EXECUTIVE SUMMARY

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.

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. 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. So we decided to conduct a Market research on Blue Star Ltd with special emphasis on Air Conditioners. And 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. And 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. And have also analyzed that this research design is relatively inexpensive as compared to other research designs.

The main focus of this report is to study the customer satisfaction level with the product performance in Delhi.

CHAPTER -1 INTRODUCTION

CHAPTER-1 ABOUT THE INDUSTRY 1.1 Historical Developments

The Electronics Industry in India took off around 1965 with an orientation towards space and defence technologies. This was rigidly controlled and initiated by the government. This was followed by developments in consumer electronics mainly with transistor radios, Black & White TV, Calculators and other audio products. Colour Televisions soon followed. In 1982-a significant year in the history of television in India - the government allowed thousands of colour TV sets to be imported into the country to coincide with the broadcast of Asian Games in New Delhi. 1985 saw the advent of Computers and Telephone exchanges, which were succeeded by Digital Exchanges in 1988. The period between 1984 and 1990 was the golden period for electronics during which the industry witnessed continuous and rapid growth. From 1991 onwards, there was first an economic crises triggered by the Gulf War which was followed by political and economic uncertainties within the country. Pressure on the electronics industry remained though growth and developments have continued with digitalization in all sectors, and more recently the trend towards convergence of technologies. After the software boom in mid 1990s India's focus shifted to software. While the hardware sector was treated with indifference by successive governments. Moreover the steep fall in custom tariffs made the hardware sector suddenly vulnerable to international competition. In 1997 the ITA agreement was signed at the WTO where India committed itself to total elimination of all customs duties on IT hardware by 2005. In the subsequent years, a number of companies turned sick and had to be closed down. At the same time companies like Moser Baer, Samtel Colour, Celetronix etc. have made a mark globally.

1.2 Current Scenario

In recent years the electronic industry is growing at a brisk pace. It is currently worth US$ 32 Billion and according to industry estimates it has the potential to reach US$ 150 billion by 2010. The largest segment is the consumer electronics segment. While is largest export segment is of components. The electronic industry in India constitutes just 0.7 per cent of the global electronic industry. Hence it is miniscule by international comparison

India is also an exporter of a vast range of electronic components and products for the following segments Display technologies Entertainment electronics Optical Storage devices Passive components Electromechanical components Telecom equipment Transmission & Signaling equipment Semiconductor designing Electronic Manufacturing Services (EMS)

This growth has attracted global players to India and leaders like Solectron, Flextronics, Jabil, Nokia, Elcoteq and many more have made large investments to access the Indian market. In consumer electronics Korean companies such as LG and Samsung have made commitments by establishing large manufacturing facilities and now enjoy a significant share in the growing market for products such as Televisions, CD/DVD Players, Audio equipment and other entertainment products. The growth in telecom products demand has been breathtaking and India is adding 2 million mobile phone users every month! With telecom penetration of around 10 per cent, this growth is expected to continue at least over the next decade. Penetration levels in other high growth products are equally high and growth in demand for Computer/ IT products, auto electronics, medical, industrial, as well as consumer electronics is equally brisk. Combined with low penetration levels and the Indian economy growing at an impressive 7 per cent per annum, the projection of a US$150 Billion+ market is quite realistic and offers an excellent opportunity to electronics players worldwide.

1.3 Electronic Manufacturing Services

India is well-known for its software prowess. But on the hardware front, the progress is rather slow. However, the country has been making gains in this sector also. Already, 50 Electronics Manufacturing Services (EMS)/Original Design Manufacturers (ODMs) providers are operating in India, ranging from global players including Flextronics and Solectron to indigenous firms including Deltron, TVS Electronics and Sahasra. Further moves by international players are expected to add production in India in the coming years.

Indias contract-manufacturing business is expected to nearly triple in revenue over the next five years, a development that will present both opportunities and potential pitfalls for the worldwide electronics supply chain. Revenue generated by Electronics Manufacturing Services (EMS) providers and Original Design Manufacturers (ODMs) in India will expand to $2.03 billion in 2009, rising at a CAGR of 21 per cent from $774 million in 2004. Indian EMS/ODM revenue grew by 20.8 per cent to reach $935 million in 2005. Obvious allure of locating electronics production in India is the nations low labor costs. Labor costs for conducting electronics manufacturing in India are between 30 to 40 per cent less than in the United States or in Western Europe. Other equally important benefits from operating in India include a fast-growing domestic market, an excellent education system, the nations technology parks and the recent improvements in the countrys transit and utility infrastructure. However, the Indian contractmanufacturing industry is not expected to pose a significant threat to Chinas position as the epicenter of electronics manufacturing in the short term. Indias contract manufacturing activities primarily serve the nations indigenous demand.

2. MAJOR PLAYERS
2.1 Solectron Solectron Centum Electronics Limited is the leading Indian company offering state of art solutions for Frequency Control Products (FCP), Electronic Manufacturing Service (EMS) and Hybrid Micro Circuits (HMC). Solectron has a manufacturing unit and design centre in Bangalore and a post manufacturing centre in Mumbai. The EMS operation focuses primarily on the domestic market. For the year 2005 the revenue was US$ 10 million with a net profit of US$ 2 million.

2.2 Flextronics Flextronics entered India in 2001 when it purchased a Motorola facility. Flextronics maintains a Bangalore facility with 18,000 sq ft and 297 employees. The products manufactured are engine management Ccrd, TV tuners, set top box, energy meters, cellular phone, networking cards and WLL wall sets.

2.3 Jabil Circuits Jabil Circuit operates a 51,000 sq. ft. plant in Pimpri, which the provider took over from Philips in 2002. The Pimpri plant manufactures TV analog monitor cards and certain audio products for Philips. All production today is for the Indian market. In December 2004, Jabil Circuit opened a 175,000-square-foot facility in Ranjangaon that offers printed circuit board assembly, enclosure integration, and distribution and repair services, along with in-region design service support. The site serves the consumer, instrumentation, networking, peripherals and telecommunications industries. 2.4 Samtel Group The Samtel group is the largest Indian integrated manufacturer of a wide range of display devices like Colour and B&W TV picture tubes, tubes for avionics, medical and industrial applications, CRT glass, electron guns, heaters and cathodes, deflection yokes and engineering services. Samtel has registered many patents for developments in video display technology. It is an ISO 9000, UL and ISO 14000 certified company. Samtel has acquired a facility in Germany to manufacture high tech, high resolution CRTs for demanding applications such as aircraft avionics, medical monitors and a variety of industrial applications through a continuous focus on R&D. Another major player and exporter in this segment is Hotline Group which manufactures B/W and Colour Picture Tubes. 2.5 Moser Baer India Ltd. In the Optical Storage Device segment, Moser Baer India Ltd., is today the world's third largest optical CD maker in an industry dominated by Japan and Taiwan. MBIL supplies to a number of branded players like Sony, Verbatim, TDK, Maxell, Imation, Samsung etc, and has collaborative R&D programs as well as reciprocal training programs with these world class companies.

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 air-conditioning plants, packaged airconditioning 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. Blue Star's other businesses include marketing and maintenance of hi-tech 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. 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 air-conditioning equipment - centrifugal chillers, reciprocating chillers, screw chillers, air handling units. And collaboration with York Tempmaster, 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. Blue Star 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

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).

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.

PRODUCT RANGE:

Blue Star manufactures a range of Ducted Splits and Packaged ACs (both air-cooled 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; conveyor 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 AC: .

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 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 state-of-the-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, 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 air-conditioning.

CONCEALED SPLIT AC

Concealed Split is a big bonus when wall and floor space is not available. Its thesleekest 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 air-conditioning.

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. 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-ofthe-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.

CHAPTER 2 ABOUT THE TOPIC LITERATURE REVIEW

ABOUT THE TOPIC

STRATEGIES FOR GROWTH
Blue Star has identified mega air-conditioning projects within the country and abroad as an opportunity area for growth. At the other end of the spectrum, the Company has aggressive plans to enhance its share in the growing market for window and split air conditioners, with a specific focus on corporate and commercial customers. Blue Star has ambitious plans to expand its commercial refrigeration business as well. Encouraged by the recent break-through orders from Sri Lanka, Yemen, Maldives and Armenia for water coolers, room airconditioners and packaged airconditioners, the Company wants to strengthen its exports operations as well. 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 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 AIR CONDITIONER: A Window air conditioner cools room air by means of refrigerant. The refrigerant absorbs heat from air and becomes vapour as it flows through the evaporator. A compressor pumps the vapour to condenser, which discharges the heat and turns the vapors back to liquid. Three important working cycles of an AC are:

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.

REFERGERANT 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.

.TYPES OF COMPRESSORS:
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 upto 10 ton capacities.
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.

Rotary compressors - This 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.

MARKETING STRATEGIES: PRODUCT AWARENESS:

Advertising is the main tool in the hands of the company so as to make the consumers aware regarding the different products available in the market. Above all Advertising is a good business. Advertising is the marketing force, which helps in mass selling and distribution. The company gives their advertisements through Road side hoardings, banners & signboards Newspapers like Times of India, Hindustan Times, Magazines like India Today, Business Outlook, etc. It is about to begin with TV Advertisements Consumers come across advertisements for their brands everywhere - television, print, posters, Internet and through sponsorships and goodwill campaigns. With the changing face and speed of communication today, the company is focused on using media specific to audiences. STRONG DEALER NETWORK The Company has got a strong dealer network all over India and the products are available in each town and area.

CREDIT FACILITES AND DISCOUNT Dealers, retailers, sub-dealers are also vital to be due to be given due importance. It is also necessary to understand the dealers, retailers, and sub-dealers because they are one of the important people who can push the sales of the company. It was found that dealers mainly want that the company should give them credit facilities and discounts. BLUE STAR is the overall winner in its category. And according to them the dealers are also the controller of the sales to some extent. One of the important information is that most of the dealers ask the customers to wait and assure him the delivery if the particular brand is not available. For Example, BLUE STAR comes out with new schemes for dealers every month for special promotions. Special margins are made available to dealers from time to time. Overall the company operates as many as half-a-dozen schemes at any given time. Moreover the company ensures that dealers accounts are reconciled every quarter. CUSTOMER CARE: It was found that the company more or less analyses what customers are looking for and then incorporate those features in their products. The company provides quick & efficient after sales services. The service mission of BLUE STAR is to become the most customeroriented company in the country, by building a proactive service organization that continuously strives to create customer satisfaction, by internalizing the best practices of customer relationships management. WONDERFUL INNOVATIONS IN BLUE STAR PRODUCTS : Blue Star launches stylish split air conditioners

Air-conditioning and Commercial Refrigeration major, Blue Star, has launched a new range of hi-wall split air conditioners across the country. The new range comes in two versions - one with an electronic controlled cordless remote and the other with an electronic controlled corded remote. Available in capacities ranging from 1 ton to 4 tons, these aesthetically appealing air conditioners come with a host of features like fuzzy logic, sleep mode, programmable timer, oscillating louvers, auto restart and non-volatile memory. The outdoor unit, which houses the all important heart of the air conditioner, the compressor, is capable of withstanding a 1000-hour salt spray test, making it an ideal choice for coastal areas. These air conditioners are also attractively priced, starting from Rs 26,720 onwards.

Blue Star launches aesthetically appealing Cassette ACs

Central air-conditioning and Commercial Refrigeration major, Blue Star, has launched a new range of contemporary and aesthetically appealing Cassette Air-conditioning Systems. These systems blend beautifully with stylish interiors. Apart from its looks, these systems are also extremely silent. Cassette air-conditioning systems is the ideal choice where ducting is not practical, due to structural constraints such as low cross beams and low ceilings. The Blue Star Cassette ACs distribute cool air in four directions without ducting and come with a host of powerful features apart from remote control for ease of operation. They are also installation friendly. They incorporate a scroll compressor, which ensures that the system is energy efficient and maintenance free. The systems come with newly designed aesthetically superior low noise outdoor units.

Blue Star launches new Turbo Rotary Remote Air conditioners

Blue Star has launched a new range of sleek, stylish and contemporary turbo rotary room air conditioners. These air conditioners, which are available in unique capacities of 1.25 and 1.75 Tons, incorporate a Mitsubishi Rotary compressor, anti bacterial filters and corrosion resistant condensers to ensure silent operation and substantial savings in electricity bills. Blue Star, who are currently leaders in the Air-conditioning segment, have nearly six decades of experience in providing expert cooling solutions not only in India but also overseas. Its commitment to add value to customers in terms of design, installation and after sales service has resulted in it being associated with the most prestigious projects and companies.

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. Blue Star, 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, 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 airconditioning 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 .

CHAPTER 3 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

3.1 Research 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.

3.2 Purpose of the study: 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.

3.3 Research Methodology: Research methodology is a collective term for the structured process of conducting research. A research is carried out by different methodologies which have their own pros and cons. R e s e a r c h methodology is a way to solve research in studying and solving research problem along with logic behind them are defined through research methodology. 3.3.1 Research Design: Research Design is usually conducted during the initial stage of the research process. The preliminary activities undertaken to refine the problem into a researchable one need to be formal or precise. Exploratory Research The purpose of the Exploratory Research is to progressively narrow the scope of the research topic and to transform the discovered problems into defined ones, incorporating specific research objectives.

Qualitative Research The purpose of Qualitative Research is to explore issues, understand phenomenon and answer questions. In our research we need comparison between different stock brokers, so this is based on all quantitative data. Focus groups, in-depth interviews, content analysis, ethnography, evaluation and semiotics are among the many approaches that are used.

3.3.2 Data Collection Techniques The following techniques are used for collecting the data in this research: Survey Face-to-Face Interview Telephonic Interview

3.3.3 Sample Design A sample design is a definite plan for obtaining a sample from a given population. We used the Non-Probability Sampling Design: Under non-Probability Sampling Design, we used Convenience sampling it is a non-probability sampling technique

where subjects are selected because of their convenient accessibility and proximity to the researcher Many researchers prefer this sampling technique because it is fast, inexpensive, easy and the subjects are readily available

3.3.3.1 Population The population of the research was National Capital Region (NCR).It is restricted to Greater Noida where I have visited people randomly nearby my locality, different shopping malls, small retailers etc. 3.3.3.2 Sample size This refers to the number of items to be selected from the universe to constitute a sample. The sample size in this project is 100.

3.3.3.3 Sampling Method Convenience sampling method is used in this project. The sample is selected in a random way, irrespective of them being investor or not or availing the services or not. It was collected through mails and personal visits to the known persons, by formal and informal talks and through filling up the questionnaire prepared.

3.3.4 Method of Data Collection Data collection is a process of preparing and collecting data. While deciding about the method of data collection to be used for the study the researcher should keep two types of data: Primary Data Secondary Data Primary Data In the Analysis we used personal interviewing where primary data can be directly collected from respondents. The desired information was secured using Questionnaire. At times questions can be asked as to why the respondent has chosen AC of a particular company or what made him feel about that choice. 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. Sources of Primary Data: Telephonic Interview Face-to-face interview Company Prospectus and Literature Questionnaire

Secondary Data In this analysis secondary data relating to Blue Star Ltd. and have collected following information about various range the company has, the technology being used 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. Sources of Secondary data: Newspapers, Internet, Magazines and Trade Journals. Company Database Employees of the company. Publication of books, company records, brochures, catalogues and other documents. Reports and publications of Government department and international bodies..

3.3.4.1 Instrument for Data Collection Questionnaires Telephone Internet

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

CHAPTER- 4 DATA ANALYSIS AND INTERPRETATION

ANALYSIS AND INTERPRETATION

1. Are you aware of Blue Star Acs? AWARENESS Basis Yes No Total Response 60 40 100 Percentage 60 40 100

Table no. 1.1

Figure 1.1 Interpretation: In a random sample of 100 people 61 people were found to be aware of Blue Star Acs. and 40 % of people are not aware of blue star because of presence of others brands as well like Samsung, voltas etc.

2. Any changes which you would like to bring among Blue Star ACs.

Recommendations Improve Quality Increase Variety Reduce Prices

RESPONSE 1 3 19

PERCENTAGE 2 6 37 51 4 100

Introduce More Schemes 26 No Change TOTAL 2 51 TABLE. 1.9

100

FIGURE NO. 1.9

INTERPRETATION: 80
60 East 51 % of the people want blue star co. In the above analysis it is being clear that West

to introduce more schemes , 37% of the Northpeople want them to reduce price as they found that co. like voltas are cheaper in rate than that of blue star.
0 2nd Qtr 3rd Qtr 4th Qtr 20

40

3. What is your opinion regarding Blue Star ACs?

QUALITY Reliable Long Lasting Technologically Strong Innovative TOTAL

RESPONSE 13 15 21 2 51

PERCENTAGE 25 29 41 5 100

Figure no 1.8 Interpretation:

In the above diagram it is clearly show that the AC which blue star provided to their customers is that 41 % of the people found blue stars ac to be technologically strong and 29% found it very innovative and 25 % very reliable. This shows how blue star is particular about their product and providing great services to their loyal customers.

4. If you have to buy one more AC then AC of which brand would you prefer most? Company Blue Star LG Samsung Voltas Carrier TOTAL RESPONSE 28 13 6 2 2 51

PERCENTAGE 55 25 12 4 4 100

TABLE NO. 1.7

FIGURE NO. 1.7 INTERPRETATION: 55% of the people will go for blue star as they have already share their opinion by saying this that they found blue star ac a reliable, innovative and also technically strong.

5. How will you rate the pricing policy of Blue Star in comparison to other brands like Samsung, LG, Videocon, Carrier,Voltas etc.

PRICES

RESPONSES

PERCENTAGE

High

19

37

Low

Somewhere in between

29

57

TOTAL

51

100

TABLE NO. 1.6

Interpretation 57% of the people found that the pricing of blue star is somewhere in between as compared to other brands.

6. What do you like most about Blue Star Acs

QUALITY QUALITY Looks Price Durability None TOATAL RESPONSE 10 9 28 4 51 PERCENTAGE 20 18 55 7 100

TABLE NO. 1.5

7. Are you satisfied with your AC & the after sales service provided by the company? SATISFACTION LEVEL WTH THE AC AND AFTER SALE SERVICE Basis Yes No Total Response 45 6 51 TABLE NO. 1.4 Percentage 88 22 100

8. Do you have a Blue Star Ac? PROPORTION OF OWNERSHIP Basis Yes No Total TABLE NO. 1.3 Response 51 49 100 Percentage 51 49 100

9. How did you come to know about the Blue Star Acs? MEANS OF AWARENESS BASIS Television Ads Magazines Newspaper Internet Any other means RESPONSE 9 31 10 8 2 60 PERCENTAGE
15 52 17 13 3

TOTAL

100

FIGURE NO. 1.9

CHAPTER- 5 FINDINGS

FINDINGS
In the coming years competition will intensify more, so companies will have to fight hard to woo the customers. Crucial role facilitates price control. In other words, lower down its cost of production. Company should improve there after sales service & should go for warranties for long durations. Company should also come up with the new schemes for the customers. This will help in attracting more and more prospects. It was found that most customers owning ACs were interested in an exchange offer. So, company can also consider exchange offer scheme to beef up its sales. Electronic media has a very effective reach in each and every potential household, but Blue Star is not using this media. So Blue Star should stress on electronic media to beef up its sales. The Advertisement should be such that customer develops an emotional attachment with the product. Company should come out with 0% Finance Scheme. Due to this scheme more and more prospects will enter into the customer base of Blue Star. The product must be available at most of the places keeping in mind that the distribution cost should remain minimum. Last but not the least the company should introduce their consumer electronics products. Such as Television and washing machines.

CHAPTER- 6 RECOMMENDATIONS & CONCLUSIONS

SUGGESTIONS:
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.

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 option to 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.

BIBLIOGRAPHY MAGAZINES: Advertising and Marketing India Today. INTERNET SEARCH: www.bluestarindia.com. www.encyclopedia.com. BOOKS REFERRED: Kotler, Philips. Marketing Management, New Millennium Edition, 2000

ANNEXURE

PERSONAL DETAILS : (Personal Details will be kept highly confidential, these details will not be revealed to any third party) Name : --------------------------------Age Group : Below 20 Gender : Male Occupation: Service Income (Per Month) : Less than 20000 Qualification: Metric Graduate Under Graduate Post Graduate 20000-40000 Above 40000 Business Profession Student Female 20- 40 yrs Above 40

SURVEY QUSTIONNAIRE 1. Are you aware of Blue Star ACs? Yes No

2. How did you come to know about the Blue Star ACs? Television Ads Magazines Newspaper Internet Any Other

3. Do you have a Blue Star AC? Yes No

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

5. What do you like the most about the Blue Star ACs? Price Looks Durability None

6. How will you rate the pricing policy of Blue Star in comparison to other brands like Samsung, LG, Videocon, Carrier, Voltas etc. High Low Or Somewhere in between

7. If you have to buy one more AC then AC of which brand would you prefer most? Blue star Hitachi Carrier Samsung LG Voltas Any Other

8. What is your opinion regarding Blue Star ACs? Reliable Long Lasting Technologically strong Innovative None

9. Any changes which you would like to bring among Blue Star ACs. Improve quality Increase variety Reduce prices Introduce schemes No change