M R Case study

8/8/2019 M R Case study

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BPL CASE STUDYBy AMAR BHOSALE


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HistoryBritish Physical laboratories is the flagshipcompany of BPL Group.Incorporated as a private limited company in1963.Starting from hermetically sealed panels businessareas now include consumer electronics,telecommunications, consumer durables, softenergy, professional and medical products, power and components covering over 230 products andservices.


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The highlights of the financial year

1999-2000 were as follows:T he market capitalisation of BPL was Rs. 5955 million as on31st March 2000T he turnover for the group stood at Rs. 20146.68 million and

profit after tax was Rs. 1071.28 million-4.5 percentimprovement over the previous year (1998-1999).BPLs return on capital employed was 15.72 per centInvestment of Rs. 24 crore in the area of Oracle Financing.Data Warehousing and Net enabling

T he companys contribution to the exchequer amounted toRs. 410.93 crores in the form of duties and taxes.


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R esearch ObjectivesT o study how the customer perceives theBPL range of C TV

T o identify the factors that influence thebuyers to buy and non-buyers not to buyBPL C TV

T o examine the effectiveness of variouspromotional activities


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L imitationsthis being a convenience sample, the analysis may not bea true picture of the target population.language problem, especially with the household

respondents of Harihar prejudice of some of the respondents.For instance, one of the respondents had a bitter experience with respect to BPL V CR. For this reason, he istotally against the brand name BPL and could not consider

even a single factor in favour of the BPL CTV

.low sample size of the dealers-that is, we could not findmore than 6 who were able to answer our questions in theareas surveyed.


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Anal ysis of sample tabula tions

Customers Questionnaire


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Ar e you a user of BPL CTV?

yes

n o

yes no

Numbers 20 10

% 66.7 33.3


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Wh at Inf luence s your decisio n to

pur chase colour TV?

Aesthetics Price Brand Reliability Performance Advt After Sales

RANK I 5 5 5 2 12 0 1

RANK II 1 8 8 3 6 2 2

RANK III 3 6 5 7 5 1 3

T he respondents ranked performance as the most important attributeinfluencing their purchasing decision. T he next important attributes are price,brand and aethetics.


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0 %1 0 %

2 0 % 3 0 %

4 0 % 5 0 %

6 0 % 7 0 %

8 0 % 9 0 %

1 0 0 %

A esthetics

r ice

Br a d

R elia ilit

Perform a ce

A dve r tiseme t

A f ter Sales

RA NK

RA NK

RA NK


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Wh at inf luence d your decisio n to

pur chase/ not to pur chase BPL CTV?

0

2

4

6

8

10

12

14

A e s t

h e t i c s

P r i c e

B r a n d

e l i

a

i l i t y

P e r f o r m a n c e

A d v e r t i s

e m e n t

A f t

e r a

l e s

USERS NON-USERS

It is found that the non-users have notpurchased BPL C TV .because of dissatisfaction with itsprice and performance.

Surprisingly, price andperformance are also

found to be the factorsthat have influenced thepurchase of BPL C TV .


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Wh ich br and you think is the toughest

compe titor to BPL CTV?

WA12%

AKAI3% PH ILIP

6%

LG15%

VIDEO CON3%

ONIDA34%

S ONY9%

S AM SU NG9%

CAN, T S AY9%

ONI

VI EO ONLGPHILIP

K IIWON

MSU NGN,T SAY


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D o you think BPL CTV is a

succe ssf ul/ unsucce ssf ul br and?

Frequency %

Successful 26 86.7

Unsuccessful 4 13.3


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Wh y do you think BPL has been

succe ssf ul/ unsucce ssf ul br and?

Successful %

Range of Products 38.5

Range of Prices 23.1

Promotional Activity 38.4

Unsuccessful %

Range of Products 25

Range of Prices 50

Promotional Activity 25


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Based on the price r ange what

impr essio n do you carry of BPL CTV?

Economica73 %

Costly27%


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G ive the size of the BPL CTV you

own?

"55%

5"5%

9"5%

"5%

"%


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Wh ich of the following add itional attri bute do

you per ceive as most important in your CTV?

pictur e in pctur e

18%

net savvy

technology57%

loc ing syst em25%


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Wh at do you think of advertisemen t of

BPL CTV?unsatisf a tory

4% Impr essiv e%

S atisf a tory6 %


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Y ou like/ dislike advt. becau se of

Like Dislike

Model/ Celebrity 35.7 0

Presentation 21.4 100

Slogan 39.3 0


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D o the various scheme s/ promotio nal

activiti es aff ect your pur chase plan s?

yes3%

no

37 %


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If you go for r epu r chase of TV , will

you r ef er BPL CTV?

no3%

yes

37 %


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D o you agr ee/ disagr ee with the punc h

line of BPL Believe in the Best

Agr ee4%

D isagr ee6%


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D eale rs Questio nna ir e


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Wh at Inf luence s your customers

decisio n to pur chase colour TV?

Aesthetics Price Brand Reliability Performance After Sales

RANK I -- 2 2 -- 2 --

RANK II -- 4 2 -- -- --

RANK III 1 -- 1 -- 3 1

According to dealers the top three attributes that influence their customerspurchase decision are: performance, brand name and price.


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Wh ich do you think is the toughest

compe titor to BPL?amsung

7%

Onida

66 %

LG1 7%


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Wh er e do you r ank the following

CTV s in ter ms of BPL Onida LG Samsung Sansui Philips

Brand Name 2 1 1 2

Aesthetics 3 2 1

Range of Products 4 1 1

Range of Prices 2 1 1 2

Performance 2 2 1 1

DPA 4 1 1CPA 1 2 1 2

After sales service 1 3 2


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D o you think BPL CTV is a

succe ssf ul/ unsucce ssf ul Br and?

succe ssf ul3%

un succe ssf ul1 7%


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R eason for succe ss?

R an e of prod uct s

80 %

R an e of pr ces

0%


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Cross Tabula tion Findings1) Out of the ten non-users questioned, nine of

them perceive the brand to be successful but stillthey have not gone for it. T hough majority of thepeople find the brand to be successful they haveactually not bought it, because of the followingreasons:

At the time of their purchase either the other brands hadcome out with better promotional schemes, or While in the showroom they made on the spot changesbecause they found the range of products offered by itscompetitors more appealing


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2)Based on demographics, lower income groups gave morepreference to performance whereas higher income group preferredbrand name.

3)Out of 20 , 6 users dont want to repurchase BPL C TV because:T he lower income group finds the range of prices and promotionalschemes offered by other brands more attractive vis-avis BPL.T he HIG feels that the quality of BPL is not up to the expected level of standards. T he trust associated with the brand name is falling.Surprisingly, half of the non-users are willing to go for BPL as their repurchase choice. T his shows privilege enjoyed by BPL as the marketleader in the C TV segment and also the minds of the people.

4) 60% users are affected by the schemes and 40% are not.


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R ecommen dations


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B rand Image should be maintained

BPL enjoys a good brand image, especially due to its reputation of conforming to quality in the consumer electronic goods market.T his story dates back to the time when there were not many brandsin the market and BPL was the only brand, which got hugelypopular especially due to its quality levels. But lately it has beennoticed that

T heir quality is going downNo prompt after sales serviceLess incentive schemes to dealers compared to competitors

So out recommendation to BPL is that if they want to retain their market share it becomes vital for them to maintain the brand imageand the trust which they have built over the years.


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Better Advertisements Another finding of our survey was that peoplewere in a very ambiguous state when asked as towhat they thought of the advertisements. Even onbeing told what they were, the respondents werenot able to recall them exactly. T he only ad whichcould create a considerable impression was theone featuring Amitabh Bachchan. T hus it isnecessary to come out with more attractive ads.

Also, the number and the frequency of the adshas to be increased on the television channels.


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Q uality ChecksIn the past, BPL could boast of its bestquality. But today we find that both the

customers and dealers have too manycomplaints with the quality of the product.T hus we think BPL should go for morestringent quality checks.


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Attractive Schemes for Customers

and Dealers in this R egionParticularly in the areas of Harihar andDavangere, we found that the customer

promotional and the dealer incentiveschemes offered by the BPL C TV arealmost nil, compared to its competitors.T hus, the company should give dueweightage to this aspect to survive as theundisputed leader in the market.


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Thank you!

M R Case study

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