Chapter Three Market Potential, Market Demand, and Market Share.
Market Potential of Home Automation
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Transcript of Market Potential of Home Automation
1
SUMMER PROJECT REPORT
“Study of Market Potential of Home Automation, Security Systems
and Digital Standalone in Navi Mumbai”
AT
Prepared for the Mumbai University in the partial fulfillment of the
requirement for the award of the degree in
MASTERS OF MANAGEMENT STUDIES
Submitted By:
Dinna D’souza
Roll No.:74 Year:2013-2015
Under the guidance of
PROF. SIMMI PRASAD
SFIMAR
St Francis Institute of Management and Research, Mt.Poinsur, S.V.P Road,
Borivali (W) Mumbai
Batch 2013-2015
2
DECLARATION
This is to certify that project report “Study of Market Potential of Home Automation,
Security Systems and Digital Standalone in Navi Mumbai” has been successfully completed
by Ms. Dinna D’Souza in partial fulfillment of the requirement for the award of the degree in
Master in Management Studies at St.Francis Institute of Management and Research under
Mumbai University.
The information submitted is true, original and to the best of my knowledge.
Prof Simmi Prasad Dinna Dsouza
Project Guide MMS – II
Marketing
3
ACKNOWLEDGEMENT
This project, though an individual project, wouldn’t have been possible without the constant help
and guidance of a few individuals whose support has been vital to the completion of the project.
I would like thank my project guide Ms Bhavana & Mr. Saiprasad (Marketing Manager) who
gave me the opportunity to work under their guidance in spite of their busy schedule, and for
helping me with the various queries and the required information required for the completion of
the project.
I would like to thank my college guide Prof. SIMMI PRASAD (Faculty – Marketing) for her
guidance during the project.
.
Dinna Dsouza
SFIMAR
4
Executive Summary
Summer internship project entitled “Study of Market Potential of Home Automation, Security
Systems and Digital Standalone in Navi Mumbai” was undertaken at NCC Telecom Pvt. Ltd.
NCC Telecom is a private organisation working in the field of building Automation as its focus
area. NCC was incorporated in 2002 and was existing as a partnership since 1989 with a motto of
“Design and Develop Indigenous Technology to improve Life Style, Communication and
Security to the utmost level”.
This study is conducted in following four parts a) Training - training was given to all the interns
about the product. We were told about the feature of the products that NCC offers. Training was
conducted by Mr. Pinnakin. We were free to ask any queries about the product then we were told
how we have to approach to the Architects, Builders and Constructors for the promotion of the
product and we were given a target of generating leads. b) Industry Analysis - The Market of
Home Automation was valued USD 3.6 billion in 2012 and is expected to reach USD 16.4
billion by 2019. This industry is growing at a CAGR of 24.6% from 2013 to 2019. It is being
analyzed that current market size of electronic security system is Rs.10 billion. It is expected to
grow by about 26% and become a market of Rs.22 billion by 2015. C) Market Analysis for NCC
Telecom Pvt. Ltd. in India - Industry Analysis is followed by Market research, major Market
areas and Market assessment. Various competitors, direct and indirect are focused in the
research. Potential Market of product is observed in India then market was accessed in terms of
which product has growth in near future. Market Diversion is studied as per Sector and
Technology and finally competitors were observed in the Indian Market. d) Consumer Behavior
Analysis - At last field work is done to get the knowledge of the perception of the clients and
their mind-set regarding the products of organization. I met 150 builders/architects/electrical
dealers etc. to analyze the potential market of product in Navi Mumbai in near future. During the
conversion with these people I understood mind-set of customers, competitors, Current Scenario,
Upcoming Technology Trends, Future Trends and Challenges. Some people even mentioned the
disadvantages and negative points of the product. They also told me the ways to improve these
negatives. They even mentioned that what actually is needed in the market and company should
5
come up with new products to meet the requirements of the consumer. This all helped me to
understand the consumer behavior. It was analyzed that awareness of NCC was negligible in
market. Only 0.3% market was aware of NCC and its products. It was analyzed that Intercom
System was on high demand whereas there was less demand of Standalone and Home
Automation System. Mainly construction sites between 80-100 Lakh are likely to purchase NCC
products. Around 36% people in Navi Mumbai consider NCC products as luxury rather than
necessity. Reasons monitored that people are not likely to purchase Digital security system and
Home Automation System includes-they are expensive, hard to maintain, other organizations
product are coming with more features than NCC, high false alarm rate etc. Major sector where
future of product can be seen includes Transportation, Defence, Border Securities, Commercial
and Public Buildings.
6
Table of Content
Sr. No TITLES Page No.
1 Introduction of the company 9
2 Organisation Chart 17
3 Need for Study 18
4 Objective and development plan 19
5 Literature Review 20
6 Research Methodology 29
7 Data Collection & Analysis 30
8 Findings 34
9 Conclusion & Recommendation 35
7
List of Figures
Figure Number
Figure Description
Page Number
Figure 1.1 NCC Work Structure 14
Figure 1.2 Intercom Terminals 15
Figure 1.3 Watch Dog System 16
Figure 1.4 Vision Terminal (Type-1) 17
Figure 1.5 Vision Terminal (Type-2) 18
Figure 1.6 Porch Unit System 19
Figure 1.7 Visitor Tracking System 20
Figure 1.8 Sales and Distribution 21
Hierarchy
Figure 3.1 Snapshot of Home 32
Automation
Figure 3.2 Major Market Area (India) 34
Figure 3.3 Market Distribution 35
Figure 3.4 Market Diversion Graph 37
Figure 3.5 Technology Diversion Graph 38
Figure 5.1 Work Flow Diagram 41
Figure 5.2a Brand Awareness 42
Figure 5.2b Brand Awareness 42
Figure 5.3 Expected Future Demand 43
Figure 5.4 Economically feasibility of 43
Products
Figure 5.5 NCC Products, Necessity or 44
Luxury
8
List of Tables
Table Number
Table Description
Page Number
Table 1.1 Vision Terminal Technical 17
Specification (Type-1)
Table 1.2 Vision Terminal Technical 18
Specification (Type-2)
Table 1.3 Porch Unit Technical 19
Specification
Table 3.1 May 2007 Market 37
Assessment
9
Chapter 1
INTRODUCTION OF THE COMPANY
Company Profile
Overview
NCC Telecom Private Limited with its popular abbreviation NCC was established in the year
1989. It is privately owned organisation working on the field of building Automation as focus
core area.
Since its inception NCC has determinately forged ahead with the aim of constantly providing
value additions to its customers. This is achieved due to NCC’s firm belief in channelling
dedicated resources towards research and development activities. As
a result today we present a range of products. In building automation we offer intercom, video
apartment and security systems while in the realm of home automation products we have come
with products such as video door phones and security solutions and communication solution
through the EPABX systems.
Motto of Organisation
NCC draws 19 years of quality work, strong client relationship and value driven solutions for
focussed industry to provide best in class results. We strive to help each client to see ideas,
solutions, improvements and so results. The motto of organization is “Design and Develop
Indigenous Technology to improve Life Style, Communication and Security to the utmost level”.
10
Products
All products are designed, developed and manufactured by the organization which is ISO 9001-
2000 certified. Products are as follows:
Automation systems – Lighting / AV / Security
Building Intercom and security systems upto 4096 apartments
Video Apartment systems with 4 zone security
Stand-Alone video Door phone
Visitor Traking system
Guard Patrol system
Lighting Control Touch Panels
Features of Products
Open and Futuristic
Cost effective and affordable products
Simple and easy to use
Scalable
Staff
NCC is composed by 45 ambitious employees.
Style / Culture
Management by walking around
Participative management
Skills set
Self-motivation
Presentation skills
Presence of mind
Art of negotiation & closure
Understanding the requirements of clients & offering solutions as per requirements
11
Products and features offered by NCC
NCC Telecom manufactures a lot of products in Home Automation Industry and digital
security system. It major products and their features has been described below:
1. Intercom System
Figure 1.2 Intercom Terminals Source: NCC Telecom Features:
Interactive Voice response system
HOTLINE to security extension
5 party conference facility
Talking caller line identification
Voice conformation on last call received
12
Extension to extension calling with restriction / do not disturb / call blocking
2. Watch Dog
Figure 1.3 Watch Dog System
Source: NCC Telecom
At night a ‘Jagte Raho’ call given to a security extension, every 30 minute. The security personal
has to answer this call. All unanswered call stored in memory, the data which can be accessed
via serial port
3. Display Unit
A visual display unit indicates current time and incoming call number. This has an Additional
Hooter attached which rings in panic situation.
13
4. Vision Terminal
Figure 1.4 Vision Terminal (Type-1)
14
Source: NCC Telecom
Figure 1.5 Vision Terminal (Type-2)
Source: NCC Telecom
Table 1.2 Vision Terminal Technical Specifications (Type-2)
15
Source: NCC Telecom
5. Porch Unit
Figure 1.6 Porch Unit System Source: Provided by company
Table 1.3 Porch Unit Technical Specification
16
Source: NCC Telecom
Visitor Tracking System
Figure 1.7 Visitor Tracking System
Source: Provided by company
You can keep a complete track of visitors at your home, along with date, time & a video stamp.
You can actually talk to visitor before he / she enter to your home. In case you are not at home,
the visitor can leave a video message or SMS alert.
Features:
Image / video recording of visitor
Text messaging
Voice messaging
17
ORGANIZATION CHART
18
NEED FOR THE STUDY
Not many builders are aware of NCC telecoms
To know the acceptance level of the standalone product
To know future expectations & trends
19
OBJECTIVES
To spread awareness among the Builders and Architects of Navi Mumbai about the
organisation.
To study potential market of NCC Telecom.
To research about the competitors in the market and competitive advantages of various
competitors have over NCC.
20
LITERATURE REVIEW
Home automation refers to the use of computer and information technology to control home
appliances and features such as windows or lighting. Automation systems can range from simple
remote control of lighting through to complex devices with varying degrees of intelligence and
automation. The popularity of home automation has been increasing greatly in recent years due
to much higher affordability and simplicity through smartphone and tablet connectivity. The
concept of the "Internet of Things" has tied in closely with the popularization of home
automation. Home automation is the residential extension of building automation. It is
automation of the home, housework or household activity. Home automation may include
centralized control of lighting, HVAC (heating, ventilation and air conditioning), appliances,
security locks of gates and doors and other systems, to provide improved convenience, comfort,
energy efficiency and security. Digital security systems have been made to control all the
activities online, so that you can take care of your home even when you are outside your
residential place.
Home automation technology has been around for several decades in luxury dwellings. But the
industry as a whole has been slow to take off. Blame it on clunky, hard-to-use systems with sky-
high prices that required professional installation and a lot of upkeep. But as smartphones and
tablets become increasingly prevalent, smart home tech is becoming easier to use and
dramatically more affordable. The home automation industry is projected to grow to $14.1
billion in worldwide revenues by 2018, according to ABI Research, predominantly in the United
States. That would be an 11.5% increase over 2012.
ABI Research projects double-digit growth through 2018 in all of the industry’s submarkets, led
by the managed subscription market (automation subscriptions provided by security and telecom
companies), with expected growth from 1.9 million devices shipped per year to 19 million. ABI
also expects the mainstream market, comprised of less expensive products and lower-cost vendor
installations, to grow 60% to more than 6.4 million devices.
“Home automation is not a very new market,” says Adarsh Krishnan, an ABI Research senior
analyst. “But the mass awareness of home automation is relatively new, primarily driven by
initiatives from security companies and more recently telecom and cable companies.”
21
Brush et al. (2011) in their paper entitled “Home Automation in the wild: Challenges and
Opportunities” studied about the four barriers that need to be addressed before home automation
becomes amenable to broader adoption. They collected primary data by visiting 14 household
with home automation. They found the four barriers to be high cost of ownership, inflexibility,
poor manageability and difficulty achieving security. They had interview with 14 households and
ask why the household had installed home automation, their experience of living with it, and
how they handled guests and security considerations. We also asked participants about their
interest in a set of possible home automation applications to elicit information about
configuration and access control considerations. They found most of the people were happy with
the performance of Home Automation irrespective of above mentioned problems. They also
concluded the future problems- eliminating the need for structural change to install home
automation, providing households with simple, confidence building security mechanisms, and
the ability to compose household devices.
Verma et al. (2010) in their paper entitled “A Digital Security System with Door Lock System
Using RFID Technology” said that they have implemented a digital security system contains
door lock system using passive RFID. Their final conclusion as per experiences is [1]. This
technology has not been very often used in industry due to lack of standardization among the
manufacturing companies earlier. RFID technologies are efficient [2] and secure compare to
other network [3]. With RFID wireless automatic identification takes a very specific form: the
object, location, or individual is marked with a unique identifier code contained with an RFID
tag, which is in some way attached to or embedded in the target [6]. RFID is not a single product
but a comprehensive system, a typical RFID system include three basic elements: RFID tag
(transponder), reader (transceiver) and back-end application system (or database), which
demands the support of the computer network. The software is used for management,
controlling, transaction, operation and maintaining record of the various users.
Ahemed et al. (2011) in their paper entitled “Implementing Computerized and Digitally
Mobile Home Automation System towards Electric Appliance Control and Security System”
addressed on the importance of home automation system as compared to the old and traditional
living systems. They showed the concept towards the practical implementation of a home
automation and security system. They designed hardware and software architectures which then
implemented in the form a real time prototype application i.e. Smart House. They concluded that
22
people were happy and they proposed a new approach that is Smart House. They said that their
proposed approach and implemented software and hardware system can add some good values to
the field of Home Automation System Design and Development.
Delgado et al. (2005) in their paper entitled “Remote-Controlled Home Automation Systems
with Different Network Technologies” investigated o the potential for remote controlled
operation of home automation systems. It discusses about the possible solutions through various
network technologies and indicates how to optimize the use of such systems. It says there are
some major factors that must be handled always before developing and installing a Home
Automation System; factors like security, reliability, usefulness, robustness and price are critical
to determine if the final product will accomplish the expected requirement. It gives the example
of E-home standard setting up in Europe that is the world's leading system for "intelligent"
electrical installation networking. They concluded by saying that completion of a whole cycle of
control between a remote device and the building will be critical for the success of the research;
once control is achieved a meticulous study about how users and the system interact has to be
done.
Kaur (2010) in paper entitled “Microcontroller Based Home Automation System with Security”
after a research and study concluded that An automated home can be a very simple grouping of
controls, or it can be heavily automated where any appliance that is plugged into electrical power
is remotely controlled. Costs mainly include equipment, components, furniture, and custom
installation. Ongoing costs include electricity to run the control systems, maintenance costs for
the control and networking systems, including troubleshooting, and eventual cost of upgrading as
standards change. Increased complexity may also increase maintenance costs for networked
devices. Learning to use a complex system effectively may take significant time and training.
Control system security may be difficult and costly to maintain, especially if the control system
extends beyond the home, for instance by wireless or by connection to the internet or other
networks.
Ahmed (2009) in paper entitled “Home Automation” briefly discusses the importance of home
automation system. It talked about the Auto electrical house. How Home Automation is booming
these days in country. It is very important for security. It talks about various devices that can be
used as Automation and how these devices can be controlled even if you are far away from your
place.
23
Elshafee et al. (2012) in their paper entitled “Design and Implementation of a WiFi Based Home
Automation System”. This paper talks about design and prototype implementation of new home
automation system that uses WiFi technology as a network infrastructure connecting its parts. It
said that the proposed system is better from the scalability and flexibility point of view than the
commercially available home automation systems. It says that Home automation systems face
four main challenges- high cost of ownership, inflexibility, poor manageability, and difficulty
achieving security. They came up with a new technology that these systems must work on Wifi
technology to connects system parts, satisfying user needs and requirements. They conclude by
saying WiFi technology capable solution has proved to be controlled remotely, provide home
security and is cost-effective as compared to he previously existing systems.
Industry Analysis
Industry is Home Automation & Security Systems. Global home automation market valued at
USD 3.6 billion in 2012 is expected to see a strong growth at 24.5% CAGR during 2013 to 2019
period. Currently, the market is at a point of inflection and is characterized by following aspects:
complexity of solutions, high level of inter and intra industry competition, large number of
networking technologies, multiple and incompatible standards, and sub-sequent high priced
products. The underlying demand for a universal solution, which is easy to install, works across
multiple platforms, can be integrated with other automation sub-systems in a home, and is priced
competitively, is expected to help the market turn into a mass (mainstream) market from a luxury
dominated market.
Global home automation market which till now saw revenue coming from systems considered as
luxury is gradually witnessing a shift towards systems made for mass adoption. This has induced
trend across players who catered to luxury segment and are now developing solutions for
mainstream market. As a result, luxury segment is expected to give way to managed automation
services and mainstream solutions. Both these segments are expected to collectively account for
71.0% of the global market by 2019, a rise of 27.5% from that in 2012.
Entertainment segment which was a dominant market in the early stage is now
surpassed by safety and security segment, which is expected to remain as largest
24
market throughout the forecast period. This is largely attributable to growing consumer concerns
for safety owing to a rise in criminal activities. Moreover, with economic slowdown globally
affecting consumer spending on luxury things, scope for growth of cost saving applications such
as HVAC and energy management is alleviated, resulting in these segments too showing healthy
growth signs. Subsequently, emergence of new applications such as home healthcare monitoring
and home robotics too is expected to increase by the end of forecast period.
Geographically, North America is expected to remain the largest market for home automation
systems, with U.S. emerging as the single largest market throughout the forecast period. Its
revenue share in 2012 was estimated at 40.7%. Across Europe and Asia Pacific region, countries
such as Australia, Germany, China, and India, are considered as high potential market by
industry players. As a result, these regions are seeing an influx of new and existing players.
Some of the leading players among specialized solution providers in the market are: Crestron,
AMX, ADT, and Control4. Generalized players in the market include: Schneider Electric SA,
Legrad, and Siemens, among others. Apart from these, companies such as Verizon, AT&T, and
other telcos too are foraying in this market.
The global security systems industry encompasses many domains from households to the
corporate world and touches on an array of sectors such as energy and transportation. As
businesses and individuals continue to enlist the internet in their day-to-day activities, the need
for protection from cyber threats is increasingly important. Hackers worldwide are using more
complex methods, which drives demand for sophisticated cyber security solutions. Terrorist
threats in particular are prompting greater investment in security, notably in transportation
applications. Innovation in terms of software is equipping the transportation sector with a
necessary security tool.
Key Market Segments
The world Managed Security Systems (MSS) market is expected to reach almost $8.5 billion by
2015, according to Global Industry Analysis. Demand will be particularly strong in developing
markets like the Asia-Pacific region. Market growth is fuelled by rising corporate interest in risk
management and network security to combat hackers. Companies not only purchase security
systems, but also constantly update them to evolve at the same rate as hacker attacks. MSS
25
demand is also rising due to the need to track data within companies such as network logs and
emails.
The global security equipment market is expected to record yearly growth in excess of 7%
through 2014 to reach $95 billion, says Freedonia. Emerging markets are set to record the
strongest growth, across Africa, South America, Asia and Eastern Europe. Electronic security
products represented 60% of the overall security equipment market three years ago, and are
expected to grow to account for a larger market share in coming years.
The world security software market for small and medium business is expected to expand at
over 13% yearly between 2010 and 2014, reports TechNavio. Market growth will be driven by
compliance requirements, and demand will be particularly strong for email and web security
solutions. One obstacle to market expansion is the relatively lower IT security budget compared
with larger companies. Leading players operating in the market include Trend Micro, McAfee,
Kaspersky Lab and Symantec.
The world network security industry is expected to reach almost $10 billion by 2014.
Due to the rising number of cyber-attacks being carried out worldwide, companies and
state bodies have been obliged to step up their network security. Visiongain estimates the
world cyber security market will exceed $61 billion by 2012.
The world smart grid cyber security market is forecast to record yearly growth of almost
21% from 2010 to 2014, reports TechNavio. Market growth is fuelled by compliance
requirements, and obstacles to market expansion include the lack of sector uniformity.
Leading players operating in this market include VeriSign, Industrial Defender and BAE
Systems.
The world security technologies for transportation industry was worth close to $2.5
billion in 2010 and is forecast to record yearly growth of 20% to reach almost $6 billion
by 2015, reports BCC Research. Video surveillance technology represents the leading
market segment at just under $2 billion. Biometrics technology is set to record the fastest
growth rate, exceeding 33% growth between 2010 and 2015.
26
BCC Research estimated the US home automation systems and devices market was worth
around $3.2 billion in 2010. The market is forecast to exceed $5.5 billion in 2016,
recording yearly growth of close to 11% between 2011 and 2016. Lighting, home
entertainment and security systems combine to represent almost 60% of the home
automation market. This segment should see yearly growth of over 12% to reach almost
$4 billion in 2016. The remainder of the market is made up of ventilation, air
conditioning, heating and energy management. This segment, accounting for over 40% of
the overall market, is forecast to record yearly growth of almost 7.5% from 2011 to 2016,
reaching $1.7 billion.
Indian Market Analysis
The India automation and control systems market has seen significant changes in dynamics over
the years. Initially concentrated in the areas of HVAC and security systems; the market has now
evolved into newer areas like lighting systems, fire detection systems, entertainment systems and
energy management systems as well. The automation not only integrates different automation
systems as mentioned above but also enables substantial power savings.
The automation and control systems market may be broadly classified into building automation
and home automation, finding deployment in industrial, commercial and residential settings. The
commercial market which includes offices, educational institutions, hospitals and other types of
buildings accounts for a bulk of revenues of the India automation market; on the other hand, the
residential market is regarded as an immense growth opportunity in the present scenario due to
the increasing proliferation of dwelling units in a large number of cities and towns across India.
27
Figure 3.1 Snapshot of Home Automation
Source:https://medium.com/technology-media-market/home-automation-market-to-reach-usd-
16-4-billion-by-2019-transparency-market-research-a89ff38f13c0
According to industry estimates, the India automation and control systems market is expected to
28
grow at a CAGR of 30% over the 5 years to 2016, with applications such as security, lighting
and energy management likely to play an important role in achieving this significant growth rate.
Increasing data thefts, burglaries, demand for enhanced security, need for energy management /
conversion are a few of the key factors that have spurred the India automation and control
systems market. Some of the key players in this domain include Honeywell, Legrand,
Advantech, Lutron, Crestron, Siemens Building Technologies, Schneider Electric and Johnson
Controls.
With rising disposable incomes and rising incidence of crime and an all-round sense of insecurity
in the social scenario people are becoming more conscious about their physical security and
hence investing in security products and services. People start with purchase of video door
phones and then home alarm systems and then finally graduating to CCTVs. This gives an
immense opportunity to an Industry to grow. Though the current market size of electronic
security system is Rs.10 billion (June 2013), it is envisaged to be as large as Rs.22 billion by
2015. It is expected to grow conservatively by about 26%.
The Indian market for electronic security equipment is categorised into the electronic sector and
non-electronic sectors and organized and informal sectors. While the total number of players in
the organized electronic sector is around 50, the unorganized sector accounts for about 800 units.
Many Indian companies have collaborated with foreign manufacturers and are marketing foreign
products in India. Security equipment is imported mainly from USA, UK, Germany, Singapore,
Italy, Hong Kong, Israel, Japan, Korea, China, and Taiwan.
29
RESEARCH METHODOLOGY
Type of research : Qualitative
Research Methodology- Descriptive and exploratory
Sampling technique- Convenience Sampling
Data Collection:
Primary Data: Collected by field work. 150 meetings were done in a period of 2 Months
during Summer Internship with the various Architects, Builders and Constructors in Navi
Mumbai
Secondary Data: Data needed apart from the responses from various clients is collected
by books and Internet
Field Work
• 150 meetings
• Various Architects, Builders and Constructors in Navi Mumbai region are called
to take appointment for the meetings.
• All appointments are done on daily basis.
• Informed about the company NCC Telecom and what business it is in. Then a
demo of Digital standalone is shown to them.
• Questionnaire is used to collect responses.
• Area covered –From Vashi to Panvel
30
DATA COLLECTION & ANALYSIS
Data Analysis is done as per the feedback is taken by the Architects, Builders and Constructors
about the product and the competition is analysed by the asking various queries to the clients.
1) Have you ever installed any security system in any of your project?
2) Are you were aware about our Company (NCC Telecom Pvt Ltd) and
products before?
94
6
yes no
Yes No
8
96
31
3) Which brand are you aware of providing security systems? (Mark all
the brands you know?
4) Which company’s security system have you ever installed in any
project?
13
15
16 12
8 5
12
13
2 0.3 0.6
Brand Presence (in per cent)
MatrixGodrejPanaHoneyZicomTyroSiemensGroup4LanelNCCJohnson
82 96 102 76
55 35
77 85
18 2 4 0
50
100
150
No of People aware of brands
32
5) Which NCC Telecom product did you find useful and applicable to
your projects?
6) In which price brackets of flats, do you think our products and
services are feasible economically?
52
19
14
6 9
Expected Future Demand (in per cent)
Intercom System
Video ApartmentSystem
Video TrackingSystem
Stand Alone
HomeAutomation
4 16
46
34
Economically feasibility of products (in per cent)
30-50 Lakhs
50-80 Lakhs
80-100 Lakhs
Above 1 crore
33
7) Do you find our products and services, necessity or luxury for our
present lifestyle?
36
64
NCC Products – Necessity or Luxury
Necessity
Luxary
34
Findings
96% have installed security systems in their project
Maximum people are aware of Panasonic brand
Only 0.6% builders were aware of the brand
2 builders have used NCC products before
Expected future demand - 52% - Intercom System
19%- Video Apartment system
14% - Video Tracking System
6% - Standalone
9% - Home Automation
Economically feasibility of products- 46% - 80-100 Lakhs
Only 36% are of the opinion that security systems are necessary & 64% feel its luxury
35
Conclusion
For Standalone Product
• New in the market • Expensive • Does not have charging point • Not repairable
Reasons for growing sales of Security and Home Automation Systems
Increasing crime rates
Low faith in the law enforcement forces
Rise in general education & awareness
Rise in income levels & consumer spending
Legislation
Terrorism & Insurgency - (Homeland Security Market)
Increased Government allocations for Police Modernization & Defense System Upgrades
Critical Infrastructure, Commercial Buildings, Nuclear Sector
Current Situation
With the introduction of technology every field has changed and so has the way we
perceive security.
Guards have been replaced by CCTV’s, motion sensors and new age devices which have
taken over from traditional methods of security
The corporate are taking their own measures in adopting technologically advanced
methods of security
Technological breakthrough has made it possible to decrease costs which have led to an
increase in demand for these products
Price sensitivity has been an issue which has been addressed as security is now a key
cause of concern
Reasons monitored home security isn't worth it
36
They can be expensive to install
Most people simply ignore them
They’re annoying
They have a high false-alarm rate
They’re fairly easy to disable
They’re not effective against snatch-and-grab burglaries
They won’t work during an extended power outage
Future Scope in Industries
Defence Sector
Critical Infrastructure Security
Transportation & Logistics
Aviation & Maritime Security
Safe Cities & Smart Cities
Border Security
Commercial & Public Buildings
Entertainment & Casinos Security
Retail – Analytics, Residential Security and other submarkets
37
Questionnaire
NCC TELECOM PVT LTD
Market Scope Survey
To help us build more information about the customers and to build a market for
our security and automation based products, we would request you to spare a few
minutes of your time to answer the following questions. This will help us in planning
future projects and sales to ensure we meet our customer needs.
Name of the Architect/ Dealer: ____________________________________
Name of the firm/ Association: ____________________________________
Date: ___/___/______
Email Id: __________________________
Contact Address: ________________________________________________
Phone Number: ______________________
1. Have you ever installed any security system in any of your project? Yes No
2. Are you were aware about our Company (NCC Telecom Pvt Ltd) and products before?
Yes No
3. Which brand are you aware of providing security systems? (Mark all the brands you know)
NCC Telecom Godrej
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Matrix Panasonic Honeywell Johnson Controls Zicom Lenel Systems Tyco Siemens
Group 4 Others
4. Which company’s security system have you ever installed in any project? NCC Telecom Godrej Matrix Panasonic Honeywell Johnson Controls Zicom Lenel Systems Tyco Siemens Group 4 Other (please specify) __________________________________
5. Do you find our products and services, necessity or luxury for our present lifestyle?
Necessity Luxury
6. In which price brackets of flats, do you think our products and services are feasible economically?
30- 50 Lakhs 50-80 Lakhs
80-100 Lakhs Above 1 crore
7. Which NCC Telecom product did you find useful and applicable to your projects? Intercom System Video Apartment System
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Video Tracking System Stand Alone Home Automation
8. Can you please suggest any related products or services that customers would find useful: ___________________________________________________
9. Medium of advertisement you will be suggesting for promotion of our products in your area: __________________________________________
10. Please suggest some dealers in your area who will be interested our products: ____________________________________________________
11. Please provide details about your upcoming projects and their construction status: ______________________________________________________
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