Description
The project was an attept to know the reasons for low sale of alkaline and rechargeable batteries, to understand the market and to know placement and market size of those particular batteries.
Summer Internship Project |PGDM 12-14 1
Executive Summary
This is the internship report based on the two month long internship program that I had successfully
completed in Eveready Industries India Limited under Marketing Division from 06.05.13 to11.07.13 as a
requirement of my Post Graduation Diploma in Management in Regional College of Management. As
being completely new to practical, corporate world setting, every hour spent in the industry gave me some
amount of experience all the time all of which cannot be explained in words. But nevertheless, they were
all useful for my career.
This project was started after knowing all relevant information about the rechargeable and Alkaline
batteries, under the guidance of Mr. Samir Rahatogi and Qaiser Warsi, the project involves the study of
market of alkaline and rechargeable batteries by surveying the market for identification of their problem
areas and helping them in order to increase sale by understanding market size and placement by analyzing
those collected data. For this I used the method of market survey, personal interviews and questionnaires.
At the same time, they were being made aware of the incremental scheme of Eveready for the retailers.
Along with the distributors a study of retailers was conducted to better understand the grievances and
identify the gaps. For this I visited around 250 outlets in Kolkata and spoke to them. I was also supposed
to find out new retail outlets and convince them to sell Eveready Alkaline and Rechargeable batteries by
showing them the opportunity of getting attached with a big FMCG brand like Eveready and increase the
customer base. I was also informing them about the alkaline batteries and was trying to grow some
interest among them by awareing the advantages of alkaline and rechargeable batteries of Eveready.
Despite of summer and low demand I was successful in persuading people and a number of new retail
sale points were developed and the sale was increased.
Summer Internship Project |PGDM 12-14 2
Chapter-1
Introduction
Summer Internship Project |PGDM 12-14 3
Introduction
Need of the Study
The project was an attept to know the reasons for low sale of alkaline and rechargeable
batteries, to understand the market and to know placement and market size of those particular
batteries. Despite of having a good brand image and strong distribution channel the sale of
alkaline and rechargeable has fallen down incredibly for competitors like Duracell, Envie, Godrej
GP, Sony and others. And the other causes are - those products are not properly introduced to
the target customers and those particular products are available from other brands in lower
price with added service like warranty.
There is a need to revamp the company and position it all over again in the mind of the
consumers. In doing so firstly the grievances of the distributors and the retailers were required
to be solved in order to encourage them for push sales. Secondly a study of consumers’
decision making factors is required in order to understand their priorities which can be worked
upon. For this purpose a research is to undertaken to find out the market scenario.
With the help of the responses given by the consumers and data analysis, the company will be
able to understand its strengths, weakness , opportunities and threats. The survey report
submitted by me will assist the company to take right decisions to increase the turnover and
market share.
Objective of the study:
The objectives of the study are the following:-
? The main objective of the study is to understand the market size and placement of alkaline
and rechargeable batteries
? To find out the problems regarding the sale and find out reasons for falling down the market
? To get retailers’ feedback from specific regions
? To add up new retailers in the area
? To find out short term problems in every sub-region that can be sorted out
? Suggesting viable recommendations to be implemented in the area
Summer Internship Project |PGDM 12-14 4
About the Company
Eveready industries India’s ltd (formerly known as union carbide India, limited) is the
flagship company of B.M Khitan group. EIIL started its operation in India in the year
1905. The first dry cell batteries were imported from USA and sold in the major cities of
the country. These batteries were primarily in imported torches.
In 1939, the country setup is first battery plant in Kolkata. This was followed by another
battery manufacturing plant in Chennai in the year 1952.to boost up the market for
batteries, it was logical for the company to setup a torch manufacturing plant. Due to this
torch manufacturing plant was set upped in Lucknow in the year 1958.today,it is one of
the largest torch manufacturing plants in South East Asia. This plant is manufacturing
the full range of brass, aluminum and plastic torches.
MILESTONES:
• 1905: National Carbon starts its Indian operations with the sale of batteries Imported
from USA.
• 1926: Eveready Company India sets up the first carbon factory at canal road, Kolkata.
Summer Internship Project |PGDM 12-14 5
• 1934: Eveready Company incorporated as a private company on 12th November.
• 1939: Camper down works-first modern battery plant established at Cossipore in
Kolkata
• 1941: Union Batteries merges with Eveready Company and the name is changes to
National Carbon Company.
• 1951: Renamed as union carbide India Ltd., a subsidiary of the word wide
multinational, and union carbide corporation.
• 1958: Company set its torch manufacturing plant in Lucknow, one of the largest in
south Asia.
• 1959: Name of the company changed to union carbide India Ltd., plant in Bhopal,
India.
• 1995: Sale of shares of union corporation in union carbide India Ltd., to Mc. Leod
Russell(India)Ltd. Belonging to Williamson major group and new name-Eveready
Industries India ltd.(EIIL)
• 1996: Mc. Leod Russell (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 hundred years old.
VISION
The vision of the industry is justified into two broad categories which are:
1. Companionship:
• Eveready is a high value companion tie consumer of all socio-economic levels, out
trade, supplier and shareholders.
• A brand means added value. It is the only steering mechanism available to build
profitable growth.
Summer Internship Project |PGDM 12-14 6
• Eveready possess concerned about environmental issues.
• Corporate identity of Eveready is highly visible.
• Eveready ensure widest availability.
2. Tangible differentiation:
• In competitive markets, strategic profitable growth can only come from intrinsic
differentiation, which is tangible.
• R&D and marketing team have to innovate constantly to achieve this differentiation to
offer better value.
• Real benefit, even it is small, must be measured, No attribute is small if communication
properly.
Eveready Industries India is endeavoring to become the second largest carbon zinc
battery maker in the world. At present, the company produces 1.2 billion batteries and
the vision was to take it to two billion batteries over the next few years. If the company
manages to achieve a
Production capacity of two billion batteries, then it would pip Energizer and become the
second largest carbon zinc battery maker in the world. The largest carbon zinc battery
maker was Matsushita with 2.8 billion Batteries. Mr. Deepak Khaitan, executive vice
chairman and managing director Eveready Industries India said, the company was
currently the third largest carbon zinc manufacturer with a capacity of 1.2 billion
batteries, which included exports and original equipment manufacturers (OEMs).
As part of its vision, Eveready was adding a new line in Kolkata and a Greenfield facility
in Uttaranchal with a capital expenditure of Rs 40 crore. The project would be financed
through internal accruals. The Uttaranchal facility would start off with production of brass
flashlights and then start producing batteries. Further, the company was also eyeing the
Chinese market and was in discussions with three companies for a Joint venture, where
Eveready would have 25-45 per cent stake. Khaitan said, the decision on the specific
company would be reached by the end of the financial year. Meanwhile, Calcutta High
Court has approved the demerger of bulk tea business of Eveready. Khaitan said.
McLeod Russell will be reborn in the next 4-6 weeks. He added that the demerger would
enhance shareholder value.
Summer Internship Project |PGDM 12-14 7
Literature Review
Industry size and structure
The Indian market for dry cell batteries is now estimated at 2.2 billion pieces by volume
and Rs. 12 billion by value. The battery market has only a few players, out ofwhich EIIL has a
market share of 51 per cent between Eveready and Powercell brands(Source: Company
estimate), and the next player lags by some 20 percentage points.
The battery market saw all the players passing on significant price increases to offset material
cost push in the recent past. Cumulative price increases for the various batterytypes ranged
between 20 per cent and 50 per cent. This met with stiff consumer resistanceand demand
started slowing down. Unfortunately, the price increases had to be persistedwith, due to input
costs continuing to prevail at high levels.
During the year under review, the market reversed its earlier trend of de-growth of thepast 3
years and recorded a modest growth of 4%. Latest trends indicate that the market ispoised to
stabilize with reasonable growth.
The segment pattern within the market underwent change during the recent past asconsumers
shifted from the more expensive 'D' size batteries to 'AA' size. The share ofthe principal battery
categories ended at the year-end as per the table below (Companyestimate).
Battery category
% of market
D 25.0
C 0.5
AA 67.3
AAA 7.2
Total 100.0
The above is quite similar to the pattern seen globally. To that extent it may be saidthat the
recent phenomenon has resulted in the Indian market in aligning itself to theglobal trend as far
as segment share is concerned.
The split of technology within the dry batteries market remained constant with zinccarbon
batteries virtually possessing the entire market with 98 per cent share. Thealkaline batteries
have minimal share of the market at 1 per cent and are present in onlysome premium urban
outlets. Rechargeable batteries, which have the balance 1 per cent ofthe market seems to have
made its mark on a loyal customer base, but remaining stagnant.
Consumption of batteries is driven by growth in the off-take of its applications. Agrowing need
for portable power and the advent of a number of battery-operated gadgetscatalyze
consumption. Since these address everyday use, batteries have enjoyed anon-cyclical demand.
The phenomenon of consumption reducing on account of increases in therecent past is
somewhat unique - perhaps determined by the significant extent involved.However, as latest
trends, including that of the year under review, seem to indicate, thatthe market is back to its
usual growth path.
Summer Internship Project |PGDM 12-14 8
Performance review
Volume in the battery market in India was estimated to have grown by 4 per cent. Salesvolume
of EIIL also increased by a similar margin. As a result, the market share patternremained by and
large consistent with the previous year.
EIIL's product mix is quite similar to that of the market. In the year under review,'D' size had a
share of 27 per cent, and 'AA' at 66 per cent, 'AAA' at 6 per cent and 'C'at 1 per cent.
Marketing and distribution
The Company continued to put emphasis in strengthening its distribution network. Of thetotal
FMCG universe of 7.3 million outlets, penetration of batteries stocking universe wasat 65 per
cent. Eveready batteries were stocked in 66 per cent of such outlets, higherthan any other
battery brand by a wide margin.
Eveready's brand campaign featuring continued to add positive qualities to its brandvalue. EIIL
will persist with these efforts to further strengthen its brand salience.
Summer Internship Project |PGDM 12-14 9
Products offering :
They are offering following products :
? Batteries
? Alkaline(Ultima)
? Rechargeable
? Carbon Zinc
? Dry cell batteries
Summer Internship Project |PGDM 12-14 10
? Flashlights
? digiLED torches & UltraLED torches
? Brass Torches(Jeevan-sathi)
? Rechargeable Torches
Summer Internship Project |PGDM 12-14 11
? Light Bulbs
? CFL(Compact Fluorescent Lamps )
? GLS(General Lighting Service)
? General Tube light
? Halogen lamp
? digiLED Lantern
Summer Internship Project |PGDM 12-14 12
? Packaged tea
Premium Gold
Tez
Jaago
Summer Internship Project |PGDM 12-14 13
? Other appliances
? Ultima Mobile power
? Rechargeable Fan
? Radio
Summer Internship Project |PGDM 12-14 14
About Alkaline and Rechargeable batteries
They can be available in different forms and sizes like AA, AAA, 9V. Rechargeable batteries are
categorized in two variances according their mAh. From 600-1600 are categorized as low
capacity batteries those are specially made for toys and other low energy consuming appliances
and 2100+ are categorized as high capacity batteries those are usually used for camera, CD
players and other high energy consuming appliances.
Major competitor in alkaline segment:
V/S
Duracell is an American brand manufactured by leading FMCG brand Procter & Gamble.
Different types of alkaline batteries in different sizes like AA, AAA, 9V are manufactured
under this brand and this brand also have a strong advertising campaign and good
availability in market. The alkaline batteries are first properly introduced by this brand. And
now It is the market leader in this segment.This battery is giving a strong service and it is
specially known for it’s durability image.
Other Major brands available in the Market :
Summer Internship Project |PGDM 12-14 15
Major Competitor in rechargeable batteries:
V/S
Godrej GPhas been introduced by Godrej, an international range of consumer battery in
partnership with the GP Batteries, largest consumer battery manufacturer. And It has a good
market presence in India.
ENVIE:
Envieis a new entrance in market and capturing huge market share of rechargeable batteries
and doing good performance in Indian market. Major reason for their success is they are giving
warranty to their product and promising a long lasting service in a cheaper price around half of
the price of leading rechargeable batteries.
Other leading brands in Rechargeable battery segment:
Summer Internship Project |PGDM 12-14 16
Chapter – 2
Research
Methodology
Summer Internship Project |PGDM 12-14 17
Research Methodology
Purpose
The basic purpose of this research is to find out placement and market size of Alkaline and
Rechargeable batteries and to generate interest among retailers about the product by informing
and properly introducing the product and to convince new retailers to sell the products.
Problem
To find out problem is the first stage of the research process. It represents translating the
management problem into research problem. It is rightly said, “A problem well defined is half –
solved.”
Consumers have faith in the brand image of Eveready, still its losing share to Duracell, Godrej
GP. In other parts they have a good market presence in normal zinc battery, flashlights, led
lamps but in alkaline sector they are beaten by its competitor, Duracell.
Though in other sectors this brand is doing good but in alkaline sector lack of awareness people
are not getting its use properly and Indian customers are price-sensitive customers so in that
case they are unwilling to buy the product and in case of rechargeable battery price is
unaffordable to general Indian customers.
Objective
? To know the market of Alkaline and Rechargeable batteries
? To analyze placement and market size of Alkaline and Rechargeable by market
surveying in some part of Kolkata
? To inform retailers about the product and encourage them to sell the product
? To identify problems regarding sales
? To offer informations and suggestions to the company for the improvement of the
product
? To identify market strategy of key players and Eveready’s potetiality in market in
particular segment
SAMPLE
Sampling Frame:
A Sampling frame consists of a list of item from which the sample is to be drawn.
The sample frame for this research consists of placement and market size of Alkaline
and Rechargeable batteries along with total sale per month and comparison of sales of
Eveready to other brands in Some part of Kolkata: Barrakpore & Palta, Dumdum,
Cossipur, Nagerbazaar, Sova Bazaar, Ultadanga, Vivekananda Rd(Kalakar St.), Jaan
Bazaar MKT, AnandaPalik MKT, Taltala MKT, Entally MKT, Theatre Rd. MKT, Mallik
Bazaar.
Summer Internship Project |PGDM 12-14 18
Sample Size
The sample size of data is 243 individuals. I have prepared a questionnaire and visited 243
outlets of rechargeable and alkaline with the distributors and collected data by asking them and
by visiting and observing those stores to fill my queries.
Data Collection
Primary Method:
I have used primary method to collect data from the retailers by direct interaction. Data has
been collected by preparing a questionnaire and asking the respondents to fill up the
questionnaire.
Secondary Data:
I’ve collected information about the company and the products through internet.
Sampling Techniques:
Purposive Sampling or Judgmental Sampling: It is a non-probability sampling This is a
descriptive type of research. So in that case this sampling method involves deliberate or
purposive selection of particular units of the universe for consulting a sample, which represents
the universe and when elements are selected for inclusion the sample based on the ease if
access.
Research Technique:
Quantitative Research :
Quantitative Research is based on the measurement of quantity or amount. It is applicable to
phenomena that can be expressed in term of quantity. Through this project I’ve collected data
regarding the data of how much quantity of Rechargeable or Alkaline battery are sold or place or
captured the market share.
Methodology Used:
The methodology of the research contains mainly two parts. One part relates to the procedures
of data collection, instruments and techniques used in data collection and the second part refers
to analysis of data on the basis of defined objectives, which contains techniques used in data
analysis.
Limitations of the study:
? The sample size is very less, hence the respondases of 243 respondents does not imply
for the complete population.
? The data collected may not be representation of the entire population.
? There is a possibility of the respondents being biased they are selling the particular
brand; hence the information collected might not be an accurate one.
? As a market being very huge it was not possible to cover each and every area.
Summer Internship Project |PGDM 12-14 19
Chapter – 3
Data Analysis
And
Interpretation
Summer Internship Project |PGDM 12-14 20
Data Analysis of Alkaline Batteries
From those collected data the following findings are available :
Figure 1:
Availability of Alkaline Batteries in Different Outlet Types:
0
20
40
60
80
100
120
140
Kirana
General
Stores
Studio
Electrics
Electronics
Outlet Type
Outlet Type Total Avg.
Kirana Shops 80 33%
General Stores 124 51%
Studios 14 6%
Electrics 22 9%
Electronics 3 1%
Summer Internship Project |PGDM 12-14 21
Figure 2:
Placement of Alkaline battery and it’s market share :
Total Stores Visited:243
Total Alkaline Sales per month: 2003
Total Market Share:
Brands Total Share Avg.
Eveready 1773 42%
Duracell 2448 58%
Others 48 1%
Market Share and Placement of Alkaline
Batteries
Duracell Share
Eveready share
Others
Summer Internship Project |PGDM 12-14 22
Data Analysis related to rechargeable batteries
Total Stores visited: 243
Total number of rechargeable outlets among them: 30
Total High Capacity battery sales per month: 76
Total low capacity battery sales per month: 72
Total Share of High Capacity rechargeable battery of Eveready: 146
Total Share of High Capacity rechargeable battery of Godrej GP: 36
Total Share of High Capacity rechargeable battery of others: 118
Total High Capacity batteries 300
Total Share of Low Capacity rechargeable battery of Eveready: 104
Total Share of Low Capacity rechargeable battery of Godrej GP: 48
Total Share of Low Capacity rechargeable battery of others: 98
Total low capacity batteries 250
Figure 3 & 4:
49%
12%
39%
Eveready Share in
total High Cap
rechargeable
batteries:
Eveready Godrej GP Others
42%
19%
39%
Eveready Share in
total Low Cap
rechargeable
batteries
Eveready Godrej GP Others
Summer Internship Project |PGDM 12-14 23
Figure 5:
Figure 6:
Types of Outlets Total stores Avg.
General Stores 7 23%
Studio 10 33%
Electrics 11 37%
Electronics 2 7%
243, 89%
30, 11%
Rechargeable battery outlets' share in visited
area
Total no. of stores visited
Rechargeable outlet
Availability of rechargeable batteries in
different types of stores:
General Stores
Studio
Electrics
Electronics
Summer Internship Project |PGDM 12-14 24
SWOT Analysis of rechargeable and alkaline batteries by Eveready
Strengths:
? Availability in Market
? Strong Brand Image
? Systematic and well-maintained distribution channel
? Saturated market by giving services to the customers from long time and by improving
their services by continuous R&D by gaining experience as an old player in market
? Understanding of Indian consumer behavior
SPECIAL FEATURES PRESENT IN EVEREADY:
a) Eveready has a totally computerized battery testing facility - the only battery testing
laboratory accredited by National Accreditation Board for Testing & Calibration Laboratories
(NABL) - where batteries can be tested as per BIS, IEC and JEC standards
b) Eveready’s research team constitutes highly qualified Scientists, Engineers, Chemists and
Technicians dedicated to maintaining technology leadership in Zinc-Carbon batteries,
Flashlights and related components.
c) The Research Centre has Pilot Plant facilities, Analytical testing facilities such as Atomic
Absorption Spectrophotometer (AAS), Polar graph, X- Ray Diffract meter (XRD) and a Chemical
Laboratory. The Eveready Research Centre is capable of providing world-class testing and
research support to meet stringent customer requirements from across the world.
d) Eveready has always pursued and advocated the best prevailing management practices. The
team is alert to changes in the domestic and international markets resulting in higher standards
of excellence. When the TQM wave from Japan hit India in the mid 80’s, the organization
planned the realignment of its management system with focus towards customer satisfaction.
The organization was restructured and a Basic Training Program (BTP) launched for
deployment & implementation of TQM practices
Summer Internship Project |PGDM 12-14 25
Weaknesses
? Lack of consumer awareness and poor promotional activity
? High price comparison to others
? Unaffordable to low-income segments
Opportunities
? Strong Distribution network
? Less competition in market
? Strong Brand-Image
? Increasing usage of batteries in remotes, cameras, gadgets and toys and other
appliances
? Having strong presence in market in other segments
Threats
Batteries do not face any serious threat because they are items of recurring use providing
portable energy at an affordable cost. But they also have to face some minor threads those are:
? Strong competitors: They are offering better services in lower price (Duracell, Envie,
Godrej GP)
? Availability of china products in market in cheaper price
? Entrance of new competitors in this segment
? Low per-capita consumption
? Price-sensitive nature of Indian customers
? New generation battery like lithium-ion battery
? Increasing Price of raw materials
Summer Internship Project |PGDM 12-14 26
Chapter – 4
Recommendations
And
Conclusion
Summer Internship Project |PGDM 12-14 27
Recommendations
Though Eveready is a huge brand in battery sector but in Alkaline there are tough competitors in
market so they have to play a strong strategy to compete with them
? They should use their brand image in Alkaline battery sector and most of the
people are not aware to this particular product for that they should do some
promotional activity positively.
? They are old player in market in this sector so they understand their customers
very well. So, they should understand that Indian customers are price-sensitive
customers.
? They should concern about their price because their offering price is quite high
as compared to other brands in both alkaline and rechargeable segment.
? There are various Chinese brand they are offering their products in half of the
price of Eveready products with attractive warranty offers.
? By offering quality product in reasonable price they can survive in alkaline and
rechargeable sector.
? They have a good market in other segments so they can use some combo offers
and can give their alkaline products with their other products to properly
introduce the advantages of alkaline batteries to the customers.
Summer Internship Project |PGDM 12-14 28
Conclusion
So, from this previous discussions we can conclude that though in zinc carbon battery and
flash light sector Eveready is doing well but for alkaline they have long way to go. They should
reduce their price offering quality product to catch the market. And they should also properly
aware the customers about the advantages of alkaline battery because customers are not fully
aware of the particular product. So they should do some promotional activity to promote the
product to the customers.
And in case of rechargeable though Eveready is doing well as comparison to others
but the total sale of rechargeable is not so satisfactory. There are so much Chinese players
they are offering their products in half of the price of Eveready products. And in case they are
doing well. So they should not underestimate them and apply some strategy to overcome this
matter. And above all rechargeable battery is in decline stage because new and better
technologies have come into market. So they should also adopt those technologies to survive
in the market.
Summer Internship Project |PGDM 12-14 29
Bibliography
? http://www.evereadyindustries.com/
? http://en.wikipedia.org/wiki/Eveready_Industries_India
? http://www.evereadyindustries.com/about-us/current.asp
? http://www.evereadyindustries.com/business/lighting-solutions.asp
? http://www.evereadyindustries.com/business/batteries.asp
? http://www.evereadyindustries.com/business/flashlights.asp
? ‘Marketing Management’ by Philip kotler
doc_784992363.pdf
The project was an attept to know the reasons for low sale of alkaline and rechargeable batteries, to understand the market and to know placement and market size of those particular batteries.
Summer Internship Project |PGDM 12-14 1
Executive Summary
This is the internship report based on the two month long internship program that I had successfully
completed in Eveready Industries India Limited under Marketing Division from 06.05.13 to11.07.13 as a
requirement of my Post Graduation Diploma in Management in Regional College of Management. As
being completely new to practical, corporate world setting, every hour spent in the industry gave me some
amount of experience all the time all of which cannot be explained in words. But nevertheless, they were
all useful for my career.
This project was started after knowing all relevant information about the rechargeable and Alkaline
batteries, under the guidance of Mr. Samir Rahatogi and Qaiser Warsi, the project involves the study of
market of alkaline and rechargeable batteries by surveying the market for identification of their problem
areas and helping them in order to increase sale by understanding market size and placement by analyzing
those collected data. For this I used the method of market survey, personal interviews and questionnaires.
At the same time, they were being made aware of the incremental scheme of Eveready for the retailers.
Along with the distributors a study of retailers was conducted to better understand the grievances and
identify the gaps. For this I visited around 250 outlets in Kolkata and spoke to them. I was also supposed
to find out new retail outlets and convince them to sell Eveready Alkaline and Rechargeable batteries by
showing them the opportunity of getting attached with a big FMCG brand like Eveready and increase the
customer base. I was also informing them about the alkaline batteries and was trying to grow some
interest among them by awareing the advantages of alkaline and rechargeable batteries of Eveready.
Despite of summer and low demand I was successful in persuading people and a number of new retail
sale points were developed and the sale was increased.
Summer Internship Project |PGDM 12-14 2
Chapter-1
Introduction
Summer Internship Project |PGDM 12-14 3
Introduction
Need of the Study
The project was an attept to know the reasons for low sale of alkaline and rechargeable
batteries, to understand the market and to know placement and market size of those particular
batteries. Despite of having a good brand image and strong distribution channel the sale of
alkaline and rechargeable has fallen down incredibly for competitors like Duracell, Envie, Godrej
GP, Sony and others. And the other causes are - those products are not properly introduced to
the target customers and those particular products are available from other brands in lower
price with added service like warranty.
There is a need to revamp the company and position it all over again in the mind of the
consumers. In doing so firstly the grievances of the distributors and the retailers were required
to be solved in order to encourage them for push sales. Secondly a study of consumers’
decision making factors is required in order to understand their priorities which can be worked
upon. For this purpose a research is to undertaken to find out the market scenario.
With the help of the responses given by the consumers and data analysis, the company will be
able to understand its strengths, weakness , opportunities and threats. The survey report
submitted by me will assist the company to take right decisions to increase the turnover and
market share.
Objective of the study:
The objectives of the study are the following:-
? The main objective of the study is to understand the market size and placement of alkaline
and rechargeable batteries
? To find out the problems regarding the sale and find out reasons for falling down the market
? To get retailers’ feedback from specific regions
? To add up new retailers in the area
? To find out short term problems in every sub-region that can be sorted out
? Suggesting viable recommendations to be implemented in the area
Summer Internship Project |PGDM 12-14 4
About the Company
Eveready industries India’s ltd (formerly known as union carbide India, limited) is the
flagship company of B.M Khitan group. EIIL started its operation in India in the year
1905. The first dry cell batteries were imported from USA and sold in the major cities of
the country. These batteries were primarily in imported torches.
In 1939, the country setup is first battery plant in Kolkata. This was followed by another
battery manufacturing plant in Chennai in the year 1952.to boost up the market for
batteries, it was logical for the company to setup a torch manufacturing plant. Due to this
torch manufacturing plant was set upped in Lucknow in the year 1958.today,it is one of
the largest torch manufacturing plants in South East Asia. This plant is manufacturing
the full range of brass, aluminum and plastic torches.
MILESTONES:
• 1905: National Carbon starts its Indian operations with the sale of batteries Imported
from USA.
• 1926: Eveready Company India sets up the first carbon factory at canal road, Kolkata.
Summer Internship Project |PGDM 12-14 5
• 1934: Eveready Company incorporated as a private company on 12th November.
• 1939: Camper down works-first modern battery plant established at Cossipore in
Kolkata
• 1941: Union Batteries merges with Eveready Company and the name is changes to
National Carbon Company.
• 1951: Renamed as union carbide India Ltd., a subsidiary of the word wide
multinational, and union carbide corporation.
• 1958: Company set its torch manufacturing plant in Lucknow, one of the largest in
south Asia.
• 1959: Name of the company changed to union carbide India Ltd., plant in Bhopal,
India.
• 1995: Sale of shares of union corporation in union carbide India Ltd., to Mc. Leod
Russell(India)Ltd. Belonging to Williamson major group and new name-Eveready
Industries India ltd.(EIIL)
• 1996: Mc. Leod Russell (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 hundred years old.
VISION
The vision of the industry is justified into two broad categories which are:
1. Companionship:
• Eveready is a high value companion tie consumer of all socio-economic levels, out
trade, supplier and shareholders.
• A brand means added value. It is the only steering mechanism available to build
profitable growth.
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• Eveready possess concerned about environmental issues.
• Corporate identity of Eveready is highly visible.
• Eveready ensure widest availability.
2. Tangible differentiation:
• In competitive markets, strategic profitable growth can only come from intrinsic
differentiation, which is tangible.
• R&D and marketing team have to innovate constantly to achieve this differentiation to
offer better value.
• Real benefit, even it is small, must be measured, No attribute is small if communication
properly.
Eveready Industries India is endeavoring to become the second largest carbon zinc
battery maker in the world. At present, the company produces 1.2 billion batteries and
the vision was to take it to two billion batteries over the next few years. If the company
manages to achieve a
Production capacity of two billion batteries, then it would pip Energizer and become the
second largest carbon zinc battery maker in the world. The largest carbon zinc battery
maker was Matsushita with 2.8 billion Batteries. Mr. Deepak Khaitan, executive vice
chairman and managing director Eveready Industries India said, the company was
currently the third largest carbon zinc manufacturer with a capacity of 1.2 billion
batteries, which included exports and original equipment manufacturers (OEMs).
As part of its vision, Eveready was adding a new line in Kolkata and a Greenfield facility
in Uttaranchal with a capital expenditure of Rs 40 crore. The project would be financed
through internal accruals. The Uttaranchal facility would start off with production of brass
flashlights and then start producing batteries. Further, the company was also eyeing the
Chinese market and was in discussions with three companies for a Joint venture, where
Eveready would have 25-45 per cent stake. Khaitan said, the decision on the specific
company would be reached by the end of the financial year. Meanwhile, Calcutta High
Court has approved the demerger of bulk tea business of Eveready. Khaitan said.
McLeod Russell will be reborn in the next 4-6 weeks. He added that the demerger would
enhance shareholder value.
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Literature Review
Industry size and structure
The Indian market for dry cell batteries is now estimated at 2.2 billion pieces by volume
and Rs. 12 billion by value. The battery market has only a few players, out ofwhich EIIL has a
market share of 51 per cent between Eveready and Powercell brands(Source: Company
estimate), and the next player lags by some 20 percentage points.
The battery market saw all the players passing on significant price increases to offset material
cost push in the recent past. Cumulative price increases for the various batterytypes ranged
between 20 per cent and 50 per cent. This met with stiff consumer resistanceand demand
started slowing down. Unfortunately, the price increases had to be persistedwith, due to input
costs continuing to prevail at high levels.
During the year under review, the market reversed its earlier trend of de-growth of thepast 3
years and recorded a modest growth of 4%. Latest trends indicate that the market ispoised to
stabilize with reasonable growth.
The segment pattern within the market underwent change during the recent past asconsumers
shifted from the more expensive 'D' size batteries to 'AA' size. The share ofthe principal battery
categories ended at the year-end as per the table below (Companyestimate).
Battery category
% of market
D 25.0
C 0.5
AA 67.3
AAA 7.2
Total 100.0
The above is quite similar to the pattern seen globally. To that extent it may be saidthat the
recent phenomenon has resulted in the Indian market in aligning itself to theglobal trend as far
as segment share is concerned.
The split of technology within the dry batteries market remained constant with zinccarbon
batteries virtually possessing the entire market with 98 per cent share. Thealkaline batteries
have minimal share of the market at 1 per cent and are present in onlysome premium urban
outlets. Rechargeable batteries, which have the balance 1 per cent ofthe market seems to have
made its mark on a loyal customer base, but remaining stagnant.
Consumption of batteries is driven by growth in the off-take of its applications. Agrowing need
for portable power and the advent of a number of battery-operated gadgetscatalyze
consumption. Since these address everyday use, batteries have enjoyed anon-cyclical demand.
The phenomenon of consumption reducing on account of increases in therecent past is
somewhat unique - perhaps determined by the significant extent involved.However, as latest
trends, including that of the year under review, seem to indicate, thatthe market is back to its
usual growth path.
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Performance review
Volume in the battery market in India was estimated to have grown by 4 per cent. Salesvolume
of EIIL also increased by a similar margin. As a result, the market share patternremained by and
large consistent with the previous year.
EIIL's product mix is quite similar to that of the market. In the year under review,'D' size had a
share of 27 per cent, and 'AA' at 66 per cent, 'AAA' at 6 per cent and 'C'at 1 per cent.
Marketing and distribution
The Company continued to put emphasis in strengthening its distribution network. Of thetotal
FMCG universe of 7.3 million outlets, penetration of batteries stocking universe wasat 65 per
cent. Eveready batteries were stocked in 66 per cent of such outlets, higherthan any other
battery brand by a wide margin.
Eveready's brand campaign featuring continued to add positive qualities to its brandvalue. EIIL
will persist with these efforts to further strengthen its brand salience.
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Products offering :
They are offering following products :
? Batteries
? Alkaline(Ultima)
? Rechargeable
? Carbon Zinc
? Dry cell batteries
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? Flashlights
? digiLED torches & UltraLED torches
? Brass Torches(Jeevan-sathi)
? Rechargeable Torches
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? Light Bulbs
? CFL(Compact Fluorescent Lamps )
? GLS(General Lighting Service)
? General Tube light
? Halogen lamp
? digiLED Lantern
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? Packaged tea
Premium Gold
Tez
Jaago
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? Other appliances
? Ultima Mobile power
? Rechargeable Fan
? Radio
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About Alkaline and Rechargeable batteries
They can be available in different forms and sizes like AA, AAA, 9V. Rechargeable batteries are
categorized in two variances according their mAh. From 600-1600 are categorized as low
capacity batteries those are specially made for toys and other low energy consuming appliances
and 2100+ are categorized as high capacity batteries those are usually used for camera, CD
players and other high energy consuming appliances.
Major competitor in alkaline segment:
V/S
Duracell is an American brand manufactured by leading FMCG brand Procter & Gamble.
Different types of alkaline batteries in different sizes like AA, AAA, 9V are manufactured
under this brand and this brand also have a strong advertising campaign and good
availability in market. The alkaline batteries are first properly introduced by this brand. And
now It is the market leader in this segment.This battery is giving a strong service and it is
specially known for it’s durability image.
Other Major brands available in the Market :
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Major Competitor in rechargeable batteries:
V/S
Godrej GPhas been introduced by Godrej, an international range of consumer battery in
partnership with the GP Batteries, largest consumer battery manufacturer. And It has a good
market presence in India.
ENVIE:
Envieis a new entrance in market and capturing huge market share of rechargeable batteries
and doing good performance in Indian market. Major reason for their success is they are giving
warranty to their product and promising a long lasting service in a cheaper price around half of
the price of leading rechargeable batteries.
Other leading brands in Rechargeable battery segment:
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Chapter – 2
Research
Methodology
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Research Methodology
Purpose
The basic purpose of this research is to find out placement and market size of Alkaline and
Rechargeable batteries and to generate interest among retailers about the product by informing
and properly introducing the product and to convince new retailers to sell the products.
Problem
To find out problem is the first stage of the research process. It represents translating the
management problem into research problem. It is rightly said, “A problem well defined is half –
solved.”
Consumers have faith in the brand image of Eveready, still its losing share to Duracell, Godrej
GP. In other parts they have a good market presence in normal zinc battery, flashlights, led
lamps but in alkaline sector they are beaten by its competitor, Duracell.
Though in other sectors this brand is doing good but in alkaline sector lack of awareness people
are not getting its use properly and Indian customers are price-sensitive customers so in that
case they are unwilling to buy the product and in case of rechargeable battery price is
unaffordable to general Indian customers.
Objective
? To know the market of Alkaline and Rechargeable batteries
? To analyze placement and market size of Alkaline and Rechargeable by market
surveying in some part of Kolkata
? To inform retailers about the product and encourage them to sell the product
? To identify problems regarding sales
? To offer informations and suggestions to the company for the improvement of the
product
? To identify market strategy of key players and Eveready’s potetiality in market in
particular segment
SAMPLE
Sampling Frame:
A Sampling frame consists of a list of item from which the sample is to be drawn.
The sample frame for this research consists of placement and market size of Alkaline
and Rechargeable batteries along with total sale per month and comparison of sales of
Eveready to other brands in Some part of Kolkata: Barrakpore & Palta, Dumdum,
Cossipur, Nagerbazaar, Sova Bazaar, Ultadanga, Vivekananda Rd(Kalakar St.), Jaan
Bazaar MKT, AnandaPalik MKT, Taltala MKT, Entally MKT, Theatre Rd. MKT, Mallik
Bazaar.
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Sample Size
The sample size of data is 243 individuals. I have prepared a questionnaire and visited 243
outlets of rechargeable and alkaline with the distributors and collected data by asking them and
by visiting and observing those stores to fill my queries.
Data Collection
Primary Method:
I have used primary method to collect data from the retailers by direct interaction. Data has
been collected by preparing a questionnaire and asking the respondents to fill up the
questionnaire.
Secondary Data:
I’ve collected information about the company and the products through internet.
Sampling Techniques:
Purposive Sampling or Judgmental Sampling: It is a non-probability sampling This is a
descriptive type of research. So in that case this sampling method involves deliberate or
purposive selection of particular units of the universe for consulting a sample, which represents
the universe and when elements are selected for inclusion the sample based on the ease if
access.
Research Technique:
Quantitative Research :
Quantitative Research is based on the measurement of quantity or amount. It is applicable to
phenomena that can be expressed in term of quantity. Through this project I’ve collected data
regarding the data of how much quantity of Rechargeable or Alkaline battery are sold or place or
captured the market share.
Methodology Used:
The methodology of the research contains mainly two parts. One part relates to the procedures
of data collection, instruments and techniques used in data collection and the second part refers
to analysis of data on the basis of defined objectives, which contains techniques used in data
analysis.
Limitations of the study:
? The sample size is very less, hence the respondases of 243 respondents does not imply
for the complete population.
? The data collected may not be representation of the entire population.
? There is a possibility of the respondents being biased they are selling the particular
brand; hence the information collected might not be an accurate one.
? As a market being very huge it was not possible to cover each and every area.
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Chapter – 3
Data Analysis
And
Interpretation
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Data Analysis of Alkaline Batteries
From those collected data the following findings are available :
Figure 1:
Availability of Alkaline Batteries in Different Outlet Types:
0
20
40
60
80
100
120
140
Kirana
General
Stores
Studio
Electrics
Electronics
Outlet Type
Outlet Type Total Avg.
Kirana Shops 80 33%
General Stores 124 51%
Studios 14 6%
Electrics 22 9%
Electronics 3 1%
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Figure 2:
Placement of Alkaline battery and it’s market share :
Total Stores Visited:243
Total Alkaline Sales per month: 2003
Total Market Share:
Brands Total Share Avg.
Eveready 1773 42%
Duracell 2448 58%
Others 48 1%
Market Share and Placement of Alkaline
Batteries
Duracell Share
Eveready share
Others
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Data Analysis related to rechargeable batteries
Total Stores visited: 243
Total number of rechargeable outlets among them: 30
Total High Capacity battery sales per month: 76
Total low capacity battery sales per month: 72
Total Share of High Capacity rechargeable battery of Eveready: 146
Total Share of High Capacity rechargeable battery of Godrej GP: 36
Total Share of High Capacity rechargeable battery of others: 118
Total High Capacity batteries 300
Total Share of Low Capacity rechargeable battery of Eveready: 104
Total Share of Low Capacity rechargeable battery of Godrej GP: 48
Total Share of Low Capacity rechargeable battery of others: 98
Total low capacity batteries 250
Figure 3 & 4:
49%
12%
39%
Eveready Share in
total High Cap
rechargeable
batteries:
Eveready Godrej GP Others
42%
19%
39%
Eveready Share in
total Low Cap
rechargeable
batteries
Eveready Godrej GP Others
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Figure 5:
Figure 6:
Types of Outlets Total stores Avg.
General Stores 7 23%
Studio 10 33%
Electrics 11 37%
Electronics 2 7%
243, 89%
30, 11%
Rechargeable battery outlets' share in visited
area
Total no. of stores visited
Rechargeable outlet
Availability of rechargeable batteries in
different types of stores:
General Stores
Studio
Electrics
Electronics
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SWOT Analysis of rechargeable and alkaline batteries by Eveready
Strengths:
? Availability in Market
? Strong Brand Image
? Systematic and well-maintained distribution channel
? Saturated market by giving services to the customers from long time and by improving
their services by continuous R&D by gaining experience as an old player in market
? Understanding of Indian consumer behavior
SPECIAL FEATURES PRESENT IN EVEREADY:
a) Eveready has a totally computerized battery testing facility - the only battery testing
laboratory accredited by National Accreditation Board for Testing & Calibration Laboratories
(NABL) - where batteries can be tested as per BIS, IEC and JEC standards
b) Eveready’s research team constitutes highly qualified Scientists, Engineers, Chemists and
Technicians dedicated to maintaining technology leadership in Zinc-Carbon batteries,
Flashlights and related components.
c) The Research Centre has Pilot Plant facilities, Analytical testing facilities such as Atomic
Absorption Spectrophotometer (AAS), Polar graph, X- Ray Diffract meter (XRD) and a Chemical
Laboratory. The Eveready Research Centre is capable of providing world-class testing and
research support to meet stringent customer requirements from across the world.
d) Eveready has always pursued and advocated the best prevailing management practices. The
team is alert to changes in the domestic and international markets resulting in higher standards
of excellence. When the TQM wave from Japan hit India in the mid 80’s, the organization
planned the realignment of its management system with focus towards customer satisfaction.
The organization was restructured and a Basic Training Program (BTP) launched for
deployment & implementation of TQM practices
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Weaknesses
? Lack of consumer awareness and poor promotional activity
? High price comparison to others
? Unaffordable to low-income segments
Opportunities
? Strong Distribution network
? Less competition in market
? Strong Brand-Image
? Increasing usage of batteries in remotes, cameras, gadgets and toys and other
appliances
? Having strong presence in market in other segments
Threats
Batteries do not face any serious threat because they are items of recurring use providing
portable energy at an affordable cost. But they also have to face some minor threads those are:
? Strong competitors: They are offering better services in lower price (Duracell, Envie,
Godrej GP)
? Availability of china products in market in cheaper price
? Entrance of new competitors in this segment
? Low per-capita consumption
? Price-sensitive nature of Indian customers
? New generation battery like lithium-ion battery
? Increasing Price of raw materials
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Chapter – 4
Recommendations
And
Conclusion
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Recommendations
Though Eveready is a huge brand in battery sector but in Alkaline there are tough competitors in
market so they have to play a strong strategy to compete with them
? They should use their brand image in Alkaline battery sector and most of the
people are not aware to this particular product for that they should do some
promotional activity positively.
? They are old player in market in this sector so they understand their customers
very well. So, they should understand that Indian customers are price-sensitive
customers.
? They should concern about their price because their offering price is quite high
as compared to other brands in both alkaline and rechargeable segment.
? There are various Chinese brand they are offering their products in half of the
price of Eveready products with attractive warranty offers.
? By offering quality product in reasonable price they can survive in alkaline and
rechargeable sector.
? They have a good market in other segments so they can use some combo offers
and can give their alkaline products with their other products to properly
introduce the advantages of alkaline batteries to the customers.
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Conclusion
So, from this previous discussions we can conclude that though in zinc carbon battery and
flash light sector Eveready is doing well but for alkaline they have long way to go. They should
reduce their price offering quality product to catch the market. And they should also properly
aware the customers about the advantages of alkaline battery because customers are not fully
aware of the particular product. So they should do some promotional activity to promote the
product to the customers.
And in case of rechargeable though Eveready is doing well as comparison to others
but the total sale of rechargeable is not so satisfactory. There are so much Chinese players
they are offering their products in half of the price of Eveready products. And in case they are
doing well. So they should not underestimate them and apply some strategy to overcome this
matter. And above all rechargeable battery is in decline stage because new and better
technologies have come into market. So they should also adopt those technologies to survive
in the market.
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Bibliography
? http://www.evereadyindustries.com/
? http://en.wikipedia.org/wiki/Eveready_Industries_India
? http://www.evereadyindustries.com/about-us/current.asp
? http://www.evereadyindustries.com/business/lighting-solutions.asp
? http://www.evereadyindustries.com/business/batteries.asp
? http://www.evereadyindustries.com/business/flashlights.asp
? ‘Marketing Management’ by Philip kotler
doc_784992363.pdf