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Satisfaction is a person feeling of pleasure or disappointments resulting from

comparing a product perceive performance or outcome in relation to his/her expectation.
As this definition makes clear, satisfaction is function perceive performance and
expectations. If the performance falls short of expectations the customer is dissatisfied. If
the performance matches the expectation the customer is satisfied. If the performance
exceeds expectation the customer is highly dissatisfied.
Buyers form their expectations from past buying experience, friends and
associates, advice marketers & competitor information and promises. If marketer raises
expectations too high, the buyer is likely to be disappointed.
Some of today’s most successful companies are raising expectations and
delivering performance to match. These companies are aiming for TCS (Total Customer
Satisfaction). Some companies guarantee total customer satisfaction and will replace at
its expense any dissatisfied customer’s equipment within period of many years after
Study shows that although customers are dissatisfied with one out of every four
purchases, less than 5% of dissatisfied customers will complain. Most customers will by
less or switch suppliers. Complaints levels are thus not a good measure of customer’s
satisfaction. Responsiveness companies’ measure
Customer’s satisfaction is closely linked to quality in recent years. Many
companies have adopted Total Quality Management (TQM) programs, designs to
constantly improve quality of their products, service & marketing processes. Quality has
an impact on product performance and hence on customer satisfaction.

• To study and compare the customer satisfaction of maruti suzuki motor with other
• To know about the post sales service provided by the dealer.
• To find out the overall experience of the customers with reference to MITHRA
Maruti Agency.
• To find out whether the vehicle details were made known to every Customer or


Research Design
Sample Design : Descriptive Research
Type of universe : Consumer
Sampling unit : Hyderabad
Size of the sample : 100
Type of sampling : Simple random sampling
Type of question : Open-ended and Close-ended
Type of questionnaire : Structure disguised
Type of scaling : Nominal, Ordinal, Interval scale

a. Primary Source: This was the main source of data. The data was obtained from
individual respondent through a questionnaire.
b. Secondary Source: The use of secondary data is made in knowing the industry
trends and market share of individual company.


Data was collected from primary sources. The instrument used for this purpose
was a structured questionnaire, which was formatted in such a way that it was clear and
easy for the respondents to understand and it had optimum number of questions. The
questionnaire method was chosen for this research because collection of behavioral data
was the key objective of this research.

The geographical scope of study is confined to the city of Hyderabad.
The various customers were met to find out their perception towards the various elements
that satisfies the customer.
This study given me a wonderful opportunity to meeting different customer of four
wheeler companies and get a great practical exposure of working with them.

The study could not be conducted on a large sample size and area
Because of time constraint.
The number of sample size is respondents and the study is confined
Only to the Hyderabad confined limits.
The study is time bound & would be applicable to the current Findings of the study.
With the recent influx of different brands in today’s four wheeler auto segment
each striving to satisfy customers with the end results of maintaining loyalty, at present
cars as such have become necessity but not a nicety.
With this out look of today’s market it is even a layman’s perceptive that Ford itself
reflects a satisfied customer.
Keeping in mind curriculum requirement & organizational requirement the study has
been conducted to find out customer satisfaction towards BLUE STAR products.
However, due to time constraints an in-depth study could not be undertaken.
Whether the buyer is satisfied after purchase depends on the offer performance in
relation to the buyer’s expectations.
Satisfaction is a person feeling of pleasure or disappointments resulting from
comparing a product perceive performance or outcome in relation to his/her expectation.
As this definition makes clear, satisfaction is function perceive performance and
expectations. If the performance falls short of expectations the customer is dissatisfied. If
the performance matches the expectation the customer is satisfied. If the performance
exceeds expectation the customer is highly dissatisfied.
Many companies are aiming for high satisfaction because customers who are just
satisfied still find easy to switch when a better offer comes along. Those who are highly
satisfied are much less ready to switch. High satisfaction or delight creates an emotional
bond with the bond, not just a rational preference. The result is high customer loyalty.

Senior management believes that a very satisfied that a very satisfied or delighted
customer is worth ten times as much to the company as a satisfied customer. A very
satisfied customer is likely to stay in company for many more years and by more than a
satisfied customer will.
Buyers form their expectations from past buying experience, friends and
associates, advice marketers & competitor information and promises. If marketer raises
expectations too high, the buyer is likely to be disappointed.
Some of today’s most successful companies are raising expectations and delivering
performance to match. These companies are aiming for TCS (Total Customer
Satisfaction). Some companies guarantee total customer satisfaction and will replace at
its expense any dissatisfied customer’s equipment within period of many years after
For customers centered companies, customer satisfaction is both a goal and a
marketing too. Companies that achieve high customer satisfaction rating make sure that
the target market knows it.

Study shows that although customers are dissatisfied with one out of every four
purchases, less than 5% of dissatisfied customers will complain. Most customers will by
less or switch suppliers. Complaints levels are thus not a good measure of customer’s
satisfaction. Responsiveness companies measure customer satisfaction directly by
conducting periodic surveys. They sent questionnaire or make telephone calls to random
sample of recent customers. They also solicit buyer’s view on their competitor’s
While collecting customers satisfaction data kit is also useful it ask additional questions
to measure repurchase intention, this will normally by high if the customers satisfaction is
high, it is also useful to measure the likelihood or willingness to recommend the company
and the brand to others. High positive word-of-mouth score indicates that the company is
Producing high customer’s satisfaction. When customers rate their satisfaction with
the element of company’s performance like delivery. The company needs to recognize
that customer vary in how they define good delivery. It could mean early delivery on time
delivery, order completeness and so on. Yet if the company had to spell out every
element in detail customers would face huge questionnaire the company must also realize
that customers can report being satisfied for different reasons. One may be easily satisfied
most of the time and other might be hard to please, but was pleased on this occasion.
Company should also note that managers and sales people could manipulate
customer’s satisfactions rating. They can especially nice to customers just before the
survey. They can also try to exclude Un-happy customers from the survey. Another
danger is that if the customer knew that the company would go out it way to lease
Some express high dissatisfaction (even if satisfied). In order to receive more
concessions. Some companies navigate all these pit falls to reach their customers value
and satisfaction goals. We call these companies high-performance business.
Customers satisfaction depends on the products perceive performance in delivery
value relative to buyer’s expectations. If the product performance falls short of customer
expectations, the buyer is satisfied. Outstanding marketing companies go out of their way
to keep their customer satisfied.
Satisfied customer may report purchase and they tell us about their good
experience with the product. The key being to match customer’s expectations with
company performance. Smart companies aim to delight customers by promising only
what they can deliver then delivering more than they promise.
Customer’s satisfaction is closely linked to quality in recent years. Many companies
have adopted Total Quality Management (TQM) programs, designs to constantly
improve quality of their products, service & marketing processes. Quality has an impact
on product performance and hence on customer satisfaction.

Customer satisfaction definition:

Customer satisfaction, commonly abbreviated CS, is a business term which is used

to capture the idea of measuring how satisfied an enterprise's customers are with the
organization's efforts in a marketplace. It is seen as a key business performance indicator
and is part of the four perspectives of a Balanced Scorecard.

Every organization has customers of some kind. The organization provides products
(goods and/or services) of some kind to its customers through the mechanism of a
marketplace. The products the organization provides are subject to competition whether
by similar products or by substitution products.

Reasons to Monitor Customer Satisfaction:

The reason an organization is interested in the satisfaction of its customers is
because customers purchase the organization's products. The organization is interested in
retaining its existing customers and increasing the number of its customers.
Measuring Customer Satisfaction:
Customer satisfaction is an ambiguous and abstract concept and the actual
manifestation of the state of satisfaction will vary from person to person and
product/service to product/service. The state of satisfaction depends on a number of both
psychological and physical variables which correlate with satisfaction behaviors such as
return and recommend rate. The level of satisfaction can also vary depending on other
options the customer may have and other products against which the customer can
compare the organization's products. Because satisfaction is basically a psychological
state, care should be taken in the effort of quantitative measurement, although a large
quantity of research in this area has recently been developed. Work done by Berry,
Brodeur between 1990 and 1998 defined ten 'Quality Values' which influence satisfaction
behavior, further expanded by Berry in 2002 and known as the ten domains of
These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency,
Ease of Access, Environment, Inter-departmental Teamwork, Front line Service
Behaviors, Commitment to the Customer and Innovation. These factors are emphasized
for continuous improvement and organizational change measurement and are most often
utilized to develop the architecture for satisfaction measurement as an integrated model.
Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides
the basis for the measurement of customer satisfaction with a service by using the gap
between the customer's expectation of performance and their perceived experience of
performance. This provides the measurer with a satisfaction “gap” which is objective
and quantitative in nature. work done by Cronin and Taylor propose the
"confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman,
Zeithaml and Berry as two different measures (perception and expectation of
performance) into a single measurement of performance according to expectation.
According to Gar brand, customer satisfaction equals perception.
The usual measures of customer satisfaction involve a survey instrument with a set of
statements using a Likert Technique or scale. The customer is asked to evaluate each
statement and in term of their perception and expectation of the performance of the
organisation being measured.
Today, customer satisfaction is the mission of most companies. Companies like Dell
have made make-to-order products and direct sales their differential advantage in
increasing customer satisfaction. Operational strategies can now be structured for
attaining high levels of customer satisfaction at relatively low costs. Innovations in online
information access, creative product design, flexibility, outsourcing, postponement,
dynamic pricing, and reactive-capacity have been the major enablers of managing
manufacturing-supply networks.
However, the choice of positioning a firm along the dimensions of customer
satisfaction and total delivered cost, and its implications for operational strategies, are
not yet clear.

Blue Star is India's largest central air-conditioning company with an annual turnover of
Rs 2270 crores, a network of 24 offices, 5 modern manufacturing facilities, 650 dealers
and around 2500 employees. Blue Star has business alliances with world renowned
technology leaders such as Rheem Mfg Co, USA; Hitachi, Japan; Eaton - Williams, UK;
Thales e-Security Ltd., UK; Jeol, Japan; ISA, Italy and many others, to offer superior
products and solutions to customers. The Company has manufacturing facilities at Thane,
Dadra, Bharuch, Himachal and Wada which use state-of-the-art manufacturing
equipment to ensure that the products have consistent quality and reliability.

Blue Star fulfills the air-conditioning needs of a large number of corporate and
commercial customers and has also established leadership in the field of commercial
refrigeration equipment ranging from water coolers to cold storages. Blue Star's other
businesses include marketing and maintenance of hi-tech professional electronic and
industrial products. Blue Star primarily focuses on the corporate and commercial
markets. These include institutional, industrial and government organizations as well as
commercial establishments such as showrooms, restaurants, banks, hospitals, theatres,
shopping malls and boutiques.

• To deliver a world class customer experience.

• Focus on profitable company growth.
• Be a company that is a pleasure to do business with.
• Work in a boundary – less manner between divisions to provide best solutions to
• Win our people’s hearts and minds.
• Place the company’s interest above one’s own.
• Encourage innovation, creativity and experimentation in what we do.
• Build an extended organisation of committed business partners.
• Be a good corporate citizen.
• Honour all personal and corporate commitments.
• Maintain personal integrity.
• Ensure high standards of corporate governance.

Blue Star was founded in 1943, by Mohan T Advani, an entrepreneur of exemplary vision
and drive. The Company began as a modest 3-member team engaged in reconditioning of
air conditioners and refrigerators. An expanding Blue Star then ventured into the
manufacture of ice candy machines and bottle coolers and also began the design and
execution of central air-conditioning projects. Then came the manufacture of water
coolers. In 1949, the proprietorship company set its sights on bigger expansion, took on
shareholders and became Blue Star Engineering Company Private Limited. Ever since,
there has been a constant and profitable growth. Blue Star diversified and took up
agencies for Material Testing Machines and Business Machines. The export arena
beckoned and the Company began exporting water coolers to Dubai, where in fact, 'Blue
Star' soon became the generic name for water coolers. The sixties and the early seventies
witnessed Blue Star continuing to expand and thrive. A team of dedicated professionals
aided Mohan T Advani in ever furthering his vision of a profitable company dedicated to
its ideals of professionalism and success. Employee strength crossed the 1000 mark and
the company went public in 1969 to become Blue Star Limited, as it continues to be
called today.

Blue Star crossed the Rs. 500 crore milestones in 2000 and the Rs. 600 crore
milestones in 2002-03. With the boom in construction activity and increased
infrastructure investments, the Company leveraged its leadership position to grow
aggressively. In the following three years, the Company nearly doubled its turnover,
clocking Rs 1178 crores in 2005-06.

Even more than size, Blue Star enjoys an enviable reputation as an ethical corporation,
ever mindful of its obligations towards customers, shareholders, dealers, business
partners, employees and the environment in which it operates.
Year Event
1943 Mohan T Advani establishes Blue Star Engineering Company as a
proprietary firm
1946 Blue Star secures Melchior Armstrong Dessau agency
1947 Worthington selects Blue Star as Indian Partner. Manufacturing of
ice candy machines and bottle coolers begins. Central air-
conditioning system design and execution begins
1948 Manufacture of water coolers commences
1949 Proprietorship converted to Private Limited Companies
1954 Blue Star selected as distributor for Honeywell
1955 GDR Testing machines distributorship begins
1957 Perkin-Elmer tie-up marks the start of the electronics business. GDR
business machines agency commences
1960 Total Income crosses the Rs 1 crore mark
1964 Total employment crosses 1,000
1965 Techniglas Pvt Ltd set up to manufacture insulation material
1969 Factory moves from Colaba in Mumbai to Thane
1970 Hewlett- Packard distributorship commences
First skyscrapers of Mumbai – Air India Building, Express Towers
and Oberoi Hotel set-up – all air-conditioned by Blue Star
1972 Total Income crosses Rs 10 crores. Employment crosses 2,000
Water Cooler manufacturing license granted to Yusuf Alghanim,
Middle East thrust begins. Joint Venture (JV) with Al Shirawi in
1977 Hitachi Medical Equipment distributorship begins
1978 Industrial Division commences activity
1980 Bharuch Factory set up
1980-86 Major AC and R projects executed in the Middle East
1983 International Software Division inaugurated in Seepz
1984 York technology collaboration begins
Manufacture of centrifugal packaged chillers commences at Thane
1986 Total Income crosses Rs 100 crores
1987 Yokogawa Blue Star JV formed
1987 Gandhinagar factory set up for EPABX systems
1988 Blue Star becomes India’s largest central air-conditioning company
1988 Manufacturing collaboration with Mitsubishi

Blue Star understands that skilled manpower and other staff members are an
indispensable part of the manufacturing set-up and the management should work
shoulder to shoulder with them. Management grade staff too is put through training
programs on various aspects of manufacturing and business. Also, performance awards
are announced every year. Apart from enhancing the skills of the staff, such initiatives
create a positive, firm and lasting emotional bond between staff and company. This in
turn contributes to greater productivity.


The factories make extensive use of IT to enhance productivity and product

development capabilities. All our factories are ISO 9001: 2000 certified BAAN ERP
implemented in 3 factories and Himachal under implementation.


Sheet metal fabrication:

A high degree of repetitive accuracy in sheet metal fabrication is achieved by

using specialized equipment, CNC metal forming machines. The raw material used is
prime quality, corrosion-resistant, galvanized steel for enhanced life of the product. The
equipment used for processing the steel includes CNC machines such as an Amada turret
punch press, a LVD / Amada hydraulic press-break. All these allow for high quality
cabinet fabrication within tight tolerances.

Power coating plant:

The state-of-the-art powder coating plant covers a wide range of very specialized
process equipment, and is fully automated. A water-softening unit treats the raw water
before it is utilized in the automatic hot spray pre-treatment system. It provides an even
distribution of chemicals, controlled by an auto dosing mechanism that maintains the
chemical bath composition with the help of electronic sensors. After a final mineral water
rinse, the components pass through a dry-off oven under dust-free conditions to remove
all traces of moisture. The components are then transferred into the powder painting
booth for coating, where temperature, humidity and dust levels are controlled. The
powder painting equipment, supplied by Nordson, USA, is equipped with automatic
electromechanical oscillators, for even powder deposition.

Desiccant dry air-with a dew point of minus 40 0 C - helps avoid any moisture
contamination of the powder. A 'smart spray' mechanism senses the conveyor movement
and component geometry to adjust powder flow. Polyester powder - ideally suited for
out door applications - provides the maximum protection against UV deterioration and
corrosion. The components finally pass through a temperature-regulated curing oven to
achieve desired gloss and surface hardness.

Heat exchangers:

Experienced engineers create heat exchanger designs using high precision design
software, which are then validated in our test labs. Blue Star also makes sure that the
designs are energy efficient for optimum heat transfer.
Fin and Tube: The sophisticated coil shops have some of the most advanced machines
from USA, Japan and Korea. The Burr Oak coil line produces energy efficient DX heat
exchangers. These have plain or enhanced split fins with grooved copper tubes for
maximum heat transfer efficiency. Then the source plain and inner grooved copper tubes
with coated aluminum fin stock of international quality from leading manufacturers to fit
our specifications.

Shell and Tube: Blue Star has shell and tube exchangers using specially enhanced
surface copper tubes and shell design as per Blue Star or TEMA standards. Blue Star uses
Heat Transfer Research Inc. (HTRI design software for these heat exchangers).

Plate Type: Blue Star products also incorporate stainless steel plate heat exchangers for
specialized process applications.

System tubing:

3-axis CNC copper tube-bending machines from Japan fabricate wrinkle-free

system tubing to exact dimensions for a perfect stress-free fit. Special purpose machines
carry out operations like end closing, flaring and forming for good joint formation. Prime
quality copper tubes sourced globally help in optimum product performance.


The brazing process is carried out in an inert atmosphere to avoid oxidation and
the resultant impurities from contaminating the refrigerant system. Specially selected
brazing equipment and fixtures are used to produce high quality brazing. The joints are
pressure-tested to check weld strength and leakage. The coils are then tested for fine
leaks with ultra-sensitive electronic leak detectors. An automated coil brazing line from
Korea ensures consistent quality brazing and leak proof joints.

PUF installation:

Blue Star fabricates CFC-free PUF insulated panels by using the latest equipment
from Cannon. This enables to achieve a uniform and constant density of insulation for air
handling units, telecom shelters and cold storage panels. Blue Star supply panels of up to
6 meters in length and 25 mm to 125 mm in PUF thickness. PUF insulation expertise
finds use in a wide range of applications such as Air Handling Units, water coolers, deep
freezers, reach-in coolers and mortuary chambers.

Assembly and testing:

The final product is assembled sequentially on conveyors, with in-built quality

checks during assembly operations. Pneumatic tools permit torque-controlled rigidity,
and specially coated corrosion-resistant hardware provides firm locking. Each machine is
then electronically tested for leaks and run-tested for performance and electrical safety
parameters before packaging.


Central air-condition:
The building blocks of Blue Star’s solutions are its products. The most
comprehensive range of air-conditioning products in the country. A wide range of models
are available in each product category to ensure that the air-conditioning system design is
implemented without any compromise. All products have been designed on the energy-
efficiency platform, and offer a host of advanced features.

Room air conditioners:

By being an expert in the area of central air-conditioning, it also helps us

understand the cooling requirements of a diverse range of applications. This expertise,
knowledge and the skills have helped us to have some of the most technologically
advanced and energy efficient air-conditioning solutions for small spaces.

Commercial Refrigeration:

Having been the leaders in commercial refrigeration, we have a wide range of

products catering to various small and large scale industries

Cold storages:

Blue Star’s Cold Storage Division offers us a wide range of cooling and
preservation solutions. Solutions tailored made to suit any industry that requires storage
of perishable produce over extended periods of time without suffering any loss of quality
– be it in look, feel, touch, taste or chemical composition. Industries that find Blue Star’s
cold storage solutions enormously useful include the agriculture sector including
horticulture and floriculture units, manufacturers of fresh produce of any kind, food
processing units, pharmaceutical industries, seafood and other similar industries, as well
as the dairy and hospitality sectors, including hotels, restaurants, and eateries.

Specialty Cooling Products:

Blue Star has developed specialized products for process applications, IT/ITES, telecom
and the dairy industry. It has diverse experience and have a deep understanding of the
demands on air-conditioning and refrigeration in each industry. This knowledge and
domain expertise has helped in designing and manufacturing a range of specialized
products which ensure that critical applications work seamlessly.

Research & Development:

Blue Star offers complete engineered products and solutions with differentiated features.
With the extent of climatic conditions varying across the nation, our products are
designed to suit the specific local conditions. Considering the shortfall of Electricity
supply, all the products are designed for energy efficiency. Blue Star products are most
preferred in the domestic market because of energy efficiency features. In the offer, they
are widest range of products for varying applications. This is possible due to extensive
research and development that goes behind the products.

All our factories are equipped with robust R&D facilities and a lot of importance
is given towards continuous up gradation. Currently R&D team constitutes nearly 20% of
the manufacturing division work force. This is a testimony to the significance that R&D
has in the product development process at Blue Star. R&D team is encouraged to update
with the latest techniques and processes in the field and thus are sent to various
exhibitions / site visits across the globe. Consultants from various industries are also
hired for specific industrial design projects.

Blue Star also believes in associating itself with leading global organizations that have
done path breaking work in the field of innovations. The company also has tie-ups with
reputed companies for knowledge sharing and technical institutions like IIT, Mumbai,
where individual projects are executed. R&D at Blue Star also handles customer specific
requirements, which require tremendous amount of expertise in that particular domain.
Software that R&D team has deployed and which is used on a regular basis - Pro-
Engineer, Solid Edge, AutoCAD, Pro Mechanics, R&R, HTRI, Mechanical Desktop,
Rhino, Alias, CATIA, IDEAS, Solid Works, Patran, Hypermesh, Femap, Ansys, Nastran,
Fluent, Flow Mechanica and Moldflow. Software packages including those for system
design, air handling unit selection and heat exchanger optimization.


Blue Star has associated itself with global knowledge partners who have been
leaders in specific product manufacturing. Through this partnership, Blue Star has been
able to command a leadership position in the domestic market. Blue Star initially tied-up
with York in the mid 1980s. It has been able to leverage this expertise and learning to
manufacture its own Chillers. We now manufacture our own range of Screw, Scroll and
Process Chillers. For Cold Rooms, Blue Star had tied-up with Kolpak, USA and Heat
Craft for Freezing Units. Rheem, USA not only provided technical support for building
the world class Dadra manufacturing unit, but also shared technical expertise. The foray
in precision equipment business was achieved with support from Eaton Williams. Blue
Star now manufactures Precision Control Packaged Units for domestic and global


In keeping with its win-win approach, Blue Star treats its vendors as not just
suppliers, but as business partners and tries to build long term associations that are
profitable both to the suppliers and to Blue Star. In line with this thought, Blue Star has
entered into long term arrangements with its key suppliers, many of whom are world
leaders. For instance, Blue Star sources its Switchgears from Siemens, Compressors from
Danfoss of Netherlands and Refrigerant from DuPont. General Electric Corp of USA
provides Motors, while Hanbell of Taiwan supplies Screw Compressors. Copeland of
USA assists in System Design.

Over the years, Blue Star has built a strong network of suppliers around it. Not
only that, the company also helps in the development of its smaller suppliers by
providing various business related and technical inputs to them. For instance, since the
vendors are also manufacturers, they will benefit from some of the good manufacturing
practices that Blue Star adopts. Blue Star has educated a number of small vendors on the
importance of ISO certification and encouraged them to get certified within a certain time
period. This approach has greatly boosted the morale of vendors and firmly bonded them
with Blue Star. Also, it ensures that the suppliers walk side-by-side with Blue Star on the
path to growth.


Blue Star has been exporting its products to the Middle East for over two decades.
Blue Star products have stood the test of time in some of the most difficult climatic
conditions in the world such as UAE, Qatar, Bahrain, Oman and Kuwait. On offer it has a
comprehensive range of products such as chillers with screw and hermetic scroll
compressors, a wide range of air handling and fan coil units, duct able packaged and duct
able split air conditioners including the heat pump versions. Blue Star also offers unitary
products such as window and split air conditioners, deep freezers, cold rooms, water
coolers and specialized air conditioners for precision control applications, Variable
Refrigerant Flow (VRF) Systems with digital scroll technology and process chillers with
frequency modulation. These world-class products are manufactured at our state-of-the-
art manufacturing facilities in India. All the manufacturing facilities are ISO 9001: 2000
certified, and are powered through integrated Enterprise Resource Planning (ERP)
software. Moreover, most of the products go through stringent tests on reliability and
performance in our test labs.


Rapid growth coupled with volatility of input costs necessitated an agile and
adaptable supply chain. The Blue Star focused on both the efficiency and responsiveness
of all aspects of the supply chain by improving all round execution capability. A
combination of short term and long term view along with the support of business
associates helped the
Company tide over the uncertainty and turbulence of increasing input costs. The supply
chain adequately met the increased demands of the market place supporting greater
channel and project business success.

Blue Star has around 180 systems dealers who exclusively deal in the Company's
systems businesses consisting of packaged air conditioning and cold rooms. These
dealers are provided technical expertise, installation and service competence of a high
order. On the other hand, room air conditioners and refrigeration products, which are
simple to install, are sold through a larger network of approximately 600 dealers. Most of
them deal exclusively with Blue Star products in the HVAC domain. A few are multi-
brand, multi-product dealers. The Company has established a Channel Management
Centre to oversee the policy framework, certification and development of dealers and
also put in place a Training Department for training channel partners. During the year, the
Company implemented a number of initiatives in order to strengthen the competence of
the dealer channels and make them more robust. A Management Development Program
(MDP) for systems dealers was held to impart the essentials of managing a business
professionally. Systems dealers were also put through a Sales Management training
programme in order to enhance their sales competence.


Blue Star takes pride in the fact that the invaluable technical and business
knowledge it has acquired in 65 years as an organization in the field of air conditioning
and refrigeration is perhaps the richest in the country. During the review period, with the
substantial increase in business volume, the Company increased its total head count to
2565 (including the absorbing of 124 employees from Nasser Electricals) as on March
31, 2008, an increase of 18% over the previous year, while Net Sales grew by 39%.
Organizational productivity continued to grow in terms of sales per person and value
added per person. The focus on people development continued at the same pace with
special attention to developing the technical skills of dealers and business associates.
Training in soft skills for Blue Star employees was enhanced with the introduction of
some new training programmes. In order to sustain the positive culture of the Company, a
new corporate programme was introduced called 'The Blue Star Way'. This programme is
intended to create an awareness of, and strengthen the Blue Star Way of working.
A 360-degree feedback system continued to be used to measure behavior of
Senior Managers pertaining to the Corporate Values and Beliefs. Environment, Health &
Safety (EHS) has gained relevance as a new management discipline in recent times. In
order to improve its performance in the EHS domain, the Company decided to provide a
corporate focus by creating a new department called 'Environment, Health & Safety'. The
EHS Department will be responsible for creating standards and conducting workshops to
sensitize all employees and business partners on the EHS norms to be followed in the
course of business. The Welfare initiatives include providing life insurance cover to all
employees through HDFC Standard Life Insurance, annual medical check-ups for
employees above the age of 40 years, and the Company subsidizing the medical
insurance premium for dependent parents.

The Mohan T Advani Education Trust disbursed scholarships to employees'

children pursuing higher professional education while Blue Star Sahayata Foundation
extended financial assistance to a number of deserving cases for mitigating emergency
medical expenses. Harmonious and constructive relations between the Management and
workmen helped to maintain a cordial work atmosphere and achieve business growth.


Eco friendly initiative:

Blue Star has made significant progress towards minimizing and even eliminating the
environmental hazards resulting from CFCs in certain refrigerants used for cooling. As a
matter of fact, Blue Star is one of the few companies selected in India for funding by
"The Multilateral Fund for the implementation of the MONTREAL PROTOCOL". Blue
Star has already introduced 'ozone friendly' centrifugal chillers using HCFC-123, the safe
refrigerant replacing CFC-11. Blue Star also markets absorption chillers which use water
as refrigerant. All Blue Star reciprocating chillers already use HCFC-22 refrigerant which
is friendlier to the environment than the older R-12. The Company actively promotes
wider use of large refrigeration systems using ammonia as the refrigerant. In fact, Blue
Star is a member of the International Institute of Ammonia Refrigeration, USA.

Social initiative:

Blue Star firmly believes that organizations must look beyond making profits and should
contribute to the development and welfare of the society. This attitude is most evident in
the outreach initiatives organized by Blue Star's factories. Blue Star factories take active
participation in providing temporary shelters and essentials for the victims of an
earthquake, sponsoring health check-ups and health education programs in local schools.
The families of operators are an integral part of social development. Blue Star gives them
appropriate advice on personal matters, financial and investment matters. The family
members are also imparted training on diverse subjects. They are taught English as well.
Environmental initiative:

Blue Star's factories have been exquisitely landscaped with lawns and flowering plants
dotting the campus. Trees have also been planted on a proactive basis even outside the
Blue Star factories. As a responsible organization, special ETP plants are installed to
dispose off the wastes generated. Additionally, all our factories are designed for rain
water harvesting.


The Company has in place an effective Risk Management framework under which all
internal and external risks across the various businesses and functions are periodically
identified, assessed and acted upon by the risk owners to minimize and mitigate their
impact. These processes are also periodically reviewed to ensure their effectiveness.
The Company continues to satisfactorily address the various financial risks relating to
interest rates, exchange rates and credit risks as well as operating risks arising out of high
input costs, changes in technology, customer preferences, increasing size and complexity
of contracts and competitive pressures.

While the strong fundamentals of the Company and it's sound financial base have placed
it in a strong position to face the vagaries of the market, the overall uncertain economic
scenario coupled with local and global inflation and the high price of oil are causes for
concern and consequently a slow down in the economy could impact the growth of the
Company to some extent in the coming year. The Company will continue to remain
vigilant and will proactively take steps to mitigate the adverse impact, if any, arising out
of these concerns.

The benefit of a mature business organization with 65 years of operational excellence is
that there are several good systems in place. From a prospective employee point of view,
Blue Star offers the following advantages:

• There are well designed induction and technical orientation programmes. There is
a Corporate Technical Training Organization which delivers a variety of technical
training programmes for the AC&R business. Engineers who join the Electronics
Division get a chance to go abroad for training with the Principals. The Corporate
HR runs a menu of non-technical soft skills training programmes such as Business
Communication Skills and Business Etiquette.

• The Blue Star Company has many well designed, time tested HR practices such as
setting the performance objectives at the beginning of the year, reviewing
employee performance every year through an annual appraisal system and an
annual compensation review based on market surveys. In addition to a market
aligned salary structure, Blue Star also has a fairly attractive incentive scheme
wherein, the employee gets an incentive based on his department’s performance
coupled with his own performance rating.

• Typically, graduate engineers can look forward to entering real managerial grades
within 4 to 5 years. Once an employee enters the managerial grade, he is exposed
to a variety of management education programmes including some programmes at
IIM. Ahmedabad.

• Last, but not the least, Blue Star rightly boasts of the Blue Star Way, which is
founded on a set of values and beliefs which have evolved over time. These
beliefs have made Blue Star a highly respected, secular organization. The
Company has an excellent track record of employees working for many decades
with the Company. In today’s high attrition market, the Company continues to
enjoy the privilege of retaining many of its employees for many decades, thanks
to its positive work culture.
• The company lays stress on continuously upgrading the skills of operators, so that
they keep increasing their productivity in the face of changing manufacturing
practices. Operators are put through training programs, on passing which they are
given certificates. In the long term, these certificates also become a yardstick for
measuring employee performance. Learning through cross functional activities is
encouraged. In addition to that, staff members and operators are encouraged to
exercise yoga, play sports and participate in community development initiatives.
This helps in the overall development of the individual and improves
performance. Kaizen and 5S are an integral part of all factory operations.


Since engineering and technical expertise are at the heart of the Blue Star value
proposition, engineers constitute the bulk of Blue Star’s recruitment. Consequently,
engineers (graduate as well as diploma) can find technically satisfying and well paying
jobs in the following areas of Blue Star

Air conditioning Projects Division:

Mechanical engineers are deployed in 3 different disciplines i.e. Sales, Design &
Engineering and Construction. Blue Star also entered the commercial building electrical
business since 2008. Consequently, electrical engineers (graduate and diploma) can also
find careers in the Electrical Projects


Blue Star manufactures a wide range of air conditioning and refrigeration

equipment at its five factories. Here, careers can be made in R & D, Production,
Production Planning, Manufacturing Engineering, Quality and Reliability and
Procurement. Graduates as well as post graduates in mechanical, electrical and
electronics engineering can find rewarding careers in Blue Star’s manufacturing group.
Air-conditioning & Refrigeration Service Division:

Here again, engineers constitute the bulk of recruitment. Careers can be made
broadly in 3 disciplines viz. Service Marketing, Service Delivery and Service Specialists’

Channel Businesses:

Packaged air conditioners, room air conditioners, refrigeration products and cold
storages are mostly executed through licensed channel partners. Consequently, engineers
as well as MBAs with an aptitude for marketing can develop satisfying careers in any of
the channel businesses.

Management Services:

Like in all large corporate, the Company has well structured management service
departments such as Procurement & Logistics, Finance and Accounts and Human
Resources. Blue Star looks for talented professionals with appropriate qualifications for
these departments.

Work with BLUE STAR:

An industry that’s over Rs. 12,000 crores can be the opportunity to meet your
ambitious career goals. The cooling industry is thriving in a rapidly developing industrial
landscape wherein almost every major corporate and commercial segment needs to cool
down with efficient cooling systems. No wonder the company is slated to grow at a rate
of more than 30% in the next few years. And this is the point where the cooling company
really becomes hot.

To propel career in this arena, one definitely need an organization that has what it takes
to command a leadership position in the industry. Blue Star is the India’s largest central
air-conditioning and commercial refrigeration company with over six decades of
experience in providing expert cooling solutions. It has been associated with the most
prestigious installations and projects in the country and enjoys a preferred partner status
in most of the high growth segments. The Company has tripled its turnover over the last
three years and continues to be on a strong growth trajectory.

What is research? In simple words, research is the study of materials and sources in
order to establish facts and to reach at new conclusions.

According to American Marketing Association “Research is the systematic and objective

identification, collection, analysis, dissemination, and use of information for the purpose
of assisting management in decision making related to the identification and solution of
problems (and opportunities) in marketing.”

Any research or study starts with Question or problem and research is undertaken to get
the solution.

Following are the objectives to undertake the research.

The very first step in marketing research process is to define carefully the objectives of
the study. It is important for the researcher to agree art the outset on the purpose and
objectives of the study to ensure that the research design is appropriate. A carefully
thought out statement of objectives helps to define the types and the level of information.

Types of Research:
There are mainly two types of market research the first one is problem Identification and
second one is problem solving market research.

1.) Problem Identification Research :

Research that is undertaken to help to identify problems which are not necessary
apparent on the surface and yet exist or are likely to arise in the future. For example,
what will be the consumer’s behavior while making decision for purchasing
“Bluestar-Bluestar” car and to know the consumer response whether it will be
negative or positive.

2.) Problem solving Research :

Research is undertaken to solve specific marketing problems. For example, After

putting “Bluestar” in market and there will be negative response and low demand for
it then to find out the reasons for its negative demand in the market and to find out
those reasons through research.

For example, “Bluestar” also undertake research to get the answer of following
Before they take decision to launch a new small car or not.

1. Who are my customer and potential customer?

2. What kind of people they are?
3. Where do they live?
4. Can and will they buy?

Research helps us to get the answer of above mentioned questions.

Thus, research helps producer to collect the information which reduces business
risk. It helps producer to identify sales opportunities and to develop action plans.

Following are the objectives of this Study:

Research is undertaken for following reasons.

1. To know awareness of potential customers about “BLUESTAR”

2. To Know the Perception of people toward pre-launched Bluestar Bluestar .


Types of Research Design Exploratory research Design

Source of Data A. Primary data : Survey method
B.Secondary data : Internet, Magazine, News papers
(Economics Times, Business Standard & Gujarat
Samachar,ICFAI General)
Research Equipment Questionnaire
Sampling Technique Non Probability Technique - Convenience sampling method
Sample Size 150 Samples

Area of Research warangal

Research design:
Classification of Research Design: there are main two types of Research Design.

Research Design

Exploratory Research Conclusive Research

Descriptive Research Casual Research

We had considered exploratory research design for my project in order to know

awareness of the potential customers and I want to know the willingness of potential
customers to buy “Bluestar-Bluestar” car. For this study, I have considered exploratory
research and descriptive research to know the awareness and purchase intention of
potential customers as well as to know the characteristics of groups such as respondent’s
age, their gender, education, income, occupation etc.


To study the problem and to reach at conclusion , data are essential which are collected
from following sources.
Sources of Data

Primary Data Secondary Data

1. Primary Data : It means Data originated by the researcher for the Specific Purpose
of addressing the research problem. “Primary Data are collect to conduct the study
and helped to reach at the conclusions from the findings.
In this study , the primary data were obtain by survey method with the help of
structured questionnaire. Data were collected with the help of the response of
respondents, they provide information through questionnaire.

2. Secondary Data : “It means that Data collected for some purpose other than
problem at hand”. In this study, the secondary data obtained from the websites,
newspapers and Magazines.
Survey Methods:

The Survey method involves a structured Questionnaire, given to respondents which is

designed to obtain response or reaction for specific information.

There are four survey methods.

Methods of Survey

Personal Telephonic Mail Electronic

Interviewing Interviewing Interviewing Interviewing

In-Home Interview Mall Intercept Computer Assisted

To collect the primary data, I have used personal interviewing method. Respondents were
interviewed at their home, so, I relied upon in-home survey method. Respondents were
interviewed face to face at their homes. The task of Interviewer is to contact respondents,
ask the questions and record their response.

Research Instrument:

To obtain Primary data for this research I used survey method by designing
Questionnaire.” Questionnaire is a structured technique for data collection that consists of
a series of questions, written or verbal that a respondent answers.” Questionnaire is a set
of a questions through which we can obtain necessary information from respondents.”
We can collect the information such as the behavior, attitude of respondents etc . . . . We
can also understand facts, their awareness, belief and their future action plans.


Q1-You are dealing with the BLUE STAR brands from?

No of years No of respondents % of respondents

5 years 25 50%
5-10 years 15 30%
More than 10 years 10 20%
Total 50 100%

% of dealers dealing with BLUE STAR brand

5 years
5-10 years
30% More than 10 years

Interpretation: - Above graph shows that half of the dealers selling from 5years.
30% selling from 5-10years and rest of them more than 10 years that means they are
satisfied with company. So they are doing regularly.

Q2-Which products of BLUE STAR are most preferable by customers:

Product No of respondents % of respondents

TV 16 32%
Washing machine 8 16%
Refrigerator 10 20%
AC 4 8%
Computer 8 16%
Mobile 4 8%
Total 50 100%
% of selling of products

16% 32% W.M.

8% A.C.
20% 16%

Interpretation:-This chart is showing that % of sales of TV is 32% which is more

than that of others. It means the selling of TV is more than that of other BLUE STAR

Q3. In which season the selling of products is more:

Months No of respondents % of respondents

Jan-March 8 16%
Apr-June 22 44%
July-Sep 3 6%
Oct-Dec 17 34%
Total 50 100%
Interpretation:-This chart is showing that in the month of April to June the sale of
BLUE STAR products is very high than that of other which is 44%. It means it may
after that in the month of October to December the sales of BLUE STAR product is
also more.

Q4.Which factors influence the consumers to purchase the BLUE STAR products:

Factors No of respondent % of respondents

Quality 9 18%
Price 7 14%
Sales promotion activities 4 8%
Brand image 27 54%
Services 3 6%
Total 50 100
% of factors influence consumer to
Purchase BLUE STAR product


6% 18% Price

Sales promotion
14% Activities
54% Brand image


Interpretation:- Brand image is influenced most of the people to purchase the consumer

Q5.Opinion of the credit facilities are provided by the company:

Level of satisfaction No of respondents % of respondents

Very satisfied 5 10%
Somewhat satisfied 10 20%
Somewhat dissatisfied 27 54%
Very satisfied 8 16%
Total 50 100%
% of level of satisfaction of dealers

Very satisfied
16% 10%
20% Somewhat
Very dissatisfied

Interpretation: - the dealers are not getting the credit facility by the BLUE STAR which
makes them more dissatisfied.

Q6. Media plays an important role of making the awareness of the product. What do
you think?

Percentage No of respondents

20%-30% 1

30%-50% 4

50%-70% 9

70%-90% 6
30% 20% 20%-30%
% of people

Interpretation:-60%to 70% of the people get aware from media.

Q7. What are the factors in media which makes the consumer more attentive towards the
new, improved and innovative products and technology?

Factors of media No of respondents % of respondents

Television 29 58%
News paper 9 18%
Internet 17 14%
Magazine 2 4%
Hoardings 3 6%
Total 50 100%
% of respondents

4% 6% Television
14% News paper
58% Magazines

Interpretation: - the factor in media which makes the consumer more attentive towards
the new, improved and innovative products and technology is Television which plays
important role in advertisement in comparison to others.

Q8. Are you satisfied with the promotional activities of the company:

Level of satisfaction No of respondents % of respondents

Very Satisfied 2 10%
Somewhat satisfied 13 64%
Somewhat dissatisfied 5 26%
Very dissatisfied 0 0%
Total 50 100%
%of respondents

Very satisfied

26% 0% 10%
Very dissatisfied

Interpretation:-This chart is showing that most of the dealers are somewhat satisfied
with the promotional activities of the company because the % of somewhat satisfied
is more than that of other which is 64 % and 26% dealers are somewhat dissatisfied

Q9. What is your annual sale of BLUE STAR products?

Income level No. of respondents % of respondents

Less than 5 lakhs 10 20%
5 to 10 lakhs 22 44%
10 to 15 lakhs 13 26%
More than 15 lakhs 5 10%
Total 50 100%
%of respondent's annual income

10% 20%
>5 lakhs
5-10 lakhs
10-15 lakhs
<15 lakhs

Interpretation:-By this chart we have come to know that the area where we have
done survey the % of annual income of dealers is more within the limit of 5 to 10
lakhs and after that the % of 10 to 15 lakhs takes place.

Q10. Are you satisfied with the distribution system of BLUE STAR?

Levels No. of respondents % of respondents

Satisfied 8 16%
Somewhat satisfied 30 60%
Somewhat dissatisfied 12 24%
Very dissatisfied 0 0%
Total 50 100%
% of respondents

Very satisfied
24% 0% 16%
Very dissatisfied

Interpretation:-By this chart we have come to know that 60%of dealers are some
what satisfied with the distribution system of BLUE STAR Company but 24% people
are somewhat dissatisfied also and only 16% dealers are satisfied with the distribution
system of company.

1) Quality is most important factor while purchasing a Bluestar AC.

2) VOLTAS is leading brand in AC.

3) While purchasing Bluestar AC consumer mostly prefer quality, price,

brand and installation.

4) LG and Voltas is the main competitor of BLUESTAR in air

condition market.
5) Sales promotion scheme were sufficient.

6) After sale service is the biggest problem with Bluestar AC in

Jalandhar area.


1. Quality should be more improve so that sale of AC will be increase more

in future and capture the market.
2. If the BLUESTAR Ltd. reduces their product price like LG and Voltas
then BLUESTAR will take over the LG in all categories.
3. Prompt of service in time.
4. Advertisements of the company’s products should focus on quality rather
than price.
5. Company should target upper middle class or premium class customers.
6. Company should introduce low cost products to satisfy the needs of low
or middle class.
7. BLUESTAR ltd. should concentrate on after sales service.
8. BLUESTAR ltd. should try to trap the rural market.

With respect to the above study and the findings thereby, the
company has definitely entrenched into the urban market and it should
concentrate in rural market in order to completely establish itself all over.

Dear sir/madam,
We are the student of “Kakatiya Institute of Technology & Sciences, Warangal”
conducting a survey on dealer satisfaction of BLUE STAR products as a part of our
curriculum. I assure that information are given by you will be secret.

Q1- You are dealing with the BLUE STAR brands from...
(1) 5 years (2) 5-10 years
(3) More than 10 years
Q2-How many products of BLUE STAR you sale? Please mention their names also.
(1)…………………… (2)……………………
(3)…………………... (4)……………………
(5)………………….. (6)……………………
(7)…………………… (8)……………………
(9)…………………… (10)……………………
Q 3-Which products of BLUE STAR is most preferable by customers?
(Please specify ………………………………………………
Q4-In which season the selling of products is more?
(1)Jan-march (2) April-June
(3)July-sep .(4) Oct-Dec
Q5-Which factors influence the consumers to purchase the BLUE STAR products?
(1). Quality (2) Price
(3). Sales promotion activities (4) Brand image
(5). Services

Q6- Opinion on the availability of credit facilities provided by the company?

(1) Very satisfied (2) Somewhat satisfied
(3) Somewhat dissatisfied (4) Very dissatisfied

Q7-Media plays an important role of making the awareness of the product. What do you
(1) 20% to 30% (2) 30% to 50%
(3) 50% to 70% (4) 70% to 90%
Q8- What are the factors in media which makes the consumer more attentive towards the
new, improved and innovative products and technology?
(1)Television (2) News paper
(3) Internet (4) Magazines
(5) Hoardings (6) specify if any……………
Q9-Are you satisfied with the promotional activities of the company?
(1) Very satisfied.
(2) Somewhat satisfied.
(3) Somewhat dissatisfied.
(4) Very dissatisfied.
Q10- Opinion of dealers on the regular supply of goods?
Q11- What is your annual sale of BLUE STAR products?
(1) Less than 5 Lakhs (2) 5Lac to 10 Lakhs
(3) 10 Lac to 15 Lakhs (4) More than 15 Lakhs
Q12-Are you satisfied with the distribution system of BLUE STAR?
(1) Very satisfied. (2) Somewhat satisfied
.(3) Somewhat dissatisfied. (4) Very dissatisfied.

Q13-what is your suggestion to the company for improving the performance of sales?
(1) By improving the advertisement (2) By providing the discount
(3) By improving the quality (4) By increasing the margin

Q14- Apart from the above options if any other suggestion you have then please specify
Contact no.-………………………………………..


Marketing management: By Philip Kotlar

Marketing research: text and cases

Research methodology: By C.R. Kothari



2. http://www.Blue

3.The code of ethics:-

STARrule/BLUE STARrule_main.htm