A TATA Enterprise
PROJECT TITILE:
STUDY ON BRAND PENETRATION OF VOLTAS AS COMPARED TO COMPETITORS IN RETAIL AC MARKET AND STRATEGIES TO IMPROVE IT
A TATA Enterprise
RESEARCH OBJECTIVES:
• To evaluate brand push of Voltas at retail outlet
• To evaluate the standings of Voltas vis-à-vis competitors on various Brand Penetration Indicators.
• Evaluate the customer perception of Voltas and competing brands.
A TATA Enterprise
• DESCRIPTIVE RESEARCH BASED ON QUOTA SAMPLING TECHNIQUE.
• FACE TO FACE INTERVIEWS USING A STRUCTURED QUESTIONNAIRE.
• TARGET RESPONDENTS
-RETAILERS
-INTENDING CUSTOMERS
RESEARCH DESIGN
A TATA Enterprise
RESEARCH DESIGN(contd)..
• SAMPLE SIZE:– RETAILERS: 90 No’s
• ALL VOLTAS DIRECT DEALERS(28)
• VARIOUS MULTIBRANDED DEALERS(60)
– CUSTOMERS: 50 No’s• ALL INTENDING CUSTOMERS
• FIELD WORK PERIOD:
FIELD WORK WAS CONDUCTED IN THE MONTH OF MAY-JUNE 2002
A TATA Enterprise
• MOST PUSHED BRAND AT VOLTAS OUTLETS• DEALER PERCEPTION OF VOLTAS vis-à-vis
competitors on various brand penetration parameters.• Most Selling Segment.• Most Enquired Brand• Dealer prediction for next year sales• Dealer-Customer Perception Gap about VOLTAS. • Some future steps………..
WHAT THIS STUDY REVEALS?
A TATA Enterprise
China– 14 million
Japan– 9 million
USA–10 million Europe– 2.7 million
Middle East– 1.8 million
India– India– 0.7 0.7 millionmillion
AC Industry - global market sizes
Source : Francis Kanoi Marketing Research
A TATA Enterprise
Source : Francis Kanoi Marketing Research
AC Industry - a snapshotProduct Category Size (2000-01
(Rs. Crore) Growth 1998-2001 (CAGR%)
Room Air-conditioners 1800 17%
Central Plant 800 17%
Ducted System 400 20%
Total 3000
• LG• Matsushita
(National)• O’ General• Samsung• Voltas
• Amtrex Hitachi• Blue Star• Carrier Aircon• Daikin Shriram• Whirlpool
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Market Scenario-FY01
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Window AC Market- 566000 units
Source: TV Veopar Journal
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Split AC Market-134000units
Source: TV Veopar Journal
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Geographical Distribution
Source: TV Veopar Journal
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DEALER STUDY……
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DEALER NETWORK• OVERALL NUMBER OF DIRECT RETAILERS: 28
VOLTAS: 3
VOLTAS:7
VOLTAS:7
VOLTAS: 6
VOLTAS: 5
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Competitors Dealer Network
BRANDS
LG
SAMSUNG
HITACHI
CARRIER
WHIRLPOOL
NO.OF
DEALERS
52
50
46
38
42
A TATA Enterprise
LG
HITACHI
CARRIER
SAMSUNG
WHIRLPOOL
0
2
4
6
8
10
12
14
LG HITACHI CARRIER SAMSUNG WHIRLPOOL
COMPETITORS PRESENCE AT VOLTAS OUTLETS
A TATA Enterprise
LG
35%
HITACHI
27%
SAMSUNG
20%
VOLTAS
4%
WHIRLPOOL
3%CARRIER
11%
LG
HITACHI
SAMSUNG
VOLTAS
WHIRLPOOL
CARRIER
MOST ENQUIRED BRAND AT VOLTAS OUTLETS
A TATA Enterprise
0
5
10
15
20
25
30
35
40
45
1
BRANDS
MOST SELLING BRANDS AT VOLTAS OUTLETS
LG
VOLTAS
HITACHI
SAMSUNG
CARRIER
WHIRLPOOL
A TATA Enterprise
<1800018-20
20-22
22-24
24-26
>26000
0
10
20
30
40
50
60
<18000 18-20 20-22 22-24 24-26 >26000
PRICE RANGE
MOST SELLING PRICE RANGE
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IDENTIFIED BRAND PENETRATION PARAMETERS
• Stock Availability• Ease of Replacement• Services• Product Quality• Product Range• Customer Schemes
• Management Support• Product Awareness• Dealer Gifts• Price Range• Advertisements• Dealer Margin
A TATA Enterprise
32
22
15
1011
0
5
10
15
20
25
30
35
1
ATTRIBUTES
REASONS FOR PUSHING A BRAND
ADVERTISEMENTS MANAGEMENT SUPPORT MARGIN QUALITY SERVICES
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PERCEPTUAL MAPPING
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CUSTOMER CONSIDERATIONS
0
2
4
6
8
10
12
14
1
ATTRIBUTE
BRAND
PRICE
COOLING
QUALTIY
POWER CONSUMPTION
FEATURES
NOISE LEVEL
DISCOUNTS
FINANCE
AESTHETICS
AFTER SALES SERVICE
PAST EXPERIENCE
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0
10
20
30
40
50
60
70
80
90
100
LG CARRIER WHIRLPOOL SAMSUNG HITACHI VOLTAS
BRANDS
SALES PREDICTION BY DEALERS
INCREASE
DECREASE
NO CHANGE
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S-W ANALYSIS
STRENGTHS• A TATA Enterprise• Quality & Technology.• Prices.• Management Support.• Product Proliferation.
WEAKNESSES• Services• Lack of customer focus
in advertisements.• Replacement policies• Perceived as ME-TOO
product.• Few Number of dealers
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CUSTOMER STUDY….
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TOP OF MIND BRAND RECALL
LG52%
HITACHI20%
SAMSUNG10%
VOLTAS4%
CARRIER12%
WHIRLPOOL2%
LG
HITACHI
SAMSUNG
VOLTAS
WHIRLPOOL
CARRIER
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• LG seems to be doing a household segment feat here too. LG strongest with respect to advertising saliency and cut through. Total awareness is also the highest
A TATA Enterprise
PURCHASE DRIVERS….
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
FAM
ILY
ADVE
RTI
SEM
ENT SE
LF
DEA
LER
BRAN
D
PRIC
E
FEAT
UR
ES
AEST
HET
ICS
CO
OLI
NG
SPEC
IAL
OFF
ERS
AFTE
R S
ALES
SER
VIC
EDECISION INFLUENCERS
DEGR
EE O
F IN
FLUE
NCE
DEGREE OF INFLUENCE
A TATA Enterprise
• Product features are the prime motivators for purchase, followed by Product Benefit related features.
• Ability to cool quickly and Power consumption are the most important features
A TATA Enterprise
Dealer-Customer Perception Gap………
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Dealers Perception
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Customer Perception
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Recommendations…..
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Emphasis TATA
• TATA stands for Reliability
• Being a TATA company is the biggest positive point of Voltas.
• So TATA should be highlighted.
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Improve Awareness and Advertising Saliency.
• Awareness, and Company Image seem to the biggest barrier for non purchase of Voltas.
• Amongst Intending purchasers, LG has the highest saliency, Voltas features down the line. There is a definite cause of worry as it is losing out to LG as the brand the consumer would intend to buy.
• Drivers like being Environmentally Friendly and reputation for offering Better Quality Products can be looked at as another possible alternative positioning
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Me-Too Image Needs Change• Voltas is currently differentiated on aspects that are category
drivers, but the problem lies in the fact that other brands are also differentiated on them.
• This is probably resulting in Voltas being less prominent than it should be even on the imagery where it is differentiated.
• Voltas can try and increase its prominence on these drivers by emphasizing these in its communication.
• Comparison charts can be provided to the dealers so that these differentials can be highlighted to the customers.
A TATA Enterprise
Replacement Policies
• Company replacement policies needs to be given a thought as this is one of the major factors effecting the Brand Penetration
• The Replacement Cycle should be “Quick ‘n’ Fast”
• This may also be considered as a plus point for pushing Voltas by Dealer
A TATA Enterprise
Crystal Care Needs Improvement
• Services is one of the Biggest Fear among the Dealers and so to the Customers.
• LG and Samsung seem to be doing well on this service Criteria
• Services should be Improved
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Consumer pull ,not Dealer Push
• Voltas should encourage the consumer Pull with highly differentiated products and unique branding exercises rather then emphasizing on dealer push.
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Introducing Attractive Customer Schemes
Point of Purchase schemes have always affected the final sale of the product this fact is very well utilized by LG and it is able to sell the maximum number of AC’s .On these lines HSBC scheme was great as it also helped a lot in Brand Promotion.
A TATA Enterprise
Thank You……..
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