Final Project (EF and Its Competitors)

A Project Report On ‘A COMPARATIVE STUDY ON VACUUM CLEANERS OF EUREKA FORBES AND IT’S COMPETITORS‘

In partial fulfillment of the Requirement for MASTER OF BUSINESS ADMINISTRATION

Submitted by AMOL P. NITNAWARE (MBA-II)

Under the guidance of Dr. Amishi Arora

DATTA MEGHE INSTITUTE OF MANAGEMENT STUDIES, NAGPUR

2010-2012

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CERTIFICATE

This is to certify that Project Report titled „A COMPARATIVE STUDY ON VACCUM CLEANER OF EUREKA FORBES AND ITS COMPETITORS‟ is a bonafide work carried out by Mr. Amol P. Nitnaware of MBA- II (Marketing and Finance) of Datta Meghe Institute of Management studies in the partial fulfillment of Master of Business Administration course of University of Nagpur (2010 - 2012). He has worked under our guidance and direction. His work is found to be good and complete in all respect. During the period we found him hardworking, sincere and loyal. We wish him all the best for future.

Project Guide Dr.Amishi Arora

Dr. Amishi Arora Director, DMIMS, Nagpur.

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DECLARATION

I, Amol Nitnaware student of M.B.A II nd YEAR of D.M.I.M.S. Nagpur (2010-2012), Hereby declare that this project report ‘A COMPARATIVE STUDY ON VACCUM CLEANER OF EUREKA FORBES AND ITS COMPETITORS’ is written and submitted by me under the guidance of Mrs. Archana Shrivastav and Dr. Amishi Arora (Project Guide). The findings and interpretations in the report are based on both primary and secondary data collection. This project is not copied from any source or other project submitted for similar purpose.

Date: Place: Nagpur

Amol Nitnaware

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ACKNOWLEDGEMENT

Every project has a number of persons involved in it, some directly others indirectly. Everyone has contributed to its success; the critics who spur you into action with renewed enthusiasm and the supporters who steadfastly encourage you all through till the end. I would like to take this opportunity to express my gratitude for all those who provided valuable criticism, appreciation and guidance to make this project a success. I express my gratitude to Mrs. Archana Shrivastav, and Dr. Amishi Arora my Project Guide for their guidance, motivation and attention. They were very much approachable with all my doubts. I am thankful to all of my friends and colleagues for their help in completing this project work. Finally, I am thankful to my entire family members for their great support and encouragement.

Date: Place: Nagpur

Amol Nitnaware

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TABLE OF CONTENTS
CHAPTER PARTICULARS PAGE NO.

1

INRODUCTION

6

2

HISTORY OF THE ORGANISATION

9

3

COMPANY PROFILE

12

4 5

OBJECTIVES OF STUDY HYPOTHESIS

26 28

6

LIMITATIONS

30

7

RESEARCH METHODOLOGY

32

8

DATA ANALAYSIS & INTERPRETATION

35

9

RECOMMENDATIONS

46

10

CONCLUSION

48

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BIBLIOGRAPHY

52

12

ANNEXURE

54

5

INTRODUCTION

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CHAPTER 1
INTRODUCTION

The main objective of the project was to conduct Customer perception Survey for Eureka Forbes Company Limited for which, we have to understand the customer and identify the consumer loyalty, their likeliness, and their demand / requirement needs, constraints, response and emotions. The objective of this study was to analyze consumer perception of in Nagpur city with respect to the performance of the product, sales effort and sales service. Another underlying objective was to determine the study of competitors who share the market of vacuum cleaners with Eureka Forbes. Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats. Comparative study of the competitors of brings forth the offering made by our competitors. It is important to understand the strategy of the competitors when they offer products and services in the market. This makes our organization to carry out activities in line with the strategies of competitors. Follow up of the competition in the market would help the organization to improve on its shortcomings and add value to its customers. Retaining of market share is another benefit from the competitor study. So, overall study of competitor in the market holds a great importance. Eureka Forbes being a giant in the vacuum cleaner division holds almost a monopolistic position in the vacuum cleaner market. According to the present statistics it holds almost 90% share in the vacuum cleaner market. It is made possible through extensive support of direct sales executive force acquired by Eureka Forbes throughout the country. Direct Sales strategy is the innovation provided by Eureka Forbes to the marketing and sales scenario. Direct marketing channel has produced shocking results.

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It is channel through which the customer gets the first hand experience of the product at his doorsteps. Breaking the tradition of ages where a customer would approach a shop or a mall, the direct sales strategy has found to be effective and result oriented. It was essential to know the feedback of customers in order to formulate effective marketing and sales strategies in future and improve the Quality of product to achieve better consumer satisfaction. The personal visits and campaign made us possible to measure the satisfaction of consumer by identifying the attributes, which gave consumer-varying degrees of satisfaction and to improve brand image. Questionnaire was based on company format. Some attributes like requirement of Customer and sales services offered by company were identified as critical (motivational) factors for providing satisfaction to consumers. The criterion to find out the perception of customers of the Eureka Forbes customers and their competitors was on the following criterion: Cost, discounts, availability, size, weight, quality, handling, Door to door service, life of the product, annual maintenance contract and query redressed. The study was undertaken for Nagpur region. The questionnaire contains various aspects like their names, address and contact numbers, service details, sources through which they became aware about the product, usage duration of the product, what they dislike about the product and recommendation of Eureka Forbes vacuum cleaners to others. The researcher went personally to the various customers. The customers were interviewed personally and the data was collected. The opinion and the suggestions by the customers were carefully analyzed. The data interpretation is done on the basis of the findings of the study.

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HISTORY OF THE ORGANISATION

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CHAPTER 2 HISTORY OF THE ORGANISATION
HISTORY BEHIND EUREKA FORBES Eureka Forbes Limited (EFL) is the leader in domestic and industrial water purification multi-product, multi-channel corporation part of the Shapoorji Pallonji Group. About 7,000 employees are working in the company. EFL is the Leader in domestic and industrial Water Purification Systems, Vacuum Cleaners, and Air Purifiers & Security Solutions. EFL is the Pioneers in Direct selling - Asia's Largest Direct Sales Organization. About 6,000 strong Direct Sales Force touches 1.50 million Indian homes, adding 1,500 customers daily. Customer family now numbers over 6 million – enduring relationships as friends for life. The Operations of this company is going on 125 cities & 400 towns across India. EFL also expanded channels that reach out to customers to include. This company has Over 5,000 strong Dealer Sales Network in India .and also have 58 distributors for strong Institutional Sales Network. This company has Security Systems Division that is one of India's largest system integrators. EFL have a strong service network that backs up sales efforts. About 4500 company trained technicians who make 20,000 kitchen visits daily. That is supported by Call Centers, Customer Care Representatives & Mobile Service Vans. Eureka Forbes - A Business Super brand .this company‟s Aqua guard & Euro clean - Chosen Super brands. This company is ranked among India's Most Admired Consumer Durable Companies. This company awarded for The Best Employers (4 times in a row) .This Company is the Winner of 'Most Admired Knowledge Enterprise' MAKEAsia Awards, Winner of awards on Customer Responsiveness, Winner of Water Digest awards. EFL Vision is to make a happy, healthy, and safe & pollution free environment on truest and lasting relationship with customers.

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Eureka Forbes Limited’s Mission & Vision:

Mission
To build sustainable relationships with customers as their "Friend for Life" by satisfying their evolving health, hygiene, safety and lifestyle through. Our people whose entrepreneurial spirit and ambition is fuelled by the culture of pride, learning, earning and fun. Our Product and Services that reflect innovation become quality benchmarks and provide real value - for - money. Our Policies and Practices that is fair, transparent and constantly improved to optimize stakeholder satisfaction and achieve market leadership

Vision
A Happy, Healthy, Safe and Pollution free environment built on trust and lasting relationships with customers.

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COMPANY PROFILE

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CHAPTER 3 COMPANY PROFILE

Eureka Forbes (EFL) has come a long way. From being famous (or infamous) for pioneering the direct selling in India to being rated as the best employer and top it all a case study at Harvard. Eureka Forbes is a joint venture between Forbes (India) and Electrolux from Sweden. Eureka Forbes first launched the Vacuum cleaners in India. EFL initially faced lot of problem in marketing its vacuum cleaners. Targeted at the upper middle class families, these products were never considered a priority. Since most of the middle class families could afford a maid, it was a fight between Maid and the Machine. Eureka Forbes - A Business Super brand .this company‟s Aqua guard & Euro clean - Chosen Super brands. This company is ranked among India's Most Admired Consumer Durable Companies. This company awarded for The Best Employers (4 times in a row) .This Company is the Winner of 'Most Admired Knowledge Enterprise' MAKEAsia Awards, Winner of awards on Customer Responsiveness, Winner of Water Digest awards. EFL Vision is to make a happy, healthy, and safe & pollution free environment on truest and lasting relationship with customers. EFL‟s mission is To Build sustainable relationship with customers as their „Friend for life‟ by satisfying their evolving health, hygiene and life style need through.

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Hierarchical Structure:
Vice – President

General Manager

Regional Sales Manager

Area Sales Manager

Senior Divisional Sales Manager

Divisional Sales Manager

Deputy Divisional Sales Manager

Branch Manager

Head of CRC

Team Leader

Group Customer Specialist

Customer Specialist

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The organizational structure

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STRATEGIES ADOPTED THAT HAVE MADE EUREKA FORBES A POPULAR BRAND NAME

1. Direct Marketing EFL was the first to introduce water purifiers and vacuum systems into the Indian homes. As these products were unknown to the Indian market, therefore advertising campaigns were impossible. Hence EFL chose the less traveled direct selling route. Direct method is a method that aims at establishing a direct connection with the potential customers and cultivates a lasting relationship. EFL was the first company to venture into the same and now is Asia‟s largest direct selling organization.

2. Advertisement Campaigns Many companies, while selling a new product in the market find that sales cannot be sustained without constant advertising. Sales charts always show a meteoric rise postadvertising burst. Eureka Forbes often runs advertisements on different channels over the year to sustain the brand awareness and ensure that the consumers are exposed to the brand.

3. Dedicated Service Help-line Eureka Forbes has over 1000 service centers in all major cities in India with more than 5000 trained service technicians. Theirs is the largest After Sales net work in India. They have a dedicated 24 hours single number access help line in 8 major cities.

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4. Marketing Mix

PRODUCT a) Easily available nation-wide. b) Easy to handle. c) Multiple products launched for each product type.

PRICE a) Product price range divided into four segments to target different audiences. b) Low cost of maintenance and consumable. c) Best prices offered when compared to other competitors.

PROMOTION a) Active subscription immediately. b) Right time installation of products. c) Properly repair services against paid AMC‟s. d) Service during contract period.

PLACE a) Urban educated India that cares for their family. b) Areas prone to diseases. c) Strategically chosen locations for catching the eye of potential

consumers. d) Various stalls near market places and food bazaars.

Figure 1: Marketing Mix

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PRODUCTS OFFERED BY EUREKA FORBES LIMITED

1. WATER PURIFIERS

2. VACCUM CLEANERS

3. AIR PURIFIERS

4. SECURITY SOLUTIONS

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WATER PURIFIERS

MARKET SCENARIO Clear drinking water is a huge problem in India. The water that comes through the tap is often salty, and is riddled with bacteria. So, selling water purifiers is a big market in India. In fact, estimates show that it might be worth up to Rs. 710 crore. Companies are advertising heavily on television to grab a piece of the market preying on the fears of the general public. People often do not comprise when it comes to the safety of their family and so are willing to spend months wage on buying a water purifier. Buying a water purifier can be a nightmare as there are so many to choose from with different features. Some of them include:
       

Aquaguard Kent Pristine Philips water purifier Aero Videocon water purifier KenStar Pureit

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VACUUM CLEANERS

SELLING STRATEGY ADOPTED: 1. Because of the low interest and since the product benefits needs to be demonstrated to the customers, conventional distribution was not viable. Hence EFL chose the less traveled Direct Selling route. 2. Professional Sales Approach strategy was encoporated by Eureka Forbes Limited. The Eureka Forbes sales man was called Eurochamp. It was a tough job for these salesmen who had to go through the "cold calls" to get a sale. At one point of time, because of the aggressive nature of these sales persons, people became scared even to listen to these sales persons. Now this aggression has mellowed down to a more professional sales approach. 3. Eureka Forbes has also tried to position their sales persons as problem solvers rather than sales officers. The campaigns tried to build the image of a Euro champ as a Friend rather than one that is after the money. MARKET SCENARIO: Indian Vacuum Cleaner Market is worth around 120 crores. Eureka Forbes is a market leader in vacuum cleaners with an 85 per cent share of the 2.5 lakh vacuum cleaners sold annually in India.

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Figure 2: Market Share of Eureka Forbes‟s Vacuum Cleaners

THE MAJOR COMPETITORS IN VACUUM CLEANER MARKET: 1. LG 2. Panasonic 3. Kenwood 4. Chinese vacuum cleaners PROBLEMS IN PRICE AND USAGE PATTERN: One of the major problems faced by both these markets is the price barrier. Vacuum cleaners were expensive when it was launched, but looking at the website of the company; the prices have come down sharply which will expand the market. Second problem with vacuum cleaner is the lack of product usage at homes. Most of the vacuum cleaners are lying idle which is bound to create a negative word of mouth. EFL may have to do a follow up on helping customers to use the product regularly.

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FACTS THAT MAKE EUREKA FORBES VACUUM CLEANERSUNIQUE IN THE MARKET THE 4 CRITERIA FACTOR: If we take a look at the analyzed details in the above sections, it is evident that Eureka Forbes has turned the „disturbing & annoying‟ image of sales persons in to a „friend to the family‟. Not many companies were able to accomplish this. So what makes them so strong in their target achievement? This is where our analysis of their Selling Strategy starts. When we look at their perspectives, majority of their sales have been through Direct Selling, and they are still continuing with the practice. In terms of Strategy, the following four criterions define their success in the market:

   

USER POSITIONING BENEFIT POSITIONING VALUE FOR MONEY USER FRIENDLY SALES PERSONS

USER POSITOINING: The way Eureka Forbes has pitched in to the market with its wide range of products has allowed the users to select from the extensive choices available according to their preferences. For example, the various models in vacuum cleaners are as follows:

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EUROCLEAN:  TURBO  POWERWASH  WET & DRY  ACE NEW  ULTIMA

FORBES:  EASY CLEAN  EASY CLEAN LITE  TRENDY NANO  SWIFT  TRENDY STEEL

BENEFIT POSITIONING: As seen in the above segment, Eureka Forbes has introduced a new product with added benefits at regular intervals in the market. Each product comes with a specific benefit, apart from the normal features (Benefits are those special additions whereas features are the normal aspects present). For e.g.: FORBES products are for Daily cleaning purpose and EUROCLEAN are for deep cleaning purpose. In particular, if we take EURO CLEAN WET & DRY, the multi-purpose Euro clean WD not only removes dirt and dust from floors, carpets, famishing and other inaccessible areas, but also wet cleans your floors & tiles and takes care of wet spills, giving you a clean and healthy home. In the case of FORBES EASY CLEAN it is a Multipurpose Daily Use Vacuum Cleaner, Suction & Blower Functions, and Shoulder Strap for easy usage and Hand Held. Multipurpose Daily Use Vacuum Cleaner, Suction & Blower Functions, Shoulder Strap

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were designed for easy usage and in a convenient hand held position. In such ways, each product is positioned with its exclusive benefits in the minds of the customers.

VALUE FOR MONEY: The price factor for Eureka Forbes was a big obstacle at the initial time when it was targeted mainly towards the middle and upper middle class segment. But as time progressed, they have come up with a varying range of products priced according to the features and added benefits. Value for Money thus has always been a major factor for the long term sustainability of the Eureka Forbes Vacuum Cleaners in the market.

USER FRIENDLY SALES PERSONS: Success to Eureka Forbes became a case study at Harvard Business School. The driving factor behind this was the excellent workforce of Sales persons Eureka Forbes has developed and maintained over a long period. The key high lights are as follows: The sales persons were recruited with efficient analysis and effective training was instilled to them. Training included how to cope up with the stress in the Customer meetings, since door to door selling invited the annoying response from the customers. Various approaching Strategies were taught to them with the aid of case studies and Role play activities. With all these training & development activities, sales persons from Eureka Forbes were not just sales force trying to sell product to customers, but became friends to their families providing suggestions and solutions.

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AIR PURIFIERS

In addition to the Water Purifiers and the Vacuum Cleaners, Eureka Forbes also provides Comprehensive Air Purification System to clean indoor air of all common pollutants, creating a clean, healthy & pleasant environment. Eureka Forbes offers its products through dealers and institutional sales network.

SECURITY SOLUTIONS

Eurovigil from Eureka Forbes provides complete safety for living & business. Solutions customized for homes, institutions & corporates, each solution from Eurovigil is tailor-made for unique requirement. An array of products - intrusion detection, access control, surveillance & fire detection, the Eurovigil solutions are state-of-the-art security solutions providing total safety. The strategic tie-ups with world's leading companies in security solutions like Notifier, Honeywell, Bosch and many others make the Eurovigil systems the ideal solution for homes and business. Security Solutions from Eureka Forbes include 24-hour door watch systems that enable people to see and speak to their visitors, before granting them access to their your homes.

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OBJECTIVES

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CHAPTER 4 OBJECTIVES OF THE STUDY
The objective of the project was to gather customer perception from Eureka Forbes vacuum cleaner users. The purpose was also to know about view of the company the customers possess. Along with the collection of data from the Eureka Forbes consumers, the project‟s objective was also to accumulate data of Eureka Forbes competitors. The study has helped in understanding the consumer perception and customer satisfaction of Eureka Forbes vacuum cleaner users and its competitors.

Objectives:
1. To study consumer perception of Eureka Forbes vacuum cleaner users competitors of Eureka Forbes on the basis of following criterion: Cost, discounts, availability, size, weight, quality, handling, Door to door service, life of the product, annual maintenance contract and query redressed. 2. To study the Eureka Forbes offerings along with its competitors. 3. To study the satisfaction level of consumer of Eureka Forbes. 4. To gather the problems faced by the Eureka Forbes consumers. 5. To study the sales strategy adopted by Eureka Forbes.

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HYPOTHESIS

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CHAPTER 5 HYPOTHESIS
1. Marketing and Sales strategy of Eureka Forbes is very effective with regards to door to door service. 2. The company is known for strong goodwill, trustful reliability and best service provider amongst the customers. 3. The consumers of Eureka Forbes are satisfied with the product in terms of life of the product. 4. The customers prefer Eureka Forbes products for the service provided by the company. 5. Vacuum cleaners provided by the competitors do not satisfy expectations of the consumers in terms of life of the product.

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LIMITATIONS

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CHAPTER 6 LIMITATIONS OF STUDY
LIMITATIONS No project is ideal. In reality when I carried out this field survey for Aquaguard, I came across different problems. The problem faced were the limitation of the project, they are as follows.  Sample size:The sample size for my project totals to 50 customers. I had made a survey of 25 consumers of Eureka Forbes and 25 customers who were not using EF vacuum cleaners. Data interpretation and conclusions based on this sample size would portray exact situation of the actual scenario. 

Respondent were not interested:According to the requirement of the survey I had to fill in the questionnaire from customers. Some customers showed a casual attitude and were not really involved in the feedback.



Psychological limitation:During the process of interview some of the respondent were suffering from Leniency effect, and a feeling “why me” attitude.

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RESEARCH METHODOLOGY

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CHAPTER 7 RESEARCH METHODOLOGY Research Process:

Preliminary Study

↓
Discussion with faculty and company guide

↓
Survey, objectives and questionnaire design

↓
Data Collection

↓
Data Analysis

↓
Presentation of Findings & Recommendation

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TYPE OF RESEARCH
I have used descriptive research design for the project. The research is descriptive as it involves statistical calculation and analysis. This type of design is used when the researcher is interested in knowing the characteristic of certain groups. Other cases, where it is used are when the researcher is interested in knowing the proportion of people in a given population who have behaved in a particular manner, making projections of certain thing or determining the relationship between two or more variables. Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied.

1. Types of Research 2. Data source

Descriptive Research Primary Data & Secondary Data

3. Data collection Techniques

Questionnaire Method and Personal Interview.

4. Contact Method 5. Sampling Procedure 6. Sample Size 7. Statistical Tools

Personal Interview Convenient Sampling 50 Mode and percentage

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DATA ANALYSIS AN D INTERPRETATION

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CHAPTER 8 DATA ANALYSIS AND INTERPRETATION

The rating has given on the following basis 1 (very poor), 2 (poor), 3 (Satisfactory), 4 (excellent), 5 (Outstanding). The study was conducted through Questionnaire and the analysis is as follows:

ANALYSIS OF EUREKA FORBES VACUUM CLEANERS:

1. Customer awareness:
The research was conducted to find out whether people are aware about the Eureka Forbes vacuum cleaners. From the above data we find that out of the 50 sample size, 41 vacuum cleaner users are aware of the Eureka Forbes vacuum cleaners. Only 9 users were not aware of the latter.18 percent vacuum cleaner users were not aware of the Eureka Forbes.

Table 8.1 Customer awareness frequency table Opinion Yes No Frequency 41 9 Percentage 82 18

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Sources of Awareness:
As per the survey conducted out of the sample size that were aware of the Eureka Forbes vacuum cleaners 46.34 percent people became aware through the direct sales executives.31.70 percent people became aware through advertisements. Shopping malls were the awareness point for 14.63 percent people; whereas 7.31 percent people became aware through friends. Table 8.2 Sources of awareness frequency table Sources Direct Sales Executive Advertisement Shopping Mall Friends Frequency 19 13 6 3 Percentage 46.34 31.70 14.63 7.31

2. Consumer perception:
Rating for the „Cost‟ factor is given on the average basis i.e. 64 percent. By enlarge people are not dissatisfied with the cost of the product. The „discount‟ factor rated here at average rating i.e.48 percent.32 percent and 16 percent people find discounts poor and very poor. The „availability‟ and the „weight‟ of the product are excellent and outstanding as shown in the table. People have admired its availability and the weight. „Quality‟ of the product is rated at 44 percent for outstanding ranking. „Door to door‟ service is again shown the result with 52 percent people raking it as outstanding. „Life of the product‟ is rated excellent by 68 percent people.‟ Annual maintenance contract‟ seems a problem area since 40 percent and 36 percent people view it as average and poor. „Query redressed‟ is a criterion is where people have a mixed opinion- 36 percent people find it on average basis. 36 percent people find it excellent and 32 percent people have ranked it as outstanding.

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Table 8.3 Consumer Perception frequency table Criterion Very Poor F Cost Discounts Availability Size Weight Quality Handling D to D Life AMC Query Red. 0 4 0 0 0 0 0 1 0 3 1 P 0 16 0 0 0 0 0 4 0 12 4 F 3 8 0 0 4 0 1 2 2 6 4 Poor P 12 32 0 0 16 0 4 8 8 36 16 Average F 16 12 4 13 6 7 5 4 4 10 6 P 64 48 16 52 24 28 20 16 16 40 36 Excellent F 3 1 13 4 6 7 9 5 17 4 6 P 12 4 52 16 36 28 36 20 68 16 36 Outstanding F 3 0 8 8 9 11 10 13 2 2 8 P 12 0 32 32 36 44 40 52 8 8 32

Suggestions by customers:
1. Price of Eureka Forbes product should be reduced. 2. The price of the product should be decided keeping in mind the competitor‟s market. 3. Annual maintenance contract is to be provided by the company itself. 4. The rate of annual maintenance contract should be reasonable. 5. Door to door service should be made more regular and effective. 6. Awareness campaigns could be conducted to advertise the product. 7. Introduction of handy vacuum cleaners for household uses with powerful motors.

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3. Annual maintenance contract :
This data was collected to see whether the customers were taking benefits of the AMC. Around 60 percent of customers of Eureka Forbes had their vacuum cleaners in annual maintenance contract. Only 16 percent people had their vacuum cleaners out of contract. The figures in the competitor‟s side show an obvious dislike for the contract services. As they find the product not long lasting they prefer not to go for annual maintenance contract. I found only a single person who had registered AMC for his product. Table 8.4 Annual maintenance contract frequency table Status Eureka Forbes Frequency Percentage In warranty Out of warranty In contract Out of contract 5 1 15 4 20 4 60 16 Competitors Frequency 8 15 1 1 Percentage 32 60 4 4

Duration of product
This data was also essential to see the number of years the product is been used by the customers. There were total 84 percent Eureka Forbes customers who were using the product from 1 year to 8 years. There were only three customers who had brought the vacuum cleaner recently. A single person was using the product for more than eight years. In the competitors‟ section 32 percent people had purchased vacuum cleaner recently. 60 percent people were using the product since 1-4 years. There was only a single customer who was using the product for 4-8 years and more than 8 years, respectively.

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Table 8.5 Duration of product frequency table Duration Eureka Forbes Frequency Percentage 0-1 year 1-4 years 4-8 years More than 8 years 3 12 9 1 12 48 36 4 Competitors Frequency 8 15 1 1 Percentage 32 60 4 4

4. Consumer Dissatisfaction Factor:
It was conducted to look for dissatisfaction issues with the customers. In case of Eureka Forbes customers 32 percent people are dissatisfied with the high cost factor; while 52 percent almost more than half of them do not find buy back rates too convincing. Only 16 percent people are not in favor of AMC rates. The same scenario is repeated in the competitors section. 44 percent people are not satisfied about the buyback rates. High cost seems a problem of only 20percent people. 36 percent people are dissatisfied with AMC charges. Table 8.6 Consumer dissatisfaction factor frequency table Feature Eureka Forbes Frequency Percentage AMC Rate Buy back rate High cost 4 13 8 16 52 32 Competitors Frequency 9 11 5 Percentage 36 44 20

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5. Consumer Satisfaction:
Consumer satisfaction being one of the objectives of the project I have specified the percentage calculation. Out of 25 existing Eureka Forbes customers 96 percent people have given their consent to recommend EF vacuum cleaners to others. Only a single person who was not satisfied with EF vacuum cleaner has not suggested the same to others. 44 percent non-Eureka Forbes users have given their consent to recommend EF vacuum cleaners to others. This may be due to high dissatisfaction level that they posses. 56 percent people have not suggested the same to others. Table 8.7 Consumer Satisfaction frequency table Status Eureka Forbes users Frequency Percentage Yes No 24 1 96 4 Non-Eureka Forbes users Frequency 11 14 Percentage 44 56

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Satisfaction based on the following criterion:
We also need to check out on what basis people are satisfied with the products. The interesting factor with the Eureka Forbes customers is that 52 percent people have recommended Eureka Forbes products on the basis of Service, goodwill and reliability altogether; whereas, 4 percent people have recommended it on service, 16 percent on goodwill and 24 percent on reliability. In case of competitors‟ customers 8 percent people have made recommendations on service, 16 percent on goodwill, 8 percent on reliability and 12 percent on all the features. Table 8.8 Consumer satisfaction criterion frequency table Criterion Eureka Forbes Frequency Percentage Service Goodwill Reliability All 1 4 6 13 4 16 24 52 Competitors Frequency 2 4 2 3 Percentage 8 16 8 12

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COMPETITORS’ ANALYSIS 1. Share of competitors:
This being the major objective of study, I have collected the data based on the sample size. Out of the 25 non Eureka Forbes vacuum cleaner users, we find that 44 percent people are using Chinese vacuum cleaners. This is because the Chinese vacuum cleaners are quite affordable than Eureka Forbes vacuum cleaners other companies like LG, Panasonic and Kenwood. Though the Chinese products are not long lasting, people are comfortable in purchasing those products. In comparison to Chinese products, LG and Panasonic has share of 28 percent and 24 percent, respectively. This is also due to relatively lower prices than the Eureka Forbes vacuum cleaners. I have found only a single customer using Kenwood vacuum cleaner. Table 8.9 Competitors’ share frequency table Company LG Panasonic Kenwood Any other (Chinese) Frequency 7 6 1 11 Percentage 28 24 4 44

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2. Consumer Perception
„Cost‟ factor here is rated to be excellent by 36 percent people and average by 48 percent people. The „discounts‟ available to them are better than those provided by Eureka Forbes. „Availability‟ of the product is rated excellent by 56 percent people. The products are readily available to the customers. The „size‟ factor also works for the nonEureka Forbes customers, as 44 percent and 48 percent people have rated it as average and excellent. The „weight‟ of the product is satisfying on average basis for 40 percent people. 32 percent people find them excellent in weight. The „quality‟ of the product is marked average by 52 percent people. Even handling is rated on average basis by 52 percent people. „Door to door service‟ being the unique feature of Eureka Forbes, has gained outstanding ranking by 52 percent people in previous analysis. Here, 40 percent and 32 percent people find door to door services poor and very poor, respectively. Many of the Eureka Forbes competitors do not provide door to door service. ‟Life of the product‟ is rated as average by 60 percent people. ‟Annual Maintenance Contract‟ is again rated to be average by 70 percent people. „Query redressed‟ feature is also rated average by 64 percent people and very poor by 36 percent people.

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Table 8.10 Consumer Perception frequency table Criterion Very Poor F Cost Discounts Availability Size Weight Quality Handling D to D Life AMC Query Red. 0 0 0 0 0 0 1 8 0 1 0 P 0 0 0 0 0 0 4 32 0 4 0 F 2 4 1 1 5 0 1 10 1 5 9 Poor P 8 16 4 4 20 0 4 40 4 20 36 Average F 12 12 8 11 10 13 13 4 15 18 16 P 48 48 32 44 40 52 52 16 60 72 64 Excellent F 9 9 14 12 8 9 7 3 7 1 0 P 36 36 56 48 32 36 28 12 28 1 0 Outstanding F 2 0 2 1 2 3 3 0 2 0 0 P 8 0 8 4 8 12 12 0 8 0 0

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RECOMMENDATIONS

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CHAPTER 9 RECOMMENDATIONS
1. The price of the product should be decided keeping in mind the competitor‟s market, as the prices of competitors begin from rs.1500/2. If the company is able to provide annual maintenance contract by itself it would benefit the customers highly. 3. The rate of annual maintenance contract should be reasonable, as at present the rate of AMC varies from rs.1500 -1000. 4. Door to door service should be made more regular and effective. 5. Awareness campaigns like hoardings and could be conducted to advertise the product. 6. Conventional communication channel television should be used to advertise the products. 7. Introduction of handy vacuum cleaners for household uses with powerful motors.

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CONCLUSION

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CHAPTER 10 CONCLUSION
Any kind of business is heavily dependent the offerings made by the organization, customer perception, customer satisfaction, referral purchases, word of mouth advertisement and also the television advertisements which are by far the most influential factor in a person‟s decision of the brand. It applies to the case of vacuum cleaner product too. The company providing have to decide on the quality product and services that will ensure a customer loyalty and prevent a switch as most vacuum cleaners offer the same features. The analysis of the project shows the following conclusion: Consumer awareness: The major size of the population is aware about the Eureka Forbes vacuum cleaners. This shows that Eureka Forbes is strong in its marketing endeavors. This is made possible through the direct sales force and advertising campaigns by Eureka Forbes. Direct sales source has major contribution in conveying the offerings by Eureka Forbes. Advertisements are also effective in creating awareness among the potential customers. Awareness though friends brings the „word of mouth‟ channel into the picture which has an important role to play. (Refer tables 8.1, 8.2) Annual maintenance contract: From available data we come to know that many of the products of competitors are not long lasting. It is due to inferior quality products. It implies that AMC holds no importance to them as the product‟s life is short. Eureka Forbes provides quality products to the customers and this implies that people are interested in the AMC due to longer life of the product. (Refer tables 8.4 and 8.5)

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Consumer perception, satisfaction and comparison: The „discount‟ factor rated here at average rating i.e.48 percent.32 percent and 16 percent people find discounts poor and very poor. This is due to an experience of direct sales executives. At direct channel they are to charge the product without any discount. It is because the company does not provide annual maintenance contract service to its customers. AMC shows average results because Eureka Forbes has outsourced this job to different organizations, but customers want company to take the responsibility of AMC. In case of query handling the most EF customers have given excellent and outstanding remarks. This is not the case with competitors‟ customers. They have received average service in query handling Most of the consumers have rated outstanding remarks for quality, handling and door to door service. In contrast to the remarks of EF customers, very few competitors‟ customers have rated outstanding remarks to their respective companies. This shows a high degree of dissatisfaction from the customers of our competitors. Almost all of the existing customers are satisfied with the reliability, service and goodwill of the company. This shows a great amount of satisfaction from the customers of Eureka Forbes. (Refer tables 8.3, 8.6, 8.7, 8.8 and 8.10) Competitors’ market share: The percentage of purchase in customers (between 0-4 years) could be due to highly available low cost Chinese products. The minor shift in the choice of customers from Eureka Forbes vacuum cleaners to the other companies is due to the cost factor. Customers find the vacuum cleaners of Eureka Forbes, heavily priced in comparison to its competitors. We should understand that the competitors of Eureka Forbes provide the products at relatively lower prices. It has been a crucial factor in consumer shift. (Refer tables 8.5 and 8.9)

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The company‟s strategy of direct sales is excellent which allows the customers to have the first hand experience of the product at their doorsteps. This move of the company is beneficial for the customers who are busy in their schedule and hardly have time to choose a brand for themselves. It is very much essential to meet the expectations of the customers to keep the goodwill of the firm maintained in the market. First of all, the company should solve the problems of the customers regarding the service. The product and the services related to it are most important to establish place in the target market. The decisions regarding the purchase of vacuum cleaners are also influenced by the way of Word of Mouth (WOM), which the customer gets from users of vacuum cleaners of the same or the competing company. This has critical implications for both the marketer and sales people. Most of the dealers and sales people would like to move on from the last sale and look for new prospects, but the very fact that the new vacuum cleaner buyer would base his 'buy' or 'No buy' decision on the feedback from earlier customers is sometimes lost in the haste to get more sale. Finally through this project I would like to say that, Eureka Forbes offers quality and long lasting products to the customers. By enlarge it has a strong goodwill in the market. The competitors are slowly creeping into market through providing products at lower prices. The pricing strategy placed by them is „penetrating pricing‟ strategy. Though the products are not long lasting, customers are willing to buy on the low-price basis. There have been no equal efforts made by the competitors of Eureka Forbes in „Door to Door‟ service section. Eureka Forbes rules as the pioneer and top seed in this endeavor. Overall the customers of Eureka Forbes are satisfied with the vacuum cleaners. This is the basic perception of customers of Eureka Forbes collected through the survey. Eureka Forbes, being top company in vacuum cleaner section can retain its position by its continual efforts in sales and quality service.

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BIBLIOGRAPHY

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CHAPTER 11 BIBLIOGRAPHY Books:
1) Marketing Management by Phillip Kotler

2) Marketing management by M.S. Ram Swami

3) Research Methodology (second edition) by C.R. Kothari

Websites:

1) http://www.eurekaforbes.com

2) http://www.eurekaforbes.com/news/archive.aspx 3) http://www.google.com

4) http://www.scribd.com/doc/29017131/Eureka-Forbes-Project-Report-1

5) http://www.forbeslux.com/eureka_forbes_ltd.php

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ANNEXURE

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Customer perception of Eureka Forbes vacuum cleaners and its competitors
Name of the Customer: _____________________________________________________ Address:

________________________________________________________________ ___________________________ Cell No. ____________________

Contact No. (Home):

Dear Customer, as a trainee in Eureka Forbes I want to thank you for giving us the opportunity to serve you. Please help us to serve you better by taking a couple of minutes to tell us about the benefits of the product that you have received so far and the perception about the same. We appreciate your business and want to make sure we meet your expectations. We request for your prompt response.

1.

Are you aware of Eureka Forbes’ Vacuum cleaners? Yes No

If yes, then through which of the following sources you became aware? Direct Sales Executive 2. Do you use EF vacuum cleaner? Yes No Shopping mall Advertisement Friends

If yes, then rate the vacuum cleaner on the following criterion: Very Poor 1 Cost Discounts Availability Size Weight Quality Handling Door to door service Life of the product Annual Maintenance Contract Query Redressed Poor 2 Average 3 Excellent 4 Outstanding 5

Attributes

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If no, then which of the following vacuum cleaners do you use? LG Panasonic Very Poor 1 Cost Discounts Availability Size Weight Quality Handling Door to door service Life of the product Annual Maintenance Contract Query Redressed Kenwood Poor 2 Average 3 Any other Excellent 4 Outstanding 5

Attributes

3.

Since how long are you using the product? 0-1 year 1-4 years 4-8 years More than 8 years

4.

What is the status of your product? In warranty In contract Out of warranty Out of contract

5.

What do you dislike about the product? Rate of AMC Buy back rate High cost

6.

Would you recommend Eureka Forbes vacuum cleaners to others? Yes No

7.

Why would you suggest? Service  Goodwill Reliability All

Any Suggestions: ___________________________________________________________________________

Thank you for your feedback. We sincerely appreciate your honest opinion and will take your input into consideration while providing products and services in the future.

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