Professional Documents
Culture Documents
SDM Final Report Group2 PDF
SDM Final Report Group2 PDF
SDM Final Report Group2 PDF
Luminary Products
SALES AND DISTRIBUTION PROJECT REPORT
SUBMITTED
TO
Prof. D.K. Batra
The below mentioned image shows an increase in the market of Troffers which is the indoor
lighting equipment usually used in office and institutions spaces, so from 7% to 21% increase
could be due to the increase in the industrial and office spaces thus leading to the larger tender for
such products.
For our study, we have researched the sales and distribution of two lighting brands- Schneider
Electric and Bajaj Electricals
Schneider Electric
Distribution Channel
The end product is transferred from the manufacturing plants to the Distribution centers (DC).
These distribution centers are completely managed by the company. There is no third part
intervention till the distribution center.
Since, the end users are primarily institutional buyers, architects, and contractors; the company
does not take into account the retailer. The company only recognizes the distributor. The
distributor in this case also acts as the dealer. The distributor/dealer can further sell the products
to retailers or the end users.
The distribution channel of Schneider Electric is customer oriented. The distribution framework is
aligned according to the set target objectives. The target objectives are:
Assortment: The end users demand an assortment of products. Schneider Electric has a diverse
product portfolio. Also, end users usually buy competitor products like electrical wires and switch
boards along with Schneider products. Therefore, it is difficult for the distributor to stock the
complete product range along with the competitor product range. The assortment is carefully
planned for each distributor by the mapped TSI.
Availability/Waiting time: The waiting time for each segment of customer is different. The
architect customer segment expects the product to be delivered within a week. Whereas, the
institutional buyer specifies the date for the delivery of product. It can range from 1 week to 2
months. Therefore, the products have to be available with the DC or the distributor.
Distributor/Dealer Management
The company has allocated a Territory Head and Sales Executive to each distributor. This sales
unit mapped to the dealer is responsible for assuring the optimum dealer margins. The territory
head looks after the relationship and trust building between the dealer and the company.
Lead Management for Distributor: Schneider Electric provides a flexible lead management
system to the dealer. The leads generated by the distributor sales team can be handled completely
by the dealer or they can be handed over to the company sales executive. The company sales
executive then helps the dealer salesmen to effectively execute the trade and book the order.
Sometime, the company has internal contacts that can help execute the deal. The company does
Credit Terms
The credit period offered to the distributor by the company is of 40 days. If the distributor is unable
to pay the full billed amount by 40 days, he is charged with heavy interest rates. There is no
Channel Finance facility available to the distributor. All financial dealings with the distributor are
carried out by the company.
Bajaj Electricals
Distribution Channel
The largest manufacturing facility of Bajaj Electricals is at Ranjangaon. It is around 50 kms from
Pune, Maharashtra. The finished goods are transferred from the manufacturing units to the Central
Warehouses. The largest warehouses are in Vapi, Gujrat and Kundli, Delhi. These warehouses are
managed by third party vendors. The company has outsourced these warehouses through their
logistic partners. The products are forwarded to the distributors through these warehouses.
We have covered the LED Lighting Market of Bhagirath place, Chandni Chowk and Lok Nayak
Bhavan Plaza, Khan Market (North Zone). The interview majorly covered the Sales and
Distribution of LED Lighting and Luminary from the salesperson’s perspective and our inferences
have been added. The interview transcript is given as follows:
• SURYA ROSHNI LIMITED - cfl (self-ballasted lamps for general lighting services)
• SURYA ROSHNI LIMITED - fluorescent tubular lamps
• BAJAJ ELECTRICALS LIMITED - cfl (self-ballasted lamps for general lighting
services)
Industrybuying.com
It is a platform featuring an exclusive range of utility products for all industrial purposes.
The options available in lighting and luminary products on the website are:
Conventional Lighting
Decorative Lights
Garden Lights
Hand Torch & Lamps
Industrial Lights
Inground & Underwater Light
LED Accessories
LED Bay Lights
LED Bollard Light
LED Bulbs
LED Canopy Light
LED Ceiling Light
LED Combo
LED Diodes
LED Down Light
LED Emergency Light
LED Exit Signage
LED Flood & Outdoor Lights
LED Flood Light
LED Footlight
LED Panel Light
LED Tube Lights
LED Wall Lights
Lighting Accessories
Thousands of products of different brands are available for industrial buying purposes.
Architects
Architectural lighting fixtures are not only a matter of taste and style but also a major safety
concern and functional part of the building being designed. Therefore, understanding the
concerns of the architects while choosing products will enable us to gain insights on the overall
sales and distribution of lighting and luminary products.
Insights gathered from the interaction with architects:
As per our survey, architects prefer LED lights because of the following reasons: Energy
efficiency, reduction in greenhouse gas emission, enhanced safety, cost effectiveness, wide
variety, easy installation.
The architects buy the products mainly from the distributor. The factors considered while
making a purchase are: free installation, site inspection facility, extended warranties, easy
replacement, lead time for the order, discounts offered on bulk purchases.
The choice of branded or unbranded products depends on the budget of the project. Branded
products offer guarantee and trust whereas unbranded products are affordable and are available
in a variety of designs.
Due to the expansion of the e-commerce market, architects also prefer buying light fixtures
online. There are various websites such as croma.com, havells.in, amazon.com, flipkart.com,
indiamart.com which are preferred by these architects.
Customers
Insights gathered by interviewing the customers:
Customer prefers LED over other lights due to high efficiency and low energy consumption.
People mostly go for replacement of older lights with new LEDs. The customers are not very
much aware about the latest LED technology as the hidden benefits are not properly
communicated to the users. It also affects the purchase of the smart LED lights as the customer
is unaware about the technological advancements in these products.
The choice of branded and unbranded lights depends upon its purpose. If the lights are to be
installed in the living area and for the aesthetics point of view the lights chosen are mostly
unbranded due to the wider variety of designs available whereas branded lights are preferred
because of their quality and longer life span.
Consumer promotion is one of the major strategy used by both Bajaj Electricals and Schneider
Electric to attract new customers and expand the customer base. This play an important role for
new companies or new product launches.
The sources used to study the consumer promotion of Bajaj Electricals and Schneider Electric are
mentioned below:
• E-market Analysis
• End User Analysis
• Field work on various stores selling Bajaj LEDs and Schneider products
• Brand Promise: Bajaj Electricals assures its customers with high quality consumer goods
and its brand promise “Enhancing quality of life and bringing happiness with
sustainability”.
• Promotional Activities: The company is mostly active on traditional media such as TV
ads, radio magazines, billboards and newspapers for its promotion. Also, the company is
moving towards its digital and social media presence with ads on internet
• Redefining the brand: Bajaj has taken active initiatives to redefine the image of its
company. It has launched creative and innovative ads using animated characters. The
company was one of the first in its competitors to go for animated characters instead of
traditional celebrity endorsements.
• TV Ad Campaigns: Bajaj ad campaigns are created by the Bajaj’s ad agency OnAds
Communication Agency
#IndiansWhoShine Ad Campaign: This piece of work was executed for the LED
segment of Bajaj Electricals on Nov, 2018. This campaign was planned with a purpose to
refuel pride in the brand that blended patriotism with the product. The campaign was
dedicated to the brave souls who brighten the lives of Indian by protecting the nation.
YouTube Link:
https://www.youtube.com/watch?v=XLXa6CjPMdc&feature=youtu.be
• Competitive Pricing: The brand has played its price and offered discounts and various
coupons under its sales schemes. It has even allowed part or monthly payments to some of
the products.
• Quantity Discounts: Company mostly offer special discounts on the purchase of bulk
order quantity
• Special discounts/ Festive Discounts: As a part of promotional strategy, the brand offers
special discounts or festive discounts on product prices at periodic intervals.
• Focus on modern trade practices and e-commerce:
Shop for Bajaj LED Lights online at the Best Price: Led lights are available for online
purchase and special discounts are given to buy online with no shipping charges on bulk
purchase
As quoted on its site
“Bajaj LED lights consume less energy that adds to their safety mechanism, while keeping
the electricity bills light on your pockets. All our products are reasonably priced and are
SDM-LIGHTING AND LUMINARY PRODUCTS 43
budget friendly considering excellent features that are offered by our unique products. Buy
LED lights online to light up your home, directly from our site and avail our various
discounts and offers”
Schneider Electric
Advertisements
Bajaj Electricals
They market their products through ads in newspapers, radio, TV, as well as social media
campaigns. They have presence on social media channels. They have a facebook page which they
use to engage customers and promote their product. Some popular campaigns which Bajaj
Electricals have done are:
Besides these campaigns, the company has also created ads and campaigns around other messages
intending for an impact on the society. One of Bajaj Electricals’ popular ad with a social message
was - “Jab tyohar milkar sab manaayen, toh khaana sirf bahu hi kyun pakaaye”,
There was another ad emphasizing the fact that Bajaj is there with its customers, with tagline -
“Aapke har safar me hum aapke saath hain, kyunki aapke bina hum, aur humare bina aap, bilkul
adhoore hain”.
They position themselves to be a part of everyday life of people with #WeAreFamily.
The oldest ad our generation remembers of Bajaj Electrcials is “Jab me chota ladka tha, badi
shararat karta tha, meri chori pakdi jaati, jab roshan hota Bajaj, ab me bilkul budha hoon, goli
khakar jeeta hun, lekin aaj bhi ghar ke andar, Roshni deta Bajaj” – showing Bajaj’s presence in
people’s lives for generations, and the amount of trust built over decades.
Schneider Electric
Schneider Electric launched its first major integrated, multi-platform marketing campaign in 2017
to highlight its continued leadership in digital transformation powering the digital economy. The
campaign brings together world-class content partnerships with the Financial Times, Wall Street
Journal, and the Economist with sponsored programming from CNBC including thought
leadership and content marketing outreach. The digital-centric campaign includes activation
through social media, viral marketing, and owned media properties. A central focus of the
campaign is Schneider Electric’s Innovation Summit World Tour, which invites customers and
partners to experience EcoStruxure solutions including EcoStruxure World Premieres.
#WhatsYourBoldIdea
The future will be shaped by three of the biggest megatrends: urbanization, digitization, and
industrialization, leading to increased energy demand. Schneider Electric views this as an exciting
opportunity for our generation to solve the energy paradox: balancing our planet’s carbon footprint
with the irrefutable human right to quality energy.
Many consider this to be a bold vision. Schneider Electric constantly challenges itself to rethink
the future, re-write the rules of the game, and to re-access the possibilities. A bold vision calls for
bold ideas - ideas that are tangible and applicable right now and deliver measurable results.
Schneider Electric is bringing these to life by making businesses safer, more reliable, connected,
efficient, and sustainable through digital transformation.
Reaching bold thinkers
Recommendations
• To boost the SMART led sales, company should focus more on consumer promotion
strategies to increase consumer awareness. (As inferred from the end user analysis,
customer was not aware of the smart LEDs)
• Schneider can enter into e-commerce distribution for India as well via Amazon, Flipkart
etc.
Schneider Electric
• Territory Invasion: Distributors from tier 1 cities (Large regions) have started penetrating the
smaller territories in order to procure more orders. E.g.: A large distributor of New Delhi region
can procure orders from a smaller territory like Punjab. The distributors of Punjab region have to
face revenue losses due to this territory invasion. Distributors of large regions continue to flourish
whereas it has become difficult for smaller distributors to survive.
• Increasing unauthorized dealers: The Company is unable to control the increasing numbers of
unauthorized dealers in small regions like Punjab and Haryana. Various retailers place bulk orders
and procure products from authorized dealers of large regions like New Delhi. As these retailers
are placing bulk orders, they are able to procure products at a much cheaper price as compared to
the authorized dealers of the same region. Therefore, these small retailers act as Pseudo Authorized
Dealers. Therefore, the Authorized distributors have to face revenue losses.
• Uneven Credit terms: Distributors are offered longer credit periods therefore, leading to reduced
liquidity for the company.
• After Sales Service: Due to the inefficient logistics of the company the repair and replacement of
the products takes longer than the expected time which hampers the company’s trust worthiness
and effectiveness.
Bajaj Electricals
• Dealer Cartels: The distributors of large regions like New Delhi have started forming cartels.
Each dealer places bulk order of a particular product only. This enables the dealer to place bulk
orders which become eligible for huge product discount. These dealers then evenly distribute the
products among themselves. This enables them to procure products at the cheapest rate possible.
• Company directly supplying bulk order: In certain cases, the company can supply the order
directly to the end user without including the distributor in the negotiations. Therefore, the
distributor feels cheated when the company directly deals with the end user to earn better margins.
• Poor logistics: Bajaj Electricals has outsourced the Central warehouses and the logistics of the
company. Therefore, they are unable to ensure a particular delivery date. The end user suffers due
to delayed deliveries. The customer buys from distributor of other companies.
For Schneider
SAP Funnel
In-depth interviews with Bajaj Electrical ASM and TSI revealed an intriguing
road block in the sales process. They were facing two major challenges:
• Sales Poaching
• Territory Invasion
Territory invasion by large dealers from Tier 1 metro cities like New Delhi and Mumbai is still
prevalent. These deep pocketed dealers have the capacity to penetrate the territories of small
dealers. Thus, hampering the business margins and opportunity of small dealers.
Bajaj recently adopted the SAP sales funnel as a measure to overcome this obstacle. This SAP
sales funnel has been incorporated in the current SAP dashboard provided to the TSIs and ASMs.
When the team was interviewing Mr. Bhandari (TSI, Bajaj Electricals), he shared some
screenshots of his SAP dashboard and funnel (attached below). He showed us the method of
reporting and punching a generated lead.
https://www.schneider-electric.co.in/en/
https://www.techsciresearch.com/report/india-led-lighting-market-by-type-led-bulbs-lamps-
batten-lights-downlights-etc-by-end-use-sector-commercial-residential-etc-by-application-
outdoor-lighting-indoor-lighting-etc-competition-forecast-opportunities/1102.html
https://economictimes.indiatimes.com/industry/cons-products/durables/withdraw-led-bulb-
distribution-scheme-industry-to-government/articleshow/57781946.cms
Architect name: Sakshi Jain, Principal Architect at the Innovation House, Dehradun.
• What are the different kinds of products used for indoor, outdoor, commercial and
industrial lighting?
For indoor lighting we choose:
o cove lights (led strip lights ranging from 6W/m to 18W/m)
o Concealed lights for false ceiling – LED 8W to 24W depending upon the size of
the room and the required lumen/sqm which varies as per the usage of room
o 1W to 5W lights for the kitchen, wardrobe cabinets (furniture lighting)
o Wall washers and other fixtures depending upon the design and client specification
Outdoor – waterproof LED lights which are long lasting and IP65 rated, high power LED
luminaires, flood lights, street lights
o Commercial – COB lights, surface lights, track lights which are easily movable and
provide high light intensity, easy to install lights, aesthetically pleasing light
fixtures
o Industrial – energy saving, long life, environment friendly, corrosion resistant,
impact-proof so no chemical impacts the light. In certain cases, infra-red lights are
also used. Color specific lights depending upon activity of the space.
• Types of light bulbs you prefer?
o Incandescent light bulbs
o Compact Fluorescent Lamp (CFL)
o Light Emitting Diodes
o Halogen light bulbs
o Light Emitting Diodes as these are cost efficient, save energy and are available in
a variety of designs.
• What is your take on LED technology?
o Currently the sector is in boom. There are a wide variety of designs available and
installation is easy. LED Lights work for longer hours and are available in a wide
variety of designs as compared to other technologies.
• Do you consider the following factors before making an LED product purchase?
o Installation and maintenance cost
o Are the lights certified or approved?
o Is the LED light fixture cohesive with the latest technology?
o Expected lead time for an order
o Brand name/ Reputation of the manufacturer or supplier
Interviewer So, are you purchasing light and luminary for the
room?