
time to provide his valuable suggestions, shared his rich corporate experience, and helped me script down the exact
requisites.
Last, but not the least, I would like to thank all the Onidian and Non-Onidian dealers and distributors for sharing
their experience in the market and giving their valuable time to fulfill the questionnaires.
CONTENTS
1. ABSTRACT…………………………………………………………………………………….......................... 1-2
2. LITERATURE REVIEW2.1 Industry Profile ……………………………………………………………………………………………3-14
2.1.1 Consumer Durable Market in India – An Introduction2.1.2 Washing Machine Industry – An Overview2.1.3 Microwave Oven Industry – An Overview
2.2 Company Profile – MIRC Electronics Ltd. (ONIDA)………………………………………………….15-182.2.1 An Introduction 2.2.2 ONIDA Product Range – Washing Machines & Microwave Ovens2.2.3 Sales and Distribution Network – Pune Branch2.2.4 After Sales Service System – Pune Branch
3. FORMULATING THE MARKET RESEARCH PROBLEM APPROACH ……………………………..19-263.1 A Background Study 3.2 Marketing Research Problem Statement & Importance3.3 Approach to Research
4. RESEARCH OBJECTIVES ………………………………………………………………………………….27-28
5. RESEARCH METHODOLOGY …………………………………………………………………………….29-315.1 Research Design5.2 Data collection from Secondary Sources5.3 Data from Primary Sources5.4 Scaling Techniques5.5 Questionnaire development and pretesting5.6 Sampling5.7 Fieldwork
6. PRIMARY DATA ANALYSIS & RESULTS6.1 Washing Machines ………………………………………………………………………………………32-43
6.1.1 Assessing the Current Market and Positioning of ONIDA WM in Pune Region6.1.2 Identifying Factors Influencing the Sales of ONIDA Washing Machines6.1.3 Categorizing Consumer Behavior -
(Identifying Factors affecting Consumer preferences towards choosing Washing Machines)6.2 Microwave Ovens ………………………………………………………………………………………44-54
6.2.1 Assessing the Current Market and Positioning of ONIDA MO in Pune Region6.2.2 Identifying Factors Influencing the Sales of ONIDA Microwave Ovens6.2.3 Categorizing Consumer Behavior –
(Identifying Factors affecting Consumer preferences towards choosing Microwave Ovens)6.3 After Sales Service ……………………………………………………………………………………..55-58
6.3.1 Identifying Factors Influencing Customer Satisfaction in After Sales Service for ONIDA Washing Machines and Microwave Ovens
7. LIMITATIONS AND SCOPE OF PROJECT ……………………………………………………………..59
8. CONCLUSIONS & RECOMMENDATIONS ……………………………………………………………61-62
9. APPENDIX
9.1 Questionnaires and Forms ………………………………………………………………………………64-829.1.1 Questionnaire for ONIDIAN Dealers and Sub-dealers9.1.2 Questionnaire for Assessing Customer Satisfaction in ONIDA’s After Sales Service9.1.3 Questionnaire for Non-Onidian Dealers9.1.4 Questionnaire for Consumer Behavior Study for Washing Machines9.1.5 Questionnaire for Consumer Behavior Study for Microwave Ovens9.1.6 Form for assessing the Sales and Distribution Network of ONIDA, Pune Branch9.1.7 Form for assessing the present After Sales Service system of ONIDA, Pune Branch
9.2 SPSS Output Files ………………………………………………………………………………………..83-879.2.1 SPSS Output for Regression Analysis for Factors Affecting sales of ONIDA WM9.2.2 SPSS Output for Regression Analysis for Factors Affecting Sales of ONIDA MO 9.2.3 SPSS Output for Regression Analysis for Factors Influencing Customer Satisfaction in After-Sales
service of ONIDA
10. CD OF COMPILED DATA (Attached)10.1 Dealer-wise & Area wise Market Research data for Pune region (2010)10.2 Secondary Data analysis of 2009-2010 FY Sales data for WM and MO10.3 Consumer behavior data Analysis – WM and MO10.4 SPSS OUTPUT FILES
CHAPTER 1
ABSTRACT
In light of the intense competition facing the consumer electronics industry, manufacturers are constantly
engaged in the creation of new products and introducing new technologies that would hopefully win
consumers' acceptance. However, against a backdrop of changing technology and sophisticated consumer
wants, gaining customers’ acceptance and increasing market share for both existing and new products
becomes an uphill task. MIRC Electronics offers a wide range of consumer durables, including C-TVs,
LCD TVs, Air Conditioners, DVD Players, Microwave Ovens, Washing Machines, and Mobile Phones,
under the brand name ONIDA. Although the brand has been performing extremely well in the TV,
DVD, and AC categories, it is lagging behind LG, Samsung, Whirlpool, IFB, Kenstar, and other major
players in the categories of washing machines and microwave ovens, with a market share of only 6% and
8% respectively. In Pune region, ONIDA washing machines and microwaves ovens share only 5% and
7% respectively. Moreover, in top-loading washing machines, which are now more in demand, the share
by value and volume is just 3.3%. Besides, on analyzing the past 4 years’ sales data for different
territories in the Pune region, it was analyzed that more than 40% of the dealers, especially in the Pune
city, has stopped dealing with ONIDA washing machines and the sales of microwave ovens have also
been declining at these counters. In FY 2009-2010, there has been an increase of only 0.9% in sale of
washing machines over the past year, which is not a very encouraging figure.
Therefore, the primary aim of this research is to study the current market for ONIDA Washing
Machines & Microwave Ovens in the Pune Region, with emphasis on identifying factors affecting
the sales of these two product categories. In order to improve the market share and increase the scope
for repeated purchases and brand loyalty that eventually leads to optimum profitability, it is important for
marketers to first understand the consumer’s buying behavior and his preferences and perceptions towards
choosing the product. At the same time, after-sales service is equally important in satisfying consumer
needs, an important factor in creating long term profitable relationship with the customer. According to
Alexander et al, 2002, after-sales may generate more than three times the turnover of the original
purchase during a given product’s life-cycle, and often provides profitability higher than product sales
(Alexander et al., 2002). Therefore, as its secondary objectives, the research also aims at identifying
the factors influencing customer satisfaction in after sales service of the company and validating all
the key findings of the research with a consumer behavior study. The consumer behavior study
conducted as a part of the research not only helped in validating the research findings, but also
helped in identifying factors influencing the consumer preferences towards choosing washing
machines and microwave ovens. This research therefore uses mean and regression analysis (SPSS)
to statistically prove the results.
Keeping the research objectives in mind, data was collected from 100 direct dealers/distributors, 8 sales executives,
and 200 customers in the Pune Region, which comprises of the Pune City, PCMC (PIMPRI-CHINCHWAD
MUNICIPAL CORPORATION), Ahmednagar, Sangli, Satara, Kolhapur, Ratnagiri, Sholapur, and Goa.
The key findings of the research were that the sales of washing machines are being significantly affected by a poor
promotion mix, low dealer margins, product attributes not in accordance with customer demands, poor display
schemes, lack of in-shop demonstrators at the point of purchase, and an inefficient product placement. Lack of
distributor for washing machines in the Pune city limited the reach of the company till their direct dealers only. A
large number of sub-dealers were unaware of the product range due to lack of company visits. In case of microwave
ovens, inefficient promotional activities at local level and fewer efforts to make customers aware and educated about
the product led to decreased sales. The after sales service of the company is mainly affected due to lack of trained
technicians, regular monitoring system, inefficient customer service call centers, and low motivation of the
employees to follow up the dealers and customers with complaints.
The issues, pertaining to the 4 elements of the marketing mix, leading to decreased sales were recorded in detail
dealer-wise for both Onidian and non-Onidian dealers. If attention is paid to the above findings and each issue being
faced by all dealers, sales can improve significantly in the coming years.
CHAPTER 2
LITERATURE REVIEW
2.1 CONSUMER DURABLES - An Introduction
Consumer durables are the products whose life expectancy is at least 3 years. These products are hard
goods that cannot be used up at once. The consumer durables sector can be segmented into two broad
categories – Electronics and Consumer Appliances, which is further segmented into Brown and White
Goods. The product line included under each of these categories is as follows:
Consumer Electronics: VCD/DVD, home theatre, music players, color televisions (CTV’s),
LCDs, Mobile Phones.
White Goods: Air Conditioners, Washing Machines, Refrigerators, etc.
Kitchen Appliances/Brown Goods: Mixers, Grinders, Microwave Ovens, Chimneys, Cooking
Range, Irons, Electric Fans, etc.
2.2 INDUSTRY ANALYSIS –An Overview of the Indian Consumer Durables Market
India being the second largest growing economy with huge consumer class has resulted in
consumer durables as the fastest growing industries in India. LG, SAMSUNG the two Korean
companies have been maintaining the lead in the market with LG being leader in almost all the
categories. The rural market is growing faster than the urban market, although the penetration
level is much lower .The CTV segment is expected to the largest contributing segment to the
overall growth of the industry. The sector has been witnessing significant growth in recent years,
helped by several drivers such as the emerging retail boom, real estate and housing demand, greater
disposable income and an overall increase in the level of affluence of a significant section of the
population. The industry is represented by major international and local players such as BPL, Videocon,
Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool, etc.
2.2.1 Industry Size, Growth, Trends
The consumer durables market in India was estimated to be around US$ 5 billion in 2007-08. More than 7
million units of consumer durable appliances have been sold in the year 2006-07 with color televisions
(CTV) forming the bulk of the sales with 30 per cent share of volumes. CTV, refrigerators and Air-
conditioners together constitute more than 60 per cent of the sales in terms of the number of units sold. In
the refrigerators market, the frost-free category has grown by 8.3 per cent while direct cool segment has
grown by 9 per cent. Companies like LG, Whirlpool and Samsung have registered double-digit growth in
the direct cool refrigerator market. In the case of washing machines, the semi-automatic category with a
higher base and fully-automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to
229,000 units, respectively. In the air-conditioners segment, the sales of window ACs have grown by 32
per cent and that of split ACs by 97 per cent. Since the penetration in the urban areas for these products is
already quite high, the markets for both C-TV and refrigerators were shifting to the semi-urban and rural
areas.
Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej,
Allwyn, and Voltas were the major players in the consumer durables market, accounting for no
less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony,
Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the
major share of the consumer durables market. Consumer durables market is expected to grow at
10-15% in 2007-2008. Products like washing machines, air conditioners, microwave ovens, color
televisions (C-TV) were no longer considered luxury items. However, there were still very few
players in categories like vacuum cleaners, and dishwashers.
The growth of various goods in this sector is tabulated as follows:
Consumer Durables Growth
Air Conditioner 25-35%
Refrigerator 25-30%
Microwave Ovens 40%
Washing Machines 10-15%
Color Televisions (CTVs) / LCDs 25-40%
Table 1: Growth of Various Consumer Durables
Consumer durables sector is characterized by the emergence of MNCs, exchange offers,
discounts, and intense competition. The market share of MNCs in consumer durables sector is
65%. MNC's major target is the growing middle class of India. MNCs offer superior technology
to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local
market, their well acknowledged brands, and hold over wide distribution network. However, the
penetration Level of the consumer durables is still low in India. An important factor behind low
penetration is poor government spending on infrastructure. For example, the government spending is very
less on electrification programs in rural areas. This factor discourages the consumer durables companies
to market their products in rural areas.
2.2.2 Competition Analysis
Bargaining power of suppliers in consumer durables sector is
limited due to threat of imports and intense competition.
Some of the entry barriers in consumer durables sector are
distribution network, capital, and ability to hire purchases.
Demand is seasonal and cyclical.
Competition among players is on the basis of difference in
prices and well-acknowledged brands.
2.3 Current and Future Scenario In terms of Purchasing Power Parity (PPP), India is the 4th largest economy in the world and is expected
to overtake Japan in the near future to become the 3rd largest. Indian consumer goods market is expected
to reach $400 billion by 2010. India has the youngest population amongst the major countries. There are a
lot of young people in India in different income categories. Nearly two- thirds of its population is below
the age of 35, and nearly 50 % is below 25. There are 56 million people in middle class, who are earning
US$ 4,400- US$ 21,800 a year. And there are 6 million rich households in India. The upper-middle and
high-income households in urban areas are expected to grow to 38.2 million in 2007 as against 14.6
million in 2000.
Rural sector offers huge scope for consumer durables industry, as it accounts for 70% of the Indian
population. Rural areas have the penetration level of only 2% and 0.5% for refrigerators and washing
machines respectively. The urban market and the rural market are growing at the annual rates of 7%-
10%and 25% respectively. The rural market is growing faster than the urban market. The urban market
has now largely become a product replacement market.
The bottom line is that Indian market is changing rapidly and is showing unprecedented business
opportunity. In 2009, microwave ovens and air conditioners registered a growth of about 40%. Frost-free
refrigerators have registered significant growth as many urban families are replacing their old
refrigerators. Washing machines, which have always seen poor growth, have seen reasonable growth
in 2006. More and more Indians are now buying electrical appliances due to change in electricity
scenario. With easy availability of finance, emergence of double-income families, fall in prices due to
increased competition, government support, growth of media, availability of disposable incomes,
improvements in technology, reduction in customs duty, rise in temperatures, growth in consumer base of
rural sector, the consumer durables industry is growing at a fast pace. Given these factors, a good growth
is projected in the future, too. The penetration level of consumer durables is very low in India, as
compared with other countries. This translates into vast unrealized potential.
2.3 THE INDIAN CONSUMER APPLIANCES MARKET
2.3.1. An Overview
The household appliances market reflects the sale of six product sectors: refrigeration appliances
(including fridges, freezers and fridge freezers), cooking appliances (including cookers, microwaves
ovens, cooker hoods, food processors and toasters), washing appliances (including washing machines,
clothes dryers and washer-dryers), room comfort and water heater appliances (which include air
conditioning, circulating and ventilation fans, space heaters and water heaters), vacuum cleaners, and
dishwashers. The market value has been calculated using manufacturer selling prices.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 10% for the five-
year period 2008-2013, which is expected to drive the market to a value of $7.7 billion by the end of
2013.The Indian household appliances market has grown at a strong rate in recent years. Further strong
growth is expected for the forecast period.
The Indian household appliances market generated total revenues of $4.8 billion in 2008, representing a
compound annual growth rate (CAGR) of 12.5% for the period spanning 2004-2008. In comparison, the
Japanese and Chinese markets grew with CAGRs of 1.1% and 7.5%, respectively, over the same period,
to reach respective values of $18.6 billion and $24.4 billion in 2008.Market consumption volumes
increased with a CAGR of 13.2% in 2004-2008 to reach a total of 34.7 million units in 2008. The
market's volume is expected to rise to 52.2 million units by the end of 2013, representing a CAGR of 10%
for the 2008-2013 periods. Refrigeration appliance sales proved the most lucrative for the Indian
household appliances market in 2008, generating total revenues of $1,445.3 million, equivalent to 30% of
the market's overall value. In comparison, sales of cooking appliances generated revenues of $1,405
million in 2008, equating to 29.1% of the market's aggregate revenues. The performance of the market is
forecast to decelerate, with an anticipated CAGR of 10% for the five-year period 2008-2013, which is
expected to drive the market to a value of $7.7 billion by the end of 2013. Comparatively, the Japanese
and Chinese markets will grow with CAGRs of 0.4% and 4.7%, respectively, over the same period, to
reach respective values of $18.9 billion and $30.7 billion in 2013.
Market Value
The Indian household appliances market grew by 9.4% in 2008 to reach a value of $4.8 billion. The
compound annual growth rate of the market in the period 2004-2008 was 12.5%.
Market Volume
The Indian household appliances market grew by 11.8% in 2008 to reach a volume of 34.7 million units.
The compound annual growth rate of the market volume in the period 2004-2008 was
13.2%.Refrigeration appliance sales proved the most lucrative for the Indian household appliances
market, generating 30% of the total revenues. In comparison, cooking appliance sales account for a
further 29.1% of the market's revenue.
Market Value Forecast
In 2013, the Indian household appliances market is forecast to have a value of $7.7 billion, an increase of
60.7% since 2008. The compound annual growth rate of the market in the period 2008-2013 is predicted
to be 10%.
Market Volume Forecast
In 2013, the Indian household appliances market is forecast to have a volume of 52.2 million units, an
increase of 50.4% since 2008. The compound annual growth rate of the market volume in the period
2008-2013 is predicted to be 8.5%.
2.3.2. Demand and Penetration Level of White Goods in India
In a study conducted by Frost & Sullivan and commissioned by India Semiconductor Association (ISA),
the demand for Consumer Appliances is projected to grow exponentially at a compounded annual growth
rate (CAGR) of 30%. The following graph illustrates the exponential growth and consumption pattern of
consumer appliances in India for 10 years, from 2005 to 2015.
According to National Council for Applied Economic Research (NCAER), Indian consumer class is
growing at a fast rate. This in turn is benefiting the consumer durables manufacturers. According
to the NCAER report, following are the demand and penetration figures for white goods and
appliances from 1995 to the present year (2010).
1995-1996 2005-2006 2009-2010
Demand 3.43 million 8.72 million 13.14 million
Penetration level 149 per 1,000 households 319 per 1,000 households 451 per 1,000 households
Table 2: Demand & Penetration of White Goods and Appliances from 1995-2010 (Source: NCAER)
The appliance market in India is dominated by foreign brands. Korean brands, followed by American brands like Whirlpool, have replaced once-popular Indian names Samsung, Onida, BPL, Voltas, Kelvinator, and Godrej as brand leaders. Only India’s Videocon is perceived to be competitive with foreign brands.
2.3.3 Problem of Indian Appliances Brands
The problem with Indian appliances brands seems to be the perception that they have not delivered
innovative products. Korean brands, in contrast, performed much better on this score while offering
value-for-money products, and this has earned them the confidence of Indian consumers.
Further, Indian appliance producers have not focused on harnessing the power of their brands by targeting smaller town markets and lower price points. At one time Indian appliance makers like Sumeet
and other local brands garnered sales volume through bargains, discounts and exchange offers. When Chinese players entered the market with competitively priced products, due to their extremely low production costs, the Indian players lost ground here as well. The only appliance segment in which Indian brands continue to steadfastly rule the market is mixer-grinders/food processors, where Indian products are designed to meet unique Indian kitchen needs. Recognizing the fact that Indian brands need a wider product portfolio, Godrej - a traditional home appliance manufacturer - is making a foray into production of color TVs and DVD players. MIRC Electronics, a maker of Onida brand TVs, has moved into appliances with its washing machines and air-conditioners. Perhaps they are hoping to duplicate the success of Korean brands, which flooded the Indian market with a wide range of products, but it remains to be seen if Indian brands in the appliance segment will win back the confidence of Indian consumers.
2.3.4. New Launches and Innovation Fuel Growth
Detergent-free washing machines, freestanding cooker hoods and microwaves helped drive growth as manufacturers targeted the premium end of the industry. Up to eight microwaves were launched in 2005 with LG Electronics India Pvt. Ltd. taking the lead. As Indian consumers became more sophisticated in their buying habits, companies were forced to bring in the latest products, designs and innovations to meet demand. Also interesting were the LPG-based and halogen heaters within the heating appliances range as LPG- bases heaters helped marketers to further expand their market into villages and smaller towns as well where electricity is still not frequently available.
2.3.5 A SWOT Analysis of the Indian Market for Washing Machines & Microwave Ovens
STRENGTHS WEAKNESSES
Presence of established distribution networks in
both urban and rural areas.
Presence of well-known brands
In recent years, organized sector has increased its
share in the market Vis-a-Vis the unorganized
sector
Demand is seasonal and is high during
festive season.
Demand is dependent on good monsoons
Poor government spending on
infrastructure
Low purchasing power of consumers
OPPORTUNITIES THREATS
In India, the penetration level of white goods is
lower as compared to other developing countries.
Higher import duties on raw materials
Cheap imports from Singapore, China and
Unexploited rural market
Rapid urbanization.
Increase in income levels, i.e. increase in
purchasing power of consumers
Easy availability of finance
other Asian countries
2.4 MARKET FOR WASHING MACHINES – INDIA Vs MAHARASHTRA
The washing machine market is valued at Rs. 1500 crore and is growing at the rate of 15% this year
(2009-10) compared to last year. The product line in this category is divided into 2 broad categories –
Semi-Automatic and Fully-Automatic. The fully automatic washing machine range is further divided into
2 categories- Top-Load and Front-Load. The fully automatic and semi-automatic sub category is growing
at the rate of 40% and 15% respectively. Washing machine sales is cyclical in nature and its sales
commences with the onset of monsoon. Some of the major players in the washing machine segment
include LG, Samsung, Whirlpool, Videocon, ONIDA, Haier, and Godrej. According to the ORG report of
2008-2009, the market share figures in for major players in this product category are as follows:
Fig.2: Market Share (Volume) of Washing Machines in INDIA
The market share (volume) figures as illustrated in Fig.1 above clearly indicate that taking the overall
washing machine sales into account, LG is the market leader in the Indian market with 23% share,
followed by Samsung (17%), Whirlpool(15%), Videocon (13%), Godrej (6%), and ONIDA (6%), in that
order. In the overall Indian market, ONIDA thus enjoys a 5th rank, which it shares with Godrej, in the
washing machine category. Similarly, in the Maharashtra Market, as illustrated in Fig.3 below, LG takes
the lead with 23%, followed by Samsung, Whirlpool, Videocon, Godrej, and ONIDA, in that order. In
Maharashtra, however, ONIDA is positioned at 6th rank with 8% market share, below Godrej (9%).
Fig.3: Market Share of Washing Machines (Overall) in MAHARASHTRA
2.4.1 Semi-Automatic Washing Machines – A Market Share Analysis
Table.3 gives the market share figures (volume) for different brands in the semi-automatic washing
machine category in Maharashtra, India, and Pune Region. The data, taken from the ORG Report (2008-
2009) clearly shows that LG is the leader in this category and ONIDA shares a uniform 5 th rank with
7.4% share in India, 11% in Maharashtra, and only 5% in the Pune market.
SEMI-AUTOMATIC (2008-2009)
BRAND% SHARE (VOL)
MAHARASHTRA INDIA PUNE REGIONLG 25.8 22.5 33Samsung 12.8 16.3 16Videocon 19.7 15.4 13Whirlpool 13.5 14.5 10Onida 11 7.4 5Godrej 8.7 7.1 17Electrolux 2.1 3.1 1.6Kenstar 1.4 2.8 1TCL 1.7 2.4 0.5
Haier 1.8 2.4 2Kelvinator 0.3 1.9 0.2Sanyo 0.5 1.8 0.1Maharaja 0.2 0.9 0Panasonic 0.2 0.5 0.5Local 0.2 0.5 0.1BPL 0.1 0.3 0Others 0 0.2 0 TOTAL 100 100 100
Table 3: Market Share Analysis for Semi-Automatic Machines (2008-2009): Source ORG Report (2009)
2.4.2 Fully-Automatic Washing Machines – A Market Share Analysis
Similarly, Table.4 gives the market share figures (volume) for different brands in the fully-automatic
washing machine category in Maharashtra, India, and Pune Region. The data, taken from the ORG Report
(2008-2009) clearly shows that LG is the leader in this category with 23.1 % share in the Indian market,
but the Maharashtra market is dominated by SAMSUNG with 19.8% market share. ONIDA is positioned
at a uniform 8th rank with just 3.3% share in India, 3.4% in Maharashtra, and only 2.8% in the Pune
market. LG, Samsung, IFB, and Whirlpool are the major players in this category.
FULLY-AUTOMATIC (2008-2009)
BRAND% SHARE (VOL)
MAHARASHTRA INDIA PUNE REGION
LG 17.8 23.1 19
SAMSUNG 19.8 18.9 18
IFB 14.4 16 8
WHIRLPOOL 15.7 15 25
VIDEOCON 7.9 8.1 9
GODREJ 9.3 4.9 7
ONIDA 3.4 3.3 2.8
ELECTROLUX 4 3.3 3
HAIER 1.3 2.3 2.4
SANYO 0.8 1.5 0.4
KENSTAR 2.8 1.4 1
SEIMENS 0.7 0.9 0.5
PANASONIC 1.3 0.8 3.2
TCL 0.4 0.2 0.2
TOSHIBA 0.3 0.2 0.2
HITACHI 0.1 0.1 0.1
SHARP 0 0 0.2
TOTAL 100 100 100Table 4: Market Share (Vol) for Fully Automatic Machines (2008-2009); source: ORG Report (2009)
The ORG Report (2008-2009) also indicates that ONIDA shares a 4% market share in the Top-Load FA
category in the Indian market and is positioned at 6th rank after SAMSUNG, LG, Videocon, Whirlpool,
and Godrej, in that order. On the other hand, in the Front-Loading segment, ONIDA has a negligible
market share of just 0.9% in Indian market, in which this particular segment is mainly dominated by IFB
(44.5% market share).
2.5 MARKET FOR MICROWAVE OVENS
Even as a host of electronic products made rapids inroads into Indian homes in the last decade, the microwave oven – an essential item in every kitchen in developed countries-did not. Homemakers preferred to make do with their gas stoves, Tawas and pressure cookers. Last year was different though. The microwave oven market jumped as much as 25 percent to about 2.4 Lakh units. This is still a fraction of the color television market, which stands at over 6 million units, but going by the current level of activity, microwaves in India appear set to go the global way.
A combination of factors has brought the market alive. Leading players like Samsung, LG, Whirlpool and Electrolux have introduced a range of models, with prices of entry level ones coming down to below Rs 6,000 last year. Many local players are sourcing products from China and selling it here at very attractive rates. LG, Samsung , Electrolux are also making determined efforts to get the homemaker to see the microwave as a cooking device, rather than as a mere reheating one, by holding country-wide cookery classes and home demonstrations. Some has also customized microwaves to Indian conditions—there are, for instance, Whirlpool microwaves that seek to replicate the tawa effect to make Indian items like parathas and crisp dosas, and those which enable steam cooking for items like idlis and dhoklas. Innovations are also making the product look increasingly attractive. The longstanding concern that microwaves destroy a lot of valuable nutrients, far more than other forms of cooking, is being sought to be addressed technologically. Samsung claims its patented bio ceramic enamel coating helps retain essential vitamins while cooking. With the increased purchasing power of the younger generation and with more and more women balancing home and careers, any product that provide convenience and saves time will be well accepted in time to come. As for the companies, with competition heating up with increasing capacities and players, companies with the ability to cater the requirements of middle
income households and with a certain level of indigenous know-how will emerge winners in this cluttered market.The product line in this product category is divided into 3 broad categories – Solo, Convection, and Grill. According to the ORG Report (2008-2009), the market share analysis in this category is as follows:
2.5.1 Indian Market Share Analysis for Microwave Ovens
According to the ORG Report for Consumer Appliances (2008-2009), the Indian market for microwave ovens is dominated by LG and Samsung with 29% and 22% market share (Volume) respectively, followed by IFB (17%), Kenstar (12%), and ONIDA (7%). ONIDA thus enjoys an overall India rank of 5th in this product category.
Fig.4: Market Share (Vol.) for Microwave Ovens _ India (2008-2009); Source: ORG Report (2008-2009)
2.5.2 Maharashtra Market Share Analysis for Microwave OvensSimilarly, in Maharashtra, the market for microwave ovens is dominated by LG and Samsung with 28% and 20% market share (Volume) respectively, followed by IFB (14%), Kenstar (11%), and ONIDA (9%). ONIDA thus enjoys a rank of 5th in this product category in Maharashtra as well. Godrej is a very close competitor of ONIDA in the appliances segment.
Fig.5: Market Share (Vol.) for Microwave Ovens _ Maharashtra (2008-2009); Source: ORG Report (2008-2009)
2.6 COMPANY PROFILE – MIRC ELECTRONICS LTD. (ONIDA)
2.6.1. An Introduction
The History- Onida is one of India's leading electronics brands, established as "MIRC Electronics" in
1981. Onida was started by G.L. Mirchandani and Vijay Mansukhani in 1981 in Mumbai. In 1982, Onida
started assembling television sets at their factory in Andheri, Mumbai. Since then, Onida has evolved into
a multi-product company in the consumer durables and appliances sector. Onida achieved a 100% growth
in ACs and microwave ovens and a 40% growth in washing machines last year. ONIDA came out with
the famous caption "Neighbors’ envy, Owner's Pride", another popular theme of the ads was
a devil complete with horns and tail. The devil has now been replaced by a married couple- Siddharth and
Ritu.
ONIDA Today- MIRC Electronics Ltd. is a leading Consumer Electronics Conglomerate of India with
2008-09 turn over of Rs.1800 Cr. It has the ownership of the Popular 'ONIDA’ Brand with 3200
Employees, 33 Branch Offices, 233 Service Centres, 1200 Trained Engineers, Network of 9000
Dealers & 180 Distributors and International Presence in CIS, UAE, Africa & China. MIRC Electronics
won an “Award for Excellence in Electronics” in 1999, from the Ministry of Information Technology,
Government of India. Onida with its Sales & Marketing office in Dubai reported a 215 per cent export
growth in two years, setting the base for an increased robust international presence. Onida products have
been favored by hypermarkets like Lu Lu Centres, Carrefours, Geants and Dasmans in GCC countries.
ONIDA Product Range - Today, in the Indian market ONIDA competes with all the local and
international brands in the following product categories – CTVs, LCDs, DVDs and Home Theater
Systems, Washing Machines, Microwave Ovens, Air Conditioners, Presentation Products, and Mobile
Phones. Refer to the ONIDA product line in the Washing Machine and Microwave Oven Category in
Appendix 3.
ONIDA Manufacturing Facilities: ONIDA has 3 Manufacturing Plants across the country - Wada,
Mumbai (7sigma plant), Roorkee, and Noida. These Mfg Plants are ISO 9001 and ISO 14001 certified
and having all world class facilities for Designing and Manufacturing of LCD TV, CRT TV, Projectors,
Air Conditioner, Microwave, DVD Player, Washing Machine etc.
2.6.2 Sales and Distribution Network – Pune Branch
The Sales and Distribution Network of the company in the Pune Region was assessed through a
general interview (Appendix 1.6) with the Business Manager, ONIDA, Pune Branch.
Description of Channel Partners: The regions covered under the functioning of Pune Branch include the
Pune City (PMC-Pune Municipal Corporation), PCMC (Pimpri-Chinchwad Municipal Corporation) area,
Kolhapur, Ratnagiri, Sholapur, Osmanabad, Goa, Ahmednagar, Sangli, and Satara. There is 1 distributor
each in Pune, PCMC, Goa, Ahmednagar, Sangli, Satara, Kolhapur, and Ratnagiri. Sholapur and
Osmanabad, on the other hand, has several distributors in place. Each of these distributors handles
distribution to several sub-dealers in their respective areas. Although these distributors handle the
distribution of the entire product range, there is no distributor as such in the Pune City to look after the
distribution of Washing Machines and Microwave Ovens. Besides, the major portion of the business
comes from the direct dealers, with whom the company deals directly. The whole region has a total of
130 direct dealers. The Channel partners have been divided into 4 categories – Class A+, Class A, Class
B, and Class C, depending on the total annual revenue generated by them for the company. The dealers
that achieve an annual sale of Rs. 3 crore and above for ONIDA are categorized as A+ dealers, while
those with an annual sale of Rs. 1.5 crore to Rs. 3 crore are categorized as Class A dealers. The remaining
is categorized under Class B and C.
Criteria for Selection of Channel Partners: The distributors and direct dealers are selected based on their
past and present performance in the market, capital investment, relevant experience in dealing with
consumer durables, and infrastructure available. However, there are no set guidelines for the above
criteria with the same being variable with market condition and turnover expected of a dealer.
Margins and Credit Policy: A 3% dealer margin is offered to the dealers on the products. Credit to the
dealers is given for 28 days. A CD (Credit discount) of 2.5% is given if payment is made immediately;
1% if payment is made within 21 days, and a CD of 1.5% if it is made within 10 days. No discounts or
other incentives are offered if payment is made beyond the 21 st day. No billing is done if outstanding is
beyond 28 days. All the dealer schemes are notified to the dealers on the 1 st of every OM (Onida Month)
or as and when they are changed.
Target Setting, Training, & Evaluation of Channel Partners: Target setting is a result of negotiation
between the distributor and the company. The targets for the direct dealers and distributors are set
according to their past records and growth in the industry. The distributors also assess their own targets.
Annual targets for the year are decided and the distributors can negotiate up to +/- 15% depending on the
current growth scenario and the seasonal and cyclical variation in demand of the products.
Information about the new products and company policies is given to distributors and direct dealers in the
dealer meets. They are evaluated based on value and volume sales figures and are terminated in case of
underperformance.
Sales Structure of the Company: At present, there are a total of 8 sales executives taking care of sales
and promotions in different areas under the branch. While Pune City has 2 sales executives, handling
different territories, each other area has 1 sales executive/manager each. They report to the Branch
Manager, who in turn has to report to the Regional Sales Head and the National Sales Head in hierarchy.
Stock and Return Policy of the Company: The distributor is supposed to maintain a stock of 30 days,
while the direct dealers are required to maintain a stock for 15 days (2 weeks). Replenishment of the stock
is done every week. The company takes return of the damaged or the unsold stock, on a case-to-case
basis.
Channel Conflicts: Although the extent to which the problems of undercutting and stock inflow affect the
channel cannot be ascertained, an approximately 1-2 % of the total market/sales is affected by such price
variations.
In Shop Demonstrators (ISD): The whole region under the Pune Branch has a total of 33 ISDs – 5 in
Pune, 3 in PCMC, 1 each in Ahmednagar, Kolhapur, Osmanabad, and Satara; 3 in Goa, and 2 each in
Sangli and Sholapur. The ISDs are responsible to take care of in-shop promotion and sales (at the point of
purchase) and are selected based on basic qualifications, overall personality, communication efficiency,
product experience, etc. Two-day training is provided to them after selection. The ISDs are placed at a
dealer counter only if it achieves a total sale of Rs.6-7 Lakh/month for the company. The ISDs are
monitored by the Activation Officer, who is also responsible for local and in-store promotional activities.
2.6.3. After Sales Service System – Pune Branch
The After Sales Service System of the company in the Pune Region was assessed through a general
interview (Appendix 1.7) with the Service Manager, ONIDA, Pune Branch.
The After Sales Service has been franchised to ADONIS, which operates 3 branches, 1 each in Pune,
Kolhapur, and Goa. The Pune Branch operates 5 service centers – 4 service centers (Sholapur, PCMC,
Kotrud, and Swargate) run by individuals, and 1 service depot (Ahmednagar) run directly by ADONIS.
The Kolhapur branch, on the other hand, has its service centers in Kolhapur, Sangli, and Ratnagiri. Goa
Branch has 1 service center at Panjim and 1 CRC (Customer Relation Center) at Madgaon. 80% of the
customers are recorded to launch their complaints directly at AEGIS, a centralized call center located at
Yerwada, Pune. The number of technicians at each service center varies as per the demand of the product.
These technicians are required to make 8 calls per day and are paid incentives on a per-call basis. They
are required to report to their respective Group Leaders at their service center after the call is closed, after
which the same is fed into a centralized CRM database. The spare part non-availability complaints are
recorded in the “PNA” database and are monitored accordingly. Technicians are trained in office
whenever a new product is launched. They are also responsible for installation and demos at time of
installation.
Regular visits are made by the service agents to the dealer counters to resolve any issues. A centralized
call service center number is provided to all the dealers and on all the products and catalogues. Nearly
20% complaints that are launched at the dealer counters are reported to the main service center or the
centralized call center by the dealers. A small customer call center is also operated in the office to follow
up with the dealers and handle the day-to-day complaints launched at the counters.
CHAPTER 3FORMULATING THE MARKET RESEARCH PROBLEM
3.1 BACKGROUND STUDY
3.1.1 Market Share Analysis in Pune Region
According the ORG report of Consumer Electronics and Home Appliances (2008-2009), ONIDA enjoys
a 7% market share in the Microwave Oven market (Fig.4) , while just a 6% market share by volume in the
washing machine category (Fig.2) in the Indian market. Also, although it claims a 7.4% market share
(vol.) in the semi-automatic WM segment (Table 3), it has merely 3.3 % market share in the Fully-
automatic WM segment. (Table 4)
Washing Machines: The situation, however, is grim if the Pune region market is assessed separately. The
following illustrations taken from the ORG Report (2009) clearly suggest that in Pune region of
Maharashtra, ONIDA claims just 5% of the total market (volume) in the Washing Machine category (Fig
6), with 5% share in Semi-automatic segment (Table 3) and just 2.2% share in the fully-automatic
segment (Table 4).
Fig.6: Market Share (Vol) data for Washing Machines_PUNE REGION; Source: ORG Report (2009)
Microwave Ovens: In case of Microwave Ovens, the ORG Report (2009) suggests that in Pune region of
Maharashtra, ONIDA claims 8% of the total market (volume) in the Washing Machine category (Fig 7),
and is ranked 5th after LG, Samsung, IFB, Kenstar, etc.
Fig.7: Market Share (Vol) Data for Microwave Ovens_Pune Region; Source: ORG Report (2008-2009)
3.1.2 ONIDA WASHING MACHINE SALES in PUNE REGION
Annual Sales Data: Annual Sales data of last 4 years (2006-2010) for ONIDA Washing Machines in
Pune Region was obtained from company’s internal records to analyze the current sales situation and the
percentage increase/decrease in sales over the last 4 years. On analyzing the annual sales figures for 4
years, it was clear that sales of WM increased significantly in the Pune region in 2007-2008, but
thereafter decreased tremendously (Graph 1). The decrease in sales in 2008-2009 can be attributed to the
global economic meltdown. However, there was only a 0.9 % growth in sales this FY (2009-2010)
over the last year. The negligible increase is worth considering and the factors responsible should
be assessed.
Graph.1: 4 years Annual Sales (Volume) of ONIDA Washing Machines in Pune Region (2006-2010)
Area-Wise Sales Data: On assessing the area-wise sales data for last four years (Table 5), it is clear that
while there was a 52.4%, 40.3 %, 35.7% increase in annual sales of washing machines in Goa, Kolhapur,
and Sholapur respectively, a sharp decline/decrease in sales was reported in other areas. In Pune and
PCMC, areas with maximum demand and largest number of direct dealers, sales of ONIDA WM
declined in FY 2009-2010 by almost 28% over the last year. This is a major point of concern, not
worth ignoring.
FYPUNE/PCMC Ahmednagar Sholapur Sangli/Satara Goa
Kolhapur Pvt Party Total
2006-2007 2143 247 119 326 830 393 51 4109
2007-2008 2781 487 94 312 897 311 76 4958
2008-2009 1556 590 311 326 722 345 243 4093
2009-2010 1120 574 422 278 1100 484 152 4130
%CHANGE FROM PREVIOUS YEAR -28.0 -2.7 35.7 -14.7 52.4 40.3 -37.4 0.9Table.5: AREA WISE SALES (2006-2010) OF ONIDA WASHING MACHINES in Pune Region
The results tabulated in Table 5, pertaining to the area-wise annual WM sales of ONIDA have been
illustrated in Graph 2, where in it is clear that maximum sales every year are achieved from Pune, but the
percentage of sales contributed from Pune region is decreasing every year since 2007. In simple words,
while ONIDA washing Machines are doing well in Goa, Kolhapur, and Sholapur over previous year, they
are losing their market in Pune, Ahmednagar, Sangli and Satara.
Graph.2: AREA WISE SALES (2006-2010) OF ONIDA WASHING MACHINES in Pune Region
Dealer-Wise Sales Data: On assessing the area-wise and dealer-wise sales data for FY 2008-2009
and FY 2009-2010, another interesting point that was quite clear pertaining to the status of WM
sales at each direct dealer counter has been tabulated below in Table.6. Nearly 41.1% of the direct
dealers of ONIDA have stopped dealing in ONIDA WM this year and other 20% dealer counters
showed a significant decline in sales of WM over previous year. In 1 year, 41.4%, 47.4%, and
45.7% direct dealers in Goa, Sholapur, and Pune/PCMC have stopped business in ONIDA Washing
Machines.
Category
Pune/PCMC Ahmednagr Sangli/Satara Sholapur Kolhapur Goa TotalNumber %
Number %
Number %
Number %
Number %
Number %
Number %
Total number of Direct Dealers in last 4 years 70 17 20 19 20 29
175
Stopped WM Business with 32 45.7% 5 29.4% 7 35.0% 9 47.4% 7
35.0% 12 41.4% 72
41.1%
WM sale declining at 14 20.0% 5 29.4% 5 25.0% 2 10.5% 420.0
% 5 17.2% 3520.0
%WM Improved/Improving at 24 34.3% 7 41.2% 8 40.0% 8 42.1% 9
45.0% 12 41.4% 68
38.9%
Table 6: Status of Washing Machine Sales at ONIDA's Direct Dealers_Pune Region (2010)
However, on the brighter side, WM sales have improved at a significant number of counters (39%) in all
regions. Addition of newer and aggressive dealers can be a reason to this, but an equal number of dealers
who stopped selling Washing Machines cannot be treated with indifference. (Fig 8)
Fig.8: Status of ONIDA Washing Machine Sales at Direct Dealers_Pune Region (2010)
3.1.2 ONIDA MICROWAVE OVEN SALES in PUNE REGION
Annual Sales Data: Annual Sales data of last 4 years (2006-2010) for ONIDA Microwave Ovens in Pune
Region was obtained from company’s internal records to analyze the current sales situation and the
percentage increase/decrease in sales over the last 4 years. On analyzing the annual sales figures for 4
years, it was clear that sales of MO increased significantly in the Pune region in 2007-2008, but thereafter
decreased tremendously (Graph 3). The decrease in sales in 2008-2009 can be attributed to the global
economic meltdown. There was a 7.9 % growth in sales of Microwave Ovens in this FY (2009-2010)
over the last year. The percentage increase is good enough, keeping in mind that microwave oven is still a
status symbol for a major portion of the Indian population and also that people are more cautious in
saving money after global recession. However, identifying the factors that influence the sales and choice
of microwave ovens can help boost sales and increase the market share.
Graph.3: 4 years Annual Sales (Vol) for ONIDA Microwave Ovens_Pune Region (2006-2010)
Area-Wise Sales Data: On assessing the area-wise sales data for last four years (Table 7), it is clear that
while there was a significant increase of 111.9% in sales of microwave ovens in Goa this year (2009-
2010) over the last year, the situation in Pune/PCMC was totally opposite. In the main city with
maximum contribution to sales, there was seen a 12.9% decrease in sales of MO over the previous
years. The reasons for the decline need to be assessed to improve the market share in the area like
Pune/PCMC that has the maximum number of people with high disposable incomes and a large number
of direct dealers. This is a major point of concern, not worth ignoring. There was a decent increase in
sales in all other areas (Table 7)
FYPUNE/PCMC
Ahmednagar
Sholapur Sangli/Satara Goa
Kolhapur
Pvt Party
Total
2006-2007 1710 117 129 348 467 671 60 3502
2007-2008 3838 169 197 166 304 411 41 5126
2008-2009 2759 201 192 183 219 242 103 3899
2009-2010 2402 242 291 279 464 433 96 4207
%CHANGE FROM PREV YR -12.9 20.4 51.6 52.5111.
9 78.9 -6.8 7.9Table 7: Area Wise Sales (Vol.) of Microwave Ovens_ (2006-2010)
The results tabulated in Table 7, pertaining to the area-wise annual MO sales of ONIDA have been
illustrated in Graph 3, where in it is clear that maximum sales every year are achieved from Pune, but the
percentage of sales contributed from Pune region is decreasing every year since 2007. In simple words,
while ONIDA microwave ovens are doing well in Goa, Kolhapur, and Sholapur over previous year, they
are losing their market in Pune/PCMC and the factors and reasons responsible should be found out.
Graph.3: Area Wise Sales (Vol.) of Microwave Ovens_ (2006-2010)
Dealer-Wise Sales Data: On assessing the area-wise and dealer-wise sales data for FY 2008-2009
and FY 2009-2010, another interesting point that was quite clear pertaining to the status of MO
sales at each direct dealer counter has been tabulated below in Table.8. Nearly 42.4% of the direct
dealers of ONIDA have stopped dealing in ONIDA MO this year and other 13.4 % dealer counters
showed a significant decline in sales of WM over previous year. In one year, 58.8% and 40.3%,
direct dealers in Sangli/Satara and Pune/PCMC respectively, have stopped business in ONIDA
Microwave Ovens.
CategoryPune/PCMC
Ahmednagar Sangli/Satara Sholapur Kolhapur Goa Total
Number %
Number %
Number %
Number %
Number %
Number %
Numbe
r %Total number of Direct Dealers in last 4 years 72 16 17 18 20 29 172 Stopped MO Business with 29 40.3% 5 31.3% 10 58.8% 7 38.9% 7 35.0% 15 51.7% 73 42.4%
MO sale declining at 14 19.4% 3 18.8% 3 17.6% 1 5.6% 2 10.0% 0 0.0% 23 13.4%MO Improved/Improving at 29 40.3% 8 50.0% 4 23.5% 10 55.6% 11 55.0% 14 48.3% 76 44.2%
Table 8: Analysis of Status of Microwave Oven Sales at ONIDA's Direct Dealers (2010)
However, on the brighter side, WM sales have improved at a significant number of counters (44.2%) in
all regions, except Sangli/Satara (just 23.5%). Addition of newer and aggressive dealers can be a reason
to this, but an equal number of dealers who stopped selling Washing Machines cannot be treated with
indifference. (Fig 8)
3.2 STATEMENT OF THE MARKETING RESEARCH PROBLEM
On the basis of the above background study, based on the secondary market share and sales data, it is
clear that the sales of Washing Machines and Microwave Ovens has declined significantly in the Pune
Region, especially in Pune/PCMC territory, which has the largest market compared to other territories.
Besides, a large number of direct dealers have stopped dealing in ONIDA WM and MO. Therefore, the
reasons for declining sales need to be assessed so as to be able to identify possibilities of increasing the
market share of ONIDA WM and MO in the Pune region.
3.3 THE RESEARCH APPROACH
In light of the intense competition facing the consumer electronics industry, manufacturers are constantly
engaged in the creation of new products and introducing new technologies that would hopefully win
consumers' acceptance. However, against a backdrop of changing technology and sophisticated consumer
wants, gaining customers’ acceptance and increasing market share for both existing and new products
becomes an uphill task. MIRC Electronics offers a wide range of consumer durables, including C-TVs,
LCD TVs, Air Conditioners, DVD Players, Microwave Ovens, Washing Machines, and Mobile Phones,
under the brand name ONIDA. Although the brand has been performing extremely well in the TV,
DVD, and AC categories, it is lagging behind LG, Samsung, Whirlpool, IFB, Kenstar, and other major
players in the categories of washing machines and microwave ovens, with a market share of only 5% and
8% respectively. Therefore, the primary aim of this research is to study the Consumer Durables
Market for ONIDA Washing Machines & Microwave Ovens in the Pune Region, identify factors
affecting the sales, consumer buying behavior, and customer satisfaction in after sales service in the
2 product categories, and suggest ways of improving ONIDA’s market share.
In order to improve the market share and increase the scope for repeated purchases and brand loyalty that
eventually leads to optimum profitability, it is important for marketers to first understand the consumer’s
buying behavior and his preferences and perceptions towards choosing the product. At the same time,
after-sales service is equally important in satisfying consumer needs, an important factor in creating long
term profitable relationship with the customer. According to Alexander et al, 2002, after-sales may
generate more than three times the turnover of the original purchase during a given product’s life-cycle,
and often provides profitability higher than product sales (Alexander et al., 2002). It would also be
interesting to see the possible impact of all the 4 elements of the Marketing Mix – Product attributes,
Pricing, Display schemes, Product placement, dealer profitability, and the Promotion Mix – on the sales
of these products. The other factors that might influence sales include the performance of sales executives
and the company’s in-shop demonstrators.
This research therefore uses regression analysis to identify (1) the relation between sales of ONIDA
washing machines & microwave ovens and various predictor variables, such as customer satisfaction
level in after sales service, dealer relationships, performance of the demonstrators, product attributes,
effectiveness of promotion efforts, pricing, dealer profitability, placement of products, and display space
for ONIDA products in the stores; (2) Factors affecting the customer satisfaction in after-sales service and
assess the impact of customer perception towards various aspects of MIRC’s after-sales services on
customer satisfaction levels, and (3) Most important parameters for selection of a brand by the customers
in the 2 product categories – Washing Machines and Microwave Ovens
As a background, it is extremely important to study the consumer durable market for washing machines
and ovens in the Pune Region and the positioning of ONIDA vis-à-vis other brands in terms of market
shares, product attributes, pricing, dealer margins, after sales service, and advertising. This would help to
understand the key areas where ONIDA needs to improve to compete with the market leaders in the 2
product categories. This would also help to understand the factors that make different brands more
saleable than others and the kind of models of washing machines and ovens the company should focus on.
Lastly, the research attempts to extract dealer and distributors’ perception about the product and
understand their Interface with the company to identify any other possible areas of improvement for
improving regional sales and the overall market share of the brand.
CHAPTER 4
RESEARCH OBJECTIVES
MAIN RESEARCH OBJECTIVES:
To analyze the market for washing machines and microwave ovens in Pune Region, with special
reference to ONIDA market share, and assess the marketing mix and positioning of ONIDA Vis-à-vis
other major brands in the 2 product categories.
To identify the main factors influencing sales of ONIDA Washing Machines and Microwave Ovens in
Pune Region.
To identify the main factors influencing the customer satisfaction in after-sales service of ONIDA.
To analyze the Consumer Buying Behavior, with emphasis on identifying consumer preferences towards
choosing Washing Machine or a Microwave Oven.
To suggest corrective measures to improve the market share of ONIDA Washing Machines and
Microwave Ovens.
SUB-OBJECTIVES:
Studying the Market for ONIDA Washing Machines (WM) & Microwave Ovens (MO) and assessing
the marketing mix and positioning of ONIDA Vis-à-vis other brands in the two product categories:
To evaluate the market share of ONIDA Washing Machines & Microwave Ovens in the Pune Region
To Compare the Product attributes, Price Mix, and Dealer Margins of ONIDA WM & MO with that of LG
and Samsung
To assess the dealer profiles, profitability, and effectiveness of product placement of ONIDA WM & MO
in Pune Region
To rank all the major players in the market on different elements of marketing mix and assess the
positioning of ONIDA with help of Perception Mapping.
Identifying the main factors influencing sales of ONIDA Washing Machines and Microwave Ovens in
Pune Region
To identify the reasons for the unwillingness of dealers to deal in ONIDA WM or MO.
To identify the features that makes ONIDA WM & MO saleable or non-saleable.
To use Regression Analysis to assess the correlation between annual sales and predictor variables, such as
Product attributes, Pricing, Display Schemes, Promotion Mix, Customer product awareness, Profitability,
product placement, dealer relations, performance of sales executives and in-shop demonstrators, and dealer
satisfaction in after sales service.
To identify the main factors influencing the customer satisfaction in after-sales service of ONIDA
To use Factor Analysis to identify the main factors influencing customer satisfaction in after sales
service.
To use Regression Analysis to find the correlation between the overall satisfaction in after sales service
of ONIDA and the effectiveness of various elements of delivery, installation, and warranty.
Analyzing the Consumer Buying Behavior
To understand the general consumer behavior for WM & MO
To identify the consumer preferences towards choosing Washing Machine or a Microwave Oven
To assess the extent of awareness for ONIDA Washing Machines and Microwave Ovens
CHAPTER 5
RESEARCH METHODOLOGY
5.1 TYPE OF RESEARCH DESIGN
Both, an exploratory and a conclusive research, were carried out to collect and analyze data in accordance
with the objectives. Exploratory research was carried out to study the sales and distribution network,
after sales service system, and the perceptions of the sales executives and the dealers. This helped to
identify the alternative courses of action, define the problem more precisely, isolate key variables and
relationships, gain insight for developing an approach to the research problem, and to establish priorities
for further research. Conclusive Research was then carried out to evaluate the present market share and to
identify various factors affecting (i) Sales (ii) Satisfaction in after sales service, and (iii) Consumer
preferences towards choosing a washing machine or a microwave oven. Both descriptive and causal data
was collected and used for arriving at conclusion.
5.2 DATA COLLECTION FROM SECONDARY SOURCES
Secondary data regarding the current scenario of the consumer durable market, national and regional
market share of washing machines and microwave ovens of different brands, sales growth of ONIDA in
the 2 product categories over the last 4 years, dealer-wise and product wise sales comparisons,
competitive pricing, product brochures of different companies, dealer margins, and details of pricing and
margins of various competitive brands were collected from the past research data, company’s official
records, internal sources, channel partners, and the internet journals.
5.3 DATA COLLECTION FROM PRIMARY SOURCES
Dealer Survey: Keeping in mind the main objectives of analyzing the positioning of ONIDA Washing
Machines and Microwave Ovens and identifying the main factors influencing the sales and after sales
service in the 2 product categories, personal visits were made to 100 Onidian direct dealers and
distributors, sub-dealers, and non-Onidian dealers from Pune Region (Goa, Ratnagiri, Kolhapur,
Sholapur, Osmanabad, PCMC, and Pune City) of Maharashtra. Data was collected by means of
questionnaires.
Consumer Survey: In order to measure the perception of the consumers about the criteria of choosing a
washing machine and the underlying factors, data from 200 consumers of washing machine and
microwave ovens, belonging to different segments, was collected through personal interviews, telephonic
interviews, and e-mails.
5.4 QUESTIONNAIRE DEVELOPMENT & SCALING TECHNIQUES
Dealer Survey:
- The questionnaires for dealer survey were constructed on a 5-point reverse Likert scale for all the
possible factors influencing sales. (1=Excellent; 2=Good; 3=Neutral; 4=Poor; 5=Very Poor).
- The factors are the various elements of marketing mix that were found to be the probable reasons
affecting sales, after a pilot study done to pre-test the questionnaires with 8 sales executives and 6
dealers in Goa.
- In the same questionnaire, dealers were also asked to rank the various brands from 1-8 (Ordinal
scale) on a set of criteria to assess the positioning of ONIDA in the 2 product categories by means
of perception mapping.
- Other dealer data, such as dealer profiles, annual sales, sales of ONIDA products, display space,
and perception, complaints and issues was collected using open end questions.
Consumer Survey:
- In order to measure the perception of the consumers about the criteria of choosing a washing
machine and the underlying factors, a questionnaire on different items related to the attributes of
preferring a washing machine was constructed on 5-point Likert scale for 25 attributes. Similarly,
a questionnaire on different items related to the attributes of preferring a microwave oven was
constructed on 5-point Likert scale for 26 attributes.
- The statements were measured on the reverse 5-point Likert scale where 5 indicate Least/Not
preferred and 1 indicates, Strongly Preferred. The maximum focus was given on quality,
durability, advertisement, product attributes, after sales service, and recommendations of friends
and dealers.
- Response was collected from 200 consumers selected at random from the Pune City, Noida,
Delhi, Bilaspur, and Gurgaon. As consumer behavior study is not restricted to a particular area,
the sampling done at random from different regions is justified.
- The questionnaires were pre-tested on 10 consumers to assess their validity and reliability.
Survey for After Sales Service:
- Keeping in mind the third objective of assessing the factors influencing the customer satisfaction
in after sales service for ONIDA washing machines and microwave ovens, a questionnaire on 16
different aspects of after sales service was constructed on Reverse 5-point Likert scale, with 5
indicating Very Poor and 1 indicating Very Good.
- Response was collected from the 100 dealers that deal in ONIDA washing machines and
microwave ovens.
- Their response was validated through customer complaints registered at their counter.
(Refer to all the Questionnaires and forms used during the surveys in Appendix 1)
5.5 SAMPLING
Dealer Survey: 100 dealers were interviewed from the major markets of Pune Region –Pune, PCMC,
Goa, Kolhapur, Sholapur, Ratnagiri, and Osmanabad. Out of these, sampling was done in a manner to
collect data from a more or less equal number of Class A+, A, B, and C dealers (as per turnover done for
ONIDA) to remove any bias. Similarly, out of the 100 dealers thus surveyed, 51 were Onidian direct
dealers, 26 were Onidian sub-dealers, and 23 were Non-Onidian dealers.
Consumer Survey: Response was collected from 200 consumers selected at random from the Pune City,
Noida, Delhi, Bilaspur, and Gurgaon. As consumer behavior study is not restricted to a particular area, the
sampling done at random from different regions is justified. Respondents were selected if and only if they
used washing machine, while possession of a microwave oven wasn’t a necessary criteria.
5.6 FIELDWORK
The data was collected in 2 months, w.e.f April 8, 2010 to June 7, 2010. Extensive field work was done while
visiting markets in Pune, PCMC, Sholapur, Kolhapur, Ratnagiri, Goa, and Osmanabad. All the dealers counters
were personally visited and assessed on terms of promotions, performance, performance of sales executives on the
field, and dealer issues. Similarly, a door-to-door survey was done in case of consumers who were personally
interviewed. During the fieldwork, the dealers and customers less aware of ONIDA product range were made aware
through distribution of brochures, small promotional activities, etc. All the data thus collected was classified,
tabulated and processed mainly to identify the group of determinants.
TOOLS AND TECHNIQUES USED:
Factor Analysis and Regression Analysis was used for data-reduction and summarizing. Factor analysis is a
Multivariate technique and is employed in the study for the purpose of analyzing the data. The Principal Component
Method is considered appropriate, as the primary purpose is to determine the minimum number of factors that would
account for the maximum variance in the data collected. The data would be analyzed by using SPSS, version – 17.
Regression analysis would be used to see the correlation between the dependent and independent variables and
assess the influence of the relevant factors on sales or customer satisfaction.
CHAPTER 6
PRIMARY DATA ANALYSIS
ONIDA WASHING MACHINES
6.1 Assessing the Current Market and Positioning of ONIDA Washing Machines
6.1.1 Evaluating the Present Market Share of ONIDA Washing Machines in Pune Region
In order to evaluate the present market share of ONIDA Washing Machines, each of the 100 dealers were asked their annual WM sales and ONIDA sales in volume for FY 2009-2010 and the ONIDA market share was calculated area-wise and in total for Pune region as follows, as depicted in Table.9.
Table.9 : ANNUAL WM SALE (2009-2010)
AREA TOTAL WM SALE TOTAL ONIDA SALE % ONIDA SHARE (VOL)
Pune/PCMC 30487 950 3.1%
Kolhapur 2490 282 11.3%
Ratnagiri 600 45 7.5%
Sholapur 4040 406 10.0%
Goa 3500 433 12.4%
TOTAL 41117 2116 5.1%
From the above table, it is clear that the ONIDA Washing Machines has an approximate share of 5.1% in the Pune Region for this year. It is the least (3.1%) in Pune/PCMC city and this is a grim situation that demands immediate consideration.
6.1.2 Assessing Dealer Profiles and Profitability of ONIDA Washing Machines
Table 10 ANALYSIS OF DEALER PROFILES
Category Total Surveyed A* A B C
ONIDIAN DIRECT DEALERS 51 17 11 18 5
ONIDIAN SUB DEALERS 26 0 4 14 8
Total 77 17 15 32 13
% 22.1% 19.5%41.6
%16.9
%
NON-ONIDIAN DEALERS 23 10 0 6 7
Total Surveyed 100 27 15 38 20
In the dealer survey conducted, dealers with a total turnover (for all brands and products)of less than 1.5 crore were categorized as “C” class, while those with a turn over between 1.5-3 crore were categorized as class “B” dealers. Dealers with turnover up to Rs. 5 crore were under Class “A”, while those with more than Rs. 5 crore were Class “A+” dealers. According to the data tabulated in Table 10, only 22.1 % of the
total dealers that deal in ONIDA WM belong to the A+ category and as many as 10 A+ counters have no placement of the product. Although, 41.6% of ONIDIA WM dealers belong to A/A+ category, and an equal percentage belongs to B category, it is good picture. But, as number of non-Onidian dealers surveyed is less than the Onidian dealers, the results can be biased.
On further analyzing the profiles of the Dealers dealing in ONIDA washing Machines, it was found out that 53% of the dealers don’t deal in Washing Machines. Although only 25.5% of the direct dealers don’t sell WM, a significant number of sub-dealers (69.2%) do not sell ONIDA washing machine. As the sub dealers are large in number and occupy a huge market, it is important to pay equal attention to their issues as negative word of mouth spread from each of these counters culminate into a wide spread negative word-of-mouth in the market, which is affecting sales.
PROFILE OF DEALERS DEALING WITH ONIDA WM
CATEGORY Total Number Sell ONIDA WM Don't Sell ONIDA WM
Number %
Total Dealers Surveyed 100 47 53 53.0%
DIRECT DEALERS 51 38 13 25.5%
A+ 17 12 5 29.4%
A 11 7 4 36.4%
B 18 16 4 22.2%
C 5 3 0 0.0%
SUBDEALERS 26 8 18 69.2%
A 4 1 3 75.0%
B 14 2 12 85.7%
C 8 5 3 37.5%
NON-ONIDIAN 23 0 23 100.0%
Reasons of NOT Dealing in ONIDA WM (Total:53 dealers)Table: 11: Analysis of ONIDA WM Dealer profiles
Table 12 depicts that semi-automatic washing machines of ONIDA are among the top-3 selling brands at 40.4% of the counters. However, the Top-Loading machines sell among the top 3 at only 8 counters out of 100 surveyed, which shows that significant amount of focus should be paid on the top-loading machines, which are much more in demand in areas like Pune/PCMC. The profitable counters, categorized as A+, A, B, and C, can be seen in Table 12.
PRESENCE/PROFITABLE COUNTERS Number %Total Counters where ONIDA WM present 47 Counters where ONIDA Semi-A is in Top 3 Selling Brands 19 40.4%Counters where ONIDA FA WM in Top 3 selling Brands 8 17.0%A+/A Counters where ONIDA WM IN Top 3 Selling Brands 9 19.1%B Counters where ONIDA WM IN Top 3 Selling Brands 7 14.9%
C Counters where ONIDA WM IN Top 3 Selling Brands 3 6.4%Table.12: Analysis of Presence of ONIDA WM at Profitable Counters
6.1.3 Assessing Effectiveness of Product Placement of ONIDA WM
In the dealer survey, the dealers were required to rank the various types and segments of Washing
machines according to their annual sales (all brands combined). (1= max. Sales; 5=Lowest sales). An
average of these rankings, segment-wise and area-wise, was calculated as follows (Table 13).
MOST SELLING WASHING MACHINE CATEGORY IN DEMAND (Average Ranking)
AREA SA TL FL 5.5 6 6.2 6.5 6.8+
Pune City/PCMC 2 1 3 5 1 3 1 4
GOA 2 1 3 5 4 2 1 3
Kolhapur 2 1 3 5 3 1 2 4
Ratnagiri 1 2 3 4 3 2 1 5
Sholapur 1 2 3 5 1 1 1 4
Whole Region 2 1 3 5 2 3 1 4Table 13: Dealer Survey - Most selling wm category in demand - Average Ranking
Graph 4 and 5 on the other hand depict the annual sales of ONIDA washing machines in different
categories, area-wise and segment-wise. On comparing Table 13 with Graphs 4-5, it is clear that although
the Top-Loading machines are more in demand in Pune/PCMC region, Goa, and Kolhapur, a significantly
high number of semi-automatic machines have been sold here. This shows that semi-automatic machines
of ONIDA are more in demand, but more focus on top-loading machines in these areas can tremendously
increase sales.
Graph 4: Annual sales and fully automatic WM_areawise
Graph 5: Annual sales of ONIDA WM_Segment wise
Similarly, washing machines of 6, 6.5, and 6.2 kg are more in demand. Although, graph 5 shows that
placement is good and in accordance with the overall demand, it is necessary to focus area wise demands
to achieve more sales and market share.
6.1.4 Assessing the Positioning of ONIDA - Perception Mapping
In order to assess the positioning of ONIDA washing Machines, the dealers were asked to rank the major players in the washing machine segment on various attributes, such as Promotion mix, pricing, Product placement, after sales service, profitability, and annual sales. As is clear from the perception maps, according to the common dealer and customer perception and actual sales data, ONIDA is at rank 5th in
Ranking Based on Product Attributes and Price mix
…semi-automatic range, while at 7th position in Fully Automatic range. According to these perception maps, ONIDA Washing Machine need to be improved on product attributes, product placement of top-loading machines, after sales service, and the promotion mix. This has to be, however, further verified by statistics.
Ranking Based on Annual Sales of SA and FA
6.1 Identifying the Factors Influencing Sales of ONIDA WM
On calculating the mean (average rating) for all the factors that were rated by the dealers on a Reverse scale of 1-5 (1=Excellent; 2=Good; 3=Neutral, 4=Poor; 5=Very Poor), following results were obtained, clearly indicating several variables that needs to be improved and might be the major cause of declining sales. All the factors related to promotion, service, ISD performance, and display schemes are poor on average rating and must be improved to have better relations with the dealers.
ANALYSIS OF FACTORS AFFECTING SALES OF WM
COMPONENT FACTORS Mean Rating on scale of 1-5 RATINGC1 (Pdt Attributes) X1 Product Attributes 3.4 Moderate/Neutral C2 (PRICE MIX) X2 Pricing 2.8 Moderate/Neutral X3 Display Schemes/Warranty 4.1 Poor C3 (PLACE) X4 Dealer Relation 3.1 Moderate X5 Profitability (DM +Vol) 3.2 Moderate X6 Product Placement 3.4 Moderate C4 (PROMOTION) X7 Customer Product Awareness 4.8 V. Poor X8 In store promotion 4.0 Poor X9 Display Space 4.1 Poor X10 Live activities 4.6 V. Poor X11 Local Ads 4.1 Poor C5 (SERVICE) X12 After Sales Service Satisfaction 4.0 Poor X13 Technicians Performance 4.1 Poor C6 (PEOPLE) X14 Sales Exe Performance 2.9 Moderate/Neutral X15 ISD Performance 4.0 Poor
DV X16 Annual Sales 4.4 Poor (<6% share)
Table 14: Analysis of Factors Affecting Sales of WM
6.1.1 Regression Analysis
Regression Analysis was performed using SPSS 17.0 to assess the correlation between Annual sales as the “Dependent Variable” and all other factors from X1-X16 as the independent variables. The SPSS output for regression (Appendix 2) showed the following:
- There is a significant correlation (0.761) between annual sales of WM with the satisfaction in after sales service.
- There is partial correlation (0.5-0.6) between annual sales and factors such as ISD performance, customer product awareness, live activities, display schemes, and in store promotions
- The negative correlation is due to the use of reverse Likert scales.
- As the correlation is not more than 0.80 between any two or more predictor variables, there is no threat of multi-collinearity and no factor analysis needs to be done for reduction of data. This is corroborated by the Tolerance and VIF values in the collinearity diagnostics table in the output, as the tolerance for each variable is more than 0.20 and VIF is less than 5.
- Further, a strong R value of 0.844 shows a significantly high correlation between annual sales and all the above variables and they must be take care of to improve sales.
- Among the other reason found from the survey, it was analyzed that the absence of a distributor for Washing machines in the Pune region is the main cause why the sales at sub dealer end are declining.
6.2 CONSUMER BEHAVIOR STUDY OF WASHING MACHINES
6.2.1 Assessing the General Consumer Behavior
In the consumer surveys, as depicted in the above exhibits, it was found that most consumers for washing machines belong to the middle class families, with an annual income of Rs. 3.5 Lakh and above.
Similarly, the joint families, Nuclear families with kids and double income couples made the majority of the washing machine consumer sample.
On analyzing the type of washing machine in demand, the secondary data from the past sales data and the dealer survey was corroborated by the fact that most consumers preferred 6 kg-6.5 kg washing machine, with almost 33% consumers having possession of a 6 kg washing machine. Almost 52% consumers had top-load and negligible has a front-load machine. Thus, more focus should be on Top-Loading machines.
As illustrated in the following exhibit, the main reason for purchase of washing machine was rainy season (25%), to save time (23%), and to replace the old model or machine (20%).
When consumers were asked about the medium of awareness or the medium that inspired them the most for buying the brand of washing machine they chose, 60% consumers claimed to have decided their choice from the National TV ads for washing machines and 28% referred to the local ads. ONIDA
should focus on TV ads, if wants to create awareness about its machines, as almost 85% customers claimed that they haven’t heard of ONIDA washing Machines!
6.2.2 Identifying Factors Influencing Consumer Preferences towards Choosing Washing Machines
In order to identify the various factors influencing consumer preferences towards choosing washing
machines, 200 consumers were asked to rate the various factors listed below on a reverse scale of 1-5
(1=Most preferred when Buying; 5=Least/Not preferred). On calculating the average ratings (Table 15), it
was evident that most customers preferred the product attributes such as – (i) Auto clean function/germ
filters; (ii) Rust free body (iii) Capacity (iv)Steam wash (v) auto soak (vi) transparent lid (top cover) (vii)
more dark colors. ONIDA washing should therefore focus more on these attributes while designing their
products.
In promotion and price mix, customers highly preferred low price, free ad-on products, display schemes,
advertisements, and brand image. Therefore, it is important to lure customers with ads and free ad-on
products/display schemes like a 1 year detergent subscription or washing tub and accessories, etc. along
with the product.
Another very important factor preferred by more than 90% customers was after sales service and its
reputation in the market. Therefore, it is important for the company to remove the negative word of mouth
regarding the services of the product, already prevailing in the market.
COMPONENT FACTOR Average Rating Comments
C1 (Pdt Attributes) X1 wash technology 2.4 Preferred
X2 germ filters/auto clean 1.3Most Preferred
X3 higher durability/rust free body 1.1Most Preferred
X4 space occupied by machine 3.7 Less preferred
X5 motor speed 2.3 Preferred
X6 capacity 1.4Most Preferred
X7 fully automatic features 2.4 Preferred
X8 in built heater/steam wash 1.4Most Preferred
X9 auto soak 2 Preferred
X10 user frndly panel 2.4 Preferred
X11 aqua store 2.1 Preferred
X12 aesthetic finish/transparent lid 1.4
Most Preferred
X13 color 1.2
Most Preferred
X14 wool wash 2.3 Preferred
C2 (Promotions)X15 brand image 1.3
Most Preferred
X16 frnds recommendations 3.2 Neutral
X17 advertisements 1.3
Most Preferred
X18 self-explanatory brochures 2.3 Preferred
X19 live demo before purchase 4.2 Less preferred
C3 (Pricing)X20 free ad on products (detergent subscription, etc) 1.3
Most Preferred
X21 price 1.4
Most Preferred
X22 discount offer/financial schemes 3.5 Neutral
C4 (Place)/OthersX23 dealer recommendations 2.2 Preferred
X24 after sales service 1.4
Most Preferred
x25 proximity to dealers 2.4 Preferred
Table 15: Consumer preferences for Buying Washing Machines
Conclusion: Thus, the dealer and the consumer survey of ONIDA washing machines clearly indicate beyond doubt that the sales of ONIDA washing machines are affected mainly due to (i) lack of product attributes that are in demand (ii) Lack or negligible promotional activities on national and local level to create a brand image or awareness (iii) Poor performance of ISDs and lack of display schemes like that of competitors (iv) poor service or the prevailing negative word of mouth about the service (v) uneven
distribution to only a few major dealers; (vi) No focus on fully automatic and absence of an aggressive distributor for WM to take care of the unsatisfied and unattended sub-dealers.
ONIDA MICROWAVE OVENS
6.1 Assessing the Current Market and Positioning of ONIDA Microwave Ovens
6.1.1 Evaluating the Present Market Share of ONIDA Microwave Ovens in Pune Region
In order to evaluate the present market share of ONIDA Microwave Ovens, each of the 100 dealers were asked their annual MO sales and ONIDA sales in volume for FY 2009-2010 and the ONIDA market share was calculated area-wise and in total for Pune region as follows, as depicted in following table.
ANNUAL MO SALE (2009-2010)
AREA TOTAL MO SALE TOTAL ONIDA SALE % ONIDA SHARE (VOL)
Pune/PCMC 20983 1382 6.6%
Kolhapur 1312 263 20.0%
Ratnagiri 300 22 7.3%
Sholapur 2930 253 8.6%
Goa 3400 255 7.5%
TOTAL 28925 2175 7.5%Table 16: Calculating the Market Share for MO (2010)
From the above table, it is clear that the ONIDA Microwave Ovens have an approximate share of 7.5 % in the Pune Region for this year. It is the least (6.6%) in Pune/PCMC city and this is a situation that demands immediate consideration.
6.1.2 Assessing Dealer Profiles and Profitability of ONIDA Microwaves
PROFILE OF DEALERS DEALING WITH ONIDA MO
CATEGORY Total Number Sell ONIDA MO Don't Sell ONIDA MO
Number %
Total Dealers Surveyed 100 57 43 43.0%
DIRECT DEALERS 51 42 9 17.6%
A+ 17 12 5 29.4%
A 11 8 3 27.3%
B 18 17 1 5.6%
C 5 5 0 0.0%
SUBDEALERS 26 15 11 42.3%
A 4 1 3 75.0%
B 14 12 2 14.3%
C 8 2 6 75.0%
NON-ONIDIAN 23 0 23 100.0%Table 17: PROFILE OF DEALERS DEALING WITH ONIDA MO
In the dealer survey conducted, dealers with a total turnover (for all brands and products)of less than 1.5 crore were categorized as “C” class, while those with a turn over between 1.5-3 crore were categorized as class “B” dealers. Dealers with turnover up to Rs. 5 crore were under Class “A”, while those with more than Rs. 5 crore were Class “A+” dealers. According to the data tabulated in above table , only 29.4 % of the total dealers that deal in ONIDA MO belong to the A+ category and as many as 10 A+ counters have no placement of the product. Almost 56.7% of ONIDIA MO dealers belong to A/A+ category, but 75% of the sub dealers belong to the A category and do not sell MO. But, as number of non-Onidian dealers surveyed is less than the Onidian dealers, the results can be biased.
On further analyzing the profiles of the Dealers dealing in ONIDA Microwave ovens, it was found out that 43% of the dealers don’t deal in MO. Although only 17.6 % of the direct dealers don’t sell MO, a significant number of sub-dealers (42.3%) do not sell ONIDA microwave ovens. As the sub dealers are large in number and occupy a huge market, it is important to pay equal attention to their issues as negative word of mouth spread from each of these counters culminate into a wide spread negative word-of-mouth in the market, which is affecting sales.
Table 18: Reasons of NOT Dealing in ONIDA MO (Total: 43 dealers)
Reason Responses
Number %
Negative word of mouth about after sales service 14 32.6%
Bad experience with service in the past 35 81.4%
Product features not in demand/not competitive looks 2 4.7%
Highly priced 5 11.6%
High dealer Margins or no dealer schemes 7 16.3%
No proper Distributor for WM/No proper product placement 13 30.2%
No interaction/No visits from company for MO 19 44.2%
No Brand pull or Awareness for ONIDA MO 12 27.9%
No local area or in-store promotional activities/cooking classes done in the area 40 93.0%
No awareness about MO in the area; No demand for the product itself 3 7.0%
The survey suggested (refer table above) that almost 93% of the dealers refused to deal in washing machines and microwave ovens because of no local area or in-store promotional activities or absence of cooking classes in that area. 81.4 % stopped business because of a bad experience of service in the past while almost 44.2% claimed that they don’t deal in MO as they have no visits/interactions from the company. The following table depicts that ONIDA MO are among the top-3 selling brands at 71.9 % of the counters, out of which 34.1 % are a+/A class counters.
PRESENCE/PROFITABLE COUNTERS Number %Total Counters where ONIDA MO present 57 Counters where ONIDA MO is in Top 3 Selling Brands 41 71.9%A+/A Counters where ONIDA MO in Top 3 Selling Brands 14 34.1%
B Counters where ONIDA MO in Top 3 Selling Brands 20 48.8%C Counters where ONIDA MO in Top 3 Selling Brands 7 17.1%
Table 19: Calculating the Presence of ONIDA MO at Profitable Counters
6.1.3 Assessing Effectiveness of Product Placement of ONIDA MO
In the dealer survey, the dealers were required to rank the various types and segments of Microwave
Ovens according to their annual sales (all brands combined). (1= max. Sales; 5=Lowest sales). An
average of these rankings, segment-wise and area-wise, was calculated as follows.
Table 20: MOST SELLING WASHING MACHINE CATEGORY IN DEMAND (Average Ranking)
Number of Counters where preferred are indicated Average Rank
AREA 17 19 20 21 23 25 26 28 30+ Convection Grill Solo
Pune City/PCMC 8 4 42 39 19 49 38 29 9 1 2 3
GOA 0 0 0 6 2 7 7 4 0 1 2 3
Kolhapur 0 1 4 6 6 7 5 1 0 1 2 3
Ratnagiri 0 0 0 1 1 1 1 0 0 1 2 3
Sholapur 0 0 2 2 0 3 2 2 2 1 2 3
Whole Region 8 5 48 53 27 66 52 36 11 1 2 3
RANK 8 9 4 2 6 1 3 5 7
The following Graphs on the other hand depict the annual sales of ONIDA microwave ovens in different
categories, area-wise and segment-wise. On comparing Table with Graphs, it is clear that the product
placement of more convection models in almost all cities is in accordance to the demand. MO of capacity
21, 25 and 26 L are more in demand and the focus is currently appropriate. However, the company
should now not focus on 20 L or Solo models as the demand is almost negligible. Convection range
of 123 auto cook menu is demanded in a smaller size than 28L, which is not much in demand.
Graph.5: Segment wise sales data_ONIDA MO
Graph.6: Area-wise sales of ONIDA MO in different segments
6.1.4 Assessing the Positioning of ONIDA MO
In order to assess the positioning of ONIDA Microwave Ovens, the dealers were asked to rank the major
players in the washing machine segment on various attributes, such as Promotion mix, pricing, Product
placement, after sales service, profitability, and annual sales. As is clear from the perception maps,
according to the common dealer and customer perception and actual sales data, ONIDA is at rank 3rd
in annual sales, looks, profitability, and at 2nd rank in the price mix. However, it lags behind in after
sales service and promotional activities. The Competitive brands are illustrated clearly in the graph
below, where the highest number 8 on Y-axis refers to highest share or rank.
6.2 Identifying the Factors Influencing Sales of ONIDA WM
According to the dealer survey, 60% of the customers purchase ONIDA microwave because of its aesthetic looks and reasonable pricing. On the other hand, 65-70% customers choose other brand over ONIDA because of negative word of mouth among customers regarding service, ineffective demos and promotional activities, and no awareness about the cooking classes.
What MAKES ONIDA MICROWAVE OVENS SALEABLE? (Total: 57 )
Reason/FACTOR Number of Responses
Number %Dealer Recommendations (Dealer has to push the stock) 25 44%
Aesthetic Look 34 60%
Auto Cook Menu 23 40%
Reasonable pricing 34 60%
Old reputation of ONIDA 19 33%
Service 1 2%
WhAT MAKES ONIDA MICROWAVE OVENS NON-SALEABLE? (Total: 57 )
Reason/FACTOR Number of Responses
Number %Negative word of mouth about service among customers 37 65%
Less Variety/Product Range in demanded size 10 18%
Ineffective Demos/promotional activities 40 70%
Ineffective cooking classes/no awareness about them 37 65%
Bad experience with other product of ONIDA 30 53%
High Pricing 5 9%
Table 21: Features that make ONIDA MO saleable or non-saleable
As cooking classes was one of the main reasons pointed out by the dealers, further enquiry about the
cooking classes suggested that 49% dealers felt that customers don’t prefer the ONIDA cooking classes
because of its far venue (in office, Pune, Dhole Patil Rd.), while 39% weren’t aware about the cooking
classes at all. A total of 80% customers and dealers believed that the ONIDA cooking classes are not
very effective in luring the customers. These dealers are mainly from far-away places like PCMC,
etc where people find it difficult to come to the cooking classes in Pune city. LG and Samsung on
the other hand conduct such classes not only in store but also at a central location in different
territories.
On calculating the mean (average rating) for all the factors that were rated by the dealers on a Reverse scale of 1-5 (1=Excellent; 2=Good; 3=Neutral, 4=Poor; 5=Very Poor), following results were obtained, clearly indicating several variables that needs to be improved and might be the major cause of declining sales. All the factors related to promotion, service, ISD performance, and display schemes are poor on average rating and must be improved to have better relations with the dealers.
Table 22: ANALYSIS OF FACTORS AFFECTING SALES OF MO
COMPONENT FACTORS Mean Rating on scale of 1-5 RATINGC1 (Pdt Attributes) X1 Product Attributes 2.8 Moderate/Neutral
C2 (PRICE MIX) X2 Pricing 2.8 Neutral
X3 Display Schemes/Warranty 4.0 Poor
C3 (PLACE) X4 Dealer Relation 3.0 Moderate
X5 Profitability (DM +Vol) 2.9 Moderate/Neutral
X6 Pdt Placement 3.2 Moderate/Neutral
C4 (PROMOTION) X7 Customer Pdt Awareness 4.2 Poor
X8 In store promotion 4.0 Poor
X9 Display Space 2.7 Good-Moderate
X10 Live activities 4.6 V. Poor
X11 Local Ads 4.1 poor
X12 Cooking Classes 4.3 Poor
C5 (SERVICE)X12 After Sales Service Satisfaction 3.8 Almost Poor
X13 Technicians Performance 4.0 Poor
C6 (PEOPLE)X14 Sales Exe Perf 2.9 Moderate/Neutral
X15 ISD Performance 3.8 Poor
DVX16 Annual Sales 4.1 Poor ; Between 5-10%
6.1.1 Regression Analysis
Regression Analysis was performed using SPSS 17.0 to assess the correlation between Annual sales as the “Dependent Variable” and all other factors from X1-X16 as the independent variables. The SPSS output for regression (Appendix 2) showed the following:
- There is a significant correlation (0.761) between annual sales of MO with the satisfaction in after sales service. There is partial correlation (0.5-0.6) between annual sales and factors such as ISD performance, customer product awareness, cooking classes, live activities, display schemes, and in store promotions
- The negative correlation is due to the use of reverse Likert scales.
- As the correlation is not more than 0.80 between any two or more predictor variables, there is no threat of multi-collinearity and no factor analysis needs to be done for reduction of data. This is corroborated by the Tolerance and VIF values in the collinearity diagnostics table in the output, as the tolerance for each variable is more than 0.20 and VIF is less than 5.
- Further, a strong R value of 0.844 shows a significantly high correlation between annual sales and all the above variables and they must be take care of to improve sales.
- Among the other reason found from the survey, it was analyzed that the absence of a distributor for Microwave Ovens in the Pune region is the main cause why the sales at sub dealer end are declining.
6.2 CONSUMER BEHAVIOR STUDY OF MICROWAVE OVENS
6.2.1 Assessing the General Consumer Behavior
The consumer behavior study suggested that 40% of the MO consumers buy it based on references from friends and neighbors. Therefore, negative word of mouth for service in such a product category can be harmful for the sales. The remaining 18% and 15% go for dealer recommendations and national/local TV/newspaper ads.
Out of 200 consumers surveyed, 35 were found to not have a MO. Almost 43% of them said they don’t buy it as they are not aware of the use of the product. Therefore, customer education and promotional activities like cooking classes, live demos, etc, are a must to boost sales. Almost 67% customers of this
category said they would be interested in cooking classes if conducted for free at a convenient location.
According to the segmentation studies, Microwave Ovens are usually purchased by middle class, with an annual turnover of 3.5 Lakh and above. It is also more preferred in Nuclear families with teenager kids (24%) and so the promotional activities can be targeted at teenagers.
72% customers said that they are not aware of ONIDA microwave oven. This is probably due to lack of promotional activities in the society, area, dealer counters, and television.
The most common reason for purchase of Microwave Oven was found to be either to save time (33%) or received as a gift (27%).This is illustrated as follows:
6.2.2 Identifying Factors Influencing Consumer Preferences towards Choosing Microwave Ovens
In order to identify the various factors influencing consumer preferences towards choosing microwave
ovens, 165 consumers were asked to rate the various factors listed below on a reverse scale of 1-5
(1=Most preferred when Buying; 5=Least/Not preferred). On calculating the average ratings (Table 15), it
was evident that most customers preferred the factors such as – (i) Number of recipes, (ii) Overall look
(iii) Anti bacterial filters (iv) Steam clean (v) free ad on products (vi) advertisements (vii) live activities
ONIDA washing should therefore focus more on these attributes while designing their products.
COMPONENT FACTORAverage Rating Comments
C1 (Pdt Attributes) X1 Multi-Ethnic Menus/Recipes 2.1 Preferred
X2 Number of Recipes provided 1.3Most preferred
X3 Child Recipes 4.1 Less preferred
X4 Overall Look 1.3Most Preferred
X5 Color Choice 4.5 Less preferred
X6 Space Occupied by Oven 4.8 Not preferred
X7 Calorimeter/Health Features 4.1 Less Preferred
X8 Capacity 2,.3 Preferred
X9 Display Size and Type 3.2 Neutral
X10 Auto Defrost 4.1 Less preferred
X11 Anti-Bacteria Filters 1.5
Most Preferred
X12 Steam Clean 1.2
Most Preferred
X13 Brand Image 2.4 Preferred
X1 Cooking Classes 1.2 Most
4 Preferred
C2 (Promotions)X15 Detailed self-explanatory brochures 3.4 Neutral
X16
Free ad-on products (books, bowls, recipes, etc) 1.3
Most Preferred
X17 Friend recommendations 2.3 Preferred
X18 Advertisements 1.2
Most Preferred
X19 Live activities in Society 1.4
Most Preferred
C3 (Pricing)X20 Live activities at Dealer counters 2.1 Preferred
X21 Low Price 1.9 Preferred
X22 Discount offers/Financial schemes 1.4
Most Preferred
C4 (Place)/OthersX23 Dealer recommendations 2.3 Preferred
X24 Proximity to dealers 2.1 Preferred
x25 After sales service e 1Most Preferred
X26 Cooking detail demos at installation 1
Most preferred
Table 23: Identifying Consumer Preferences towards Choosing Microwave Oven
In promotion and price mix, customers highly preferred low price, free ad-on products, display schemes,
advertisements, and brand image. Therefore, it is important to lure customers with ads and free ad-on
products/display schemes like a recipe magazine subscription, bowls, gloves, cooking accessories, etc..
Another very important factor preferred by more than 90% customers was after sales service and its
reputation in the market. Therefore, it is important for the company to remove the negative word of mouth
regarding the services of the product, already prevailing in the market.
Conclusion: Thus, the dealer and the consumer survey of ONIDA microwave ovens clearly indicate beyond doubt that although the sales of ONIDA microwave ovens is good, but are affected mainly due to (i) Lack or negligible promotional activities on national and local level to create a brand image or awareness (iii) Poor performance of ISDs and lack of display schemes like that of competitors (iv) poor service or the prevailing negative word of mouth about the service (v) uneven distribution to only a few major dealers; (vi) Ineffective cooking classes on demos by technicians who do not have any cooking training.
ONIDA AFTER SALES SERVICE
6.3 Identifying Factors Affecting the Customer Satisfaction in After Sales Service of ONIDA
In the dealer survey, the Onidian dealers were asked to rate the various elements of after sales service, categorized under the three broad components – delivery, installation, and warranty – on a reverse scale of 1-5. On calculating the mean rating, following results were obtained.
Table 24: ANALYSIS OF FACTORS AFFECTING SALES OF WM
COMPONENT FACTORSMean Rating on scale of 1-
5 RATINGC1 (Delivery) X1 Reception of Invoice/Delivery Papers 1.8 Good X2 Transfer of Product to your Place 1.9 Good
X3 Reliability in delivery times 2.0 Good
X4 Quality of product when delivered at home 2.3 Good
X5 Quality of product packaging when delivered 2.4 GoodC2 (INSTALLATION) X6 Accurate info about installation 2.8 Satisfactory
X7 time elapsed btwn delivery and installation 3.6Satisfactory-Poor
X8 Attentiveness of technicians to avoid damage 3.4 Satisfactory
X9Advice and demo/instructions given by technicians 3.9 Poor
C3 (WARRANTY) X10 ONIDA's quality of response to complaints 3.8 Nearly Poor
X11 Time taken to respond to complaints 3.9 Poor
X12Repeat complaints; Satisfaction after 1st resolution 3.7 Nearly Poor
X13 Time taken to rectify failed item 3.8 Nearly Poor
X14 Availability of spare parts 4.3 Poor
X15Replacement of defective product, after 2-3 repairs 4.0 Poor
X16 Dealer repair quality outside warranty claim 2.3 Good
DV X17 Customer Satisfaction in AFS 3.8 Nearly Poor
A close observation of the average ratings suggest that while the overall satisfaction in after sales service
is nearly poor, the elements of warranty (response to complaints) and the technicians’ performance during
installations need to be improved considerably.
Following observations were made during the dealer survey:
1) Although the company claims to have a policy of replacing the product if it doesn’t work
properly even after 3 repairs/repeat complaints, the data shows that at most counters, more than a
month is taken for replacement of defective/damaged products. At times, dealers replace the
product for the customers (people prefer to take a different brand on replacement) themselves
and get no replacement in turn from the company. This has led to the situation that almost 60%
dealers claim to have lost confidence in services of the company and have stopped dealing in less
moving products like WM and MO.
2) Spare part availability for both new and old models is a major issue and neither company nor
dealers seem to have any suggestion it. LG, Samsung and other take no more than 15 days for
spare part availability.
3) Time taken to respond to complaints and repair is more than 1 week. No follow up is done with
customers after complaint launch.
4) Almost every dealer out of 100 claimed that the technicians are not trained properly to handle
electronics as well as appliances. Most technicians are not aware of product details like warranty
period, functioning, etc. They are less motivated (very less salaries) and do not pay regular visits
at counters to make calls registered at the dealers point. After demo call is launched, installation
is late and demos given during installation are poor.
5) Authorized service centers and technicians not available in far away areas on outskirts of Pune
like uruli kanchan, shirwal, chakan, pcmc, baramati. 1-2 technicians have to handle all these
areas and as they are very far, they don’t pay any visit for service issues.
6) Complaints over phone are not responded effectively over the phone. No call monitoring system
in place at call center.
7) Sub-dealers are not followed up for service issues and being large in number, they are the ones
that spread the negative word-of-mouth in the market. No distributor for Washing Machines and
Microwaves and the situation gets worse as no one to take care of sub-dealer needs. No company
visits are made to the sub-dealers.
8) Complaint registering system at the dealer counters and the service center system is not integrated
well. Dealers are not informed about the follow up done or about complaint resolution.
6.3.1 Regression Analysis
Regression Analysis was performed using SPSS 17.0 to assess the correlation between Overall customer
satisfaction in after sales service as the “Dependent Variable” and all other factors from X1-X16 as the
independent variables. The SPSS output for regression (Appendix 2.3) showed the following:
- There is a significant correlation (0.80 and above) between overall satisfaction and the efficiency
of the spare part availability, response to complaints, time taken to respond and rectify the failed
items and all the elements of under Component 3 (warranty).
- As the correlation is more than 0.80 between two or more predictor variables, there is a
significant threat of collinearity factor analysis needs to be done for reduction of data.
- Further, a strong R value of 0.968 shows a significantly high correlation between the listed
factors and the overall satisfaction in after sales service of the company.
CHAPTER 7
LIMITATIONS & SCOPE
Limitations:
All the regions under Pune Branch, such as Ahmednagar, Sangli, and Satara could not be covered
due to lack of time.
Survey from an equal number of Onidian non-dealer and sub-dealers could have possibly
removed any bias in the results. However, maximum attempt was made to avoid any such biased
sample while regression analysis.
The service centers of ADONIS and the service network could not be studied for further
recommendation on after sales service due to cost and time constraints.
Scope of the Project:
A detailed factor analysis can be done on consumer behavior data to find out all the possible
details, which are presently beyond the scope of the project.
If cost and time permits, a detailed survey of the service system, inventory planning, etc. can be
of great help in making meaningful recommendations.
Similar analysis of the major factors influencing sales of electronics can be done using regression
and the results can be further compared to see of there are common things that the company can
improve.
CHAPTER 8
CONCLUSION & RECOMMENDATIONS
AFTER SALES SERVICE SYSTEM
The comments and complaints of the dealers regarding service issues have been recorded in the
CD. If each of the complaint issue is accepted as genuine, then the solution is obviously to make
sure that they are taken care of.
What is required is giving top priority to After Sales Service, with the company taking the
initiative on warranty complaints ensuring prompt and effective attention to complaints
including handling the logistics and then training, motivating and incentivizing dealers who
do good after sales service
Firstly the company must give top priority to the function of after sales service. The Marketing
including Sales and after sales service functions should establish the need for drastic
improvement in the delivery as measured by promptness and effectiveness to each and every
complaint.
Adequate infrastructure in terms of place, people and materials especially critical spares must be
set up and kept in place.
The company must set targets for time duration and quality of service including repairs for all
service centers and for operatives.
The service technicians should be trained and motivated before being assigned to their respective
jobs.
Parts availability has to be accorded top priority. Here for critical parts even if excessive
inventory levels are maintained it should be considered as acceptable. Unfortunately most
companies fail here because these parts are also needed for production and if there is a lack of full
availability the spares function always suffers. Therefore instructions have to come from the
highest level and compliance monitored also at the highest level.
It is a serious mistake to outsource after sales service. No company that calls itself a good
company can afford to outsource this absolutely super critical function. The head of service must
be a very senior person and he should have and equally importantly be seen to have the
confidence and support of the top management. The service people also must be superior if not
excellent performers because it is here that customer loyalty is built and repurchase decisions can
take place when customers are satisfied.
Regular visit to the existing service centers and a study is required to make as well as
implement detailed suggestions on inventory planning, scheduling of repairs, tracking
service performance including quality and many more.
WASHING MACHINES
Product attributes must be improved in accordance with features in demand, as analyzed in the
consumer behavior studies.
Although pricing is appropriate, more focus should be on display schemes and free ad on
products to create visibility in stores. Whirlpool has recently started with 1 year free detergent
subscription. Similar schemes on a local level, like free ad on accessories (tubs, towels, cleaner,
or vouchers) can be used to lure the customers and create a little awareness.
Although dealer margins offered are much less than competitive brands, focus can be placed on
proper product placement. Although semi-automatic washing machines sell more, they become
slow-moving if placed in areas where top-loading is in demand.
Presence of a distributor for Washing Machines is a must in the Pune City Market. Others areas
with distributors like Sholapur and PCMC are doing much better than Pune city. Distributor
chosen must be aggressive. Alternatively, sales executives can be hired to pay regular visits to the
sub dealers.
Most of the sales are unevenly distributed among dealers. Only 1-2 major dealers are being
focused to achieve targets. A uniform approach and distribution is needed to prevent dependency
on a few dealers.
Live demos, in-store promotions, dummy models before the launch of new product, local ads, etc.
can help in creating awareness
More product range is advisable in the Top-Loading category
After sales service, especially, spare part availability should be improved.
Technicians should be properly trained in both electronics and appliances.
MICROWAVE OVENS
Display schemes, like ad-on (cooking accessories, bowls, gloves, etc), or subscriptions to recipe
magazines, and even free solo models on washing machines can help in creating visibility
Individual dealer issues, as recorded in CD, should be taken care of
Promotional activities and live activities such as society demos, cooking classes in the stores,
cooking competitions etc. can be helpful
Cooking classes should also be conducted at centralized locations so as to make them more
accessible to people.
Technicians should be trained to give proper demos for 10-15 minutes and cook a dish of
customers’ choice at time of installation.
Promotional activities should increase in areas like Goa during the coming Christmas.
Please Note: Individual issues at each dealer counter, as recorded in details in the attached CD should be addressed for better relations with dealers and improving sales of washing machines and
microwave ovens and the after sales service
APPENDIX 1QUESTIONNAIRES
FOR ONIDIAN DEALER/SUB DEALER SURVEY
S. No………………………………………
Name: ………………………………………………………………………………………………………………………………………………..
Area: ………………………………………………………………………………………………………………………………………………….
Address: ……………………………………………………………………………………………………………………………………………….
DEALER PROFILE
(i) Which ONIDA Products do you deal in?
TV LCD AC DVD P MOBILES WM MO
(ii) Choose the category you belong to in your dealings with ONIDA?
(a) DIRECT DEALER(b) SUB-DEALER (Mention your distributor …………………………………………..)(c) DISTRIBUTOR
(iii) What category you belong to in your dealings with other companies?
(a) Same as for ONIDA(b) Different
If Different, Specify:
LG ………………………………SAMSUNG ……………………………..WHIRLPOOL ……………………………………………..IFB …………………………….. VIDEOCON …………………………… OTHERS …………………………………………………
(iv) How would you rate your overall relations and satisfaction in dealings with the company?
1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
(v) What’s your annual Turnover? (a) Above 10 crore (b) 5 crore – 10 crore (c) 2 crore – 5 crore (d) Less than 2 crore
Kindly Provide Approximate figures regarding sales (in volume) of the following products:
PRODUCT TV LCD DVD REFRIGERATOR
AC WM MO OTHERS
ANNUAL SALEAVERAGE PRICE
TOTAL REV.GRAND TOTAL CATEGORY =
QUESTIONNAIRE FOR WASHING MACHINES
1) Do you deal in Washing Machines?YES NO
Proceed if you deal in washing machines
2) Which of the following brand (s) of washing machines do you deal in?LG
SAMSUNG
WHIRLPOOL
VIDEOCON
IFB GODREJ OTHERS ONIDA
3) If not ONIDA washing machines, Specify Reasons ………………………………………………………………………………………………………………………………….………………
4) What kind of washing machines sells most in your area?Semi-Automatic Fully Automatic-Top Load Fully-Automatic-Front load
5) What Capacity of Washing Machines do people usually prefer to buy here?5.5 kg 6 kg 6.2 kg 6.5 kg 6.8 kg 7 kg 7 +
6) How would you rank the following washing machine brands in terms of the given criteria?
CRITERIA LG
SAMSUNG WHIRLPOOL VIDEOCON IFB OTHERS ONIDA
ANNUAL SALES
SAFA
OVERALL QUALITY/DURABILITYPRODUCT LOOKPRICE MIX PROFITABILITYPRODUCT PLACEMENTPROMOTION MIXAFTER SALES SERVICE
Proceed if you deal in ONIDA Washing Machines
7) Which models of ONIDA Washing machines do you have? ………………………………………………………………………………………………………………………………………………….………………………………………………………………………………………………………………………………………………….
8) In comparison with other brands, how would you rate the ONIDA Washing Machines in terms of overall product attributes?
1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, if any ……………………………………………………………………………………………………………………………………
9) For customers who buy ONIDA WM, what features make ONIDA Washing Machines saleable?…………………………………………………………………………………………………………………………………………………..
10) For customers who do not buy ONIDA WM, what are the main reasons to prefer other brands over ONIDA Washing Machines?……………………………………………………………………………………………………………………………………………………
11) How would you rate the ONIDA Washing Machines in terms of pricing, as perceived by customers?
1=Lowest Prices 2= Reasonable 3= At Par with Others 4= High Price 5=Unreasonable
Comments, if any ……………………………………………………………………………………………………………………………………
12) As compared to other brands, how would you rate the ONIDA Washing Machines in terms of discounts/display schemes offered?1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, if any ……………………………………………………………………………………………………………………………………13) When compared with other brands, is the product placement done by ONIDA in time and in accordance with customer demand?1= Always 2= Often 3= Less Often 4= Rarely 5=Very Rarely
Comments, if any ……………………………………………………………………………………………………………………………………
14) As compared to other brands, how would you rate the ONIDA Washing Machines in terms of overall profitability?1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, if any ……………………………………………………………………………………………………………………………………..
15) As compared to other brands, how would you rate ONIDA WM in terms of the following elements?Criteria 1=Excellent 2=Good 3= Satisfactory 4=Poor 5=Very Poor
In store Promotions (Glow sign Boards, POPs, etc)Demonstrations/Live activities at storeLive activities in the CityLocal Ads (Radio, Newspaper, etc)Customer Product Awareness
16) How would you rate the performance of the ONIDA’s on shop floor/in house demonstrators for WM?
1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, If Any……………………………………………………………………………………………………………………………………..
17) How would you rate your communication and interactions with the sales executive of ONIDA for selling washing machines? (timely supply of pricing lists, scheme lists, brochures, upward communication of complaints, timely response to problems faced)
1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, If Any …………………………………………………………………………………………………………………………………………………………
18) Kindly provide the following data, with reference to your store:SA FA-FL FA-TL TOTAL
ANNUAL SALES OF WM (FY 2009-2010)Annual Sales of ONIDA WM (2009-2010)Total Number of Machines currently on DisplayNumber of ONIDA Machines on Display
19) What are the main issues being faced by you in dealing with or selling ONIDA WM?…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
20) What would be your suggestions to improve the market share of ONIDA Washing Machines?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
QUESTIONNAIRE FOR MICROWAVE OVENS
1) Do you deal in Microwave Ovens?YES NO
Proceed if you deal in Microwave Ovens
2) If yes, which of the following brand (s) of Microwave Ovens do you deal in?LG SAMSUNG WHIRLPOOL KENSTAR IFB OTHERS ONIDA
3) If not ONIDA microwave ovens, Specify REASON…………………………………………………………………………………….…………………………………………………………………………………………………………………………………………….
4) How would you rank the following microwave oven brands in terms of the given criteria?CRITERIA L
GSAMSUNG WHIRLPOOL KENSTAR IFB OTHERS ONIDA
ANNUAL SALES
OVERALL QUALITYPRODUCT LOOKPRICE MIX PROFITABILITY PRODUCT PLACEMENTPROMOTION MIXAFTER SALES SERVICE
5) What kind of microwave oven sell most in your area?SOLO GRILL CONVECTION
6) What Capacity of Microwave Ovens do people usually prefer to buy here?20L 21 L 25 L 26 L 28 L 28 +
Proceed if you deal in ONIDA Microwave Ovens
7) Which models of ONIDA Microwave Ovens do you have? ………………………………………………………………………………………………………………………………………………..
8) In comparison with other brands, how would you rate the ONIDA Microwave Ovens in terms of overall product attributes?
1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, if any ……………………………………………………………………………………………………………………………………
9) In case of customers who finally buy ONIDA MO, what features make the ONIDA MO saleable?…………………………………………………………………………………………………………………………………………………..
10) For customers who do not buy ONIDA MO, what are the main reasons to prefer other brands over ONIDA Microwave Ovens?
…………………………………………………………………………………………………………………………………………………….
11) How would you rate the ONIDA Microwave Ovens in terms of pricing, as perceived by customers?
1=Lowest Prices 2= Reasonable 3= At Par with Others 4= High Price 5=Unreasonable
Comments, if any ……………………………………………………………………………………………………………………………………
12) As compared to other brands, how would you rate the ONIDA Microwave Ovens in terms of display schemes offered?1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, if any ……………………………………………………………………………………………………………………………………
13) When compared with other brands, is the product placement done by ONIDA in time & in accordance with customer demand?
1= Always 2= Often 3= Less Often 4= Rarely 5=Very Rarely
Comments, if any ……………………………………………………………………………………………………………………………………
14) As compared to other brands, how would you rate the ONIDA Microwave Ovens in terms of overall profitability?1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, if any ……………………………………………………………………………………………………………………………………..
15) As compared to other brands, how would you rate ONIDA MO in terms of the following elements?
Criteria 1=Excellent 2=Good 3= Satisfactory 4=Poor 5=Very PoorIn store Promotions (Glow sign Boards, POPs, etc)Demonstrations/Live activities at storeLive activities in the CityLocal Ads (Radio, Newspaper, etc)Customer Product Awareness
16) How would you rate the performance of the ONIDA’s on shop floor/in house demonstrators for MO?1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, If Any ………………………………………………………………………………………………………………………………………………………..
17) Are you and the customers aware of the cooking classes conducted presently by the company?YES NO
18) How would you rate the effectiveness of these cooking classes in terms of time and venue?1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, If Any …………………………………………………………………………………………………………………………………………………………
19) How would you rate your communication and interactions with the sales executive of ONIDA in selling MO? 1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, If Any ……………………………………………………………………………………………………………………………………….
20) Kindly provide the following data, with reference to your store:Solo Grill Convection TOTAL
ANNUAL SALES OF MO (FY 2009-2010)Annual Sales of ONIDA MO (FY 2009-2010)Total Number of Ovens currently on DisplayNumber of ONIDA Ovens on Display
DISPLAY SPACEVisibility Position of WM/MO in store
21) What are the main issues being faced by you in dealing with or selling ONIDA MO?…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
22) What would be your suggestions to improve the market share of ONIDA Microwave Ovens?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
ONIDIAN DEALERS/ ONIDIAN CUSTOMERS’ SURVEY FOR ANALYSING CUSTOMER SATISFACTION IN AFTER SALES SERVICE OF ONIDA
Rate Overall Customer Satisfaction In After Sales Service of Onida
1=EXCELLENT 2=GOOD 3=MODERATE 4=POOR 5=VERY POOR
Rate the following aspects of after sales service of ONIDA on a scale of 1-5, in terms of your/customers’ satisfaction.(1=Extremely Satisfied; 2=Satisfied; 3=Neutral; 4=Less Satisfied; 5=Unsatisfied)
FACTORS (INDEPENDENT
VARIABLES)
ASPECT OF AFTER-SALES SERVICE 1 2 3 4 5 Comments if any
DELIVERY
Reception of Proper Invoice/Delivery PapersTransfer of Product to your placeReliability in Delivery TimesQuality of Product when delivered at home Quality of the product packaging when delivered
INSTALLATION
Accurate Information about installationTime elapsed between delivery and installationAttentiveness of installation personnel to avoid damageAdvice and demo/instructions given by technician
WARRANTY
ONIDA’s response to complaintsTime taken by ONIDA to respond to complaintsChance of repeat complaint ; satisfaction after complaint resolutionResponse time to attend warranty claimTime taken to rectify failed itemReady Availability of Spare PartDealer Repair Quality outside warranty ClaimTOTAL
Average Customer Satisfaction Level = …………./16 = …………. ON SCALE OF 5
OTHER COMMENTS: ………………………………………………………………………………………………………………
FOR NON-ONIDIAN DEALER/SUB DEALER SURVEY:
Name: …………………………………………………………………………………………………………………………….Area: ………………………………………………………………………………………………………………………………Address: …………………………………………………………………………………………………………………………
DEALER PROFILE
(i) Which Products do you deal in?
TV LCD AC DVD P MOBILES REFRIGERATORS
WM MO
(ii) Choose the category you belong to in your dealings with the companies?
(a) DIRECT DEALER ……………………………………………………………………………………..(b) SUB-DEALER …………………………………………………………………………………………..(c) DISTRIBUTOR ………………………………………………………………………………………..
(iii) What’s your annual Turnover? (a) Above 10 crore (b) 5 crore – 10 crore (c) 2 crore – 5 crore (d) Less than 2 crore
Kindly Provide Approximate figures regarding sales (in volume) of the following products:
PRODUCT TV LCD DVD REFRIGERATOR AC WM MO OTHERSANNUAL SALE
AVERAGE PRICETOTAL REV.
GRAND TOTAL CATEGORY
QUESTIONNAIRE FOR MICROWAVE OVENS
1) Do you deal in Microwave Ovens?
YES NO
Proceed if you deal in Microwave Ovens
2) If yes, which of the following brand (s) of Microwave Ovens do you deal in?LG SAMSUNG WHIRLPOOL KENSTAR IFB OTHERS
3) How would you rank the following microwave oven brands in terms of the given criteria?CRITERIA L
GSAMSUNG WHIRLPOOL KENSTAR IFB OTHERS ONIDA
ANNUAL SALES
OVERALL QUALITY/DURABILITYPRODUCT LOOKPRICE MIX (in terms of MOP)PROFITABILITY (PROFIT MARGINS)PRODUCT PLACEMENTPROMOTION MIXAFTER SALES SERVICE
4) What kind of microwave oven sells most in your area?SOLO GRILL CONVECTION
5) What Capacity of Microwave Ovens do people usually prefer to buy here?20L 21 L 25 L 26 L 28 L 28 +
QUESTIONNAIRE FOR WASHING MACHINES
6) Do you deal in Washing Machines?YES NO
Proceed if you deal in washing machines
7) If yes, which of the following brand (s) of washing machines do you deal in?LG SAMSUNG WHIRLPOOL VIDEOCON IFB OTHERS
8) How would you rank the following washing machine brands in terms of the given criteria?CRITERIA L
GSAMSUNG WHIRLPOOL VIDEOCON IFB OTHERS ONIDA
ANNUAL SALES
SA
FA
OVERALL QUALITY/DURABILITYPRODUCT LOOKPRICE MIX (in terms of MOP)PROFITABILITY (PROFIT MARGINS)PRODUCT PLACEMENTPROMOTION MIXAFTER SALES SERVICE
9) What kind of washing machines sells most in your area?Semi-Automatic Fully Automatic-Top Load Fully-Automatic-Front load
10) What Capacity of Washing Machines do people usually prefer to buy here? 5.5 kg 6 kg 6.2 kg 6.5 kg 6.8 kg 7 kg 7 +
11) Why don’t you deal with ONIDA, Specify REASON…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
12) What would be your suggestions or expectations to start business with the company in any product?.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
13) What would be your suggestions or expectations to start business with the company in WM and MO, in particular?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
CONSUMER SURVEY FOR ANALYZING THE MOST IMPORTANT PARAMETERS FOR SELECTION OF A WM BRAND
S. No ………………….Area/City: ………………………………………………………………………………………………………………………………Address: …………………………………………………………………………………………………………………………
CUSTOMER PROFILE
1) Which of the following categories do you belong to? Please TickSingle, Living Alone Nuclear Family, Small kidsSingle, Living with friends Nuclear Family, grown up childrenCouple (Single Income) Nuclear Family, Retired CoupleCouple (Double Income) Joint FamilyMention the number of family members in your house …………………………………..
2) What is your annual income level?<1 Lakh 1-2 Lakh 2-3.5 Lakh 3.5-5 Lakh 5– 7 Lakh Above 7 Lakh
3) Do you have a Washing Machine?Yes No
4) If yes, which brand of Washing Machine do you use?LG SAMSUNG WHIRLPOOL VIDEOCON IFB GODREJ ONIDA OTHERS
5) What type of WM do you use?Semi-Automatic Fully Automatic – Top Load Fully Automatic – Front Load
6) What is the capacity of your WM?5.5 kg 6 kg 6.2 kg 6.5 kg 6.8 kg 7 kg 7 and above
7) When did you buy your WM?In Last 6 months Last 6 mnths – 1 year 1-2 years back More than 2 years back
8) Who made the final purchase decision?Wife Husband Kids Grandparents
9) What was the reason for buying washing machine? (a) to replace maid (b) Save time (c) Festival season (d) Replacement of Old Machine (e) Marriage/Gift (f) Others …………………………………………………………………………………………………………………………………………………………..
9) What medium inspired you most in choosing the brand you chose?(a) Local Ads in Newspaper(b) National Television Ads(c) Hoardings (d) Hoardings at nearby dealer store(e) References from Neighbors and friends(f) Dealer’s Recommendation(g) Others, Please specify …………………………………
10) Have you heard of ONIDA Washing Machines and are you aware of the newest models in market?Yes No
11) What is your perception about ONIDA products in general and Washing Machines in particular?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
Rate the following criteria in terms of your preference when choosing a WM:
CRITERIA FOR CHOOSING WASHING MACHINE
1=Most Preferred
2=Preferred 3=Neutral 4=Least Preferred
5=Not Preferred
Comments If Any
Wash TechnologyGerm filters/Auto-CleanHigher Durability/Rust Free BodySpace occupied by machineMotor SpeedCapacityFully Automatic featuresIn-Built Heater/Steam WashAuto soakUser friendly PanelAqua StoreAesthetic Finish/Transparent LidColor ChoiceWool Wash etcBrand ImageRecommendation of friends and neighborsAdvertisementsDetailed self-explanatory BrochuresLive Demonstration before Purchase
Free Ad-On Products (set-up, pipe, tub, detergent subscription, etc.)PriceDiscount Offer/Financial SchemesRecommendation of dealersAfter Sales ServiceProximity to Dealer
CONSUMER SURVEY FOR ANALYZING THE MOST IMPORTANT PARAMETERS FOR SELECTION OF A MO BRAND
1) Do you have a MO?YES NO
2) If No, specify reason(a) No need (b) High Price (c) Don’t know how to use (d) other Reason……………………………………………………………….
3) Would you like to buy it, if you are taught about its use for free?YES, Definitely Yes, May be Don’t Know Definitely Not
Proceed if you use MO:
4) Which brand of Microwave Oven do you use?LG SAMSUNG WHIRLPOOL KENSTAR IFB GODREJ ONIDA OTHERS
5) What is the type of MO do you use?SOLO GRILL CONVECTION
Specify Reason……………………………………………………………………………………………………………………………..
6) What is the capacity of your Microwave Oven?20 L 21 L 25L 26L 28L ABOVE 28L
7) When did you buy your MO?In Last 6 months Last 6 mnths – 1 year 1-2 years back More than 2 years back
8) Who made the final purchase decision?Wife Husband Kids Grandparents
9) What was the reason for buying Microwave Oven? (a)To replace maid (b) Save time (c) Festival season (d) Replacement of Old Oven (e) Gift (f) Others …………………………………………………………………………………………………………………………………………………………..
Rate the following criteria in terms of your preference when choosing a Microwave Oven:
CRITERIA FOR CHOOSING MICROWAVE OVEN
1=Most Preferred
2=Preferred 3=Neutral 4=Least Preferred
5=Not Preferred
Comments if any
Multi ethnic Menus/Recipes Provided No. Of Recipes providedChild recipesOverall LookColor Choice (black/White/Silver)Space occupied by OvenCalorimeter/Health FeaturesCapacityDisplay Size and Type
Auto DefrostAnti-Bacteria FiltersSteam CleanBrand ImageCooking ClassesDetailed self-explanatory BrochuresLive Demonstration before PurchaseFree Ad-On Products (Recipe books, subscriptions, bowls, gloves, etc.)Recommendation of friends and neighborsAdvertisementsPriceDiscount Offer/Financial SchemesRecommendation of dealersProximity to DealerAfter Sales Service
10) What medium inspired you most in choosing the brand you chose?(h) Local Ads in Newspaper(i) National Television Ads(j) Hoardings (k) Hoardings at nearby dealer store(l) References from Neighbors and friends(m) Dealer’s advice(n) Others, Please specify …………………………………
11) What all do you prepare in your MO?………………………………………………………………………………………………………….
12) Are you aware of all the functions of a MO?(a) Yes (b) No
13) Would be interested to participate in some sort of cooking classes and competitions if held in your society to increase awareness?…………………………………………………………………………………………………………………….
14) Have you heard of ONIDA Microwave Ovens and are you aware of the newest models in market?(a) YES (b) NO
15) What is your perception about ONIDA Microwaves?…………………………………………………………………………………………………………………………..
FORM TO ASSESS THE PRESENT SYSTEM IN OPERATION FOR PROVIDING AFTER SALES SERVICE IN ONIDA
1) How do you get to know customer complaints from all regions under this branch (Mention Channels of communications or the established system)? …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
2) Do exclusive service centers exist for ONIDA products? If yes, what is the system or network?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
3) Are the numbers and contacts of all the service centers/customer care dept communicated to customers and dealers? If yes, how is it communicated?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………………….
4) What proportion of customers complaint directly to company and how many report directly to the dealers or the service centers?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
5) Do all dealers inform the service department about the complaints made regularly?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
6) If yes, how often do these dealers report the complaints to the company…daily/monthly/weekly?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
7) How do you respond? Send technician to customer or support to dealer, etc? What’s the action taken?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
8) What is the technician force and how are they placed in different places?Pune:Sangli/Satara:Kolhapur:Ahmednagar:Goa:Sholapur:
9) How are these technicians selected? ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………….10) How does the company follow up with customers – whether repair was done, whether satisfied? In short, how do you monitor your
technicians regularly?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
11) Is there a system of taking feedbacks from customers when purchase is made during installation, and when repair is done? If yes, where are all these feedbacks submitted? Is a database maintained?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
12) How do you and how often do you follow up with dealers regarding the complaints being registered at their counters? Is there a person on regular visits to assure no complaints?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………………….
13) Are the regular/satisfied customers followed to judge their satisfaction level with product and exceed their expectations? How do you keep in touch with these customers?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
14) How are the customers or dealers with long, pending unattended complaints dealt with? Is the follow up made by the company or you wait for them to follow you?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
15) How do you deal with non availability of spare parts?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
16) If replacement is done, how often it is being done? How quick is the company in replacement? How many attempts are made in repair before replacing?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
17) Are the complaints that are attended to by the company communicated well to the dealer?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
18) How is the performance of the CC Dept people monitored, whether all complaints being satisfactorily answered to?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
19) How is the complaint database maintained and reviewed?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
20) Do you face any communication gap with the sales executives of the place of complaint?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
21) Is there any communication gap between the dealer and the company Service dept?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
22) What other difficulties do you face?
………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
23) What would be your suggestions?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
SALES EXECUTIVES’ SURVEY TO ASSESS THE CURRENT SCENARIO OF MARKET FOR ONIDA WM and MO
Name of Sales Executive:Area Covered:------------------------------------------------------------------------------------------------------------------------------------------
1) Dealers don’t prefer ONIDA WM Because:(a)Less margin (b) Not preferred by customers/slow-moving (c) Less Dealer Incentives (d) Other Reason………………………………………………………………………………………………………………………………
2) Dealers don’t prefer ONIDA MO because:(a)Less margin (b) Not preferred by customers/slow-moving (c) Less Dealer Incentives (d) Other Reason………………………………………………………………………………………………………………………………
3) Rank all washing machine and microwave brands as per their preference by customers and dealers WM BRAND CUSTOMER
PREFERENCEDEALERS
PREFERENCEMO BRAND CUSTOMER
PREFERENCEDEALERS’
PREFERENCE
LG LGSamsung Samsung
IFB WhirlpoolWhirlpool KenstarVideocon Others
Others ONIDAOnida
4) Select the product attributes that make the WM brand more saleable than otherWM
BRANDATTRIBUTES that Make the Brand Sell
Price Quality
Technology
Look/Variet
y
Fuzzy Logic/Displa
y
No Sound
Other (Specif
y)
Reference Fin. Schemes
Demo/Ad at Store/visibili
ty
AFSS(Ran
k)LG
SamsungIFB
Whirlpool
Videocon
OthersOnida
5) Select the product attributes that make the MO brand more saleable than otherBRAND ATTRIBUTES that Make the Brand Sell
Price
Quality
Technology
Look/Variet
y
Recipes/Demos
Visibility
Cooking
classes
Other (Specif
y)
Reference
Fin. Scheme
s
After sales servic
e (Rank
)LG
SamsungWhirlpoolKenstarOthersOnida
6) Rate various brands on scale of 1-5 in terms of conversion of their marketing efforts (advertising, promotions, and demos at stores) into sales (success in attracting customers)?BRAND Rate on Scale of 1-5 (1=Very Good, 2=Good, 3=Satisfactory, 4=Poor, 5=Very Poor)
1 2 3 4 5 COMMENTSLG
SamsungIFB
Whirlpool
VideoconOthersOnida
8) Rank the type of washing machine in order of preference and brand.Type of WM
Rank in Customer Preference
Rank in terms of dealers’ pref.
(margins)RANK
LG SAMSUNG WHIRLPOOL VIDEOCON OTHERS IFB ONIDAFA-FTLFA-TLSA Reason for Customer Pref. of FTL/TL/SA……………………………………………………………………………………..
9) Rank the type of microwave oven in order of preference and brand.
Type of MO Rank in Customer Preference
Rank in terms of dealers’ pref.
(margins)RANK
LG SAMSUNG WHIRLPOOL KENSTAR OTHERS ONIDASoloGrillConvectionReason for Customer Pref. of S/G/C……………………………………………………………………………………..
10) Which factor makes ONIDA WM less preferred than other brands by end customers?(a) Price (b) Too many models to remember (c) Branding/model awareness (d) Quality (e) Look (f) Finance Schemes (g) Frequent Changes in Models (h) Capacity (i) Less Detailed Brochures (j) Any Other ……………………..
11) Which factor makes ONIDA MO less preferred than other brands by end customers?(a) Price (b) Too many models to remember (c) Branding/model awareness (d) Quality (e) Look (f) Finance Schemes (g) Frequent Changes in Models (h) Capacity (i) Less Detailed Brochures (j) Any Other ……………………..
12) Rate your satisfaction level in terms of your experience of working with the company (support, incentives, bonus, and employee satisfaction) on the scale of 1 to 5? 1) Excellent 2) Good 3) Satisfactory 4) Poor 5) Very Poor
13) Problem faced when dealing with dealers? ……………………………………………………………………………………………………………………………………………………..
14) Any other Problem faced in selling ONIDA products?…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
15) Any Suggestion for ONIDA to improve Market share of WM ……………………………………………and MO……………………………………………………………………………………..
INTERVIEW WITH THE BUSINESS MANAGER TO UNDERSTAND THE SALES AND DISTRIBUTION STRUCTURE OF THE COMPANY
1) What is the distribution structure of the Pune Branch? Kindly fill in the following details.
Area Sales Executive
Distributor (No./Name)
For WM/MO
Direct dealers (No.)
No. Of sub dealers handled by each distributor
Pune City Jitu, Sachin
PCMC Ankur
Kolhapur/Ratnagiri Balwant
Sholapur/Osmanabad Rajput
Sangli/Satara Parag
Goa Sushil
Ahmednagar Dheeraj Patil
2) What are the eligibility criteria for selection of the channel partners?
Channel Partner Sales Potential Relevant Experience Infrastructure Capital Investment
Distributors
Direct Dealers
Sub-Dealers/Others
3) What training programs/awareness programs, awards, and evaluation systems done for various partners?
Channel Partner TRAINING PROGRAMS
EVALUATION SYSTEM/TERMINATION AWARDS/INCENTIVES/CERTIFICATES
Distributors
Direct Dealers
Sub-Dealers/Retailers
4) How is the target setting done for distributors? Who does it, how often, and how much the distributor can negotiate or allowed to vary?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
5) What are the margins provided to various dealers and distributors? Is it uniform or varies?
Channel Partner Margin Comments, If any
Distributors
Direct Dealers
Sub-Dealers/Others
6) How do distributors take care of the sub-dealer sales? Do they have their own sales rep.? If yes, how does the company train them to do so?
………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
7) What is the sales structure of the company?
………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
8) What are the kinds of Channel Conflicts faced in the network?
(a) How is the undercutting done at the distributor level?
……………………………………………………………………………………………………………………………………….
……………………………………………………………………………………………………………………………………….
(b) How is the undercutting or price variations done at the dealer level/retailer level?
………………………………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………………………………
(c) Is there a problem of stock inflow between different categories of dealers and how is it dealt with?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
9) What is the CREDIT POLICY of the branch?
Credit to dealers given for …………days. CD of …………..% not given if not paid within limited period. CD of ……….% given at time of delivery and ……% at time of payment etc. If payment not given during stipulated period… % interest charged. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
10) What is the stock policy of the company?
Distributor supposed to maintain stock of ………….weeks, which equals to ………………Rs. in monetary terms. Dealers supposed to maintain for ……………….. Weeks equaling to Rs . ………………………….
11) What is the return policy of the company?
The company takes return of the damaged or unsold stock after ………………..days/months. Replenishment of stock done with cash/etc……………………..at end of ………………….months
12) Promotion Policy?
Dealer schemes etc notified to dealers around……………………of every month.
13) Provide the following details regarding the ISD?
Area No. of ISDs
Eligibility criteria for
ISDs
Training for ISDs
Eligibility of distributors to
get ISDs
Training of Demon. At Sub dealers/ other
shops
Evaluation method of ISDs
Pune City
PCMC
Kolhapur/Ratnagiri
Sholapur/Osmanabad
Sangli/Satara
Goa
Ahmednagar
14) What are the promotion efforts like for WM and MO?
Question Washing Machine Microwave
Who takes care of in store promotion activities? How is the performance monitored?
Live demos at store and societies?
How many Print Ads in local newspaper? How often?
How many TV ad spots in local/national channels?
Other promotion activities
Display schemes for stores
APPENDIX 2SPSS OUTPUT
Regression Analysis for Identifying the Various Factors affecting Sales of Washing Machines
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .844a .712 .610 5.8557
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 3568.645 15 237.910 6.938 .000a
Residual 1440.144 42 34.289
Total 5008.789 57
a. Predictors: (Constant), Sales Exe Perf, Local Ads, Display space, In store promotion, Price,
Technicians Perf, Customer Pdt Awareness, Product placement, Profitability, Display Schemes,
ISD Performance, Product Attributes, Live activities, Dealer Relations, AFS
b. Dependent Variable: Annual Sales
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.
Collinearity Statistics
B Std. Error Beta Tolerance VIF
1 (Constant) 59.051 9.484 6.226 .000
Product Attributes 1.357 1.839 .102 .738 .465 .359 2.784
Price -2.502 1.878 -.152 -1.333 .190 .528 1.893
Display Schemes -2.062 1.652 -.144 -1.249 .219 .512 1.955
Product placement -1.163 1.079 -.111 -1.078 .287 .644 1.553
Dealer Relations -.545 1.554 -.055 -.351 .727 .282 3.550
Profitability -.036 1.936 -.002 -.018 .985 .586 1.706
Customer Pdt Awareness -3.336 1.663 -.229 -2.006 .051 .524 1.907
In store promotion -1.789 1.163 -.163 -1.539 .131 .613 1.632
Display space -.057 .105 -.076 -.543 .590 .353 2.836
Live activities -.671 2.052 -.045 -.327 .746 .357 2.798
Local Ads 1.191 2.234 .075 .533 .597 .342 2.922
AFS -4.082 1.327 -.509 -3.077 .004 .250 4.006
ISD Performance -1.683 1.267 -.159 -1.328 .191 .477 2.096
Technicians Perf .403 .999 .047 .403 .689 .510 1.962
Sales Exe Perf 1.746 1.390 .172 1.256 .216 .366 2.732
a. Dependent Variable: Annual Sales
Regression Analysis for Identifying the Various Factors affecting Sales of Microwave Ovens
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .887a .786 .745 5.7615E0
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 10024.594 16 626.537 18.875 .000a
Residual 2721.945 82 33.194
Total 12746.538 98
a. Predictors: (Constant), Sales Exe perf, Cooking Classes, Display Price Schemes, AFS, ISD
Performance, Local Ads, Display Space, Pricing, Technician Performance, Product Placement, In store
promotion, Profitability, Live activities, Product Attributres, Customer Product Awareness, Dealer
Relation
b. Dependent Variable: Annual Sales
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.
Collinearity Statistics
B Std. Error Beta Tolerance VIF
1 (Constant) 56.086 7.128 7.868 .000
Product Attributres -1.388 1.383 -.087 -1.004 .318 .347 2.884
Pricing -1.006 1.425 -.053 -.706 .482 .465 2.151
Display Price Schemes .122 1.017 .008 .120 .905 .584 1.712
Product Placement -1.084 .860 -.099 -1.260 .211 .426 2.346
Dealer Relation .056 .864 .006 .065 .948 .294 3.397
Profitability -.964 1.264 -.067 -.763 .448 .337 2.967
Customer Product
Awareness
-3.368 1.119 -.268 -3.009 .003 .328 3.046
In store promotion -2.078 .998 -.173 -2.083 .040 .380 2.634
Display Space .218 .053 .292 4.080 .000 .508 1.970
Live activities -4.075 1.590 -.213 -2.563 .012 .376 2.659
Local Ads .634 1.272 .046 .498 .620 .308 3.242
Cooking Classes -.649 .924 -.043 -.703 .484 .686 1.457
AFS 1.005 .933 .072 1.078 .284 .584 1.712
ISD Performance -1.299 .816 -.109 -1.593 .115 .555 1.803
Technician Performance -.039 .966 -.003 -.040 .968 .420 2.382
Sales Exe perf 1.492 .922 .127 1.618 .109 .426 2.350
a. Dependent Variable: Annual Sales
Regression Analysis for Identifying Various Factors Affecting Customer Satisfaction in After Sales Service
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .968a .936 .919 .25157
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 55.657 16 3.479 54.967 .000a
Residual 3.797 60 .063
Total 59.455 76
a. Predictors: (Constant), Dealer repair quality outside warranty claim, time elapsed btwn delivery and installation, Quality of
product packaging when delivered, Availability of spare parts, Relibility of delivery times, Accurate info about installation,
Attentiveness of technicians to avoid damage, Replacement of defective product, after 2-3 repairs, Reception of Invoice, Advice
and demo/instructions given by technicians, Repeat complaints; Satisfaction after 1st resolution, Quality of product when delivered
at home, Time taken to rectify failed item, Transfer of product , ONIDA's quality of response to complaints, Time taken to respond
to complaints
b. Dependent Variable: Customer Satisfaction in AFS
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.
Collinearity Statistics
B Std. Error Beta Tolerance VIF
1 (Constant) -.105 .284 -.369 .714
Reception of Invoice .081 .097 .054 .829 .411 .250 4.005
Transfer of product .126 .159 .085 .796 .429 .094 10.614
Relibility of delivery times -.049 .138 -.028 -.351 .727 .166 6.030
Quality of product when
delivered at home
.344 .119 .210 2.895 .005 .202 4.940
Quality of product packaging
when delivered
-.421 .127 -.241 -3.324 .002 .202 4.958
Accurate info about
installation
-.064 .091 -.042 -.704 .484 .302 3.316
time elapsed btwn delivery and
installation
.249 .079 .234 3.141 .003 .191 5.235
Attentiveness of technicians to
avoid damage
.093 .077 .083 1.201 .234 .220 4.536
Advice and demo/instructions
given by technicians
.087 .071 .086 1.225 .226 .216 4.633
ONIDA's quality of response
to complaints
.326 .124 .305 2.629 .011 .079 12.607
Time taken to respond to
complaints
.477 .147 .460 3.252 .002 .053 18.785
Repeat complaints;
Satisfaction after 1st resolution
-.007 .093 -.006 -.073 .942 .163 6.126
Time taken to rectify failed
item
-.308 .174 -.283 -1.768 .082 .042 24.020
Availability of spare parts .093 .068 .086 1.358 .180 .265 3.780
Replacement of defective
product, after 2-3 repairs
.075 .069 .077 1.074 .287 .205 4.876
Dealer repair quality outside
warranty claim
-.056 .068 -.038 -.824 .413 .496 2.017
a. Dependent Variable: Customer Satisfaction in AFS
For detailed SPSS Outputs, kindly refer to the Attached CD.