Chapter: 8 FINDINGS, CONCLUSION & RECOMMENDATION

Transcription

1 Chapter: 8 FINDINGS, CONCLUSION & RECOMMENDATION 8.1 Introduction to Chapter The study on Marketing Strategies of Electronics Industry with Special Reference to Electronics Corporation of India Limited shows various issues of marketing in the light of this government organization. This chapter discusses about the results of the entire study which is gathered from third, fourth, fifth, sixth and seventh chapter. The conclusion section of this chapter describes the result of marketing strategies of ECIL, pricing strategies of ECIL, promotional strategies of ECIL, place and after sales service of the organization. These results are presented such a way that it must establish the objectives of the study. The next section provides recommendations of the study and the last section summarizes the chapter giving the aspects of future study of this topic. 8.2 Findings The objectives of this research intend to justify through its secondary and primary research. Justifications of the objectives are given below. Objective 2: To critically analyse the marketing strategies currently adopted by the ECIL. 199

2 8.2.1 Result of Marketing Strategy The third chapter entails about marketing strategies of the product. In this chapter the concept of marketing mix is approached through 4Ps and 7Ps. The four elements of 4P s are Product, Price, Promotion and Place. Marketing mix is considered as a strategic tool of marketing which illustrates about product strategy, pricing strategy, promotional strategy and place strategy. Product strategy is focused to various aspects starting from service contract to image and product of the company. Price is the value of the product which is considered an important element of the product. Place or distribution strategy is concerned to products accessibility to customers in terms of demand of the product and time. Promotional strategy includes the activities like public relations, advertising, personal selling. In the next section, the relation of marketing mix and design has been defined. Additionally, the challenges faced by the marketers have been discussed also. The marketing strategies in the electronics industry have also shown, citing the example of GE, Wipro, HP. ECIL s marketing strategy has been projected through graphs and it is retrieved through data analysis procedures. Primary and secondary data have been used in this study. Data analysis discusses the issues which are based on quantitative method and these issues are business objectives, geographical market, product s biggest selling point, clear image branding, reflection of image branding, shift of marketing strategy, positioning strategy for the product, product selling strategy, size of geographic domain, price comparison to competitors, listing of stock market, execution of 200

3 tender process. It is found from the result that most of the respondents has chosen market share as their business objectives. ECIL s 84% geographical market is scattered to all over India. Unique feature (66%) is considered ECIL s biggest selling point. According to the 60% of the respondents, the organization has a clear image branding and 52% of the respondents say, image branding has reflection to present scenario. It is seen that 76% of the respondents that there is a significant shift in the marketing strategy in recent period. 85% of the respondents say that they do not have positioning strategy. The question of procedure for selling products, 66% of the respondents have answered that ECIL sells products directly to its institutional customers. It is found that the large size of geographic domain is scattered throughout India and 24% of the domain is scattered in Northern India, 23% is in Western India, 27%is in Eastern India and Southern India has 26% of the domain. On the other hand, prices of ECIL products are 87% more comparing to competitors. The company has no listing in stock market. 94% of the respondents say ECIL s tender process is executed through e-tender. The qualitative data answer open ended question which was conducted through interview method. 85% of the respondents say that for its innovativeness the organization has Unique Selling Proposition. The second open-ended question provides opinion about the size of the company s marketing budget which is nearly Rs. 30 crores and it is told by 90% of the respondents. The third question is about marketing per revenue which is answered by 88% of the respondents and it says that 201

4 marketing cost per revenue consists of salaries, perks, advertisements, promotion materials, seminars, exhibitions. Additionally, the result of development cost per revenue is found that 87% of the respondents say the development cost per revenue is nearly 25 crore of rupees. So this data is structured as below. Unique Selling Proposition 85% Development Cost per revenue 87% Result of Qualitative Data Marketing Budget 90% Marketing Cost per Revenue 88% Figure 8.1: Result of Qualitative Data Result of Pricing Strategy ECIL s pricing strategy is concerned with pricing framework, adoption of penetration policy, skimming pricing policy, competitor s price. Quantitative data of pricing strategy answers the questions like type of pricing strategy, relevance of stable pricing framework, adoption of business penetration pricing policy, 202

5 skimming pricing policy, selling to competitive price, standardization or adaptation of the prices. 83% of the respondents says ECIL follows monopoly pricing strategy, 82% of the respondents are agreed to set a stable pricing framework for prospective customers. The result also shows that 63% of the respondents are agreed to adopt business penetration pricing policy and 71% of the respondents are agreed to skimming pricing policy which is detrimental to the growth and development of ECIL. 63% of the respondents say that ECIL s pricing policy is focused to competitive pricing. It also includes that 63% of the respondents have answered that the company has standardization or adaptation to competitors pricing. The result of pricing strategy is structured below: Monopoly Pricing Strategy 83% Skimming Pricing Policy 71% Stable Pricing Framework 82% Adoption of Penetration Pricing Policy 63% Result of Quantitative Data Competitive Pricing 63% Standardization or Adaptation to Competitive Pricing 63% Figure 8.2: Result of Quantitative Data 203

6 Qualitative data answers the questions like company s devising pricing strategy, market penetration policy, factors in pricing decisions. Market penetration policy is implied in various sectors of ECIL. 90% of the respondents are agreed in the perspective of devising pricing strategy. The responsible factors in pricing decisions are competitors pricing, availability of substitute products and government regulations. 80% of the respondents say competitors pricing are responsible for pricing decisions, 60% of the respondents provide their opinions to access the substitute products and 100% respondents say government regulations are responsible for it Result of Promotional Strategy Promotional strategy is focused on type of promotional strategy, factors to impact the promotional strategies in Antenna Products and SATCOM division (AP&SD), factors to impact the promotional strategies in Telecommunication Division (TCD), factors to impact the promotional strategies in Control and Automation Division (CAD). 41% of the respondents opt for public relations promotional strategy. The impact of the promotional strategies in Antenna Products and SATCOM division (AP&SD) is that 40% of the respondents go for government regulations and 42% of the respondents choose the same factor, government regulation for Control and Automation division (CAD). For TCD division respondents choose the factor, experience of the organization, 38%. These results are presented below. 204

7 Public Relations Promotional Strategy 41% Impact of AP&SD Division- Govt. Regulations 40% Impact of CAD Division- Govt. Regulations 42% Impact of TCD Division- Experience of Org. 38% Figure 8.3: Quantitative Result of Promotional Strategy Qualitative data of this study answers the questions of who are the competitors, market shares of the competitors, seminars conducted at ECIL, the company s institutional marketing. These are considered as dimensions of ECIL s promotional strategy. 205

8 8.2.4 Result of Place Strategy In Place Strategy, three issues have been described and they are How do you sell your product? ; How large is your geographic domain? and Where do end users buy/look for your product?. The first issue, How do you sell your product? answers that through institutional sales, products are sold and various types of tenders are approached like online tenders, limited tenders, global tenders and nomination tenders. The geographic domain is scattered in national and international level and ECIL s distribution channels are at New Delhi, Chennai, Bangalore, Mumbai and Kolkata. The third issue discusses about end users search for product at website, catalogues, seminars, exhibitions. Responses of data analysis have been gathered through interview questions and close-ended questions. Responses of qualitative data answers questions like What are the positioning strategies of the organization? ; Please explain about your clients reachability of tender access in terms of region, northern, southern, eastern or western ; What are the different distribution strategies? ; What are the main factors which are responsible when deciding distribution strategies? ; What are the modifications which are currently needed in distribution strategy?. The first question of positioning strategy is dependent on three factors like product characteristics, application and product class. It is found from the respondents opinion that the success of positioning strategy depends on product characteristics which is 60%; application which is 70% and product class which is 75%. The second question, 206

9 clients reachability is found in northern, eastern, southern and western which is 100%. Thirdly, distribution strategy is dependent on three approaches; intensive, selective and exclusive. Intensive strategy has 60% representation, selective strategy has 65% representation and exclusive strategy has 80% strategy. The fourth question of Factors of Distribution is emphasized on four factors like Product Considerations, Market Considerations, Warehousing and Middlemen. Product Considerations have 80% representation, Market Considerations have 70% representation, Warehousing has 75% representation and Middlemen have 5% representation. The last issue of modification is focused to successful distribution in international market, expansion in international market, positive impact of moon mission. The quantitative of Place strategy discusses about existence of positioning strategy at Antenna Products and Satcom Division (AP&SD), Telecommunication Division (TCD) and Control and Automation Division (CAD); major customers; standardization of distribution strategy. According to the respondents opinion, 78% of the employees say that positioning strategy exists at ECIL. 51% of the respondents say ECIL s major customers are from defence. It is found from the responses of third question that 83% of the respondents say about the presence of ECIL s standardized distribution strategy. The structure of quantitative data analysis is presented below. 207

10 Positioning Strategy 78% Major Customer-Defence 51% Standardized Distribution Startegy 83% Figure 8.4: Quantitative Result of Place Strategy Result of After Sales Service Strategy ECIL s After Sales Service Strategy is focused on two types of analysis; qualitative analysis and quantitative analysis. Qualitative analysis follows interview method and this analysis answers the questions like Please explain the process of customer satisfaction survey ; please explain the process of complaint handling processes and Please explain about your Grievance Redress Mechanism. Within the grievance redress mechanism, few factors are included like IFC (Information and Facilitation Center), Internal Communication, and Information on the Internet. According to the respondents, Customer satisfaction survey has 70% representation, Complaint Handling System has 75% representation and Grievance Redress Mechanism has 85% representation. So it is represented below. 208

11 Customer Satisfaction Survey 70% Complaint Handling process 75% Grievance Redress Mechanism 85% Figure 8.5: Qualitative Analysis of After Sales Service Strategy Quantitative analysis of After Sales Service Strategy includes various factors like existence of grievance handling cell, practices of customer satisfaction survey, processing of customers complaints, handling of customers complaints, competitiveness to the development of customer service, handling of customers complaints through IFCs, identification of customers needs during improved after sales service, satisfaction and loyalty regarding After Sales Service, impact of service quality on customer satisfaction and customer retention. According to the respondents, 64% say about the existence of grievance handling cell and 68% say 209

12 about practices of customer satisfaction survey. On the other hand, it is also found that 75% of the respondents are agreed about the systematic execution of customers complaints, 76% of the respondents are agreed about handling customers complaints, ECIL s present increased competition are dependent on 59% of the respondents which enable to improve customer service. 73% of the respondents are agreed upon customers complaint handling process through IFC, 68% of the respondents are agreed upon the customers identification during improved after sales service, 70% of the respondents are agreed to obtain satisfaction and loyalty and 72% of the respondents are agreed upon customer satisfaction and customer retention. These results are structured below. Existence of Grievance Handling Cell-64% Handling of Customers Complaints through IFCs - 73% Practices of Customer Satisfaction Survey- 68% Execution of Customers Complaints-75% Competitiveness to improve customer service- 59% Identification of Customers needs during Improved after Satisfaction and loyalty regarding After Sales Service- 70% Handling of Customers Complaints-76% Impact of Service Quality on customer satisfaction and customer retention- Figure 8.6: Quantitative Analysis of After Sales Service 210

13 8.3 Conclusions The primary objective of this study was to examine the theoretical concepts of marketing and how they can be applied to ECIL with respect to Product, Price, Promotion and channel management. The research study at hand researched and developed thetheoretical marketing concept which is imbibed to each chapter starting from Marketing Strategies to the Product, Pricing Strategy to After Sales Service Strategy chapter. In the third chapter, MARKETING STRATEGIES ON PRODUCT, marketing mix tools have been discussed which is considered a blend of product, place, promotion and pricing mix and it enables to satisfy mutual exchanges with a target market. Product is considered as main element of the marketing mix, Price is understood through the value of the product which is paid by the buyer to purchase the product. Place or distribution strategy of marketing mix is concerned to make products accessible to customers at favorable time and place. The last element of marketing mix, promotion strategy is focused to various activities like publicity, public relations, sales promotion. After from 4Ps, the approach of Product Life Cycle (PLC) and Ansoff Matrix has been discussed. In PLC, four stages of products have been described like Introduction stage, Growth stage, Maturity stage and Decline stage. Ansoff matrix discusses four marketing strategies; product development, market development, market penetration and diversification. 211

14 The fourth chapter of pricing strategy has provided approaches of pricing strategies like high and low price strategy, adjustable strategy. Adjustable strategy is comprised with price discrimination strategy, price skimming strategy, discount strategy, penetration pricing strategy. Price discrimination strategy is focused on customers different levels of needs and purchasing ability. Discount strategy throws light on discount sale which is meant through a set of items for a limited period. Price skimming strategy is understood through a high price initially but price lowers down with the time. Penetration pricing strategy is referred as the initial price is lower and as the time goes on, cost reduction and discouragement of competitors entry have also initiated. Promotional mix strategy is described at fifth chapter. Promotional strategy includes push and pulls strategy. Push strategy is used when the product is pushed through distribution channels to end user whereas pull strategy uses various promotional activities like advertising, sales promotion, personal selling. Sales promotion is described as coupons, premiums, samples and other promotional tools. Personal selling is understood as it restricts the activity of advertising which enables to lower down the cost. Another promotional tool, trade fair is utilized to improve market share which estimates distribution and market research approaches. Direct marketing tool is applied to receive the information from customers in terms of existing products. 212

15 The sixth chapter elaborates about place or distribution strategy. Place is categorized as open market, institutional houses, merchant houses and direct delivery. The focus areas of place strategy are distribution, transportation and storage. The responsibility of distribution channels are identified as market information, promotion, advertising. The seventh chapter is about the post purchase of the product which is directed towards prospective customers. After Sales Service Strategy discusses various marketing theories like Service Loyalty, Service Quality, Customer Satisfaction and Customer Relationship Management. Service Loyalty is understood consumers repurchasing of the product. Service Quality is referred as end result of customer satisfaction. In this theory, SERVQUAL model is adopted to estimate service delivery. The third concept, customer satisfaction is understood through the approaches of delivery or warranty and operating time in the perspective of After Sales Service Strategy. Lastly, Customer Relationship management (CRM) describes business processes which enable to capture, retain and provide services. CRM is implied through phases like attraction, promotion and maintenance. The first phase is for promotion and services of goods, promotion phase intends to develop the existing customers and maintenance phase is focused on customer retention. 213

16 8.3 Recommendations The fourth objective of this study entails to set a recommend a policy framework for the management of marketing function for ECIL. This section discusses about the recommendation of the aspects of pricing strategy, promotion strategy, place strategy and after sales service strategy. Recommending promotional strategy, ECIL must be aware about brand awareness, consumer base and market share. ECIL should also consider factors like costeffectiveness, organizational goals and marketing plans. The advertising strategy must be set such a way that not only its institutional customers, but the end users of ECIL s products are knowledgeable enough to have a brand consciousness about the products as well the organization. According to ECIL s promotional strategy findings, it is seen that most of the emphasis is on public relation, not sales promotion and tender advertising. So the organization needs to be work on these other two promotional tools. In the place strategy s research findings, 51% representation is found in Defence as major customers. Other customers like railways, airports, ISRO must be taken care of. The main elements of recommendation have been formulated below. 214

17 promotional Strategy: Advertising- Brand Conciousness for end users Promotional Tools- Sales promotion, Tender Advertising Place strategy: Railways, Airports, ISRO as major customers Figure 8.7 Areas of Recommendation for this study 8.4 Summary and Future Scope This chapter provides overview of the entire study in the introductory section which tells about qualitative and quantitative result of each chapter. In the Conclusions section, the research objectives are justified in the light of research findings. The qualitative result of marketing strategy highlights factors like Unique Selling proposition of 85%, marketing budget of 90%, marketing cost per revenue of 88% and development of cost per revenue of 87%. Result of Quantitative data analysis in pricing strategy is focused on variables like monopoly pricing, stable pricing framework, adoption of penetration pricing, skimming pricing policy, competitive pricing, standardization or adaptation to competitive pricing. Quantitative result of promotional strategy yields various factors and they are respectively, public relation, impact of AP&SD division, impact of CAD division and impact of TCD division. Quantitative result of place or distribution strategy focuses on positioning strategy, major customer, and standardized distribution strategy. On the other hand, 215

18 after sales service strategy has two types of results; qualitative result and quantitative result. Qualitative result is emphasized on three issues like customer satisfaction survey of 70%, complaint handling process of 75% and grievance redress mechanism of 85%. Quantitative result of after sales service provides nine types of results like existence of grievance handling, practices of customer satisfaction survey, execution of customers complaints, handling of customers complaints through IFCs, identification of customers needs during improved after sales service, satisfaction and loyalty regarding after sales service, impact of service quality on customer satisfaction and customer retention, competitiveness to improve customer service. The future study of this entire research is focused on consumer-brand oriented relationship across diverse set of products. Secondly, this present study can be highlighted for further research in institutional marketing who are dealing with PSUs. Additionally, the research can be developed in B2B oriented business network. Another dimension can be added for future research and the scope of e- advertising and e-tender of ECIL can be studied and a comparative analysis can be done with competing organization and other PSUs. 216