TABLE OF CONTENTS

S.NO 1 2 3 4 5 6 PARTICULARS PRODUCT COMPONENT OF MARKETING MIX PRICE COMPONENT OF MARKETING MIX STRATEGIES BY THE COMPETITORS CRITICAL INPUTS/ SUGGESTIONS CONCLUSION REFERANCES PAGE NO 3 5 6 7 8 9

STUDY OF THE PRODUCT AND PRICE COMPONENTS OF THE TWO MAIN COMPETITORS OF THE HAVELLS CFL BULBS ALONG WITH THE MAIN STRATEGIES ADOPTED BY THEM AND SUGGESTIONS FOR THE IMPROVEMENT OF THE HAVELLS CFL BULBS METHODOLOGY Study of the product and price components of the two competitors of the CFL Havells bulbs is based on the interaction done with the dealers & Consumers and evaluation of the various marketing variables of two main competitors Philips and Bajaj. EVALUATION OF DIFFERENT MARKETING VARIABLES UNDER PRODUCT COMPONENT OF THE MARKETING MIX a) PRODUCT VARIETY Form: The products are not differentiated to a great degree as far as the size, physical structure and shape are concerned. Every manufacturer is making CFL bulbs in either straight or coiled form. Differentiation is only observed in Philips CFL having yellowish color. Features: CFL bulb product is not differentiated among the various manufactures as far as the features are concerned. Though they have come up with new products such as Green bulbs (energy saving) & Liliput (small size) bulbs. Customization: Customization of the CFL bulbs is not possible as only simple manufacturing process is involved. CFL has to be fitted in conventional holder.

 Performance quality: Performance quality is the main factor which is valued most by the consumers of the CFL. Performance quality is determined by the life of the CFL bulb and consistency in maintaining uniform light over a period of its lifetime. CFL of Philips brand are rated the best by the consumers on above performance factors and where as those of the Bajaj brand are rated below the Havells brand. Conformance quality : No difference in conformance quality is there as all the units being produced are identical and have the same specifications. Durability and Reliability: Durability and Reliability of the CFL bulbs are the most valued features in the choice among different brands .CFL bulbs of the Philips brand are rated better both in durability and reliability while those of the Bajaj brand are rated comparable to Havells CFL bulbs. Style : No appreciable difference is observed in style among different CFL makes. b) Quality : Quality is another important variable of the product component of the marketing mix. Quality in CFL bulbs is governed by the combination of the reliability, durability and performance parameter of Lumen per watt. CFL Bulbs of Philips are rated better by the consumers in quality, followed by Havells and Bajaj. c) Design: Design of CFL bulbs is simple and only the above three parameters of the quality need to be addressed. No significant differentiation in design parameters is observed among different CFL manufacturers.

d) Brand name: Philips is a better preferred brand product than both Bajaj and Havells as they are into so many electronic products which makes them a house hold name for brand and quality. e) Packaging : Packaging is not a major factor of differentiation among different CFL brands. All the brands are having light colour packaging and lacks the vital information of comparison of wattages vis a vis incandescent lamps. However designer packaging may help in differentiating it from other brands. f) Sizes: No differentiation observed in wattages being offered by the different manufacturers as different ranges are made by all the three brand. g) Warranty: No differentiation in products is observed as far as the warranty are concerned. The warranty of one year is offered by almost all the manufacturers of the CFL bulbs. EVALUATION OF DIFFERENT MARKETING VARIABLES UNDER PRICE COMPONENT OF THE MARKETING MIX a) Price : Price is the most important parameter among all marketing mix variables of product ,price , promotion that affects the sale of CFL bulbs. Brand loyalty is observed among user of the CFL bulbs as they prefer Philips CFL even if price is somehow higher. But due to price reasonability perceived by customer, Havell and Bajaj make CFL has sizable share in market due to price sensitive consumers. The price of Philips CFL is highest for the given wattage among all CFL manufacturers , followed by Havells and Bajaj.

b) Discount : Discount on MRP is given to customer by the some retailer and promotional bundle offer is also given time to time. c) Payment period: No facility of payment period is there for consumers as this product is a low value item. However varying payment periods are given by different manufacturers to dealers. Advance payment is to be made by most of the dealers and retailer before making purchases. For large dealers payment period is 15 days from the date of receipt of the order. From consumer point of view, CFLs are treated as fast moving consumer goods, thus customer is ready to pay instantly based on the quantity required, cost of the bulb, paying capacity and availability. d) Credit facility: As mentioned above, Credit facility is not desired, as it is demanded by consumers who prefer it over normal bulbs for its long lasting features, energy savings and illumination comparable to the tube lights and fits easily in the same holder. But depending on the relation between distributor and shopkeeper certain credit facilities ranging from 7-10 days are given to shop keepers by distributors. MOVES OR STRATEGIES BY THE COMPETITORS. Consumer of CFL lamps are price conscious and they wants value for money. The customer perceived value of low cost CFL providing reliable uniform light at low cost is very important. The competitor follows going rate pricing as per market/competition. Good quality CFL manufactured by Philips , Havells and Bajaj brand comes at a higher price than low quality CFL . Thus the consumer faces a tradeoff between the quality and price. Both Philips and Havells brand are the preferred choice for better quality vis a vis price.

Philips has created a brand image in the CFL bulb category for good quality due to its superiority in lightning segment in Indian market for decades. The Philips product is also better promoted through advertisements in both the print and electronic media. The market penetration of the Philips CFL bulb is also more as compared to Havells due to better distribution channel and visibility at electrical vendors shops. Havells having good market penetration in B2B segment use its experience in expanding CFL market. Havells is also coming up with advertisement of other electrical goods and appliances such as Mixers grinder, Microwave, Television etc. for its electrical consumer good and aggressively trying to penetrate the consumer market. CRITICAL SUGGESTIONS FOR IMPROVING PRODUCT FUTURE OF HAVELLS CFL BULBS. Proper marketing mix for both the end consumers and trade channel partners needs to be developed for product , price ,place and promotion components. For end consumers further improvement in the quality of CFL bulbs is desired vis a vis Philips. For this certain investment in R& D has to be made .For consumers valuing low price, durability and reliability, the price of the Havells CFL bulbs are to be reduced. This will help in capturing the market share. And increasing its volume 7 market share. Once the customers valuing good quality have started using the Havells CFL bulbs, the cost can be recovered with large volume.

 As the CFL bulbs fall in the category of durable goods, they require more personnel selling touch and aggressive advertising campaign highlighting both the good quality light and low cost .It should be done by the company in both print and electronic media. Warranty period can be increased to showcase reliability of product to the customer. CFL bulbs are required immediately and consumers prefer to buy it at the nearest shop. Consumer would not prefer to go to outlets of Havells such as Galaxy and Home town just to buy a CFL bulb which may be required at any moment. Hence, availability of the Havells CFL bulbs at retail store has to be increased. This can be done by creating dealer network and increasing dealer margin. Packaging can be improved upon. None of the CFL manufacturers is giving a comparative chart of wattage of CFL lamps and incandescent lamps. This will help consumer in making a better choice. A niche market of aesthetic CFL light fixtures for garden lights and other such areas can be developed.

CONCLUSION The Havells CFL bulbs are rated good in quality by most of the consumers . But the sale is restricted due to its non availability, poor advertising and high cost. For improving the sales both short term and long term measures have to be taken.

In the short run, the firm can reduce the price, increase the sales force, increase the advertising expenditure. In the long run ,the company can improve upon the existing product vis a vis Philips, increase the dealer and distribution network and develop flank products for competing with other low cost brands. Aggressive marketing campaign for familiarizing with the product and its unique selling proposition to the consumers will help a lot.

REFERENCES

1. Secondary data collected from Rajdeep Electricals, Tikri kalan & Geetu Electricals Noida. 2. Basic text , Marketing Management by Kotler, Keller, Jha & Koshy.