Impact of China Made Rechargeable Torches
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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.
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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
electric device designed by Misell was powered by 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.
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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, 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.
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COMPANY
PROFILE
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2.1 COMPANY PROFILE:
Ask any Indian consumer to name a battery and the first brand that comes to mind isEveready. 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.
Evereadys strength is the result of a continuous and well-orchestrated brand development
strategy that maximizes the value from each consumer touch-point.
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.
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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 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 worlds third largest producer of carbon zinc batteries,
selling more than a billion units a year. EIIL is Indias 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.
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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 andplastic 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.
1951: 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.
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Eveready is Indias largest marketer of dry cell batteries selling about 1.2 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.
Companys 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
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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 Companys 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
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photo studios and printing centres. So much so, that many of our products are even available
at thepaan 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
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Workforce:
As on 31.12.08 (including Powercell) 2627
R&D facility
Kolkata, West BengalAnnual Sales: 92,530.74 (Rs Lakhs)
Manufacturing Locations and Sales offices:
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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:
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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 everyones 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 worlds 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:
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.
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Rechargeable Batteries:
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 todays 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:
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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:
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:
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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 tea cultures that are an integral part of the countrys
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:
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
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Torches with powerful beams which reach amazing distances, stronger light with enhanced
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:
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.
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Aluminium & plastic torches:
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.
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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:
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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, respondents 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).
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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
1-3 Lakh
Above 3 Lakh
134
105
11
53.6
42
4.4
Total 250 100
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Interpretations:
From the above table we can see that 53.6 % of the respondents belonged to a group which
has an annual income of below 1 lakh, 42% of them are from 1-3 lakh group and 4.4% from
above 3 lakh group.
Below 1 lakh shows low class.
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Table-4.2
Torch users Distribution:
Users Distribution No. Of Respondents Percentage
Eveready LED
Eveready incandescent modified
China made Torch
Others
31
3
211
5
12.4%
1.2%
84.4%
2%
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Interpretation:
Among the 250 respondents i.e. the 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
from 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%
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No 185 74%
Total 250 100
Interpretation:
Now coming to the point of awareness among the people about the Evereadys new product
i.e. 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
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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 companys 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 entered themarket, 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).
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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. Its 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 ).customers perception has changed .
4. 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:
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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 lackin 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 arenot 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.
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REFERENCES:
WEBSITES: www.evereadyindustries.com
www.wikipidea.org
Business Research Methods Donald R Cooper, Pamela Schindler
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