Business and Management

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How can Eveready India Pvt. Ltd. improve its position in the rural market of India?

Contents

Acknowledgements
Letter of Authenticity
Written Commentary
Conclusion
References
Supporting Documents

Acknowledgements:

Excellence cannot be achieved without support; Necessity is the ray of light and necessity is the motivation for consistent effort.
I take this opportunity to thank honourable P. Bala Bhaskaran sir whose words of kind knowledge and wisdom helped me to do justice with my work.

With sincere thoughts and deep sense of gratitude I would like to take this opportunity to thanks my respected faculty PROFESSOR SUJOY KUMAR DHAR who guided me throughout my work for this project.

I would like to thank my company guide Mr. SUDEEP GHOSAL who took keen interest in my project and made it worthy. He provided all the possible support to me throughout my training period.

I would also like to thank my Business and Management teacher Mrs.Rajeshwari who guided me throughout and helped me to present this project.

Company Details

Eveready Industries India Ltd. a 103 year old company is known for its distribution strength and People Development. Eveready Industries India Limited is one of India's most reputed FMCG companies. The company has a portfolio comprising dry cell batteries (carbon zinc batteries, rechargeable batteries and alkaline batteries), flashlights (torches) and packet tea. It has recently forayed into the mosquito repellant industry under the brand name, ‘Poweron'.

Eveready is India's largest selling brand of dry cell batteries and flashlights (torches), with dominant market shares of about 46% and 85% respectively.

Eveready is the world's third largest producer of carbon zinc batteries, selling more than a billion units a year. Its carbon zinc batteries dominate the Indian market with a complete range for all equipment types.

The turnover in the financial year 2005-06 for Eveready Industries India Limited was approx. US $ 176 million. Eveready celebrated its centenary year in India in 2005. The new tagline “The Next Century of Power” affirms Eveready's commitment to being technology leaders well into the future, evolving with consumers to meet their changing needs.  From small beginnings with an import consignment in 1905 of Rs 500, Eveready today dominates the Indian market and stands for portable power and light to millions of consumers.

TQM

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 acceleration of the ‘Change Management' was visible around 1991. The organization was restructured and a Basic Training Program (BTP) launched for deployment & implementation of TQM practices.

Today TQM is institutionalized in all manufacturing units with the quality management system (QMS) based on ISO 9000 standards following the TQM guidelines of ISO 9004.

Further enhancing its competitiveness and product reliability, Eveready initiated World Class Maintenance (WCM) management system in1997, based on the philosophy of focus on defect and variability reduction through planning of maintenance to keep the production equipment in “As designed condition always”.

Product Mix

Batteries

Torch

Packet tea

CFL

Coils

Vaporizer

Dish wash

Pencil AA

Brass              ( Jeevan sathi Range)

TEZ

EL Range

8 HR

60(45+15) NIGHTS

DW-100

Pencil AAA (Remote Battery)

Aluminum

JAGO

PL Range

10HR

 

DW-200

D size(Big size Battery)

Plastic

CLASSIC

Metal Halides (Industrial)

12HR

 

DW-400

C size(Medium Size Battery)

Led Torches (Digi Led)

GOLD

Halogens

 

 

 

Rechargeable Batteries & Chargers  700 mAh

Rechargeable Torch

 

 

 

 

 

Rechargeable Batteries & Chargers 2100 mAh

 

 

 

 

 

 

Recharge Batteries - AAA - 600mAh

 

 

 

 

 

 

Cordless Phone Batteries - T107,110,109

 

 

 

 

 

 

THEORETICAL FRAMEWORK


Eveready Industries has enjoyed a great monopoly till the recent past. Today the company is facing tough competition since there are many competitors in the market. It has been following an old system of working. Now in order to maintain its cash flow, I think Eveready should consider rural markets as in these areas the competition is less and Eveready should be the first one to dominate these areas so that their cash flow remains normal or in fact better.

SWOT analysis:

Eveready India Pvt. Ltd has a wide range of products as seen in the company's product mix. This means that if one of their products fails in one region, there are other products which may save the company which is a huge strength of Eveready. The effective distribution channel also helps Eveready to certain that its products are reaching to the people. The brand name of the company is well established that people can avoid it. If the company launches a new product, it is most likely to be accepted by the people because of its brand image. Eveready enjoys a good competitive advantage over its new competitors as its brand name is already set in the market in and around India. It is more likely to maintain its monopoly in the Indian market because of its presence in the country for more than hundred years.

Though the company has quite a few strengths, they do have weaknesses as well. The company follows an outdated system of work which includes excess of paper works which wastes energy and time when the right technology is just next door. Eveready is unable to cope up with the market changes because of its wide spread. As the competition is becoming tuff, the market share of the company is going down rapidly as it is being shared by its different competitors. Due to less cash flow unlike its previous years, the company is saving on advertisements which is not helping them in any way as the people are not informed of the company's new products and prices. The company has is failing in adopting new technologies whereas its competitors are entering the market fully equipped with the latest technology which gives them economies of scale as well as better quality products. There are no unique products produced by Eveready India PVT. Ltd. The products they make has nothing extraordinary than the product of its competitors.

There are some opportunities for Eveready that if made use of can get its monopoly back in the market. There are still major portions of the rural segment to be tapped by Eveready. If it does so, the company will increase its customer base as well as brand name. There are loads of new technology is available which if utilised, will give the company a lot of advantage over its competitors with its high quality product and already established brand name. The company can also start more advertisements to maintain its brand name and loyalty. Company can also invest in R&D to expand its product mix and target all kinds of customers. In some of the rural areas, it is believed that if the tea packet is red, it means that the tea is better. As Eveready sells its tea in green packets, it may think on changing the colour of the retail packets from green to red to increase its sales. Eveready can easily takeover small companies ruling in the rural areas. Some areas are not feasible for the company to sell goods. So I think they can develop E-marketing where they can sell their goods to any person in the world and can reach them in no time. Eveready can also think of developing products which have alternate usage such as torches which can be used in the dark and also help in detecting counterfeit currency.

After a list of opportunities, the company needs to be aware of the threats to it. The competition is increasing day by day and the consumers are getting greedy to get the best quality product in the least price and all the companies are fighting to get to that stage keeping their profits in mind. A new player in the market maybe a threat as he will be aware of the current market and will have the latest technologies on his side to compete with. Eveready should also be cautious of its competitors that it does not take away its biggest customers. All the companies fight for the price as the least price takes it all. So Eveready also need to assign competitive prices to survive in any market. If the competitor has a superior access to channels of distribution, then their will products would easily reach the people and faster too. So Eveready should also take care of its distributing channels to become successful or remain one.

Strengths

  • Wide product range
  • Effective distribution channel
  • Known brand name
  • Competitive advantage
  • Familiar with the Indian market because of its presence for more than hundred years.

Weaknesses

  • Outdated system of work
  • Unable to cope up with the changes
  • Decreasing market share
  • Excess of paper works
  • Decreasing advertisement
  • Failure to adopt modern technology
  • Undifferentiated products

Opportunities

  • Still major portion of rural segment to be tapped
  • New technology is available
  • Can use advertisements to utilise its brand name
  • Research and Development to expand product mix
  • Change packets green to red.
  • Can takeover small companies.
  • Developin e-market
  • Product with alternate useage

Threats

  • Increase in competition.
  • New player in the market
  • Rival technology with improved version
  • Competitor having a strong hold on its biggest customers
  • Price war
  • Competitor has superior access to channels of distribution.

PEST analysis:


Political
  • Environmental regulations
  • Tax policy
  • Trade restrictions
  • Tariffs
  • Political stability
  • Employment laws
  • Pressure groups

Economical

  • Exchange rates
  • Economic growth
  • Interest rates
  • Inflation rate

Social

  • Health consciousness
  • Career attitudes
  • Emphasis on safety
  • Population growth rate
  • Advertising and publicity

Technological

  • Automation
  • R&D activity
  • Rate of technological change
  • Technology incentives

 

 

 

 

 

 

 

 

 

REFERENCES


For my project I have referred many sources. I have got the data from the company ledgers, claim sheets, customer files etc. Apart from primary sources, I have referred some secondary data also which are

  • Book on Marketing Management 12th edition by Kotler, Keller, Koshy, Jha. Page number 34 for Value delivery process and the outbound logistics. Page number 396 onwards of chapter 15 for the various distribution channels.
  • Annual report 2006 of Eveready Industries India Limited.

I have also referred to some websites for some information. They are

  • http://www.mie.utoronto.ca/labs/ilr/imLEG/glossary.htm
  • www.evereadyindustries.com

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