voltas ppt
TRANSCRIPT
INSTITUTIONAL SALES MAPPINGAT VOLTAS LTD.
By Tathagata
Roy IBS
Mumbai
INTRODUCTION
Voltas – A part of TATA Group It was established in 1954 in Mumbai as a JV
between M/s Volkart Brothers and TATA Sons Ltd. 1956 – The company went public and Volkart
brothers sold their stake in the company. 1961- Voltas marketed imported products. 1963 – first factory was established to
manufacture ACs and refrigeration equipment. Later on many plants were set up to
manufacture compressors, condensers, chillers, ancillaries, refrigerators etc.
BUSINESS ORGANIZATION
VOLTAS is into
Over the years Voltas tied up with US based Dunham Bush & Standard refrigeration company.
To secure access to new technologies in air conditioning and refrigeration market.
By 1990 Voltas diversified extensively in industries like food and beverages, forklift trucks, chemicals, pesticides, engineering services, etc.
In 1996-97 the market shrunk by 9% (refrigerators) and it was a severe blow to Voltas.
In 1996-97 company recorded it’s first ever loss of 170 million and also failed to pay dividend.
The price of stock crashed from Rs 225 to Rs 21. So in 1997 MD Munshi was replaced by Nawshir
Khurody. A huge restructuring process was followed which
involved all the businesses of Voltas and it’s finances and human resources.
It was decided that the company would focus on its air conditioning and engineering businesses.
This exercise finally helped Voltas improve it’s profitability.
RESTRUCTURING
One core management team started to analyze the viability of each business.
Incompetent businesses to be sold
Air conditioning and engineering were two profit making businesses.
Idle assets were either leased or were sold.
In 2000 four refrigeration manufacturing units were sold to Electrolux.
Realized around 4.1 billion from sales of its businesses.
Voltas grouped its remaining businesses into 4 segments.
To reduce cost Voltas started to reduce its workforce.
Encouraged new talents and ideas.
REVENUE OF VOLTAS
1996-97-170 million
1998-99-119 million
2000+ 69 million
VOLTAS IN 2000
Started looking for new profit making businesses.
DIVIDEND OF 12%
Aim to increase operating margin
NEW AVENUES FOR GROWTH
THEELECTROMECHANIC
ALBUSINESS
THE UNITARY COOLINGBUSINESS
THE ELECTROMECHANICAL BUSINESS
Very successful working internationally also
Voltas India Limited used to produce these products.
In 2001 VIL merged with Voltas. Opened offices in many other countries. Taking projects in India as well 40% share in Indian CAC market Market leader in CAC market – Blue Star
THE UNITARY COOLING BUSINESS
MARKET LEADERWITH 40% MARKET SHARE
MAJOR PLAYERS – BLUE STAR, CARRIER
MANUFACTURED REFRIGERATOR UNDER COLDCEL NAME
ABOUT THE PROJECT
Institutional Sales Mapping
Had to do a survey regarding the usage of air conditioners of various companies in Mumbai
Visited almost 350 companies for the survey and took a feedback
The data obtained was then grouped and analyzed.
Pie charts were constructed to obtain and deduce the result.
METHODOLOGY
Research methodology is considered the nerve of the project. Very important to come to a final deduction.
Research Design.
Data Collection Methods Primary data 1. Sampling 2. Research Instruments 3. Secondary Data 4. Data Analysis and Interpretation a. Questionnaire b. Pie Charts
LIMITATIONS
Not willing to share information with just anybody and everybody.
Biased information.
Suspicion.
Duration of my project.
Convincing people that it is just a study and nothing else.
ANALYSIS OF PRIMARY DATA
Hospitality --- 20%Hospitals --- 16%
Voltas --- 39%LG --- 25%
39%
25%
13%
4%
1%
11% 4%4%
AWARENESS
Voltas LG SamsungHitachi Blue StarVideoconOGCarrierMitsubishi
0-25 --- 66%26-75 --- 28%
65%
28%
6%
USAGE
0-2526-7576-150Above 150
Others --- 41%LG --- 26%
26%
7%
18%8%
40%
BRAND USAGE
LGSamsungVoltasHitachi Others
0-50 --- 83%51-100 --- 17%
83%
17%
YEARLY PURCHASE
0-5051-100101-200201-300Above 300
LG --- 33%Hitachi --- 23%
5%
33%
2%19%
23%
5%4%
5%4%
PURCHASE CONSIDERATION
Samsung LG VideoconVoltas HitachiBlue StarCarrier OGMitsubishi
LG --- 32%Voltas & Hitachi --- 20% each
4%8%
20%
20%
33%
3%9%3% 3%
EXPERIENCE
Videocon SamsungHitachiVoltas LGBlue StarOGCarrierMitsubishi
LG-Qualis --- 48%LG-Honda City --- 31%
8% 14%
31%
48%
LG
LG-AltoLG-PajeroLG-CityLG-Qualis
Samsung-Pajero --- 50%Samsung-Honda City --- 20%
19%
50%
20%
11%
SAMSUNG
Samsung-AltoSamsung-PajeroSamsung CitySamsung-Qualis
Voltas Alto --- 51%Voltas Pajero --- 24%
51%
24%
11%
14%
VOLTAS
Voltas-AltoVoltas-PajeroVoltas-CityVoltas-Qualis
Hitachi-Honda City --- 39%Hitachi-Qualis ---25%
23%
14%
39%
25%
HITACHI
Hitachi-AltoHitachi-PajeroHitachi-CityHitachi-Qualis
LG-Cheetah --- 41%LG-Monkey --- 36%
17%
6%
41%
36%
LG
LG-LionLG-White ElephantLG-CheetahLG-Monkey
Samsung-Monkey --- 33%Samsung-Cheetah --- 30%
17%
20%
30%
33%
SAMSUNG
Samsung-LionSamsung-White ElephantSamsung-CheetahSamsung-Monkey
Voltas-White Elephant --- 66%Voltas-Lion --- 16%
16%
66%
10% 9%
VOLTAS
Voltas-LionVoltas-White ElephantVoltas-CheetahVoltas-Monkey
Hitachi-Lion --- 51%Hitachi-Cheetah & Monkey --- 20% each
51%
9%
20%
20%
HITACHI
Hitachi-LionHitachi-White ElephantHitachi-CheetahHitachi-Monkey
Purchase From Dealers --- 65%Direct Purchase --- 31%
4%
31%
65%
MODE OF PURCHASE
TenderingDirect PurchasePurchase from the Dealers Others
0-15 --- 83%16-20 --- 8%
83%
8%1% 3% 5%
BRANCHES
0-1516-2021-3535-50Above 50
FINDINGS
AC industry is here to stay.
Improve quality with innovative design.
Cost reduction and high quality service are not the only criteria.
Brand building and promotion of the brand.
Advertising and post sales service is low as compared to it’s potential.
Voltas needs to tackle not only the direct forms of competition but also indirect competition.
LEARNINGS
Corporate exposure.
Enhance our marketing and selling skills.
Meet top level Executives.
Realization of work life culture.
RECOMMENDATIONS
A concerted effort to promote Voltas products through advertising & branding should be launched.
Need highly focused marketing strategies to provide the target segments with compelling customer value propositions.
Trust relationships with customers should be improved.
The company must be ready to incur the high customer acquisition costs required for brand marketing.
Company need to offer low cost service trials to early adopters of AC technologies who maintain opinion leadership within their social communities.
CONCLUSION
There is no substitute for quality.
The company must be aware that the awareness of the product and services is like half the battle won.
They need more quality innovative and competitive price structure products and services.
Allocation of funds to marketing should be increased in order to make more headway into the market among the competitors.
THANK YOU