Market Research of Eveready Torches

CHAPTER 1 OBJECTIVES OF THE STUDY ? To know the customer perception towards Eveready flashlights with respective to the china made rechargeable torches. ? To find out the factors that tends to put an impact on Eveready LED torches. ? To find out what are the parameters customers/consumers look into before purchasing flashlight/torches. ? To know price sensitivity. CHAPTER 2 INTRODUCTION A ‘flash light’ usually called a ‘Torch’ is a hand-held electric powered light source. It caters the lighting needs of consumers. In the case of emergencies when light goes out, you are going to your way to phone; all you need is a flashlight or torch to illuminate your way. You may still need to fix things when the sun goes down, if you are building something or working on your car, flash lights can help you see what you are doing. When you go for a dental check up you might see the dentist using torch. Whether you are going to take a walk or on your way out of the door at night you need a torch to help you see the way, as well as stay safe. About flashlight: A flashlight (usually called a Torch outside North America) is a hand-held electric-powered light source. Usually the light source is a small incandescent bulb or light-emitting diode (LED). Typical flashlight designs consist of the light source mounted in a parabolic or other shaped reflector and the power source is electric batteries and an electric power switch. While most flashlights are hand-held, there are head or helmet-mounted flashlights designed for miners and campers and battery-powered lights for bicycles. The term flashlight is used mainly in the United States and Canada. In other English-speaking countries, the most common term is torch or electric torch. On January 10, 1899, American Electrical Novelty and Manufacturing Company obtained U. S. Patent No. 617,592(filed 12 march 1898) from David Misell, its English inventor. This â€Å"electric device† designed by Misell was powered by â€Å"D† batteries laid front to back in a paper tube with the light bulb and a rough brass reflector at the end. The company donated some of these devices to the New York City police, who responded favourably to them. These early flashlights ran on zinc-carbon batteries, which could not provide a steady electric current and require periodic ‘rest’ to continue functioning. Because these early flashlights also used energy-inefficient carbon-filament bulbs, â€Å"resting† occurred at short intervals. Consequently, they could be used only in brief flashes, hence the popular name flashlight. Power sources for light: The most common power source for flashlights is the battery. Many types of batteries are suitable for use in flashlights, such as button cells, alkaline batteries, lithium batteries and rechargeable NiMH, NiCd batteries and lithium ion batteries. The choice of batteries will depend on the light source used, and will usually play a determining role in the size and shape of the flashlight. Some flashlights are solar powered, using the energy generated from a solar cell to charge an on board battery for later use. [pic] COMPANY PROFILE [pic] 2. 1 COMPANY PROFILE: Ask any Indian consumer to name a battery and the first brand that comes to mind is Eveready. Not just among batteries, Eveready is a powerful brand across categories. Eveready has a portfolio comprising dry cell batteries (carbon zinc batteries, rechargeable batteries and alkaline batteries), flashlights (Torches), CFLs (compact fluorescent lamps), and mosquito repellent and packet tea. Eveready’s strength is the result of a continuous and well-orchestrated brand development strategy that maximizes the value from each consumer touch-point. [pic] â€Å"Give me red† is the iconic urban face of Eveready. The advertising by-line of the popular red series of batteries, it is today symbolic the empowered urban lifestyle that the brand reflects. The original, path-breaking campaign won as many as 11 advertising awards. The current television commercial on Eveready ultima, which has explored and demonstrated the technique of light painting(through the TVC) has been very well received and is a one of its kind commercial in the entire batteries segment. The unmatched consumer confidence is also reflected through the various accolades that the company has got over the years. In a country where around 40% households don't have access to enough electricity and require basic sources of light to sustain themselves, Eveready provides portable lighting solutions to more than 60 million households. Highlights: ? In the confederation of Indian industry(CII)’s ‘Brand of the year’ 2005 shortlist, Eveready made the top ten finalists list, along with brands like Nokia, HP, Titan, Dabur and five other Hindustan Lever Brands. ? As per AC Nielsen, Eveready stood 7th among all FMCG companies in terms of growth in the year 2004-2005. The economic times’ Brand equity survey of Brands by sales, april2004, put Eveready at no. 22 across brands in all categories. ? As per vertebrands’ survey, on a 10-point scale, Eveready scored 8 on popularity and 7. 7 on contemporariness. Of all consumers surveyed, 41% called it â€Å"The Only Brand for Me†. Eveready industries India, ltd (EIIL) previously known as Union carbide India, limited is the flagship company of the B. M. khaitan group. The brand Eveready has been present in India since 1905. EIIL is the world’s third largest producer of carbon zinc batteries, selling more than a billion units a year. EIIL is India’s largest selling brand of dry cell batteries and flashlights (torches), with dominant market shares of about 46% and 85% respectively. HISTORY: EIIL started its operation in India in 1905. The first dry cell batteries were imported from the USA and sold in the major cities of the country. These batteries were primarily used in imported torches. In 1939, the company set up its first battery plant in Kolkata. This was followed by another battery manufacturing plant in Chennai in the year 1952. A torch manufacturing plant was set up at Lucknow in 1958. Today it is one of the largest torch manufacturing plants in south East Asia. The plant manufactures the full range of brass, aluminium and plastic torches. In 2005, EIIL celebrated its 100 anniversary in India. MILESTONES: 1905: national carbon starts its Indian operations with sale of batteries imported from USA. 1934: Eveready Company incorporated as a private company on 12 November. 1939: Camperdown works- first modern battery plant established at Cossipore in Kolkata. 1941: union batteries merges with Eveready Company and the name is changed to national carbon company. 951: renamed as union carbide India ltd, a subsidiary of worldwide multinational, union carbide corporation. 1958: company set its torch manufacturing plant in Lucknow, one of the largest in south Asia. 1996: Mc Leod Russel(India) ltd, merged with EIIL, bulk tea business brought into EIIL fold. 2000: Bishnauth Tea Company merged with Eveready industries India ltd. 2005: brand Eveready is a hundred years old. 2009: EIIL acquires controlling stake in Uniross SA of France, which is a leading rechargeable battery manufacturer. Eveready is India’s largest marketer of dry cell batteries selling about 1. billion units annually. It is also the largest marketer of torches selling more than 20 million pieces per annum. VISION STATEMENT: For over a century, our corporation has been a partner to consumers with our expertise in portable power and light. Today, we endeavour to be the perfect Companion to consumers by providing value-for-money brands with Tangible Differentiation in quality every day; we seek Consumer Proximity to ensure the enjoyment of better living. Our core competence will be based on these three core values for the total synergy and future profitable growth of our corporation. Company’s philosophy on corporate governance: The company believes that good corporate governance consists of a combination of business practices which result in enhancement of the value of the company to the shareholders and simultaneously enable the company to fulfil its obligations to other stakeholders such as customers, vendors, employees, and financiers and to the society in general. The company further believes that such practices are founded upon the core values of transparency, empowerment, accountability, independent monitoring and environmental consciousness. The company makes its best endeavours to uphold and nurture these core values in all aspects of its operations. 2. 1. A. MANUFACTURING: Eveready has its manufacturing units spread all across the country in order to maximize logistical efficiency and reduce time-to-market. The Company’s state-of-the-art manufacturing units are located in Kolkata, Noida, Uttaranchal, Chennai, Lucknow and Maddur. The company has high-speed manufacturing units, both for batteries and flashlights, with in-house facilities for metal flashlights along with a fully automated injection-moulding set-up for plastic flashlights. Eveready also has a full-fledged machine design group at Chennai with capabilities of making special-purpose machines for both captive consumption and customer-specific requirements. The manufacturing units of Eveready are ISO 9000 and ISO 14000 certified. Eveready has a sophisticated R& D laboratory for design and testing of batteries. The laboratory is NABL accredited. The company also has its own flashlight design and development unit with the latest computer aided design facility. 2. 1. B. DISTRIBUTION: Eveready has a wide distribution network all over the country with 15 branches, 40 godowns and 4,000 distributors. Our products are available at grocery, general provision, music, electrical, hardware, stationery, gift /novelty stores, at the chemists’ shops and at photo studios and printing centres. So much so, that many of our products are even available at the paan and cigarette shops. According to AC Nielsen, Eveready batteries are available in 3. 3 million outlets out of a total universe of 7. 3 million FMCG outlets. The distribution structure extends coverage out to 5000-population villages. The company employs a strong sales force so that they can operate the extensive sales network successfully. As Eveready walks ahead in second century of existence, we have the following objectives – †¢ To consolidate our benchmark supplier position in all traditional outlets for batteries and flashlights. †¢ Employ a systematic and scientific approach towards increasing our reach and quality of reach. †¢ To leverage our sales & distribution competencies into identified newer channels †¢ To service the outlets with a diversified range of products. This includes batteries, flashlights, home lights, packet tea, mosquito repellents, CFLs and bulbs. To constantly explore new selling arrangements in identified markets to improve effectiveness of servicing. 2. 1. C. CORPORATE FACT SHEET: SBU's †¢ Batteries(including Rechargeable Batteries) †¢ Flashlights †¢ Packet Tea & Insect repellent †¢ Lighting Products †¢ New Products & Business Development †¢ Powercell Division Workforce: As on 31. 12. 08 (including Powercell) 2627 R&D facility Kolkat a, West Bengal Annual Sales: 92,530. 74 (Rs Lakhs) Manufacturing Locations and Sales offices: [pic] 2. 1. D. PRODUCTS: Eveready products are available under the mother brand name Eveready (batteries and lighting solutions) and also extended brand names like EVEREADY ULTIMA(Alkaline Batteries) ? EVEREADY RECHARGE(Rechargeable Batteries) ? EVEREADY JEEVAN-SATHI(Brass Torches) ? EVEREADY DigiLED(LED Flash Lights), ? EVEREADY CFL(Compact fluorescent lamps), ? EVEREADY POWERON (homecare products) and ? EVEREADY PREMIUM GOLD/JAGOO/TEZ (packaged tea) etc. Eveready offers a basket of FMCG products that find place in every household- Batteries: [pic] It is certainly not an overstatement that battery and Eveready have been synonymous with each other in India since time immemorial. After all, this is the only battery that has been with the people- in their good and bad times, in light as well as in darkness- through generations, for over a century. Eveready has diversified the portfolio to suit everyone’s needs. Eveready offers a wide range of batteries to fulfil the diverse portable energy requirements of progressive India. It has also come out with the Eveready blue batteries, which are long-lasting value-for-money solutions for your low-drain devices like TV/DVD remote controls, table/wall clocks and portable FM radio players. Zinc carbon batteries: Eveready is one of the world’s largest producers of zinc carbon batteries, selling more than 1 billion batteries every year. The Indian market for dry cell batteries is estimated at 2. 2 billion pieces by volume and rs. 14 billion by value, and Eveready is the undisputed market leader with more than half of the share of the market. The zinc carbon batteries are ideal for: flashlights, remote controls, toys, penlights, cameras, clocks, medical equipments, FM radios/MP4 players, etc. Alkaline Batteries: [pic]Eveready ultima alkaline battery is the ultimate energy solution to the power-hungry electronic gadgets of modern times. It is undoubtedly a new benchmark of quality & performance in the category of alkaline batteries. The promise of performance comes with an affordable price tag, making it truly an ultimate choice. Eveready ultima alkaline batteries are best suited for power-hungry new age gadgets like- digital cameras, remote-controlled toys, MP3 players, high-end portable audio-recording systems, etc. Rechargeable Batteries: [pic]There is a surfeit of power-hungry electronic gadgets in the market today. With every passing day, the list of such gadgets only gets longer. As an answer to the changing portable energy needs, Eveready has come up with Eveready recharge, world class range of rechargeable batteries. Since today’s high-tech devices demand more powerful batteries, Eveready rechargeable batteries are designed to deliver optimal performance. They are ready whenever you are. The higher end batteries come with an intelligent charger. The intelligent charger range includes chargers of various capacities. Lighting Solutions Eveready offers a wide variety of lighting solutions to suit the requirements of people in both urban and rural areas. Looking ahead, Eveready sees its business growing in the following fields: ? Mass consumption items like incandescent lamps, colour decoration lamps, etc. ? Energy saving alternatives, like T5 lamps, electronic ballasts, luminaries for fluorescent/compact fluorescent lamps with electronic controls. ? New-age technologies like LEDs & products around LEDs. Compact fluorescent lamps (CFL) In 2007, Eveready forayed into the lighting business with the launch of a range of compact fluorescent lamps (CFL). Halogen lamps: The lamps are so designed that they produce more light per units of energy, thus saving energy, and last longer. Halogen lamps are used in a variety of applications. Eveready has on offer halogen lamps that suit every possible requirement for outdoor lighting and video-shooting purposes. General lighting service /incandescent lamps (GLS): Eveready offers a vast range of incandescent bulbs in different sizes, voltages and colours. Alternate lighting solutions: [pic] [pic] Eveready digiLED lanterns- with its digiled technology, unlike a kerosene lamp or candle, the Eveready lantern gives bright, continuous and unflickering light from long lasting LEDs. All this at the same running cost per hour, as that of a kerosene lamp or candle. It illuminates a wide area and is ideal for activities like studying, cooking and other in-house work†¦ making it a true light for our home! Types of digiLED Lanterns: [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] Packet tea: India wakes up with tea every morning. It is the drink that enlivens, energises and rejuvenates the mind and the body. It is the drink that binds people across cultures. This is why Eveready has lined up a wide range of tea blends to match the needs of a diverse tea-drinking nation and the different â€Å"tea cultures† that are an integral part of the country’s socio-cultural fabric. Eveready today has offerings- Eveready tez, Eveready premium gold, Eveready jaago and eveready classic. Brands which satisfy the diverse moods of the tea drinkers. FLASHLIGHTS: [pic] Eveready has been the pioneer in the field of portable lighting for many a decades. Eveready with a huge variety of products is the largest manufacturer and marketer of torches in south Asia. Well known for its quality, range, colour options and value for money models. Eveready caters to all the lighting needs of both- the urban and rural consumers. DigiLED Torches: Eveready recently introduced a whole new category of torches with digiLED technology. These torches use highly power efficient LEDs in place of the incandescent bulbs. The long life LEDs, the superior quality lens & the Eveready expertise put together give the consumers an excellent torch with a focused bright white beam of light. pic] [pic] The torches are available in a Variety of shapes & sizes, with a splash of bright vibrant colours. Mainly for its quality of power efficiency, as batteries lasts longer, these torches have become an instant hit with the value conscious consumers across India. UltraLED torches: [pic] Torches with powerful beams which reach amazing distances, stronger light with enhanc ed efficiency, coupled with superior advantages of the original digiLED torches. The range offers the user wide choice in shapes, sizes & new metallic colours. Brass torches: [pic] True to its name, the Jeevan Sathi brass torchlight has been a trustworthy, constant companion for the discerning Indians through generations. It is reliable, durable and repairable, making it a must-have evening companion especially in the villages. It is one of the most trusted brands in rural India across all product categories. Aluminium & plastic torches: [pic] Eveready has always gone for innovation to bring out new models which suit the diverse requirements of all its customers. These torches have strong durable bodies, slide switches for easy handling and come in a wide range of models and colours. Rechargeable torches: Eveready also provides rechargeable torches to its customers. These have an in-built battery and a plug, for easy recharge. These torches are true value-for-money and are targeted at the urban and semi-urban households. Models like Commander, HiLite, Mobile, RedFlash, Rangoli & CityLite†¦ are brands in their own capacity†¦ bought by thousands of people every month. CHAPTER 3 RESEARCH METHODOLOGY Methodology is a systematic way of solving a problem; it includes the research methods for solving a problem. Type of research: Descriptive & Empirical Research Data source: Primary and secondary data Data collection method: Interview and survey Data collection tools: Questionnaires and informal interview Sample Universe: Nadia district (Areas- kastodanga, maniktalapada, kalitala, nimtala, Simurali- narapatipada, shantipur, ranaghat, krishnanagar). Sample size: 250 Sample Design: The target population of the study consists of various respondents of various places (mostly done in rural areas and small town targeting low class group people and middle class). This is because to know that if price is the only factor of impact of china made torches. Sample size: After due consultation with the company, also keeping in mind the requirements of the company for the research, the sample size that was found to be appropriate for the study was 250(each place 25-35 respondents). Sampling Technique: Stratified sampling technique – a stratified sample is obtained by independently selecting a separate simple random sample from each population stratum. A population can be divided into different groups based on class, income. The survey was conducted by visiting different places(shops, market, respondent’s home, etc). Statistical tools:Simple percentage analysis and Ranking method is the main statistical tool used for study. 3. 1. SCOPE OF THE STUDY ? The result of this research would help the company to market their products. ? The result will help in improving sales. ? The study will help the company to make aware the consumers about the product. 3. 2. LIMITATIONS OF THE RESEARCH The following limitations can be pointed out from the research that I conducted in relation to the problems that were given to me by Eveready industries India ltd. Sample size was not sufficient to know the absolute figures. †¢ The research got confined to the Nadia district (towns and rural areas). 4. DATA ANALYSIS AND INTERPRETATION The respondents who were covered under this study can be categorized on the basis of certain important criteria like age, annual income (class), tendency towards white LED light and awareness about new Eveready LED torches in the market. Table-4. 1 Annual Income Level: |Annual Income Level |No. Of Respondent |Percentage | |Below 1 Lakh |134 |53. 6 | |1-3 Lakh |105 |42 | |Above 3 Lakh |11 |4. 4 | |Total |250 |100 | | | | | | | | | | | | |Eveready LED |31 |12. % | |Eveready incandescent modified |3 |1. 2% | |China made Torch |211 |84. 4% | |Others |5 |2% | [pic] Interpretation: Among the 250 respondents i. e. he consumers, it can be seen that the consumers of china made torches are the highest i. e. 84. 4%. Eveready LED torches have 12. 4% consumers. 1. 2% of respondents are there who have an attachment with Eveready and thinks there torch is best for them they have modified incandescent Eveready brass torch into white light (because consumers like white led light). 2% of the respondents are the users of other torches. Table: 4. 3 Eveready LED torch users – Distribution according to income: Below 1 Lakh |1-3 lakh |Above 3 lakh | |3 users |17 users |11 users | Interpretation: It can be inferred that among 31 consumers that use Eveready LED torch, there are 3 users fr om the low income group i. e. below 1 lakh. 17 customers are from 1-3 lakh group and 11 users are from above 3 lakh group. Table-4. 4 AWARENESS about Eveready LED Torches: |Awareness |No. Of Respondents |Percentage | |Yes |65 |26% | |No |185 |74% | |Total |250 |100 | [pic] Interpretation: Now coming to the point of awareness among the people about the Eveready’s new product i. . Eveready LED Torches, the response was very disappointing. Among 250 respondents only 65 people i. e. 26% are aware about Eveready LED flashlight. Table-4. 5 Consumers those are aware but do not like to have due to high price (not affordable): Out of 65 people who are aware, the people who would not like to purchase are 40. |1-3 lakhs |Below 5 lakhs | |35 people |5 people | Interpretation: It can be seen that out of 65 people who are aware, 35 people of low class would not like to purchase due to its high price, it is not affordable. CHAPTER 5 RESULTS: The findings that can be drawn from the survey- ? 100% positive answer regarding Eveready torches durability, reliability and longevity shows company’s high image. ? 100% consumers like the white LED light torches. ? It was found that most of the low class people are not able to purchase Eveready LED torches because they cannot afford due to its high price. As Eveready LED torches are new entrants in the market, most of the people are unaware about the Eveready LED torches. IMPACT OF CHINA MADE TORCHES ON EVEREADY LED FLASHLIGHTS: 1. Shifting of incandescent torches market to LED Torches market. ? Eveready incandescent bulb torches were used and appreciated by the consumers before China made rechargeable torches with LEDs instead of incandescent bulb came into the market. After china made torches e ntered the market, people liked the white light of LEDs and the low price. As, no Eveready LED torches were available that time (before 5-6 years), the customers/consumers were forced to purchase china made LED rechargeable torches. So, there was a shift towards LEDs torches (china made torches). 2. Shifting of normal torches i. e. torches without rechargeable factor, to rechargeable torches. ? China made torches came into the market with the facility of recharging the batteries at that time when Eveready have had no rechargeable torches. People /consumers thought it more economical than Eveready normal torches and tend towards it. NOTE: but it is not true, the fact is that the Eveready torches are more economical because the batteries that are used in it as a power source runs for 4 months in a single time). So, demand inclined towards rechargeable torches. 3. It’s been 2 years Eveready has launched LED flashlights/torches with high quality light. But there is a particular segment i. e. low class people have a tendency to buy china made torches due to its low price (although they were using Eveready incandescent torches before ). customer’s perception has changed . . Considering all the facts, the most important part that has been affected (impact of china made torches) is sales. Although Eveready is doing well but the market that has been captured by china made torches (mostly the low class people who purchase china made low price torches), Eveready is missing to target that part. NOTE: As there are many customers/consumers who are using Eveready LED torches (Eveready is meeting its sale targets) this shows that the impact of china made torches that has been on Eveready torches is diminishing. People are shifting from china made torches due to their lack in reliability, longevity, durability and many factors. They lack in adding value to the customers. CHAPTER 6 RECOMENDATIONS: ? Eveready is extensively using its marketing strategies to reach customers; advertisements are being done but while surveying, the segment of customers that are not aware of the product to reach them we have to make them aware through extensive advertising. There are hoardings placed in the market but they are only seen over the distributors or big retailers. There must be more hoardings, bill boards showcasing Eveready led torches. ? Eveready should launch a new led torch with low price particularly focusing the low class (low income group) people. Advertising should be focusing these people. ? Extensive advertising on radio. REFERENCES: ? WEBSITES: www. evereadyindustries. com www. wikipidea. org ? Business Research Methods – Donald R Cooper, Pamela Schindler