“A study on Major Competitors of FMCD Sector using Bowmen Strategic Clock at Lucknow city”
Bajaj Electricals Ltd
Surendra Pratap Singh
Submitted in partial fulfillment of the requirements of PGDM
Jaipuria Institute of Management
I do hereby declare that this project entitled, “”A study on Major Competitors of FMCD Sector using Bowmen Strategic Clock at Lucknow city” with Bajaj Electricals at Lucknow has been completed by me and it is an original work. This report is being submitted for fulfilling the requirement of Post Graduate Diploma in Management as a Summer Training Project, at Jaipuria Institute of Management, Jaipur.
It has never been submitted nor been published elsewhere.
Surendra Pratap Singh
Certificate of Originality
To Whomsoever It May Concern
This is to certify that the Summer Internship Project Report titled “A study on Major Competitors of FMCD Sector using Bowmen Strategic Clock at Lucknow city” submitted by Mr Surendra Pratap Singh, represents an original work done by the student mentioned herein and has been submitted in partial fulfilment of the requirements of the PGDM Programme (2017-19 Batch).
Dr. Prashant Sharma
Signature of Faculty Guide
Table of Content
S. No. Topic Page No.
1 Declaration (i)
2 Certificate from Organization (ii)
3 Certificate from faculty guide (iii)
4 Acknowledgement (iv)
5 Executive Summary 1
6 Introduction 7 Organization Overview 8 Industry Analysis 9 Research Analysis 10 Conclusion 11 SIP Experience and Key Learning 12 References 13 Annexures EXECUTIVE SUMMARY
FMCD industry is fast moving consumer durable goods whose life more than one and more year. We conducted study on major competitors of FMCD sector using Bowmen strategy clock at Lucknow city. In electricals product whose market share is strong in the market and customer prefers more to purchase that company product related to trust, service and company policy product easily available in the market product quality is the big issue in the FMCG market related to warranty of the product.
Problems: – We check the position of Bajaj Electricals in FMCD market and research on the other competitors in the market where the company service policy and warranty policy of product brand name also give great impact on company product the perception change the retailer mind what he thinks about the product of the company.
Objectives: – Bajaj Electricals follow different parameters to became good position in the FMCD industry because they always analysis the market economy and the income of the consumer then they make the product and also they choose many attributes in his product to take position in the market the main motive of Bajaj Electricals how the consumer easily buy my product so the company have one tag line Inspiring trust means be faith our product what we are making to sell in the market.
Finding: – In this research we visited 150 retail outlets and check the satisfaction level of the retailer related to Bajaj Electricals product. We have done Kitchen appliances, Consumer product and Domestic appliances. We take 150 sample sizes in this research and check the satisfaction level by different function, shape, size and other parameters and the retailer easily sell the Bajaj product in the market without introduce the company brand and company introduction to the customer in market Bajaj works 75 plus year in FMCD sector in electricals market.
Key Words: – Customer, Retailer and Competitions.
SIP means Summer Internship Project which is done by students under guide line of collage as every management student know about the organisation, but they don’t know about the organisation culture and environment where the employees do their work. SIP is a short-term training given to the students with the help of collage and industry in which they exposer about the market and the organisation when they do 45 to 60 days working experience under the guideline of industry mentor. Industry or Organisation mentor give all the positive and negative aspects about the industry. Every organisation main motive is to increase the profit year by year and improve the channels of distribution and became major competitors in the current market and make stainable position. In SIP student visit market and asked question to the retailer outlets and the customers what they are thinking about the organisation/company and its products and what type of range does customer purchase by them in this market. But the problem arises in the market where the customer focus on service issue how we improve company service issue and because if we solve any problem where the company faces more its means company in future the predication of company share rises. The company offers many rewards and pre-placement offers at the time of SIP.
ORGANIZATION OVERVIEW –
Bajaj Electricals: –
Bajaj Electricals Company leading 77 years in the market. Bajaj Company only focus on distributer channel in Lucknow Company make only four distributer Bajaj Electricals works only two appliances: – Kitchen Appliances ; Domestic Appliance every distributer has five members DSO Distributer Sales Officers who visit market meet to retailer and take the order of products.
Company Works on Five Promises.
One Price: – Company makes only one price in hole India market no bargain should be present in their product Retailer purchase same price in hole country market.
Weekly Visit: – Distributer Sales Officer weekly visit every Retailer shop to take order of the product in the market and solve the query related product whose retailer faces problem.
24-36 Hr. Delivery: – Company aim every delivery of order product to the distributer in 24 to 36 hours to build the distribution channel because distributer get easily deliver to the retailer in the market.
Home Services Except Lighting Product: – Company gives home service to the customer only except lighting products because if any problem arises in guarantee and warranty period then company give home service to the customer of the product.
3 Months Replacing products: – In new retailer shop DSO give the Bajaj product to make new relation to the retailer to sell Bajaj product and give promise if the product not sell in three months then we replace and give new product.
Company RREP (Range, Reach, Expansion, Program)
Range: – Bajaj Company main motive every variety Bajaj product sell by the retailer in the market.
Reach: – Bajaj Company wants every retailer to reach every product in the market to help customer easily buy the product.
Expansion: – Bajaj company want to expansion the market of Bajaj product regarding to make more retailer in the market.
Role of DSO (Distributer Sales Officer)
Order through catalogues: – DSO visit market every weekly in every area retail shop through order catalogues to take the order what the requirement or demand of the retailer products in retail shop.
Payment: – DSO also works on payment of the product what the retailer purchase and give 30 days’ outstanding payment on credit basis.
Display: – DSO visit retail shop and display the Bajaj product that customer easily look and know the product.
Replacement of Bulb: – DSO when visit retailer shop if any defect bulb come in retailer shop by the customer then bulb replace by the DSO.
Hierarchy of Bajaj Electricals Company
Figure SEQ Figure * ARABIC 1
DBMS Inventory: –
Black Inventory Red Inventory Yellow Inventory Green Inventory White Inventory
Black Inventory: – Black inventory show about the stock of product end the demand of the product is more in the market.
Red Inventory: – Red inventory show about the stock of product coming in end the demand is also good.
Yellow Inventory: – Yellow inventory show about the stock of product full in the market but not in full requirement basis.
Green Inventory: – Green inventory shows about the stock of product full in the market regarding demand and the supply product in the market.
White Inventory: – White inventory shows about the stock of product full but the selling is not happening so company want to push the white inventory product sell in the market.
About Lucknow Distributer
Bajaj Electricals has four distributers in Lucknow.
Friends Electricals Group: – F group distributer has five DSO and distribute home appliances in Retailer shop in Lucknow.
G. Kumar Electro Pvt ltd Group: – G group distributer has five DSO and distribute domestic appliances in Retailer shop area in Lucknow.
T.P. Singh Group: – T group distributer has 3DSO and distribute domestic appliances in Retailer shop area in Lucknow.
B. P Sons Group: – B group distributer has five DSO and distribute domestic appliances in Retailer shop area in Lucknow.
In this interview taken by CNBC of Mr. Shekhar Bajaj, CMD of Bajaj electricals at 15 March 2018, he spoke about the latest happenings in his company and sector. The reason behind this interview is to know the cause of hike in the share of Bajaj Electricals as it was on the peak in last 52 weeks.
They talked about the pain which company is suffering from last 2 years as they are working on their new distribution channel RREP (Range reach Expansion program). Shekhar Bajaj spoke that it’s a very typical channel and hard to copy because a company should be ready to bear the loss in the market as they have also gone through this tough time.
CNBC Aawaz News Bajaj Electricals.
The news says about rise in share price of Bajaj Electrical Limited in month of January the money of investor become double in the share market.
Company CMD. Mr. Shekhar Bajaj said that due to control of current distribution that the main advantage in now time January 27% growth rate of ENP and consumer product growth 27% and we assume that in coming months February and March also better.
Mr. Shekhar said that one lakhs sixty thousand outlets we visit on weekly basis in distribution model and in servicing we cover 450 districts that the main advantage for Bajaj company.
Mr. Bajaj said that about 90% implementation of distribution channel is completed. The major step that company took was we stop supply of product to the whole seller. The 60% turn over used to come from whole seller and that is the main reason sells came down. Now Bajaj is handling full distribution system and it is said that in incoming months we will gain our market share that company lose within in last year.
The implementation of this distribution channel we copy is very difficult to copy, no company could copy it because they suffer ten to fifteen percent loss of market shares they not stop supply to the whole seller many other competitors in the market they look this distribution model and look about bear of 10 to 15% loss and proper management of backend supply chain.
Implementation of new model of distribution we go because of two main reason they buy only price game margin when they buy 100 to 500 pieces extra discount they break the distribution because company sells the products 100 rupees but the whole seller sells the product 98 rupees that the big problem for the company, so we avoid the whole seller.
News CNBC reporter said that I predict that summer season is too hot what you think about your business cooler and fans outlook many of them want to know about product why you not came in air conditioner market because many big players in the market also available so we not break it more easily like: – Samsung, LG, Voltas etc. then we do this implementation of energy in own existing business we achieve our goal because in own product many scope.
Another business of Bajaj Electricals is ENC contract legacy project problem bag ang barges what is the facing problem you improve and what place tell me execution have done and order book position and about pipe line we have facing problem in year 2014 last quarter have done but last three year there is no problem as per UPC concern and order book position in January 3000 crore and till March it became 3500 crore and many other order are coming in pipeline.
Reporter said that as you say that January is strong for business and said that I hope February and March is also better performance of Bajaj Electricals management guide that in current half H2 the growth of company 10% on track but Mr. Shekhar said more than 10% many analyst says that coming two year the income of earning Bajaj Electricals is double are you sure in the market your share is bullies but we say that bottom line and two year a long period there is more competition in the market and new players are coming so it is a guess work but no meaning but the market situation the share of Bajaj Electricals is bullies and rises more than 10% H2 in coming months the condition of Bajaj Electricals get improve distribution models in place and in future market share improve and all are the positive aspects now the stock of Bajaj electricals get rises in 52 weeks.
Product offered in lights
Figure SEQ Figure * ARABIC 3
Indian consumer product segment is high segregated into Urban and Rural markets and is also attracting marketers in the global world. The sector comprises of bulk middle class economy, relatively large wealthy class economy and a small economically people class, with spending predictable to more than double by 2025 because the income of the country people gradually increasing.
India hit 10 years high and taken first among 63 nations survey in the global consumer confidence index (CCI) with a score of 136 points at that time demonetarization also happen in Indian economy that also more destroy the growth of the market for the quarter ending December 2016.
Global corporations said India as one of the big markets from where future growth is likely to appears. The growth in India’s consumer market would be firstly driven by a positive population array and increasing household incomes because in Indian economy lack of development of secondary sector so that Indian market large number of consumer available in this country so that all the global companies want to do business in this market. India’s healthy economic growth and rising household incomes because Indian government want to develop secondary sector to increase production when any country have own production unit then also create job opportunities in the market are expected to increase consumer spending more to US$ 4 trillion by 2025#. The maximum consumer spending in Indian economy food, Housing, Medical, Consumer durables, Education, and transport and communication sectors Indian market territory sector is highly growth about 38% in current time because consumer durable protect time and safety major issue.
Fan Volume Is 40.3 Million Units, All India, In One Year. 6400cr All India, Organized Sector.
65% Ceiling Fan, 35% Tpw And Other.
In Up, We Contribute 6% In Fan Business, 7% Volume Contribution In Up. 73% Ceiling Fa Is Sold in Up.
BAJAJ- (DEC FEB JAN)
PREMIUM- 302, ECONOMY- 1166 SUB ECO- 4927
REACH INCREASED AS last yr we were on 32% counters this year we are on 43% counters.
TPW is placed on 1637 counters. Bajaj is placed only on 4% counters, wall only on 5% counters,
In premium we have 18 models,
S.NO BAJAJ COMPETITION
round blade, ornamental, designer fan, High speed, Good air delivery, Watt at par, 1200 mm CROMPTON- FLAVIA,
USHA- STRIKER, MILLENIUM
2 REGAL GOLD-
Low power consumption, 65 W, all sweep available from 600mm to 1400 mm, metallic finish, Full aluminum body CROMPTOPN- CALIBER (70 WATT), HAVELS- FUSION (74WATT)
3 REGAL GOLD 4 BLADE-
65-Watt low power consumption, 330 RPM, Metallic finish and aluminum body CROMPTON- DECARE 4 BLADE, 85W, 280 RPM,
No competition, low air cutting noise, high air delivery, 68-watt, 320 RPM NO competition available
Marble finish in white color model, pebbles design, Wood finish also looks natural, WATT- 65, low air cutting noise, high air delivery, CROMPTON- AGGNUS, 77 watt,
USHA- EX3, 75 watt,
available in all sweep- 600 mm to 1400 mm, high speed, long life, simple steady fan, Brown color is most selling, 66-watt, RPM 380 CROMPTON- RIVEREA 72 WATT,
USHA- STRIKER 75-WATT,
ORIENT- SUMMER BREEZ 75-watt, RPM 370
2 SPEEDSTER X-
Metallic finish, 66-watt, 380 RPM, high air delivery 240 cmm, CROMPTON- JURA, plane body, 74 watt, 230 cmm air delivery,
Not available in orient and Usha,
3 PRIDE NEO-
1200, 1400 available, 380 RPM High air delivery, ORIENT- ADRIAN, RPM- 320,
1 NEW BAHAR-
High speed 380 2 EDGE-
56-WATT, 340 RPM, CROMPTON- NEO BREEZ, 380 rpm 75 WATT,
USHA- SWIFT 74-WATT, 350 rpm
1 MIDEA 07 –
Saan blade, acrylic blades, Air delivery 75cmm, 55-watt, 1300 RPM, 2 NEO SPECTRUM- CROMPTON- FIZZ AIR,
3 VICTOR VP R-01/ ELITE NEO/ ESTEEM CROMPTON- AVIA,
USHA- MAX AIR COMFY,
1 LEATIM MAX 2 REGAL GOLD NXG 3 ARK Market Size: –
The consumer purchasing power increasing due to rising of social media plat forms have empowered Indian market consumers to display on good things.
By coming year 2020, the consumer durable market in India is predicting to increase to US$100 billion from US$28billion in FY17. The manufacturing is assumed to reach to US$104 billion at the time 2020. But in 2018 the growth of consumer durable products industry in Indian market grow to US$11.78billion from US$9.23billion in 2016 when demonetization happen in the Indian economy and registering a growth of 12.97 percent.
In the global market India is the largest consumption of goods and services in FMCD sector Indian market year by year increasing so that many of the foreign companies want to do business in the Indian market because large number of consumer available in the market.
4.2 SWOT Analysis:
One price in whole market
Product easily available in the market
Innovation of new products
Customer trust on products
Distribution channels issue
Profit margin of retailers
Warranty issue of products
Replacement issue of products
Expansion of Bajaj Electricals products in the market
Reward point to the retailer (RBP program)
Huge number of competition
Warranty of products
4.3. SWOT Analysis of Electricals Industry: –
Price of product
Bulk number of consumer
Product easily available to the consumer in the market
Warranty of product
Replacement of product
Cutting down the profit margin of products
Electricals market customer day by day increasing
New Technology (power saving technology)
Solar energy product available in the market
4.4. PESTEL Analysis of Bajaj Electricals Ltd.
POLITICAL FACTOR: –
Government give the electricity connection to help the poor people of India and his aim to provide every village supply of electricity at time in year 2019.Many changes should
be done by government in Tax rate and other aspects.
ECONOMIC FACTOR: –
In India there is bulk number of customer in the market in electric product they were consume more and more because day by day our country infrastructure should be change the disposal income of house hold should be increase day by day.
SOCIAL FACTOR: –
In India market electric segment provide positive aspect it makes the life of people comfortable and safe and clean the environment. Bajaj Electricals Ltd. Give CSR to help the poor society children welfare and work on NGO partner in pan India but in Govardhan Eco- village for a project on long period sustainable organic farming model.
TECHNOLOGICAL FACTOR: –
In technology factor in electrical products it helps the safety of product and safe life of the customer. In electricals product due to upgrading technology save the energy which consume less electricity and protect the environment provide good durability of product. ENVIRONMENTAL FACTOR: –
In electric product make the environment better and pollution free because many of alternative available in the market solar energy and wind energy are the natural resource of energy. Our government also promote solar energy and wind energy to make our environment free and no more use of thermal energy.
LEGAL FACTOR: –
Union cabinet pass some bill on fmcd product and give subsidy to the company to the customer to provide less cost of electric product due to government aim make in India the poor people easily buy fmcd product like: LED bulb government give less tax in this product. Government also make no more price of product in economy range and government allow foreign direct investment in our country to make market easy and the customer easily buy their product at chief rate.
Bowman’s strategic clock-
5.2 About Bowman’s Strategic Clocks: –
Bowman’s Strategy Clocks model used to analysis the competitive position of a company in the market to comparison to the offerings of competitors or players. Bowman’s Strategic was developed by Cliff Bowman and David Faulkner as an expansion of Porter generic strategic. As like Porter Generic Strategic, Bowmen reflect competitive benefits in relative to cost advantages and differentiation benefits. Bowman’s Strategy Clocks signify eight possible strategies in four quadrants describe by the axes of price and perceived value.
5.3 Research Problem: –
What is the actual position of Bajaj Electricals limited in FMCD industry?
How are competitor different from Bajaj Electricals limited?
Is retailer satisfied with Bajaj as compare to other competitors?
What are the service policy of competitor in the market?
To analysis the actual position of Bajaj Electricals in FMCD industry as compared to competitors.
To know the parameters in which Bajaj is different from other competitor in the market.
To analysis the satisfactory level of retailer of Bajaj Electricals as compared to competitors.
To analysis the service policies of FMCD companies.
Bajaj Electricals limited is among the top 3 companies in FMCD sector.
Bajaj Electricals Limited is different from other competitors in the market.
Retailer are highly satisfied with Bajaj as compared to other competitors in the market.
Service of Bajaj Electricals limited is comparatively better than FMCD.
How many brands of Electrical Fans & Lights products you sell in our shop?
INTERPRETATION – We visited different area in Lucknow city and survey retail outlet fill questioners and asked what brand of electrical fan & light you sell in our outlet mostly retailer said that we mostly sell Bajaj, USHA, Crompton and Anchor Fan because the lending price of these fan is not so high and customer easily purchase due to its brand image and service policy in lighting led bulb in current market more demand but most of the company replacement issue big problem for retailer in led bulb Philips , Bajaj, Havells, Polycab give proper warranty in led bulb and other lighting product. Syska is the best in the lighting segment in the market but the product price is too high, but retailer said that only high-income customer purchase Havells fan and Syska light the demand of customer be purchase only few quantity and sell in our shop related to our area. Havells is the best competitors in Wire, MCB and Switches segment in the market.
What are the facilities of the brand you want to more sell in the market?
INTERPRETATION – We visited market ask question to the retailer what brand you want to more sell to the customer related to its facility and what facility you accepts from company, mostly about 99% retailer said that first the service policy of the company Like:- Bajaj, Philips, Anchor, Havells, Orient, Syska, Crompton and other company in appliances service it is more required mostly in every area electrician is not proper available due to the product shape and size and feature always changes by the company and parts of product always in new design so many of time product part not available in the market and second profit margin due these two facility we establish goodwill of our shop in the market and customer get fully satisfied when customer get fully satisfied then we increase our sales and it is the best medium of advertisement. Extra discount is the major profit for any retailer, but it gives some target of purchase of product of the company. Rewards points is not more profitable for retailer due to that company give like a butter and bread to the retailer to sell more product of company then they give gifts and foreign tour but not give the money.
INTERPRETATION – We asked to the retailer to sell their product only profit margin but about 54% retailer in Lucknow market said that we open shop only for profit but 45.3% retailer said that we sell their product related to my criteria because we face customer company not directly face customer my issue is that when we sell our product customer well satisfied when he consume my shop product so i didn’t want to sell only profit margin basis but only .6% retailer who want service, profit margin and rewards points to sell the product.
INTERPRETATION – We asked to the retailer what the company are providing good service in the market retailer said many company providing good but Bajaj, USHA, Crompton, Havells, Anchor, Philips and Orient but in research survey report Bajaj have 92% correct service policy,78.7% Crompton; Anchor have corrected service policy, 72.7% Havells have correct service providing in the market. Then above 50% Orient in Fan ; led and Philips providing good service in the market led and Appliances. Polycab is the new brand in Lucknow market so the few retailers sell Poly cab fan ; lighting but in wire segment Poly cab create own image and takes third position in the market.
Which company have less defect in its products?
INTERPRETATION – We asked to the retailer which company less defect in its product in my survey report Bajaj have is best in the market related to less defect in his products related to product life period, product quality and packaging. Bajaj achieve 98.7% product less defective, second position got by USHA this company have less defect in his product, it is the good competitors in the market in Fans and Appliances. In rural and urban area everywhere, USHA customer available in the market. Orient and Crompton got third position 78% less defective product in the market. Philips in Appliances and lighting and Polar in Fans got above the 50% in this report survey the best thing of Polar its also choose good idea to give 25 months warranty, but other company give only 24 months warranty its means company give their perception to the retailer and customer my product best in the market but in rural area polar company fan many of the customer didn’t know about the product.
INTERPRETATION – We visited market and asked to the retailer about the delivery of product in our outlet because delivery is the big issue in the FMCD sector due to this issue retailer shift to another company. In this respect to sell the other company product because retailer is the influence guys who influence to the customer shift to another brand due to retailer is the main person who play important role in prospective of company product sell and create demand of the product where the customer buys again and again. In the survey right time delivery could be done by USHA, Bajaj, Crompton, Havells, Orient and Anchor these are the major player in the market they deliver product right time at every outlet but only 20% defect is created in delivery of product some time Labour issue, Traffic issue, Not proper clear about the outlet location and mismatch of name issue. Some other company also present in the market but product not deliver proper time in city area they deliver right time but 30 KM far from city area product not deliver proper time so the retailer mind generate wrong information related to the product some time customer influences by the other customer “Many time in business customer satisfaction is the best advertisement of the business” by this new customer easily influences
INTERPRETATION: – We visited different outlet at Lucknow city and asked question related our research topic about the replacement policy of major player company in the market, to know the replacement policy of different companies what the retailer wants easily replacement of product to product or product to cash in my research topic how to be developed our new policy in comparison of other player in the market major companies like: – Orient, Crompton, Havells and Anchor. In Lucknow market product to product replacement policy is better due to the retailer is highly satisfied but product to cash retailer not satisfied the region is behind that many of the retailer said that we paid GST, so we face more problem when the distributer replaced our product in cash form. In replacement case customer get easily replace product when any defect in led bulb then hand to hand replacement of product
SIP EXPERIENCE AND KEY LEARNINGS-
First day visited 28 retailer counters beat on Monday Mr. Puneet DSO of friend’s electricals and we start beat at 11:30am. We visit Arjun Ganj market electricals ; electronic shop.
We reach every outlet counter and tell about the company offer to the retailer and give proper knowledge about the product show the catalogues and ask question about the service issue what the retailer faces when the customer want to buy the Bajaj product because if the retailer is not in proper way satisfied its means customer not satisfied then how we aspects that customer get easily purchase Bajaj product so the company and distributer give best offer and service to the retailer when retailer became happy and satisfied then retailer motivated and sell Bajaj product.
Company also provide home service it is the best alternative to sell the Bajaj product because customer take easily service in his home. We also solve Janta PCO problem the thing is that two months earlier one kettle issue he payment half liter kettle but the product not deliver to the Janta PCO every time he said to the DSO about the payment but every DSO didn’t take proper action when we reached then he say about the kettle issue then we say that we will solve this matter in next Monday the issue is solve today but your product delivery half liter kettle we will delivery on Monday.
We also used to work on DSO shows the catalogues and introduce the product and take the order I suggest to the DSO to visit crockery store to sell our Kitchen appliances and other product.
I ask every retailer regarding RBP app to earn point and give all details about weekly billing and if you give working on cash payment with in week then you get 2% cash discount on your bill.
Name of the outlet
How many brands of electrical fan& light product you sell in our shop?
What are the main brand you want to more sell in the market?
What are the facility of brand that you want to sell more in the market.
Do you want to sell only profit percentage basics?
What are the companies provide good service in the market?
Which company have less defects in his product?
How many type of product you sell in our area and what brand?
Which company give right time delivery?
Which company provide good replacement policy.
Which brand you prefer first to the customer and why?
What are the other major player in FMCD sector.