CHAPTER – 1

INTRODUCTION
 1.1 BACKGROUND

The topic of consumer behaviour is one of the massively studied topics by the
researchers and marketers in the past and still being studied. Researchers show
different reasons as to why consumer behavior has been the topic of many academics
and researchers. One of the common views is that understanding consumer
behaviour has become a factor that has a direct impact on the overall performance of
the businesses (Kotler and Keller, 2012).
It is worth noting that consumer buying behaviour is studied as a part of the
marketing and its main objective it to learn the way how the individuals, groups or
organizations choose, buy use and dispose the goods and the factors such as their
previous experience, taste, price and branding on which the consumers base their
purchasing decisions (Kotler and Keller, 2012). This study will introduce some other
areas of research background of consumer behaviour addressing the works of
researchers and marketers.
Many researchers have conducted studies and identified the relationship between
the habits and previous experience on the consumer buying decision. Their findings
show that personal habits and previous experience on of the consumers have a direct
impact on the consumers‟ purchase decision. They also found that the image of the
product has a crucial impact on the purchasing decision of the consumer and further
recommended that the product image should continuously be improved in order to
encourage the consumers towards purchasing.

1.2 SCOPE AND SIGNIFICANCE OF THE STUDY

The study was conducted at Havells India Pvt. Ltd., Bhubaneswar; in order to
determine the purchase decision of buyers, mainly: builders and traders/ dealers. If
we understand what makes the end customers ie; builders and traders rely and
continue the usage of Havells products(wire), then we know which areas to focus on
and improve. Many believe that discounts and benefits have a significant impact on
their turnover rate. However, the company could provide these at an acceptable level
only, but increasing them will not have the desired effect of raising the sales. There is
not much of a price variation and attribute level between the rival brands of wire. Yet
it is important to note that the price levels of wire are determined by the copper
prices.
It is at this event that the organisation should convince its customers as well as the
end users to stick on to the brand. The study thus aims to provide an insight to the
current trends and market requirements from two different viewpoints of customers,
which would help the organisation to plan and implement policies and strategies to
improve consistently.

1.3 STATEMENT OF THE PROBLEM

The study is designed to conduct a satisfaction survey among the end customers
ie,traders/ dealers and builders at Havells India Pvt Ltd, Bhubaneswar. The
organization wants to analyze the trends in the market and needs to get suggestions
for retaining their customers. The company wants to see whether the customers are
satisfied with the current offering of the products and to find out the areas which
need improvement. Hence problem of the study can be stated as “what are the
reasons for purchase decision of customers towards Havells wires.”

1.4 OBJECTIVES OF THE STUDY

Primary Objective:-

 A relative study of the purchase decision of customers towards Havells wires.

Secondary Objective:-

 To find out the Havells brand image in comparison to rival firms.

 To find out Havells‟s growth and standing in the minds of the customers and
dealers.

1.5 RESEARCH METHODOLOGY

1.5.1 TYPE OF STUDY
This is a descriptive Study.
1.5.2 TYPE OF DATA USED
Primary and Secondary data were used for this study.
1.5.3 SOURCES OF DATA
Primary data were collected from 2 series of customers (builders and dealers)
of Havells India Pvt Ltd, Bhubaneswar and Secondary data were collected from
company records and websites.
1.5.4 POPULATION
The population under this study includes the customers of Havells India Pvt Ltd,
Bhubaneswar (Builders and traders).
1.5.5 SAMPLING METHOD
The method of sampling was Convenient sampling.
1.5.6 SAMPLE SIZE
40 end-customers (including builders and traders) were contacted for the
study.
1.6.7 METHOD OF DATA COLLECTION
The method used for data collection was survey and questionnaire method.
1.5.8 TOOLS USED FOR DATA COLLECTION
 Questionnaire was administered among respondents to collect primary data.
 Secondary data were collected through Desk Research.
1.5.9 TOOLS USED FOR PRESENTATION OF DATA
The analyzed results are represented by formulating tables and charts based on
the information gathered.

1.6 LIMITATIONS OF THE STUDY

 The findings of the study are confined only to Havells India Pvt Ltd,
Bhubaneswar and hence the results cannot be generalized to any other
Organization.
 Time and resource constraint.
  The respondents in many cases were unwilling to provide all the information
due to some personal problem and their busy schedule.
 The same information cannot be accessed due to its confidential nature.

1.7 CHAPTERISATION

Chapter 1 gives an introduction about the topic, its objectives, scope and significance,
limitations etc.

 Chapter 2 briefly describes the Industry as well as company profile.

 Chapter 3 summarizes the earlier studies and theories related to the topic.
 Chapter 4 describe data collected on the topic is analyzed and Interpreted
 Findings based on the study conducted are presented in Chapter 5.
 Chapter 6 deals with Conclusion and suggestions are presented in the final
chapter.
 CHAPTER – 2

INDUSTRY & COMPANY

PROFILE
2.1 INDUSTRY PROFILE
Prospects of Indian Electric Industry:
Like every other industrial sector in India, the Indian Electrical Industry too is
slowly emerging from out of its "protective cover". For far too long has Indian
Industry remained shackled and consequently inward looking. Over the past fifty
years there was no exposure to global players and competition, with the result that
the industry grew up in a sheltered environment, dependent on the Government for
everything, from licenses to protection to tariffs. Each one of these interventions was
aimed at securing protection for oneself and ensuring growth of one's own
organization at the cost of industry and the nation at large. Lack of global
competition encouraged a "cost plus" approach where every conceivable cost
increase was passed on to the customer. There was thus no motivation to reduce
costs.
At the outset, it must be stated that the reduced domestic demand is at best a
temporary phenomenon. The power sector in India is bound to grow and this will
undoubtedly boost demand from the Utilities, quite apart from the industrial demand
which will continue to grow with increased industrial output. The main customers for
the wire and cable industry are the automotive, telecommunication and construction
industries. In the past few years, these three have witnessed a rapid expansion and
have led to an annual growth growth of about. 25% in India
The wire and cable industry has moved from being a small industry 20 years
back to a very large industry over the last decade. Although it is a volume-driven
product, it has a lot of quality and technical particulars. Over a period of time, the
industry has moved from the unorganized to the organized sector. However, about
35% of this industry is still in the unorganized sector. Requirements like brand and
quality perception are the keys in this Rs15,000 crore industry.
The wire and cable industry comprises 40% of the entire electrical industry,
which is expected to double in size over the next five years. The industry is growing at
a CAGR of 15% as a result of growth in the power and infrastructure segments. It is
expected to grow at similar rate for the next five years. The government's emphasis
on the power sector reforms and in frastructure will further drive growth. The wire
and cable industry will eventually focus on supplying cables for specific applications
pertaining to the industry needs. India has a lot of potential in the mining, power, oil
and gas, metro railways, cement industry, steel industry and other sectors. Different
kinds of cables like extra high voltage cables, elastomer cables, etc., are now being
used for special applications such as mining/oil sector, shipbuilding /crane
cables/elevator cables, cables for solar power plants, to harness power for new
generation motor vehicles, windmill solutions, security systems and other types of
data cables.
2.2 COMPANY PROFILE:
Havells India Ltd is a billion-dollar-plus organization, and is one of the largest &
India's fastest growing electrical and power distribution equipment manufacturers
with products ranging from Industrial & Domestic Circuit Protection Switchgear,
Cables & Wires, Motors, Fans, Power Capacitors, Luminaries for Domestic,
Commercial & Industrial applications, Modular Switches & Bath fittings covering the
entire gamut of household, commercial and industrial electrical needs. Havells owns
some of the prestigious global brands like Crabtree, Loyid. With 91 branches /
representative offices and over 8000 professionals in over 50 countries across the
globe, the group has achieved rapid success in the past few years. Its 7 state-of-the-
art manufacturing plants in India located at Haridwar, Baddi, Noida, Faridabad,
Bhiwadi, Alwar, Neemrana, and 9 state-of-the-art manufacturing plants locatedacross
Europe, Latin America & Africa churn out globally acclaimed products.Havells is a
name synonymous with excellence and expertise in the electrical industry. Its20000
strong global distribution network is prompt to service customers. The company
hasacquired a number of International certifications, like BASEC, CSA,KEMA, CB, CE,
ASTA,CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore), TSE(Turkey), SNI
(Indonesia) andEDD (Bahrain) for various products.