Jaypee Business School A constituent of Jaypee Institute of Information Technology University A-10, Sector 62, Noida (UP) India

201 307 www.jbs.ac.in

MARKET STRUCTURE OF GODREJ

Corporate Internship Report Internship Report submitted as a partial requirement for the award of the two year

Master of Business Administration Program

MBA 2009-11

Suyash Mishra
Telephone: +919999910404 E-mail:suyashmishra13@gmail.com

Submitted by

Godrej & Boyce Mfg.Co.Ltd Corporate Internship Supervisor Name: Manish Agarwal Contact details:+91 9839200218 Mailing Address:agarwal@godrej.com

JBS-Faculty Supervisor: S. Suresh

Start Date for Internship: 1-05- 2010 End Date for Internship: 26-06-2010 Report Date: 01-07-2010

Self Certification by the Intern

I hereby certify that I, Suyash Mishra have successfully completed my internship with Godrej & Boyce Manufacturing Co. Ltd in the month of May2010 from 1-may-2010 to 26-june-2010 This is also to certify that this report is an original product and no unfair means like copying etc have been used for its completion.

Name: Suyash Mishra Signature: Date:01-07-2010

Certificate from the Corporate Internship Providing Organization

This is to certify that Mr. Suyash Mishra has successfully completed his internship with us in the month of June from (1-May-2010 to 26-June -2010). We wish him/her all the best for all his future endeavors.

Name of the Supervisor: Signature: Date:

ACKNOWLEDGEMENT
First and foremost, I Thank the Almighty God for Sustaining the Enthusiasm with Which I Plunged into this Endeavor. I avail this Opportunity to Express My Profound Sense of Sincere and Deep Gratitude to Many People who are Responsible for the Knowledge and Experience I have Gain during the Project Work. I have great pleasure in expressing my deep sense of gratitude to guide Mr Manish Agarwal for his valuable and prompt guidance without which this project would not have been a successful one. I extend my overwhelming gratitude to Mr. Rajeev Dube for his valuable guidance and meticulous supervision during the preparation of this Project Report. My hearty thanks to all the respondents who have helped me to bring out the project in a successful manner. Last but not the least I extend my gratitude towards my parents, faculties and friends who extended their whole hearted support towards the successful completion of this Project Work. SUYASHMISHRA Jaypee Business School MBA 2009-11

CONTENT

TITLE

PAGE NO

1. Executive Summary 2. Objective 3. Company Profile

7 8 9-17 18-32

4. Industrial Analysis 5. Financial Analysis 6. Research Analysis 7. Conclusion 72 8. Key Learning 9. Annexure 73-77 78 33-48 49-70 71

10. References

EXECUTIVE SUMMARY

The SIP titled To study the market structure of Godrej. The main objective of the study was to know how the of Godrej sale perceive in Kanpur City. Dealers are satisfied with the services provided by Godrej and also to identify the factors affecting the preferences of the Dealers. The other objective of this report is to know the needs and wants, buying behavior of the customers toward their Home Appliances. As a part of my study I covered most of the Area in Kanpur like lal bangla birhana road, mall road, harsh nagar, ashok nagar, kidwai nagar, barra. Mr. Manish Agarwal instructed me to cover the market of kanpur and look into the share of godrej and all what details I can gather from the dealers about their expectations from the company. . Details included information like how is the service of godrej , what improvisation do they expect in future products , how is the support from the company and the sales executives and also to get information about all what is being provided by the competitors in terms of service ,products , marketing and also to point out those areas in which godrej is lagging behind. To cover up all these points I was guided by my industrial mentor to prepare a 19 questions questionnaire to get the best of information from the dealers . On basis of the above finding necessary steps will be taken to provide better support to the dealers and ultimate consumer.

OBJECTIVE
It Is a Thing of massive gratification for me to prsent This Summer Training Project Report on the topic To study the Market structure of Godrej in kanpur Home Appliance Product is on the rise and recent technological innovations have dramatically enhanced the capabilities of the same. Leveraging the power of these new capabilities, various business sectors are working together to offer a wide array of services. Each sector is looking for the next big step yet we are still learning about people's information and Daily needs. This project attempts to identify and define areas related to Dealer behavior regarding new product purchase/sale . It also attempts to develop at least first approach to these areas, to think through policies, principles, and practices to accomplish the new tasks and to satisfy the Dealers needs. By this practical training I am able to equip the manager with the understanding, the thinking, the knowledge and the skills for today and also for tomorrows market exigency. Initially I was just having the bookish knowledge about all Marketing policies, practices and functions, but after joining this organization, I got most of the practical knowledge. I have come to know, what actually happens in the organizations. Though it is not possible to have the information of all the spheres in market, in such a very short period, but I tried to get more and more about all functions and practices applied in practical working, I have particularly stresses on. This project report has been painstakingly and thoroughly prepared to cover extensively various facets both micro as well as macro . Its coverage is broad and up to date and it is balanced in terms of concept and application. Since customers are the most important asset of any organization there is increased emphasis on the need for understanding people in a manner to satisfy them through quality of services. The language of the presentation is highly communicative so that it becomes interesting and comprehensible.

CHAPTER 1

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COMPANY PROFILE Godrej started in 1897 as a locks manufacturing company, the Godrej Group is today one of the most accomplished and diversified business houses in India. Godrej's success has been driven by the company's commitment to delivering innovation and excellence. Through the consistent application of this commitment and a century of ethical business conduct, Godrej has earned an unparalleled reputation for trust and reliability. In 1930, Godrej became the first company in the world to develop the technology to manufacture soap with vegetable oils; that spirit of innovation has continued throughout the organization's history. Today Godrej is delivering consumers exciting innovations across a spectrum of businesses. The company's pursuit of excellence is equally well established and enduring. In the 1944 Mumbai docks blast, Godrej safes were the only security equipment whose contents company to successfully expand into a number of businesses. Today Godrej is a leading manufacturer of goods and provider of services in a multitude of categories: home appliances were unharmed; an equal level of product quality continues to be expected from every product bearing the Godrej brand name. Godrej management understands that the company's greatest asset is the trust and faith that consumers have reposed in it, and recognizes that the company must continue to earn this trust. This translates to the organization delivering outstanding quality and value in everything it does. Godrej's ethical and visionary practices have allowed the, consumer durables, consumer products, industrial products, and agricultural products to name a few. A recent estimate suggested that 350 million people across India use Godrej products. The group has more recently entered the real estate and information technology sectors, and management views these as avenues for enormous growth. The Godrej Group stands in a strong position today. With annual sales in excess of $1 billion, a workforce of approximately 18,000, and a strong diversified portfolio, Godrej has proven its ability to deliver strong financial performance.

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The Godrej Group The Godrej Group has interests in a wide range of businesses. Apart from GCPL, the major Companies In the Group include: Godrej & Boyce Manufacturing Co. Ltd. a leading manufacturer of office and home Equipment including appliances, furniture, locks, security equipment, storage solutions and Industrial equipment Godrej Industries Ltd. a leading manufacturer of oleo chemicals that are used in more than two dozen industries. The Company also has a presence in the foods business. Godrej Agro vet Ltd. the market leader in animal feeds and innovative agri products in India. The Company also has a presence in the branded poultry, rural retailing and oil palm sectors. Godrej International Ltd. engaged in international trading. Godrej Sara Lee Ltd. a joint venture with Sara Lee Corporation, USA and a leading Manufacturer of household insecticides. Geometric Ltd. a specialist in Product Lifecycle management software solutions for the Mechanical design, manufacture and industrial markets. Godrej Properties Ltd. - a leading developer of residential and commercial premises. Godrej Hershey markets juices, fruit drinks, soya milk based drinks, edible oil and Packaged tea. In FY 2006, GBFL has acquired 100 percent stake in Nutrine Confectionery Company Pvt. Ltd. (Nutrine). In April 2007, the company entered into a joint venture with the Hershey Company, North Americas leading chocolate and confectionery manufacturer, to Manufacture and distribute confectionery, snacks and beverages across India. Being part of the Godrej Group allows Godrej Consumer Products to draw upon the rich heritage and Experience of the Group. In line with GCPLs vision and long-term business objectives, all corporate Decisions are independently 13

taken by the Companys highly respected Board in conjunction with Competent management teams, keeping in view the best interest of all its stakeholders.

Godrej consumer Products Ltd.-A Historical Perspective The Consumer Products business of the over 80 year-old erstwhile Godrej Soaps Ltd. (GSL) was Demerged into the newly incepted Godrej Consumer Products on April 2001, pursuant to a scheme of demerger. As envisaged in the scheme of demerger, the name of Godrej Soaps Ltd. (GSL) was also changed to Godrej Industries Ltd. (GIL). GIL retained the businesses of industrial chemicals, medical diagnostics and estate operations. With effect from April 1, 2001 the capital of GSL was reorganized from shares of Rs.10/each to shares of Rs. 6/- each in GIL and Rs. 4/- each in GCPL. Each equity shareholder of GSL was issued and allotted one share of the face value of Rs. 4/- in GCPL for every one share of the face value of Rs.10/- held in GSL. The record date for the above issue was May 3, 2001. The Board of Directors at the Annual General Meeting on July 2006 subsequently approved the subdivision of equity shares of the Company from shares of the face value of Rs 4 each to four shares of the face value of Re 1 each. GCPL was thus created to be a focused FMCG Company following best in class norms for Corporate Governance and business practices to enable shareholders and the investing public to fully understand and appreciate its performance in the FMCG space. While Godrej Consumer Products Ltd. was established in its current form in 2001, with a single minded FMCG focus, the Company enjoys 80 years of heritage in the manufacture of soaps and personal care products. GCPL is 14

acknowledged as an innovator across the soap and personal care segments and has demonstrated consistent superior growth since inception. Today, GCPL has five manufacturing facilities in India at Malanpur, Guwahati, Baddi, Katha and Sikkim. It also has strong international manufacturing and marketing presence. GCPL has also completed Accretive international acquisitions in the UK (Keyline Brands Limited) and Africa (Rapidol PtyLimited). GCPL acquired Godrej Global Mideast FZE in October 2007, to expand its presence into theGCC countries and the Middle East. In April 2008, GCPL completed the acquisition of Kinky Group(Proprietary) Ltd., in South Africa. This acquisition enables GCPL diversify into a new line of business along with expansion of its hair product

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COMPANY PROFILE Started in 1897 as a locks manufacturing company, the Godrej Group is today one of the most accomplished and diversified business houses in India. Godrej's success has been driven by the company's commitment to delivering innovation and excellence. Through the consistent application of this commitment and a century of ethical business conduct, Godrej has earned an unparalleled reputation for trust and reliability. The beginning of the Godrej Group can be traced to India's freedom struggle. Its founder, Ardershir Godrej, a lawyer by profession and a staunch nationalist, believed that India could attain freedom only by being self-reliant. In doing so, India would overcome economic degradation. On 7th May, 1897, Ardershir Godrej gave up law and took up lock making. Godrej and Boyce Mfg. Co. Ltd., was established at Lalbaug, Mumbai. This was the holding company of the Godrej Group. On 3rd March, 1932, it was incorporated with limited liability. Even though Boyce was a business partner for a limited period only, his name was retained for legal purposes. The Godrej Name displaced well established foreign brands from the Indian market. The name 'Godrej' engraved into the shiny metal of the Godrej Locks came to be known as a symbol of self reliance, trust-worthiness, assertiveness and progressiveness for a new generation of Indians. Godrej & Boyce Mfg. Co. Ltd. Appliance Division is in the business of manufacturing and/ or marketing Refrigerators, Washing Machines, Air Conditioners, DVD Players and Microwave Ovens. Godrej began manufacturing of refrigerators in 1958. From creating a revolution with PUF (Polyurethane Foam) in 1989 to, colored doors and vinyl draping, 100% CFC free Refrigerators, to Godrej Pentacool five side cooling in 2001 and Pentafresh Technology in 2004 and now EON range of Frost Free Refrigerators with seven wonders including revolutionary Cool Shower Technology, we have been at the forefront of product innovation. Godrej started manufacturing Washing Machines in 1996. We have a complete range of Hi Tech Semi Automatic, Fully Automatic and Front Loading Washing Machines. Our manufacturing facilities are located in Shirwal (near Pune) & Mohali (near Chandigarh).In the AC category we have over 15 models straddling Split and Window segments. Equipped with Blue Fin and I-TREC technology, Godrej ACs offer best in class cooling and efficiency.They have recently stepped into the Microwave Oven category and in a short span of time garnered a good market presence, through the range of models across solo, grill and convection segments. 16

DVD players mark our foray into the Consumer Electronics segment. With a portfolio of 4 unique models which club great aesthetics and big sound, and plans of more models they are geared to making our presence felt here as well. In addition to the above products, they also have the Godrej Smartcare Service brand to provide excellent 'After Sales Service'. With 370 service centers spread over the country, Consumers continue to rate Godrej After Sales Service the best in the industry. Apart from catering to the domestic consumers, Godrej is also a key OEM supplier in India. After the success achieved in the domestic market, Godrej is also looking at Exports in a big way and has launched its Refrigerators and Washing Machines in Sri Lanka. We also export our products to Singapore, Afghanistan, the Middle East, Egypt, Kenya,Rwanda, Bahrain and Oman. Consumer electronics milestones 1958 -1st Indian Company to manufacture Refrigerators. 1987 - Pioneered PUF (Polyurethane Foam) Technology in India. 1989 - First company to introduce PUF (Polyurethane Foam) 1989 - Introduces India's first and only 100% CFC, HCFC, HFC free refrigerators 1989 - First company to sell 10 million appliances 1994 - 1st Company in India to sell 10 million appliances. 1995 - Obtains ISO 9001 Certification 1996 - Launches Washing Machines by commissioning a new manufacturing set-up at Shirwal - State-of-art Manufacturing Plant starts operation at Mohali. 1997 - Launches Air Conditioners - Obtains ISO 14001 certification. 2000 - First Durable Company in India to launch Branded Customer Service SMARTCARE 2001 - Launches Pentacool Refrigerators with Revolutionary Five Side Cooling. 2002 - 1st and only Company in India to make its Entire Refrigerator Range Green (100%CFC, HCFC & HFC free). 2004 - Godrej Refrigerator awarded the Super Brand Status. Declared No. 1 in Businessworld Consumer Delight Survey. 2005 - Launches Microwave Ovens and DVD players. Declared the Most Preferred Brand in CNBC Awaaz Consumer Awards. 2006 - Launches Eon Refrigerators with Cool Shower Technology that are adjudged the Best Design in Consumer Durables Category at Businessworld NID Design Awards. 17

1st Company in India to introduce Steam Microwave Oven. - Declared the Most Trusted Refrigerator Brand in India by Readers Digest. 2007 - Godrej Refrigerators win Trusted Brand Gold award for the second consecutive year from Readers Digest consumer survey - Godrej Refrigerators adjudged Most Preferred Brand award for the third consecutive year as per the CNBC Consumer Awaaz Survey Appliances Product of Godrej and Boyce Mfg Co. Ltd _ Refrigerators . _ Direct cool Cold Gold Deluxe Pantacool v2 Pantacool Axis No.1 GDC 110 Edge _ Frost free EON Pantacool _ Air-Conditioners. _ Spilt AC Mirror Star Series Silver Line Series Pearl Series Ivory Series _ Window AC Navigator Series Maxi Miser Series _ Washing Machines . Fully Automatic Semi Automatic _ Microwave Ovens . Steam Convection Grill/combination Solo _ DVD Players. 18

AWARDS AND HONOURS Godrej Consumer Products Limited ranks 9th in the Great Place to Work Survey for 2008 . GCPL, the Highest Ranked Indian FMCG in Asia's Hot Growt Companies' List by Business Week . Godrej Consumer Products Ltd. has been ranked 14th in The Best Companies to Work For study. This study was jointly conducted by Business Today, Mercer and Taylor Nelson Sofres (TNS) . Godrej Consumer Products Ranks 6th in ET-Hewitt Best Employers of India survey . GCPL ranked 15th in Great Places to Work 2006 survey. The Corporate Citizen of the Year Award given by Economic Times. Flagship brands Good knight, Cinthol and Ezee selected Super brands by the Super brands Council. Godrej Sara Lee, the JV between the Godrej Group and Sara lee Corporation, USA is acknowledged the World's largest mat manufacturers and South Asia's largest manufacturers of Coils. Godrej Consumer Products Limited, adjudged as a Business Super brand by the Super Brands Council. The Return on Capital Employed and Return on Net Worth ratios of Godrej Consumer Products - the highest in corporate India. Godrej Consumer Products was awarded the "Best Managed Workforce" award given by Hewitt Associates and CNBC TV18. Godrej Consumer Products features in the Top 25 list of Great Places to Work (survey conducted by Grow Talent in association with Business World) for four years in a row. Lifetime Achievement Award for Godrej Industries from CHEMEXCIL, the Basic Chemicals Pharmaceuticals and Cosmetics Exports Promotion Council. 2006 19

Lalji Mehrotra Foundation Award for Excellence, conferred by National Society for Equal Opportunities for the Handicapped. Great Son of India Award given to Sohrab Godrej by National Convention for Protection of India's Resources and Environment. 2005 BNHS Green Governance Award for the Category - Conservation & Restoration of Habitat, awarded to Godrej & Boyce Mfg. Co. Ltd 2003 Economic Times Corporate Excellence Award for Corporate Citizenship 1994 Nisarga Mitra Award from Rotary Club of Bombay, Vikhroli for Environmental Conservation 1991 Indira Gandhi Paryavaran Puraskar awarded to Sohrabji Godrej. 1989 Institution of Economic Studies Lok Shree Award for Social Commitment towards the society. CORPORATE INFORMATION

BOARD OF DIRECTORS Mr. Adi B Godrej, Chairman Mr. Hoshedar K Press, Vice-Chairman Mr. Dalip Sehgal, Managing Director NON EXUCATVE DIRECTORS Mr. Bala V Balachandran Mr. Jamshyd N Godrej Mr. Nadir B Godrej Ms Rama Bijapurkar Dr. Omkar Goswami Mr. A Mahendran Mr. D Shivakumar Mr. Bharat Doshi Mr. Aman Mehta Registered & Corporate Office: Pirojshnagar, Eastern express highway, Vikhroli,Mumbai 400079.India Phone;022-25188010,25188020,25188030 Fax;022-25188040 20

Website:http://www.godrej.com Lucknow office: Godrej & Boyce Mfg.Co.Ltd 43-C ,newal kishore Road Near akashwani, Lucknow,UP India 0522- 2215142.

CHAPTER 2

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INDUSTRY ANALYSIS

INTRODUCTION OF INDIA AS A MARKETIndia in its 62 years of journey has seen manifold increase in the income of its denizens (Rs. 38,084 as on 2009) and this has led to paradigm shift in the purchasing behaviour of the people here. There is a discernible shift in the consumers preference in favour of higher end, technologically superior branded products, the demand being spurred by increasing consumer awareness and preference for new models. This shift is also because of the increase in manufacture of branded products and narrowing down of price between branded and non-branded goods. Competition has forced the companies to offer efficient after sales service and support and this, in turn, has swayed customer preference for branded products. Post liberalization there has been inundation of goods Transcending the borders and the customer has a wider choice; breaking the shackles of the consumers regarding limitations of choices.Indian consumer durables market used to be dominated by a few domestic players like Godrej, Allwyn, Kelvinator, and Voltas. But post-liberalization many foreign companies 22

have entered into India, dethroning the Indian players and dominating the market like Samsung, LG,Whirlpool and Haier etc The major categories in the market are tvs, refrigerators, air-conditioners and washing machines. The rural market is growing faster than the urban markets, although the penetration level in rural area is much lower. The CTV segment is expected to be the largest contributing segment to the overall growth of the industry. The rising income levels. Double-income families. Increasing consumer awareness. Are the main growth drivers of this industry. In addition to them the young nature of population and easy finance options are also fuelling the market and its dynamics. Consumers today are more indulgent in market place than their predecessors. There has been shift in the definition of needs and wants. For example a mobile phone is more of a need today then a want. Westernization has influenced the psyche of the Indian customers to a degree. This report is an attempt to reflect the changes in the consumer buying behavior in the Indian Market especially in home appliances buying and also to study which brands and which product has shown maximum growth trends.

GROWTH TRENDS A survey carried out by FICCI last year indicated that the consumer durable goods sector is all set to witness 12 percent growth this year. Spurred by a marked shift in consumers preference for high end products from premium brands floating superior technology. Clearly, the aspiration to own premium lifestyle products among consumers has gone up. The rural Indian market, which accounts for nearly 70 percent of the total number of households, witnessed a 25 percent annual growth while the urban consumer durables market reflected an annual rate of 7 to 10 percent. CE companies are re-working their strategies for the ensuing summer season, considered to be a good period for the industry. A cut in customs duty on inputs will enhance the manufacturing competitiveness of the industry by reducing cost and boosting demand and sales. Rationalization of taxes, clearly, seems to be a universal demand across the CE sector. This will ensure manufacturers in India have a level playing field as against their counterparts in the import business. Fast growing product segments such as flat panel TVs, LCD TVs, frost-free refrigerators, fully automatic washing machines, split airconditioners, DVD players, microwave ovens, home theatre systems 23

products entailing high aspiration value are likely to see a growth in consumption. The consumer durables sector is set to close the current financial year with 12% growth, 0.5 percentages point more than the growth registered last fiscal, according to a Ficci survey. The survey is based on feedback from the consumer durables industry, allied industry organizations and government agencies. Technological improvements, falling prices due to competition, aggressive and innovative marketing and declining import tariffs have contributed to the strong growth. According to the survey, many high-end products such as LCD TV, MP3, DVD, split air-conditioner, high end washing machine do not find place in the list of items covered by the Central Statistical Organization (CSO) for calculating official data. These items, however, have seen impressive growth. The sectors which are projected to achieve excellent growth rates of more than 20% in terms of units manufactured are air-conditioner (25%), split air-conditioner (60%), frost-free refrigerator (54%), washing machines (20 %), fully-automatic washing machine (35 %), microwave oven (35 %), high-end flat panel TV (100 %) and DVD (25 %). The sectors which are expected to record high growth rates between 10% and 20 % are refrigerator (11 %) and colour TV (15 %). India has an increasingly affluent middle class population that, on the back of rapid economic growth, has made the countrys consumer electronics industry highly dynamic. The industry has been witnessing significant growth in recent years due to several factors, such as retail boom, growing disposable income and availability of easy finance schemes. But still, the consumer electronics goods, like refrigerators, microwave and washing machines have low penetration in the country, representing vast room for future growth. Propelled by growing middle class population, changing lifestyle and rapid urbanization, the Indian consumer electronics industry is forecasted to grow at a rapid rate of 10% to 12% in the coming few years. Volume sales of washing machine will be driven by growth in fully automatic category during 2008-09 to 2011-12. The market for televisions in India is changing rapidly from the conventional CRT technology to Flat Panel Display Televisions (FPTV). Currently, the split between CRT and FPTV is around 97% and 3% respectively, and the share of FPTV is projected to increase at robust rate in near future.

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 Frost-free refrigerator sales, certainly growing at a much faster pace than the direct-cool category, are anticipated to drive the Indian refrigerators market over the forecast period. The AC market in India is projected to grow at 30% to 35% for the coming few years. Driven by young population, demand for MP3 players and digital video appliances are anticipated to surge at double-digit rate in near future. The low penetration level of consumer electronics goods coupled with increasing preference for comfort and luxurious goods are widely attracting the foreign as well as domestic players to the industry.

COMPETETION SAMSUNG From its inception as a small export business in Taegu, Korea, Samsung has grown to become one of the worlds leading electronics companies specializing in digital appliances and media ,semiconductors ,memory, and systems integration ,today Samsungs innovative and top quality products and processes are world recognized .this time line captures the major milestones in Samsung s history , showing how the company expanded its product lines 25

and reach ,grew its revenue and market share ,and has followed its mission of making life better for consumers around the world . On March 1, 1938, founding chairman Byung-Chull Lee started a business in Taegu, Korea, with 30,000 won. At the start, his business focused primarily on trade export, selling dried Korean fish, vegetables, and fruit to Manchuria and Beijing. In little more than a decade, Samsung which means "three stars" in Koreanwould have its own flour mills and confectionery machines, its own manufacturing and sales operations, and ultimately evolve to become the modern global corporation that still bears the same name today. 1970. Black and white TV (model:p-3202) production started by SamsungSanyo. 1974: Began washing machine and refrigerator production Samsung India strengthens its Fully Automatic Washing Machine range. 1976. 1 millionth black-and-white TV produced Latest Archives of Samsung _ SAMSUNG launches the largest 5 Star rated refrigerator range, 'Freshtech Ultima' in the Indian market _ SAMSUNG launches its 2009 range of bio sleep plus air conditioners VISION Samsung is guided by a singular vision: to lead the digital convergence movement. Samsung believe that through technology innovation today, we will find the solutions we need to address the challenges of tomorrow. From technology comes opportunityfor businesses to grow, for citizens in emerging markets to prosper by tapping into the digital economy, and for people to invent new possibilities. Its our aim to develop innovative technologies and efficient processes that create new markets, enrich peoples lives and continue to make Samsung a trusted market leader. MISSION To create technology products and services that lead the industry. To put into place more efficient management and production process . To maintain the steadfast focus on strengthening our organization ,on Continuing to be a global technology leader and trusted, responsible company.

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LG Birth and establishment of a new era for electronics industries LG Group founder In Hwoi,Koo set LG history in motion with the establishment of the Lak Hui Chemical Industrial Corp. in 1947. During those formative years, the company emphasized the principle of creating harmony among people. The employees believed that mutual trust and responsibility were crucial to accomplishing business objectives. In 1952, Lak Hui (currently LG Chem.) became the first Korean company to enter the plastics industry. As the company expanded its plastics business, it established Gold star Co., Ltd., (currently LG Electronics Inc.) in 1958. In 1959, Gold star produced Korea's first radio, opening a new era for the nation's electronics industry. In the early 1950s, LG had already established the foundation for its two major sectors-the chemical and electronics businessesthereby leading the development of Korea's industries. Korea vigorously implemented economic development plans and gradually consolidated the groundwork for its growth, emerging as a developing nation. Accordingly, LG gradually expanded its chemical and electronics businesses, which created the foundation for a big business group. During this decade, Gold star Co., Ltd., produced Korea's first electronic products such as electric fans in 1960, refrigerators in 1964, black and white televisions in 1966, air conditioners in 1968, and washing machines and elevators in 1969. Gold star soon became Korea's leading company in the chemical, energy, and electronics industries. 1996 : LG Established in India A Giant leap toward the future LG has adopted new visions for the 21st century. Its new visions are to develop a corporation where employees reach their full potential, shareholders maximize their value, and consumers are satisfied and touched emotionally. On March 1, 2003, LG launched its comprehensive holding company, LG Corp. LG became the first major Korean corporation to introduce a holding company structure with advanced corporate governance. By converting its structure into the holding company system, where investment and business divisions are separated, LG committed itself to overcoming chronic problems that most of Korea's large companies had in governance, especially in circulatory investments between subsidiaries. LG is now striving to fulfill its goal of becoming a first-class corporation by embracing "Jeong-Do" Management* and continuous innovation 27

WHIRLPOOL Whirlpool Corporation today is the world's leading manufacturer and marketer of major home appliances. Whirlpool realizes annual sales of approximately $19 billion, has 70,000 employees and maintains 69 manufacturing and technology research centers around the world. We market Whirlpool, Maytag, Kitchen Aid, Jenn-Air, Amana, Brastemp, Consul, Bauknecht and other major brand names to consumers in nearly every country around the world. Our beginnings, though, were much more humble, based on a business failure and the vision of one family. In 1908, Lou Upton invested his savings in a venture to manufacture household equipment. When that company failed to materialize, Upton was offered the opportunity to select something of value from the failed venture as a return on his investment. He chose the patents on a hand washing machine that he thought might be electrified. Lou Upton brought the patents and his innovative vision home to St. Joseph, Michigan. In 1911, Lou joined his uncle Emory and brother Fred to produce motor-driven wringer washers as the Upton Machine Company. Whirlpool Corporation is a leader of the $100 billion global home appliance industry. Our appliances are marketed in nearly every country around the world. Whirlpool manufactures appliances across all major categories, including fabric care, cooking, refrigeration, dishwashers, countertop appliances, garage organization and water filtration. Whirlpool markets some of the worlds most recognized appliance brands, including Whirlpool, Maytag, Kitchen Aid, Jenn-Air, Amana, Bauknecht, Brastemp and Consul. The Whirlpool brand is the world's No. 1 global appliance brand and ranks among the world's most valuable brands identified by Brand Finance, the worlds leading independent brand valuation and marketing metrics consultancy. Whirlpools Vision Every Home Everywhere with Pride, Passion and Performance Vision reinforces that every home is our domain, every customer and customer activity our opportunity. This vision fuels the passion that we have for our customers, pushing us to provide innovative solutions to uniquely meet their needs. Pride... in our work and each other Passion... for creating unmatched customer loyalty for our brands Performance... that excites and rewards global investors with superior returns 28

We bring this vision to life through the power of our unique global enterprise and our outstanding people... working together... everywhere. Whirlpools Values Values are constant and define the way that all Whirlpool Corporation employees are expected to behave and conduct business everywhere in the world.

CHALLENGES AND OPPORTUNITIES THE CHALLENGES Heavy taxation in the country is one of the challenges for the players. At its present structure the total tax incidence in India even now stands at around 25-30 per cent, whereas the corresponding tariffs in other Asian countries are between 7 and 17 percent. About 65 per cent of Indian population that lives in its villages still remains relevant for some consumer durables companies. This India, at least a large proportion of its constituents, still buys black and white TVs and doesn't know what flat screens are. Also, foraying into these rural markets has a considerable cost component attached to it. Companies not only have to set up the basic infrastructure in terms of office space, manpower, but also spend on transportation for moving inventory. Even LG and Samsung, which are touted as having the largest distribution network in the country, have a direct presence only in 15,000 to 18,000 of the around 40,000 retail outlets (for consumer durables) in the country. Poor infrastructure is another reason that seems to have held back the industry. Regular power supply is imperative for any consumer electronics product. But that remains a major hiccup in India. THE OPPORTUNITIES The rising rate of growth of GDP, rising purchasing power of people with higher propensity to consume with preference for sophisticated brands would provide constant impetus to growth of white goods industry segment. Penetration of consumer durables would be deeper in rural India if banks and financial institutions come out with liberal incentive schemes for the white goods industry segment, growth in disposable income, improving lifestyles, power availability, low running cost, and rise in temperatures. While the consumer durables market is facing a slowdown due to saturation in the urban market, rural consumers should be provided with easily payable consumer finance schemes and basic services, after sales services to suit the infrastructure and the existing amenities like electricity, voltage etc. 29

Currently, rural consumers purchase their durables from the nearest towns, leading to increased expenses due to transportation. Purchase necessarily done only during the harvest, festive and wedding seasons April to June and October to November in North India and October to February in the South, believed to be months `good for buying, should be converted to routine regular feature from the seasonal character. Rural India that accounts for nearly 70% of the total number of households, has a 2% penetration in case of refrigerators and 0.5% for washing machines, offers plenty of scope and opportunities for the white goods industry. According to survey made by industry, the rural market is growing faster than the urban India now. The urban market is a replacement and up gradation market now. The increasing popularity of easily available consumer loans and the expansion of hire purchase schemes will give a moral boost to the pricesensitive consumers. The attractive schemes of financial institutions and commercial banks are increasingly becoming suitable for the consumer. Consumer goods companies are themselves coming out with attractive financing schemes to consumers through their extensive dealer network. This has a direct bearing on future demand. MAJOR HURDLES AND CHALLENGES PLAGUING THE INDIAN CONSUMER DURABLES SECTOR: Threat from new entrants, especially global companies: The domestic consumer durables sector faces threat from newer companies, especially from global ones who have technologically advanced products to offer. Rivalry and competition: Presence of a large number of players in the domestic consumer durables industry leads to competition and rivalry among companies. Threat from rivalry and competition poses a threat to domestic companies. Potential markets remaining yet untapped: A large segment of the domestic market, mostly the rural market is yet to be tapped. Tapping this yet untapped and unorganised market is a major challenge for the Indian consumer durables sector. Threat from substitute products/services: The domestic consumer durables industry is plagued by threats from substitute products. Easy accessibility to theatres/multiplexes, especially in urban areas has turned off the viewership from TV to a large extent. With the advent of a horde of FM radio stations, radio sets have now substituted TVs. Customer power with respect to availability of choice: The availability of a wide product line on account of most products being homogeneous, poses a threat for companies operating in the consumer durables sector. Customers 30

have the choice of both domestically produced and imported goods, with similar features.

MARKET ANALYSIS For the purpose of doing the market analysis the whole consumer durables market has been divided into two parts Consumer electronics Household appliances.

31

CONSUMER ELECTRONICS The consumer electronics market consists of the total revenues generated through the sale of audio visual equipment and games console products designed primarily for domestic use. The audio visual equipment includes CD Players, DVD Players / Recorders, hi-fi systems, home theatre, in-car entertainment systems, portable digital audio, radios, televisions and video recorders. Games consoles segment includes both home use and portable consoles. After posting decelerating growth between 2004-2008, the Indian consumer electronics market is expected to follow similar pattern in the forthcoming years up to 2013. The Indian consumer electronics market generated total revenues of $4,196.6 million in 2008, representing a compound annual growth rate (CAGR) of 9.5% for the period spanning 2004-2008. In comparison, the Chinese and Japanese markets grew with CAGRs of 13.4% and 6% respectively, over the same period, to reach respective values of $26,077.9 million and $22,492.5 million in 2008. Electricals and Electronics Retailers sales proved the most lucrative for the Indian consumer electronics market in 2008, generating total revenues of $3,821.7 million, equivalent to 91.1% of the market's overall value. In comparison, sales from Discount, Variety Store, and General Merchandise Retailers generated revenues of $302 million in 2008, equating to 7.2% of the market's aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 6.4% for the five-year period 20082013, which is expected to drive the market to a value of $5,727.7 million by the end of 2013. Comparatively, the Chinese and Japanese markets will grow with CAGRs of 5.7% and 1.2% respectively, over the same period, to reach respective values of $34,433.6 million and $23,822.4 million in 2013 MARKET VALUE FORECAST In 2013, the Indian consumer electronics market is forecast to have a value of $5.7 billion, an increase of 36.5% since 2008. The compound annual growth rate of the market in the period 2008- 2013 is predicted to be 6.4%. HOUSEHOLD APPLIANCES The household appliances market reflects the sale of six product sectors: refrigeration appliances (including fridges, freezers and fridge freezers), cooking appliances (including cookers, microwaves, ovens, cooker hoods, food processors and toasters), washing appliances (including washing machines, clothes dryers and washer-dryers), room comfort and water heater appliances 32

(which include air conditioning, circulating and ventilation fans, space heaters and water heaters), vacuum cleaners, and dishwashers. The market value has been calculated using manufacturer selling prices. The performance of the market is forecast to decelerate, with an anticipated CAGR of 10% for the five-year period 2008-2013, which is expected to drive the market to a value of $7.7 billion by the end of 2013.The Indian household appliances market has grown at a strong rate in recent years. Further strong growth is expected for the forecast period. The Indian household appliances market generated total revenues of $4.8 billion in 2008, representing a compound annual growth rate (CAGR) of 12.5% for the period spanning 2004-2008. In comparison, the Japanese and Chinese markets grew with CAGRs of 1.1% and 7.5%, respectively, over the same period, to reach respective values of $18.6 billion and $24.4 billion in 2008. Market consumption volumes increased with a CAGR of 13.2% between 2004-2008, to reach a total of 34.7 million units in 2008. The market's volume is expected to rise to 52.2 million units by the end of 2013, representing a CAGR of 10% for the 2008-2013 periods. Refrigeration appliance sales proved the most lucrative for the Indian household appliances market in 2008, generating total revenues of $1,445.3 million, equivalent to 30% of the market's overall value. In comparison, sales of cooking appliances generated revenues of $1,405 million in 2008, equating to 29.1% of the market's aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of10% for the five-year period 2008-2013, which is expected to drive the market to a value of $7.7 billion by the end of 2013. Comparatively, the Japanese and Chinese markets will grow with CAGRs of 0.4% and 4.7%, respectively, over the same period, to reach respective values of $18.9 billion and $30.7 billion in 2013.

MARKET VALUE The Indian household appliances market grew by 9.4% in 2008 to reach a value of $4.8 billion. The compound annual growth rate of the market in the period 2004-2008 was 12.5%. MARKET VOLUME The Indian household appliances market grew by 11.8% in 2008 to reach a volume of 34.7 million units. The compound annual growth rate of the market 33

volume in the period 2004-2008 was 13.2%.Refrigeration appliance sales proved the most lucrative for the Indian household appliances market, generating 30% of the total revenues. In comparison, cooking appliance sales account for a further 29.1% of the market's revenue.Godrej share in washing machine has gown from 8%to 12% and in washing machine the share has increased from 20% to 22%. MARKET VALUE FORECAST In 2013, the Indian household appliances market is forecast to have a value of $7.7 billion, an increase of 60.7% since 2008. The compound annual growth rate of the market in the period 2008- 2013 is predicted to be 10%. PRODUCT Godrej has come out with some world class products in the home appliances range like refrigerator ,microwave, air conditionerand other. PRICE Keeping competition into consideration products are being priced accordingly so that they can cater to masses. PLACE Godrej has distribution network through out the country which offers prompt service and products. PROMOTION They have come out with the latest promotion techniques by keeping up the quality of advertisement and roping in good brand ambassador.

BUSINESS FACTS Continuously expanding marketing and sales infrastructure GCPL possesses a well entrenched and established distribution network serviced by a highly motivated sales organization Consistent focus on enhancing reach and presence especially in growing domestic rural regions as well as international markets 34

 Sophisticated IT connectivity with distributors Robust manufacturing and Supply Chain competencies State of the art manufacturing facilities spread across the country Factories strongly committed to TQM culture, adhering to International & Indian Standards and systems and following Good Manufacturing Practices (GMP) Sophisticated ERP systems across the business

Well-developed R&D capabilities Focus on innovation and development of novel consumer centric products and processes Energized and experienced teams Strong focus on enhancing skills and competencies across functions through training &periodic Young Executive Board comprising young managers formed as part of a Group initiative to Devise strategies and identify new opportunities

Corporate Governance Envisages attainment of the highest levels of transparency, accountability and equity in all Facets of its operations and in all its interactions with its stakeholders including shareholders, Employees, lenders and the Government. Committed to achieve and maintain the highest standards of Corporate Go Ensures that all its actions serve the underlying goal of enhancing overall stakeholder value over a sustained period of time. The Company continues to enjoy a corporate governance rating of CGR2+ (pronounced as CGR two plus) and Stakeholder Value Creation Rating of SVG1

35

BUSINESS DRIVERS, SUSTAINERS, ENABLERS Godrej Consumer Products is a well entrenched, focused and growth oriented FMCG Company. Key drivers Focus on completely understanding consumer requirements and behavior and introduction of innovative new products Consistent focus on delivering Value for Money products Consistently augmenting domestic marketing and sales reach and distribution Globalization introducing new product ranges, new variants and exploring new Geographies Key sustainers Rich heritage and experience across identified segments Competent and experienced management team backed by committed executives and Workforce Cutting edge manufacturing and operating infrastructure. Well developed brands across both soap and personal care portfolios. Key enablers Introduction of efficiency oriented measures like EVA to encourage a result oriented Approach and reward correct decision-making. Focus on brand building. Cutting edge IT and systems infrastructure designed to optimize accounting, Manufacturing, marketing and sales. Robust technology base and established systems and processes to ensure consistency in Quality

VISION

36

GODREJ IS dedicated to DELIVER SUPERIOR STAKEHOLDER VALUE by providing solutions to existing and emerging consumer needs in the Household & Personal Care business. We will achieve this through ENDURING TRUST & RELENTLESS INNOVATION delivered with PASSION & ENTREPRENEURIAL SPIRIT.

MISSION Godejs Mission is to operate in existing and new Businesses Which Capitalize on the Godrej brand and our corporate image of reliability and integrity .our objective is to delight our customer both in India and abroad. We shall achieve this objective through continuous improvement in quality; cost and customer service .we shall strive for excellence by nurturing, developing and empowering our employees and suppliers. We shall encourage an open atmosphere conducive to learning and team work.

VALUES Commitment to Quality. Customer Orientation... Dedication & Commitment. Discipline. Honesty & Integrity. Learning Organization. Openness & Transparency. Teamwork. Trust/Care & Concern for People

37

38

CHAPTER 3

39

FINANCIAL ANALYSIS Meaning of Financial Analysis is to classify the data in simple form given in financial statements and to compare with each other to find out the strong points and weakness of the business and to take decisions for future. For instance, if all items relating to current assets are placed in one group while all items relating to current liabilities are placed in another group, the comparison between the two groups will provide useful information. Actually the figures given in financial statements do not speak anything themselves. The analysis of these figures helps the interested reader by giving tongue to these mute heaps of figures. In the words: Financial analysis consists in separating facts according to some definite plan, arranging them in groups according to certain circumstances and then presenting them in a convenient and easily read and understandable form. Financial statement analysis is largely a study of relationships among the various financial factors in a business, as disclosed by a single set of statements and a study of the trends of these factors as shown in a series of statements.

40

MEANING OF RATIOS AND ITS USES Relationship between two figures expressed in relation to other figure is known as RATIO. Ratio is simply one number expressed in terms of another number Its main uses are as following Helpful in analysis of financial statement . Simplification of accounting data. Helpful in comparative study. Helpful in locating week points Helpful in forecasting and controlling

RATIOS ARE DIVIDED INTO FOLLOWING PARTS Liquidity ratios Profitability ratios Activity ratios Leverage ratios

41

LIQUIDITY RATIOS- refers to the firms ability to meet its current liabilities. They are also known as short term solvency ratio. These ratios are used to assess the short term financial position of the concern. This indicates the firms ability to meet its current obligations out of current resources. Liquidity ratio include two ratiocurrent ratio quick ratio or acid test ratio

Current Ratio = current assets/ current liabilities It includes only those assets and liabilities which are repayable withen a month. 2:1 is the ideal ratio a company should have .It means assets should be twice the liabilities. Ratios of Godrej versus Videocon PARTICULARS GODREJ VIDEOCON 2007 0.72 2.43 2008 1.18 1.76 2009 0.67 2.82

INTERPRETATION- According to principles the ideal ratio is 2:1. It is visible that Videocon has better liquid assets in comparison to godrej a probable reason for this can be that godrej has paid off most of its current liabilities and it can also be interpreted that Videocon has a large amount locked up with the debtor due to inefficient collection policies. Godrej has paid of most of its debtors so they have fewer amount of debtors.

42

Quick ratio or acid test ratio=Liquid Assets /Current Liabilities Liquid assets are those assets which will yield cash very shortly .Current assets other than stock and prepaid assets are liquid assets. Ideal ratio for quick ratio is 1:1 Ratios of Godrej versus Videocon PARTICULARS GODREJ VIDEOCON 2007 0.75 2.81 2008 1.60 2.15 2009 1.31 4.14

INTERPRETATION- When we exclude stock or inventory from the list of assets we can interpret that Videocon is in a better position than godrej. The standard ratio is 1:1 and godrej has shown a constant performance over the past two years while Videocon financial is better than Godrej .This is a better form of testing as it considers only those assets which can be converted into cash easily.

43

PROFITBILITY RATIO- These ratios reflect the true earning capacity of the resources employed in the enterprise. Since the capital is employed to earn profit these ratios are the real measure of the success of the business and managerial efficiency These are classified as return on capital employed return on share holder fund earning per share

Return on capital employed=profit dividends/capital employed*100 PARTICULARS GODREJ VIDEOCON 2007 20.54 10.83

before 2008 10.32 12.17

interest, 2009 1.85 12.17

tax

and

INTERPRETATIONIt can be interpreted that Godrej return on capital employed has reduced significantly over the past three years while Videocon has maintained the same rate of return every year so Videocon can be better option of investment for the share holders.

44

Return on share holder fund-Net profit after interest and tax / share holder fund It shows the overall profitability of the funds supplied by share holders. It measures the profitability of the funds invested by share holders. PARTICULARS GODREJ VIDEOCON 2007 20.54 19.89 2008 10.32 15.20 2009 1.85 14.45

INTERPRETATION- It can be interpreted that Godrej was providing a higher percentage in 2007 and it has reduced significantly in 2009 which means share holders are not given a higher rate on investment .Videocon on the other hand is providing a rate of interest with minor fluctuation so it is a better place of investment.

Earning per share- Net profit after tax and dividend / number of shares. This ratio measures the profitability available to the equity shareholders per share basis. This helps in determination of the market price of the equity share of the company. PARTICULARS 2009 2007 2008

45

GODREJ 1.25 VIDEOCON 3.50

1 3.50

1.25 1

INTERPRETATION- This signifies that Godrej has been providing a constant return while a drastic change in the tern of Videocon can be interpreted from 3.5 to 1 . Figures are in rupees.

ACTIVITIES RATIO- This measure how well the resources at the disposal of the concern are being utilized. These are also known as turnover ratios as they indicate the rapidity with which the resources available to the concern are being used to produce sales. These are generally calculated on sales or cost of sales. They are classified as Inventory turnover ratio Debtor turnover ratio Fixed assets turnover ratio

Inventory turnover ratio- cost of goods sold / average stock Shows relation between cost of goods and average stock

PARTICULARS GODREJ VIDEOCON

2007 5.05 5.65

2008 4.39 6.0

2009 10.89 6.44 46

INTERPRETATION-The above analysis states that Godrej inventory ratio is much better in comparison to Videocon. This means that stock of godrej is selling more than Videocon. Condition of Videocon has improved but it is no way near to Godrej which means that stock is not selling quickly and is lying in the go down.

Debtor turnover ratio- net credit sales/ (avg debtor + avg B/R) This ratio indicates the speed with which amount is being collected from the debtors. The higher the ratio, the better is the situation. Lower turnover ratio will indicate the insufficient credit policies of the management.

PARTICULARS

2007

2008

2009

GODREJ 5.12 VIDEOCON 6.83

8.70 6.82

5.82 6.73

INTERPRETATION-It can be noticed that the percentage has fallen in case of Godrej from as high as 8.70 to 5.82 while it has remained almost constant in case of Videocon. This means Videocon has been getting regular payments from debtors while the policy of Godrej cannot be judged as convincing. 47

Fixed assets turnover ratio- cost of goods sold/ net fixed assets Higher the ratio means that assets are being utilized efficiently while lower ratio means assets are not being utilized efficiently. PARTICULARS GODREJ VIDEOCON 2007 1.24 2.07 2008 1.33 1.81 2009 1.44 1.10

INTERPRETATION- It can be seen that assets are utilized efficiently in Godrej with a slight increase in percentage every year while the ratio has decreased significantly in Videocon which means assets are not being utilized efficiently. Profitability can increase at Videocon if they start utilizing the fixed assets in a better way.

LEVERAGE RATIO- analyze the long term solvency of the firm .Usually long term lenders , debenture holders and financial institutions are interested in these ratios. With the help of these ratios it can be judged the ability of a firm to pay the interest regularly as well as repay the interest when due They are classified as Debt equity ratio Interest coverage ratio Debt to total fund ratio Debt equity ratio-long term loan/shareholder funds It expresses the relationship between debt and shareholder fund. This ratio is calculated to assess the ability of the firm to meet its long term liability. 2:1 is considered as safe. If it is more than that then it is considered as risky while less than that is considered better. 48

PARTICULARS GODREJ VIDEOCON

2007 1.19 1.23

2008 .42 .95

2009 .59 1.19

INTERPRETATION According to the figures Godrej is in a better position to meet its long term liability. Ratio of Videocon is also much less then the ideal ratio of 2:1 so if can be interpreted that both the companies are in a very good position with Godrej having an edge.

Interest coverage ratio- net profit before interest and tax/fixed interest charges This ratio indicates how many times the interest charges are covered by profit to pay interest charges.The higher the ratio more secure are the lenders.If profit just equals interest it is an unsafe position for the lender as well as the company.

PARTICULARS GODREJ VIDEOCON

2007 1.95 4.35

2008 2.73 4.27

2009 0.44 4.50 49

INTERPRETATION- It can be seen that Videocon has an edge over Godrej as it has maintained a constant rate above 4 which is more than Godrej while it can also be identified that ratio has gone downwards drastically which means that the company should look into the matter so that lenders to the company can be secured in a better way.

Total debt to owners fund ratio- long term loan/ (share holder fund + long term loan) Ratio should not be more than 67% in this case. A higher ratio is generally treated an indicator of risky financial position because it means that the firm depend too much on outside sources for its existence. PARTICULARS GODREJ VIDEOCON 2007 1.19 1.23 2008 0.42 0.95 2009 0.59 1.19

INTERPRETATION- It can be interpreted that Godrej has maintained the ratio continuously for two years in a row which means that firm is in itself capable to meet most of its requirement while Videocon depend more on outside sources for running and to keep itself in existence. Analysis of Cash flow statement for last three years Cash flow statement may provide considerable information about what is really happening in a business beyond that contained in either the income statement or the balance sheet. Analysing this statement should not present an intimidating task; instead it will quickly become obvious that the benefits of understanding the sources and uses of a companys cash far outweigh the costs of undertaking some very straightforward analyses. Statement of Cash Flows Cash Flow from Operating Activities Net Income Adjustments to reconcile net income to net

XXX,XXX 50

cash provided by operating activities: Depreciation and amortization Changes in other accounts affecting operations: (Increase)/decrease in accounts receivable (Increase)/decrease in inventories (Increase)/decrease in prepaid expenses Increase/(decrease) in accounts payable Increase/(decrease) in taxes payable Net cash provided by operating activities Cash Flow from Investing Activities Capital expenditures Proceeds from sales of equipment Proceeds from sales of investments Investments in subsidiary Net cash provided by investing activities Cash Flow from Financing Activities Payments of long-term debt Proceeds from issuance of long-term debt Proceeds from issuance of common stock Dividends paid Purchase of treasury stock Net cash provided by financing activities Increase (Decrease) in Cash

XX,XXX X,XXX X,XXX X,XXX X,XXX X,XXX XXX,XXX (XXX,XXX) XX,XXX XX,XXX (XXX,XXX) (XXX,XXX) (XX,XXX) XX,XXX XXX,XXX (XX,XXX) (XX,XXX) (XX,XXX) XX,XXX

1. Net Cash flow from Operating Activity is compared as follows:

PARTULARS Godrej HUL

2007 2085.63 1594.82

2008 2467.93 1680.11

2009 2881.25 2028.65

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INTERPRETAION-According to the principles, higher net cash flow from operating activity is good for industry, as it shows the operating profitability. It is visible that Godrej is better in 2009 as compared to itself in 2008. Godrej has shown good recovery sign at constant rate throughout. 2. Net Cash flow from investing activity is compared as follows:

PARTCIULARS Godrej HUL

2007 -1009.21

2008 -2210.91

2009 -2431.76

-197.95

1023.76

878.19

INTERPRETAION-According to the principles, Godrej has incurred throughout three years aggressive part for purchasing fixed Assets, as its shown in all the three years the figure tends to be negative . Cash flow from financing activity is compared as follows: 3. PARTICULARS Godrej HUL -1344.73 2007 2008 -452.32 -2921.34 2009 345.76 -1330.36 298.90

INTERPRETAION-According to the principle,Godrej cash flow from financing activity is negative which indicates that either it has redeemed its debentures or paid loan during the 3 years.It can also be observed that in 2008 and 2009 Godrej has either taken loan or share are being issued

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Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 29.19 29.19 0.00 0.00 275.86 30.32 335.37 220.76 35.57 256.33 591.70 Mar '05 12 mths 497.29 261.92 235.37 15.63 335.77 107.52 86.04 6.41 199.97 54.73 7.37 262.07 0.00 208.93 49.48 258.41 3.66 1.26 591.69 29.19 29.19 0.00 0.00 319.25 22.91 371.35 249.11 78.03 327.14 698.49 Mar '06 12 mths 29.19 29.19 0.00 0.00 363.17 18.26 410.62 330.92 136.77 467.69 878.31 Mar '07 12 mths 31.98 31.98 0.00 0.00 1,009.73 16.71 1,058.42 249.48 186.19 435.67 1,494.09 Mar '08 12 mths 31.98 31.98 0.00 0.00 981.05 14.10 1,027.13 232.82 368.14 600.96 1,628.09 Mar '09 12 mths

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets 536.40 255.68 280.72 5.22 371.35 118.92 58.07 4.06 181.05 84.79 8.54 274.38 0.00 203.34 52.02 255.36 19.02 22.19 698.50 542.58 273.03 269.55 17.49 485.67 155.15 92.53 5.29 252.97 111.23 20.08 384.28 0.00 228.26 66.44 294.70 89.58 16.02 878.31 558.22 291.74 266.48 4.94 775.48 197.71 156.40 3.11 357.22 167.35 291.18 815.75 0.00 293.72 85.53 379.25 436.50 10.68 1,494.08 578.55 314.68 263.87 24.84 1,148.08 93.56 161.00 2.42 256.98 167.60 26.10 450.68 0.00 185.28 77.95 263.23 187.45 3.86 1,628.10

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Contingent Liabilities Book Value (Rs) Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

143.35 62.71

91.25 71.63

111.03 13.44

124.54 32.58

106.28 31.68

206.53 206.53 65.24 0.00 3,420.56 951.84 4,644.17 2,776.10 473.47 3,249.57 7,893.74 Sep '05 15 mths

266.85 220.84 0.00 46.01 3,847.63 924.57 5,039.05 3,608.39 1,352.80 4,961.19 10,000.24 Sep '06 12 mths

266.95 220.95 0.00 46.01 5,357.91 53.52 5,678.38 3,343.50 1,916.14 5,259.64 10,938.02 Sep '07 12 mths

275.31 229.30 0.00 46.01 6,538.49 0.00 6,813.80 4,401.25 3,604.34 8,005.59 14,819.39 Sep '08 12 mths

275.42 229.41 95.00 46.01 6,929.63 0.00 7,300.05 6,735.04 2,349.51 9,084.55 16,384.60 Sep '09 12 mths

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

5,578.62 2,286.77 3,291.85 699.23 338.79 873.02 997.12 1,359.87 3,230.01 1,183.17 36.14 4,449.32 0.00 815.76 69.68 885.44 3,563.88 0.00 7,893.75 207.72 175.62

7,127.93 2,847.09 4,280.84 608.28 1,781.17 1,299.86 1,117.29 94.63 2,511.78 872.06 1,041.63 4,425.47 0.00 926.70 168.80 1,095.50 3,329.97 0.00 10,000.26 81.65 184.11

8,083.16 3,376.67 4,706.49 612.98 2,092.50 1,393.64 1,314.25 170.63 2,878.52 1,545.48 718.47 5,142.47 0.00 1,323.22 293.22 1,616.44 3,526.03 0.00 10,938.00 112.59 252.33

8,947.78 4,310.63 4,637.15 1,289.52 2,695.59 1,568.86 1,582.89 184.71 3,336.46 4,101.65 203.57 7,641.68 0.00 1,292.58 151.97 1,444.55 6,197.13 0.00 14,819.39 178.17 294.96

9,004.95 4,298.83 4,706.12 1,314.15 3,064.90 1,763.49 1,708.11 318.80 3,790.40 4,850.78 179.71 8,820.89 0.00 1,391.29 130.19 1,521.48 7,299.41 0.00 16,384.58 122.93 312.07

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CHAPTER 4

55

RESEARCH ANALYSIS DATA COLLECTION SOURCES OF DATA PRIMARY DATA: Primary data refers to data that is collected afresh and recorded for the first time. Primary data are those data i.e. collected by the researcher himself. It thus happens to be original in nature. The various methods of collecting primary data are performing surveys, census, through observation or through correct communication with respondents. But basic manner of primary data collection is survey method. The primary data for the study was collected through questionnaire and informally. The primary data is collected from a questionnaire which is having 19 questions. Every question is having its own value and it provides various aspects of this report. For collecting the data we go through the dealers store situated in KANPUR city area. SECONDARY DATA: Secondary data refers to that which has already been collected by someone else. Secondary data for the study was collected from: _ Published literature _ Company published data and broachers _ Internet _ Commercial service _ Books

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METHODOLOGY The success of the analysis mostly depends on the methodology on which it is carried out. The appropriate methodology will improve the validity of the findings. Area of the study: The study was mainly concentrated on Kanpur city. Research Design: Descriptive Research: Descriptive research includes survey and fact-findings Enquire of different kinds. The major purpose of descriptive research is description of the state affairs, as it exists at present. Data Collection: The study is based on the data collected through primary and secondary sources. Primary Data: An interview schedule was designed to collect primary data from various Dealers. Secondary Data: Secondary data was collected from journals, magazines, web sites and from other relevant publications. Sampling Design: The sampling design mainly consists of the sample taken for the study along with the sample size, sample frame and sampling method. Sample Universe: All Dealers those who are deal in the selected Areas in KANPUR were taken as the sample universe. Sample Size: From the universe, sample sizes of 220 Dealers were selected for the purpose of the study. Sample Frame: The Dealers were selected on a random basis from which the respondents were selected based on convenience. Sampling Method: 57

Convenience sampling was used, based on the willingness and availability of the respondents. The study was conducted on Dealers with different type of brand business in same segment. Research period: The time for the project was limited to 50 days only, from this, 40 days was spent for the collection of data. Design of the study: The chapter briefly describes the design of the study to explain the objectives, scope of the study, methodology, sampling, field work and finally the limitations of the study. SCOPE OF STUDY Today the consumer appliances Industry are undergoing a revolution. Various types of branded companies are entering into this field. This has given rise to the opening of the competitive HOME APPLIENCES service stations like LG, SAMSUNG, WHIRLPOOL, ONIDA, and VIDEOCON to offer the requisite services to the HOME APPLIENCES users. The survey was conducted in KANPUR CITY and with the study we can get some suggestions from the dealers for service improvements in terms of quality. In the study we can find out the levels of dealer satisfaction .we can also identify the causes for customer dissatisfaction like Relationship, more service charges, and delivery of the product. RESEARCH DESIGN Meaning of the Research Design: Research design is the arrangement of conditions and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. In other words it is a logical and systematic plan prepared for directing a research study. It specifies the objectives of the study, the methodology and the techniques to be adopted for achieving the objectives. Exploratory: Exploratory research is used when one is not conversant with the problem environment such type of investigation is mainly concerned in determining the general nature of the problem and variables related to it. In line with how a lot of theorizing has gone in the last century, comparative research does not tend to investigate grand theories such as Marxism. It instead occupies itself with middle-range theories theories that do not purport to describe our social system in its entirely, but a subset of it. A good 58

example of this is the common research programs that looks for differences between two or more social systems, then look at these differences in relation to some other variable coexisting in those societies to see if it is related. The classic cases of this is Espying-Andersons research on social welfare systems, and compared them based on their levels of deco modification of social welfare goods. He found that he was able to class welfare states in four types, based on their deco modification. She further theorized from this that deco modification was based on a combination of class collisions and mobilization, and regime legacy. Here Espying- Anderson is using comparative research: he takes many western countries and compared their level of deco modification, then develops a theory of the divergence based on his findings. Comparative research is a methodology in the social sciences that aims to make comparisons across different countries and cultures. A major problem in comparative research is that the data sets in different countries may not use the same categories, or define categories differently.

Dealers, Needs And Wants: Meeting the objective needs and subjective wants of dealers to drive sales is the basis of most businesses. It is how they build business relationships, remain profitable, and how they expand into new territories. While the process of meeting those needs and wants may be different for each client or project, your goal is to lead your team in satisfying Dealer goals and expectations so your company will receive future work. Needs can be very similar between customers, while wants can vary enormously based on the different perceptions and diverse experiences of your client base. Meeting with Dealers In order to meet your customers' expectations, your team must first understand what those expectations are. Ways to determine this include: Meeting with Dealers Asking open creative questions about what is his requirement. Using a 'content mirror' to ensure understanding and show you are listening and interested Taking copious notes for future reference. 59

Holding a team meeting afterward to compare notes and pinpoint exact needs and wants Returning to the Dealer if needed for clarification before beginning a project. Even though many clients know what they require, some simply do not. And some may have an idea of what they want without that necessarily corresponding with what they need. It will be up to your team to draw the needs and wants out of them in order to devise a plan and goals. When talking with customers, you should ask questions about their business, what they feel are its strengths and what its weaknesses are. If working in sales, finding out what a client is lacking in their business can help you find the correct solution which then can lead to a sale.

Steps to Meet These Needs And Wants Once you have established the expectations of your customer, then your work really begins. Whether you are working with a team on a project or you are trying to sell products or services, the steps you take should include: Brainstorming possible solutions to issues presented by the Dealer. Outlining project goals and assigning tasks. Determining the correct product that will meet the needs and wants of Dealers. Presenting solutions to the Dealer. When taking these steps, you may want to consult with the customer to make sure you are on the right track. Since Dealers may at any time become worried, frustrated, angry, or anxious about the process, it is your job to let Dealers know that they are a priority and that you are trying your best to meet 60

their requirements. Keeping Dealer informed will be an important ingredient of success.

Dealer Follow Up: After delivering a product / service or presenting a process to your Dealer, you should follow-up to see if their expectations have been met. This is not only good business practice; it also lets Dealers know that you care about their business and that you want them to succeed, even beyond the sale. If they are not satisfied, then you should show ownership and follow company procedures in trying to fix any issues they may still have. Timothy Millett, head trainer at i perform, has extensive expertise in performance training, sales training and customer service training. Tim has helped participants from organizations such as SWIFT and UBS achieve peak levels of personal performance

Sample Design: Sampling may be defined as the selection of some part of an aggregate or totality, on the basis of which judgment about the aggregate or totality is made. In other words, it is the process of obtaining information about an entire population by only examining only a part of it. For the purpose of this study 220 samples i.e. Dealers in Areas surveyed to collect the primary data. The convenient sampling is used to select the representative sampling from the population, because researcher does not have subscriber who are easily accessible. Definition of the population: 61

Out of the sample collected the breakup of the sample size was on the following parameters. This sample is collected from the various Areas in KANPUR. The list of Area was provided by our company to collect the data. The respondents were taken from all the kinds of size i.e. high, lower and middle sizes .The respondents have been chosen on random basis. These respondents Dealers .Some were authorized dealer and other is sub dealer. Also the opinion of local people had been taken. The sample size consists of 220 respondents. Sample size: A total number of 220 respondents were included in the study. Sample Procedure The sampling design, I have chosen to decide the sample for study is based on convenient sampling.

LIMITATIONS OF THE STUDY The sample size of Dealers is limited to 220 because of time and cost factor. Some dealers suspected my identity. The study was time bound. Many of the respondents were not open with their responses. Majority of the dealer were too aggressive in nature. Lack of Dealers cooperation was a major constraint. There may be error due to bias of respondents. The behavior of the Dealers while approaching them to fill the questionnaire was unpredictable. Some of the security guard are not co-operative.

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DATA ANALYSIS AND INTERPRETATION Introduction To Analysis After tabulating, the data must be analyzed, researcher often use statistical interpretation which concentrates on what is average or what deviates from an average. Statistical interpretation, shows how widely the response vary and how they are distributed in relation to the variable, being measured, statistical market rely on estimates of expected errors or deviation from the two values of population. The analysis and interpretation of data may lead the researcher to accept or reject the hypothesis being selected. Data Analysis Tools Used The process of arranging data into groups or classes according to resemblance and similarities is technically called classification. Classification is the process of arranging the data into sequences and groups according to their common characteristics or separating them into different related parts. Data interpretation will be done through statistical tools like. Bar graphs Column chart Pie charts

TABLE SHOWING REASONS FOR DEALING WITH GODREJ. PARTICULARS NO OF RESPONDENTS PERCENTAGE (%) 63

GOOD SALES FIGURES COMPANY SUPPORT CUSTOMER DEMAND AFTER SALES SERVICE BRAND IMAGE

41 36 34 33 35

22.90 20.11 18.99 18.43 19.55

Data is interpreted on the basis of 179 dealers who are dealing with Godrej.

GOOD SALES FIGURES 19.55 22.9 COMPANY SUPPORT CUSTOMER DEMAND 18.43 18.99 20.11 AFTER SALES SERVICE BRAND IMAGE

INTERPRETATION-Reasons for dealing with Godrej include various factors like good sales figure followed by company support backed up by strong brand image.

TABLE SHOWING INTEREST IN DEALING WITH THE COMPANY AND REASONS.

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PARTICULARS BRAND IMAGE CUSTOMER DEMANDS TECHNOLOGY COMPANY SUPPORT

NO OF RESPONDENTS 7 8 4 6

PERCENTAGE (%) 28 32 16 24

Data is interpreted on the basis of 25 dealers who are willing to deal with Godrej.

24%

28% BRAND IMAGE CUSTOMER DEMANDS TECHNOLOGY COMPANY SUPPORT

16%

32%

INTERPRETATION- The above graph shows that main reason why dealers want to deal with Godrej are customer demand followed by strong presence of the brand.

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3. TABLE SHOWING REASONS FOR NOT DEALING WITH GODREJ. PARTICULARS NO OF RESPONDENTS 8 6 2 PERCENTAGE (%) 50 37.5 12.5

AUTHORISED DEALERSHIP OF OTHERS GOOD SALES NO FROM OTHER BRAND POOR AFTER SALES SERVICE OF GODREJ Total respondents is 16 in this case

60 50 40 30 20 10 0 AUTHORISED DEALERSHIP OF OTHERS GOOD SALES NO FROM OTHER BRAND POOR AFTER SALES SERVICE OF GODREJ Series1

INTERPRETATION- Table shows that majority of the dealers are authorized dealers of other brands and they are getting good sales from other brands so they dont want to deal with Godrej.

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4. TABLE SHOWING THE HIGHEST SELLING BRAND. BRANDS LG SAMSUNG WHIRLPOOL GODREJ OTHERS NUMBER 55 41 30 32 62 PERCENTAGE (%) 25.00 18.63 13.64 14.55 28.18

30 25 20 15 10 5 0 LG 25 18.63 13.64 14.55 Series1 SAMSUNG WHIRLPOOL GODREJ S1 OTHERS 28.18

INTERPRETATION It can be observed that LG is the top most selling brand in Kanpur followed by SAMSUNG and GODREJ while others contribute VIDEOCON, HAIER, ELECTROLUX and KELVINATOR. 67

5. TABLE SHOWING HAS THE COMPANY PROVIDED ANY CONVESOR. PARTICULARS LG WHIRLPOOL GODREJ VIDEOCON SAMSUNG NO CONVESSOR NO OF RESPONDENTS 29 35 29 28 32 67 PERCENTAGE (%) 13.18 15.90 13.18 12.72 14.54 30.45

35 30 25 20 15 10 5 0
LP O O L G O D RE VI J D EO CO N SA M SU NO N C G O NV ES O R LG

Series1 Series2

INTERPRETATION- It can be interpreted that whirlpool has provided the highest number of convessor while a major share of dealers have not been provided with any convessor so companies should provide this service so that they can gain more sales. 68

W H

IR

6. TABLE SHOWING RATIO OF DEALERS WITH CONVESSOR TO THOSE WHO DONT HAVE ANY CONVESSOR. PARTICULARS WITH CONVESSOR WITHOUT CONVESSOR NO OF RESPONDENTS 153 67 PERCENTAGE (%) 69.54 30.46

30.46 WITH WITHOUT 69.54

INTERPRETATION- It can be observed that almost 70% of the dealers have been provided with convessor to convince customers for sale of a product.

7. TABLE SHOWING NUMBER OF GODREJ DEALERS AND WHICH PRODUCT THEY ARE DEALING WITH . 69

PARTICULARS REF REF AND W MACH ALL WMACH

NO OF RESPONDENTS 31 77 46 25

PERCENTAGE (%) 17.31 43.01 25.69 13.96

REF- REFRIGERATOR W MACH-WASHING MACHINE ALL- REFRIGERATOR WASHING MACHINE AIR CONDITIONER AND MICRO WAVE

14%

17% REF REF AND W MACH ALL WMACH 43%

26%

INTERPRETATION-It can be observed that 43% of the dealers deal in refrigerator while a small share of 26% deal in all appliances which shows that the company can capture a bigger market by trapping these dealers.

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8. TABLE SHOWING MAIN REASON FOR PURCHASE OF A PRODUCT. PARTICULARS PRICE BRAND NAME LOYALTY FEATURES DEALER SUGGESTION NO OF RESPONDENTS 62 35 48 54 21 PERCENTAGE (%) 28.18 15.90 21.81 24.54 9.55

DEALER SUGGESTION

9.55

FEATURES LOYALTY BRAND NAME PRICE 0 5 10 15 20 15.9

24.54 Series1 21.81

28.18 25 30

INTERPRETATION- The above table shows that a customer considers price features and company loyalty among the top priorities while purchasing a product.

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9. TABLE SHOWING HOW MANY DEALERS ARE AWARE OF THE CUSTOMER CARE CENTER OF GODREJ. PARTICULARS NO OF RESPONDENTS PERCENTAGE (%) AWARE NOT AWARE 141 38 78.77 21.22

RESPONDENTS INCLUDE ONLY 179 DEALERS.

21.22

AWARE NOT AWARE

78.77

INTERPRETATION- The above table shows that almost 80% of the dealers are aware of the customer care centers while those who are not aware includes new dealers and at times dealers were not present and salesman were not sure about the centers.

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10. TABLE SHOWING NO OF TIMES AREA SALES MANAGER VISITS THE DEALER. PARTICULARS EVERY MONTH 1-2 MONTHS QUATERLY NO VISITS NO OF RESPONDENTS 49 46 31 53 PERCENTAGE (%) 27.37 25.69 17.31 29.60

RESPONDENTS ARE 179 IN THIS CASE

35 30 25 20 15 10 5 0 EVERY MONTH 1-2 MONTHS QUATERLY NO VISITS Series1

INTERPRETATION-It can be observed that a large number of dealers are not covered by the area sales manager and company should make sure that they pay regular visits to the dealers to listen to their problems and complaints.

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11. TABLE SHOWING THE MOST ADVERTISED BRAND IN THE WHOLE DEALERSHIP NETWORK. PARTICULARS NO OF RESPONDENTS PERCENTAGE (%) WHIRLPOOL 39 17.72 LG 56 25.45 SAMSUNG 49 22.27 VIDEOCON 36 16.36 GODREJ 30 13.63 OTHERS 10 4.55

13.63

4.55

17.72

WHIRLPOOL LG SAMSUNG VIDEOCON 25.45 GODREJ OTHERS

16.36 22.27

INTERPRETATION The above table shows that LG is the most advertised brand while needs to advertise more in terms of television and sign boards advertisement.

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12. TABLE SHOWING THE REACTION TIME OF JOB COMPLETION. PARTICULARS 24 hrs 48 hrs Upto 72 hrs More NO OF RESPONDENTS 125 48 30 17 PERCENTAGE (%) 56.81 21.18 13.63 7.72

13.63

7.72 24 hrs 48 hrs Upto 72 hrs

21.18

56.81

More

INTERPRETATION It can be interpreted that most of the brands get the first look into the complaint within 24 hrs

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13. TABLE SHOWING ARE THE SERVICE CENTERS CAPABLE ENOUGH IN PROVIDING SERVICES. PARTICULARS YES NO NO OF RESPONDENTS 171 49 PERCENTAGE (%) 77.72 22.28

NO

Series1

YES

20

40

60

80

100

INTERPRETATION- Most of the dealers are satisfied with the centers providing services but scope for improvement can be discovered.

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14. TABLE SHOWING WHAT CHANGES AND FEATURES DEALERS EXPECT IN UPCOMMING MODELS. PARTICULARS NEW COLOURS NEW DESIGNS PRICING BETTER INTERIORS BETTER PLASTICS NO OF RESPONDENTS 32 42 25 56 24 PERCENTAGE (%) 17.87 23.46 13.96 31.28 13.40

13.4

17.87

NEW COLOURS NEW DESIGNS PRICING

31.28 13.96

23.46

BETTER INTERIORS BETTER PLASTICS

INTERPRETATION- It can be interpreted that most of the dealers want new design as well as new shades of colors. . 77

CONCLUSION The project Titled To study the Market Condition of Godrej in Kanpur The project was carried out among the Dealers in KANPUR (In consumer electronics segment). To increase the share in market and reach to the customer godrej should made Tie ups with the Retail Stores like, Next Retail Store, Big Bazaars etc. Overall objective of the study was to find out the Dealers perception about godrejs product and their view, and to find out their satisfaction towards the sale and service compare to its competitors. The study revealed the picture of Dealers perception and satisfaction which help godrej to encourage more people to be the customers/consumers of godrej. That most of dealers are happy with it Dealership And many others dealer want to switch their dealership to godrej alone and to get it with their previous dealership for other company .and also Marketing is key factor for everything in sale, and by study we get more of dealers are complained about localize marketing of godrej is not supported as compare to others, so it has to increase .at the end I want say that godrej have a good position in mind of dealers and customers . The company should keep this fact into consideration that dealers play an important role in increasing the sales of the company so special attention should be paid to the need and expectation of the dealers so that company can have a upper hand in the market on consumer appliance

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SUGGESTION Company should focus on pricing policy in comparison to its competitors because its competitors provide same products in lower rates. The company should have to focus better design for product . The company should focus on their after sale services:Company Should Increase Man Power for sales. The customer rate quality of the service as the most relevant one and hence Godrej should maintain the quality in products and after Sale services and should make improvements in this feature. Many of dissatisfied Dealers asked for more information about New schemes .So the dissatisfaction may be due to not providing the latest news about new schemes .So the company can make use of this opportunity to retain its Dealers by providing the right news.. The product design is not So charming As Compare to , LG and Samsung. As per survey most of dealer discuss about it sale which Is down due to design. Any complaint is observed from the dealers, it should be dealt quickly. This will reduce the chance for dissatisfaction. Company should try to Maintain competitive prices for consumers ,And should focus on these to keep the brand image in the minds of people. Market strategies of home appliances providers should emphasize in price strategy. 79

If any complaint is observed from the consumer, it should be dealt quickly. This will reduce the chance for dissatisfaction. so the company have to a customer care as other industries

FINDINGS Dealers feels quality of GODREJ product is Good, Like as LG and SAMSUNG. GODREJ has a better positioning in the minds of Dealers. If a individual wants to have a Home Appliances then godrej Priority comes on third number. Quality of the service provided sale after service plays an important role in keeping the existing customers and to bring new customers. GODREJS home appliances is rated very well bymost of its customers In pricing and reliability. Quality of the service provided plays an important role in retaining existing customers and goodwill is created through word of mouth. Dealers said that, People are willing to pay more for new design and latest look. A number of customers preferred GODREJ Due to the brand name of the company (GODREJ). Most of dealers said that, Customers were not happy that while they were purchasing old look washing machine then others, Most of the dealers prefer to sale simple home appliances because most of the consumer want it.

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After sales service plays essential part of customer satisfaction. More than 10% dealers have complaints regarding the after sales service of GODREJ. But a number of customers have reported it excellent and very good. Such dealers want to get the dealership of godrej. The overall satisfaction level of dealers is high.

Suggestion of dealers for how can GODREJ gains their sales.

1. Marketing. 2. Advertisement Both local and on television. 3. Enhance the quality of product. 4. Enhance the service level of company. 5. Make the Relation between dealers and company well. 6. Company should come out with new models and should give a facelift to the existing models. 7. Keep the service center under the companys guidance. 8. Launch of new model. 9. Pricing. 10. Offers. & Schemes 11. Regular supply of spare parts. 81

12. Regular visits of officials from the company. 13. Supply of products on credit. 14. Products should sport a new logo. 15. New brand ambassador.

KEY LEARNING Summer internship has been a source of learning for me. I have learned the practical application of various theories which have been given by various scholars. I learned the basic fundamentals of dealing with various dealers Every dealer was an independent identity so the relationship taught me how to get things done. Extracting critical information is not an easy task from an individual. Interpretation of various data base and analyzing the information to give various feedbacks for the company for its decision making. Decision making quality. Setting goals and getting the desired result Learned how to deal with a prospective customer which is very important in todays scenario. Learned convincing power and how to satisfy doubts raised by a customer 82

Learned how to interact with a prospective customer. How to differentiate between book knowledge and the practical application of the knowledge.

ANNEXURE 1. Name of the firm? 2. Name of the proprietor? ............................................................................................................................. ............... 3. Address? 4. Phone no of the shop? 5. Mobile no of the person? 6. Brands in which they are dealing? Brands Product abcde7. Are you dealing with Godrej? Yes.. 83

No.. Product Reasons? 8. Interested in dealing with Godrej? Yes.. No... Reasons? 9. Counter size and share of Godrej? All Brands Refrigerator . Washing machine . A/C . Micro wave Godrej

10. Has the company provided a convesor? Yes.. No... Name of the company? abc11. Marketing activities undertaken by the company? Press adv Tv adv 12. Most remembered campaign? 13. Which brand in moving well? Brand Product Model .. .. .. .. .. . . 14.How is the after sales service of Godrej? 84

 15. Are you aware of customer care centers of Godrej? Yes.. No 16. How often area sales manager visits? 17.Are the existing service centers of the brands good enough? 18. What is the reaction time of job completion? 19. What quality and features should be added in the upcoming range?

REFRENCES

Bibliography Philip Kotler and Koshy Jha, Marketing Management C .R .Kothari, Marketing Research Methodology Second Edition; 2004 Dawn Lacobucci, Kellogg on Marketing, (New York: John Wiley & Sons), 2001. (Referred as Kellogg in the Course Outline

Websites: www.godrej.com www.godrejindia.com www.godrejcp.com www.godrejappliances.com

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