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Project Report On M.K.

ENGINEERING BLUESTAR Ltd AUTHORISED DEALERS COLD STORAGE DIVISION Marketing Strategy of the Company INTRODUCTION:

M K Engineering offers a wide range of Cooling Electrical Appliances such as Cold Rooms, Bulk Milk Coolers, Central AC, Compact Deep Freezer, Dairy Coolers, Milk Chillers, Air Conditioners, Split Air Conditioners, Deep Freezers, and more.

Cold Storage Division delivers a wide variety of cooling and conservation products. It has been designed in such a way to suit all industries that keep your all types products over the extended period of time without loosing its freshness and its originality. M K Engineering are the certified dealer and distributor of Cold Storage rooms developed by Blue Star. It is an utilitarian for every sectors such as agriculture, horticulture and floriculture sector, generator of fresh produce of all types of food processing units, pharmaceutical industries, seafood and other similar industries such as dairy and hospitality sectors, as well as hotels, restaurants, and eateries. M K Engineering is the distributor of Cold Rooms manufactured by Blue Star with outstanding PUF Insulated Panels and high-tech features that attract the people of the world as it gives best cooling and conservation chambers particularly design for customers requirements.

M K ENGINEERING offer cold rooms of temperature 2 deg celcius to 8 deg celcius for Pharmaceutical product Storage, Hotels, Hospitals, Horticulture and Floriculture industry segments. We offer low temperature rooms for Pharmaceutical product storage, Ice-cream, Hotel and Fishery segments. We have a complete range of condensing units from air-cooled to water-cooled and with hermatic / semi-hermatic options. We also have flame-proof / non flame-proof evaporators with Stainless Steel body.

For more details visit www.mkeindia.page4.me

PREFACE

This project has been taken with a view to make an in depth analysis of latest &unique marketing strategies employed by Blue Star Ltd. with special reference to Air conditioners & thus uncover the reasons that have propelled the company to retain its position as leading company in AC Industry despite of stiff competition from other competitors. The present study creates awareness about the product quality & unique features put forth by Blue Star Ltd. It also provides knowledge to the readers about customer preferences & competitive analysis between various competitive firms. The present is an effort to formulate strategy to boost up the market share for ACs for Blue Star Ltd.

GENERAL INTRODUCTION Few years ago liberalization was not there in the Indian market. But slowly and gradually scene changes and liberalization paves its way in the Indian market. Advent of liberalization policy has changed the whole scenario. Liberalization policy Leads to entry of MNCs Leads to technological Advancement Leads to Fierce Competition Which in turn Makes the Customer a King Therefore, today's winning companies are those who succeed best in satisfying target customers. In other words winning companies are those who provide value for money. They are market focused and customer driven, rather than solely product focused or customer driven. The most wrenching change that the business scenario is experiencing involves acquiring a strategy to cope with liberalization.

Rising temperature and unexpected climate has lead to the invention of Airconditioner system. Thus this leads to birth of new industry known as AC Industry. I have decided to conduct a Market research on Blue Star Ltd with special emphasis on Air Conditioners. And I have selected exploratory design to conduct the market research because it is the most sound research design that is likely to achieve my research objectives. My goal is to explore rather

than conclude on the level of awareness that people have about Blue Star Air Conditioners. I was interested in knowing the expectations and apprehensions people have from the company. The Exploratory studies are used to seek small-scale information rather than definite results. I also analyzed that this research design is relatively inexpensive as compared to other research designs. OBJECTIVES OF THE STUDY Primary Objective The main purpose of this study is to determine different strategies that are adopted by the company to achieve its targets. Moreover the strategies will be evaluated to see which is best amongst them. Secondary Objective The secondary objective of the research is to find the image of the company among the customers. In brief Objectives include Analyzing the Market strength of Blue Star Ltd. Identifying potential market for launching new product and increasing sales of existing ones Explicit feed back on product performance Determine relative quality perception of Blue Star brand

RESEARCH METHODOLOGY Secondary Data I have used the secondary data relating to Blue Star Ltd. and have collectedfollowing information about various range the company has, the technology beingused by company, their marketing strategies & information about the competitors. All this information has been collected from the site www.bluestarindia.com,www.yahoo.com, search engine of Google, magazines such as Business India, Advertising & Marketing, Annual report of Blue Star Ltd.etc.

Primary Data I have used personal interviewing where primary data can be directly collected from respondents. The desired information was secured using Questionnaire. At times I also asked questions as to why the respondent has chosen AC of a particular company or what made him feel about that choice. I was keen to ensure that the respondent was taking interest while filling the questionnaire. This ensured collection of unbiased and accurate data.

To know the brand awareness, consumer perception about Blue Star and their satisfaction level, the consumer personal survey was undertaken which was based on non-disguised structure questionnaire.

LIMITATIONS Some of the dealers as well as the customers were not forthcoming withinformation as they thought it to be a waste of time. Some customers were notable to respond due to lack of awareness. 1) A number of dealers were biased towards a particular brand which was giving them better returns. 2) Some of the shop owners were not available so, contacted person was not able to present a fair view. 3) Respondents lack of time to give information and their casual attitude was a big hindrance in the study. 4) The dealers were biased by some recent experiences which they had with a particular distributor regarding the service or distribution.

DEFINITION OF AN AC Air conditioning is simultaneous control of air for: Temperature control Air freshness Filtration, Dehumidification within a confined space. In other words, AC is defined as a process, which heats, cools, cleans and circulates air and its moisture content. Components of an Air Conditioner The Air-conditioner consists of the following components 1.A Cooling Coil (evaporator coil) 2.A Condenser Coil 3.A Compressor and 4.A Fan Motor Working of an Air-conditioner A Window air conditioner cools room air by means of refrigerant. The refrigerant absorbsheat from air and becomes vapour as it flows through the

evaporator. A compressorpumps the vapour to condenser, which discharges the heat and turns the vapors back to liquid. Three important working cycles of an AC are: 1.Room side close cycle 2.Outdoor open cycle 3.The Refrigerant cycle

The room side close cycle AC sucks the hot air from the room. The air is cooled, dehumidified and redelivered back to the room, during the process the room gradually becomes cold. Outdoor open cycle The fan on the condenser side sucks the air from outside atmosphere and delivers it back to the atmosphere after taking the heat from the condenser coil. The refrigerant cycle The closed cycle in which compressor compresses the refrigerant gas and delivers it to the condenser coil and then to the evaporator coil and back. Type of Air-Conditioners: Window AC Window AC is the most compact, versatile and cheapest air-conditioning system. It has the advantage of using single motor for both compressor and cooling side. It also takes motor for both compressor and cooling side. It also takes into advantage of the usage of humidity, which is absorbed, from cooling sides to lower temperature of condensing side.

Split A.C. It is the most versatile and cheapest air-conditioning system where window ACs cannot be provided. It has the advantage of cooling any place irrespective of its location and just need a passage three inch in diameter so as to connect both sides of split AC. In split AC area covered is higher than the window AC.

Package A.C. It is used for larger areas where the tonnage is higher (approx. 3.0 tonne-15 tonnes). It consumes less power. Central A.C. It is used for cooling the area where the tonnage required is more than 50 tons. Though the capital cost is higher but the running cost is very economical. In central air conditioning a final air-conditioning is done through cold/hot water running through tubes.

COMPANY PROFILE Blue Star Limited (originally known as Blue Star Engineering (Bombay) Pvt Ltd) was founded by Mohan T. Advani in 1943. The Company was initially engaged in reconditioning of refrigerators and air-conditioners. Today, Blue Star is India's largest central air-conditioning company with an annual turnover of Rs. 600 crores, a network of offices in 29 cities and three modern manufacturing facilities. Blue Star became a public limited company in 1969 with its corporate headquarters at Kasturi Buildings in Mumbai. Blue Star is India's largest and most preferred air-conditioning and commercial refrigeration company.

With six decades of experience in providing expert cooling solutions, Blue Star has been associated with the most prestigious corporate and commercial installations in the country.

BLUESTAR BUSINESS Blue Star manufactures and markets a wide range of air-conditioning and refrigeration systems and products. These include large central airconditioning plants, packaged air-conditioning systems, split and window air conditioners; commercial refrigeration equipment such as water coolers, bottled water dispensers, ice-cube machines, deep freezers and walk-in cold rooms. BlueStar's other businesses include marketing and maintenance of hitech electronic and industrial products such as Testing Machines, Data

Communication products, Medical and Analytical Instruments and Special Control Valves. The Company has business alliances with world-renowned technology leaders such as York International, USA; Hitachi, Japan; Kolpak, USA; Vestfrost, Denmark; Electrolux, Sweden and many others, so as to offer superior products to the customers. The lines of business include Central Air-conditioning, Room Air conditioners, Commercial Refrigeration, Commercial Equipment and Professional Electronics and Industrial Products. The International Software Services business was spun-off into a separate company, BlueStar Infotech Limited (BSIL) in April 2000. BSIL provides Internet/E-commerce, HP3000/ MPE, BaaN ERP services, Client Server applications and Embedded Systems to clients in USA, Europe and Japan. This software export business was started in 1983 and is headquartered in Mumbai, at the Santa Cruz Electronics Export Promotion Zone(SEEPZ) with offices in the U.S. and U.K.

LARGEST SINGLE SOURCE OF AIRCONDITIONING

EQUIPMENT Blue Star is the largest single source for air-conditioning equipment in India. It offers the widest range of air-conditioning products - window and split air conditioners, air-cooled /water-cooled packaged air conditioners, centrifugal, absorption, reciprocating scroll, rotary screw chillers, variable air volume systems, fan coil units, air handling units, etc. Never seen, never heard, yet quietly at work in homes, hotels, offices, factories, showrooms, airports, laboratories, satellite launch stations, hospitals all over India and abroad. That's Blue Star air-conditioning.

International Partnerships In its quest to offer the most advanced air-conditioning technologies, Blue Star has entered into several technical collaborations with York International, USA, Rheem Manufacturing Co., USA and Climatrol, Italy for the manufacture of airconditioning equipment - centrifugal chillers, reciprocating chillers, screw chillers, air handling units. And collaboration with York Temp master, for variable air volume systems.

ECO FRIENDLY Blue Star has made significant progress towards minimizing and even eliminating the environmental hazards resulting from CFCs in certain refrigerants used for cooling. As a matter of fact, Blue Star is one of the few companies selected in India for funding by "The Multilateral Fund for the implementation of the MONTREAL PROTOCOL. BlueStar has already introduced 'ozone friendly' centrifugal chillers using HCFC-123, the safe refrigerant replacing CFC-11. Blue Star also markets absorption chillers, which

use water as refrigerant. All Blue Star reciprocating chillers already use HCFC22 refrigerant, which is more friendly to the environment than the older R-12. The Company actively promotes wider use of large refrigeration systems using ammonia as the refrigerant. In fact, Blue Star is a member of the International Institute of Ammonia Refrigeration, USA. CROSSING INDIA'S BOUNDARIES Blue Star's air-conditioning expertise extends beyond Indian horizons, from Indonesia in the East to Libya in the West. Blue Star has competed with other European companies on International terrain and satisfied demanding foreign consultants. Blue Star has set up a joint venture in Malaysia with Arab Malaysian Development Berhad (AMDB). The joint venture company has executed large turnkey Central Airconditioning Contracts - 21-storey Bangunan AMDB, Kuala Lumpur, 35-storeyMenara Dion, Kuala Lumpur, 22-storey Menara Pelita, Kuching, Sarawak, 48-storeyPlaza MBF, Kuala Lumpur, 18-storey Tower A and Tower B AMCORP Trade Centre, Petaling Jaya Selangor Darul Ehsan, 364-room Vistana Hotel, Kuala Lumpur, 269-roomRitz Carlton Hotel, Kuala Lumpur, ArabMalaysian SGB factory, Nilai, Negeri Sembilan, 275-room Castle Inn Hotel cum Office, Johor Baru, Johor Darul Takzim, 340-room Hilton Hotel, Seremban, Nageri Semibilan Darul Khusus, 420-room Hotel, AMCORP Trade Centre, Petaling Jaya, Selangor Darul Ehsan and Summit CentreShopping Complex, Selangor Darul Ehsan. And the list of projects completed abroad is too long to be enumerated. Some of the mostnotable are: Syria's Presidential Palaces Complex at Damascus, the University, Railwayand Radio and TV Establishments at Baghdad, the State Bank of Mauritius, theKewalram Indonesia P.T. Bandung, Henrick Hotel, Kuala Lumpur, U.S. GeologicalSurvey, Saudi Arabia and Hotel Krom, Russia.

INDUSTRIAL AND COMFORT COOLING - THE BLUE STAR STRENGTH When critical parameters are of paramount importance, when innovative solutions are sought, when sophisticated technology is required, Blue Star's expertise in industrial and comfort air-conditioning is clearly ahead. Three fourths of all man-made fiber plants in India are air-conditioned by Blue Star:Reliance, DCL, Raymonds, Shriram, Ceat, Sanghi, Orkay. Several of these have called inBlue Star for repeat jobs. A majority of software companies, hotels, airports, cinema halls and hospitals all over India have been air-conditioned by us. Blue Star has made engineering excellence a way of life and has been acclaimed by renowned consultants like Chemtex, UDHE, Tata Consultants, Du Pont, Mecon, Engineers India, Humphreys & Glasgow and Davy Powergas. The Company's dedication to quality and detail, its capability in engineering design and project management, and resources to provide efficient, cost-effective on-time airconditioning systems have made Blue Star a preferred company.

CORPORATE VISION

The company has been working on its strong & broad vision based guidelines, which aim at delivering world-class customer experience. For this it has been constantly working for the customers & modifying its strategies in their favor.

Types of Air-conditioning

The diagram below gives a broad idea of the different kinds of air-conditioning systems available in the market for various applications. Air conditioners are divided into Ducted Systems and Non-Ducted products(unitary products). Ducted systems are normally chosen for airconditioning large spaces like office floors, showrooms, departmental stores, restaurants, etc. Whereas non-ducted products (split air conditioners and window air conditioners)are mainly used for air-conditioning smaller spaces like individual rooms in an office or residence.

As the name implies, split air conditioners are split into two basic components -the indoor unit (IDU) and the outdoor unit (ODU). These two units are connected by refrigeration tubing and electrical wires that pass through an opening in the wall, barely 10 cms in diameter. By keeping the relatively noisy components, such as the compressor and condenser fan in the outdoor unit, the air-conditioned space tends to be quiet. Split air conditioners are relatively more expensive than window air conditioners but are preferred for spaces where there is no window or which require a quiet environment.

Types of compressors As mentioned earlier the compressor is the heart of an air conditioner. Different types of compressors are used in Window, Split, and Packaged Air conditioners. These include reciprocating, scroll or rotary types. All these compressors are hermetically sealed which means that the compressor consists of a gas-tight steel shell within which is housed an electrical motor and a compressor unit. a. Reciprocating compressors - These compressors typically have one or two pistons mounted on the crank shaft extension of the motor. The motor moves the piston through the crank shaft and each time the piston moves down, refrigerant gas is sucked into the cylinder. When the piston moves up the gas is pushed against the discharge valve which opens to let the compressed gas out. These compressors are available from a small fraction of a ton up to 10 ton capacities. b. Scroll compressors - These compressors are a recent innovation and are extremely energy efficient. They have only three moving parts compared to fifteen in reciprocating compressors and are eight times less noisy. Scroll compressors use two interlocked spiral-shaped members, which enclose the refrigerant gas in pockets between them. One of the spiral shaped members is

fixed while the other orbits causing the refrigerant to be squeezed into ever decreasing pockets until it reaches the centre of the spiral from where it is discharged. They are highly reliable and save up to 15% on power bills. They are gaining fast acceptance over other compressors. c. Rotary compressorsThis type of compressor has a rotor eccentric to the cylinder housing and blades, which slide to form a continuous seal for the refrigerant gas. At the beginning of the cycle a volume of refrigerant gas enters the chamber and as the cycle progress the nature of eccentricity squeezes the gas thereby compressing it. Rotary compressors are considered unsuitable for areas with high ambient temperatures and are limited to use in window and mini split air conditioners. These compressors are not repairable and have to be replaced in case of a breakdown.

Product Range Blue Star manufactures a range of Ducted Splits and Packaged ACs (both aircooled and water-cooled). Through its agreement with Rheem, Blue Star has access to world class manufacturing processes. The sophisticated facilities installed include: a range of imported fabrication equipment; an advanced powder coating paint line; convey or belt system and an on-line computerized manufacturing resources planning system, which streamlines and integrates the entire process. All of which ensure that our customers get the best air-conditioning technology. Packaged ACs

Air-cooled or Water-cooled, these versatile units in 5, 7.5, 10 & 15 ton capacities can individually cool 75 to 250 meters of floor space. In multiples they can handle entire floors and buildings. These come with imported compressors. Optionally they offer packaged air conditioners fitted with scroll compressors, which are significantly more reliable because of only three moving parts within the compressor, compared to 15 moving parts in reciprocating compressors. The scroll compressors are also eight times quieter. We have re-engineered the complete system to ensure a saving of up to 25% on energy cost to the customer. The range is 5.5, 8.3, 11 and 16.5 TR. This product has already begun to revolutionize this market, and has captured a significant market share in the few months after launch.

DUCTED SPLIT AC Ducted Split Air conditioners from India's No. 1 central air-conditioning company bring to offices, banks,

Software development centers, hospitals, hotels, restaurants and showrooms a new concept of comfort cooling. Advantages of Comfort Cooling The cooling unit is safely tucked away and all that is visible are the sleek lines of the ducting that blend so beautifully into your decor. Sleek, slim and just 425 mm in height, the unit fits into false ceilings and gives an ambience with low noise levels, as all internal surfaces are acoustically insulated. Also available with imported energy efficient scroll compressors for higher reliability, low noise and power saving. The range is 5.5 and 8.3 TR.

SPLIT ACS Blue Star, India's leading central air-conditioning company, presents a stateofthe-art range of Split Air conditioners. Deluxe Hi - Wall Split The problem with normal air conditioners is that while they start off cooling you

well, pretty soon they begin freezing you. A problem that we have cleverly taken care of in our air conditioners. It has an electronic thermostat that's accurate and reliable, fuzzy logic control that adjusts performance automatically and an energy-efficient compressor amongst others. Manufactured at Blue Star's state-of-the-art factory; it includes reliable components, excellent after-sales service and friendly looks. It's just what you'd expect from the leaders in air-conditioning. CORDED HI - WALL SPLIT AIRCONDITIONERS The Corded Hi-Wall Split Air conditioner, comes to you from the acknowledged experts in air-conditioning technology, who are also the most preferred - Blue Star. On offer is a wide range of capacities. The lowest being 1 ton, and the highest, 4tons.

Each and every air conditioner is loaded with a host of thoughtful and exciting features. After all, nothing less is expected from the leaders in air-conditioning

CONCEALED SPLIT AC

You and your interior designer have taken enormous care to create great looking interiors. You want to conceal the air conditioner so that a neat central air-conditioning look is maintained. Enter the Blue Star Concealed Split. A powerful machine that believes in efficiently working behind the scenes. Apart from impeccable cooling, a Concealed Split is a big bonus when wall and floor space is not available. Its the sleekest indoor unit in the market and stands less than 11" tall (conveniently allowing higher head room under a false ceiling). So, if you're looking for the compliment to your dream office, insist on the Concealed Split. Like everything with pedigree, it can only be felt and not seen.

Deluxe Hi - Wall Split Air conditioners The Deluxe Hi-Wall Split Air conditioner comes to you from the acknowledged experts in air-conditioning technology, who are also the most preferred - Blue Star. On offer is a wide range of capacities. The lowest being 1 ton, and the highest, 4 tons. Each and every air conditioner is loaded with a host of thoughtful and exciting features. After all, nothing less is expected from the leaders in airconditioning.

CASSETTE AIRCONDITIONING SYSTEMS Blue Star, in its continuing effort to provide innovative cooling solutions for your business, brings you the Cassette Air-conditioning Systems. They not only look contemporary, but are also extremely quiet and installation friendly. They blend beautifully with stylish interiors by virtue of their excellent looks, fit & finish. Their compactness and ability without necessary ducting makes them an ideal choice where ducting is not practical (due to structural constraints such as low cross beams).

WINDOW ACS - TURBO ROTARY DELUXE MODEL Blue Star Turbo Rotary ACs come in innovative capacities. Like 1.25T. Which means that you don't have to compromise and settle for an AC of higher tonnage, and consequently, higher power consumption. Both these models are fitted with Mitsubishi compressors for virtually silent operation and come with anti-bacterial filters, corrosion resistant

blue fins and full function remote (optional). All in all the best AC deal you're likely to get.

WINDOW ACS - TURBO ROTARY SUPER DELUXE REMOTE MODEL Blue Star Turbo Rotary ACs come in innovative capacities. Like 1.25T. Which means that you don't have to compromise and settle for an AC of higher tonnage, and consequently, higher power consumption. Both these models are fitted with Mitsubishi compressors for virtually silent operation and come with anti-bacterial filters, corrosion resistant blue fins and full function remote(optional). All in all the best AC deal you're likely to get. WINDOW ACS - DELUXE MODEL Blue Star cooling standards are so high that even the experts recommend us. Little surprise then when we were chosen to air-condition India's most prestigious establishments. Like Parliament House, Bombay Stock Exchange and the Reserve Bank of India. You'll find this very expertise in cooling, in our new window air conditioners. As well as brand new exciting features. For example, an electronic thermostat that's accurate and reliable, fuzzy logic control that adjusts performance automatically and a low energy-consuming compressor, besides others. Made at Blue Star's state-of-the-art factory, your window ACs includes dependable components, excellent after-sales service and stunning looks. WINDOW ACS - SUPER DELUXE REMOTE MODEL

Blue Star cooling standards are so high that even the experts recommend us. Little surprise then when we were chosen to air-condition India's most prestigious establishments. Like Parliament House, Bombay Stock Exchange and the Reserve Bank of India. You'll find this very expertise in cooling, in our new window air conditioners. As well as brand new exciting features. For example, an electronic thermostat that's accurate and reliable, fuzzy logic control that adjusts performance automatically and a low energy consuming compressor, besides others. Made at Blue Star's state-of-the-art factory, your window ACs includes dependable components, excellent after-sales service and stunning looks. BLUE STAR LTD, MANUFATURING REFRIGERATION UNITS AND PUF INSULATED PANNELS:COLD ROOM:The efficiency, hygiene and life of a cold room depend on the panels and accessories that go into making up the structure. Blue Star's cold rooms are therefore constructed using pre-fabricated PUF panels designed specifically for such applications, and manufactured to international standards of quality and reliability at state-of-the-art facilities. These panels are packed with advanced high-density foamed-in-place PUF insulation to ensure high-efficiency insulation, and metal-finished (a choice of aluminium, pre-painted steel, stainless steel, galvanised steel or Galvalume). Modular in nature, these tongue-and-groove panels in a range of thicknesses and dimensions, are designed to interlock with ease at site to form cold rooms of any size and for any application. Each part of the cold room - walls, ceiling, floor, doors and even T-walls and corners - have special panels designed for the purpose to ensure perfect fit. These modular cold rooms are not just easily assembled at site. They are easily disassembled too and moved when required, or even enlarged or split into multiple rooms as later needs may demand. A range of options and accessories ensure that the entire cold room supplements the efficiency and ruggedness of the PUF panels:

Flush-fit doors: Aesthetic, efficient, heavy-duty flush-fit doors with FRP door perimeter Cam lock: Posi-loc locking assemblies that provide perfect alignment of walls, ceiling, floor, corners and door frames Hardware: Heavy-duty cast alloy handles and hinges with attractive brushed-chrome finish Heated air vent: Tri-action heated air vent to eliminate pressure and vacuum variations inside the walk-in cold room Interior and exterior ramps: Ramps allow ease of movement of material without damage to floor Sweep gasket: Airtight heavy-duty sealing gasket below door with a double sweep, remains flexible at any temperature Posi-seal closure: Cushions closing of door, making it noiseless and firmly shut Vapour-proof light fixture: Trouble-free lighting within cold room

This wide range of world-class panels and accessories ensures that Blue Star's cold rooms are air-tight, hygienic, highly energy-efficient and built for a lifetime.

WHO USES COLD STORAGE: Cold Storages are purchased mainly by the industries dealing with Perishable commodities, Ice Creams, Hotel Industries, etc. METHOD FOLLOWED FOR THE MARKETING OF COLD ROOM: 1. Contacting the prospect to know their requirements and educate about the product. 2. Measuring the room size as per requirement. 3. Designing the best product for the prospect or the customer, so that the willing of his purchase increases. 4.
5.

Prepare a quotation and send it to the customer.

When the customer approves, the products reaches at their end within 4 weeks.

MODULAR COLD ROOM

OBJECTIVES OF THE COMPANY

To ensure customers confidence through product quality & efficient & effective service. To continually enhance Companys worth to its shareholders and investors through sound investment and profitable operation. To demonstrate a real concern for its employees and to constantly improve the quality and value of their job and career advancement. To be a good corporate who contributes positively to its community by protecting the environment and working for public welfare

To respect the laws, rules and customers of the land and to ensure that the conduct of all company activities will always be to the highest ethical standards To identify and determine suitable marketing strategic for boosting up the market share of AC, particularly for Blue Star Ltd To make a detailed study of the Acs, in terms of its existing market size and future market potential.

SWOT ANALYSIS OF THE BLUE STAR COMPANY Strengths: Only Blue Star manufactures open-type centrifugal chillers with ozone friendly refrigerant HCFC 123 Only Blue Star manufactures variable air volume systems for economic localized cooling control

Only Blue Star manufactures air handling units with dependable ratings to factory precision and the widest choice with single skin, double skin, horizontal, vertical, ceiling suspended and unitary. Air-conditioning of the largest number of synthetic fiber plants in India exceeding 25,000 Tons and 36 customers Largest Industrial air-conditioning contracts in India - RBI Note Mudran Private Limited: Rs.40 crores. First to manufacture semi hermetic reciprocating compressors in India to international standards First air-conditioning company to introduce the concept of a Comfort Shop. It has a strong setup, Willis Carrier Engineering Center, to provide technological support to develop new products and upgrade existing ones. It has successfully introduced finance schemes that have taken airconditioners out of the luxury category and made it affordable for the homebuyer. Weaknesses: Considered as premium brand so middle class people think it is unaffordable. Although BLUE STAR protects its Position in Domestic AC market but is regularly losing market share. Market penetration is still very low. Low qualities resulting in exports prices being non competitive. Opportunities: Confederation of Indian Industry (CII) has urged the government to reduce special excise duty (SED) on air-conditioners from 16% to 8% in the forthcoming budget. Opportunity to influence Growing Indian middle class in influencing their decisions with regard to the products offered by Blue Star through comparatively lower prices. Advent of Internet provides an excellent opportunity to reach to a large base of customers and cut costs. The increasing presence of multinationals in India for manufacturing be it Samsung, LG, Carrier, Hitachi, thus providing an opportunity for upgrading the quality of manufacture in the country.

Threats: Likely to face fierce competition from domestic companies as they have wellacknowledged brands, an extensive distribution network and better insights about the local market conditions. Increased threat from cheaper imports, especially from China MNCs like Samsung, Carrier, LG and Voltas are continuously raising their share while Blue Star despite of increasing sales is losing its market share.

INDUSTRY AND MARKET OVERVIEW The air-conditioning industry has a total market size of approx. Rs. 1500 crores. It can be classified into windows, split, packaged and Chiller Airconditioners. The split is divided into ducted and non-ducted. The window and split AC have a current market of Rs. 900crores and the central including Chillers command a market of Rs. 600 crores. Air-Conditioner in India Product Segment Window and Split 900 (Approx.) Central and Chiller 600 (Approx.) Size (Rs. in crores)

The domestic Window Air-conditioner has been growing at the fastest rate but this has been accompanied by increasing competition leading to low profit margins. Profits in this segment are driven by volume growth. Against most developing countries, Indian market is Window AC oriented both commercially as well as household. Considering the low penetration of ACs, the segment is likely to grow, at least for the next 5 to 10 years. The market for air-conditioners was earlier dominated by the unorganized sector as a result of high excise duty. This sector accounted for around 55 to 60% of the market shares only 2-3 years ago. The proportion used to be 30:70 during 91-92. Then lowering of excise duties from 110%to 40% favoured the organized sector by narrowing the price gap e.g., a 1.5 ton air-conditioner which costs Rs.45,000/- in 91-92, now costs below Rs. 30,000/- in the organized sector against Rs. 24,000/- in the unorganized sector.

The Government Policy Regarding ACs The attitude of the government to the industry in general has been influenced by the perception of white good as a luxury item. Only after 1993 did the government liberalize its attitude towards white goods. Till 1994, excise duty on ACs varied from Rs.7,000/- for 0.5 tonne ACs to Rs. 9,000for 1.5 tonne models. In the 1994-95 to 1996-97 budgets, the govt. gave considerable relief to the Air-conditioning sector. The excise duty was reduced from 80% to 60% in1994-95 and from 60% to 30% in the following years. In the Exim policy, ACs continued to be in the negative list, which means they cannot be imported without license or as baggage. Profitability Margins in the industry vary depending upon the segment, model and sizes, between abroad range of 10 to 20%. However margins in the window segment are the least. But these are reasonable in the case of Split ACs. Even then, for players who have their own Compressor Manufacturing facilities, margins are higher. Margins are highest in Central and Packaged Air-conditioning segments ranging between 20-24%. Important Factors The important factors that govern profitability in the Air-conditioning Industry are Product Technology, Volumes, Distribution Network, After Sales Service and Aesthetics. Most critical in the Product Technology is the Compressor, which contributes about 40% of the total cost. The most common type is reciprocating compressor. This is well suited for the Indian conditions where dust and ambient temperatures are relatively high. But the wear and tear is quite high necessitating frequent repairs.

The rotary compressor is suitable for conditions where temperature does not exceed 55degree Celsius. Beyond this, its cooling efficiency decreases. Hence it is suitable for coastal areas like Mumbai where temperatures are low as compared to central and northern India. Also it cannot withstand voltage fluctuations, which are common in India and once spoiled it cannot be repaired. But the advantage is that it is much more efficient than the reciprocating one at moderate temperatures, consuming less power with negligible wear and tear problems. The latest compressor technology is the scroll compressors. It has no part, which can cause wear and tear, is very efficient under variety of conditions and can be repaired instead of being replaced. The three world leaders in compressor technology Copeland, Bristol and Tacumbch already have a presence in India through their collaboration with Kirloskar, Carrier Aircon and SIEL respectively. Since this is a volume driven business in the window segment and technology driven in the package segment, distribution network and after sales services are the deciding factors in these two segments respectively. Being a consumer durable industry the activities aspect too is important. While 40 to 45% of the sales in the window segment come from first three months of April to June and the rest from the other months, there is no such seasonality in other segments, so companies have to manage inventory with minimum cost. Outlook During 2000-01 a total of about 7 lakh air conditioning units were sold and this is expected to rise to a phenomenal 10 lakh units by the end of 2004. The industry has been growing at a healthy compound rate of 30% for the past three years and this pace is expected to continue in the near future. While the growth rate in the domestic window segment is expected to be highest at

around 50%, other segments are also expected to register healthy growth rates of around 28%. With all the major players investing money towards higher capacities and new entrants setting up their plants, supply is expected to keep pace with demand. Increasing income levels and change in life-styles have led to heavy demand for consumer durables, esp. Air conditioners, washing machines and refrigerators. Since last two three years they have penetrated most urban households. Today, white goods is one of the most brand driven product segments where companies success depends upon marketing power in terms of building brand equity and being able to maintain and support nation-wide sales and distribution network is a prime requirement for effective market penetration. The cost of servicing and maintaining big

distribution network is phenomenal and this is one of the factors that resulted in regional restriction of some brands. In future demand composition is expected to tilt towards corporates, as more electronic gadgets are used at the work place. The focus will shift from comfort cooling, to process cooling where precise ambient conditions have to be maintained which naturally means that technology will play an important role.

Market Share In Central Air-conditioning (30 tons and above) This market has remained stagnant since past three years. Margins from this segment areas low as 7-8%, which makes it less attractive compared to others. Leading players in this segment areshifting their focus towards the faster growing segment-Room ACs. In Mini Split Air-conditioners (1-3 tons) The unitary products would include the window ACs and the mini-splits (without ducts).These ACs are ideal for rooms with low heat loads. They are available in the capacity range of 0.5 TR to 3 TR. The room AC sector caters to residential premises, offices and small establishments. Overall growth rate in this segment is about 15%.

Split ACs are so named because the unit is 'split' into two parts. The compressor and the condenser forming an outdoor unit and the cooling coil remaining as an indoor unit. Split units can be with or without ducts. In PACs, the unit is placed in a separate room and the cold air is carried through ducting to the required areas. It is suited for those establishments that are not large enough to go in for a central system. This segment is growing at 25%. With many more show rooms and commercial establishments companies the future looks bright for this segment.

Recent Developments Blue Star at the Threshold of VRF technology. The technology (called variable refrigerant flow or VRF), invented by Daikin of Japan, is now being developed in India by large and established players including LG, Voltas and Blue Star. BlueStar, which currently imports and sells Sanyo VRF units in India, plans to manufacture its own VRF ACs this year, and will position its products competitively against imported ones. Blue Star recently executed four major projects to set up perishable cargo handling refrigerated facilities at Ban galore, Pune, Hyderabad and Chennai airports. Blue Star, leaders in air conditioning, have air conditioned many prestigious establishments such as Parliament House, Bombay Stock Exchange and Reserve Bank of India. It is this very same expertise that goes into their new window air conditioners.

Blue Star sets aside Rs 8 crore campaign-The Rs 601-crore Blue Star Ltd central air conditioning and commercial refrigeration majorhas earmarked a total investment of Rs 8 crore on a new campaign for this summer, Blue Star Ltd vice-president (marketing) N Sivasankaran told FE. He added: This is part of our new brand-building exercise for promoting our entire range of Blue Star ACs. The main objective behind the move is to showcase Blue Stars strengths in providing cooling solutions. The value proposition for the new campaign is Cooling solutions to help your business do better .

Blue Star is planning to widen its reach for its recently launched Help line Campaign to many markets in India which will promote its toll- free number 1600-2222-00 to address common customer queries. It includes queries such as what capacity of AC to buy, whether to buy a window or a split AC among other things. Besides, it will also provide an SMS option for cell phone numbers. For the purpose, the company has set up a centralised call centre at Thane in Mumbai.

CONCLUSION

Blue Star is the largest single source for air-conditioning equipment in India. Blue Star is India's largest and most preferred air-conditioning and commercial refrigeration company. Through its strategic long-term tie-ups with key and critical auxiliary

manufacturers, Blue Star provides its customers many benefits. The brands vision is to deliver excitement to the consumers, by providing comfort at its best. Complete control over core components & technology. The company has strong potential to grow & that through greater innovations. In addition to corporate sector the company has the optionto step into the local households by understanding their psychology. Blue Star is India's largest central air-conditioning company. In short it can be said that the company is still growing by making constant efforts.

With over six decades of experience in providing expert cooling solutions, Blue Star has built an enviable reputation amongst the corporate and commercial segment. Blue Star Ltd understand the dynamics and intricacies of each industry and are in a position to recommend and execute the most optimal solution. We haven't just bagged some of the most prestigious installations, but also executed them efficiently within the given time frame. It's our endeavor to create new paradigms in this field thereby creating a benchmark.

QUESTIONNAIRE

Name:____________________________________ Address:__________________________________ Occupation:_______________________________ Age:______________ Gender:__________


1) Are you aware of Blue Star Cold Storages? (a) Yes (b) No

2) How did you come to know about the Blue Star Cold Storages? Television Ads Magazines Newspaper Internet Any Other
2) Do you have a Blue Star Cold Storages? (a) Yes (b) No

4) Are you satisfied with your Cold Storages & the after sales service provided by the company? Yes No

5) What do you like the most about the Blue Star Cold Storages? Looks Price Durability None 6) How will you rate the pricing policy of Blue Star in comparison to other brands like Rainek, Voltas, Celfrost, Carrier, etc. H igh Low Or Somewhere in between 7) If you have to buy one more Cold Storage then Cold Storage of which brand would you prefer most? Blue Star Rainek Voltas Carrier Any Other 8) What is your opinion regarding Blue Star Cold Storages? Reliable Long Lasting Technologically strong Innovative None

9) Any changes which you would like to bring among Blue Star Cold Storages. Improve Quality Increase variety Reduce Prices Introduce more schemes No Change