A

PROJECT REPORT
ON
Customer Requirements and Key Market Player analysis

FOR

Digihome Solutions Pvt. Ltd.

Submitted To

UNIVERSITY OF PUNE

Submitted by

Abhijeet Chavan

MASTER IN BUSINESS ADMINISTRATION

INDIRA INSTITUTE OF MANAGEMENET

PUNE-411033
2007-2009
 Acknowledgement

I am very happy while expressing my sense of gratitude towards all those who
helped and guided me during this project.

It gives me immense pleasure while expressing my sincere and profound sense

of gratitude to Mr. Raveesh Kanaujia (Vice president Sales) and Mr. P. Venugopal (Sr.
Manager – Township Solutions) Digihome Solutions Pvt. Ltd., for their inspiring guidance,
unending kindness, constant encouragement and constructive criticism during the course of
summer project and in the preparation of this report.

I am overjoyed to acknowledge my sincere thanks to my faculty guide

Prof. Pallavi Sajanapwar of Indira Institute of Management, Pune for providing all
necessary guidance during my summer project.

I am greatly indebted to Mrs. Dr. Prachee Javadekar (Director of IIMP)

without whose help and guidance this project would have been incomplete.

I would also like to thank to colleagues working for Digihome Solutions Pvt.
Ltd. for their encouragement and support during my project also to all those who have
helped me directly and/or indirectly in preparing this project report.

ABHIJEET CHAVAN
MBA-II (Mktg.)
IIMP, Pune-33

2
 CUSTOMER REQUIREMENTS AND KEY MARKET
PLAYER ANALYSIS FOR DIGIHOME SOLUTIONS.

I) EXECUTIVE SUMMARY:-

This project was carried out for Digihome Solutions, an Aftek Group company
which deals in Integrated Home automation Solutions. This company is very new in this
field of Electronic Security Systems and automation solutions.
The main objective of this research project was, “To analyse its Competitors in the
market i.e. in Pune region”.
The method used for research was Survey Approach. By keeping the objective in
mind, Builders were interviewed. Along with interviews questionnaires were also being
filled.
After collecting the data it was analysed thoroughly and conclusions were drawn.
Data analysis tool used was simple percentages, graphs and table observations. I found
from data analysis that Market for automation products is excitingly growing but the
current competition level for Digihome Solutions products is limited to very few
companies like Honeywell automations etc. Data also showed that catering to different
classes of builders with different product offerings will be very much beneficial. Price
factor was the most important factor in minds of the builders than maintenance and
installation.
Builders were very much aware about the complete integrated Automation solutions
provided by Digihome Solutions. Builders trusted the brand rather than company being
Indian.

3
Research Methodology:

I) OBJECTIVES:

A) Primary Objectives –
1) To identify the competitors in market from direct customers i.e. Builders.
2) To know the customer (builder) requirements

B) Secondary Objectives –
1) To build a marketing mix for the Digihome solutions.

II) DESIGN:

a) Research Method:
Descriptive Research is the research method used because descriptive
studies embraces a large proportion of market research. The purpose is to
provide an accurate snapshot of some aspect of the market environment.
Descriptive studies are divided into two broad categories Cross sectional
and Longitudinal. Of the two, the former type is being used. Cross sectional
study is concerned with a sample of elements from a given population. Cross
sectional study is done by two types Field studies and surveys.

b) Research Instrument/approach:
Survey Approach is what being followed for this marketing research.
Questionnaires were prepared for the same.

c) Data Collection:
1) Primary Data –
Primary data was obtained by getting questionnaires filled up by Builders
(Direct customers).

2) Secondary data –
- Secondary data was collected from reports available.
- Site research

4
 III) SAMPLING PLAN:

a) Sample Population –
Sample population for this market research is builders from Pune.

b) Sample Frame –
Builders who are members of PBAP (Promoters & Builders Association of
Pune).

c) Sampling unit –
Builders were taken from database available.

d) Sampling Method –
Non-Probability sampling method from which Purposive sampling technique is
used.

e) Sample Size –
It was 60 Builders.

f) Sample approach Plan –

Getting appointments from Builders then interviewing them. Questionnaires
were also being filled by them.

IV) LIMITATIONS:

1) This research is limited to Pune region only.

2) The number of respondent that can be contacted is not very high due to time
constraint.

3) Contacted at fewer times were not the correct respondents because they were
lacking of knowledge needed to answer the few questions.

Conclusions:
Competitors are not prominent in Pune Market but some substitutes are having price
advantages in the market. Builders cannot be treated at same level. Every builder has
different requirements and different mindset hence has to be given different offerings.
Awareness level is still the area of concern.

Recommendations:
Competitive strategies for main competitors are not main concern instead substitute
products need more attention. Builders have to be separated into different segments.

5
 INDEX

Sr. no. Content Page no.

1 Introduction 11

2 Industry profile 14

3 Company profile 21

4 Literature Survey 31

5 Objectives and Scope of research 38

6 Research methodology 40

7 Data analysis 50

8 Observations and Findings 70

9 Conclusions 73

10 Recommendations 77

11 References 83

12 Annexure 84

6
List of Charts: -

Sr. no. Chart title Page no.

1 Global market share of automation components 15

2 Electronic Security System overview 19

3 Heard about Home Automation or Electronic Security Systems 50

4 Implemented electronic security systems or home automation 51

system
5 Why implemented 52

6 Type of System implemented 53

7 Received following for implemented systems 54

8 Which Company’s system implemented 55

9 Chosen that company because 56

10 From whom bought that system 57

11 Came to know about the system through 58

12 Before buying Concerned to - 59

13 Repeated Purchase 60

14 From same company because - 61

15 Not bought from same company because 62

16 Customer response to that system 63

17 Extra features desired 64

18 Future demand for such Home Automation Solutions 65

7
List of tables:

Sr. no. Table title Page

no.
1 Overview of sectors 15

2 Heard about ESS or Home Automation 50

3 Received with System 54

4 System implemented was of - 55

5 Company chosen because 56

6 Bought system from - 57

7 Come to know about the company through 58

8 Concerned before buying to - 59

9 Not going for same company 62

10 Customer’s response 63

11 Extra feature desired 64

12 Competitor analysis 66

8
INTRODUCTION

9
Chapter1. Introduction:-
1.1 Rationale of the Study -

Research project had objective of finding competitors and analysing their position in the
market. For achieving this Builders and Architects were interviewed by getting their
appointments.

Another important objective of the research was to segment target market i.e. builders
for DS. This was done by interviewing Builders and Architects and asking them questions
based on few parameters decided earlier.

Few other objectives were to find awareness about the Home Automation Solutions, to
know the product feature found necessary in the system etc.

Sector in brief -
This research was done for Digihome Solutions, company which serves to Real Estate
industry. So to get the idea about Real estate market in Pune, some facts are given below –

 Residential Properties – Pune

 • Aundh (1234)
 • Pimple Saudaga (802)
 • Magarpatta (470)
 • Baner road (1058)
 • Wakad (644)
 • Koregoan Park (450)
 • Kalyani Nagar (1047)
 • NIBM Road (516)
 • Kharadi (429)
 • Viman Nagar (1025)
 • Kothrud (489)
 • Wanwadi (417)

Total (Pune) = (8581)

Figures in bracket indicate the number of projects completed or in pipeline in that area or
locality. Out of these 8581 projects around 2000 projects are on papers.

These figures show that Real Estate Industry is growing tremendously and due to which
there will be greater chances for Home automation Industry to grow.

10
Few builders in Pune region are listed as below –

• Sobha Developers • Ekta Housing

• D. S. K. Developers • Mittal Brothers
• Magarpatta City • Kumar Builders
• Goel Ganga Group • Nyati Group
• Kolte Patil Developers • Wadhwani Constructions
• Aditya Builders • Runwal Housing Group
• Siddhivinayak Group

Research done was helpful for DS to know the current market players and their ways of
reaching to customers i.e. builders. The findings of research were also useful for DS in
analysing the market situation. Recommendations would help DS to make proper
competitive strategies and develop a good Marketing Mix.
For whole Electronic Security System Industry, the report would be useful to know the
segmentation criterion for customers i.e. builders. And it would also help to define the
competitive forces in better terms.

11
INDUSTRY PROFILE

12
 Chapter 2 - Industry Profile:-

Automation Industry - The automation industry output has seen an impressive growth
rate of 16%. Industry sources attribute the surge to increased realization that productivity,
quality and integration are key aspects being impacted by investments in automation. New
areas such as buildings, airports, are being included in the offering by many automation
vendors.

Electronic Security Systems –

Over a period of time, security has gained global importance due to numerous threats
like global terrorism, arson, and burglary etc., faced by countries worldwide. Initially,
manned security was considered more reliable. However, with emerging trends, the
demand for electronic security systems (ESS) has gained prominence. The global
electronic security systems industry is growing at 9% annually and its current value is
estimated at USD 60 billion.
The Global ESS industry is expected to witness buoyant growth with huge changes in
the industry scenario due to M&A activities and in technology innovations like video
analytics, in the year 2008.

Table no. 1 Overview of Sectors

Organized Sector Unorganized Sector

Total security solution provider
Tie up with global brands e.g. Reliance
Communications tie up with Microsoft
Sector is dominated by MNC players
Medium and high risk user segment is
focused by players in this sector
Standalone product dealers
Providing the basic service or product but
no additional service is provided
This sector is controlled by Price
competition
Low risk user segment is focused by these
players

Industry Size – Worldwide market size of electronic security is US $ 60 billion. While the
Indian market size range is Rs.600 crores i.e. US $ 135 million.
Major Players present in India are –
1) Honeywell
2) Siemens
3) KP(Kevin Pinto)
4) Zicom
5) Commax
6) Johnson Controls
7) Tyco etc.

13
Global Market for Electronic Security Systems can be known by following graph –

Matured Markets like US, Japan, Europe are supposed to grow at 10 – 12% per annum
rate.

THREATS FOR INDUSTRY IN INDIA ARE FOUND AS FOLOWS:-

1) Low awareness
2) Non-affordability
3) Slow acceptance
4) Remote Accessibility hampering the Industry

14
Chapter 2.1 - Home Automation -
Definition of Home Automation

“Home Automation makes your life easier, it makes your life more comfortable, it
saves you energy, it gives you more security, a peace of mind and not to forget it is fun
too.

But most of all we believe it is what you want it to be. For some of you, it could be
as simple as controlling a light or appliance with the same remote you use to control
your TV.
For others, it is a completely automated home that is controlled by a computer
interface completely programmed to fit your personal lifestyle. From now on, your
home automation system performs all the difficult tasks. Whole house audio/video
and remote video surveillance can be an exciting part too.
Only your imagination is the limit of what Home Automation is capable of doing for
you.”

Home automation Growth Scenario: -

Buoyed by the rising consideration for convenience, security and energy conservation
among the world population, home automation is coming to the fore as major home
technology. Global home automation market continues to witness robust growth and is on
course to touch US$2.4 billion by 2010.

Over the years, there have been lots of technological developments taking place
around the world, and home automation is one among them that is changing the way
people used to spend time in their homes. Given the increase in population, rising per
capita income and elevated standards of living, it is little surprising that the demand for
home automation is also on the rise. With home automation, home-life becomes more
convenient and luxurious just by the touch of a button. In today's fast moving world,
individuals are forced to lead a busy lifestyle, leaving little time for daily household
chores. 

15
 People generally tend to miss out on simple day-to-day tasks such as turning off
lights and fans, lowering thermostat level and activating security system. Thus, busy
homeowners yearn for a simple yet powerful system to take charge of the entire home and
by automating various home appliances. A home automation system or home control
system is one such system available in the present day, which ties up all the individual
gadgets and provides the residents with all the benefits of an automated house.

World home automation market is expected to witness robust growth and reach
US$2.4 billion by 2010, according to the new market research report. The strengthening of
existing markets in Europe and the emergence of new markets in Asia, South America and
Africa is set to sustain the growth momentum over the next five years. Housing slump in
the US is expected to hinder market growth of home automation in North America in the
near term. 

One of the key issues to be addressed by the market is cost. As bandwidth rules the
multimedia, networking technology becomes very expensive. But price itself rules the
home control sector. Traditionally, home automation systems were highly priced products
meant for large affluent households. But today, even high-end home automation systems
are available at an affordable price, making it accessible to middle-class families also. Set-
up and installation charges that are usually site-dependent and customer-specific might
represent a constraint unless uniform packages are launched. The future growth of the
home automation industry would rely on the capability of the suppliers to offer cheaper
packages to home developers and installers.

Recent technological developments have resulted in widespread availability of

wireless systems in the home automation market. Hardwired systems work through
combination of switches, controllers, along with complicated wiring networks. In
comparison to wired systems, wireless systems make the use of commands that are sent
either through radio or power line carrier.

16
Chapter 2.2 ESS (ELECTRONIC SECURITY SYSTEMS) INDUSTRY
OVERVIEW:-

ESS industry is growing with tremendous speed which is shown in following graph. In
2003 industry shown the signs of growth, since then till 2007 this ESS industry is
experiencing constant growth.

These systems once installed can be regularly checked and maintained by facility
management companies . Home security systems can be categorized into various
components, such as
 Access control security systems
 Video surveillance systems
 CCTV monitoring systems
 Door entry alerts
 Fire alarm systems
 Security alert systems

Burglar alarms are the devices used to keep thieves and burglars away from our home
while fire alarms instantly alert you of fire and smoke. There are smoke detectors and heat
sensors that are also being used to thwart the instances of sudden fire. Fire extinguishers
should be compulsorily installed to put out fire immediately in case it breaks out suddenly.
Besides, we have door security devices that can keep a control on the accessibility to our
homes. Above all, Security cameras, CCTV and wireless devices give an edge to your
home security systems.

17
Leading players in the worldwide home automation market include

1. Ameba Group 2. AMX Corporation 3. ABB

4. White-Rodgers 5. Creston Electronics 6. Gewa AB

7. Home Automation 8. Haier Group 9. Honeywell International

10. Home Technologies 11. Lightolier Controls 12. Secant Home Automation

13. Lutron Electronics 14. Monster Cable Products 15. Schneider Electric

16. Lite Touch 17. Siemens AG 18. Smartkontrols

19. SkyNetGlobal 20. Smarthome 21. TAC

22. Teletask 23.Vantage Controls 24. VITY Technology

18
COMPANY AND PRODUCT
PROFILE

19
 Chapter 3.1 -
COMPANY PROFILE:-

ABOUT COMPANY: Digihome solutions Pvt. Ltd., an ISO 9001:2000 certified, Aftek
group Company, is focused on providing innovative intelligent home solutions. Digihome
is the company that only focuses on providing state of the art technology solutions that
create intelligent homes.
Their range of products and solutions are designed to meet requirements of a budget
home user and the aspirations of a lifestyle customer.
They do not believe that “one size fits all". Their solutions are completely
customizable to user needs.
All their products are based on their patented technology. These are designed and
manufactured at their plant at Solan, India.

Vision: -
Digihome’s vision is to be a global leader in the area of delivering
intelligent home and building solutions.

Mission: -
Digihome’s mission is to provide reliable, high quality, cost effective
intelligent home and building solutions.

Quality Policy: -
We are committed to provide intelligent home and intelligent building
solutions by meeting or exceeding our customer’s expectations for product
quality, reliability and affordability.

20
 Hierarchy of Digihome Solutions (AFTEK GROUP): -

CEO
CFO CTO

WHOLE TEAM DIRECTOR

VP (SALES) VP (MARKETING) VP (TECHNOLOGY)

TECHNICIANS
SALES EXECUTIVE MKTG EXECUTIVE

Some of the TOP MANAGEMENT MEMBERS

CEO: - Ranjit Dhuru

Whole Team Director: - Chandrashekhar Raje

21
Vice President (Sales): - Raveesh Kanaujia

Sr. Manager – Township Solutions: - P. Venugopal

Digihome’s solutions cover following main areas:

Digihome’s Intelligent Township solutions are meant for big township

Townships: schemes where the builder has to create and maintain the civic
infrastructure for years together.

Already a market leader, Digihome’s intelligent home solutions

consist of various models and device options. The design is flexible
Residential:
and scalable so that suitable solution can be configured for various
scheme sizes and price points.

Digihome would soon be launching intelligent building solution for

Commercial:
commercial spaces, such as IT parks, malls, multiplexes etc.

Their solutions help a Developer to

- Establish a brand value
- Realize higher value from projects
- Accelerate sales.

Digihome’s solutions are in use for more than a year in various projects at Pune and
Bangalore.
More than a dozen projects are under execution in various cities in INDIA and abroad.

Digihome provides multi-level support, starting with 24 x 7 Online Customer Care with a
toll free number. In addition, Digihome provides remote support as well as on-site support.
Products are:

A) DHG – Digital Home Gateway

B) SHG – Secured Home Gateway
C) VDPS – Video Door Phone system
D) AS – Automated Switches

22
 Chapter 3.2 - Product Profile: -

A) DHG (Digital Home Gateway)

It has Six different categories of products integrated. Those are briefed as follows –

a) Security

 Smart card based access for residents.

 Lobby light and pre-recorded greeting message
 Multiple motion detectors for complete security
 Stay / away modes and multiple security zones
 Alarm notification in case of intrusion to neighbours, society security gate,
voice call to preset phone numbers, SMS, e-mail
 Surveillance cameras
 View image of visitor at society gate or apartment door
 Voice communication with visitor at society gate or apartment door
 Stored images of visitors in the absence of flat owner can be viewed after he
is back or over Internet, with date and time stamp.
 Door latch can be operated from the display unit or from any room.

b) Safety

 Emergency pendant for old persons

 Emergency buttons
 Smoke detectors
 Heat detectors
 Gas leakage detectors
 Remote turn off for gas and water

23
c) Automation

 Control using remote control, display unit, phone, Internet

 Control of lights and fans
 Control of appliances such as AC and Geyser
 User settable profiles

 Dimming control
One only needs to experience Automation features to understand the value and
comfort they provide.

d) Information

 Event calendars and reminders

 Internet UI for all home related remote functions
 Society messages, news, billing

e) Communication

 Free phone calls within society

 Digital answering machine mailbox
 Connected home

f) Entertainment
Download music and movies

Interesting developments are expected in entertainment and would be announced here as

and when they happen.

B) SHG – Secured Home Gateway

It has four integrated solutions as below

24
a) Security

 Smart card based access for residents.

 Lobby light and pre-recorded greeting message
 Multiple motion detectors for complete security
 Stay / away modes and multiple security zones
 Alarm notification in case of intrusion to neighbours, society security gate,
voice call to preset phone numbers, SMS, e-mail
 Surveillance cameras
 View image of visitor at society gate or apartment door
 Voice communication with visitor at society gate or apartment door
 Stored images of visitors in the absence of flat owner can be viewed after he
is back or over Internet, with date and time stamp.
 Door latch can be operated from the display unit or from any room.

b) Safety

 Emergency pendant for old persons

 Emergency buttons
 Smoke detectors
 Heat detectors
 Gas leakage detectors
 Remote turn off for gas and water

c) Automation

 Control using remote control, display unit, phone, Internet

 Control of lights and fans
 Control of appliances such as AC and Geyser
 User settable profiles
 Dimming control
25
 One only needs to experience Automation features to understand the value and comfort
they provide.

d) Information

 Event calendars and reminders

 Internet UI for all home related remote functions
 Society messages, news, billing

C) Video Door Phone Systems

Features –

 Colour C-MOS camera

 High resolution 7” TFT LCD panel
 Simple PTT (Push To Talk)
 IR remote
 Feather touch switches
 Latch control function
 DVD-input to enjoy movie on LCD
 Stereo sound effect
 Low power consumption
 Single wire between Door unit and Monitor unit
 Add-on various sensors
 Add-on smart card reader to door unit

D) Automated Switches

Standalone Automation (Automated Switches) offers a retrofit panel with feather-

touch switches and an IR remote to operate the switches. We can now operate switches
from the wall panel and also enjoy the convenience of operating the switches from a
remote location.

26
 The retrofit panel comes with feather-touch switches to operate up to 4 appliances.
Furthermore, the switches are safer and easier to operate.

The IR remote provide the ease to operate the appliances from any part of the house.
We can also turn ON and OFF all the appliances using a single key.

Features and Benefits:

 Enhanced life due to the absence of mechanical switches
 Feather touch IR remote
 Built-in memory to store ‘last state’ in case of power failure
 Supports Inverter
 Increased the safety and life
 Easy installation
 Remote operating from 8 meters
 No alteration to existing wiring while installation of Standalone Automation
unit

27
Literature survey

28
Chapter 4 – Literature Survey

Literature survey gave direction to the research and helped to understand the Real
Estate condition in India. Literature survey is nothing but the tool to have a clear idea of
what business, are you in and which businesses are related to yours.
Literatures surveyed for the research were Press Reports like HOUSING
CONDITION IN INDIA: HOUSING STOCK AND CONSTRUCTIONS. This report
helped in determining the situation of real estate industry, and types of houses preferred by
the people of India.
Also a report by Indiquest on Electronic Security System released in May 2008,
was surveyed.

Electronic Security Systems in India May 2008 – report by Indiquest: -

Electronic security pertains to leveraging technology in safeguarding assets by
preventing unauthorized access to people and property. The government has been a
traditional and major consumer of such security services. The commercial segment also
uses such devices for their employees and critical data infrastructure. Nowadays, one can
witness their implementation in areas like household security and small mom-and-pop
stores.
The electronic security industry broadly consists of alarms, access controls and
close-circuit televisions (CCTVs) which are popularly and extensively used. Of these
products, CCTVs have gained more importance in the UK and US as governments and
domestic intelligence forces now make large scale implementation of them at public
places. Access controls continue to be used for a larger part by governments and
corporations, though its usage in the residential sector is yet to see any significant
acceptance, alarms being more popular in this sector.

29
 Globally, the electronic security market has been dominated by the US and
Europe and understandably so being a target of militants and extremist movements
resulting in severe loss of property and lives. Besides, being economic superpowers, the
countries in those regions have continued to innovate and produce technologically superior
products in order to minimize the occurrences of such incidents. The demand for electronic
security services in the US and Western Europe is expected to account for over 70 percent
of the global demand. However, the markets in such countries have started to approach
maturity and the industry is expected to grow in single digit. On the other hand developing
countries are expected to grow in double digits due to political and socio-economic factors
and liberalization of the economy.
However, the market in India is largely unorganized and is reportedly flooded
with cheaper products from countries like Taiwan, China and other countries in the South-
East Asia belt. These products score in terms of
the price advantage which established players find hard to compete with, given India’s
characteristic price sensitivity attribute. What makes this industry, in the Indian context,
even more challenging is the fact that none of the players are able to come to a consensus
on the value of the industry and the expected growth potential. Moreover, the industry
characterized by the presence of a few players and the potential to accommodate a few
more, is in the lower end of the growth curve and has a few more years for it to peak.
This report attempts at understanding the Indian market for electronic security
products and gives an indication of the segments to be addressed. Additionally, the report
also throws light on the industry characteristics in terms of regional usage, end-user
classification and device market share.

The outcome of the report has thrown up the following important points:
• The market for electronic security equipment in India is expected to grow at 25 to 30
percent for the next five to ten years.

• Organized players comprise only 20 percent of the market but account for 80
percent of the revenues generated.

30
• The residential and educational sectors which have been largely untapped will help
provide a boost to the electronic security industry.

• The country’s southern region ranks first in the usage of security products followed
by the western, northern and eastern parts of the country.

• Current taxation policies have yet to encourage domestic players to compete with
International companies.

In conclusion, the market for electronic security equipment in India is largely

untapped and under-served. Additionally, the consumers in the country need to be
awakened to its importance which will prove to be a daunting task for players operating in
this segment. Mixed with the price sensitivity of Indian consumers, India will be a
challenging market for such companies to operate in. The potential in the security industry
has caught the eye of venture capital and private equity funds; the first investment was
reportedly made in January 2008 by PE major DE Shaw. It has picked a 14 percent stake in
Delhi-based Security and Intelligence Services (SIS)
India Ltd.
The market holds immense potential for those players who are able to find the
right mix of price, technology and awareness - the synergies of which will pay rich
dividends for a company’s investments in the electronic security industry in India.
.

31
 PRESS NOTE

HOUSING CONDITION IN INDIA:

HOUSING STOCK AND CONSTRUCTIONS
(JULY – DECEMBER 2002)

1. The National Sample Survey Organization (NSSO) in the Ministry of Statistics and
Programme Implementation, Government of India, has released the first report of a
nationwide household survey carried out by it during July 2002-December 2002 on
housing conditions in India. A sample of 97,882 households spread over 4,769
villages and 3,538 urban blocks in the country had been surveyed to obtain
information regarding the conditions of the dwellings in which the rural and urban
population of the country live and the number, size, structure, cost and financing of
residential constructions undertaken by the households.

2. The survey reveals that out of every 100 households in rural areas, 36 lived in
pucca structures, 43 lived in semi-pucca structures, and the remaining 21 in katcha
structures. In urban areas, 77 in every 100 households lived in pucca structures, 20
in semi-pucca structures and only 3 in katcha structures. In urban slum areas, 67%
of the dwellings were pucca. Rural areas of Delhi and Haryana, urban slums in
Mizoram, Himachal Pradesh, Punjab and Haryana, and urban areas (excluding the
slums and squatter settlements) of Sikkim, Delhi, Uttaranchal, J&K and Gujarat
reported the prevalence of more pucca structures than the rest of the country. The
States of Tripura, Manipur and Chattisgarh were found to be well below the
national average in terms of prevalence of pucca structures.

3. The floor area available to the average rural household was 38 square metres while
the average urban household had 37 square metres. This survey also reveals that the
average household size in rural areas was 5.15 and in urban areas 4.47.

32
4. 19 out of every 100 structures in the rural areas and 11 in the urban areas were in
bad condition and required immediate major repair.

5. 92% of rural households and 60% of urban households owned the dwelling units.

6. As for the facilities of drinking water, latrine and electricity for lighting, about 15%
of the dwellings in urban slums and squatter settlements, 63% of dwelling units in
other urban areas, and 11% of the units in rural areas had all the three facilities
within their premises. At the other extreme, none of the three facilities were
available within the premises of about 30% of dwelling units in rural areas, 11% of
dwelling units in urban slums and squatter settlements, and 4% of dwelling units in
other urban areas of the country.

7. About 97% of rural and 99% of urban dwellings had drinking water within half a
kilometre of their premises.

8. Residents of around 76% of rural and 18% of urban dwellings did not have access
to any latrine facility. Considering both rural and urban areas together, the
percentage of households lacking this facility was highest in Chhattisgarh (82%),
followed by Orissa (80%), Bihar (79%), M.P. (77%), Jharkhand (76%), Rajasthan
(72%), and U.P. (72%).

9. About 25% of all rural households and 1 in 7 urban households had undertaken
some construction activity during the last 5 years. In rural areas, 41 million
constructions had been initiated and 34 million completed, while in urban areas, 8.5
million constructions had been initiated and 7.2 million completed during this 5-
year period. 8 million constructions had been initiated and completed in U.P. alone,
followed by West Bengal (4.8 million), Tamil Nadu (4.7 million), Andhra Pradesh
(4.1 million), Maharashtra (3.1 million) and Bihar (3.1 million). A similar NSS
survey carried out 9 years earlier (1993) had collected data on constructions
completed during the 5-year period 1989-1993. It is seen that the number of
completed constructions during the 5-year period 1989-93 was only about half the
number initiated and completed during 1998-2002 in both rural areas (17.5 million
33
 against 34 million) and urban areas (3.6 million against 7.2 million). Comparison
with the earlier survey also shows a fall in the percentage of katcha constructions in
rural India from 45% to 40% and a rise in the percentage of pucca constructions
from 34% to 38%. In urban India, there was a fall in katcha constructions from
18% during 1989-93 to 12% during 1998-2002 and a rise in pucca constructions
from 64% to 74%.

10. On an average, a rural household spent about Rs. 1.13 lakhs to construct a new
pucca house, which had an average floor area of 42 sq.m., and about Rs. 21,000 to
alter or repair a pucca structure, which on an average involved 29 sq.m. of floor
area. Households living in urban areas other than the slums, on an average, spent
about Rs.2.63 lakhs to build a new pucca dwelling unit, which had an average floor
area of 53 sq.m. In urban slums, it cost about Rs. 80,000 to build a new pucca
house, and the average floor area was 24 sq.m.

11. About 72% of expenditure on residential construction by households was on

materials alone. Another 21% was spent on labour.

12. Rural households financed around 66%, and urban households, 62%, of their
construction costs from their own sources. In urban slums and squatter settlements,
moneylenders financed 15% of all construction costs. However, in other urban
areas, moneylenders financed only 4% of the total construction costs. In the rural
areas, moneylenders financed 9% of all construction costs.

13. A second report of this survey dealing mainly with housing amenities will be
released shortly.

34
Objectives and Scope of
research Project

35
Chapter 5 - Objectives and Scope of research project: -

Objectives –

Main objective of the research was to analyse the competitors present in market. For
that preferences of builders and architects were considered. Another objective was to
segment the target market i.e. builders for DS.

Besides these objectives research was also carried to check the awareness about home
automation products and to know the expectations of builders and architects from Home
Automation Solution providers.

Scope of Research -

The scope of marketing research could cover the business problems relating to
following:

1) Types of consumers that comprise present and potential markets.

2) Buying habits and pattern of consumption.

3) The prospects for growth or contraction for the current market being served

4) New mantras or strategies for different segment

5) The Current & prospective competitive position with respect to price, quality etc.

36
 RESEARCH
METHODOLOGY

37
Chapter 6 - Research Design: -

Definition
Research design is the plan, structure, and strategy of investigation conceived so as to
obtain answers to research questions and to control variance.

Chapter 6.1

Objective of Research
A) Primary Objectives –
1) To identify the competitors in market from direct customers i.e. Builders.
2) To know the customer (builder) requirements

B) Secondary Objectives –

To build a marketing mix for the Digihome solutions

Market Research

The Market Research done for the project is known as Business-to-Business research.
Business to business research is inevitably more complicated than consumer research.
Finding the right respondents is crucial in this type of research since they are often busy,
and may not want to participate. Most business research leads to strategic decisions and
this means that the business researcher must have expertise in developing strategies that
are strongly rooted in the research findings and acceptable to the company for whom
research is done.

There are four key factors that make such market research special and different to
consumer markets.
 The decision making is far more complex in industrial markets than in consumer
markets.
 Industrial products and their applications are more complex than consumer
products.
 Here marketers address a much smaller number of customers who are very much
larger in their consumption of products than is the case in consumer markets.
 Personal relationships are of critical importance in B2B markets.

38
Chapter6.2

The Market Research PROCESS

Once the need for marketing research has been established, most marketing research
projects involve these steps, it includes:-

Define the problem

Determine research
design

Identify data types and

sources

Design data collection

forms and questionnaires

Determine sample plan and

size

Collect the data

Analyze and interpret the

data

Prepare the research

report

39
 I) Define the problem
The decision problem faced by management must be translated into a market
research problem in the form of questions that define the information that is required to
make the decision and how this information can be obtained. Thus, the decision problem is
translated into a research problem. For instance, a decision problem may be whom we
should target or who are the competitors? The corresponding research problem might be to
assess whether the market would accept the new product. The objective of the research
must be defined clearly.
Here for this research Problem was defined like “To understand the competition
and define the target market”.

II) Determining Research Design

Marketing research is classified into three categories:

1. Exploratory Research
2. Descriptive Research
3. Causal Research
4. Experimental Research

1) Exploratory research has the goal of formulating problems more precisely,

clarifying concepts, gathering explanations, gaining insight, eliminating
impractical ideas, and forming hypotheses. Exploratory research can be
performed using a literature search, surveying certain people about their
experiences, focus groups, and case studies.
When surveying people, exploratory research studies would not try to
acquire a representative sample, but rather, seek to interview those who are
knowledgeable and who might be able to provide insight concerning the
relationship among variables.

2) Descriptive research is more rigid than exploratory research and seeks to

40
 describe users of a product, determine the proportion of the population that
uses a product, or predict future demand for a product. As opposed to
exploratory research, descriptive research should define questions, people
surveyed, and the method of analysis prior to beginning data collection. In
other words, the who, what, where, when, why, and how aspects of the
research should be defined. Such preparation allows one the opportunity to
make any required changes before the costly process of data collection has
begun.

Two basic types of descriptive research:

Cross-sectional studies sample the population to make measurements at a specific

point in time. A special type of cross-sectional analysis is a cohort analysis, which tracks
an aggregate of individuals who experience the same event within the same time interval
over time. Cohort analyses are useful for long-term forecasting of product demand.

Longitudinal studies are time series analyses that make repeated measurements of the
same individuals, thus allowing one to monitor behavior such as brand switching.
However, longitudinal studies are not necessarily representative since many people may
refuse to participate because of the commitment required.

3) Causal research seeks to find cause and effect relationships between variables. It
accomplishes this goal through laboratory and field experiments.

4) Experimental Research is based on the facts that the research done has some
measurements. In this type of research one sample group is selected and the group
is taken as representative sample. For example a group of consumers are selected
and then tested for Advertising Effectiveness. In which first advertisement is shown
to the group and then the new ad is shown. After fixed time they should be asked
for recalling the ads, which ad gets maximum recalls has to selected then. This can
be done on several types and numbers of groups.

41
Research Design Followed: -

Descriptive Research is the research method used because descriptive studies embrace
a large proportion of market research. The purpose is to provide an accurate snapshot of
some aspect of the market environment. Descriptive studies are divided into two broad
categories Cross sectional and Longitudinal. Of the two, the former type, Cross Sectional,
is being used.
Cross sectional study is concerned with a sample of elements from a given
population. Cross sectional study is done by two types Field studies and surveys.

Chapter6.3

Sample selection:

A sample is true representative of the population. The representation could be statistical

or non-statistical. When the population is very large, it is not possible physically and
economically to meet every member in the population. Hence, the samples are selected.

There are two types of Sampling Techniques.

1) Probability samples:

These are the samples where every member in the population has the same probability of
getting selected. They are divided as:

a) Random Samples:

These types of samples can be taken if the numbers is small, you can choose the names of
samples and select on the basis of time and budget available. If the number increases in the
sample, computer can be used to get random samples.

b) Area samples:

Break down the population in geographical areas like wards, region, and zones and then
pick samples as before.

42
c) Multistage samples:

Break down the population in terms of known possible users with respect to age,
profession and others and then select random samples from them to define the target
customer.

d) Stratified samples:

Break down the population in terms of demographic variable like age, gender, education,
income and profession. Then pick the samples either in a random or in a systematic
manner.

2) Non-Probability samples:

These are the samples that are representative of the population but not statistically
representative. They are selected on the basis of prior knowledge of the population. They
are divided as;

a) Purposive samples:

This type of sampling requires prior knowledge of population. Then the selection is
being done on the basis of the proportion of the population. It will then be representative
but not statistically.

b) Quota samples:

When research is to be done for different areas or group, quota can be allotted to purposive
samples in the same proportion.

c) Replicated samples:

These samples are used for comparison purpose e.g. comparing behaviors of urban and
rural consumers.

43
d) Multi phase samples:

These samples are selected particularly when the target is not very clear & redefined again
& again. The contacts are made from frame to frame before the target can be correctly
defined.

Sampling technique used -

In this project the technique of sampling used was Purposive Sampling. In this
project case sample were the builders in Pune region.

SAMPLING PLAN:

1) Sample Population –
Sample population for this market research is builders from Pune.

2) Sample Frame –
Builders, which were member of PBAP (Promoters & Builders Association of
Pune).

3) Sampling unit –
Builders and architects from database available.

4) Sampling Method –
Non-Probability sampling method from which Purposive sampling technique
was selected.

5) Sample Size –
Sample size was 60 Builders.

6) Sample approach Plan –

Getting appointments from Builders and then interviewing them along with
structured questionnaires were also being filled.

44
Chapter6.4

DATA COLLECTION: -

The data, which a researcher collects, is divided into two types, which are based on
nature of collecting data. They are as follows: -

6.4.1 PRIMARY DATA: -

It is the method in which the data is collected by on field research. These are the data
collected or gathered specially for the project in hand. The sources of primary research are

 Personal Interviews

 Survey Method

Method used for this research is Questionnaire approach: -

This method of data collection is quite popular, particularly in case of big enquiries.
It is being adopted by private individuals, research workers, private and public
organizations and even by governments. In this method, a questionnaire is sent to the
persons concerned with a request to answer the questions and return questionnaire. A
questionnaire consists of a number of questions printed or typed in a definite order on a
form or set of forms. The questionnaire can also be mailed to respondents who are
expected to read and understand the questions and write down the reply in the space meant
for the purpose in the questionnaire itself. The respondents have to answer the questions on
their own.

Primary Data –
Primary data was obtained by getting structured questionnaires filled up
by Builders (Direct customers).

45
6. 4.2 SECONDARY DATA

The secondary data are those which have already been collected by someone else and
which have already been passed through the statistical process. When the researcher
utilizes secondary data, then he has to look into various sources from where he can obtain
them. In this case he is certainly not confronted with the problems that are usually with the
collection of original data. Secondary data may either be published data or unpublished
data. Usually published data are available in:
1. Books, magazines articles and newspapers
2. Reports and publications of various associations connected with business and
industry, banks, stock exchanges, etc.
3. Technical and trade journals.
4. Various publications of foreign governments or of international bodies and their
subsidiary organizations.
5. Reports prepared by research scholars, universities, economists, etc. in different
fields.
6. Public records and statistics, historical documents, and other sources of published
information.
Secondary data –
Secondary data was collected from
- Reports available.
- Site research
- Magazines

6.5 Analytical techniques and statistical tools used:

Analytical technique used was simple analysis of Tables, Graphs and

Statistical tool used was Percentage method.

46
6.6 LIMITATIONS:

a) This research is limited to Pune region only.

b) The number of respondent that can be contacted is not very high due to time
constraint.

c) Contacted persons at fewer times were not the correct respondents because they
were lacking of knowledge needed to answer the few questions.

47
DATA ANALYSIS AND
INTERPRETATION

48
 Chapter 7 - Data Analysis and Interpretation
The analysis of data collected was done by using simple analysis technique. Each and
every question from Questionnaire was analysed and interpreted separately.
* Builders *
Q. Have you heard about Home Automation or Electronic Security Systems?

a) Yes b) No
Heard about System Number of builders
Yes 56
No 4

Analysis: Out of 60 builders visited 56 were heard about the system.

Interpretation: Most of the builders were heard about either Home automation or
electronic security systems.

49
Q. Have you implemented electronic security systems or home automation system
in any projects of yours?

a) Yes b) No

Analysis: Almost 90% of builders have implemented any kind of electronic security
system.

Interpretation: Builders who have implemented any kind of electronic security system
were in good number. This showed that builders were becoming conscious
about technological changes happening into the industry.

50
a) If yes, why you have implemented that?
1) Buyers were demanding
2) Other builders were implementing
3) It has become necessity
4) Any other

Analysis: Almost 50% of builders were implementing the systems because other
builders were implementing. 30% of builders said they implemented the
system because end users demanding so.

Interpretation: Builders were following trends happening into market. They also take
into account views of end customer.

51
Q. Which system have you implemented?
1) Video surveillance (CCTV)
2) Fire Alarms
3) Smoke detectors
4) Access controls (Light diming/Remote control of accessories)
5) Smart cards/Biometric access
6) Completely Integrated System

Analysis: Builders who have implemented complete Integrated Home Automation

Solution were less in number. Many have implemented two or more things
simultaneously.

Interpretation: Most of the builders were still not opting for complete integrated
systems, this may be due to high cost, non-availability etc.

52
Q. You received following for your implemented systems?
a) Warranty
b) Guarantee
c) After Sales Service
d) Value added service
Received with system Number of respondents
Warranty 45
Guarantee 2
After sales service 36
Value added service 40

Analysis: Most of the builders received warranty for their systems. After sales
services were received by very less people.

Interpretation: Competitors of DS in ongoing market were lacking in good after sales

service. Companies were giving warranties to customer but after sales
service was not there or was poorer than expected.

Q. Which company’s system you implemented?

a) Honeywell Automations
b) Commax
53
c) Zicom
d) Digihome Solutions
e) Any other (please specify)
Company Number of Builders
Honeywell Automation 4
Commax 35
Zicom 8
Digihome Solutions 2
Other 1

Analysis: Commax was the company whose Video Door Phones were implemented
more than any other company’s system. Zicom’s systems were at second
place.

Interpretation: In VDPs Commax dominated the market because of its easy

availability and low price.

54
Q. You have chosen that company because –

a) Price was low

b) Easily available
c) Established Brand
d) Other (please mention)
Reasons from choosing company Number of builders
Price was low 12
Easily available 30
Established Brand 8

Analysis: More than 50% builders chosen the company because it was easily available
to them. Some builders have chosen the company because its price was low.

Interpretation: Existing market players were good at easily making systems available
to builders. Price was also the factor considered by the builders for choosing
any company’s system.

55
Q. From whom you have bought that system?
a) Company
b) Dealer
c) Own manufacturing facility
d) Any other please specify
Bought System from Number of builders
Company 14
Dealer 35
Own manufacturing facility 1

Analysis: Most of the builders have purchased the system from dealers, some of
builders bought the system from company directly. One builder has its own
manufacturing facility for security system development.

Interpretation: Very few competitors follow direct selling, all other sale their systems
through dealers.

56
Q. You came to know about the system through –
a) Newspapers
b) Magazines
c) Sales Executive
d) Others specify
Come to know through Number of builders
Newspapers 6
Magazines 12
Sales executives 32

Analysis: Large number of builders comes to know about the company through Sales
executives, magazines and newspapers were least utilized sources of
information.

Interpretation: Builders come to know about the company mostly through sales
executive, which indicates that many existing players were not marketing
through newspapers or magazines.

57
Q. Have you concerned, before buying system; to –
a) Influencers (Architects, project engineer)
b) Other builders
c) End users
d) Anybody other than above mentioned people
Concerned to Number of builders
Influencers (Architects) 14
Other builders 13
End users 23

Analysis: Most of the builders told that they taken views of end users before
implementing any electronic security system, few builders have consulted
architects before buying electronic security system.

Interpretation: End users were the major influencers for builders to take any decision
on buying of Electronic Security System. Another most important
influencers were Architects.

58
Q. Are you implementing such systems from same company in each and every project of
yours?

a) Yes b) No

Analysis: More than 30 builders buy the electronic security system of same company,
while around 20 builders have shifted the company for various reasons.

Interpretation: Number of builders dissatisfied with their existing system was almost
equal to satisfied builders. This indicates that existing market players were
weak in some or other areas.

59
A) If bought from same company, why?
1) After sales service provided is good
2) Quality of systems is good
3) Value added services are best
4) End customers are satisfied

Analysis: 44% of builders said that they are going for the same company because end
customers are satisfied. 26% of builders are opting the same company
because the quality of product is good.

Interpretation: End customers of builders who implemented the system were satisfied
by the system according to builders and that is the reason for buying
systems from same company.

60
B) If not bought from same company, why?
1) After sales service is bad
2) Quality is not at par
3) Maintenance is problematic
4) Price is too high
5) Installation period not specified
6) Dissatisfied end customers
Not going for same company Number of builders
After sales service was bad 15
Quality was not at par 2
Maintenance was problematic 8
Price was too high 6
Installation period was not specified 4
Dissatisfied end customers 5

Analysis: Many builders were not satisfied with the after sales service of their existing
system provider company. Secondly maintenance problems recurring is the
reason for not buying the system from same company.

Interpretation: Builders were more worried about the after sales service provided by
the Electronic Security System provider companies, and were ready to
change if any company provides good after sales service.

61
Q. What was your customer response to that system?

Good Average Bad

Customer’s response Number of builders

Average 4
Good 26
Bad 16

Analysis: - Customers were not responsive to the automation systems was the builders
concern and it was true also. Response to implemented systems was bad
they had to face many problems afterwards.

Interpretation: - End users of the system are having acceptance to the solution but they
want more in the system. Few users are also there who are not satisfied
completely with the solution which they obtained.

62
Q. What extra features you would like to have in your installed system?

a) Storage capacity b) Remote control of appliances

c) Bigger coloured screen d) Any other(please specify) ----------

EXTRA FEATURE IN VDP PERCENTAGES

Improved storage of VDPs 18%
Better after sales service 34%
Customizability 23%
Reduced price 25%

Analysis: - Storage capacity is the most demanded feature amongst builders as they
were asked by their buyers for the same. Screen size is the second most
feature which is followed by remote control access and clarity.

Interpretation: - DS can ask its R & D to work on storage capacity to be included in

Video Door Phones. Also screen size is plus point for DS because it is
larger than any competitor presently.

63
Q. What will be the future demand for such Home Automation Solutions?

Very good Good Average Bad No scope

Analysis: - There is plenty number of builders who believe that Automation Systems
are having good future growth. Very few of builders think that it will be
having minimal growth.

Interpretation: - The Home Automation Industry though right now in India facing
some hurdles, it will be having more growth in near future.

64
Competitor Analysis:
From the research it was found that there were two to three major competitors present in
the market. For Video Door Phones only three competitors were compared and the
inferences are made from that findings.

PARAMETERS DIGIHOME COMMAX ZICOM

SOLUTIONS

*
VDP
1 Screen 7'' 5'' and 7'' 5''
2 Colour Coloured Coloured / Coloured / B.W
B.W
3 Storage No No 32 images
4 Communication 2 way 2 way 2 way
5 Warranty 1 year 1 year 1 year
6 Price around - 7000 coloured -
15,000 17,495
7 Door Release Value Added No No
8 Wiring Single Two Two
9 System PTT(Push To Hands free, Hands free/ cord
Talk) Cord phone phone
10 Unique Feature Yes No No
(More than 2
cameras can be
attached)

As in this Commax is taken as competitor for DS but in fact it is substitute product for all
other major playre’s products.

Observations: Screen size bigger or equal to competitors. Price is less than genuine
players but more compared to its substitue. DS povides value added
service for remote controlled release of door. Another advantage of DS
is that its VDP requires single wiring and is Retrofit, because of which
no remoulding needed of walls and electric wiring.

65
Interpretation: Digihome Solution’s VDP is having upper hand in many aspects over
the genuine competitors. This is so because DS has its own R & D, also it
has manufacturing plant in India only.

B) For Competitors analysis Michael Porter’s five competitive forces are correlated with
the present situation of market.

66
Michael Porter’s five Competitive forces are -

Potential Entrants

Industry Competitors
Suppliers Buyers

Substitutes

67
When the data was collected the competitive forces of Michael Porter were related to facts
as follows –
Potential Entrants – As the industry of Home Automation and Electronic securities
growing new entrants are also increasing due to attractiveness of
the industry. From some of the companies who are trying to enter
into the Home Automation Industry one is Reliance
Communication tie up with Microsoft for IPTV etc.

Buyers – Buyers for this industry are Builders and Bungalows for some instances.
When considered and studied the Real Estate Industry in the India, it was
found that it is going to increase with good pace. So to stand out different
from other builders one has to opt for these type of Home Automation
Solutions afterwards it will be going to be Trend or must for the builders to
provide at least Electronic Security Systems to end buyer.

Industry Competitors – Segment rivalry was found prominent in this industry.

Existing players or competitors are strong and frequently such
rivalries lead to frequent price wars, advertising battles (to less extent) and
new product introductions. This is going to make competition more
expensive. E.g. Honeywell automation, India is biggest player and it gives
strongest competition than any other player in Industry.

Substitutes – Like other industries, this Electronic Security Systems industry was
also having substitute products like Commax Video Door Phones,
which place limit on prices and profits.

Suppliers – Suppliers for this industry are mainly It industries, so for any
industry willing to enter into this industry needed IT industry’s
support. For Digihome Solutions its IT need was fulfilled by Aftek
Group Company, parent company of Digihome Solutions. So
Digihome Solutions was having upper hand than its competitors.

68
OBSERVATIONS AND
FINDINGS

69
Chapter 8 - Observations and Findings: -

1) The market for electronic security equipments in India is expected to

grow at 25 to 30 percent for the next five to ten years
2) Organised players comprise only 20 percent of the market but account
for 80 percent of the revenues generated
3) India will graduate to using higher-end security products as compared
to other countries were the market witnessed the evolution in the
usage of different products
4) The residential and educational sectors have been largely untapped
and will help in boosting growth in the electronic security industry
5) Trend in the market is the most important reason for Builders to
decide upon which amenity should be given.
6) Average expenditure of builder on his single project was found to in
between 5-10 crores. Small scale builders spend around 5 crores or
less on single project in Pune.
7) VDP is seemed to be the most important feature for builders in
electronic security system.
8) Customers were positively responding to the automation systems was
the builders concern and it was true also.
9) Response to implemented systems was bad they had to face many
problems afterwards.
10) Most of the builders who implemented have not found any deficiency
in there systems. But number of builders who found deficiencies is
also not less.
11) More than 50% of builders found Maintenace as main problem in
installed system.
12) Storage capacity in the VDPs is the most demanded feature amongst
builders as they were asked by their buyers for the same.
13) This data obtained shows that there is clear market leadership of
Commax but that too in Video Door Phones only.

70
14) Other players of Home Automation industry are also present but not
prominent.
15) There are plenty of builders who believe that Automation Systems are
having good future growth. Very few of builders think that it will be
having minimal growth.

71
CONCLUSIONS

72
Chapter 9 - Conclusions: -
1) Builders present in Pune are having Experienced and Entrant
builders with almost same number. This clearly indicates that
Real Estate industry is showing healthy growth and that’s why
it is attracting more entrants into the Industry.

2) Builders who are dealing in apartments and Townships are the

potential customers for DS right now, as it provides only
building solutions only. As number of such builders is
comprehensive DS has a good market for its solutions.

3) Experienced builders are more in number than new or entrant

level builders.

4) Builders with experience are more in number hence Trend in

the market is the most important factor for them while giving
amenities to end user.

5) Importance of lifestyle in giving amenities suggests that

builders are now become conscious about the needs of
customers.

6) Builders are expending more money on single projects which

means they are concentrating on that project completely and
want to give more to the end user.

7) Awareness about the Automation system in builders of Pune is

not good which means that measures taken for the same are less
effective.

73
 8) Video door phones have a better market potential as most of
the builders think it is the important feature for electronic
security system.

9) Builders who have implemented electronic security system or

part of it are not completely satisfied they are satisfied only.

10) Few builders not satisfied with their current systems which
may be due to the fact that maintenance service provided was
not at par.

11) Commax is the current market leader for VDPs in Pune.

12) Competitors in Integrated Home Solutions for DS are present

but none of them has clear leadership in the market.

13) Builders are looking forward to such Integrated Home

Automation Solutions and expecting to grow well in near
future.

14) Architects were more aware about the solution which means
that marketing channel is not in the right direction.

15) One more fact that Architects have not worked on many
projects including such solutions is that awareness and sales of
Integrated solutions are not achieved.

16) Price is the factor which builder emphasizes while purchasing

such solution and also Reliability of system is also considered
important for such buying decisions.

17) Builders having tendency to give something additional to the

end buyer will be the potential buyers for the DS. After that
74
builder who willing to accept the innovative changes can also be
potential buyers for the DS.

75
 RECOMMENDATIONS

Chapter 10 - Recommendations: -
Strategy for developing Marketing Mix:
For this first of all target market had been segmented and then 4 P’s were worked.
76
This research project was based on survey of builders who have done any kind of
implementation of electronic security system.
A) For target segmentation some steps been has followed which are –
1. Needs-Based Segmentation: -
Grouped customers into segments based on similar needs and benefits sought by
customer in solving a particular consumption problem.
In this step, needs of the builders are found out and understood. To segment any
market understanding the needs of the customer is very much necessary.
Class A, Class B and Class C are groups of builders formed.

2. Segment Identification: -
For each needs-based segment, determined which buying behaviour makes the
segment distinct and identifiable. Some of those are listed down
a) Number of projects done
b) Type of projects done
c) Experience in the field of construction
d) Important factor while giving amenities
e) Average budget for single project
f) Extra charges builder want to add into the price
g) Type of builder

3. Segment Attractiveness: -
Determined the segment attractiveness criterion, and then determined the overall
attractiveness of each segment.
To attract the segments of builders, attractiveness criteria can be decided as –
a) Market growth
b) Competitive intensity
c) Market access
d) After sales service etc.

4. Segment Positioning: -
For each segment, creating a “Value proposition” and product- price positioning
strategy based on that segment’s unique customer needs and characteristics.
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 Class A –DHG, a solution which includes everything for these elite builders.
Class B – SHG, a solution which is having basic automation products in it.
Class C – Standalone Video Door Phones and Automated switches for cost
concerned and low budget builders.

After following these steps three classes of Builders are briefed with their characteristics.
Class A-Builders –

- They have done more than 10 projects.

- They constructed Apartments, Row houses and Townships.
- They are having experience in the construction more than 10 years.
- Average budget for project is more than 20 crores.
- Extra charges per sq. ft. they want is between 10 – 50 rupees.
- These builders have need for solutions which will be suitable for lifestyle of
end buyer.
- They are ready to give something extra for customer’s delight.

Class B-Builders –

- They have done projects in between 5 – 10.

- They construct both Apartments and Row houses.
- They are having experience of 5 -10 years.
- Average budget for their projects is 5 -10 crores.
- Extra charge they want is more than 50 rupees per sq. ft.
- These builders are opting for those solutions or products which are taken as
Trend in the Reality Market.
- They will buy the solutions only if those are of necessity.
- They are having acceptance for innovative solutions.

Class C-Builders –

- They have done less than 5 projects.

- They construct only Apartments or Row houses.
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 - Have the experience of less than 5 years.
- Average budget for their projects is less than 5 crores
- These types of builders are more focused on the cost of the solution
- They will buy the solutions if it fits into their budget.

These criterions for each Segment or class are not exclusive or compulsory; there are
exceptions to it but by research the majority of builders fall in either of class.
These segmentation or classification of builders is definitely going to help newer strategies
and customized solutions for particular class.

Some other recommendations are -

1) Use of ACTIVE BUILDERS REPORT. This is useful when, for
example, you have a product that is considered ‘prestige’ because you
would concentrate your marketing efforts towards the builders who
work on higher value jobs.

2) Use the report to segment the builders in your market and ensure that
each main player is contacted on a regular basis.

3) Offerings of products to different classes of builders can be done as

follows –
1) Class A builders: DHG (Digital Home Gateway)
2) Class B builders: SHG (Secured Home Gateway)
3) Class C builders: Standalone products like VDP (Video door
phones) and Automated Switches.

4) DS should target the builders depending on their type or classes

suggested instead of ‘going to everyone with everything’.

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5) DS has a set of Products which can be sold to different classes of
builders and hence DS needn’t have to spend on R & D for the same.

6) DS has competition from players like Honeywell automation India

and Zicom in Integrated home automation solutions. To tackle that DS
needs to work on Pricing and After sales service.

7) To outperform in this competitive market DS has to come with some

Value additions like -
 Advertising through DHG i.e. On display panel it can
show ads from various suppliers or providers of Wi-Fi etc.
 Website Advertising i.e. giving web space to builders and
suppliers on site of Digihome Solutions.
 Increasing the after dales service period will create more trust in
the Brand.

8) DS also has threat from substitute products in category of VDPs like

Commax, for that it has to increase the expenditure on marketing i.e.
advertisements. It can be
- Advertising in Real Estate Magazines and News Papers.
- Advertising by considering solution as Energy Saver or Smart home.

9) Right now DS is not selling though any channel, it is following the

direct marketing concept, so they cannot compete with their substitute
on channel front. To compete with them DS has to depend on price
lowering strategy if at all they want to compete.

10) Company can promote its offerings by distributing catalogs at the

site offices of their cliental.

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11) DS should work on the storage capacity of VDPs as it was the
feature found necessary by many builders.

12) Alliance with experienced companies which are providers of

building solutions i.e. construction materials will make penetration of
DS into the market little easy.

13) Trust & Rapport development has to be given importance over

everything else.

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 REFERENCES

References: -

Books: -
 RESEARCH METHODOLOGY - C. R. KOTHARI

82
  MARKETING MANAGEMENT - PHILIP KOTLER 12TH EDITION

Magazines and Reports: -

 Real Properties, July 2008. Monthly magazine

 Electronics Publications
 Press Information Bureau Government Of India -
HOUSING CONDITION IN INDIA: HOUSING
STOCK AND CONSTRUCTIONS.
 Electronic Security Systems in India, May 2008

Websites: -
1) www.aftek.com
2) www.digihome.co.in
3) www.realproperties.mht

4) www.aiaindia.mht

5) www.indiquest.co.uk

6) The Road Ahead « Indi Quest Research Analyst

Weblogs.mht

Annexure
QUESTIONNAIRES

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 BUILDERS

Q.1) Have you heard about Home Automation or Electronic Security Systems?

a) Yes b) No

Q.2) Have you implemented electronic security systems or home automation system
in any projects of yours?

a) Yes b) No

a) If yes, why you have implemented that?

1) Buyers were demanding
2) Other builders were implementing
3) It has become necessity
4) Any other

Q.3) Which system have you implemented -

1) Video surveillance (CCTV)

2) Fire Alarms
3) Smoke detectors
4) Access controls (Light diming/Remote control of accessories)
5) Smart cards/Biometric access
6) Completely Integrated System

Q.4) You received following for your implemented systems?

a) Warranty
b) Guarantee

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 c) After Sales Service
d) Value added service

Q.5) Which company’s system you implemented?

a) Honeywell Automations
b) Commax
c) Zicom
d) Digihome Solutions
e) Any other (please specify)

Q.6) You have chosen that company because –

a) Price was low

b) Easily available
c) Established Brand
d) Other (please mention)

Q.7) From whom you have bought that system?

a) Company
b) Dealer
c) Own manufacturing facility
d) Any other please specify

Q.8) You come to know about the system through –

a) Newspapers
b) Magazines
c) Sales Executive
d) Others specify
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Q.9) Have you concerned, before buying system; to –

a) Influencers (Architects, project engineer)

b) Other builders
c) End users
d) Anybody other than above mentioned people

Q.10) Are you implementing such systems from same company in each and every project
of yours?

a) Yes b) No

A) If yes, why?
1) After sales service provided is good
2) Quality of systems is good
3) Value added services are best
4) End customers are satisfied

B) If no, why?
1) After sales service is bad
2) Quality is not at par
3) Maintenance is problematic
4) Price is too high
5) Installation period not specified
6) Dissatisfied end customers
Q.11) What was your customer response to that system?

Good Average Bad

Q.12) Extra feature you would like to have in your system -

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 a) Improved storage of VDPs
b) Better after sales service
c) Customizability
d) Reduced price

Q. 13) Which are your future projects?

Q.14) What will be the future demand for such Home Automation Solutions?

Very good Good Average Bad No scope

Name of builder:

Name of Person contacted:

Designation:

Location:

Contact number:

Date:

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